Mortgage Lending
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CFPB Issues Proposal to Boost Lending in Rural, Underserved Areas
By Anna DeSimoneProposal Would Extend Provisions to Cover More Community Banks, Credit Unions, and Other CreditorsJanuary 29, 2015, the Consumer Financial Protection Bureau (CFPB) proposed several changes to its mortgage rules to facilitate responsible lending by small creditors, particularly in rural and underserved areas. If finalized, the proposal issued would increase the number of financial […]
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CFPB Finalizes Minor Changes to “Know Before You Owe” Mortgage Rules
By Anna DeSimone, PresidentChanges Address Mortgage Disclosures After Locking Interest Rates and Information on Construction Loans January 20, 2014, the Consumer Financial Protection Bureau (CFPB) finalized two minor modifications to the “Know Before You Owe” mortgage disclosure rules. The changes finalized January 20th which were proposed in October 2014, address when consumers will receive updated disclosures […]
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FHA Reduces Mortgage Insurance Premium as of January 26th
By Anna DeSimone, President January 9, 2015, HUD issued Mortgagee Letter 2015-01, “Reduction of Federal Housing Administration (FHA) annual Mortgage Insurance Premium (MIP) rates and Temporary Case Cancellation Authority.” The purpose of the mortgagee letter is to communicate revised annual MIP rates for FHA Title II forward mortgages and provide opportunity for cancellation of existing […]
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Fannie Mae Updates Underwriting Rules for Self-Employed Income
By Anna DeSimone, President December16, 2014, Fannie Mae issued Selling Guide Announcement SEL-2014-16. The Selling Guide has been updated to include changes to the following: Self-Employed Income Servicing Execution Tool Solar Panels Adjustments to Comparable Sales Flood Insurance for Nonresidential Detached Structures Cure Provision for Points and Fees Payment Calculation for Student Loans Nonstandard Repayment […]
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CFPB Issues Lender Guidance on Social Security Income Discrimination
by Anna DeSimone, President On November 18, 2014, the Consumer Financial Protection Bureau (CFPB) issued a bulletin to help lenders avoid imposing illegal burdens on consumers receiving disability income who apply for mortgages. The CFPB is reminding lenders that requiring unnecessary documentation from consumers who receive Social Security disability income may raise fair lending risk. […]
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CFPB Issues Lender Guidance on Disability Income Discrimination
by Anna DeSimone, President November 18, 2014, the Consumer Financial Protection Bureau (CFPB) issued a bulletin to help lenders avoid imposing illegal burdens on consumers receiving disability income who apply for mortgages. The CFPB is reminding lenders that requiring unnecessary documentation from consumers who receive Social Security disability income may raise fair lending risk. The […]
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Fannie Mae Updates Selling Guide
by Anna DeSimone, President On November 10, 2014 Fannie Mae issued SEL-2014-13. Outlined below is the complete announcement published by Fannie Mae. The Selling Guide has been updated to include changes to the following: • Project Standards Policy Updates • Fidelity/Crime and Liability Insurance for Certain Projects• Cash-Out Refinance Transactions – Maximum LTV, CLTV, and […]
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Fannie Mae Announces 97 Percent LTV Option for First Time Homebuyers
by Anna DeSimone, President December 8, 2014, Fannie Mae announced an option for qualified first-time homebuyers that will allow for a down payment as low as three percent. Building upon Fannie Mae’s successful lower down payment program offered through state Housing Finance Agencies, the 97 percent loan-to-value ratio (LTV) option will expand access to credit […]
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Freddie Mac Launches 3 Percent Down Payment Mortgages
by Anna DeSimone, President December 8, 2014, Freddie Mac launched Home Possible Advantage, an affordable conforming, conventional mortgage with a three percent down payment requirement designed to make responsible homeownership accessible to more first-time buyers and other qualified borrowers with limited down payment savings.In an effort to increase access to mortgage credit, this Single-Family Seller/Servicer […]
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Banking Agencies Issue Final QRM Risk Retention Final Rule
By Anna DeSimone, PresidentOctober 21, 2014, the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), Federal Housing Finance Agency (FHFA), Department of Housing and Urban Development (HUD), Office of the Comptroller of the Currency (OCC) and Securities and Exchange Commission (SEC) issued a final rule implementing the credit risk retention requirements of Section 15G of the […]