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New Good Faith Estimate Launches January 1, 2010

New Good Faith Estimate Launches January 1, 2010

Articles

Articles

Is HVCC On Its Way Out?

Generally speaking, mortgage folks are a pretty optimistic bunch, although “trust but verify” is an approach that many use in their business lives.

It turns out that the HVCC, which has good intentions but arguably poor implementation and ramifications, could be on its way out. The House Financial Services Committee has just passed an amendment to the Consumer Financial Protection Agency Act to phase it out, and allow all loan originators, licensed or registered in accordance with the SAFE Mortgage Licensing Act, to order appraisals directly. H.R. 3126 is the number of this bill. Although this is just a committee vote, and still has a long way to go, it is a “first step” The Consumer Financial Protection Agency Act is expected to be merged with a number of other regulatory reform bills before moving to the House floor for a vote, and any differences must be ironed out within the House and then with any Senate versions before going to the President.

FHA Adopts HVCC Requirements

Effective October 1, 2009, all FHA transactions must adhere to the appraisal guidelines outlined in the Home Valuation Code of Conduct that is currently in place for conventional financing.

This change in FHA guidelines has been enacted to limit the communication between loan officers and the appraisers assigned to case files. Loan Originators, Loan Officers, and Mortgage Loan Production Staff are not permitted to have any substantive contact with the appraiser and must direct all appraisal orders and communication through an Appraisal Management Company.

In addition, FHA appraisals are only valid for a period of 120-days from the date of the appraisal.

While the new FHA guideline does not specifically state that FHA has adopted HVCC guidelines, the new directive mirrors the requirements of HVCC.

REAL FINANCE SOLUTIONS Has a New Technology Partner!

ATTENTION ALL RFS CONSULTANTS

REAL FINANCE SOLUTIONS is excited to let you know that we are adding a new technology partner that will allow us to upgrade our technolgy and add additional revenue streams.

Please pass the word to everyone on your team that it is important to attend next week's Wednesday night RFS Consultant Training Webinar as we will be introducing our new partner and giving you an overview of our new system.

Just a hint of what is to come...are you ready for your own self replicating website? Be sure to tune in Wednesday night at 9:00 p.m. EST.!

New Conforming Mortgage Guidelines , Effective September 1, 2009

I am re-posting a recent blog from our partner Ed Hollinshead, GHMC; the author of The Wealth Catalyst Report.

The information contained in this blog is very important and essential for you and your clients to understand.

As a reminder, Fannie Mae is rolling out new lending guidelines Tuesday, September 1, 2009.

Starting next week, being approved for a home loan could be much more difficult.

The new rules mark the first major underwriting update since April of this year. The changes are mostly geared at fraud prevention.

Among the updates:

1. Stock options are no longer eligible for "reserves"


2. Relocating families can't use the "trailing" spouse's projected income for qualifying


3. "Tip" income must be documented and verified


4. Lenders must call employers to verify employment


5. Lenders must verify tax transcripts against IRS records

But there are other changes, too. As examples:

1. Owners and buyers of 2-unit homes are subject to new minimum FICOs with larger down payment and equity requirements.


2. Only 70% of stock, bond and mutual fund values may be used as reserves.


3. Only 60% of retirement assets may be used as reserves.

Consider this post to be your advance warning. Not everyone that qualifies for a mortgage on Monday, August 31 will qualify on Tuesday, September 1.

Therefore, if you have a pending need for a mortgage -- for either a purchase or a refinance -- it's probably best to talk with a lender as soon as possible. The deadline is based on the date of application -- not the date of closing.

Read the complete Fannie Mae announcement online.