With TRID about 4 months old, we continually hear of the horror stories; delayed closing, consumer confusion, investor rejections and now adverse effects on the private label securities. What’s next? Maybe, why Carolina lost the Super Bowl, or why Hillary lost in New Hampshire. Does this now present opportunity? You bet it does. The lenders that figure out how to…
With all the attention being paid to TRID compliance and changes, it seems that lenders have loosened some their credit standards in some areas to help make more loans. Maybe, this is the result of more independent mortgage bankers doing more FHA lending. Whatever it is, Equifax recently reported that loans made to consumers with an Equifax Risk Score of…
Home Equity loans are becoming popular once again. Interest rates remain relatively low, home values have been appreciating in many parts of the country, college tuition costs continue to rise and credit card debt remains high for many homeowners. This is a “perfect storm” scenario for the resurgence in the origination of Home Equity loans as a source of needed…
Both Fannie Mae and Freddie Mac reported in December that they are considering offering lenders alternatives to repurchase requests for loans that have documented defects but are still considered to be of good quality. I enjoy a good oxymoron. These are some of my favorites: “jumbo shrimp”, “serious joke”, “virtual reality”, “small crowd”, “random order”, “student teacher” and “act naturally”.…
Most lenders are aware that Fannie Mae has an established policy that requires the processing of pre-funding (or pre-closing) reviews as part of a lender’s overall written Quality Control Plan. These documented procedures must include (at a minimum) the timing of the reviews, the loan selection process, verification of data & documents and reporting. However, with the numerous policy &…
For many years, I worked for a large, successful luxury home builder located in the Pennsylvania area, which will remain nameless. One thing we all know is that a home is only as good as its foundation. Poor foundation equals a poor quality home. That builder is very successful to this day because their homes are built on a solid…
