Answer(s): No, Maybe and Yes (in the near future) As one can tell from the answers outlined above, there is some confusion and inconsistencies in the underwriting policies of VA and FHA relative to the topic of charging Tax Service fees to borrowers. Unfortunately, this confusion can lead to deficient underwriting review ratings with lenders being asked to make refunds…
Recent surveys conducted by Wells Fargo, Ipsos Public (a global market research company) and Chase reveal that although many consumers think they know and understand the home buying and mortgage process, there is still quite a bit of misunderstanding (Unaware). They think they know, but they don’t know what they don’t know. The good news is that the majority of those…
A recent ABA survey found that most mortgage lenders believe the new TRID rules will further restrict mortgage lending. Many say lending was already restricted resulting from last year’s ATR and QM rules. Now, TRID may continue such restrictions and possibly make it worse. The same survey revealed that banks reported the highest number of mortgages made to first-time homebuyers…
Lenders are diligently preparing to issue the new Loan Estimate and Closing Disclosure for their loan apps as of August 1st. That’s good because, although CFPB says they will be easy on enforcement, the law still goes into effect. There is no guaranty from consumers and their lawyers that they will also be understanding to those lenders that made a…
The hits just keep on coming. According to the latest Beracha, Hardin & Johnson “Buy vs. Rent Index” (bet you didn’t know this existed), the housing market is now trending more toward renting than buying (Rent vs. Buy). The American Dream of homeownership is shifting toward a dream to rent. What does this mean for mortgage lenders? Is America no…
Pre-Closing (or Pre-Funding) Reviews Will Now Be Required on FHA Loans In HUD’s draft “Origination Through Post-Closing/Endorsement Handbook” it is stated that a mortgagee’s required Quality Control (QC) sample must comply with the following balance of pre and post-closing reviews: Pre-Closing Reviews – 10% or less of the QC sample size Post-Closing Reviews – 90% or more of the QC…
