What’s with All the HUD Emails?
April 10, 2012 by Karen Deis · Leave a Comment
What’s With All the HUD Emails?
Karen Deis, Publisher, www.MortgageCurrentcy.com
I don’t know what’s happening at FHA lately, but they seem to be back-pedaling A LOT lately, and worse yet, modifying some of the mortgagee letters by sending an “email” instead of a “formal notice.”
Here are a couple of things HUD has updated that will affect your origination business right now.
First, FHA has delayed the $1,000 collection, disputed account, identity theft rule (ML 2012-3) from last month until July 1st (which means Case Numbers issued after that July 1st date—not the loan app date). Go through your files and search for the deals that you killed because of this rule—and get them closed. What we expect is a modified version of this rule down the road. So stay tuned.
Another email from HUD clarified that reducing the term of a mortgage on a streamline refi will also meet the net tangible benefit test. The big deal here is that previously it did not apply to streamlines, and now it does.
So, in yet another email, HUD gave step-by-step details on how to cancel case numbers on streamline refis and special instructions for streamlines that require an appraisal. HUD has updated the streamline refi worksheet that you should have started to use on April 6, and an updated FHA TOTAL Scorecard Guide came out on March 15.
Okay, enough about FHA and on to HARP 2.0. Fannie just updated their FAQ on March 15 and updated five of the questions. The biggie here is the addition of question 59, where Fannie says you can add a non-occupant borrower to the refi plus and DU refi plus loans. What are some of the reasons you would want to do this? One reason would be that on a manually underwritten loan, where the payment increases more than 20%, you might need additional income to qualify. Another reason would be to add a child, spouse, brother, or sister who has limited credit to help them establish a mortgage credit history.
The other questions that were updated are: Can you refi if the loan is in a trial modification period?
Does a DU refi plus loan for a property located in a condo project, have to have a condo project review?
How do you use DU to find the standardized address if DU gives you a property mismatch warning?
Which types of transactions are eligible for a DU Refi Plus field work waiver? By knowing which types of loans qualify for waivers—and there are five types—you will not only save your borrowers the appraisal fee, but you’ll be their mortgage hero.
In this issue, you’ll find the very first ever Mortgage Talking Points for consumers: What You Need to Know about HARP: Home Affordable Refinance Program. (By the way, there are a couple of training classes on the http://www.mortgagecurrentcy.com.) This article makes it easy for consumers to understand these different topics: • Determining if your home qualifies • What you will need to apply • What is the “unknown” • What are the benefits. So how can you use it? Facebook post, blog about it, an email and snail mail.
In this issue, you’ll find a couple more Mortgage Talking Points for your real estate agents. The first one is called Manufactured Housing: Quick FHA Financing Facts. There are certain areas of the country where you’ll find manufactured housing, and FHA will finance these types of homes if they meet the 11 conditions. Real estate agents need to know this if they are listing this type of home.
The second is called Mortgage Credit Certifications: A Blast from the Past. Freddie updated how they will use the tax credit to help borrowers qualify for a higher loan amount. So if you are in an area where it’s offered, it’s another way to get the word out on how it works.
And to wrap up what you need to know this month, Freddie has renamed chapter 26 from “Cash and Other Equity” to “Borrower Funds.” The big change here is that cash-out proceeds from a refi cannot be used as cash reserves on Freddie loans.
So, why read Mortgage Currentcy?
Because getting a loan approved these days IS rocket science.
What the FTC means by “Commercial Communications” For Mortgage Lenders & Real Estate Agents
March 5, 2012 by Karen Deis · Leave a Comment
The Mortgage Acts & Practices Rules have been in effect since August 19, 2011—so it’s been around for a while buy not many people know about it…YET!
A large part of the rule explains “definitions” and what they mean. And the biggie here is the Fed’s definition of “commercial communications”—or the various ways real estate agents and loan officer communicate with potential home buyers.
Why would you care? Because the rule states that if you do place an ad that includes mortgage terms, you must keep a written or electronic version of it for 24 months, in case you are ever audited.
Here’s what is meant by the term “Commercial Communications”:
- Any written or oral statement
- Illustrations such as charts and graphs
- English or any other language
- Labels
- Packages
- Package inserts
- Radio
- Television
- Cable TV
- Brochures
- Newspaper
- Magazines
- Pamphlets
- Leaflets
- Circulars
- Mailers
- Book inserts
- Free standing inserts
- Letters
- Catalogue
- Billboards
- Posters
- Public transit cards
- Point of purchase displays
- Film
- Power point slides
- Audio transmitted over the telephone
- Telemarketing scripts
- On hold scripts
- Upsell scripts
- Training materials provided to telemarketing firms
- Infomercials
- Internet
- Cellular phones/networks
- Webpages
- Direct mail
- In-person sales presentation
- …anything else considered “commercial communication”
To further clarify record keeping,
- You must keep copies of all advertising if “materially different”.
- If the same/similar ad runs in different areas, only one copy required but a list of places where ad placed
- Description of mortgage products offered to consumers
- Including terms, conditions and any “unique names” given to the mortgage loan
- Details of affiliated products, i.e. life/disability insurance
Just a heads up—the two federal agencies assigned the task of enforcing these rules are Consumer Finance Protection Bureau and Federal Trade Commission.
Here’s the info if you’d like to read more about it (or you need help falling asleep) Federal Register, FTC 16 CRF Part 321 or subscribers can Download MortgageTalkingPoints(tm) to share with real estate agents www.MortgageCurrentcy.com
You think that you have it hard?
July 25, 2011 by Doug Adamczyk · 1 Comment
In life and in business we often come up against challenges and obstacles. No matter what we do, no matter how well prepared we are, the monster will rear its ugly head at the worst possible moment!
For those of us in the mortgage business, that ugliness appeared around the end of 2006. Since then, it has been a struggle to stay in business. And for those of us that have survived thus far, five years later, it remains a struggle.
How can you survive when faced with challenging obstacles? How can you overcome the demons that want to possess your life and your heart and stop you dead in your tracks?
Often times we think that success is because of luck. We think that if we are lucky enough, we will succeed through a challenge. But luck has nothing to do with it. It is even simpler than luck. How you handle your life, your business, and your family is based on one simple thing…
Your Attitude!
Your attitude is your first line of defense for any situation. And it is as simple as saying “self, what are you putting in your head?”
What you say and what you do (thoughts and actions) will have a greater affect on your outcome than how you do it. Your brain is a very powerful weapon in your arsenal of defense. It will process multiple situations at a time. Often, you do not even realize all of the thoughts that you are putting into your brain to process.
If you have lots of negativity and doubt, your brain will process that. And watch out! Because you will speak, sound, and reflect of negativity.
If you are positive, upbeat, focused, and driven, your brain will respond positively to those and your reflections will be positive.
So look in the mirror. How is your attitude? Will you be defeated today or will you win?
A colleague of ours, a friend and teacher of many in our industry, is facing the hardest challenge of his life. The meltdown in the industry was not able to take him down. Personal family relationships could not defeat him. And now he has to face another battle. A battle most of us have never had to face. Our friend, our colleague, Dustin Hughes, has been diagnosed with cancer. Specifically, brain cancer – stage 4 Glioblastoma Multiforme. This is an aggressive form of cancer with a low prognosis for survival.
You think that your attitude is bad? You think that you deserve a pity party? Dustin is 35 and has three young children.
Dustin is entitled to have an attitude! And let me tell you, he does! His attitude is on fire! His attitude is that he is going to kick his cancer in the ass and he is going to survive! Dustin is already a winner!
If you do not know Dustin or if you have not read his story, send a friend request to him – you need to read it! His attitude shines right through. This is someone that is entitled to be down. Yet, he has chosen to accept the challenge and defeat it!
Please join us in supporting Dustin, Tracy, and their children in this fight. Click here to join the Hughes’ Troop.
If you can, please support Dustin financially by clicking here. An online page has been set up to help Dustin and his family. Any amount, at any time, will be helpful.
And when you are faced with your challenge, remember, your positive attitude is what will get you through it! Keep up the fight. And keep up the POSITIVE attitude!
Origniators Giving Back–Mortgage Revolution New York
September 4, 2010 by derekegeberg · Leave a Comment
Despite the industry news, bad press and other negative talking points, there are many in the mortgage industry giving back.
Mortgage Revolution is about leaders teaching leaders. Mortgage originators who are in the field ever day helping clients training other originators what is working in today’s market.
Some of the past speakers have been
- Ric Edelman
- Dave Savage
- Tim Davis
- Jeremy Forcier
- Michael Smalley
- Tom Ward
- Brian Kludt
- Pat Kitano
- Khai McBride
- Sue Woodard
- Jason Berman
- Todd Raley
- Derek Egeberg
- Brian Larrabee
- Dan Green
- Scott Schang
Bob Rutledge- Susan Ross
- Mark Madsen
- David Lukas
- Larry Montani
- Chris Brown
- Heath Lehman
- Mark Green
- Ed Conarchy
- Mary Eyler
- David Kuiper
- Rene Rodriguez
- Roberto Monaco
- Brian Stevens
- Frank Garay
- Brad Nix
- Jim McMahan
- Mike Grace
- Stewart Hunter
Mortgage Revolution is committed to putting on the industry’s finest sharing and teaching experiences for originators while donating all proceeds to charity. The event in New York will be the final event of the year and should be the catalyst for any originator truly committed to their industry.
The organizers and founders listed below have been the inspiration for these events.
- Andrew Berman – Sponsor Chair
- Ginger Bell - CE Trainer
- Brian Larrabee – Finance
- Mark Madsen – Web Site
- Mark Green – Events
- David Childers – Event Manager
Media Partners:
If you are in the business and feel this is truly your career of choice, Mortgage Revolution is one event you can’t afford to miss.
If you are searching for a home, home loan or just simply reading this and are shopping, ask if YOUR Loan Officer is traveling to New York for the industries greatest teaching, learning and sharing experience. I look forward to seeing you in Tarrytown.
Drapes & Blinds Might Be a Seller Concession-Who Knew?
June 1, 2010 by Karen Deis · Leave a Comment
Okay, this is just a heads up–but check with your lender. Looks like Fannie is using this little-known rule as “buy-back” leverage.
So, I’ve seen a trend lately from several of the big lenders…that curtains, drapes, blinds are considered personal property. Who knew– but in reviewing Fannie’s Underwriting Guidelines, looks that they added something about it in 2007.
So, here’s the dealio…if it’s mentioned in the purchase agreement (and most PA’s already have the wording as part of the agreeement anyway) it’s supposed to be treated as personal property, the appraiser must make a comment and deduct the value of the window covering from the value of the home. If NOTHING is mentioned, they it’s assumed that they are NOT leaving the window treatments.
…I’m just saying it’s just another thing to watch out for!
Confessions of an A.D.D. Loan Officer Part II
October 12, 2009 by chris brown aka the implementer · 8 Comments
If you have not yet read Part I, it will make more sense if you do. Don’t worry there is a link back here at the end of it. =0)
Confessions of an A.D.D. Loan Officer Part II
Now for the real meat-and-potatoes – potatos[?] – po-tah-tos[?] of how to, not only function as a normal human being, but how to get things done and done well in your day-to-day mortgage practice. Here it is, are you ready?
Simplify… it is easy to focus on the wrong things. [How do you think I know that!?]
For Pete’s sake [who is Pete anyway?] we have just gotten to darn complicated. We chase this product, that system, and yet another solution when the tools for success are right next to us, in fact – they have been there all along. [It was coffee by the way – it just tasted like tea because you lost count as you were putting the scoops of grains in the maker.]
Here is a new idea. QUIT TRYING TO DO 1000 THINGS!
What most of us need is not a new idea, but to stick with one and really squeeze all the life out of it.
Have you ever done that? I mean really stuck with one idea and worked it and worked it and worked it!?
So a question that arises is this, “What ‘ONE IDEA’ should I focus on in this New World of real estate, Chris”. As you can imagine that answer is not a one-size-fits-all but finding that answer may be easier than you think.
The key for me is meeting up with like minded individuals that are still originating – yet are thriving in this marketplace. That is what the Mortgage Revolution 
is all about. It is about hitting the reset button, shaking off all the fluff that we have been fed over the past few years and getting real.
It is time to see how some people are simply ‘kickin it’ in this business and finding out how to apply in your marketplace. Take inventory. Analyze where your business is. For me an event like this is not about finding that next “shiny object” – if it is for you… stay home. It should be just the opposite… discovering which shiny object you already have that is the one to squeeze the life out of.
You have made it this far through the toughest market that most have seen, congratulations. You are part of the top 30% simply by attrition. To make it to – or stay in the – Top 10% of those remaining won’t be as easy. The cream of the crop are all that are left, so picking up your game is a must.
Trying to do it alone is foolhardy – network with those that are making it and the whole game gets easier. Not only is it the best way for most people, but it is the only way for the typical A.D.D. LO to remain successful in the new world of mortgage origination.
As my friend Mark Madsen says, “Just keeping it real”.
Chris the Implementer – The Home of Orlando FHA Loans
Confessions of an A.D.D. Loan Officer Part I
October 6, 2009 by chris brown aka the implementer · 10 Comments
“How Many A.D.D. kids does it take to screw in a light bulb?
…wanna go ride a bike?
If you don’t have days like this – pleassseeee skip the rest of this post series – it’s not for you. Not only will it confuse the living daylights out of you, but you will wonder how such people could even function outside of a padded room.
For the rest of you – “hey guys… this way…” welcome to the:
Confessions of an A.D.D. LO
Part I
Not sure if this is you? Take this simple test to find out if you are an A.D.D. LO.
Have you ever;
- Forgotten if you have put the Splenda in your coffee or not yet – wait this tastes like tea…
- Walked into the Operations Manager’s office… and forgot why you left yours.
- Picked up the phone, dialed, hear ringing – and can’t remember who you are calling.
- Bought a new system to “fix” your business – then realize you already own that system when you got back home.
- Gotten half way through a closing and realized… “this is not my closing.”
Ok, so the last one is a little extreme, but if you said yes to any of the above – especially the last one, then you just might be an A.D.D. LO.
Admitting your affliction is not only a scary step – it is a freeing one as well. Go ahead, say it.
“I am an A.D.D. LO.” – “I am an A.D.D. LO.” – “I am an A.D.D. LO.”
See? Now doesn’t that feel better? [Wait, what was I talking about again?] Oh, right… admitting you get distracted by shiny-objects.
Knowing is half the battle.
Part II will cover the real meat-and-potatoes – potatos[?] – po-tah-tos[?] of how to, not only function as a normal human being, but how to get things done and done well in your day-to-day mortgage practice.
Go to Part II [without passing go]
Chris the Implementer
Free Mortgage Marketing Resources
July 20, 2009 by chad weber · 5 Comments
If you take a moment to search through the archives of Lenderama, you’ll find several posts addressing the use of graphics on your blogs, websites, etc. While a well placed image can certainly help boost your conversions as well as the readability of the page, there’s a right way, and a wrong way to go about finding compelling imagery for your site.
Many loan officers will grab any picture they see on the web and place it on their website. While this may seem to be the easiest way to dress your site up, it is often the illegal way as well. Just as you’d never take a photo from someone else and hang it on your wall, web imagery is often protected by copyright, licensing laws, etc – unless otherwise noted.
So what’s a budding web mortgage marketer to do when it comes time to dress up a blog post or page? Here are some free resources for you:
http://www.freedigitalphotos.net
Each of the above sites allows you to browse through tens, and even hundreds of thousands of images to find something that will fit your site or blog. (Yep, the image I posted came from one of the above sites)
Bookmark or save links to the sites above and use them as needed. Won’t cost you a dime! Make it a great week!
Chad Weber