Real Estate Lending
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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 […]
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Financial Crimes Enforcement Network Publishes SAR Statistics
by: Anna DeSimone The Financial Crimes Enforcement Network (FINCEN) has published the first issue of SAR Stats, the successor publication to The SAR Activity Review: By the Numbers. This issue examines only data contained on the 1,369,529 unique FinCEN SARs (Form 111) with filing dates between March 1, 2012 and December 31, 2013. The adoption of the new unified SAR form and […]
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CFPB Issues Guidance Regarding Brokers Shifting to “Mini-Correspondent” Model Bureau Describes Evaluation of Mini-Correspondent Transactions
by: Anna DeSimone July 11, 2014, the Consumer Financial Protection Bureau (CFPB) issued guidance regarding mortgage brokers transitioning to a “mini-correspondent” lender model. The full content of the CFPB Press Release is provided: The CFPB is concerned that some mortgage brokers may be shifting to the mini-correspondent model under the mistaken belief that identifying themselves […]
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VA Clarifies Policy on Unallowable Origination Fees
by: Anna DeSimoneMay 7, 2014 the Department of Veterans Affairs issued CIRC. 26-14-13: Policy Clarification on Unallowable Fees. The purpose of the Circular is to clarify the Department of Veterans Affairs (VA) policy on the treatment of unallowable fees when lenders charge a loan origination fee that is less than one percent of the loan amount […]
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CFPB Proposes Minor Changes to Mortgage Rules
by: Anna DeSimoneProposal Would Assist Nonprofits and Allow for Refunds of Excess Points and Fees for Qualified Mortgages April 30, 2014 the Consumer Financial Protection Bureau (CFPB) proposed minor adjustments to its mortgage rules to ensure access to credit. The proposal includes two changes that would help certain nonprofit organizations continue to provide mortgage credit […]
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VA Increases Net Value Percentage
by: Sarah Lagattolla August 9, 2012 the Department of Veteran Affairs has announced that the percentage used to determine Net Value for properties will increase to 14.95%. The change will take place effective October 8, 2013. The Net Value is a key component in the formulas for determining whether a loan holder has the option […]
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Record Retention as Risk Management
by: Gregory R. Wilson, Esq.Proper record retention mitigates operational and compliance risk presented to any institution conducting business in this ever-changing regulatory environment. A well-established record retention program maintains records in an appropriate manner and for an appropriate duration thereby ensuring compliance, and providing for easier substantiation of compliance to auditors and examiners. In addition, […]