With more and more emphasis being put on lenders for quality and compliance, more and more responsibility falls to the loan originator to meet these demands. Larger lenders can provide more support and technology to assist their LOs, but smaller lenders struggle with the increased costs of compliance. As a result, will the small independent mortgage broker become a thing…
Both Fannie Mae and Freddie Mac reported in December that they are considering offering lenders alternatives to repurchase requests for loans that have documented defects but are still considered to be of good quality. I enjoy a good oxymoron. These are some of my favorites: “jumbo shrimp”, “serious joke”, “virtual reality”, “small crowd”, “random order”, “student teacher” and “act naturally”.…
The allowable tolerance for a fee disclosed by a lender for their specific services, e.g. Application fee, Commitment fee, and for those for the services for which a borrower cannot shop, is pretty straightforward. Once disclosed, these fees may not change unless there is a bona fide (justified) circumstance change that directly affects the specific fee. Such a change is…
Let’s get away from TRID for a moment. Recent revisions to the reverse mortgage program have made it a more viable option for more retirees, especially those working a little longer with a consistent monthly income (Reverse Options). For those 62 or older that own a home (and I’m one), it could provide additional wealth while reducing their housing expense.…
Financing options for mixed-use properties have greatly expanded thanks to a change in a long-standing FHA rule limiting FHA Section 203(b) mortgage insurance to properties that have non-residential portions exceeding 25% of the total floor area. Up until September 14, 2015, a prospective borrower was able to utilize FHA Section 203(b) financing to purchase a mixed-use property under certain conditions.…
And so it begins. Which credit score to use to provide the best profile of a potential borrower? Is it FICO, FICO Stage9 or, maybe, the new VantageScore? (Credit Scoring) For the past several years, the industry has mainly relied on the good old three digit FICO score. Some say that is no longer the most representative of a consumer’s…
