Lenders are constantly looking for ways to increase business and bring in more loans. The intent is to increase income and profitability. Unfortunately, many are finding that increased loan volumes alone do not necessarily translate into more profit. In many cases, more loans lead to more expense and increased problems, resulting in a decrease in net profits per loan. If…
On April 8, 2016, I had alerted lenders that there was an important government deadline quickly approaching and advised them not to miss this “last chance” opportunity. NO, I was not referring to the deadline established for filing Income Tax returns with the IRS. Instead, I discussed HUD/FHA’s very last onboarding phase (which was held on April 15, 2016) for…
There may be some light at the end of the TRID tunnel, and it’s not HMDA coming this way (just yet). In a letter sent to industry trade associations CFPB Director Richard Cordray finally officially acknowledged the challenges posed by TRID compliance. He also announced that as a result of such challenges CFPB is in the process of drafting a…
The recent decision in California in favor of Irvine-based, Mount Olympus Mortgage against Guaranteed Mortgage and a former Loan Originator, for corporate espionage (stealing loans) has lenders reviewing their contracts and employment agreements with their LOs. These contracts need to cover more than just compensation. They should also specifically spell out who “owns” the customer and what happens if, and…
We finally have the answer to who is responsible for the devastating effects of the housing crash of 2008. No, it wasn’t the big banks, or Wall Street, or even those despicable mortgage bankers. According to Presidential hopeful, and most likely our next Democrat nominee for President, Hillary Clinton, it was those good ole Republicans. Who else? Silly me, I…
This time, it’s Freedom Mortgage to the tune of $113 million. Same story, the Department of Justice, under the False Claims Act, brought the action against Freedom for violations in the FHA insurance program resulting in losses sustained by FHA. About a week ago, Freedom agreed to the settlement without admitting liability, but it cost them big bucks just the…
