Pretty much everyone knows that
today is considered a legal holiday and cannot be included in the 3-day
rescission period. The bond markets are closed, but plenty of lenders are open
with their workers commuting in. If you think that the oil price decline is all
rainbows and unicorns, think again. Yes, it is cool to spend less than $50 to
fill up a gas tank. But its impact will be felt in many states such as Alaska,
Texas, North Dakota, and Alabama. And around the world things will change -
just last week this caught my eye: "Oil industry supplier Schlumberger to
axe 9,000 jobs" - it seems the company is having a workforce reduction of
7% following big spending cuts by energy customers.
But wait! "ALTA Says
New CFPB Mortgage Forms Disclose Inaccurate Fees"! "The American
Land Title Association (ALTA), the national trade association of the land title
insurance industry, released the following statement from Chief Executive
Officer Michelle Korsmo in response to Consumer Financial Protection Bureau
(CFPB) Director Richard Cordray's speech at the Brookings Institution:
"'ALTA and its members
support Director Cordray's efforts to help consumers gain greater control and
understanding of their real estate transaction, however, we remain concerned
with the Bureau's new Closing Disclosure, which goes into effect Aug. 1, 2015, and
replaces the current HUD-1 Settlement Statement. The Closing Disclosure
misleads consumers about the actual price of their title insurance policies,'
said Michelle Korsmo, ALTA's chief executive officer. 'We urge the CFPB to take
swift action to ensure consumers receive the most accurate information about
their mortgage costs, including title insurance premiums and settlement
services.'
"'Unfortunately, the
current Know Before You Owe forms will create confusion at the closing table
for many consumers. In nearly half of the country, title companies are required
by state law to charge title insurance premiums and discounts in a manner
different than the Bureau would have them disclose those fees to the consumer.
The Bureau must take steps to disclose accurate costs of title insurance
premiums and settlement services to meet their goal of educating consumers of
the true costs of owning a home.'
"Title and settlement
agents will have to provide additional disclosure forms to consumers at closing
to show the actual title insurance premiums charged and to prove compliance
with state law governing industry-filed rates. We support a cleaner real estate
transaction but not at the expense of consumers understanding of their actual
mortgage costs.'
"'We agree with Director
Cordray that an educated consumer is a more confident and empowered consumer.
Our economy can speed up its recovery if we provide more stability, growth and
affordability in the mortgage market. We will continue to work with the CFPB
and our industry partners toward commonsense solutions that decrease consumer
uncertainty and bring demand back into housing market.'"
Vin
Biscoglio with Village Mortgage writes, " regarding the CFPB and the Rate
Checker tool, One would wonder, if the CFPB had spent money to develop
a tool called 'Cost to Rehab Our New Headquarters' Building' prior to them
spending $114 - $145 million to renovate their downtown HQ, how much they would
have been able to save? This agency continues to show their cards as to what
their agenda truly is. By selecting only chosen companies and not
disclosing costs and APR's, a suspecting taxpayer should wonder where the protection
is from the agency started to do just that.
Yes,
there is a lot going on and the Collingwood Group has a new survey to
help monitor things regarding the state of the Federal Housing Administration.
With news breaking last week that President Obama has directed FHA to cut
mortgage insurance premiums, FHA loans are poised to become more prominent in
the housing market. What are your most pressing concerns for FHA moving
forward? Here is the link.
Keeping on with what's going
on, we have conferences coming up:
Join
Texas Mortgage Bankers Association (TMBA) for the Southern Secondary
Market Conference scheduled on February 2nd-3rd. This 5-session
event will cover the following topics: New Product Strategies, Perspectives
on the Market for Mortgage Servicing Rights, GSE and MI Update, The New
Normal of Secondary Marketing, and Demystifying Affordable Housing Finance. Click
the link for registration.
Attend
MBA's National Advocacy Conference on April 14 & 15 to find out what
the industry issues are, learn how they affect your business, and get tips and
talking points for discussions with lawmakers. Then join your colleagues on
Capitol Hill for a day of democracy in action. Click the link for more information.
Turning to the markets... there
are none! Many lenders are closed for the holiday. So take any rate sheet
pricing with a grain of salt since most lenders will take Friday's closing
prices, incorporate what happened in Europe (like Moody's downgrading
Russian credit to near-junk bond ratings), put in a little cushion, and
send it out.
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