Over the past few years, lenders should have realized the importance of the quality of the loans they originate and why these need to be done in compliance with all the rules. We’ve seen that lenders originating large volumes of poor quality loans are susceptible to huge fines, loan indemnifications, and repurchases. In some cases, such lenders have originated themselves…
Fannie Mae introduced their new Day 1 Certainty program for relief from the reps and warrants related to the verification and reverification of employment, income, and assets. Good news for lenders. To obtain the relief, lenders need to validate information through Fannie approved vendors. At present those are limited to; The Work Number for employment and income Equifax for tax…
Recent reports from lenders and QC vendors show that overall loan defects are on the decline, including defects related to the TRID rules. This is good news for lenders, the secondary markets, and the housing industry. Fewer defects mean better loans, better loans mean fewer delays with better performance and fewer delays with good loan performance contributes to a much…
Everyone is familiar with Ford’s advertising campaign – “Quality is Job 1.” Lenders learned since the crash of 2008 that in mortgage lending loan quality and compliance is as important as is product and pricing. A poor quality loan can be as costly as one that is priced incorrectly, sometimes more. Here are some questions to consider regarding the quality…
I recently spoke with Brian Honea of The MReport about how lenders might be affected by the upcoming HMDA changes. You can read my comments HERE. Take a look. The requirements to capture and report new data elements for HMDA may seem like a long way off, but funny how time files when you’re programming for changes. Think of TRID…
Speaking at MBA’s Legal and Regulatory Conference in Washington, DC, Peggy Twohig, CFPB’s Assistant Director, said that the CFPB is generally pleased with what lenders have done to comply with the new Dodd-Frank rules. Interestingly, she mentioned ability to repay and LO comp, but not TRID. I guess it’s a little too soon to tell. With some exceptions, they also…
