Finally, A Govt Agency That Wants to Hear From You!

Looks like the CPFB has been working on hard on creating new loan disclosure forms and guess what?

They want to hear from you–yes YOU!

I’ve copied the email that they sent out!  They want you to choose between two loan scenarios (Jasmine and Nandina) and tell them why you would choose one loan option over the other one.  There is also a short questionnaire asking you for suggestions on what else you’d like to know about.

Would you please take a look and choose one of the other.  Please let us know which loan option you choose and why!  What suggestions did you make?  THIS IS YOUR CHANCE TO PROVIDE INPUT (which is totally rare for a government agency anyway!)  Karen Deis, Publisher, www.MortgageCurrentcy.com (Reading the fine print–so you don’t have to!)

 

                                                                       Email Notice From CFPB: 

Since May, we have been asking you to help us improve mortgage disclosure. By comparing different draft forms, you’ve helped us understand how to communicate information more effectively.

Now we need you to do something just a little different.

This time we’ve posted just one version of a disclosure, but with two different mortgage loan products. We’d like you to look at them and decide which one you would choose.

Make your choice today:
www.consumerfinance.gov/knowbeforeyouowe

We’re shifting gears for a simple reason: Comparing two versions of a form is useful, but in the real world, consumers should be able to use disclosures to compare different loan offers, not different forms. An effective disclosure form should help people make the best decisions for themselves and their families.

We want to see how well this version of the form lets people do that. Can consumers use the form to choose the right loan for themselves and their families? Can lenders or advisers make a clear recommendation about the best loan?

Tell us which loan you prefer. Help us make mortgage disclosure forms easier to understand and use:
www.consumerfinance.gov/knowbeforeyouowe

Thank you for your help,
The Consumer Financial Protection Bureau

Heads Up Licensed LO’s – You’ll Need NMLS Credit Authorization starting 11-1-10

NMLS Requiring Your Credit Report Authorization – November 1, 2010. 

 One of the provisions of the National Mortgage Licensing System is that loan officers must be “financially responsible”.  At the time, everyone wondered what the heck that meant?

 Well, you knew it was going to happen.   The NMLS has announced that beginning on November 1st, 2010, all licensed loan officers (not registered) must authorize them to pull a credit report on YOU—regardless of what your state’s requirements—and even if your credit was previously reviewed. 

 If you will be applying for a license in the future, you must authorize the credit report pull as the time you apply.

 Here’s how it will work:

 You’ll have to log in your NMLS account.

 You will be asked some questions to prove our identity. These are personal questions so your company will NOT be able to answer them for you.  Questions that might be asked would be previous addresses, balances on loans, current or previous phone numbers—things that only you would know.

The fee is $15.

 The report will be considered “soft pull”; it will be thru TransUnion, using Vantage Score® and will be a singe report.  (Hint, pull your own TransUnion report and see exactly what you will need to do to fix any errors.)

 The NMLS will NOT be pulling the credit report.  They are serving as your state’s clearinghouse and it will be your state who will access the NLMS database and randomly pull a credit report.

 There are a handful of states, whose rules state that they will be pulling a report by the end of 2010.  The rest of the states will be between January and March, 2011.

 And, you won’t know when your credit will be checked—it could be a year from now.

 It also means that you are giving them the authority to pull a credit report for years to come.

 More info will be posted in the November 10th issue of www.MortgageCurrentcy.com  At the NMLS website http://mortgage.nationwidelicensingsystem.org/profreq/credit/Pages/default.aspx

In addition, the “state agency checklist”  was updated on October 15, 2010.

 http://mortgage.nationwidelicensingsystem.org/profreq/Documents/SAFE%20Compliant%20Requirements.pdf

Your Credit Report vs. Your Mortgage License–Heads Up!

Beginning November 1,  NMLS says that all LO”s are supposed to log into NMLS and authorize TransUnion to send a credit report (electronically, within NMLS) to their regulator(s). “MLOs will have to answer 3-4 questions about themselves in order to verify their identity with TransUnion before the credit report is generated.

So,  what’s “wrong” about the way loan officers have to be licensed?  ..first you pay all that money, spend all that time getting your license and only AFTER you’ve done that…will they pull a credit report…too see if you can continue doing loans.   I’ve heard of loan officers who are “on probation” because they had a collection 3 years ago.  Another state has suspended a LO’s license because of back child support (yeah, the child support needs to be paid–but how can he if he’s not working?)

It’s the cart before the horse scenario.

While a company may pay for the credit report through NMLS, only the MLO will be able to complete the identity verification process.” http://mortgage.nationwidelicensingsystem.org/profreq/credit/Pages/default.aspx. for more info on what’s involved and the fees.  Be sure to click thru to the OTHER links  on the website page metioned above.

I recommend that you check out your state’s “financial responsibility” measuring stick.  Your report will be sent to your state and they will contact you if problems. 

Keep up to date on all the rules and regulations with www.MortgageCurrentcy.com.  Try for $1 (just one buck)…

Are FHA Loans Assumable? You Bet!

A great financing option that real estate agents need to know about ,if they are listing a home for sale, is if the home has an FHA mortgage that was originated after December 15, 1989.  Why?  Because the loan is assumable!  More Info and Mortgage Talking Points(tm) “FHA Assumptions=More Sales” can be found at www.MortgageCurrentcy.com 

Here are some of the rules:

Buyer must qualify based on credit–(Servicer may be more lenient about the score)

Loan Fees are lower–(Servicer will charge for processing–usually a flat fee)

Seller may pay buyer’s closing costs

Secondary financing and borrowed funds may be used by buyer (Must qualify for all payments)

Sellers will be released of liability

What’s prohibited:  If buyer purchasing to use as investment property or 2nd home (some exceptions heres), loan is NOT assumable

At the time the home is listed for sale, real estate agents should order an “FHA Assumption Package” from the company servicing the loan.  They will also be the ones processing the paperwork. Great info to share with real estate agents–especially on Face Book!

Should I Have a Mortgage Website, Blog, or Facebook Page?

I am not going to editorialize much on this point because I think this picture is worth a 1000 words…

Internet v. Newspaper--How to Spend Your Mortgage Marketing

Internet v. Newspaper--How to Spend Your Mortgage Marketing

If you need help getting started leave a comment below. You will have plenty of Web savvy loan officers and mortgage marketing experts willing to help your success.

Hat Tip: The Real Estate Bloggers

Reblog this post [with Zemanta]