| NMLS Course Provider List Updated – [Download Charts/Checklists: NMLS and State-Required Continuing Education Classes (Effective 9-7-11)] — September 2011
The changes are being made to first, eliminate course providers who “claim” to be approved to teach NMLS courses—but, in fact, are not approved. The logo with the course provider ID will allow you to check NMLS to ensure they are, IN FACT, approved.
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| SAFE Act Loan Officer Testing – Retake Policy (Effective August 29, 2011) — September 2011
The final rule states that an individual may take a test three consecutive times, with each retest occurring at least 30 days after the preceding test. If an individual fails three consecutive tests, the individual must wait at least 6 months before taking the test again.
(SAFE Mortgage Licensing Act
HUD No. 11-133
24 CFR Parts 30 and 3400)
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| Mortgage Acts & Practices (MAP) Rules – FTC & CFPB (Effective 8-19-11) [Download Mortgage Talking Points™ flyer, "How the Mortgage Acts & Practices" Rules Affect Real Estate Agents & Builders] — Mortgage Acts Practices Advertising Rules August 2011
Wow, this is one humongous, sweeping piece of legislation—because the 19 rules prohibit a lot of stuff that is still going on today! Pay special attention to the “definitions”. I think the feds took out their thesauruses when it came to defining “commercial communications”. Yes, this law even applies to ad agencies, telemarketers, and list generators, realtors, builders, loan mod companies and even servicers…hey I can’t think of anyone it doesn’t include if they offer mortgage products of any kind, including modifications.
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| Final Rule – Setting Standards for State Compliance with SAFE Act – New Regulator in Charge of SAFE Act (Effective August 29, 2011) [Download Chart/Checklist, Minimum Licensing Standards & Oversight Responsibilities Final Rule] — July 2011
The final rule clarifies who needs a mortgage license. It will be determined by activities, not the label of the transaction or professional title of an individual. News Flash – if your Ops Staff has customer contact, they may be subject to SAFE Act requirements. Yep, clear as mud…Read Appendix C starting at page 147 of the final rule for your clarity. Download Final Rule.
(HUD No. 11-133
24 CFR Parts 30 and 3400
)
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| Loan Officer Compensation - Safe Harbors — March 2011
In April, the TILA (12 CFR 226.36) Loan Officer Compensation changes go into effect. For some in the industry this will happen later this month. The question is how to be compensated correctly and remain in the safe harbor by avoiding steering. Here are some of the things you’ll need to know.
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| S.A.F.E. Act & Mortgage Call Report Quarterly Reporting Begins — February 2011
Wow, this reporting is creeping up on you—the quarter ends on March 31—so your Mortgage Call Report is due approximately May 14. I say approximately because it does not define if it’s calendar days or business days. Take a look at the report—NOW—because this covers all loan activity starting January 1, 2011. Link provided to the NMLS Call Report webpage for more information.
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| Federal Reserve: Loan Officer Compensation Rules – No Easy Answers — February 2011
The compliance guide gives this essence of the rule along with some examples for clarification, but the guide stops short of directly addressing the questions raised by the MBA, NAMB and many other agencies. My observation – in order to maintain your income level – it is all about getting more volume. You will have to work harder and do more production – or find systems or assistance to enable you to do so. You will also need to be educated – about customers, programs, your company, the industry, and your friendly neighborhood regulator(s). You will need to be more involved in the industry.
(Reg Z: Loan Originator Compensation and Steering - 12 CFR 226 - Section 226.36
)
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| FEMA Suspends Flood Insurance Coverage for 10 States (Effective January 6, 2011) — January 2011
There are 10 states and 80 counties/cities on this list. Is yours one of them? Check it and see if the counties you do business in are affected. Don’t get stuck at closing, or your client having to bring in a bunch more money to buy flood insurance, just because your local government did not do their job! (Effective 1-6-11)
Federal Register Updates 2010 / 75FR 80351 – Suspension of Community Eligibility)
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| Financial Reform Bill Series (HR 4173) – Eating the Elephant One Bite at a Time – Part #1 - APPRAISAL REQUIREMENTS — August 2010
This bill is HUGE and not just in size or scope. It really doesn’t get fully implemented for a while – 18 months give or take -- so we will chunk it down for you over time. This article is about the Appraisal requirements, because it is the 1st of many changes. In 90 days, SPECIFIC interim rules will tell us what we can and cannot do – we think you will see this firewall separation between LOs and ordering appraisals and appraiser contact defined in these rules.
(Dodd-Frank Wall Street Reform and Consumer Protection Act)
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| S.A.F.E. Act Now Includes Everyone and Possibly Their Assistant, too. — August 2010
Banks, Farm Credit, & Credit Union LOs must register just like everyone else. They must go through background checks, fingerprints, and testing, just like everyone else. The elephant in the room? They must also provide a 10-year employment history—so LOs can’t “hide” from their past—by going to a bank or credit union!
(S.A.F.E. Act)
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| S.A.F.E. Act Mortgage Licensing Rules: By State. [Download Charts/Checklists - SAFE Act Compliance Chart by State!] — July 2010
Do you know the current rules for your state in regards to the S.A.F.E. Act? The deadlines? Do you want to know the rules for other states that you want to do business in? [Download Charts/Checklists - S.A.F.E. Act Compliance Chart by State!]
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| SAFE Mortgage Licensing Act - [Download Checklist - Who Needs to Be Licensed and HUDs State Model for Implementing SAFE Mortgage Licensing Act] — June 2010
You may be surprised to see who actually has to be licensed under this Act. I know I was. Also, HUD’s proposed SAFE Act State Model Language is attached. We’ve put together a checklist, Who Needs to Be Licensed, to help you determine who does and doesn’t need to get licensed under the SAFE Act.
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| Self-Employed Borrowers: Why They Should Think Twice Before Filing That Extension! — April 2010
On full doc loans on self-employed borrowers-- investors want official IRS tax transcripts. But the big hurdle coming is that if our self-employed borrower wants to ‘use’ that 2009 income for qualifying, underwriters aren’t going to allow it until it can be verified through an IRS tax transcript. I highly suggest getting a handle now on what is and is not acceptable to your investors regarding tax transcripts and preparing your borrowers for possible problems.
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| Lapse in the National Flood Insurance Program — March 2010
If you had a hiccup with a closing due to Flood Insurance being unavailable, you were not alone. For whatever reason, Congress has been extending NFIP for short intervals -- the next expiration is within 30 days or March 28, 2010.With Congress acting the way it is, the lapse could easily happen again.
(Single Family News)
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| Rules for Eliminating Mortgage Insurance for Conventional & FHA loans – [Includes Mortgage Talking PointsTM flyer, Rules for Dropping Mortgage Insurance: What you and your clients should know! AND Estimated Number of Years to Drop Mortgage Insurance Chart] — Rules for Dropping Mortgage Insurance March 2010
Yep, there’s a disclosure for that! But what do the PMI termination rules really mean to the average person? Did you know that by offering a 25-year versus a 30-year fixed rate, PMI would terminate 3 years earlier? Download the Mortgage Talking PointsTM flyer and Comparison Chart of down payment amounts (5-10-15%) loan terms (15-20-15-30) and the number of years it will take to drop MI!
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| MDIA & GFE - Are Your Agents Confused? [Includes Mortgage Talking PointsTM flyer, How to Adapt to the New Disclosure Rules] — How to Adapt to New Disclosure Rules February 2010
The Mortgage Talking PointsTM flyer, “How to Adapt to the New Disclosure Rules” is NOT about the gory “details” of MDIA, the GFE or the HUD1. It gives real estate agents tips on how to work with buyers, sellers, title companies and how to insure smoother closings. Hold sales meetings. Email. Give to your title rep. Links to related articles included.
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| Official Website for Consumers to Check Your Mortgage License Online - Links to NMLS Website, FAQs & State Authorities — February 2010
Is your licensing info on the Consumer’s NMLS website yet? We played with the site and it’s pretty much impossible to find “individual loan officers” – consumers are going to freak out if they can’t find you. Learn a few tricks on how to find your NMLS listing-- to make sure your clients can verify that YOU hold a valid mortgage license.
Link to previous article about the SAFE Act.
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| Fannie and Freddie 2010 Loan Limits Unchanged – Announcement 2009-34 & Bulletin 2009-27 — December 2009
No Change – short and sweet. HUD has an appeal process period of 30 days to evaluate individual requests for area median home price increases. But, be sure to use the look-up tools provided in the links section (of this article) when determining the limits in a specific area.
(Announcement 2009-34 & Bulletin 2009-27)
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| Fannie-Freddie-FHA-VA-USDA HO-6 Condo Insurance Requirements – [Includes Mortgage Talking Points™ - HO-6 Condo Insurance Policy Simplified!] — December 2009
There have been a lot of questions and confusion over exactly what is required for insurance coverage for condos. Everyone is well versed on the Master Policy being required, but few people know about the interior policy requirements. We’ve taken something hidden in the Fannie, Freddie, FHA, VA and USDA guides and made it simple for you to take and apply to your daily business. Includes Mortgage Talking Points™ - HO-6 Condo Insurance Policy Simplified!
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| First Time Home Buyer Tax Credit Extended with H.R. 3548 – Including Exceptions For Long-Time Residents & Special Rule for Armed Forces. — November 2009
A couple of surprises - The addition of Long-Time Residence is a biggie and Special Rule for Members of the Armed Forces extends their eligibility until 2011. The extension also cleaned up some of the abuses – with the IRS stating that tens of thousand of people, who received the tax credit, were ineligible in the first place.
I’m sure that the FAQs will follow shortly!
(H.R. 3548 – Worker, Homeownership & Business Assistance Act of 2009)
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| Mistakes to Avoid When Bidding HUD Home Foreclosures - Mortgage Talking PointsTM flyer - Avoiding HUD Home Headaches: Tips on Buying HUD Foreclosures — October 2009
We’ve seen some perfectly good deals go down the drain just because real estate agents (and loan officers) didn’t know about the little “quirks” in the HUD-Home (foreclosures) buying process. Educate your real estate agents and avoid the headaches!
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| HUD Issues 5th New RESPA Rule FAQ on September 4, 2009 — Expect More Updates! (Effective 1-1-10) — September 2009
If you have any other version of the FAQ, prior to September 4, 2009, throw it away—but stay tuned for future updates. (Yes, we send a special email to subscribers when updates occur.) For now, we are only commenting on the first 9 pages of the FAQ “General” Info because it’s what you need to know RIGHT NOW. The review of the new GFE and HUD1 interpretations will be in the October 2009 issue.
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| Mortgage Disclosure Improvement Act – What You Need to Know! (Includes MDIA Flow Chart and Example Delivery/Mailing Date Chart Example) (Effective July 30, 2009) — July 2009
Your world is being turned upside down with this one—especially if you are a broker! MDIA was created for 3 reasons – uniformity, disclosure, and comparison shopping! Major changes in GFE and HUD 1 and HUD 1A. Oh, more waiting periods kick in. MDIA should be renamed to “How Long Can We Delay the Closing Act”! (Includes MDIA Flow Chart and Example Delivery/Mailing Date Chart Example)
(Federal Register Vol. 74, No 95, May 19, 2009)
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| Mortgage Credits Certificate (MCC) – Be The First On Your Block to Introduce It-- Again! (Includes Mortgage Talking PointsTM flyer MCC - Mortgage Credit Certificates - A Blast from the Past!.) — July 2009
It never ceases to amaze me how the products we used to use are making a come back in today’s lending environment. Mortgage Credit Certificates (MCC’s) are such a product. Best of all, it can be use with the $8000 First Time Home Buyer Credit - Mortgage Talking PointsTM Included.
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| What's New with the SAFE Act? (Effective 7-31-09) — June 2009
Not unlike your SS number, expect your SAFE Act LO number to stay with you even if you change employers. Read about the proposed registration requirement for LOs employed by agency-regulated institutions—including banks and credit unions.
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| Shot-Gunning Mortgage Fraud Rears Its Ugly Head Again! — June 2009
Shot-gunning, like most other types of fraud is often done in conjunction with other mortgage fraud schemes such as straw buyers, property flipping, identity theft, etc. Unfortunately as economic conditions have worsened, criminals have increased the measures they will employ to defraud lenders.
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| What's the Latest on the Home Valuation Code of Conduct? (Includes - Mortgage Talking PointsTM flyer - FAQs for Real Estate Agents and Builders) — May 2009
Slowly, the HVCC rules are emerging from lenders, appraiser groups and management companies. Then add 1004MC to it. But there are 2 things you can count on—it costs more and there WILL BE delays. Mortgage Talking PointsTM - Home Valuation Code of Conduct: Now What? Frequently Asked Questions – May 1, 2009 (Distribute to agents and builders).
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| What You Need to Know About First Time Home Buyer Tax Credit — March 2009
Housing tax credits are all the rage! In addition to the $7500 one last year and the $8000 this year, individual states are using some of their stimulus funds to provide ADDITIONAL tax credits. Read little-known facts, including the formula on how to figure “partial tax credits” for those who exceed the income limits!
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| Is the Home Valuation Code of Conduct (HVCC) Going to be Implemented Anytime Soon? An Update! — December 2008
In all likelihood, brokers will be ordering their appraisals through Appraisal Management Companies (AMC’s). Originally, this was rolled out as a January 1, 2009 requirement and there have been no updates from either Fannie or Freddie. In fact it has gotten eerily quiet….but I doubt it’s because it’s going to go away. Read what the appraisers’ board is saying…
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| Most Important Features That Affect You Now - Housing & Recovery Act of 2008. — August 2008
In this issue, I cover the most immediate and impactful components of the law.
A word of warning: I\'m sure you are being inundated with summaries, most of which contain numerous inaccuracies (such as one that I reviewed from an unnamed, yet venerable mortgage certification source). So please be discerning of the source, and skeptical of whom you trust.
(H.R.3221.ENR - The Housing & Economic Recovery Act of 2008)
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| $7,500 First-time Homebuyer Income Tax Credit. Great Marketing Tool for Mortgage Loans of all Types. — August 2008
"Tax Credit" my A_ _; this is a loan! And what a great loan it is!
Whether it\'s the best way or not - it\'s a done deal! And it\'s an amazingly fantastic, one-of-a-kind deal for $7,500** loan. There is absolutely no interest and the homebuyer can take a full 15 years to pay it back. The tax burden is only increased by $500 per year, after skipping a year before repayment starts.
(H.R.3221.ENR Sec.3011.FIRST-TIME HOMEBUYER CREDIT)
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