Lenders and Realtors are hailing a new law that delays flood insurance premium increases, but unless the government takes actuarially prudent measures, rising sea levels could cost taxpayers dearly.
The rock and hard place between which lenders have found themselves in regard to the use of hiring screens and disparate impact (in hiring) just got a bit softer.
everyone, including the underwriter, has an impact on customer experience and denying that means you are no closer to addressing it.
The Consumer Financial Protection Bureau prohibits actions aimed at circumventing loan officer compensation rules. One example was a lender who permitted teams of LOs to share commissions.
The CFPB report for full year 2013 shows that there were over 160,000 complaints to the bureau from homeowners, of which 60,000 were complaints about the mortgage process.
Charlie Keating, who died Tuesday, epitomized an era today's mortgage lenders would do well to remember as low-yielding portfolio assets tempt them to take bigger risks.
Barriers exist to full-blown recovery in the housing market. Structural barriers. Economic barriers. Regulatory barriers. The list is endless.
The lender can experience problems selling a loan that loses qualified mortgage rule's protection. The lender also could be stuck in a vulnerable position if that loan ultimately defaults.
Farmers have been benefiting from steady increases in commodity prices in recent years, partly driven by extreme weather. But the underpinnings of that growth seem to be on the wane.
Lenders should avoid repeated mistakes in their process as they could be used as evidence of a fraudulent intention to originate loans without proper safeguards and underwriting processes.
Lenders don't want to make loans outside the Qualified Mortgage rule's tight debt-to-income standard. Young graduates don't want to add to their hefty monthly payments. Net effect: Fewer first-time buyers.
Over the last year several decisions and regulatory actions suggest industry standards are soon going to become the way of life for lenders.
As interest rates increase, prepayment speeds are falling precipitously, extending the maturities of mortgage-backed securities, especially the guaranteed variety. This trend is likely to cause future declines in MBS values.
The GSEs reported big profits for 2013 but even the companies' executives question the sustainability of those earnings.
A technical reading of the rule supports excluding charges by a broker's title affiliate from the 3% fee cap. But without a specific interpretation from the CFPB, it would be unwise to risk a loan's QM status.