FHA Seller Concession Rules Proposal Issued

Posted by on Mar 1, 2012 in FHA, MU Blog, Origination, Processing, Proposed Rules, Rules Watch, Underwriting | 0 comments The long awaited details of the proposed rule to limit seller concessions is finally back in the federal register. A re-proposal requesting comments was published yesterday, Feb. 23 with a comment period open until March 26th. The new proposal combines a percentage cap with a dollar limitation and works like this (of course it isn’t just a straight forward policy!): The seller is permitted to...
read more

New FHA Total Scorecard Guide Summary

Posted by on Jan 9, 2012 in Appraisals, FHA, FHA/VA, MU Blog, Operations, Origination, Processing, Quality Control / Audit, Uncategorized, Underwriting | 0 comments What do I need to know about the new FHA Total Scorecard Guide? Download Copy Of The FHA Total Scorecard Guide 2011 As you may know FHA released a new FHA Total Scorecard Guide (TSG) with some pretty significant changes. Our team sat down and scrubbed the new TSG to identify and relay the changes to you on our blog. The details will most certainly be incorporated into our FHA Practical Guide...
read more

When Can The Earnest Money Deposit Be Refunded?

Posted by on Nov 15, 2011 in Operations, Origination, Processing, Uncategorized, Underwriting | 0 comments October 18th, 2011 by Alice Alvey, CMB Realtors and sellers constantly struggle with trying to identify if a pre-approval letter is worth the paper it is written on. The costs and delays associated with accepting an offer from an unqualified or marginal buyer can be significant. Even a good loan originator can have a problem when buyers change their financial condition during processing or...
read more

Regulation Z High Priced Loan Definition Change Proposal

Posted by on Feb 15, 2011 in Closing, Operations, Origination, Quality Control / Audit, TILA, Underwriting | 0 comments This proposal will make several big changes to Regulation Z /TILA. You can find the text in the federal register at: 75 FR 58539. The comment period closed 12/23/10 and we are awaiting more information from the Federal Reserve Board on whether all or part of this rule will move forward. Here is a summary of the key parts of the proposal: Rescission: There is a proposed new ‘Notice of Right to...
read more

Qualified Mortgage, Qualified Residential Mortgage And Risk Retention

Posted by on Feb 15, 2011 in Dodd Frank Act, Origination, Quality Control / Audit, Uncategorized, Underwriting | 0 comments Under Title XIV of the Dodd Frank Act federal regulators must establish minimum underwriting standards for residential mortgage loans by 4/15/11 (excluding reverse mortgages and bridge loans of up to one year). This referred to as the Qualified Mortgage standard (QM). The requirements will define how a lender will support the consumer has a reasonable ability to repay the obligation. The QM...
read more

Underwriting FHA in 2011

Posted by on Jan 27, 2011 in FHA, FHA/VA, Operations, Uncategorized, Underwriting | 0 comments The current shortage of underwriters has made FHA Direct Endorsed (DE) underwriters a hot commodity as lenders continually seek for underwriters with a CHUMS ID #. Why are DE underwriters so sought after in today’s mortgage market? Here are some of the key reason that the CHUMS ID # has become good as gold: 1) The underwriter has prior FHA experience 2) Only DE underwriters can review and...
read more

Mortgage U To Conduct FHA Training For HUD

Posted by on Jan 20, 2011 in Fannie Mae / Freddie Mac, FHA, FHA/VA, Origination, Uncategorized, Underwriting | 0 comments Mortgage U is proud to announce that we have been selected by Campus MBA, the education division of the Mortgage Bankers Association to conduct FHA training for a team of employees from the Department of Housing and Urban Development. The training will cover an overview of FHA residential, senior housing and hospital programs including renovation lending, reverse mortgages as well as new...
read more

FHA Fine Print Reduces Allowable Lender Contributions

Posted by on Aug 6, 2010 in FHA, Processing, Proposed Rules, Uncategorized, Underwriting | 0 comments FHA published a proposal on July 15th announcing changes to important underwriting requirements. Lenders and brokers must be aware of a problem in the fine print and respond to FHA immediately! FHA is not only changing the maximum seller contribution from 6% down to 3% they have changed the definition of ‘interested third party’ in a footnote at the bottom of page 41220. FHA’s 4155.1...
read more

Appraiser Coercion or Not?

Posted by on Jul 2, 2010 in Appraisals, Fraud, Origination, Processing, Uncategorized, Underwriting | 0 comments Everyone in the mortgage industry, including borrowers are all too familiar with the challenge of trying to determine whether the comparables provided by the appraiser are adequate. Typically the underwriter is concerned that the value is inflated and the borrower and loan officer are concerned that the value is too low. The ‘tip toe’ around the home valuation code of conduct and requesting...
read more

Regulation Z ARM Changes – Still?

Posted by on Jun 29, 2010 in Origination, Processing, Proposed Rules, Quality Control / Audit, TILA, Underwriting | 0 comments Regulation Z had a proposed rule with a comment period that expired 12/31/09. This proposal received over 3300 comments primarily focused on the section that would prohibit loan originator compensation based on the terms of the loan. Now that the financial regulatory reform bill has included the ‘prohibition on steering’ and restriction of loan originator compensation, we’ll be watching...
read more

FHA’S New Lender Approval World

Posted by on Jun 29, 2010 in FHA, Origination, Quality Control / Audit, Uncategorized, Underwriting | 0 comments FHA ML 10-20 outlined the provisions for HUD’s reform of the lender approval process. Effective May 20th 2011 most lenders must possess a net worth of at least $1m (20% must be liquid assets). The only exception is for small lenders as defined by the Small Business Administration: o mortgage & non mortgage brokers with $7million or less in gross receipts; o Banks, Savings institutions and...
read more