Final Guidance Issued for Social Media
Final guidance for the use of social media by mortgage lenders and financial institutions acknowledges the value of the medium while discussing the risks and requirements for social media users.
HUD Establishes QM Definition
The Department of Housing and Urban Development has established a definition for qualified mortgages on government-insured loans. HUD made some exceptions on special loan programs.
Fannie to Maintain Problem Appraiser List
Fannie Mae is updating its appraisal requirements and plans to provide sellers with a list of appraisers whose reports will require extra scrutiny or won't be accepted.
Dodd-Frank Drives Hard Money Firm Out of OO Lending
Requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act are forcing at least one hard money lender to abandon owner-occupied transactions.
Cordray Dispels Ability-to-Repay Myths
The head of the Consumer Financial Protection Bureau said that some rumors circulating about the Ability-to-Repay rule are just not true. He said that loans can still be made to borrowers with debt-to-income ratios that exceed 43 percent.
Underwriting Standards to Ease on RMBS Loans
Next year will see a slow return for non-agency residential mortgage-backed securities, while underwriting standards will be relaxed. Borrowers on loans not designated as Qualified Mortgages will pay more than QM borrowers.
Non-QMs Present More Risk for RMBS
Home loans that don't carry a Qualified Mortgage designation will present more risk for loan securitization trusts, though the degree of additional risk will depend on the originator and the strength of the representations and warranties.
FHA Extends Recertification
Some Federal Housing Administration mortgagees will have more time to file their annual recertifications because a key system won't be ready on time.
CFPB Updates Exam Procedures
New procedures have been published that reflect new mortgage rules and what mortgage firms can expect from compliance examinations.
FHA Handbook in Works
A new handbook being developed for the lending process on single-family loans insured by the Federal Housing Administration promises to make it easier for mortgagees to do business with the agency.