Freddie Mac On May 29, 2015, Freddie Mac has stated that, beginning June 1, 2015, the use of Loan Prospector will be free for all new loan submissions. Loan Prospector is Freddie Mac’s automated underwriting system which provides feedback to lenders on loan eligibility as well as minimum documentation requirements for underwriting the loan transaction. Fannie Mae Fannie Mae rolled…
Have you heard the one about how the economy continues to improve yet you still can’t find a decent job? Well this is a little like that. Fannie Mae’s recent survey revealed that many homeowners believe now is a good time to sell (Seller’s Market). At the same time, the Wall Street Journal issued an article citing some information saying…
This goes under the “Are you kidding me?” category. CFPB has filed an order for RPM Mortgage, a California lender, to pay $19 million dollars in fines; $18 million as rebates to harmed consumers and $1 million in civil money penalties. They also ordered RPM’s CEO, Erwin Robert Hirt, to personally pay an additional $1 Million civil penalty. The total…
First Tennessee Bank will end up paying $212.5 million to settle allegations that they originated and delivered FHA insured loans that did not meet FHA eligibility (Fined). The settlement was brought about by an action by HUD and DOJ against First Tennessee under the False Claims Act. Interestingly, First Tennessee admitted that they had knowingly certified loans for the FHA…
As part of the upcoming TRID changes, when providing a consumer with the new Loan Estimate a Broker, Bank or Lender must also provide a new settlement information booklet known as “Your home loan toolkit” (Toolkit). CFPB has updated the Settlement Cost Booklet to provide a consumer with more information to help them make better choices about their mortgage, with…
Attention: Lenders, FHA Borrowers, and DE Underwriters Much publicity has been generated recently on several major lawsuits filed by the Department of Justice (DOJ) based on allegations that certain lenders violated the False Claims Act by knowingly submitting improperly underwritten loans to HUD/FHA for mortgage insurance. The most recent case involves Quicken Loans who has decided to sue DOJ and…
