USDA Rural Development has recently introduced a new security role of “Lender Agent” to their participating lenders. This new role will enable lenders to provide Guaranteed Underwriting System (GUS) access to third party agents such as mortgage brokers and/or correspondent lenders. The USDA’s GUS was updated on December 9, 2015 to help facilitate this new functionality. Once officially designated as…
As Private Gomer Pyle would say to Sargent Carter, “Surprise, surprise, surprise!” It shouldn’t be a big surprise to mortgage lenders that one of the CFPB’s top priorities when performing audits in 2016 will be to carefully review and analyze all LO compensation plans (CFPB Audits). This has been an ongoing concern of the CFPB. They want to ensure that…
Freddie Mac has modified some of its long-standing underwriting policies that should help reduce the paperwork burden for lenders in qualifying prospective borrowers, in their Guide Bulletin 2015-20, dated December 2, 2015. Outlined below is a summary of each of these changes: Borrower Funds/Reserves – if a borrower’s combined value of assets derived from stocks, bonds, mutual funds, US Government…
In the past, we’ve heard and read about Lenders being fined and penalized for violations which relate to their LO compensation plan and/or for some method that they pay their loan originators. Based on recent DOJ settlements with FHA lenders, problems may also arise resulting from FHA Underwriter comp plans. In the case of Franklin American Mortgage, of Franklin, TN,…
Let’s not go jumping to any conclusions here, but San Francisco Federal Credit Union just announced a zero down payment loan for home purchases that will go as high as $2 million. Yup, you read it right, no down to $2 million! It’s a 5/5 year adjustable rate with a present start rate at 4% plus a 1 point origination…
Some experts believe that a slight rate hike may actually increase lending by loosening credit standards (Rate Hike). They believe the higher rates will entice lenders to make it a little easier for people to get mortgages. Is that because the higher rates may restrict some at the lower end of the scale from affording a home? So, in turn,…
