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.…
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…
Some in the housing and lending industries are clamoring for a further reduction in the initial or annual FHA mortgage insurance premiums. The belief is that with the increase in FHA insured loans, helped greatly by the last reduction in the annual premium, FHA has achieved and maybe surpassed the 2% capital reserve requirements. The Community Home Lenders Association (CHLA)…
Recently, I discussed a new security role of “Lender Agent” that was created by USDA Rural Development for participating lenders. Once designated as a “Lender Agent” – a User will be authorized to establish applications, order new and re-issue existing credit reports and request preliminary underwriting recommendations on behalf of an approved lender. Although this is a baby-step in the…
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…
Welcome to America; land of opportunity. That includes the opportunity to defraud mortgage lenders and banks when getting a loan. (Chicago Tribune article on Liar Loans) Individuals found guilty of participating in the creation of fraudulent loans say they shouldn’t have to pay any restitution to the BofA for losses because the bank should have known better. After all, the…
