Author Page for mf
Jillayne Schlicke is the Executive Director of the National Association of Mortgage Fiduciaries and CEO of CE Forward, Inc.
Newest Scam: Assignment of Mortgage Payment System
I have received several emails from confused loan originators and Realtors wondering if this “Assignment of Mortgage Payment” system is real or just another scam. There will always be a get-rich-quick scheme and people willing to take your money to sell you a system. The people who are really making the money are the ones [...]
View PostTo the Students from the April 26th 8 Hr LO SAFE CE Class
Hi Everyone Here’s the follow up from yesterday’s CE class. There was a request to post the recent Ken Harney article on AMCs, a link to the NW Justice Project, and the website showing where homeowners can turn for free HUD-approved housing counseling. Here is another great article on the pain of unwinding mortgages held in [...]
View Post8 Hour SAFE Comprehensive Continuing Ed Course Plus 1 Hour WA State Law CE
8 Hr SAFE Comprehensive NMLS Approved Course Number 2146 1 Hr WA State Law CE NMLS Approved Course Number 2089 Course Description: 4 Hours Federal Law 2 Hours Ethics, Consumer Protection, Fraud, Fair Housing 2 Hours Non-Traditional Lending 1 Hour WA State Law In this course we will review the Federal Reserve Board’s rules on [...]
View PostTo the Students from the April 4, 2011 Prelicensing Class
Hi Everyone, Here are links to some of the topics we covered today. Here’s that great NPR radio segment called “The Giant Pool of Money.” More on Pay Option ARMs. Barry was right; Kant did live in the 1700s. Here’s the story about the Russian orphan who was sent back to the orphanage. Here’s more [...]
View PostFederal Reserve Board Rules on LO Compensation Prohibitions Aim to End Predatory Lending
Under the final Federal Reserve Board’s loan originator (LO) compensation rule, effective April 1, 2011, an LO may not receive compensation based on the interest rate or loan terms. This will prevent LOs from increasing their own compensation by raising the consumers’ rate. LOs can continue to receive compensation based on a percentage of the [...]
View PostSecondary Marketing Fraud Question from an Anon Caller
Question from an anonymous phone caller: “I work at retail bank. When rates were dropping, I asked my processor to lock several FHA loans. All the paperwork to lock was completed and sent to management. Management did not lock the loans, hoping to ride the wave down and earn extra yield for the bank….rates rose [...]
View PostTo the Students from the Jan 24/25th Exam Prep class
Hi Everyone, There were many different requests for reading material so here it goes: There was a request to read about the history of Fannie Mae. Someone asked for more reading material on the Red Flags Rules. The best source on that topic is the Federal Trade Commission’s website. Here’s some reading material on the [...]
View PostLoan Originator Says “I’m Entitled to Overage! How Will I Survive 2011?”
This is a good representation of the emails and blog comments I receive daily on the topic of loan originator compensation: Dear Jillayne, I read your article because I am trying to determine when the loan originator compensation limits will go into effect and what I’m going to do if this acutally happens. As an LO [...]
View PostWhy Some LOs are Not Passing the National LO Exam
The first time “pass” rate of the national loan originator exam has fallen to 69 percent. This is an indication that the test is not too easy. A high pass rate means an exam is too easy. A low pass rate means an exam is too hard. The numbers that tell a different story are [...]
View PostTo the Students from the Dec 21, 2010 Exam Prep Class
Hi Everyone, Here’s the follow up from today’s exam prep class. There was a question about penalties under Section 8 of RESPA: “Violations of Section 8′s anti-kickback, referral fees and unearned fees provisions of RESPA are subject to criminal and civil penalties. In a criminal case a person who violates Section 8 may be fined [...]
View PostTo the Students from the Dec 13, 2010 Exam Prep Class
Hi Everyone, Here’s the follow up from today’s class: There was a request for more reading info on “subprime lending.” Here’s the Interagency Memo on Subprime that will help w/those subprime-type test questions. I promised more information on appraisal independence rules that will take the place of HVCC. There was a question about how long [...]
View PostTo the Students from the Dec 6-7 SAFE Prelicensing and Exam Prep Class
Hi Everyone, Here are the links and articles we mentioned in class: Here’s that interview with Elizabeth Warren, the new head of the Consumer Financial Protection Bureau….watch the one where Jon wants to make out with her. There was some brief discussion about loan modifications. Here’s the new FTC rule on loan mods and short [...]
View PostLO Compensation Limits Coming in 2011!
In order to understand all the whining taking place by loan originators (LOs) about compensation limits under the Dodd Frank Wall Street Reform Act as well as the Federal Reserve Board that go into effect in 2011, it’s important to lay down some background for consumers. During the predatory lending days (which I like to fantasize [...]
View PostTo the Students from the Nov 16, 2010 Exam Prep Class
Hi Everyone, Here’s the follow up from today’s class. There was a request for more information on the Home Owner Equity Protection Act (HOEPA.) There was a request for a link to the RESPA website. There was a question about the RESPA required servicing transfer statement. There was a request for more information on RESPA’s [...]
View PostTo the Students from the October 7, 2010 LO Exam Prep Class
Hi Everyone, Thanks for a fun class today. Here are the follow up Q&As: Here’s more information to read on FHA basics …and VA basics for those that do not originate FHA/VA loans on a regular basis. Here’s a link to the three normative moral theories to help you get your ethics test questions correct. (What [...]
View PostTo the Exam Prep Students from the Sept 14, 2010 class at UoPhx Bellevue
Hi Loan Originator Exam Prep Students, Here’s the follow up from today’s class. There was a request for more information on HOEPA/Section 32 loans. For a brief overview of the loan features that would trigger HOEPA, see page 43 of the main course packet. You can also visit the FTC website and read to your [...]
View PostLoan Originator Liza Bautista Finally Arrested
Liza Bautista was a mortgage broker with a strong client base inside her Christian church in Tukwila. After successfully closing several prime loans for folk with A-paper credit, she targeted consumers who were turned down by lenders and created two sets of loan documents. She submitted the credit history and identity of her prime, A [...]
View Post905 Lenders Failed To Meet Requirements for Annual Recertification of HUD/FHA Approval
Today HUD released it’s Administrative Actions from the Mortgagee Review Board. Read the Federal Register PDF here. There were 905 lenders that failed to met requirements for HUD’s annual recertification for FHA approval. The Mortgagee Review Board voted to immediately withdraw FHA approval for a period of one year for each of the 905 lenders. “The Board took this action [...]
View PostTo the Students from the July 13-15, 2010 Prelicensing Class in Tacoma
Hi Everyone! Here’s the follow up from questions that were asked in class and more. There was a request to take a look at a sample Adverse Action form. Here’s one from the FDIC. There was a question regarding if a consumer loan company does not hold a mortgage broker license, does that company have to [...]
View PostDodd-Frank Wall St Reform Act Will Limit Loan Originator Compensation
The Merkley Amendment to the Wall Street Financial Reform legislation limits loan originator compensation to no more than 3 percent of the loan amount. If you want to debate the Merkley amendment, please visit this thread or this thread. From the Mortgage Banker’s Association, here is a summary of how loan originator compensation would be limited under [...]
View PostTo the Students from the June 7, 8, 9 2010 SAFE Prelicensing Class
Hi Everyone, Here’s the follow up from today’s class. Here’s the link to the Neighborhood Watch website where you too can check the FHA deliquency rate of your own firm. Here’s that great blog post by Seth Godin about deadlines. Here’s more about the excellent book Outliers by Malcome Gladwell. Here’s a link to the [...]
View PostTo the Students from the May 21, 2010 Exam Prep Course in Renton, WA
Hi Everyone, Here’s the follow up Q&As from today’s class. Although here HUD references that the Special Booklet regarding settlement costs should be provided for purchase money loans, here on this page (#27) HUD says the booklet is to be given out 3 days from the date of the application and doesn’t include or exclude [...]
View PostMerkley-Klobuchar Amendment Creates Level Playing Field
The Senate has passed an amendment to the Wall Street Reform bill that would ban loan originators from accepting compensation based on placing a consumer in a higher interest rate loan or a loan with less favorable terms. The amendment also requires lenders to underwrite loans to assure a homeowner’s ability to repay the loan. [...]
View PostWho is and Who is Not Passing the New Loan Originator Exam
I’ve had a chance to meet many loan originators during the past 5 months while teaching the required 20 Hour SAFE Comprehensive Pre-licensing and Exam Prep Course. Currently, loan originators in WA State who have not been previously licensed are going through the licensing and testing phase which includes the required 20 Hour Course, mandated [...]
View PostTo the Students from the 20 Hr SAFE Course in Oklahoma City
Hi Everyone, Here are the follow up Q&As from Day 1: There was a question about if LOs in Oklahoma are required to take a course on Oklahoma State law. On the right hand side of this link, click on “state specific edu” to view the PDF. No other courses are needed for OK LOs [...]
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