WDIV Local 4 & Alice Alvey On Foreclosure Scams

Posted by Krista Sabol on Mar 29, 2010 in IMU Blog, News March 29, 2010 Detroit, MI – WDIV Local 4 contacted Alice Alvey, President of Indecomm-Mortgage U to discuss a recent rise in calls into their “Ruth To The Rescue” hot line regarding foreclosure scams. As Michigan continues to rank among the top 5 states in foreclosure numbers it’s no wonder that more and more people fall victim to scams. The main story for Ruth’s segment...
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Faxes, eSign and Disclosures for FHA

Posted by Krista Sabol on Mar 15, 2010 in FHA, FHA/VA, Operations, Processing Yes it still says in the FHA Handbook (4155.1 1.3e) “include in the loan file a certification stating that original documents were examined” and a lender should include a document that makes this certification. The guide also states that lenders may use fax documents as long as the fax header of the document supports an acceptable source. As we move faster and faster into using more...
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FHA Minimum Investment

Posted by Krista Sabol on Mar 15, 2010 in FHA, FHA/VA, RESPA, RESPA 2010 Every day it seems someone finds a loophole that has to be closed or confirmed and today is no exception. In the new world of RESPA and tolerance requirements a lender may be faced with providing a refund of closing costs to the borrower at the time of closing if the fees were under stated by more than 10%. The consequence may lead to the borrower receiving cash back at closing and/or appearing...
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Excessive Fees on FHA Loans

Posted by Krista Sabol on Mar 15, 2010 in FHA The FHA Home Ownership Centers have been requiring lenders to refund unreasonable fees to borrowers for years but this practice has increased over the last year. In many cases the company has charged a broker fee in addition to a 1% origination fee. In other cases the lender has charged a processing, underwriting, administrative and broker fee and FHA has required a refund of fees that were...
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Brokers Can Not Order FHA Appraisals

Posted by Krista Sabol on Mar 15, 2010 in FHA DE lenders need to be very careful when accepting appraisal from other companies on FHA loans. FHA ML 09-28 prohibits a mortgage broker from ordering an FHA appraisal. FHA defines a broker to be a loan correspondent/‘mini eagle’ company. The definition of a broker for ML 09_28 is not solely or directly related to which entity is funding the loan, as for other regulations. The Appraisal FAQ...
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RESPA & Origination: Complaining won’t help

Posted by Krista Sabol on Mar 15, 2010 in Origination, RESPA 2010 I received an email today from a loan originator complaining about the new GFE as if it had just been rolled out in March! The ranting consisted of the usual complaints with the form – ‘why doesn’t it show the seller credit?!’… ‘this is not clearly showing the funds needed to close’… ‘why do I have to show block 1 so large in order to get block A to reflect the right...
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State and Local Taxes

Posted by Krista Sabol on Mar 15, 2010 in RESPA, RESPA 2010 The transfer tax debacle continues as we all struggle to stay competitive and in compliance with block 8 of the new GFE. With potentially thousands of dollars at risk, many lenders have chosen a very conservative route and require disclosure of all state and local taxes in block 8, regardless of whether state law dictates the seller must pay the fee. There is certainly room in the RESPA...
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Excess Credits and RESPA

Posted by Krista Sabol on Mar 15, 2010 in RESPA 2010 Our client initially thought they had to disclose YSP on loans that they funded with their own money and they put it on the GFE which was issued after 1/1/2010. In order to give themselves extra room on the GFE they cushioned not only their estimated fees that go into block one but they added cushion to third party costs like title, etc. They were doing a no cost loan for the borrower so they...
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Texas Mortgage Bankers Association MDIA Summary

Posted by Krista Sabol on Mar 5, 2010 in IMU Blog, MDIA, TILA Texas Mortgage Bankers Association MDIA Summary July 2009 The Texas Mortgage Bankers Association has published one of the clearest write ups that I have seen related to MDIA. For those of you still trying to confirm that your policies are correct, I recommend this bit of light reading. It’s only 6 pages and gets straight to the point. It’s also a great tool if you are new to compliance and...
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FDIC Examination Procedures TILA and MDIA

Posted by Krista Sabol on Mar 5, 2010 in IMU Blog, MDIA, TILA The best way to know how to prepare for an audit is to know the procedures the regulator will use when they come on site.  The attached FDIC procedures have some helpful tools even if you are regulated by another entity. Here are my cliff notes: 1)      there is a helpful finance chart on page 11 2)      Page 29 -32 have great flow charts to illustrate when the finance charges...
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