A recent survey of senior loan officers (are there any others?) shows that credit standards for mortgage loans are loosening up a little. This easing is not in the government or subprime loan markets but rather in the areas of QM jumbo loans (Credit). Many banks shy away from FHA lending and sub-prime loans. Although Independent Mortgage Lenders believe these…
Marketing Services Agreements – Under Fire
CFPB has made it clear they do not like Marketing Services Agreements (MSAs). Although such agreements have become somewhat commonplace in the mortgage industry, CFPB is taking a new look at them and doesn’t like what it sees. When MSAs first surfaced several years ago, HUD issued some guidance which is used by lenders and service providers to gauge the…
Are you prepared to significantly reduce your Post Closing QC reviews processing time?
HUD/FHA’s draft “Origination Through Post-Closing/Endorsement Handbook”, states that loan transactions must be selected for post-closing reviews on a monthly basis with the selection comprising loans closed in the prior month. The loans that are selected for review must be processed within 60 days from the end of the prior one-month period. This is quite a reduction in processing time from…
Millennials Finally Getting Off the Fence
Let’s start with a bit of good news. Recently, the MBA increased its estimates for mortgage originations by $71 billion for 2015, and by $94 billion, to $885 Billion, in 2016. As my grandfather might have said, “Wow, thatsa a lottsa moola!” According to Mike Fratantoni, MBA’s Chief Economist, presently there are more home sales being financed, with more loans…
The Pros & Cons of Dodd-Frank
In all the hoopla surrounding CFPB’s birthday and their release of the final rule on TRID, we overlooked the 5th anniversary of the Dodd-Frank Act. Let’s face it, had it not been for Dodd-Frank, there would be no CFPB. Just think of it…okay, now back to reality. Depending on which side of isle one sits, Dodd-Frank is either a boom…
Will your Student Loan interfere with getting a mortgage?
The GSEs have recently changed their policies on how repayments made on student loans are handled in calculating debt-to-income ratios. In addition, HUD/FHA is proposing major changes in the way student loan debt is handled when calculating monthly obligations for prospective borrowers. Outlined below is a description of each of these changes: Freddie Mac Effective for mortgages with Settlement Dates…