Hi Everyone,
Here’s the follow up Q&As from today
Here is the updated Credit Suisse chart.
There was a question as to whether or not a church can gift the funds for closing on an FHA loan. Here is a link to the HUD manual….
“An outright gift of the cash investment is acceptable if the donor is…
•the borrower’s relative
•the borrower’s employer or labor union
•a charitable organization
•a governmental agency or public entity that has a program providing home ownership assistance to
?low- and moderate-income families
?first-time homebuyers, or
?a close friend with a clearly defined and documented interest in the borrower.”
Overall 17% of FHA Loans are currently delinquent. That statistic is horrifying. This will not end well.
Here is the interactive map from the New York Times I mentioned. Looks like 30% of the loans originated in Yakima County were subprime.
and….check out the proposed HUD Rule that was just released today. Here’s the PDF. See page 3, number (8) “(8) Establishing a means by which residential mortgage loan originators would, to the greatest extent possible, be required to act in the best interests of the consumer;”
Didn’t I just say today that this is where we are headed? This moves LOs more on the path toward professionals with fiduciary duties owed to their clients and further away from a retail sales role. We should all carefully watch the debate/comments on this proposed rule.
UPDATE 1
Here’s a link to the FDIC website showing a description of pre-paid finance charges in paragraph 18 (B). I did not see the chart Brandon referred to in class. Brandon if it’s easy to get a hold of that link again, please post it in the comment box. Thank you!
Here is a link to the page where HUD posts updates to the FAQ document regarding all the new RESPA changes (including GFE FAQs). Ooooo, notice that HUD has also updated the “Settlement Costs” Booklet. At the bottom of this same page is a link to submit your comments to HUD. Now’s your chance to have your voice heard…..who will submit a comment from today’s class? Hmmm.
Here is a link to an article written by Brian Brady, a mortgage pro located in Calif and a fellow blogger. Brian’s article about the new GFE really jumped out at me. He says we can use the new GFE to gain clients. Give it a read.
See you in the morning!
I agree with you about moving towards a more professional acceptance of the fiduciary responsibility – it will make more $ and bring more prudence to the market. It is difficult to teach the sales staff to accept it and, frankly, few will probably ‘get it’. But it is true, none the less. Warehouse lenders are taking less fiduciary risk and more fiduciary responsibility…to make more $ and lose less! Owners of Cornerstone/Guild are then doing the same thing, then on into the branches…the sales guy is last guy in the trickle-down process before we transition to the consumer. Seems that we’re onto the correct path of training the correct guys/gals. The sales guys get it and we’ll have success.
*Realistically I don’t think it will happen very well though. You put $ on the line and you will see mankind’s inherent propensities every single time. But, we have to try, eh?
Thanks Jillayne!