Mortgage Talking Points

June 1 is when Fannie/Freddie will require that you check to make sure that your clients have not incurred any new debts…or if they have a lower credit score, what is the reason is for the lower score.  I found that Informative Research just launced a service called “PreCloseCredit” which offers a comparison and a summary of any changes from the initial credit report.  Might want to check it out (no, i don’t have any affiliation with them) just thought it might help you out.  http://www.informativeresearch.com/

This change is HUGE and expect more closing delays!  Okay, so what it really means is that after the loan is underwritten, but before funding, the file will need to be audited.  The underwriter has given you one set of conditions and you may get a 2nd set of conditions from QC.   So, who’s going to underwrite the loan a second time?  The other bigger here is that a “defects” report (for each individual loan file) must be submitted to management on a monthly basis. 

Effective July 1, lenders are required to:

1. Have a written procedure for approval or 3rd party originators (Brokers/Correspondents, etc)

2. New Requirements for QC on the PRE-Funding

3. New Requriements for QC Audit Review Process

Loans that will be considered HIGH RISK and subject to a higher percentage of pre-audit are:  90%LVT and higher; High-risk credit scores; investment properties; cash-out refis; 3rd party originations; loans originated by new employees! 

Mortgage Talking Points(r) for real estate agents:  “Don’t Close Late–Don’t Close Ugly”  about the rules that affect closing dates on purchase contracts! 

http://www.mortgagecurrentcy.com/members/mortgage-talking-points.php

The 2009 income tax forms added more pages in 2009 and the latest version of “How to Read Tax Returns and Close More Loans (2009)” has just been released. 

For self-employed, commission income, rental properties, LLC’s, Sub-Chapter S, corporations, trusts and how to figure cash flow using these forms.  Download the entire set of 2009 tax papers and follow along so you can count ALL the income needed to get your clients qualified. 

Show underwriters exactly how to figured income!  Here’s the link to order your CD version.

http://www.mortgagecurrentcy.com/store/store1.php?item_no=CDReplay2

LO’s are again asking about the RESPA rules — about when you can legally pay an affiliated party a referral fee.  Dr. Gary Lacefield, RESPA Expert, has provided a RESPA REFERRAL FEE MATRIX and you can find it in the Charts & Checklist section of www.MortgageCurrentcy.com

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

The 49 page consumer booklet has just been released on HUD’s site.  You’ll need to start using it on Jan 1, 2010. 

 It’s the best I’ve seen–and recommend that you use as YOUR tool to explain the process to your clients.  Suggest you start on Page 11, called “Your GFE Step-By-Step”.  Hold a sales meeting with Real Estate Agents and review the booklet with them as they will be getting questions about it too.  (Pages 4-8 apply to them)

On the same page link, you’ll also find a 29 page ”power point presentation” by HUD called ” RESPA Training - Dec 2009″  No audio but suggest you print and review. 

http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm

HUD’s Just Posted “Practice” GFE - Link Provided Started by Karen Deis. Save in Folder Just about a week ago, HUD posted a “practice” GFE form on their website.  You can fill in the blanks and get a feel for what to expect when January 1 hits!  Here are two links.   This One should take you directly to the GFE form. http://www.hud.gov/offices/adm/hudclips/forms/files/1-gfe.pdf This one will take you to the HUD Clips site, and then click on the PDF version: http://www.hud.gov/utilities/intercept.cfm?/offices/adm/hudclips/forms/files/1-gfe.pdf

HUD’s Just Posted “Practice” GFE - Link Provided

Just about a week ago, HUD posted a “practice” GFE form on their website.  You can fill in the blanks and get a feel for what to expect when January 1 hits!  Here are two links. 

 This One should take you directly to the GFE form. http://www.hud.gov/offices/adm/hudclips/forms/files/1-gfe.pdf

This one will take you to the HUD Clips site, and then click on the PDF version: http://www.hud.gov/utilities/intercept.cfm?/offices/adm/hudclips/forms/files/1-gfe.pdf