The Mortgage Bankers Association, along with several of the mortgage industry’s largest trade groups, continue on their quest to make things better for consumers and mortgage lenders. MBA, along with the others, are seeking a meeting with the new Attorney General, Jeff Sessions, to discuss issues related to enforcement actions against lenders under the False Claims Act. These discussions would…
The Product and Pricing Engines (PPE) of yesteryear were an efficient substitute for the good old rate sheets. These have evolved into necessary selling tools for loan originators and an efficient system to quickly analyze potential profits by lender’s secondary marketing managers. Rate sheets and spreadsheets are things of the past. LO’s must be armed with the latest and most…
Just prior to July 4th, the Department of Justice announced that it hit another lender with a False Claims Act violation and fine. The most recent victim is Prospect Mortgage who was levied a fine of $4.16 million, and another one bites the dust… According to DOJ, once again a lender gets fined for misrepresentations made in connection with FHA-insured…
Non-QM (Non-Qualified Mortgage) loans are getting a bad rap as the coming of the next subprime wave. Although they may be considered a little riskier than your standard QM (Qualified Mortgage), the perceived risk is in not having the QM’s safe harbor from repayment ability requirements. Some loans may have loan terms, i.e. interest only features, which disqualifies them as…
The Consumer Financial Protection Bureau finally issued their long-awaited updates the “Know Before You Owe” rule (better known to lenders as TRID) on Friday, July 7th. The big news is not so much of what CFPB said, but more so in what was not said. CFPB addressed some areas that needed clarification. But, noticeably they side-stepped two of the main…
Recently, I’ve been writing about the challenges lenders face resulting from a shortage of affordable housing. With consumers having less money available for a down payment, lenders are forced to stretch the credit and income limits to qualify potential home buyers for higher priced homes. Now, we start to see the flip side. Loan defects, fraud, and misrepresentations once again…
