Hi Students;

Day 1 follow up:

Here’s the link to the Neighborhood Watch website where you can check on the status of a company’s FHA delinquencies. Follow the link that says “Early Warnings.”

There was a question about the use of the word “firm” in the WA State law Escrow Registration Act. Here’s the link to the definitions section.  See number (7). I can only infer that the meaning has to do with a company’s “doing business as” name, which would be the name of their “firm.”

Here is a link to the NMLS website where they have information on the criminal background checks.

And there were three questions about having to re-take the state exam if you previously took the exam but let your license lapse. I have put an email in to DFI to get an official answer on that one, since the question kept coming up.

and finally, regarding the requirement to disclose the owner’s title insurance policy charge on your GFE, this is from Page 12 of the new FAQ PDF from HUD:

Q: Are charges to the seller listed on the GFE?
A: RESPA requires that only the borrower receive a GFE. The GFE is defined as an estimate of settlement charges a borrower is likely to incur in connection with the settlement. Charges that typically would not be charged to the borrower, but would be charged to another party—such as the seller—do not have to be included on the GFE. If the borrower typically would incur charges for title services and lender’s and owner’s title insurance, the GFE instructions make it clear that those charges are required to be listed regardless of whether, for example, the contract requires the seller to pay for the service. If there is a question about whether the borrower or seller is to pay for a particular settlement service, the charge for that service should be disclosed on the GFE.

Emphasis mine.

Day 2 follow up:

Question from Cathy: Are LOs required to give consumers a list of providers? 
Answer: Found on page 12 of the recent updated HUD FAQs for the new GFE:

GFE – Written list of providers
1) Q: When do loan originators have to provide the borrower with a written list of identified providers?
A: When a loan originator permits a borrower to shop for third-party settlement services, the loan originator must provide the borrower with a written list of settlement services providers at the time of the GFE, on a separate sheet of paper.
2) Q: Does the borrower have to select a settlement service provider from the loan originator‘s written list of settlement service providers?
A: No. If the loan originator permits a borrower to shop for a settlement service provider, the borrower may choose a qualified provider that is not on the originator‘s written list.

You can download the HUD FAQ PDF here.  Ooo, you can also take a look at the new HUD “Settlement Costs Booklet” from this same page. Remember new/newer LOs have a homework assignment to read the Settlement Costs booklet but I will bet that Robert, Ed, Matt, Jenni, Luke, Cathy and Brad will also download and read this. Why? Because these guys are highly attentive to detail.  Follow their lead and read the booklet that you’ll be giving to your customers.  You don’t have to read it tonight, but if I were you, I’d skim-read this before taking the exam.

Next up: What’s deductible? Here’s a link to the IRS website with the answer.  See the link that says “points.” You may have to scroll down a bit after clicking.  Whoa. That answer was so complex, there’s no way (unless my name is Brad) that I’d tackle trying to explain that one.  But maybe I’m just tired.  What would you do?

There was a question: “Is there a difference between simple referral and a referral?”  I see nothing deliniating a difference between the two in the definitions section of the statute.

Joe wanted more reading material (because we know Joe is a big fan of reading) about defaults.  Here are some great articles I found:

Option ARM Recast/Reset Update but what about prime loans? Here you go:

We should also check on the re-default rate of loan mods and the HAMP program. 

Here’s the latest report from TransUnion showing delinquencies over 10%.

Jumbos aren’t doing all that well either.

Dare we check FHA? WTF? Does this report say what I think it says about FHA deliquencies? Quoting CR, “This will not end well.”

Get some sleep and I’ll see you at 9AM!

Day 3 follow up

There was a request for me to send a list of all the Class B Felonies in WA State.  Here you go.

Here is the link to the NMLS Resource Page where you may download and review the SAFE Mortgage Licensing Act.

and Ed had a question regarding the words “non-institutional investor” that appear on page 4 of your Day 3, State Law course packet. Those words are not listed in the defintions section of that RCW. Without knowing DFI’s intent, we are left to take a lay person’s guess that it may mean an individual investor that’s not tied to corporation.  For a precise answer Ed, I suggest contacting DFI direct.

Thank you for the memorable 3 days!