Restoring American Financial Stability Act of 2010
When this new law is fully implemented, it appears that Mortgage Brokers will be limited in what loans they can originate and one wonders if mortgage brokers will even survive this change.
- One of the provisions of the law requires the lender to retain a percentage of ownership, which clearly will not be possible with brokers, but might work with wholesale lenders, where brokers send their loans.
- Another provision sets the compensation to a fixed amount, potentially being so low, it’s not worth doing the job.
- The new disclosure requirements are very cumbersome and most borrowers find them to be confusing.
An overview of this law is as follows: Read the rest of this entry »
An article in the Sunday paper of the Contra Costa Times, written by Kenneth Harney (Nation’s Housing), writes about a loophole in the new lending regulations, allowing them to not give a good faith estimate upon a new loan application. http://www.contracostatimes.com/search/ci_14193760?IADID=Search-www.contracostatimes.com-www.contracostatimes.com
He suggests that loan brokers are taking advantage of this “mistake” in the new regulations, to not disclose fees. However, it appears that this is another example of the unintended consequence of new laws, once again turning out to be counter-productive. Read the rest of this entry »
Question: How do you guarantee borrowers will not default on their loans?
Answer: Don’t loan them money! Is this where we’re going?
It seems that government regulators have decided that the activities of real estate practitioners have contributed to the economic downturn. Many changes to the industry can be expected as a result. Read the rest of this entry »
On July 30, 2009, a new law is being implemented by loan regulators, which has increased disclosure requirements for lenders. It is called the Mortgage Disclosure Improvement Act. (MDIA) The intent of this bill is to tighten up lender disclosures (from application to closing), so there will be no surprises while signing the closing loan documents. While the goals of this rule seem laudable, it may have some unforeseen consequences. Read the rest of this entry »
For as long as I’ve been in the real estate business (23 years), conventional mortgage loans were seen as the best (purchase) financing available, by sellers and listing agents for predictability and odds to close. Government loans (FHA / VA) were view as slower, more cumbersome, and costly to the seller, as compared to conventional loans. Could this have suddenly changed? Read the rest of this entry »
The following was sent out by Marc Savitt, President – National Association of Mortgage Brokers (NAMB):
To: All Mortgage Brokers, Real Estate Agents, Appraisers, Lenders, Home Builders, Title Agents, and Consumers
From: Marc Savitt, President- National Association of Mortgage Brokers
After more than a year of exhaustive negotiations with Fannie Mae, Freddie Mac, James Lockhart, Director of FHFA (GSE Regulator), and NY Attorney General Andrew Cuomo, NAMB believes the time has come for your individual voice to be heard. Read the rest of this entry »
It has been a little over a month since the HVCC has been in effect at the mortgage banks and the real estate industry is starting to see the implications of this new law. No longer can the mortgage broker or direct lender chose the appraiser for conventional financing. Read the rest of this entry »
