02
JUN
2017
Just in case you haven’t been following things closely, lenders will be required to report a whole bunch of additional HMDA information for loans reported in 2018; but you probably already knew that (I hope). The MBA, in support of its members and the industry, says that CFPB should extend the new requirements for at least one year because CFPB hasn’t lived up to end of the bargain. According to the MBA request, lenders and industry vendors are still awaiting for the following from CFPB: · A release of the new reporting portal · A promised geocoding tool for use by lenders in identifying property locations · New data validation information · Information of the security of consumer PII reported under HMDA There is no reason to rush to implement the desired CFPB changes. The current HMDA data reporting provides sufficient information for lending review and evaluation, as it has done for years. Why push to implement new requirements when everything isn’t in place to allow lenders to properly prepare for compliance? In addition, such a delay will allow additional time for a more detailed review to determine if all of the new required data elements would be beneficial. Further, if CFPB has the requisite authority to make such changes. For more information and insight, you can review MBA’s information and their letter. I, for one, agree. Why rush things when we’re not ready? We would hate to go through all the time and expense to prepare for things as they are currently presented, only to be required to make additional costly changes for adjustments made after the fact. Hopefully, rational thinking will prevail (for a change).

MBA to the Rescue; HMDA Extension Requested

Just in case you haven’t been following things closely, lenders will be required to report a whole bunch of additional HMDA information for loans reported in 2018; but you probably already knew that (I hope). The MBA, in support of its members and the industry, says that CFPB...
01
JUN
2017
FHA-helps-those-who-help-themselves-hands-sky

What is FHA’s Role In Housing Finance?

FHA has always been seen as a vehicle to provide needed home financing for low-to-moderate income homebuyers. Since their inception many years ago, they have served these needs quite well. It appears they now may be challenged by the new administration’s budget proposals...
31
MAY
2017
gift-grant-loan-wrapped-box-guild-mortgage

Just Another Low Down Payment Loan?

Guild Mortgage announced their new 3-for-1 equity loan program. The borrower puts down 1% while Guild provides an additional 2% down from lender assistance. The nice thing is that the additional 2% is not a loan but rather a grant that need not be repaid. Sounds pretty good! The...
30
MAY
2017
ups-downs-mortgage-market-roller-coaster

The Ups and Downs of the New Mortgage Market

The summer season is here! With Memorial Day now past and our veterans honored (hopefully not forgotten), we move on to the business of financing the spring and summer sales. By most accounts, things look good for housing and mortgage financing. The economy continues to grow,...
26
MAY
2017
memorial-Day-2017

Never Forget

Memorial Day is observed on the last Monday of May. It was formerly known as Decoration Day and commemorates all men and women who have died in military service for the United States. Many people visit cemeteries and memorials on Memorial Day and it is traditionally seen as the...
25
MAY
2017
FHA-Technology-upgrades-payment-guest-check-hands

Who Should Pay for FHA Technology Upgrades?

Everyone agrees that the use of technology can increase productivity while decreasing costs to operate. This is true in just about any business, including mortgage lending. So, FHA is looking to upgrade their risk management systems and requesting new administrative fees totaling...
23
MAY
2017
things-are-looking-up-businesses-believe-outlook-is-good-baby-looking-up

Despite Political Uncertainty, Business Remains Optimistic

A recent Institute for Supply Management survey shows that, by margins of more than four-to-one, companies that were increasing their capital spending plans because of an “improved business outlook” rather than “prospects for regulatory reform.” At the same time, businesses and...
22
MAY
2017
Cut-fha-rates-poll-scissors

Is It Time to Cut FHA Premiums

The debate continues over whether FHA should reduce their required annual or up-front mortgage insurance premiums. A prior cut was canceled by the Trump Administration. Now with markets improving, the new HUD Secretary, Dr. Ben Carson, says FHA may consider a cut.   But, only if...
19
MAY
2017
non-mortgage-debt-is-up-refinance

Home Equity and Consumer Debt on the Rise

According to the Federal Reserve, the amount of consumer outstanding debt now exceeds the pre-2008 crisis levels. That means consumers owe more money today than they did back in 2008. The difference is in the makeup of that debt. Today, consumers owe more in combined non-mortgage...
18
MAY
2017
Get-back-to-work-congress

It’s Time to Get on With the Business of Business

I don’t know about you, but I am fed up with the political BS going on in Washington, DC with the President, his cabinet, tweets, conversations, and the election. It’s over! It’s time to get on with running the Country. The Democrats only interest is in...