There still seems to be some confusion, under the new TRID rules, over when a lender should issue a revised Closing Disclosure and what changes trigger a new “3 business day wait” before a loan may be consummated. Under the new rules, the consumer must receive the Closing Disclosure at least 3 business prior to loan consummation. To be safe,…
Answer: Fannie Mae recently announced several underwriting policy & procedural changes in their Selling Guide Announcement SEL-2015-07, dated June 30, 2015. One noteworthy change involves the topic of using vested stocks, bonds and mutual funds (including retirement accounts) when they are used for meeting a borrower’s minimum investment requirement, closing costs and reserves. Previously, a standard reduction in value was…
While many breweries offer their seasonal beers, the CFPB chooses to issue its seasonal report of the general results of audits performed. They recently issued their Summer version of their Supervisory Highlights providing information on audits performed between January and April of 2015. The effect is quite different; CFPB’s report is sobering, while the beer on the other hand…you get…
Last year, Fannie and Freddie announced some relief to lenders under their Reps and Warrants. Under this announcement, lenders could receive relief from responsibility for indemnification and repurchases via two methods; Acceptable Payments History: Borrower making payments for 36 consecutive months with no more than one 30 day delinquent; or Quality Control Reviews: a satisfactory review by the agency that…
As previously reported, in an Announcement dated May 29, 2015, Freddie Mac has stated that beginning June 1, 2015 the use of Loan Prospector will be free for all new loan submissions. Loan Prospector is Freddie Mac’s automated underwriting system which provides feedback to lenders on loan eligibility as well as minimum documentation requirements for underwriting the loan transaction. Not…
By now, you’ve probably heard of the other decision recently handed down by the US Supreme Court. The Court ruled the theory of “disparate impact” may be applied under the Fair Housing Act in determining potential fair lending violations. What is “disparate Impact”? It’s the adverse effect of a practice or standard that is neutral and non-discriminatory in its intention…
