Mortgage Talking Points

Are You Prepared to Pass your Licensing Test?  A friend of mine, who has been in the mortgage business 17 years, failed it twice before getting a passing score!  

 http://shop.loanofficerschool.com/products/20-hour-safe-comprehensive-mortgage-loan-originator-course?ref=100315

To find a SAFE Act Prep Test near you! BTW - keep checking because there are 50 of these classes being offered throughout the country.

Unless you’ve been selling real estate on Mars for the past few years, you’ve heard about the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (called the SAFE Mortgage Licensing Act of 2008).

The SAFE Act mandates increased federal regulation of the mortgage lending industry, enhanced licensing requirements, and professional liability for mortgage loan originators (MLOs) who fail to comply. So if digging your way out of the recession were not challenging enough, now you have additional federal and state hurdles to clear.

Dave Reinholtz, LoanOfficer School and Prep Test trainer says: “Too many loan officers are unprepared for this new and added challenge to their professional lives. I’ve put our twenty years’ of experience to work and created a program that can give the MLO confidence and knowledge. I can’t guarantee that everyone will pass the test, but we don’t think that a better program exists.”

HUD says “Hold Off” on your audited financials

(the rules are changing soon)

As proposed in a November 30, 2009, proposed rule (74 FR 62521), HUD is seeking to eliminate FHA approval for loan correspondents.  Because this rulemaking is still in process and a final rule has not yet been issued, FHA is extending the deadline for the submission of audited financial statements for loan correspondents seeking renewal of their FHA lender approval for 2010.  For loan correspondents with a fiscal year end of December 31, and that would ordinarily be required to renew their FHA approval by March 31, 2010, HUD is providing these lenders with an additional 30 days in which to submit their audited financial statements.  These loan correspondents must continue to comply with existing requirements for the submission of their Annual Certifications and renewal fees, but will be given until April 30, 2010, to submit audited financial statements.  Again, the deadline for the submission of the Annual Certification and renewal fee has not been changed.  Loan correspondents that do not complete their renewal in accordance with the deadlines as specified above will no longer be FHA-approved as of the effective date of the final rule that follows the November 30, 2009, proposed rule. 

Many loan correspondents will get caught in a timing fiasco as they won’t want to lose their ability to do FHA loans but will have to pay fees to retain the privilege.  A privilege that will be taken away from them in the near future.  Then they’ll be scrambling to find a lender to accept them into the “fold” (which may still require audited financials) in order to continue originating FHA loans.  Tough stuff. 

Fannie, Freddie, FHA and VA have made significant changes to the condo approval process–both for existing and new construction. 

www.MortgageCurrentcy.com (see Charts/Checklist Toolbar) has created a handy comparison chart to share with your real estate agents!  It will help determine what type of financing is eligible for which type of project. 

Are you lending in a UDSA area?  USDA says that they will accept ANY condo project that is approved by ANY agency–but the location of the condo has to qualify too.

Delayed closings! Sellers getting mad.  Buyers’ truck (with all of their friends) sitting in the parking lot!  It’s a mess when you have to postpone the closing for another 3 days because of  new GFE disclosures. 

Prepare for the worst–hope for the best! 

I suggest that you email  your real estate agents (Hot Tip of the Week) to add a clause to all purchase agreements that says:  “Automatic Closing Date Extension Granted by buyers and sellers due to RESPA and/or Disclosure delays”.  (Or have them talk with their Broker on how best to word it for their rules.)

It’s better to have the “conversation” about the potential problem upfront–than at the closing table.

Here’s the link to download the January 28, 2010 RESPA FAQ.

34 questions/clarifications - changes are in BOLD LETTERS - Answered some questions that were hangin’ out there! 

www.hud.gov/respa

A provision in the National Licensing Law and Registry required a “consumer” link so they can check to make sure a mortgage company, loan officer, etc are licensed (or had their license revoked).  The website has just been launched and here’s the link:

http://www.nmlsconsumeraccess.org/Home.aspx/MainSearch

Check it out and see if you have been listed yet .

Title: HUD Settlement Costs Booklet Revised 1-6-2010

Post:

Here’s the link - looks like some minor changes to the booklet.  I have not had a chance to read what the changes are, but if you ordered booklets from HUD, you might want to double check and make sure you received the lastest version.  P.S. I ordered my HUD booklets January 8 and have not received them yet.  They said it would take 5-10 days. 

http://hud.gov/utilities/intercept.cfm?/offices/hsg/ramh/res/Settlement-Booklet-January-6-REVISED.pdf

You can’t order them online (not yet anyway).  Call 800-767-7468.  It’s HUD Customer Service (who knew they had one:) Maximum per order is 100. You’ll have to hang up and call if you want to order more–but will only ship 100 at a time.

Spanish Version is not yet available.  They said it will take about 10 days to receive.

Freddie’s HomeSteps special financing for their foreclosed properties has been extended to Jan 31, 2010.  Why don’t they just extend it for 6 months at a time–instead of month to month?  Updated MortgageTalkingPoints(r) posted on the site. 

http://www.mortgagecurrentcy.com/downloads/TalkingPoints_HomeSteps_111009.doc