Watching loan officer ads is a full-time job. The
Mortgage Bankers
Association of the Carolinas wrote up this compliance
tidbit: "Are lenders
required to retain web page advertisements?" Yes.
The Mortgage Acts and
Practices Rule requires lenders to retain commercial communications,
including web pages, for a period of 24 months from the
date a person makes
or disseminates the communication. Don't take my word for
it, check out at
FederalRegulations
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRojgpUpCuaNHHGN2ufLDRyV8eeqUnjk6eFP
waFbl1BEVulgKB0LzVFxmJbl2u6Pef3emnEDmk2go7BKrK4jQjy4U3kEtry5mTU=],
Title 12 (Banks and Banking), section 1000-1099 (CFPB),
and the section
1014, section
5 (Record keeping requirements). Or you can try going straight
to
AdRecordKeeping
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRpxqxkGYN3Np1E9CiDniHUHaNl7A23yanV8
twnUnBMHpGuv4IeF3nn9am1sd5pnAVkz1HuGL3Th0VbMR99TVzbcb1sT6lxJHme_29E_OvOAxrQr
TwDVHoeCDutdf0Ta8wp0ML-6SXg5LzJOmOS-X9zBZ7O9-R6N8gJwgLT5ALsGVHS52LR4wALxQZa9
O2YEan-viecFuWTF7CP8Nngkn5Z14Uyrexg-uPJm8Txz9tkyFcFRiX-bxgLNOqFfXepvCSdfAylm
ZOV00_xaGJF4kNJm].
I don't know much about marketing practices, but
occasionally I am asked
about marketing software. In this case, in June Guild
Mortgage selected
Vantage Marketing from Vantage Production, and I know
that Vantage keeps
marketing materials for at least the required amount of
time: GuildMarketing
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRpNQeXlk3_9P1C_PxqCYzdR5CxPGmq4Akss
0qSd6_GnwgY4u5YSRYrrhC1LPWABKvPpuQlIoVb4fwiwwvQHI_6yx7r6Bi0dVkXPqHCpOl0jXNMc
LlDELu_nxIacNzhIHcfDXuAY-fxxbb6HRumOsRdzZ_-XYe_Paoc=].
When a broker directs a loan to a particular wholesaler,
often times the
borrower never quite knows where they will be sending
their payments in a
couple months.
There has been a transition in servicing: 4-5 years ago,
the top five
servicers held 60% of the servicing, but now the top five
hold 49%. And
there are a couple
"upstarts" that have broken into the top ten, ranked
Wells Fargo, Chase, Bank of America, Ocwen, Citi,
Nationstar, US Bank, and
PHH, per Inside Mortgage Finance.
Why are more
companies holding on to servicing? "Economics/revenue" and
"wanting to keep the client" are often cited,
although for some it seems
that they are just going along with the natural evolution
of residential
lending.
That revenue reason is a big one - after all, who wants
to leave money on
the table?
Not the United States Government, thus many tongues are
wagging about
yesterday's profit numbers from Freddie and about whether
or not the
government is really going to give that up by shutting
Freddie down. Freddie
will pay $4.4 billion to the Treasury Department as a
result of its seventh
consecutive profitable quarter (this time of $5 billion).
Freddie Mac
finished the second quarter with net worth of $7.4
billion and is required
to pay everything above $3 billion to Treasury in return
for the taxpayer
aid it has received under conservatorship. F&F
received about $190 billion
in assistance, and have paid back about $132 billion -
which counts as a
return on the U.S. investment in the firms and not
repayment of their debt
to taxpayers.
Yes, the government can't stay away from housing. It is
good to be aware of
what the President
said Tuesday in Phoenix, and also what is on the table
in Congress.
In the ongoing "who's looking out for us more"
race in D.C., House Financial
Services Committee Chairman Jeb Hensarling (R-TX), along
with subcommittee
chairs Scott Garrett (R-NJ), Randy Neugebauer (R-TX), and
Shelley Moore
Capito (R-WV), unveiled the Protecting American Taxpayers
and Homeowners
(PATH) Act of 2013. This act provides for comprehensive
reform of the
government's role in housing finance. Chairman Hensarling
introduced the
bill, "The PATH Act creates a housing finance system
that's designed for
homeowners so every American who works hard and plays by
the rules can have
opportunities and choices to buy homes they can afford to
keep. It creates a
housing finance system that's designed for hardworking
taxpayers so they
never again have to bail out corrupt financial government
enterprises like
Fannie Mae and Freddie Mac, whose top executives engaged
in accounting
shenanigans to trigger huge bonuses for themselves."
With all due respect to
the Chairman, I don't really find the above quote that
note-worthy, but I
never turn down the opportunity to squeeze in the word
'shenanigans'. See
ThePathToWhere?
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRrVgHhWXlg-Pav1v3xTPAxt8m8G7WHvbF9l
zZAW_LhAzzSIfJFJVjUxcOdEjnTcKbpZHrMxMOXdjz7r49hYQLg7kEM8qkmTl2TLKfMz-6ju0Fdl
fEygIl6EeXu_zFPvI9BJVUxnFws1NO-p0eTyNMiSMnd7lRoNy0zuf6mZoInA6uC3mHbbGbpHVD0T
yKCDrrM=]
But who cares about what is going on at the Federal level
when it is so
darned hard to keep track with what is going on at the
state level? This
condensed list is just a smattering of recent activities
- fun for lenders
making home loans in a multiple of states!
North Carolina's General Assembly amended a number of NC
SAFE provisions
related and
applying to applications for the licensure of transitional
mortgage loan originators filed on or after September 1,
2013. The
amendments allow mortgage originators holding
out-of-state licenses to apply
for a limited term license, so that they may continue
lawfully conducting
business while transitioning between or working within
multiple
jurisdictions.
Michigan has revised its mortgage modification program,
and adopted
provisions under the federal loss mitigation program,
effective immediately.
Complete and full details can be found compliments of
Bankers Advisory here
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRrlNeaIjEqvOjft_LWkeAHEL4-NB6p50c2M
ScXX3ZAAWwZGvFeDazJO7aNFfkKN5Jqi38IwI-E1Klxme_Ce3qczBRN59dmgR2WWoLcu1PuYvSGU
0wZWBVlURBijUfgM61a-T-2cgHsFYeMFSJ-0MMu10PZNeCBxP5rXlByuyPZboSCALrBIvyp6kU10
0SWFBGhB7SM9boM0Kw==].
Hawaii recently adopted the Uniform Mediation Act in
order to address a
number of different issues related to the mediation
process. The rules
adopted will govern
mediation agreements and referrals made on or after
July 1, 2013. As of January 1, 2014 all mediation agreements, whenever
made, will be governed by the Uniform Mediation Act.
Eight states already
have enacted the Uniform Mediation Act, led by Nebraska
in May 2003.
Illinois followed nearly a month later, while New Jersey,
Ohio, Iowa,
Washington, Indiana, and the District of Columbia all
enacted it during the
last two years.
Delaware has amended its "Clean Credit and Identity
Theft Protection Act."
Under the new
provisions a consumer reporting agency may no longer charge
consumers for a one-time reissue of the personal
identification number;
however, charges for any subsequent re-issuance are
considered valid.
Victims of identity theft, having filed valid incident
reports, may not be
charged any fee for placing a security freeze on their credit reports.
Consumers have the right to bring a civil action against
anyone who violates
his or her rights under the credit reporting laws.
Oregon legislature recently passed Enrolled Senate Bill
574, amending
statutes relating to security freezes on protected
consumers' consumer
reports. The Act provides procedures for requesting
security freezes and
protective records for "protected consumers".
Under the revisions, a representative may request a
security freeze be
placed upon a protected consumer's consumer report or
protective record.
Also, the Act provides procedures for requesting security
freezes, temporary
lifts of security freezes, and deletion of protective records
Indiana has recently updated their lending regulations,
effective on July 1,
2013.
Consumer credit sales, non-supervised loans, and
supervised loans are all
affected by the regulatory changes. More details can be
found here: Hoosiers
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRrqr8XxF3UnGDPK6rgpBy2IxSzfzYX6ZtS_
a66YbkPC1eQ5_c7DasJk-mGwiSaA89yrV52DDN7jUTInGqCOCBHD4HczjCtH0lqsS_giad56LSH4
_2OW5JjdfYkhQI4qFIHdb2VFA3YC8CC2_7wu98oBjXApqCIxLa-nH0HiZxdKdgNdomwt1B9jhY1U
kjEQpvJwSv0ua4_jqw==].
Louisiana has modified their provisions regarding
seizures and sales of
property
provisions. The new provisions focus on: the notice to judgment
debtors in money judgments after the seizure, the type of
service and timing
of the notice, notice of scheduled sale date plus any
changes, and the
information to be included in the notice.
Texas Supreme Court issued an opinion on June 21, 2013
which addresses three
different issues raised in regard to home equity loans;
home equity fees and
interest, loan closing requirements, and notice
requirements. Here is the
bottom line for Texas
lenders: all
fees-including fees paid to the lender-are capped at 3
percent, all aspects of the loan closing process must
occur at the office of
the lender, an attorney, or a title company, and lenders
are entitled to a
"rebuttable presumption" that homeowners
received required notices on the
third day after mailing.
Nevada has modified several provisions regarding the
foreclosure of owner
occupied property, effective October 1, 2013. Under
current law, the trustee
of a deed of trust
has the power to sell the attached property, subject to
certain restrictions.
Current law also allows judicial foreclosure to recover
debt, or to enforce
a right secured by another lien on the property. The new
bill requires at
least thirty days before recording a notice of default
and election to sell,
prohibits the recording of a notice of default and election
to sell, or the
commencement of a judicial foreclosure action involving a
failure to make
payment, until the servicer makes contact with, or
attempts to contact the
borrower.
North Carolina made modifications to its Consumer Finance
Act
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRrZHqtLqjnFUHmADIRYC9b5tIChbSBfDaPL
v6pnVlCjOxLGoOXD8YKTYFbqw5oz2ttd14jURRa9-Q53ZtSVPB21MTEKaBXELRhlgAhRDp3PSnKz
4VkYeM911kPzJ2iiHJTBN4KaXU9JK8jQLewOl17VZpXYJc1xKQhtLQdHHDcFKAffVKkygEs01uKv
UJ7Soc4=]
to include an increase the minimum amount of loans
authorized by the CFA
from $10,000 to $15,000, and requires a license from the
Commissioner of
Banks; authorizes licensed lenders, for loans up to
$3,000, to charge
interest rates of 36 percent on outstanding balances up
to $1,500, and 15
percent on the remainder of the unpaid balance, whereas
existing law
authorizes 36 percent interest rates on outstanding
balances up to $600;
authorizes licensed lenders, for loans up to $15,000, to
charge 30 percent
interest rate on outstanding balances up to $5,000, 24
percent on
outstanding balances up to $10,000, and 18 percent on the
remainder of the
unpaid balance, whereas existing law authorized 30
percent interest rates on
outstanding balances up to $1,000 and
18 percent on the remainder of the unpaid balance. The
amendments have been
criticized in North Carolina by levels of government
officials and consumer
protection groups for allowing consumer finance lenders
to charge more
interest and higher fees to those consumers that already cannot afford
the
heavy financial burden.
The Missouri General Assembly recently passed a new bill
(ShowMe
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRrAjUPxrdKKUzaa5A0R8OX5dzQRDDcb1kxY
bpBrFK9Ffc-Qo-tSgW2c5sVCf16o3UdzqPXGi68L1wavjmZSMYgIk6YpRZATK0y6i4twZB_6W116
eT-zTOY5a8UR_jhVtakfbzfzpVCGAGDc7e4ZcritzrsGeq02XXRHpSvigV7ADiMLuO6rZNJW])
amending a statute regarding real estate loans. The
statute, found at
Section A.
Chapter 443, is
amended to now include a new section 443.454. The new
section precludes local laws from affecting the rights
associated with
secured real estate loans.
Enforcement and servicing of such loans are now
specifically governed by
only state and federal law.
New York's Department of Financial Services has issued additional
guidance
on the interpretation of state banking laws. This is in
response to recent
readings of section 6-m of the New York Banking Law,
which have resulted in
a number of loans being incorrectly deemed sub-prime.
Section 6-m defines
the term "sub-prime" (not to be confused with
Mayor Bloomberg's section 6-n
which defines "big gulp") as "a home loan
in which the fully indexed annual
percentage rate exceeds by more than one and three-quarters percentage
points for a first-lien loan, or by more than three and three-quarters
percentage points for a subordinate-lien loan, the
average commitment rate
for loans in the northeast region with a comparable
duration to the duration
of such home loan, as published by the Federal Home Loan
Mortgage
Corporation as posted in the week prior to the week when
the lender receives
a completed application."
The increase in interest rates, combined with lenders
usage of the closing
date to determine the "fully indexed rate," has
caused a fear that recently
originated loans now fall into the sub-prime definition.
This amendment
provided lenders with more specific dates to use when
determining the fully
indexed rate.
Many people in our industry are Notary Publics, and if
you're one doing
business in North
Carolina, this story is of some interest to you. In June,
North Carolina's General Assembly ratified amended the
Notary Public Act.
Traditionally, notary publics will perform signature
acknowledgements,
administer oaths and affirmations, and verify or prove
signatures presented
on security instruments. The amendments take effect for
all notarial acts
performed on or after July 1, 2013, and retroactively
validate acts-having
been duly recorded and accompanied by a seal or
stamp-dating back to
December 2005, as well as, most minor or typographical
errors regardless of
when the act was performed or recorded.
There still isn't much going on with rates - much to the
delight of many.
Yes, a little up,
a little down, but no great volatility. (Tradeweb
reported mortgage-backed securities volume remained below
normal at 88
percent of the 30-day average - about
$1 billion from mortgage-backed security sellers.) The
10-yr closed
Wednesday at a
yield of 2.60%, and MBS prices were slightly better.
Today we wrap up the quarterly refunding with the
Treasury auctioning $16
billion in 30-year bonds at noon Central time. We've had
Initial Jobless
Claims (+336k was expected from +326k previously, it came
in at 333k, up
from a revised 328k - no big deal). Rates have crept
higher - the 10-yr is
at 2.61% and MBS prices a shade lower.
Part 3 of 4 of some trivia...
In ancient Greece, tossing an apple to a girl was a
traditional proposal of
marriage.
Catching it meant she accepted. (Or she didn't want it to
hit her in the
face.)
Warner Communications paid $28 million for the copyright
to the song Happy
Birthday.
Intelligent people have more zinc and copper in their
hair.
A comet's tail always points away from the sun.
The Swine Flu vaccine in 1976 caused more death and
illness than the disease
it was intended to prevent.
Caffeine increases the power of aspirin and other
painkillers, which is why
it is found in some medicines.
The military salute is a motion that evolved from
medieval times, when
knights in armor raised their visors to reveal their
identity.
If you get into the bottom of a well or a tall chimney
and look up, you can
see stars, even in the middle of the day.
If you're interested, visit my twice-a-month blog at the
STRATMOR Group web
site located at www.stratmorgroup.com
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRqmmq_d9a0elHL6JIQ0HIic55xvSB77udCk
i_cRCCIc_0xkTmWd5MOP0srcCSrYoUQ9Weqg4kz9L1KfgRUVqRIW_MLLsSepBpw3tht8uwp8B8v0
k7gST4-S].
The current blog is, "A Little Primer on Reverse
Mortgages"." If you have
both the time and inclination, make a comment on what I
have written, or on
other comments so that folks can learn what's going on
out there from the
other readers.
Rob
(Check out
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRrFvi3_OKIaPKbxZ4Wa_LT7Ahm4cnEavhT5
ogsdOqysJoLXhXTP4C4FgZy1PRRrY2fpI9oABNH5ZV_kwBDbwhb-fH2LvNukqsGte3JqyqpfWOX1
q_tBdgkgmseY-YsKvOWFh2snFF-UBIt46H8ouhZbYpONL62SAuJc2UV-xMEbmA==]
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRrL85g_MK_26bksnKftNzBUUEbLLCTzj1z7
huZ3mzZ7UzTNzKrOXKpYNjS8PcS1QNmrnmOYXA-AdDCibyL-Y9nfmlzjjiiqueJws_1ozpZ5HLMg
q7qDFMVCaqpZvI56c_k-quyihYjJ6cV-Mpo6Yn7L].
For archived commentaries or to subscribe, go to www.robchrisman.com
[http://r20.rs6.net/tn.jsp?e=001tkriJUZCpRrK7kGU0qvprEIV_V1HCNu005Kd-XLMzLKc
QkIY_iXMSYQ1DzQFej-lw3I3HkQfjooFMlEOBKHnMzkJWhWjmKHVixSh1VOltSamedhi2IHubL5K
R5jreknt].
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