By now, you’ve probably heard of the other decision recently handed down by the US Supreme Court. The Court ruled the theory of “disparate impact” may be applied under the Fair Housing Act in determining potential fair lending violations. What is “disparate Impact”? It’s the adverse effect of a practice or standard that is neutral and non-discriminatory in its intention…
With the recent TRID rule extension, lenders and service providers have a few more weeks to finalize their plans and preparations to service customers under the new rules. Each service provider, lender, realtor and closer, has different areas and responsibilities to address but all need to work together to achieve success (Tips). The big day is not all that far…
TRID may be delayed for a while. But, Lenders still need to be concentrating on compliance and quality. CFPB may be concentrating on more regulation, but, Fannie and Freddie continue their increased emphasis on defect management. FHA is now following suit with the announcement of their new defect taxonomy. The goal? Loans made with ZERO defects. You can bet on…
What this means to Mortgage Lenders! In a June 18, 2015 News Release, HUD/FHA announced that it has further refined its risk management processes and has created a new “Defect Taxonomy”. The framework for this revised taxonomy centers on three core concepts: Identifying a defect Capturing sources and causes of a defect Assessing severity of a defect Just what does…
I know all the talk surrounds the CFPB announcement to postpone TRID implementation until October. That’s a good thing as it will allow many lenders and service providers more opportunity to finalize and hone their systems. Some good news for a change! More good news is that a new organization, created as an advocate for better housing policy, the J.…
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…
