Author: Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
Despite the historically low mortgage interest rates, new low down payment programs, easing of some credit standards, and special programs for first time and low to moderate income home buyers, we are still seeing homeownership rates decline. Why? It seems that the problem is not all about helping potential home buyers qualify for their financing; it’s as much about them being able to find affordable housing. As I’ve written before, I believe we have an affordable housing crisis in this country and now some are agreeing with me. We don’t need more buyers, although that couldn’t hurt. We need places for them to buy that they can afford. So along comes two different approaches to solving the affordable housing problem. Both offer some opportunity for lenders. First, we see draft legislation released by Senator Ron Wyden (D-OR) for a proposed middle income tax credit. Fashioned after the successful Low-Income Housing Tax Credit program, this will offer incentives to developers, by way of tax credits, for the creation and renovation of affordable rental housing. Although this may not immediately increase homeownership it will create a pathway for low to moderate income households. They can gain experience in making housing payments while taking their first step toward homeownership. This also presents an opportunity for lenders to finance these rental units once developed and offered for sale to investors. Another idea is to increase the availability of new manufactured homes. The reported average price of a manufactured home is about $70,000. A far cry from the cost of a stick built house at around $380,000. Further, the new manufactured homes are drastically improved from the old mobile homes and much more difficult to relocate, once set in place. The obvious challenge is the stigma associated with mobile homes and the parks in which most are located. However, there are many manufactured home developments, especially those created for seniors, which mirror stick built communities. These along with the rental housing create new lending opportunities, as well as additional investment options for the secondary markets and private investors. It’s just a matter of developing the right lending programs and guidelines, to finance these units. So, if we really want to increase homeownership, and provide more people with the chance to attain the American Dream, we need to look at more than just low rates and low down payment programs. We need to develop homes that first time home buyers can afford and the lending programs needed to finance them This coupled with an economy that provides jobs, stable employment and income will create not just more first time buyers but help them move on to become second and third buyers in the future. A future that will be bright with a robust housing market and a higher rate of homeownership. Now, that’s really good for lenders.
Mortgage Industry Trends

Affordable Housing Getting a Closer Look

Michael Vitali / September 28, 2016

Despite the historically low mortgage interest rates, new low down payment programs, easing of some credit standards, and special programs for first time and low to moderate income home buyers, we are still seeing homeownership rates decline. Why? It seems that the problem is not all about helping potential home buyers qualify for their financing; it’s as much about them…

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Mortgage Industry Trends

Debate Hangover

Michael Vitali / September 27, 2016

I, like just about everyone else, except maybe some in Atlanta and New Orleans who played on Monday Night Football, watched the first Presidential Debate of 2016. My analysis; it was interesting… Personally, I don’t think that either candidate moved the needle either way. Clinton supporters believe she did well, as did Trump’s. Both scored some points on certain issues…

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Mortgage Compliance

CFPB Expresses Pleasure With Lender Performance

Michael Vitali / September 23, 2016

Speaking at MBA’s Legal and Regulatory Conference in Washington, DC, Peggy Twohig, CFPB’s Assistant Director, said that the CFPB is generally pleased with what lenders have done to comply with the new Dodd-Frank rules. Interestingly, she mentioned ability to repay and LO comp, but not TRID. I guess it’s a little too soon to tell. With some exceptions, they also…

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Mortgage Industry Trends

What’s Trending in Credit Reports?

Michael Vitali / September 21, 2016

Yo! Are you ready for the new improved credit reports providing you with trends in a consumer’s debt repayment history? You better be, because as of September 24th, Fannie requires that all loans submitted through DU must have this additional credit information. Whether you want the trending data or not, you’re going to get and pay for it in your…

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