HUD FHA No Defects
Mortgage Compliance

FHA to Implement a New Loan Quality Assessment Methodology

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…

Continue Reading

J.Ronald Terwilliger Foundation for Housing America’s Families
Mortgage Industry Trends

Housing Policy to Get Some Attention

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.…

Continue Reading

Yes No Maybe FHA VA
Mortgage Compliance

Can Tax Service Fees be charged to a Borrower on VA or FHA Loans?

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…

Continue Reading

Consumers don't know what they don't know
Mortgage Compliance

Consumers Don’t Know What They Don’t Know

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…

Continue Reading

Dodd Frank Good or Bad
Mortgage Industry Trends

Dodd-Frank: Good or Bad for Lending?

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…

Continue Reading

TILA Respa Integrated Disclosure
Mortgage Compliance

TRID is More Than New Forms

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…

Continue Reading