Qualified Mortgages Explained: CFPB | The Niche Report

Qualified Mortgages Explained: CFPB | The Niche Report

(CFPB) Recently, we released the Ability-to-Repay rule designed to protect consumers from irresponsible lending and begin to lay the framework for stability in the mortgage market.

This week, we issued an implementation plan to help ensure the industry effectively and efficiently puts these new protections into place, with the understanding that our rule should not unduly restrict lenders’ ability to make responsible loans. We estimate that the vast majority of loans originated today will meet the standards for a “Qualified Mortgage” so long as creditors follow the required procedures.

As part of the new rule, Congress also directed us to define a category of loans where borrowers would be more protected. So we released the criteria for a Qualified Mortgage. If you are a borrower getting a Qualified Mortgage, your loan cannot contain certain features that often have harmed consumers in the past, such as excess points and fees.
Read the full article via Qualified Mortgages Explained: CFPB | The Niche Report.

QM’s Impact on Volumes 7 Years from Now | Mortgage News Daily

An excerpt of an article by ROB CHRISMAN at Mortgage News Daily:

Boy, I sure am glad we’re refinancing everyone* last year and this year, because after that, per CoreLogic, we’ll be down 60% in volumes due to QM & QRM restrictions – but the risk will be down 90%. And don’t forget we’ve got 7 years to change it. CoreLogic says about 60% of loans written today would not be acceptable under the finalized rules for a qualified mortgage (QM), and the anticipated rules for a qualified residential mortgage (QRM), after analyzing 2.2 million loans written in 2010 to determine what percentage of them meets QM and QRM guidelines. The firm chose 2010 because underwriting trends during that year because it believes they are quite similar to today’s. QM rules would eliminate about 48% of today’s mortgage originations, and when the QRM (with a 10 percent down payment requirement) is added to the equation, about 60% of today’s loans would be eliminated – but remember that we don’t have the QRM standards yet. “The combined impact of QM and QRM is that only 25 percent of purchase originations would meet the eligibility requirements of the QM rule’s safe harbor,” according to CoreLogic. And let’s not forget that for the next seven years, loans that meet the underwriting requirements of the GSEs and the Federal Housing Administration (FHA) are exempt from the new guidelines. “The irony of the exemption is that it reinforces the role that the GSEs play in the market, making it harder to enact GSE reform,” CoreLogic stated in its report.

* After some slicing and dicing of refi data, Freddie Mac observed that 27% of borrowers who refinanced in Q4 2012 chose to shorten their loan terms. According to the GSE’s Quarterly Product Transition Report, 69% kept the same term as the loan that they had paid off. In addition, borrowers who lived in lower-priced metros last year were generally more likely to shorten their term compared to borrowers in high-cost markets.

Be sure to join NTXAMP on March 21st for a QM/QRM Update.

See the full article via Who Owns 10,000 Houses? Finance Industry and Cybersecurity; QM’s Impact on Volumes 7 Years from Now.

More mortgage migraines « Bankrate, Inc.

More mortgage migraines « Bankrate, Inc.

More mortgage migraines
By Judy Martel · Bankrate.com
Friday, February 8, 2013
Posted: 6 pm ET

Accusations of wrongdoing during the housing crisis are not going away anytime soon. On Tuesday, Attorney General Eric Holder announced that the U.S. government is bringing a civil lawsuit for more than $5 billion against Standard & Poor’s over mortgage bond ratings.

Expectations of the lawsuit caused shares of McGraw-Hill, Standard & Poor’s parent company, to experience its biggest one-day percentage drop since 1987 on Monday. The stock fell 13.8 percent, according to CNBC.

Holder is charging that Standard & Poor’s misled investors with its bond ratings and ignored questions raised by analysts. This is the first federal charge against a ratings agency, but investors apparently believe it might not be the last. According to CNBC, shares of another ratings agency, Moody’s, dropped 10.7 percent Monday on news of the suit against Standard & Poor’s.

Read more via More mortgage migraines « Bankrate, Inc..

CoreLogic Reports Home Prices on the Rise for 10th Consecutive Month | Mortgage News | Daily National and State Headlines

CoreLogic Reports Home Prices on the Rise for 10th Consecutive Month | Mortgage News | Daily National and State Headlines

CoreLogics December HPI report has found that home prices nationwide, including distressed sales, increased on a year-over-year basis by 8.3 percent in December 2012 compared to December 2011. This change represents the biggest increase since May 2006 and the 10th consecutive monthly increase in home prices nationally. On a month-over-month basis, including distressed sales, home prices increased by 0.4 percent in December 2012 compared to November 2012. The HPI analysis shows that all but four states are experiencing year-over-year price gains.

Read the full article via CoreLogic Reports Home Prices on the Rise for 10th Consecutive Month | Mortgage News | Daily National and State Headlines.

Small Lenders Ride US Mortgage Wave as Big Banks Cut Back

Small Lenders Ride US Mortgage Wave as Big Banks Cut Back

Guaranteed Rate, a home loan company, opened shop in 2000 in Chicago with a single office. Now it is one of the 20 biggest U.S. mortgage lenders, with more than 140 offices.

Most of that growth has come in the last two years and Chief Executive Victor Ciardelli said in an interview he is not planning to slow down.

Read the full article via Small Lenders Ride US Mortgage Wave as Big Banks Cut Back.

2012 Mortgage Orgination Statistics

8.6 Million Mortgage Originations in 2012, Highest Since 2007

The December Mortgage Monitor report released by Lender Processing Services and covering performance data for the full 2012 calendar year, found that while mortgage delinquency rates remained at elevated levels, they have shown steady improvement, ending the year 32 percent lower than the January 2010 peak. Additionally, following a year of regional improvement in foreclosure inventories (marked by stark contrasts between judicial and non-judicial foreclosure states), the national foreclosure inventory rate began to decline toward the end of 2012 from historic highs experienced during the crisis.

Read more via 2012 Mortgage Orgination Statistics.

Has the Housing Market Halfway Recovered? | The Niche Report

Has the Housing Market Halfway Recovered? | The Niche Report

With the housing market pacing a rebound, financial analysts are anxious to gauge the pulse of the property sector and determine exactly when real estate investment might become ‘safe’ again. Ever since the value of American property took a nosedive in 2008, analysts have used comparison to pre-crash values as a means to determine market health. While we want to ensure conditions that lead to the crash are avoided, it would still be a relief to see property values recuperate near to what was maintained before the recession.

Read the full article via Has the Housing Market Halfway Recovered? | The Niche Report.

Mortgage Industry to Contract in 2013 | The Niche Report

Mortgage Industry to Contract in 2013 | The Niche Report

Changes in mortgage origination, including a changeover from refinancing transactions to purchases transactions and industry consolidation, will reduce the number of jobs but increase the opportunities for younger workers, according to Hammerhouse , a national recruiting firm for financial services.

“2013 will see the mortgage industry continue to evolve and the job of originators will continue to become more professional,” stated Drew Waterhouse, Managing Director of Hammerhouse.  “The industry will continue to stabilize and the companies that are properly structured, with strong leaders, quality-focused, balanced production, technologically advanced, geographically oriented and financially strong, will find 2013 to be the year they excel versus their peers.”

The advent of higher rates along with the move away from a refinance-transaction orientation to a purchase-transaction orientation, 2013 will see the pool of refinancing jobs will continue to grow smaller. There will be fewer people and companies needed in such an environment, the firm predicted.

With less volume comes the need for less and more efficient resources to generate production.  There will be a consolidation among independent mortgage producers.  Some will simply find it too difficult to maintain their independence in the new market environment.  Those that were too dependent on refinances will either merge or disappear, Hammerhouse said today.

Originators with transferrable, balanced, referral-based books of business will be in high demand and will find that they have significant leverage with employers. Younger workers will be in demand.  One of the consequences of the housing sector collapse was a loss of younger and mid-career originators.    Now, with the market preparing to move to a purchase-orientation, the need for younger originators to provide the hustle needed to succeed with Realtors® and to target younger, first-time buyers is readily apparent.

via Mortgage Industry to Contract in 2013 | The Niche Report.

NTXAMP New Year Kick-Off Happy Hour on Jan 24th – RSVP today!

NTXAMP New Year Kick-Off Happy Hour on Jan 24th – RSVP today!

JOIN US FOR HAPPY HOUR! Thursday, Jan 24th 5:30 p.m.
Blackfinn Addison
4440 Belt Line Rd. Addison, Texas 75254


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Do you want to be more involved?

NTXAMP is in need of volunteers! We have a number of chairperson positions available. Help us help your business and connections grow!

If you are interested or know someone who is, email us: ntxamp@gmail.com

The North Texas Association of Mortgage Professionals actively promotes the interests of Mortgage Professionals on local, and national levels. The Associations affiliation with the national association is critical to the passing and fighting of legislative issues which impact your ability to conduct your business!

The Association provides education, certification, and government affairs representation for you, the Mortgage Professional..

Membership provides you with all of the products and services that individual member associations typically offer, along with other services specially tailored to the mortgage industry – such as our Mortgage Loan Originator referral program, consumer education outreach efforts, targeted legislative advocacy programs and up-to-the-minute news updates.

Best of all, many members can take advantage of two memberships for the price of one – local (NTXAMP), and national (NAMB). NAMB, the leader in fighting for Loan Originators, currently maintains 43 separate state affiliates with more than 13,000 members, providing you with additional products, services and networking opportunities between NAMB / TAMP / and Local Chapter Associations.

If you’re operating as a Mortgage Professional, please know that it is only through your membership and support of these associations that they can continue to fight legislative issues on your behalf.


via NTXAMP New Year Kick-Off Happy Hour on Jan 24th – RSVP today!.

The Top Myths and Misconceptions in the Appraisal Process Dispelled for Clients | The Niche Report

The Top Myths and Misconceptions in the Appraisal Process Dispelled for Clients | The Niche Report

As a mortgage broker, chances are you are intimately knowledgeable about the Appraisal Independence Requirement AIR as part of sound underwriting for financial institutions. And though you may be familiar with the provisions for gaining information to safely loan on a property, be careful not to take for granted that buyers are aware of the legislation or the purpose and process of the appraisal overall.

Read the full article via The Top Myths and Misconceptions in the Appraisal Process Dispelled for Clients | The Niche Report.