NAMB / HUD Webinar
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Full slides from NAMB / HUD Dec. 1 webinar. The purpose of this particular NAMB / HUD webinar is to give mortgage brokers a high level overview of the general changes that they need to be aware of.
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NAMB / HUD Webinar
- 1. What Originators Need to Know about RESPA, FHA Broker Approval and Appraisal Reform Tuesday, December 1, 2009 2:00 pm (Eastern)
- 2. Agenda • Welcome – – Introduction - Mark Green & Mark Madsen • NAMB Update – Latest NAMB Updates – Jim Pair • RESPA/GFE Reform – Presentation – Alice Alvey – Q & A – Vicki Bott • FHA Appraisal Policy – Presentation – Tony Gallegos – Q & A – Vicki Bott • Proposed FHA Broker/Mini-Eagle Approval – Presentation - Tony Gallegos – Q & A - Vicki Bott • Conclusion
- 3. Panel Experts • Vicki Bott – HUD – Deputy Assistant Secretary of Single Family Housing • Roy DeLoach – NAMB – Chief Executive Officer • Alice Alvey – Mortgage U – President and Chief Executive Officer • Tony Gallegos – Mortgage U – Director of Advisory Services & Consulting
- 4. RESPA/GFE • Principles of RESPA Reform • Key Dates • Breaking Down the GFE • GFE Triggers • GFE – Page 1 – Page 2 – Page 3 • GFE Fees – Charges that cannot increase – 10% Tolerance • Right-to-cure tolerance – Charges that can change • RESPA/ GFE – 120 Day Enforcement Restraint
- 5. Effective Dates January 1, 2010 • New GFE • New HUD 1/1A • Elimination of 1% cap on FHA origination fees • 120 Day Enforcement Tolerance – What it really means
- 6. GFE Triggers • Borrowers Name • Social Security Number • Property Address • Monthly Income • House Value or Best Estimate • Loan Amount • …or any other relevant information
- 7. GFE Notice Requirements • Provided no later than 3 business days by hand, mail, fax, email or other manner lender can document • Not required if application denied or withdrawn by borrower • May be provided by mortgage broker, but lender is ultimately responsible
- 8. Block 1: Origination Charge Must reflect/contain ALL charges by ALL loan originators in the transaction •Origination fee/point •Mortgage Broker •Processing •Doc Prep •Commitment •Application •Wire •MERS Registration •Underwriting Delivery/Courier •Administration •Doc Review •Electronic •Miscellaneous Block 1 Loan Origination Fees
- 9. GFE – Page 2 Block 1: Origination Charge $6,000.00 Block 2 $3,500.00 < $3,500.00 > YSP $2,500.00
- 10. GFE – Page 2 Required Services
- 11. GFE – Page 2 Title Services Charges Old GFE vs New •Settlement Fee •Title Examination GFE•Abstract/Title Search •Doc Prep •Attorney Fee •Commitment Binder •Notary •Wire Fee •Lender Title Insurance •Endorsements •Courier/delivery •Copying •Electronic •Miscellaneous Title Services & Lenders Title Insurance
- 12. GFE – Page 2 Average Charge (If allowed by State) Zero Tolerance
- 13. GFE – Page 3 Understanding Which Charges Can Change at Settlement Using the Tradeoff Table Using the Shopping Court Is Your Loan Sold in the Future
- 14. Which Charges Can Increase?
- 15. RESPA/GFE Q&A • How are lender credits reflected on the GFE and HUD 1? • Is it required to disclose the “Transfer Tax”? • Is it required to reflect the “Owner Title Policy”? • If a borrower applies for a first and second mortgage before January 1, 2010 and the loan originator issues a GFE using the new form for the first mortgage, does the loan originator have to issue the second mortgage GFE on the new GFE form also? • What fees can a loan originator charge before issuing a GFE?
- 16. © 1990-2009 Credit Technologies, Inc. – All rights reserved.
- 17. Creating a Competitive Advantage © 1990-2009 Credit Technologies, Inc. – All rights reserved.
- 18. Creating a Competitive Advantage © 1990-2009 Credit Technologies, Inc. – All rights reserved.
- 19. Creating a Competitive Advantage © 1990-2009 Credit Technologies, Inc. – All rights reserved.
- 20. Creating a Competitive Advantage Thomas Conwell © 1990-2009 Credit Technologies, Inc. – All rights reserved.
- 21. Creating a Competitive Advantage Thomas Conwell President & Founder Credit Technologies, Inc. © 1990-2009 Credit Technologies, Inc. – All rights reserved.
- 22. Creating a Competitive Advantage Thomas Conwell President & Founder Credit Technologies, Inc. Director / V. President National Credit Reporting Association (NCRA) © 1990-2009 Credit Technologies, Inc. – All rights reserved.
- 23. FHA Appraisal Policy • ML 2009 – 28 Re-affirms Appraiser Independence – Effective January 1, 2010 – Provides guidelines on ordering appraisals for FHA- insured mortgages and reaffirms existing policy on FHA requirements regarding appraiser independence and geographic competence – Mortgage brokers and commission based lender staff are prohibited from ordering appraisals – FHA does not require the use of Appraisal Management Companies or other third party providers • However, does require lenders take responsibility to assure appraiser independence – While FHA's existing policies regarding appraiser independence are consistent with the Home Valuation Code of Conduct (HVCC) • FHA will adopt language from the Code to ensure full alignment of FHA and GSE standards
- 24. FHA Appraisal Policy – Does ML 2009 – 28 put brokers at a competitive disadvantage with direct lender retailers? – Are large retail lenders being held to the same standard? – What do you feel is the difference
- 25. Proposed FHA Broker/Mini-Eagle Approval • Proposed rule provision – Federal Register: November 30, 2009 (Volume 74, Number 228) – Subject to 30 day notice & comment period – Opportunity for industry to provide documented feedback – Interested persons may submit – Post comments electronically through the Federal eRulemaking Portal at http://www.regulations.gov. • Propose Lenders directly approve loan correspondents as approved participants in FHA programs • Mortgagees required to ensure loan correspondents meet applicable requirements
- 26. Proposed FHA Broker/Mini-Eagle Approval • FHA-approved mortgagee will: – Act as Sponsor as in the past – Case number must be ordered by lender – Sponsoring mortgagee must agree to • Assume responsibility for any loan correspondent that works with the mortgagee in the FHA insured loan • Assume liability for the FHA- insured loan underwritten and closed in the name of the FHA-approved mortgagee. – FHA proposes to increase net worth requirement for FHA-approved mortgagees for the purpose of ensuring that approved mortgagees are sufficiently capitalized • $250,000 to $1,000,000 net worth within 1st year • And $2,500.000 net worth with 3 years • Lender requirements to originate, underwrite or service FHA loans tightened: – Must demonstrate FHA loans originated in channels meet established agency quality standards
- 27. Proposed FHA Broker/Mini-Eagle Approval Q&A
- 28. • Conclusion –Roy DeLoach • Closing Remarks
Editor's Notes
- <CTINTRO SLIDE &#x2013; Creating a Competitive Advantage> Our Gold Sponsor for today&#x2019;s webinar is Credit Technologies and with us is Thomas Conwell. In addition to being President and Founder of Credit Technologies, Thomas serves as a Director and V. President of the National Credit Reporting Association and chairs the Technology Committee. Thomas is going to provide some innovative ways that Credit Technologies can help you cut costs while creating a competitive advantage enabling you to close more loans&#x2026;
- <CTINTRO SLIDE &#x2013; Creating a Competitive Advantage> Our Gold Sponsor for today&#x2019;s webinar is Credit Technologies and with us is Thomas Conwell. In addition to being President and Founder of Credit Technologies, Thomas serves as a Director and V. President of the National Credit Reporting Association and chairs the Technology Committee. Thomas is going to provide some innovative ways that Credit Technologies can help you cut costs while creating a competitive advantage enabling you to close more loans&#x2026;
- <CTINTRO SLIDE &#x2013; Creating a Competitive Advantage> Our Gold Sponsor for today&#x2019;s webinar is Credit Technologies and with us is Thomas Conwell. In addition to being President and Founder of Credit Technologies, Thomas serves as a Director and V. President of the National Credit Reporting Association and chairs the Technology Committee. Thomas is going to provide some innovative ways that Credit Technologies can help you cut costs while creating a competitive advantage enabling you to close more loans&#x2026;
- <CTINTRO SLIDE &#x2013; Creating a Competitive Advantage> Our Gold Sponsor for today&#x2019;s webinar is Credit Technologies and with us is Thomas Conwell. In addition to being President and Founder of Credit Technologies, Thomas serves as a Director and V. President of the National Credit Reporting Association and chairs the Technology Committee. Thomas is going to provide some innovative ways that Credit Technologies can help you cut costs while creating a competitive advantage enabling you to close more loans&#x2026;
- <CTINTRO SLIDE &#x2013; Creating a Competitive Advantage> Our Gold Sponsor for today&#x2019;s webinar is Credit Technologies and with us is Thomas Conwell. In addition to being President and Founder of Credit Technologies, Thomas serves as a Director and V. President of the National Credit Reporting Association and chairs the Technology Committee. Thomas is going to provide some innovative ways that Credit Technologies can help you cut costs while creating a competitive advantage enabling you to close more loans&#x2026;
- <CTINTRO SLIDE &#x2013; Creating a Competitive Advantage> Our Gold Sponsor for today&#x2019;s webinar is Credit Technologies and with us is Thomas Conwell. In addition to being President and Founder of Credit Technologies, Thomas serves as a Director and V. President of the National Credit Reporting Association and chairs the Technology Committee. Thomas is going to provide some innovative ways that Credit Technologies can help you cut costs while creating a competitive advantage enabling you to close more loans&#x2026;