You heard the saying that the only thing constant is change. Well, I’m attending the MBA’s Risk Management, QA and Fraud Prevention Forum in Dallas this week and the word seems to be that the only thing certain when it comes to life of loan reps and warrants for the GSEs and FHA is that lenders are uncertain. The GSEs…
The Times – They are a Changing!
In August, HUD has announced even more policy & procedural changes that will be established upon implementation of their 4000.1 Handbook. The good news is that most of the proposed changes outlined in this Notice will have an effective date of March 14, 2016 instead of the September 14, 2015 effective date established for most other portions of this Handbook.…
CFPB Now Tugs at Consumer’s Heartstring
If you’re a lender and you haven’t seen this video you should take a look (Complaint). CFPB is now posting videos of consumer complaints to bring about awareness of the recourse available when they think they have been wronged by a lender. Interestingly, in the video posted here, the consumer happens to be an immigrant. Although we do not get…
Lenders Beware of False Claims and Certifications!
Are you aware of what you are certifying to on an FHA loan transaction? Are you aware of the False Claims Act? Read on! The False Claims Act is the federal government’s primary tool in combating fraud against the government. With respect to some recent cases involving mortgage lenders, the Department of Justice (DOJ) has asserted that certain lenders falsely…
Fate of Housing: Another Point of View
If you’ve been following my blog lately (and I sure hope you are), then you know I’ve mentioned on more than one occasion the outlook for housing, and how that relates to lending. Here’s another one. Recently, Mark Fleming, the chief economist for First American, commented that he believes a slight interest rate hike by the Fed would not have…
Disparate Impact: Don’t Let the Facts Get in the Way
Let’s not let the facts get in the way of a good legal action. That seems to be the mantra of the current Administration when it comes to having HUD take action against lenders for what they believe is “disparate impact” in their lending practices (Abuses). According to the National Fair Housing Alliance, “Disparate Impact” is a legal doctrine under…