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SolarMTG
265 Posts |
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darkstar
15821 Posts |
 Posted - 07/13/2008 : 2:34:28 PM
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>>>And it would prohibit brokers from coercing appraisers into misstating a home's value.
See appraisers, before it was legal to coerce you, nanneenaneepoopoo!!!! |
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SolarMTG
265 Posts |
Posted - 07/13/2008 : 3:08:55 PM
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| Any thoughts on what to expect Monday? Isn't this suppose to be the final change to the GFE? The deciding factor if broker's can make ysp? Is tomorrow our Judgment Day? |
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gzajdel23
138 Posts |
Posted - 07/13/2008 : 3:17:49 PM
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| No it was LONG time ago already being discussed.Don't you remember HR 3915 . Common guys. Everyone knew that this thing will finally be realesed.It is only Subrime and I hope that the bill will include a licensing obligation for BANKERS like it was in a raw bill. |
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AGreene00
2734 Posts |
Posted - 07/13/2008 : 3:18:05 PM
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| Everything I've read talks about stated income and PPP's. Haven't seen much on YSP. |
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gzajdel23
138 Posts |
Posted - 07/13/2008 : 3:19:06 PM
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| No it was LONG time ago already being discussed.Don't you remember HR 3915 . Common guys. Everyone knew that this thing will finally be realesed.It is only Subrime and I hope that the bill will include a licensing obligation for BANKERS like it was in a raw bill. Stated income will be still available !!!!!!!!!!!!!! Common. That's only for subprime. READ the HR 3915!!!!!!!!!!!!!!! |
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cspatmon
1115 Posts |
Posted - 07/13/2008 : 3:19:30 PM
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| Wait a minute! I haven't read all the details but.......What if the Appraiser made a mistake. Unfortunately, got called doing so.... Appraiser take the low road and blame it on the Broker, that they were pressured and coerced. Where's the proof? |
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SolarMTG
265 Posts |
Posted - 07/13/2008 : 3:37:56 PM
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quote:
Originally posted by gzajdel23
No it was LONG time ago already being discussed.Don't you remember HR 3915 . Common guys. Everyone knew that this thing will finally be realesed.It is only Subrime and I hope that the bill will include a licensing obligation for BANKERS like it was in a raw bill.
HR3915 was a proposed Bill in the House of Representatives. This is coming directly from the Fed. There was no Bill being voted on. The Fed is making the rulings on their own, without the House or Senate voting. This is not the same as HR3915. |
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CoralSnake
10291 Posts |
Posted - 07/13/2008 : 3:52:55 PM
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quote:
Originally posted by darkstar
>>>And it would prohibit brokers from coercing appraisers into misstating a home's value.
See appraisers, before it was legal to coerce you, nanneenaneepoopoo!!!!
LOL!! |
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ugaagent
301 Posts |
Posted - 07/13/2008 : 4:00:05 PM
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| If anyone happened to notice that this article talks a lot about making subprime more strict. A lot of posts on here have said that subprime is not going to come back ever. If that's the case then why are they worried about the guidelines on subprime? |
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johnnyboy38109
2516 Posts |
Posted - 07/13/2008 : 4:02:46 PM
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quote:
Originally posted by darkstar
>>>And it would prohibit brokers from coercing appraisers into misstating a home's value.
See appraisers, before it was legal to coerce you, nanneenaneepoopoo!!!!
When is there going to a law passed making it illegal to inflate values even if the LO pressures you to? |
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AGreene00
2734 Posts |
Posted - 07/14/2008 : 07:56:38 AM
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| Does anyone know when these are being released today? |
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ClearwaterFN
76 Posts |
Posted - 07/14/2008 : 08:32:32 AM
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quote:
Originally posted by AGreene00
Does anyone know when these are being released today?
The statement has been released, new rules won't take effect until oct 1 2009.. |
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SoCalRay
1146 Posts |
Posted - 07/14/2008 : 08:40:33 AM
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does anyone have the link for the release?
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broker949
206 Posts |
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TheBigGuy
380 Posts |
Posted - 07/14/2008 : 08:51:03 AM
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| Looks like a Big ho hum |
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arrakis
45 Posts |
Posted - 07/14/2008 : 09:42:24 AM
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quote:
Originally posted by TheBigGuy
Looks like a Big ho hum
Still Makes for a good incentive to become a broker and a bank. As long as the banks control congress the Brokers will be whipped until morale improves. |
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Captain Mortgage
1411 Posts |
Posted - 07/14/2008 : 10:16:25 AM
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From the article
Also, for all loans regardless of rate, the regulator would ban the practice of allowing banks to pay brokers for steering homeowners into higher-priced loans, unless that compensation was disclosed in advance. And it would prohibit brokers from coercing appraisers into misstating a home's value.
I still don't understand how this will help. EXAMPLE:
Broker A does about 200m volume per year with flagstar and gets sick volume bonus'. 6.00% at par or 6.50% pays 2% ysp
Broker B does a loan every 2 months (only referrals) gets pricing right off the rate sheet 6.5% is at par
So this way it seems that Broker A is getting screwed by offering the same interest rate of 6.5% because they do so much business. If we all went to the same bank with the same pricing I could see this working, but this is a competitive market and not all banks lend at the same interest rate
My $.02 |
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Agent_Mike
287 Posts |
Posted - 07/14/2008 : 10:47:27 AM
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How can people not be worried when the market is primarily purchase right now and some of the most popular product (at least in my area) are the FHA's and FHA's paired with DPA programs.
YSP is what's allowing us to help some borrowers minimize their up front costs so they can spend it on some furniture and remodeling. Taking YSP away will eliminate a sector of the purchase market that is driven by "low cost" or "low up front fees" and wouldn't help the over-flowing inventory in most places. |
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Agent_Mike
287 Posts |
Posted - 07/14/2008 : 10:48:13 AM
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How can people not be worried when the market is primarily purchase right now and some of the most popular product (at least in my area) are the FHA's and FHA's paired with DPA programs.
YSP is what's allowing us to help some borrowers minimize their up front costs so they can spend it on some furniture and remodeling. Taking YSP away will eliminate a sector of the purchase market that is driven by "low cost" or "low up front fees" and wouldn't help the over-flowing inventory in most places.
It just seems counter productive. |
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Agent_Mike
287 Posts |
Posted - 07/14/2008 : 10:53:12 AM
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How can people not be worried when the market is primarily purchase right now and some of the most popular product (at least in my area) are the FHA's and FHA's paired with DPA programs.
YSP is what's allowing us to help some borrowers minimize their up front costs so they can spend it on some furniture and remodeling. Taking YSP away will eliminate a sector of the purchase market that is driven by "low cost" or "low up front fees" and wouldn't help the over-flowing inventory in most places.
It just seems counter productive. |
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slants
4189 Posts |
Posted - 07/14/2008 : 11:01:51 AM
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quote:
Originally posted by Agent_Mike
How can people not be worried when the market is primarily purchase right now and some of the most popular product (at least in my area) are the FHA's and FHA's paired with DPA programs.
YSP is what's allowing us to help some borrowers minimize their up front costs so they can spend it on some furniture and remodeling. Taking YSP away will eliminate a sector of the purchase market that is driven by "low cost" or "low up front fees" and wouldn't help the over-flowing inventory in most places.
It just seems counter productive.
There was no mention of taking away YSP, but the upfront disclosure of it, which is already required.
quote:
Originally posted by Captain Mortgage
From the article
Also, for all loans regardless of rate, the regulator would ban the practice of allowing banks to pay brokers for steering homeowners into higher-priced loans, unless that compensation was disclosed in advance. And it would prohibit brokers from coercing appraisers into misstating a home's value.
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STIFFLER
106 Posts |
Posted - 07/14/2008 : 11:04:58 AM
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Read the Fed. Notice very carefully. You can charge YSP, you must DISCLOSE the amount YSP upfront to the borrower. I thought this was already a requirement in my 10+ years of doing loans…..does not ban YSP at all.
This notice also pretty much confirms, subprime is gone and the Fed. Wants to keep it that way. Look at those strict controls. Try selling a subprime piece of paper on the secondary market with those regulations……Looks like you either have an Agency Loan, or Government Loan…..outside of that the box is tight.
I will say from the release it looks like income waivers even on DU/LP loans will soon be a thing of the past…….
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slants
4189 Posts |
Posted - 07/14/2008 : 11:21:25 AM
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Press Release
Release Date: July 14, 2008
For immediate release
The Federal Reserve Board on Monday approved a final rule for home mortgage loans to better protect consumers and facilitate responsible lending. The rule prohibits unfair, abusive or deceptive home mortgage lending practices and restricts certain other mortgage practices. The final rule also establishes advertising standards and requires certain mortgage disclosures to be given to consumers earlier in the transaction.
The final rule, which amends Regulation Z (Truth in Lending) and was adopted under the Home Ownership and Equity Protection Act (HOEPA), largely follows a proposal released by the Board in December 2007, with enhancements that address ensuing public comments, consumer testing, and further analysis.
"The proposed final rules are intended to protect consumers from unfair or deceptive acts and practices in mortgage lending, while keeping credit available to qualified borrowers and supporting sustainable homeownership," said Federal Reserve Chairman Ben S. Bernanke. "Importantly, the new rules will apply to all mortgage lenders, not just those supervised and examined by the Federal Reserve. Besides offering broader protection for consumers, a uniform set of rules will level the playing field for lenders and increase competition in the mortgage market, to the ultimate benefit of borrowers," the Chairman said.
The final rule adds four key protections for a newly defined category of "higher-priced mortgage loans" secured by a consumer's principal dwelling. For loans in this category, these protections will:
Prohibit a lender from making a loan without regard to borrowers' ability to repay the loan from income and assets other than the home's value. A lender complies, in part, by assessing repayment ability based on the highest scheduled payment in the first seven years of the loan. To show that a lender violated this prohibition, a borrower does not need to demonstrate that it is part of a "pattern or practice."
Require creditors to verify the income and assets they rely upon to determine repayment ability.
Ban any prepayment penalty if the payment can change in the initial four years. For other higher-priced loans, a prepayment penalty period cannot last for more than two years. This rule is substantially more restrictive than originally proposed.
Require creditors to establish escrow accounts for property taxes and homeowner's insurance for all first-lien mortgage loans.
"These changes have made for better rules that will go far in protecting consumers from unfair practices and restoring confidence in our mortgage system," said Governor Randall S. Kroszner.
In addition to the rules governing higher-priced loans, the rules adopt the following protections for loans secured by a consumer's principal dwelling, regardless of whether the loan is higher-priced:
Creditors and mortgage brokers are prohibited from coercing a real estate appraiser to misstate a home's value.
Companies that service mortgage loans are prohibited from engaging in certain practices, such as pyramiding late fees. In addition, servicers are required to credit consumers' loan payments as of the date of receipt and provide a payoff statement within a reasonable time of request.
Creditors must provide a good faith estimate of the loan costs, including a schedule of payments, within three days after a consumer applies for any mortgage loan secured by a consumer's principal dwelling, such as a home improvement loan or a loan to refinance an existing loan. Currently, early cost estimates are only required for home-purchase loans. Consumers cannot be charged any fee until after they receive the early disclosures, except a reasonable fee for obtaining the consumer's credit history.
For all mortgages, the rule also sets additional advertising standards. Advertising rules now require additional information about rates, monthly payments, and other loan features. The final rule bans seven deceptive or misleading advertising practices, including representing that a rate or payment is "fixed" when it can change.
The rule's definition of "higher-priced mortgage loans" will capture virtually all loans in the subprime market, but generally exclude loans in the prime market. To provide an index, the Federal Reserve Board will publish the "average prime offer rate," based on a survey currently published by Freddie Mac. A loan is higher-priced if it is a first-lien mortgage and has an annual percentage rate that is 1.5 percentage points or more above this index, or 3.5 percentage points if it is a subordinate-lien mortgage. This definition overcomes certain technical problems with the original proposal, but the expected market coverage is similar.
One element of the original proposal has been withdrawn. The Federal Reserve Board had proposed for public comment certain requirements pertaining to so-called "yield-spread premiums." During the intervening period, the Board engaged in consumer testing that cast significant doubt on the effectiveness of the proposed rule. As part of its ongoing review of closed-end loan rules under Regulation Z, however, the Board will consider alternative approaches.
In finalizing the rule, the Board carefully considered information obtained from testimony, public hearings, consumer testing, and over 4,500 comment letters submitted during the comment period. "Listening carefully to the commenters, collecting and analyzing data, and undertaking consumer testing, has led to more effective and improved final rules," Governor Kroszner said.
The new rules take effect on October 1, 2009. The single exception is the escrow requirement, which will be phased in during 2010 to allow lenders to establish new systems as needed.
In a related move, the Board is publishing for public comment a proposal to revise the definition of "higher-priced mortgage loan" under Regulation C (Home Mortgage Disclosure), which requires lenders to report price information for such loans, to conform to the definition the Board is adopting under Regulation Z.
The Federal Register notices are attached.
Statement of Chairman Ben S. Bernanke
Statement of Governor Randall S. Kroszner
Highlights of Final Rule Amending Home Mortgage Provisions of Regulation Z (Truth in Lending)
Draft Federal Register Notice (1.2 MB PDF)
Open Board Meeting Materials
2008 Banking and Consumer Regulatory Policy |
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Agent_Mike
287 Posts |
Posted - 07/14/2008 : 11:36:14 AM
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Is this applying effective immediately? For example: if someone is in the process of getting a stated loan that they no longer can get stated loan??
Is there a date to start? |
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AGreene00
2734 Posts |
Posted - 07/14/2008 : 11:45:40 AM
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quote:
Originally posted by Agent_Mike
Is this applying effective immediately? For example: if someone is in the process of getting a stated loan that they no longer can get stated loan??
Is there a date to start?
I think I read something that said October 1st, 2009. I might be wrong. |
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