Overlooking investor overlays in mortgage loan underwriting can be quite costly and could expose lenders to regulatory risk and liability. iServe Residential Lending, a retail mortgage banker in San Diego, believes it has found the ultimate solution to its underwriting problems, especially with regards to investor overlays, including FHA, VA, Fannie Mae, Freddie Mac and Ginnie Mae. iServe, which originates conventional, government and jumbo loans, recently implemented PriceMyLoan, an automated underwriting and loan pricing tool from Insight Lending Solutions, the same folks who created TOTAL Scorecard for FHA. “PriceMyLoan is the only system that...
A new Inside Mortgage Finance analysis reveals that the proposed qualified residential mortgage standard drafted earlier this year by federal regulators would affect individual mortgage originators in dramatically different ways. As the regulators acknowledged in their proposed rule, a significant share of Fannie Mae and Freddie Mac loans originated through 2009 would not meet new standards for loan-to-value ratios, borrower credit history, debt-to-income ratio and other factors. Most loans being sold to the government-sponsored enterprises under today’s pristine underwriting and pricing policies also would fail to meet the... [Includes one data chart]
Credit unions posted a significant increase in mortgage production volume during the first quarter of 2011, compared to the same period last year, but the industry has not yet broken through to a broader role in the market. Federally insured credit unions originated $21.5 billion in home mortgages during the first three months of the year, up 16.6 percent from a year ago, according to data from the National Credit Union Administration. But that was down 35.7 percent from the $33.5 billion that credit unions originated in the fourth quarter of 2010. The credit union share of the total mortgage market held steady at 6.6 percent of total... [Includes two data charts]
Experts sharply disagreed on the Federal Reserve Board’s controversial new rules on loan officer compensation during a hearing this week in the House Financial Services Committee, with some claiming it is a confused mess and others saying it’s a shield for low-income and minority borrowers. Marc Savitt, president of the Mortgage Center and testifying on behalf of the National Association of Independent Housing, said the rule caused massive job loss among small mortgage businesses and fewer consumer loan options. “As an active participant in meetings with the FRB during the comment period, it was evident the FRB was unwilling to...
At least three lenders are looking to re-establish the market for non-prime lending. Two firms are hoping to attract additional funding and begin non-prime lending shortly, while a smaller player is already offering the loans. Shellpoint Partners has plans to expand the offerings of a recently acquired agency originator, New Penn Financial. Shellpoint is a specialty finance company and joint venture with Ranieri Partners. Lewis Ranieri, a co-founder of Shellpoint, said...
Trade groups representing home builders and real estate agents are warning Congress that a decrease in conforming loan limits will result in higher interest rates for borrowers and other less favorable loan terms. However, the housing advocates face a tough battle in extending temporarily elevated conforming loan limits. Without action from Congress, the high-cost loan limit for agency mortgages and the FHA will fall from $729,750 to $625,500 beginning Oct. 1. Some 5.25 million owner-occupied homes will no longer qualify...
If you make your living originating residential mortgages, you’re going to have to be licensed either by the state or by the Nationwide Mortgage Licensing System and Registry under the federal Secure and Fair Enforcement for Mortgage Licensing Act, otherwise known as the SAFE Act, under a new final rule from the Department of Housing and Urban Development. …
Florida. Gov. Rick Scott (R) has signed H.B. 951, which ratifies the validity of electronic documents submitted to and accepted by a court clerk or county recorder for recordation, whether or not those documents complied with applicable e-document-related laws and regulations at the time. Louisiana. Gov. Bobby Jindal (R) has signed H.B. 492, which exempts from the mortgage loan originator licensing requirement set forth under the Louisiana Residential Mortgage Lending Act certain individuals…
Consumer Financial Protection Bureau Integrated Mortgage Disclosure Project. The CFPB has issued a second set of mortgage disclosure prototypes for public review and comment, with a particular emphasis on borrower payments or fees necessary to close a mortgage. In the first set, the back page was identical on both versions, but the “shopping sheet” front page was different. In the second set, the first page is the same on both versions, with substantial differences…
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 covers loan originators working for entities that originate FHA or VA mortgage loans, according to a final rule issued by the Department of Housing and Urban Development. Under the long-anticipated rule on state compliance with the SAFE Act, HUD clarified that even though the FHA and VA programs were created by federal statute and governed by federal regulations, the loans they insure or guarantee are originated for profit. Since FHA and VA loans are originated in the “commercial context,” the loan originators (LOs) are generally subject to the requirements of...
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