Comments on: TILA-MDIA

By: Elisa Wu

Elisa Wu — Mon, 01 Mar 2010 01:19:50 +0000

The protection for the consumer from goverment is welcome, of couse, the time consumed would be a function of direct relationship with it. Nothing is perfect.

By: Daniel Mulvehill

Daniel Mulvehill — Fri, 26 Feb 2010 22:10:13 +0000

Professionally Law Makers are making it more diffcult to abide by the law or the knowledge therein.We are becomming a law abiding suit happy society. There is always going to be change fro learning something, but to empty the 25 cart of lendign practices and implement a new set of rules will always have diffrent interpertatiions, and it is hurting the client for its harder to obtaina loan and the 5 big banks aren’t lending and if they sense an error it easy tosay, REDISCLOSE now your itnto 7 days and the rates are subject to chang, here’s a answer, let the redisclosue occure in the funding table and thee shouldn’t be any LEGAL BAIT SWITH with the sensative tollerances now dictated to us you will have to pay if your trying to gouge the customer.A a computor is a computor its only as good as the information imput so if the data is off by .10 guess what there’s go the program redisclose. And I laugh about the Mortgage Broker Sec 226.36A YEs we are independent and the lenders acknowledge this they are now trying to make us look like the bad guys when in fact 60% business we complete to there guidelines etc

By: Kimberly Petersn

Kimberly Petersn — Thu, 31 Dec 2009 19:08:26 +0000

The government is trying to protect the consumer, this is great but it a bit extreme. It is taking forever to complete a loan now and with all the constant changes in the rules and regulations it is time consuming to figure out if all the i’s are dotted and t’s crossed. It has affected my clients alot, It is very difficult now to get someone approved unless they are PERFECT, I would like to see some loosening up on the underwriting.

By: Karen Tuff

Karen Tuff — Thu, 31 Dec 2009 05:38:41 +0000

Tightening definitions and regulations. It makes sense the swing towards protecting the consumer was going to go to the extreme. My only concern while it levels off is I am finding it nearly impossible to get loans closed in a timely way in even the best cases. I have always taken compliance and full disclosure very seriously for the last ten years but find the process to be so cumbersome now, I feel my hourly wage if I was to factor it that way, is half of what it was only a year ago. That, and the consumers I would be able to help in the past cannot even get into the game anymore due to the variety of tests they need to pass to qualify – let alone jumbo/portfolio loans which cancels out high priced cities like my own. I worry we have not seen the end of the decline in high priced markets, who can even afford to buy/ let alone qualify?

By: Pauline Martin Ferber

Pauline Martin Ferber — Thu, 31 Dec 2009 01:08:34 +0000

The rules and regulations are for ful disclosure and uniformity in the way business is handled. It is intended to protect the customer as well as make sure that the lenders are doing business in a manner consistent with all the practices and guidelines laid out by the government. It has however made time for underwriters processing loans a lot longer and underwriters are calling for more and more documentation.

By: Harold Burton

Harold Burton — Thu, 31 Dec 2009 00:59:31 +0000

Nothing more than modification of existing rules. There certainly is no more grey area. We all shall be working from inside the lines.

No more bait and switch tactics. The consumer is now a well inform buyer. Unlike in the past almost anything went. All those who don’t like to pay attention to detail will have problems. There are still some that think these rules don’t apply to them.

Many of thse rules have been place but there was little or no enforcement. Qualified buyers and qualified loans professionals are the attire of the day.

Did I hear some one say? Full and accurate disclosure.(-:

By: Chris Yanke

Chris Yanke — Wed, 30 Dec 2009 23:08:24 +0000

The Government has handed down these rules because of the results of the last 4 years. Not to mention there was no precedent beforehand that could alleviate this. Now with the language in place there is a precedent to enforce, or mandate from.

I have only seen positive results from this now that consumers have a conversation piece to test me on. Most of the time I haven’t had a change in who I deal with since my focus was on full documentation loans, or FHA loans. In all it makes for a more educated borrower and Loan Officer.

Underwriting guidelines are definitely getting tougher but for the better. We don’t need another large wave of foreclosures and bad loans hurting the economy. At times there can be an absence of common sense but this isn’t always the case.

By: Kelly Fiscus

Kelly Fiscus — Wed, 30 Dec 2009 22:56:26 +0000

I think I need to do a much better job in proof reading my answers! I also think that it does a great job at defining and laying out the requirements for disclosing as well as advertising. My thought is how is it going to be enforced? Especially if the GFE is mailed (snail mail) the consumer is considered to have received it?!

By: Chris Yanke

Chris Yanke — Wed, 30 Dec 2009 20:29:23 +0000

This does a good job of laying out requirements for advertising and disclosing. It would only seem as if ENFORCING this will be something that will have to lend itself to the FERA 10 year statute because of the labor intensive requirements for auditing. I am hoping that technology will find a way to automate some of these laws into our work flow process.

By: Kelly Fiscus

Kelly Fiscus — Wed, 30 Dec 2009 19:39:16 +0000

Why did the federal governemnt hand down new rules??? I think someone said it earily, it like closing the barn door AFTER the animals have left. I think the government is trying to protect the consumer as well as themselve. The problem is no matter how many rules you have someone will find a way to break them. I think the entire loan process is becoming more difficult and with the number of disclosures I think the consumer is often confused. High priced Loan I think it is about the same

By: Todd Morgan

Todd Morgan — Wed, 30 Dec 2009 16:46:15 +0000

There would have been a lot less fallout if these rules had been in effect years ago. It just makes good sense to protect the borrower from being misled. Most of the people who were doing business in a way these new regulations are seeking to prevent are no longer doing business because they can’t make their money the dishonest way anymore. All in all, this is pretty good legislation. It certainly prevents a client coming back after the fact and claiming any malfeasance on the brokers part. (A common and annoying refrain from an endless stream of people in the media when the subprime mortgage crisis broke – isn’t that what the rescission is for? What about signing docs at escrow?) It will make for more costly loans that have to be extended or have terms changed near the end of loan process if any changes prove necessary in the last 7 days before docs are drawn since another 7 days are required. We all know that never happens.

By: James Haechler

James Haechler — Wed, 30 Dec 2009 08:11:59 +0000

I feel the Federal Government is handing down all these new rules and laws so that everyone is playing under the same rules and laws and protecting consumer. The Federal Government didn’t do anything for years until after this train wreck hit. Right now its slowing everything down from underwriting to getting the loan processed. Eventually it will all level out and things will flow smoothly.

By: Arash Fiuzi

Arash Fiuzi — Wed, 30 Dec 2009 06:55:14 +0000

HUD is issuing these rules to legislate certain risk practices, align regulations regarding appraisals with HVCC and generally prohibit risky or coercive and predatory lending practices. The limitations on higher priced loans are to make sure any “sub prime” loans have certain risk evaluation criteria that ensure loans are given to people that can repay them based on credit income etc. Problem is, the sub prime market is no longer in exitence. The redisclosure requirment and the prohibition of taking fees from consumers is good because most people collected fees up front which made consumers less likey to shop even though those funds had to be used for 3rd party reports.

It has not impacted my clients yet but I can tell you it inevitably will. I closed a purchase loan in 5 days once becuase another lender could not preform. Now, I will have to wait 7 days. Not sure why the 7 day period is for..possibly directed at consumer finance companies. I am not sure this part of the rule is beneficial at all other than creating two recission calcuations.

Underwriing guidelines are getting tougher but I think we have reached the bottom with the new version of DU that went into effect on Dec 12th. Most other lenders have stabilized their ltv’s and loan amounts from what I can tell.

By: Jason Brock

Jason Brock — Tue, 29 Dec 2009 23:45:21 +0000

TILA-MDIA:
The Feds are trying to implement protection for the consumer. The problem we are facing now in the industry is not that the consumer is not protected but that there is so much protection most cannot get the loans from the banks or if they can it take forever! The new rules are a little over the top. They have slowed down my transactions thus effected me in a negative way. They were written by politicians who are trying to impress the American consumer by slapping the hands of us horrible Lenders but in turn are hurting their constituents. In regard to high priced loans or all loans: Underwriting right now is horrible. It is so hard for my UWs who have to jump through so many hoops.

By: Jerrod Goode

Jerrod Goode — Mon, 28 Dec 2009 06:45:20 +0000

The government will not be able to pass any laws that will make everyone happy. I will rather focus on what the laws are and try my best to avoid breaking them. Guidelines are indeed tougher now, and some borrowers will find it very difficult to obtain financing. I think as time passes and common sense underwritting creeps back in, we will all be in a better situation in the future.

By: yvette Hobzek

yvette Hobzek — Tue, 22 Dec 2009 07:12:31 +0000

The federal government is just rewritting rules that they already had in place that some did not follow. they are so repeatative that it gets confusing even for some. In RESPA they want the broker to send out disclosures and not the lenders, in TILA they are requiring both to send out disclosures, instead of redisclosing with just 3 days they now are requiring 7 days, but the consumer can have an emergency and waive their 3 day???? How many LO’s are going to creat an emergency to waive the 3 days. I have already seen some try and have the borrowers wiave that they have the appraisal 3 days in advance. The law makers have to make sure they are doing something for thier hard earned money. I would not say this has a negative impact, most borrowers call and say I received something from this lender or escrow, I did not open it. Do I need to sign it and send it back? If they are not required to be in the package dated prior to the lender even accepting the loan package from the broker what good is it going to do. The consumer still relys on what they are told by their LO’s, not sure how the law is going to help other than they will have the information and it will be up to them if they do not read it. Also, how is the government going to police if you have sent it out in three days if there is no return receipt with signature required for each borrower?
Underwriting guidelines certainly have been a lot tougher over the last year. All of their requirements for submitting a loan have gotten tougher. I think if you know what they want going into it and putting together a complete file with all disclosures signed and dated and all income asset documentation along with title, etc once it gets to underwriting you should not have that many conditions in order for your loan to close on time and the borrower will not know that there is any difference in the process.

By: Jan Mundt (Henriksen)

Jan Mundt (Henriksen) — Thu, 17 Dec 2009 05:30:02 +0000

The TILA/MDIA rule is a little much; however, in the legal world with our “suit happy” sociaty, the rules were going to change. Failure to disclose the specific loan program is huge, which just opens up further investigations. All the required lending disclosures in the hands of inexperienced loan originators; I rest my case! Worst case; we can no longer close a loan in one day. Best case; A well disclosed consumer and once again, we’re covering out butts.

By: Launce Macomber

Launce Macomber — Mon, 14 Dec 2009 00:04:34 +0000

Once again, the government is locking the barn door after the horse has been stolen. I see no evidence that our industry was given an opportunity to at least opine on the difficulties and perhaps offer alternative solutions to the problems and violations which occured before the amended rules. Too many new rules imposed too quickly so the politicos can say “Look what we did for you” The new rules will eventually work but at what cost? and could the process have been more smooth working to benefit all?

By: Ken Ritter

Ken Ritter — Thu, 10 Dec 2009 23:08:58 +0000

I believe that the federal government has handed down these rules to protect the consumer as well as themselves. With everything going on I think that the federal government must react and then only way to react is to make more rules. This in effect is what it going on.
Since these rules have gone into effect I wouldn’t say that they have had a negative or positive effect on my clients but I would say that it has definitely slowed down the process with all the new requirements. If the time line is taken into consideration, then it could be seen as a negative for my client.
The requirements have gotten tougher for all borrowers even if they have excellent credit and 20% down.

By: Richard Martin

Richard Martin — Fri, 04 Dec 2009 05:30:51 +0000

It seems as if there is nothing left for the Law Makers to do but make more and more rules more ammendments more definitions as if rules made by people not activly involved in the Industry can be easily integrated into a faulty system will automaticaly change every thing and make it right. But in reality they are clogging up an already clogged system. To my mind Simplification and Clarity are what is required in an Industry that is so basic and essential to the overall economy. Some day they will have to get it right or else we will be headed for another Economic Adjustment that we cannot ever afford.

By: Teresa Gallaher

Teresa Gallaher — Wed, 02 Dec 2009 19:09:06 +0000

They are trying to protect the consumer from a bait and switch sort of process. This is to make sure they are aware of any and all changes made to their transaction from what they originally expected or signed on for. They are also trying to clearly define who is covered by these regulations so there is no confusion.
The biggest problem with these regulations is that it has slowed the process of getting through the loan process. We now have minimum days to wait before appraisal can be ordered. We have to wait for the lender to send disclosures. This has also created a whole new level of time keeping for the lo and processors to ensure these timelines are met. There are also so many times throughout the process that a fee could change that we are having to send out many updated GFE’s to the client. They are asking why am I getting another one of these? We need to have a system created maybe through point that tracks these things.

The rules have gotten tougher and underwriting guidelines have tightened up. It is harder for the average american to get financing, even if they have a down payment and good income.

By: Mila Usher

Mila Usher — Thu, 26 Nov 2009 00:54:15 +0000

My opinion is that the federal government is trying to cover their butts wherever possible. The likely hood of these rules being broke are good in this industry, or at least a loop hole found. Too many people are out for #1 (themselves), we’ve seen this time and time again.If the government keeps throwing around new rules then eventually they should be able to close all loop holes.
I have also noticed that underwriting guidelines have gotten tougher, which is unfortunate for the “average joe”. I have noticed that he is the one getting the short end of the stick now.