If you weren’t sure, you now know who wasn’t responsible for the financial crisis of 2008. According to Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB), it wasn’t the Credit Unions. I guess it was those unscrupulous Independent Mortgage Bankers, the Mortgage Brokers and the Banks (of all sizes), along with their affiliates, that all contributed to the…
The Race to the Bottom
No, it’s not a new undersea adventure to raise the Titanic or find some long lost sunken treasures, it’s the movement by the Agencies and FHA to provide low down payment financing to first-time and low-to-moderate income home buyers. About a year ago, both Fannie and Freddie announced the reinstatement of their 3% down payment loan programs. This was done…
Spring Training for the Mortgage Season
It’s that time of year. Pitchers and catchers are reporting for spring training and a new baseball season is about ready to get underway. Each team is preparing for what is to come and looking forward to competing for an appearance in the playoffs with the ultimate goal of winning the World Series. Spring training is here and with it…
HUD REO Appraisal Changes – Beware the Ides of March
Lenders need to be aware of policy & procedural changes are being implemented by HUD/FHA on March 14, 2016. One of these changes involves a requirement to obtain a new appraisal when processing an FHA loan transaction on a HUD Real Estate Owned (REO) property. Under current guidelines, which have been in effect for many years, an “AS-IS” appraisal of…
One Lender’s Trash is Another Lender’s Treasure
Over the past few years, the source of home financing has steadily shifted from the big Banks over to non- bank lenders. Lenders like Independent Mortgage Lenders, Credit Unions and smaller Community Banks. In 2007, the Commercial Banks held a 74% share of mortgage loans, 3 of every 4 homes were financed by a large Bank. Lately, things have changed.…
Some Impacts for Mortgage Lenders in HUD’s FY 2017 Budget Proposal
HUD recently announced the specific details of its proposed Fiscal Year 2017 Budget. This is part of the President’s overall Fiscal Year 2017 Budget Plan that was just submitted to Congress. In reviewing HUD’s proposed 2017 Budget, there are some items that will be of particular interest to mortgage lenders. Some examples are as follows: HUD is requesting from Congress…