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May 2, 2012

Interest Rates on Home Mortgages Remain Attractive

Category: Mortgage News,Mortgage Rate Report – admin – 7:51 am

Just when you thought home mortgage rates were finally rising.  According to a recent lender survey, 2012 has been quite a year for shattering interest rates. Yesterday, the leading the rate measuring stick online, HSH.com, said the average rate for fixed-rate thirty-year home loans eased by two basis points last week and at 4.125%. Today’s rates now stand just a hair below the record low. The fifteen-year mortgage rates dipped ever so slightly to 3.125%.

Home Mortgage Rates Won’t Stay This Low Forever

Borrowers seeking adjustable rate mortgage refinancing has cooled a bit, but the pool of homeowners who have variable interest rates has narrowed significantly in recent years. The rate for a 5/1 ARM loan is 2.45%, down from 2.5%. The current FHA mortgage rates have not moved, so first time home buyers and homeowners that have loans insured by the FHA will have opportunities to lower housing costs with rates available 3.875%.

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November 27, 2011

Higher FHA Loan Amounts Extended by Congress

Category: FHA Mortgage,Mortgage News,Published Articles – admin – 5:15 pm

After months of mortgage relief talk, Congress passed a bill that would increase FHA mortgage limits. This was a government compromise that would help homeowners with less than perfect credit get rid of their bad credit mortgage with a record low fixed interest rate. With higher FHA loans, borrowers will have more home loan choices. The fact is that new home buyers and people looking for an affordable refinance would see higher amounts in more than 660 markets across the country. Congress raised loan limits for FHA home loans while leaving loan ceilings untouched for Fannie Mae and Freddie Mac. In effect, this may make FHA the go-to financing option for borrowers needing loans up to $729,750 with down payments as low as 3.5 % in higher cost regions of California; Washington, D.C.; New York, New Jersey and in other states including Massachusetts, Florida and North Carolina.  Fannie Mae and Freddie Mac home mortgage loan programs in those areas, meanwhile, stay capped at $625,500. Equally important, the new plan raises the FHA ceilings for purchasers in hundreds of more moderate-priced markets. For Seattle-area buyers’ the maximum FHA loan amounts jumped to $567,500, while the Fannie Mae-Freddie Mac ceiling remains at $506,000. In Hartford, Connecticut, the limit for FHA is now $440,000 up from $320,850 yet the maximum loan amount for Fannie Mae and Freddie Main are limited to $417,000.

Home buyers with low down payments in Portland, Oregon, who previously had been limited to FHA mortgages of $362,250, can borrow up to $418,750 under the new plan, $1,500 more than they can get from Fannie and Freddie, which generally require steeper down payments and higher credit scores. The new loan ceilings in hundreds of markets are at the core of the compromise: They raise the maximum FHA loan amount in all areas of the country to 125% of the local median home-sale price, while leaving Fannie Mae’s and Freddie Mac’s limit at 115% of median.

What motivated Congress to create separate and unequal rules that transform FHA traditionally a haven for moderate income, first-time buyers with minimal cash — into a key source of financing for buyers in the upper as well as mid-bracket markets? Nobody in Congress actually proposed this idea at the start. By a 60-38 vote in October, the Senate passed an amendment raising all three agencies’ limits to $729,750 in high cost areas and 125% of the median sale price elsewhere. The goal lobbied aggressively by realty and homebuilding groups was to inject needed oomph into lagging home sales. But Republicans in the House balked at doing anything that might prolong the existence of Fannie and Freddie, both the targets of scathing criticism for their multibillion costs to taxpayers and big bonuses for top executives. What ultimately emerged from the legislative scrum was the current compromise penalizing Fannie and Freddie, while boosting FHA. House Republicans weren’t enthusiastic about helping FHA, either the agency faces its own financial challenges but unlike Fannie and Freddie, FHA is subject to congressional appropriations and closer oversight. Republican critics held their noses and voted for the plan. What will this mean for buyers from now through the end of 2013, when the compromise expires? “There’s no doubt this will drive more business to FHA,” said David H. Stevens, former FHA commissioner.” Read the rest of the Daily Herald Article Here.

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November 15, 2011

Will the Government Raise Loan Limits on FHA, Fannie and Freddie?

Category: FHA Mortgage,Mortgage News – admin – 4:50 pm

Many members in the House and the Senate appear to be leaning towards raising FHA loan limits just a month after passing a bill to lower the mortgage limits for Fannie Mae, Freddie Mac and FHA. The Obama administration appears to be all over the map regarding the reduction of FHA limits. After expressing support to extend the higher FHA loan amounts going forward into 2012, the Administration is now saying that they back HUD’s decision to lower the FHA limits in 2012.

Are Stated Income Mortgages Still Available Today? Yes, the FHA streamline is often considered a no income refinance program because income documentation like W2′s and pay-stubs are typically waived for existing FHA customers.

Reuters reported that the Obama administration believes that letting the FHA limits expire will encourage the process of winding down the government’s involvement in the mortgage market and enable new investments with private money driving the mortgage market once again. It’s no secret that FHA reserves sit at all-time lows, so many executives in the mortgage environment have been voicing their concerns about the future role of government mortgage financing.

Will the HARP Rules and Expanded Refinancing Guidelines Help Stem the Foreclosure Crisis?

Many industry managers believe that the Home Affordable Refinance Program could fill the void for many distressed homeowners who needed the FHA loan programs because they are less strict when it comes to equity and loan to value requirements. The new HARP mortgage guidelines have eliminated all loan to value restrictions, so that equity will no longer be an issue for eligible homeowners seeking affordable home refinancing.

The Acting Commissioner at the Federal Housing Administration, Carole Galante reiterated Tuesday the agency’s position that the expired FHA limits would have little impact. These account for only 5% to 6% of the FHA portfolio. She also said re installing them wouldn’t necessarily be a negative jumbo loans either since these are usually higher-credit borrowers.  However, the consequence of expanding the limits for FHA but not Fannie and Freddie is simply unknown, she said. Galante continued, “This is a situation that has never occurred before, where FHA would have the higher loan limits and Fannie and Freddie would not. It’s hard for us to make any kind of prediction for how much of that business would come to the FHA without finding any other sort of alternatives.”

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September 13, 2011

More Obama Mortgage Refinancing Programs

Category: Mortgage News,Mortgage Reform News – admin – 2:23 pm

According to the Wall Street Journal, nearly 25% of all U.S. borrowers could eventually gain access to an Obama mortgage refinance program to secure low rate mortgages. At issue are millions of so-called “underwater” borrowers who owe more than their home is worth and can’t refinance to current low rates using traditional means.

The Obama administration’s Home Affordable Refinance Program, also known as HARP, has sought to provide a “home refinance loan”  to some of these underwater borrowers who have no equity in their homes.  To qualify, borrowers must have a mortgage is backed by Fannie Mae and Freddie Mac.

HARP currently only allows borrowers to refinance at lower rates with a mortgage that is at most 25% more than their home’s current value. However, that may soon change and millions more could be eligible. The FHFA, the regulator for Fannie and Freddie, said last week it is analyzing whether it would allow borrowers who are even more underwater those homeowners owing even more than that cap to participate.

Approximately 9.8 million mortgages or 25% of all U.S. homeowners have loan finances that are 20% or more underwater. RealtyTrac reported that almost half of all U.S. home loans 16 million of the 40 million U.S. mortgages are underwater. These statistics do not exactly motivate new buyers to go get 1st home-buyer loans even if the interest rates have never been lower.

Analysts at J.P. Morgan said Friday that they believe changes to HARP mortgage financing are coming, but those changes will happen in “weeks” rather than days.  However, both groups of analysts believe another idea that has been floated to encourage banks to refinance underwater mortgages is likely off the table.

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May 18, 2011

Lenders Report Lower Mortgage Rates for Refinancing

Category: Mortgage News,Mortgage Rate Report – admin – 8:55 am

Just when you though it could not happen again –refinance applications shot up again last week.  Most financing insiders attribute it to the falling interest rates. Many homeowners are making a last ditch effort to improve with a mortgage rate refinance. The Mortgage Bankers Association announced lower than expected rates in their report of seasonally adjusted index of applications for home financing activity.  The MBA report monitors the demand for purchase home loans and refinancing, climbed 7.8% in the week ended May 13.

Can Mortgage Rates Get Any Lower?

The MBA’s seasonally adjusted index of house refinance applications rose 13.2%, while the gauge of loan requests for home purchases dipped 3.2%. The refinance share of loan activity increased to 66% of total applications, the largest amount since late January. Michael Fratantoni, MBA’s vice president of research said, “The 30-year fixed mortgage rate is now 53 basis points below its 2011 peak, and has decreased for five straight weeks.”  He also noted that the mortgage refinance activity has risen nearly 33%.” The 30-year fixed interest rates averaged 4.60% in the week and that was the lowest rates reported since November 2010, when low rate records were being set.

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May 10, 2011

Nearly 30% of Homeowners Have Underwater Home Loans

Category: Mortgage News,Mortgage Relief News – admin – 9:01 am

Almost a third of borrowers have experienced a significant loss of value in their home as over 28% of homeowners are strapped with an “underwater mortgage”. Property values fell 3% from the prior quarter and are now nearly 30% lower than the June 2006 peak. Real estate data analytics firm Zillow said its home value index for the first three months of 2011 declined 8.2% from a year earlier to $169,600. The first-quarter decline was the steepest since 2008. Zillow now doesn’t expect home values to reach bottom before 2012, “at the earliest.” “Home value declines are currently equal to those we experienced during the darkest days of the housing recession,” Zillow Chief Economist Stan Humphries said. “With accelerating declines during the first quarter, it is unreasonable to expect home values to return to stability by the end of 2011. We did expect substantial payback from the home-buyer tax credits, which buoyed the housing market last year, but underlying demand post-tax credit, as well as rising foreclosures and high negative home equity rates makes it almost certain that we won’t see a bottom in home values until 2012 or later.”

According to Zillow the level of single-family homeowners who owe more on their home loan than the property is worth rose to a new high of 28.4% at March 31, up from 27% at the end of 2010. Home loan default rates increased during the first quarter as banks ended moratoriums related to last fall’s robo-signing debacle. Zillow also reported that one out of every 1,000 homes in the country was lost to foreclosure in March.

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May 2, 2011

Mortgage Lending Demand Rising

Category: Mortgage News – admin – 3:15 pm

We have heard reports from MBA and local loan officer surveys that home loan guidelines have been less restrictive as of late, with companies seeing an increase in approvals for conventional and FHA mortgage submissions in the last few months. According to a Federal Reserve survey, mortgage lenders and banks loosened lending terms in the first quarter as they forecast improvement in the U.S. economy and companies sought more home loans. “The April survey indicated that, on net, mortgage lending standards and terms generally had eased somewhat further during the first quarter of this year,” the central bank said today in its quarterly survey of senior loan officers.

The Federal Open Market Committee renewed their pledge to hold the home loan rate low for an “extended period” and complete a $600 billion bond purchase program by the end of June. “Clearly, we are seeing a turn in the cycle,” said Mark Vitner, senior economist for Wells Fargo Securities LLC in Charlotte, North Carolina.

55% of American banks surveyed reported improvements in the credit quality of large and middle-sized home loan applicants, the Fed said. About 35% reported improvements in the credit quality of small firms, according to the survey. U.S. economic growth slowed in the first quarter to a 1.8% annual rate after a 3.1% pace in the final three months of 2010 as government spending declined and consumer purchases cooled. The economy will probably expand by 2.9% this year, according to a Bloomberg News survey of 74 economists in April. The survey of loan representatives at 55 American banks and 22 U.S. branches and agencies of foreign banks was conducted from March 29 to April 12, the Fed said.

Some categories of mortgage lending have shown signs of improvement in recent months. Commercial and industrial loans increased at an annual rate of 11.3 % in March, the largest gain since October 2008, according to Fed data, and the fifth consecutive monthly increase.  Lending to businesses is still far from its peak. Commercial and industrial loans rose to $1.25 trillion as of April 13 after reaching a trough of $1.21 trillion in October. Commercial real estate loans have dropped to $1.46 trillion from $1.73 trillion in December 2008, according to a separate Fed report.

Some banks also eased standards for mortgage loans, though demand was mixed, according to the survey. Consumer interest in home mortgages dropped. U.S. consumer borrowing increased for a fifth straight month in February on an increase in non-revolving credit as education loans expanded, the Fed said in a separate report last month. Credit climbed $7.62 billion, the most since June 2008, to $2.42 trillion. Revolving credit, which includes credit cards, and home equity lines of credit indicates Americans remain reluctant to take on more debt even as the economy and job market improve.

The Federal Reserve said last week that “the housing sector continues to be depressed.” Conforming and current FHA rates have risen since the Fed began its second round of asset purchases in November, rising to 4.8 % on April 21 for a 30-year fixed-rate loan from 4.17 % in November.

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March 4, 2011

Is the End of Mortgage Deductions Inevitable?

Category: Mortgage Industry Rumors,Mortgage News – admin – 6:46 pm

One of the biggest selling points of home buying is the money you save from the mortgage interest tax deduction. For people who are already a homeowner, the ability to deduct the closing costs on home mortgage refinancing, certainly keeps lenders busy. one of the significant benefits is the mortgage interest tax deduction.  One would think that the home loan interest is a sacred benefit for homeowners, but there is a buzz in the Nations’ Capitol to eliminate the deductions, at least temporarily. Pundits argue that the mortgage deduction does not really promote buying a home like it should. Some say even suggest that the Federal government should not be promoting being a homeowner anyway. And the recent Democrat talking point is that the government must stop extending the tax write-offs for homeowners because it’s costing the government billions of dollars in lost revenue. Sure we the national debt in the U.S. is out of control as we continue to face astronomical deficits, but has the mortgage interest deduction really had a negative impact on our economy and the national debt?

  Despite the grasp for the Obama administration to redistribute wealth to help fund their social agenda, most politicians agrees that it would be very difficult to end the mortgage interest deduction and tax credit on home sales. For nearly a hundred years, Americans have been writing off the interest on home loans, refinance mortgages, lines of credit, home equity loans and second home loans.The mortgage and housing industry will certainly put up a fight if this administration forges ahead with their plans to dissolve the tax deductions on mortgage interest. With the housing market sputtering along, you could make the argument that it might not be the best time to gouge homeowners to pay more in taxes. In December, the national debt commission proposed eliminating mortgage deductions in an effort to raise tax revenues.Then a few weeks ago, the Obama administration released their plan to wind down the government-managed companies like Fannie Mae and Freddie Mac.

The debate on tax benefits will surely continue. With presidential elections just around the corner, I seriously doubt Obama or the Democrats will take the political risks that cutting mortgage interest tax deductions would pose. Stranger things have happened though, so pay attention to the mortgage news and don’t worry about issue beyond your control.

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February 9, 2011

Many States Have Underwater Mortgages

Category: Mortgage News,Uncategorized – admin – 5:00 pm

Lenders continue to report that a high percentage of applicants seeking  fixed mortgage refinancing are underwater.  With mortgage refinance rates on the rise it is important to consider that many of these states will continue to have borrowers underwater until the housing sector recovers and the refinance guidelines loosen up a bit.  Below is a state-by-state comparison of home loan data from the Lending Tree.

State by State Home Loan Data Analysis
STATE Lowest Rates Loan to Value % with Negative Equity
Alabama 4.75% (4.90% APR) 67.1% 10.5%
Alaska 4.88% (5.08% APR) 67% 8.9%
Arizona 4.88% (5.02% APR) 92.4% 48.6%
Arkansas 4.88% (5.00% APR) 73.6% 11.6%
California 4.88% (5.01% APR) 70.1% 31.6%
Colorado 4.88% (5.05% APR) 72.1% 19.6%
Connecticut 4.75% (4.86% APR) 58.2% 11.9%
Delaware 4.75% (4.86% APR) 67.9% 13.3%
DC 4.75% (4.99% APR) 58.6% 15.2%
Florida 4.75% (4.86% APR) 88.7% 45.5%
Georgia 4.88% (5.02% APR) 79.8% 28%
Hawaii 4.88% (5.08% APR) 55.5% 10.7%
Idaho 4.88% (5.02% APR) 74.1% 25.3%
Illinois 4.88% (5.02% APR) 70.6% 19.4%
Indiana 4.88% (5.07% APR) 70% 11.3%
Iowa 4.88% (5.08% APR) 66.9% 8.7%
Kansas 4.88% (5.08% APR) 70.6% 11.1%
Kentucky 4.75% (4.90% APR) 68% 8.9%
Louisiana 4.88% (5.08% APR) N/A 22.5%
Maine 4.88% (5.08% APR) N/A 22.5%
Maryland 4.75% (4.99% APR) 68.8% 22%
Massachusetts 4.88% (5.00% APR) 60.3% 14.9%
Michigan 4.88% (5.00% APR) 85.5% 37.6%
Minnesota 4.75% (4.86% APR) 65.5% 16.2%
Mississippi 4.88% (5.08% APR) N/A 22.5%
Missouri 4.88% (5.02% APR) 71.5% 15.7%
Montana 4.88% (4.96% APR) 60.1% 7.7%
Nebraska 4.88% (5.08% APR) 73.1% 9.6%
Nevada 4.88% (5.02% APR) 118.7% 66.5%
New Hampshire 4.75% (4.87% APR) 69% 17.7%
New Jersey 4.75% (4.84% APR) 61.3% 15.2%
New Mexico 4.88% (5.03% APR) 66.4% 12.6%
New York 4.88% (4.98% APR) 49.8% 7%
North Carolina 4.88% (5.02% APR) 70.3% 10.5%
North Dakota 4.88% (5.08% APR) 59.9% 7.4%
Ohio 4.88% (5.08% APR) 74.7% 20%
Oklahoma 4.75% (4.87% APR) 70.7% 6.0%
Oregon 4.88% (5.04% APR) 68.7% 15.6%
Pennsylvania 4.75% (4.84% APR) 62.1% 7.4%
Rhode Island 4.88% (5.08% APR) 61.6% 20%
South Carolina 4.88% (5.01% APR) 70.4% 14.2%
South Dakota 4.88% (5.00% APR) N/A 22.5%
Tennessee 4.88% (5.01% APR) 70.9% 13.9%
Texas 4.75% (4.87% APR) 69.5% 11.2%
Utah 4.88% (5.12% APR) 73.6% 20.7%
Vermont 4.88% (5.08% APR) N/A 22.5%
Virginia 4.75% (4.86% APR) 70.5% 22.1%
Washington 4.88% (5.02% APR) 66.2% 14.9%
West Virginia 4.88% (5.08% APR) N/A 22.5%
Wisconsin 4.88% (5.08% APR) 67.2% 13.1%
Wyoming 4.88% (5.02% APR) N/A 22.5%
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January 11, 2011

Home Mortgage Predictions for 2011

Category: Mortgage News,Published Articles – admin – 1:58 pm

There is a lot of chatter online and in the news about what will happen in the home mortgage sector in 2011.  Like it or not, the mortgage industry has a significant impact on the economy, so let’s pray that the housing sector and mortgage industry will continue to improve in the coming years.

1. Mortgage rates will increase in 2011. The Mortgage Bankers Association and has predicted that interest rates will inch up in 2011.  At the end of 2010, mortgage rates began to rise out of the 4% range and slightly above 5%.  Most analysts predict that conventional, VA and FHA interest rates will all increase a bit in the next twelve months.

2. Home loan demand will fall in 2011. The MBA predicts that total mortgage originations for 2011 will decline to less than $1 trillion, driven by subdued economic growth and a lack of consumer confidence.

3. Home refinance loan applications will decrease – Mortgage refinance transactions have been driving the home financing sector for the last few years.  MBA reported that refinance loan applications made up nearly 80% of all mortgage business last year.  They also predict that refinancing activity will fall below 40% of the home loans originated in 2011.

Purchase loan applications will drive the mortgage market. The MBA predicts that stabilizing home prices and modest increases in home sales will increase the number of home buying applications in 2011.  Read the original article on MSNBC.com

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October 20, 2010

Home Loan Qualifications Getting Tougher

Category: Mortgage News,Published Articles – admin – 11:44 am

Mortgage professionals continue to complain that not enough consumers qualify for a home mortgage today.  Even with record low home loan rates, qualifying has become a serious concern for millions of home buying prospects.  Two years after the depths of the financial crisis, the pendulum is still swinging away from the days of “Everybody’s Approved” regardless of credit.  It was not that long ago that mortgage bankers required almost no proof that a customer had the ability to pay back a home mortgage. Before the housing market crashed, even industry insiders ridiculed certain popular mortgages as “NINA” — “no income, no asset” mortgages.  No income verification loans are hard to find these days.  Banks and lenders are approving home loans with a lot more scrutiny. In an effort to minimize loan defaults, they have significantly raised underwriting requirements needed to get approved for a home loan.

The crackdown comes as major banks find themselves mired in controversy at the other end of the credit spectrum. What is described by some as a technical error signing thousands of affidavits for foreclosures without proper review — has turned into a political scuffle ahead of next month’s U.S. elections. Facing pressure from U.S. lawmakers, Bank of America said on Friday it would halt foreclosures in all states, fueling concern that outstanding FHA-mortgage loans will further hinder housing’s rebound from its worst crisis since the 1930s.   Yet, as Shipe’s case suggests, the market for new home loans is not much more encouraging. And while foreclosures are capturing most of the headlines, barriers to credit affect far more Americans and could be a bigger drag on any recovery.

Shipe never gave a moment’s thought to the possibility that she would struggle to secure a mortgage.   After all, she has a credit score above 800, far higher than most Americans. And as the chief executive of the Council of Real Estate Brokerage Managers, an industry group that is affiliated with the National Association of Realtors, she happens to be an insider.  Shipe is also debt-free. In her last home she not only paid her mortgage on time, but also put an extra $1,000 per month toward the principal. To top it off, she has banked with JPMorgan Chase — whom she came to for a home loan, for more than a quarter of a century.   But when Shipe applied for a jumbo mortgage loan over $417,000 toward a $630,000 town house in Chicago’s affluent Lakeview neighborhood, she was told she needed 20% down instead of the 10% she was expecting. So she reluctantly used cash savings and withdrew money from her money market account.   Then came the tedious process that has recently become almost unbearable for solid borrowers trying to take advantage of a sluggish market and alluring low mortgage interest rates.

The push on documentation has been exacerbated by the growing struggle between the nation’s largest lenders and Fannie Mae and Freddie Mac, the U.S. institutions that help provide some three-quarters of funding for residential loans.   Known as government-sponsored enterprises, or GSEs, Fannie Mae and Freddie Mac have required taxpayer bailouts of $150 billion since late 2008, and have warned they will need more mortgage relief from the U.S. Treasury.

Today, the two companies are scrambling to recoup some of the losses that continue to pile up on the $5 trillion in home loans they helped fund. To that end, they are scrutinizing loan data for minutiae that would disqualify them under their standards. Banks are then being asked to buy back billions of dollars in loans Freddie and Fannie deem as problematic, forcing the lenders to increase reserves and legal teams to contest claims.   All told, the U.S. banking industry stands to lose up to $44 billion as they “repurchase” such mortgages. More than half of that total is expected to be absorbed by five big banks: Bank of America Corp, JPMorgan, Citigroup, Wells Fargo and SunTrust, according to Paul Miller, an analyst at FBR Capital Markets.

Mortgage lenders, brokers and borrowers are caught in the crossfire. During the housing boom, a borrower could turn to private investors. But today Fannie Mae and Freddie Mac along with the Federal Housing Administration and Ginnie Mae — have a hammerlock on market share.  See the original MSNBC article.

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August 17, 2010

Fed Prohibits Bonuses Paid from Lender to Broker for Higher Rates

Category: Financial News,Mortgage News,Mortgage Reform News – admin – 6:47 pm

The Federal Reserve issued the final mortgage rules are effective April 1, 2011, to provide mortgage lenders and loan originators time to develop new originating models and implement necessary changes to their loan originating systems.  The final rules, which apply to closed-end mortgage loans secured by a consumer’s dwelling, will:

 
  • Prohibit payments to the loan originator that are based on the loan’s interest rate or other terms. Compensation that is based on a fixed percentage of the loan amount is permitted.
  • Prohibit a broker or loan officer from receiving payments directly from a consumer while also receiving compensation from the creditor or another person.
  • Prohibit a broker or loan officer from “steering” a consumer to a mortgage lender offering less favorable terms in order to increase the broker’s or loan officer’s compensation.
  • Provide a safe harbor to facilitate compliance with the anti-steering rule.

Among other provisions, Section 1403 of the Reform Act creates new TILA Section 129B(c). The Board intends to implement Section 129B(c) in a future rulemaking after notice and opportunity for further public comment. Here are a few discrepancies…

  • The Reform Bill gets a bit more specific with the definition of “steering, but the final rules issued today already impose restrictions preventing the originator from steering borrower into loans that are not in their best interest.
  • The final rule issued today does not include a provision in the Reform Bill (TILA Section 129B(c)(2)) that says the borrower may not make any upfront payment to the lender for points or fees on the loan other than certain bona fide third-party charges.  Make sure you read that closely, it says UPFRONT.  Some mortgage lenders charge an appraisal fee disguised an “application fee” and will not refund it if the borrower goes with another lender before the home inspection is completed. This regulation eliminates the borrower paying an “application fee” right after they are issued the GFE.
  • It is unclear whether or not the Reform Bill’s revisions will affect a home equity credit line as well because they are not considered “Closed End Credit”.

The Lead Planet posted an interesting take on the YSP banning > Fed Bans Lenders from Paying YSP to Mortgage brokers

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