Companies are always exploring new ways to leapfrog over their competition. But, now one of them is building a bridge, or maybe an arch, to by-pass their competition altogether. Arch MRT, a newly formed sub of Bermuda based Arch Capital Group, is working with Freddie Mac to provide mortgage insurance directly to borrowers bypassing traditional private mortgage providers. Under the…
This is my favorite time of year, other than Christmas. Not much can compete with Christmas in my book. March Madness comes close. The time of year when dreams are made, and in some cases, come true. David versus Goliath type stuff. The big guys take on the upstarts, all to be the National College Basketball Champion. I love it!…
Last July, Fannie Mae began accepting loans with debt to income (DTI) ratios up to 50%. This is much higher than that allowable under the Truth Lending Act (TILA) for a Qualified Mortgage (QM). However, TILA offers an exception to the QM rules for loans that get approved by Fannie’s Automated Underwriting System (AUS). For now, as long as the…
It should come as no surprise to anyone in mortgage lending that the industry has been a little late in the adoption of new technologies to help streamline our business. Some of this may be because in the past several years, during the refi boom, business literally came walking through the door. It was all lenders could do to keep up…
This may be the business slogan here at LoanLogics, but it’s never been truer than today. The business of making mortgage loans has gone through some pretty drastic changes over the past few years and lenders need to make changes in how they do business to keep up. New rules and regulations put much more emphasis on loan quality, compliance,…
Will the Consumer Financial Protection Bureau (CFPB) become a mere shell of its former self? Appears so, if Mick Mulvaney, its current Acting Director, has his way. Since its creation, the financial institutions that it regulates have decried that the CFPB is overbearing in pursuing its mission to protect consumers. CFPB’s approach has been to regulate by enforcement of laws…
