In September, in Part 1 of this MDIA article, we discussed general information relating to the Mortgage Disclosure Improvement Act. This month we examine in more detail the payment schedule requirements for various amortization types and payment options….
Before January 1, 2010, the HUD-1A could be used on most refinance loans. Now, however, there are several instances where the HUD-1 must be used, even when there is no seller. Under the current RESPA regulations, if a charge has been shown on the GFE as payable by the borrower,…
As part of the Housing and Economic Recovery Act of July 2008 the Mortgage Disclosure Improvement Act (“MDIA”) was enacted making several changes to the Truth-in-Lending Act (“TILA”) disclosure process for mortgage lenders. …
Multi-State examinations are coming. In a process began in 2008, the Conference of Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) have begun preliminary exams this year. In 2011, however, all states are expected to participate in the program,…
With the ongoing changes in the mortgage industry, and fewer options for borrowers, more lenders are turning to FHA loans to increase their business. Questions concerning the FHA Annual Mortgage Insurance Premium calculation are common….
Major financial reform laws are now a matter of when, not if. On June 25, the joint committees of the House of Representatives and the Senate hammered out their final compromises on the differences between their respective bills. The House passed the revised bill on June 30,…
The mortgage banking industry is officially paperless now.
Even though most companies are indeed scanning their loan files at some point in the process (typically as a last step) the reality is that most lenders are not actually paperless….
On December 22, 2009 the Federal Reserve and the Federal Trade Commission (the “Agencies”) released new and finalized rules for risk-based pricing notices, which will become effective on January 1, 2011.
The Federal Reserve Board has implemented part of these new regulations in 12 CFR §222 et el….
California Finance Code §4995.2(c), effective July 1, 2010, requires mortgage brokers who arrange only higher-priced mortgage loans to disclose that fact to a borrower, both orally and in writing, at the time of initially engaging in mortgage brokerage services with that borrower. We do not think it is likely that any of our clients are brokers who only do HPML’s,…
As more parties demand transparency and increased data quality, lenders are reacting by migrating to a more paperless process and investing in electronic document management technology. [DocuTech customer] Castle & Cooke switched from a paper- and labor-intensive process to a more automated one when they contracted document preparation vendor DocuTech….
