Mortgage Broker Jobs Contract
The number of people employed by mortgage bankers and servicers increased in the latest monthly employment report from the government. But the increase was not enough to offset mortgage broker job losses.
The Bureau of Labor Statistics reported today that 266,600 people were employed in mortgage positions during May.
The bureau, a division of the U.S. Department of Labor, usually reports employment statistics on the first Friday of each month but reported the data early due to the fourth of July holiday.
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Bill Proposes HVCC Moratorium
Lawmakers have introduced federal legislation that would suspend the Home Valuation Code of Conduct -- a move quickly applauded by mortgage brokers.
Mortgage Compliance Wire
The implementation of the new appraisal code has destroyed appraisal quality and increased loan expenses, according to mortgage brokers. In other mortgage compliance activity, a new study found that banks are more closely monitoring compliance by their business partners.
FHA Hearings Address Broker Net Worth
In testimony before Congress today, mortgage bankers warned that the Federal Housing Administration and the Government National Mortgage Association need more resources to keep up with rapidly increasing government originations. The group also called on lawmakers to increase minimum FHA net worth requirements -- though mortgage brokers argue that an increase won't make a difference.
Mortgage Insurance Bulletin
Several mortgage insurers have tightened their credit score and debt ratio requirements. One mortgage insurance company is requiring that loans originated by mortgage brokers have credit scores 40 points higher than retail-originated mortgages.
Flurry of Florida Mergers
As is the case with the temperature, mortgage-related mergers in Florida are heating up -- with four deals closed or announced since last month. One firm is looking for mortgage brokers. Merger transactions were also identified in three other states.
1st Met Converting to Mortgage Banker
With the potential imposition of limitations on yield spread premiums and limitations imposed by the Home Valuation Code of Conduct, 1st Metropolitan Mortgage said now is the perfect time to evolve from a mortgage broker to a mortgage banker as it is acquired by a Dallas-based firm. Once the deal is done, 1st Metropolitan plans a recruitment campaign for mortgage brokers.
More Compliance Deadlines Loom
As third-party lenders outline new procedures for the new Home Valuation Code of Conduct, one new online service for mortgages brokers promises to reduce some of the stress of complying. But following HVCC rules is not the biggest compliance issue facing mortgage lenders this year.
Firms Sued Over Direct Mail Ads
Two Missouri mortgage brokerages have been sued by the state over allegations of misleading advertising. One of the firms is accused of sending letters that appeared to be from the borrowers' existing lenders, while the other is accused of trying to deceive borrowers into believing that it was related to the U.S. Department of Housing and Urban Development.
HVCC, Red Flag Deadlines Loom
Mortgage brokers are up in arms and appraisal management companies are in the spotlight over the upcoming deadline to comply with the Home Valuation Code of Conduct. Another looming deadline that will require mortgage companies to establish mortgage fraud prevention procedures has at least one service provider giving away toolkits for mortgage brokers. Meanwhile, Pennsylvania originators are now required to provide a new dislcosure.
