Current Issues

Loan Modification Fees: Is it Justifiable for a Fiduciary to Charge for a Free Service?

Mortgage brokers and loan originators have become curious in learning about loan modifications. When I ask why, they say that they’re hearing there’s good money to be made doing loan mods.  What? Wait a second. I thought loan modifications were done by the lender for free.
More and more spam is popping up in my spam bin targeted at LOs and […]

3Sep2008 | mf | 3 comments | Continued

National Loan Originator Licensing coming….For ALL LOs

Tucked inside the Foreclosure Rescue Bill signed by the President yesterday is a provision calling for all loan originators to be licensed.  Bankers, brokers, consumer loan lenders, and credit unions; it doesn’t matter where you work.  If you’re an LO you must pass a competency test that will be developed by the National Conference of […]

31Jul2008 | mf | 0 comments | Continued

National Loan Originator Licensing

The “Federal Housing Finance and Regulatory Reform Act of 2008? is here.  Read the PDF if you’re feeling ambitious or here is the summary of the Dodd amendment. There’s a section inside Senator Dodd’s amendment that will give us national loan originator licensing. On page 34, the definition of a loan originator is as follows:
LOAN ORIGINATOR
A) IN GENERAL
The term […]

18Jun2008 | mf | 3 comments | Continued

Distressed Property Law

Mortgage Brokers and Loan Originators are exempt from becoming a “Distressed Home Consultant” when helping Distressed Homeowners refinance, unlike real estate agents who are subject to increased liability under the new Distressed Property Law.  My question is, SHOULD mortgage brokers and loan originators be exempt?  Please read this blog post and share your opinion.  I […]

18Jun2008 | mf | 2 comments | Continued

WA State Cracks Down on Title Insurance Company Inducements

Mortgage brokers, loan originators, and real estate agents have all been warned NOT to accept any inducements from title insurance companies.  Giving OR receiving an item of value in exchange for a referral of a federally related loan is already illegal under RESPA. However, HUD auditors do not routinely wander around inside real estate offices […]

18Jun2008 | mf | 1 comment | Continued

HUD Audits A Plus

Please read this brief blog article on the A+ Mortgage recent HUD Audit. 
Analyze the A Plus Mortgage response to HUD’s findings on pages 19-24, and HUD’s comments which follow. 
Question: You’ve just been hired to manage the loan originators at A Plus.  What’s your action plan?

18Jun2008 | mf | 2 comments | Continued

The Giant Pool of Money, by TAL and Chicago Public Radio

This NPR radio episode runs just under 54 minutes.  Click on the “download” button; it will take several minutes to download.   While you’re waiting, browse through some of our other articles on Ethics in Mortgage Lending! 
In order to better understand why we are currently facing massive mortgage loan defaults of epic proportions, this radio program takes us […]

13Jun2008 | mf | 2 comments | Continued

Update on the May 7 Mortgage Broker Commission Meeting and SB 6471

At the beginning of every law, there’s a preamble and then a set of definitions. Many of you know this: A mortgage broker is not a lender.
A lender is defined by federal law, RESPA, as an entity that makes loans.  This means the entity has the money to fund the loans.
Brokers, by definition do not […]

8May2008 | mf | 4 comments | Continued

WA State Legislative Changes: SHB 2770, SB 6471, SB 6381

The Washington State Legislature has passed three new laws that will go into effect June 12, 2008. 
SHB 2770
Governor Gregoire’s legislation implementing the recommendations of the Homeownership Task Force. This legislation impacts Banks, Credit Unions, the Consumer Loan Act (CLA), and the MBPA. The bill addresses prepayment penalties, negative amortization loans, the federal guidance on nontraditional […]

1May2008 | mf | 6 comments | Continued