Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
2,000,000
# of Visitors Per Month
You are here:  Home »  Community Comments
on Tue Apr 26 2016, 10:05 AM
HUD's idea of a resolution to Fidelity's lending is to force them to an agreement that does exactly what they are saying they are in trouble for "discrimination"? How does this make any sense, if Fidelity denied applicants based on credit or job history, legally, they did all they were supposed to. Now they have to give loans to "minorities" that don't qualify for their underwriting guidelines. These agreements are what are holding back lenders, along with the stated: ".... companies do their best to help their clients in spite of the palpable fear of making a mistake in a loan file." The lender did everything correct and still got punished for it. The Gov't agencies have too much power, especially when it is misguided and they enforce illegal actions. "Under the agreement, Fidelity will make investments and community development loans in predominantly minority census tracts where at least 40 percent of these loans will specifically promote affordable housing. For this purpose, the Bank has committed to earmarking at least $500,000 each year for two years, for a total of $1 million."
Ted Rood
Senior Loan Officer , MB Financial Bank
on Thu Apr 14 2016, 4:21 PM
Good luck, Jaime. Hope he's a MND loan officer, so at least as knowledgeable as those here!
on Wed Apr 13 2016, 1:38 PM
Thank you for your comments everyone! I have gotten some more info and am in touch with someone. Ted - it sounds like you are correct in that it is quite difficult to actually get approved for one of these extenuating circumstances and requires more effort and documentation than even was required for the short sale itself to happen. I think I have a new game plan now with the LO I am in touch with - thank you again to all who replied to help!
on Mon Apr 11 2016, 3:33 PM
How do I go about finding lenders that will allow only a 2 year wait period on conventional after short sale? My short sale was due to medical reason so may possibly qualify for the extenuating circumstances. Thank you so much! (I am in the Phoenix, AZ area)
on Fri Apr 8 2016, 2:37 PM
Rob- Re Condos: Any hope that FHFA or Fannie/Freddie themselves will take the initiative to create approved Condo lists similar to HUD&VA? That would make life so much easier for all involved, cheaper for borrowers, etc. Lacking that, it seems like lenders are doing a lot of redundant work that shouldn't be necessary. Thx.
Frank Ceizyk
Mortgage Consumer Advocate, Escape From Pottersville
on Fri Mar 18 2016, 12:24 AM
I completely agree with you Larry, and if the mortgage industry adopted "I am going to be a mortgage consumer advocate first and a profiteer second" as its mission statement and then acted accordingly, the dialogue about our industry could credibly change to one of trust. I have heard some originators discuss the idea of 'residual compensation' for long term loan performance and retention. This would certainly take some of the pressure off of mortgage banks to constantly be releasing new products in the name of driving volume and profits, and motivate loan officers to become more focused on long term financial mortgage planning, rather than short term profit goals. Providing the best rates and terms for borrowers with a financial plan in mind would reduce prepayment risk, as loan officers would be working for both the initial commission, plus the residual income for performance and length of time that loan stays in the MBS pool. While this may seem like a distant pipe dream, I fear that if we don't reform our industry to provide a more comprehensive financial planning and education component as a value added service, the Rocket Mortgage model will replace us as consumers choose speed and immediate convenience over a longer term financial mortgage wealth plan that requires more time and effort.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Thu Mar 17 2016, 6:30 PM
Coming from someone with a lot of experience as a loan originator, consultant & mortgage planner it is easier to accept what you say. Of course, declaring that people tend to trust maybe too much can boost the support for regulation. As to trusting government and realtors in regards to whether values will go up or down, and how much so, that can be foolish. However, as an educated, experienced, and knowledgeable loan originator....one can decide, "I am going to be a mortgage consumer advocate first and a profiteer second." Many professionals who have grown as a more self realized individual know that if they always put people first in assisting them, earnings will follow and this can include realtors, etc. Realtors can choose to put their buyers first and know that they have provided the kind of education and service they would want for themselves and their loved ones. Depending on future refinances to make things right, or the ability to flip a home for a good profit are both poor reasons to buy a home for most people. On the other hand some people may be prepared to invest in homes and flip them for a profit. Lucky realtor who gets them as a regular client!
on Wed Mar 16 2016, 2:27 PM
You are forgetting THE main principal, that we, as an industry, have allowed the bureaucrats, the media, career politicians, and, most importantly, the fine folks tasked with protecting consumers from financing, that frames every discussion about the mortgage meltdown and our industry. That assumption is this - homeowners and people in general, especially people who buy things, are just plain stupid. They are incapable of understanding complex concepts like using financing to buy real estate, property values, a montthl budget, household expenses, etc. People are prone to do stupid things like take on a monthly payment that is more than they can afford. Further, people, primarily homeowners who are stupid can't be expected to make an important decision like how much of a mortgage payment they can afford. Stupid people are also easy pry for the evil investors, who we know not capable of determining a criteria by which they will invest in mortgage backed securities, made to stupid people. What did all these stupid and evil people do before QM? Thank the Lord hat we have such an involved government, to protect us from ourselves......
on Wed Mar 16 2016, 12:40 PM
Appreciate the information and all the articles, but you all need to tighten up your proofreading/editing. It's across the board on many articles with different writers, not just this one. Love all the info you provide though - keep up the good work on that end!
Frank Ceizyk
Mortgage Consumer Advocate, Escape From Pottersville
on Fri Mar 11 2016, 4:14 PM
Yes--the extra waiting period makes absolutely no sense on a refinance,and actually hurts the cost benefit for refinance customers, by potentially adding an extra 3 days of interest they have to pay on their old loan, delaying the benefit of lower interest on the new loan. Might not seem like much $$, but multiply it by every American who is trying to refinance in the post TRID world and it adds up to a lot of unnecessary cost paid by housing consumers.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Wed Mar 9 2016, 6:04 PM
Agreed, Larry, especially on refinances with rescission. If you can't understand your loan at closing, or in the three days after, is seeing the CD 3 days before closing really going to make a difference?
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Wed Mar 9 2016, 2:55 PM
I certainly agree that the new LE and CD designed as such is benefitting everyone involved in the loan process and making for smoother closes. I still view the 3 day wait period as completely unnecessary and just another delay process. Why on earth does one need 3 days to look at the simple CD which is easy to compare with the original LE. The borrower reviews the CD, asks their questions if any, and signs it. That should be sufficient to be able to draw docs. There really is no reason to have the 3 day wait period.
on Mon Mar 7 2016, 10:09 AM
Cost of compliance might have something to do with that.
on Fri Mar 4 2016, 6:24 PM
It is very informative article. it is exactly what I was looking for.
Frank Ceizyk
Mortgage Consumer Advocate, Escape From Pottersville
on Wed Feb 24 2016, 12:23 PM
One more reason why taking out a HELOC is a risky proposition. 4.3% drop in 1 year median prices.
on Wed Feb 24 2016, 12:07 PM
Yes, realtor is a THREE SYLLABLE word. You're just railing about mispronounciation. It's like saying that "nuclear" is a two syllable word just because some people mispronounce it "nucular"... If you go to Meriam-Webster, the dictionary (online) makes it very clear that there are three syllables. Re-al-tor.
Frank Ceizyk
Mortgage Consumer Advocate, Escape From Pottersville
on Mon Feb 22 2016, 2:48 PM
I actually can't believe the title is for real. Maybe it's the folks at Loandepot that are clueless and don't want to acknowledge consumers are a little more financially educated and/or weary about the realities of the staying power of these double digit value increases. Why in the world you want to even compare HELOC volume to the 2005 period, given that the values were artificially propped up by unsustainable housing loan and sale practices? And then actually add that HELOC default levels are the lowest since 2007--when the market imploded? How is that even a good baseline for comparison? Ugh. And we wonder why the dialogue about the mortgage industry continues to filled with distrust. If housing is truly going to be considered to have any investment value, then the strategy should always be to have a bigger distance between the asset value and the loan balance. "Tapping" equity turns equity into a liability.
on Thu Feb 18 2016, 7:03 AM
Informative write-up. That's really true that for the last few years home prizes have grown up tremendously, but still it could be said that it is more affordable amongst all the others. Visit http://www.legisocial.fr/conventions-collectives-nationales
on Mon Feb 15 2016, 10:38 AM
The insurance executives and regulators quoted in this story seem to live in la-la land where they can dream of the glories of the 'free market' and there are no consequences to the lives of real people. If you raise the price of flood insurance beyond the costly level where it is now, you will destroy the home investments of hundreds of thousands of people who will be unable to sell their homes, and who bought them believing in good faith that subsidized flood insurance at affordable rates would always be available. I live in a beautiful historic neighborhood along the Susquehanna River in Harrisburg, Pa., which had a vibrant real estate market until the Biggert-Waters Act was passed. Now, homes sit on the market for 1-2 years if they sell at all. Many have been converted to rentals. If you price flood insurance at so-called 'market' rates, you will cause the eventual abandonment of large parts of communities in the hundreds of river towns in Pennsylvania and elsewhere. Think it through, folks. There are serious consequences to the 'reforms' you propose.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Thu Feb 11 2016, 9:56 AM
Couldn't agree more that there are many in the $51k+ camp who care deeply and would love to help, but can't, due to the structure of the system.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Tue Feb 2 2016, 11:18 PM
Global economic angst is alive and well. As long as that's the case, borrowers and lenders will be sitting pretty, there's going to be lots of folks who are able to save money on refis!
WN
on Sat Jan 23 2016, 10:34 AM
I have yet to miss a closing due to TRID. In fact I am still encouraging 30 day contracts here in Texas. If your Lender is taking 50 days. I suggest you find a new company.
on Fri Jan 22 2016, 12:26 PM
The problem with HMDA and wanting to be more "transparent" is most consumers don't realize that when they are asking for a LE or even a simple verbal rate quote, it is based on that snap shot, split second in the market of where rates are pricing at. If you go to another lender tomorrow, the rates will most likely be different from the previous days pricing. How does this help the consumer make an informed decision? Then they go back to the first lender and say "hey this other LO gave me a better price, why are you trying to give me a bad deal?" You may have a 50/50 chance of them even wanting to hear your explanation, let alone understand it. This hasn't solved the problem of helping consumers compare apples to apples for loan costs.
on Thu Jan 21 2016, 6:18 PM
That depends on the Lender. A
on Thu Jan 21 2016, 11:11 AM
KBYO Initiative failure is evident of the mortgage industry's lack of capacity to keep the borrower informed in a timely fashion.
WN
on Mon Jan 18 2016, 1:52 PM
I have not missed a closing yet! In fact I closed one in 8 working days including the appraisal!! Its all based on how your Ops handles the workload. I am with Movement Mortgage and we have it down pat!!
on Mon Jan 18 2016, 5:20 AM
We specialized in Bank Guarantee {BG}, Standby Letter of Credit {SBLC}, Medium Term Notes {MTN}, Confirmable Bank Draft {CBD} as well as other financial instruments issued from AAA Rated bank such as HSBC Bank Hong Kong, HSBC Bank London, Deutsche Bank AG Frankfurt, Barclays Bank , Standard Chartered Bank and others on lease at the lowest available rates depending on the face value of the instrument needed. We will be glad to share our working procedures with you upon request to help us proceed towards closing deals effectively. Email: Kangheeil64@gmail.com Skype: Kangheeil64 Regards Kang Hee Il
on Sun Jan 17 2016, 2:30 PM
Hi If you need help in stopping your foreclosure email Bob at bobconstruction@hotmail.com, we help you pay your back defaults missed payments. We do not excepted any upfront cash from you. We are only paid a month fee on our money we lend to make the back payments. NEVER EVER pay anyone any money until you see proof of what they can do. For more infomation, email us first and then we will exchange phone numbers. We are private lender consulting services, we are new but very experienced.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Wed Dec 30 2015, 10:57 AM
So typos may now be the main concern for TRID loans. Great. Listing fees in alphabetical order is certainly something my borrowers always rely on, NOT!
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Tue Dec 29 2015, 6:32 PM
I earlier commented on the wholesale bank taking 7 days and I meant to comment that initially per TRID requirements the wholesale bank needed to act within 7 days, and thus this cost the loan originator the 7 days plus the loan originator had to start all over in originating a new loan in its place! I fortunately have had no loans to broker (all in house) since TRID enacted, but still getting used to the new requirements and added waiting period (s).
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Tue Dec 29 2015, 1:54 PM
Interestingly enough, with two increased waiting periods under TRID (3 days each) the fact that there was only an average increase in length of loans of 3 days should be viewed positively. Even if you have enough loans initiated prior to October 3 funding in November that made the difference seem lower it is still surprising. Many of us expected delays to be from 5 to 11 days! There were likely some of those, particularly for anyone who brokered some of their loans. One brokered loan I was told took that wholesale bank more than seven days even though the individual brokering it was precise. That meant it had to be originated all over again! It could be with all the concerns, many lenders were just becoming better at moving their loans thru the pipeline!
Ted Rood
Senior Loan Officer , MB Financial Bank
on Thu Dec 24 2015, 4:01 PM
Have to concur that there's no push to lock today, given the conservative holiday weekend rate sheets. Wait until Monday, if you've floated this long already.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Thu Dec 24 2015, 3:12 PM
Just had a closing delayed due to TRID. My borrower received her CD at 11:02 PM Central time Wednesday 12/23. We planned to close 3 business days later, on Monday 12/28. Our system, however, is based on EAST COAST TIME, so it shows the CD received at 12:02 AM 12/24, which postpones closing to 12/30. Thanks, TRID, for messing up both a buyer's and seller's plans!
Frank Ceizyk
Mortgage Consumer Advocate, Escape From Pottersville
on Wed Dec 23 2015, 12:15 AM
It also seems like overkill also to have the waiting period on refinances. There is already a 3 day recission period. Duplicating it only ensures every borrower who is refinancing effectively delays the benefit of the refinance by an extra batch of TRID generated days.
Frank Ceizyk
Mortgage Consumer Advocate, Escape From Pottersville
on Wed Dec 23 2015, 12:11 AM
Marjorie--these disclosures were created by the Consumer Finance Protection Bureau with a long process of input from the general public. They are deemed the most "easy to understand". Unfortunately, they do little to address a) the cost benefit of the different options available to meet specific financial goals of homeownership b) whether or not the house price is on the high end or low end of the price spectrum, and therefore don't really do much to 'protect' consumers any more than the old ones. The disclosures may be of value if lenders bring back the 'exotic' loan days of subprime, negative amortization or prepayment penalty loans, but for now this is overkill ad nauseum.
 

More From MND

Mortgage Rates:
  • 30 Yr FRM 3.66%
  • |
  • 15 Yr FRM 2.94%
  • |
  • Jumbo 30 Year Fixed 3.61%
MBS Prices:
  • 30YR FNMA 4.5 108-30 (0-02)
  • |
  • 30YR FNMA 5.0 110-19 (0-02)
  • |
  • 30YR FNMA 5.5 111-26 (-0-04)
Recent Housing Data:
  • Mortgage Apps 10.03%
  • |
  • Refinance Index 11.33%
  • |
  • Purchase Index 8.43%