FHA Seller Concession Rules Proposal Issued

Posted by Krista Sabol on Mar 1, 2012 in FHA, IMU Blog, Origination, Processing, Proposed Rules, Rules Watch, Underwriting 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...
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New FHA Total Scorecard Guide Summary

Posted by Krista Sabol on Jan 9, 2012 in Appraisals, FHA, FHA/VA, IMU Blog, Operations, Origination, Processing, Quality Control / Audit, Underwriting 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...
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When Can The Earnest Money Deposit Be Refunded?

Posted by Krista Sabol on Nov 15, 2011 in Operations, Origination, Processing, Underwriting 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...
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Appraiser Independence Rules Effective 4/1/11

Posted by Krista Sabol on Feb 15, 2011 in Appraisals, Origination, Processing, Quality Control / Audit October 28, 2010:  The FRB published the first rule for mortgage lenders under Dodd Frank to specify the requirements for the Appraiser Independence rules.  It is an ‘interim final rule’.  They accepted comments until December 27, 2010 but followed with a statement that mandatory compliance is April 1, 2011. Scope per Final Rule: Applies to creditors, appraisal management...
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97th MBA Convention, Atlanta Panel of Industry Experts

Posted by Krista Sabol on Oct 20, 2010 in Operations, Processing The 97th Annual MBA Convention is here. We are looking forward to the panel of prestigious experts on the mortgage industry assembled by Solidify for October 26, 2010 in Atlanta. The expert panel includes Pete Taglia, CPA, CMB, Vice President of FTN Financial Capital Assets Corporation whose expertise is loan sale and securitization strategies, asset backed securities and portfolio analysis...
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How Many Loans by Processors?

Posted by Krista Sabol on Oct 6, 2010 in IMU Blog, Processing Alice Alvey President, CMB  Indecomm-Mortgage U, Inc. I have been on a mission asking every customer ‘how many active loans can your processors handle in their pipeline?” As you can probably guess I receive a lot of questions in return trying to qualify the definition of pipeline, processor and if the processor is working overtime. One person asked me if the processor is...
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Processors are a Bridge

Posted by Krista Sabol on Sep 14, 2010 in Processing A processor’s role has changed dramatically from the first widespread use of computers in the ‘80’s to the paperless task management systems of today. The automated systems moved the industry into thinking processing was an entry level administrative task. It is not uncommon to hear processors say ‘it doesn’t matter what documentation I think I need, the underwriter is going to change...
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FHA Fine Print Reduces Allowable Lender Contributions

Posted by Krista Sabol on Aug 6, 2010 in FHA, Processing, Proposed Rules, Underwriting 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...
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Appraiser Coercion or Not?

Posted by Krista Sabol on Jul 2, 2010 in Appraisals, Fraud, Origination, Processing, Underwriting 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...
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Regulation Z ARM Changes – Still?

Posted by Krista Sabol on Jun 29, 2010 in Origination, Processing, Proposed Rules, Quality Control / Audit, TILA, Underwriting 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...
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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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