If the GFE and early TIL are provided at the time of a face-to-face application, the fee can be imposed immediately. If the GFE and early TIL are mailed to the applicant, the disclosures are not considered to have been "received" until three days after they are mailed. So the bank could impose its rate lock fee the third day after placing the disclosures in the mail.

HUD Releases FAQ on New RESPA Rules

HUD Releases FAQ on New RESPA Rules

HUD yesterday posted long-awaited answers to "Frequently Asked Questions" regarding new Real Estate Settlement Procedures Act rules, which were finalized Nov. 17, 2008, and are scheduled to take full effect Jan. 1, 2010. The FAQs cover more than 80 implementation questions that had been put forward by ABA and other financial trade representatives. Topics include specific requirements related to the content and delivery of the new Good Faith Estimate and the new HUD-1 Settlement Statement forms. Click here to read the FAQs.

Industry representatives encourage delay of new RESPA rule

Industry representatives encourage delay of new RESPA rule

Representatives from a wide range of financial groups met with new Federal Housing Administration Commissioner Dave Stevens on Thursday, August 6, asking that the Department of Housing and Urban Development delay implementation of a sweeping new RESPA rule scheduled to go into effect on January 1, 2010. The group asked of a delay period of, at minimum, six months.

The financial services industry is concerned that the RESPA rule is so broad in scope, and that so many questions about the rule remain, that compliance with the rule by January 1 may be impossible. In the meeting, HUD officials confirmed that there are numerous regulatory clarification items that are due for public release in the coming days. These additional clarifications are expected to further delay implementation efforts already underway. In addition, a major revision to the Truth in Lending Act being proposed by the Federal Reserve would add further stress and confusion to the pending restructuring of the RESPA regulations.

The proposed Consumer Financial Protection Agency, which could be given the authority to further change disclosures and other requirements currently covered under both RESPA and TILA, is another reason to postpone the effective date of the RESPA rule. ABA and the other groups asked the FHA Commissioner to delay the implementation of the RESPA rule and better coordinate it with the efforts underway at the Federal Reserve. Consumers, lenders and everyone involved in a home mortgage transaction will be better served by shorter, consistent and clearer regulations and disclosures, the groups said.

Making Home Affordable Refis Reach Almost 1.9 million

Making Home Affordable Refis Reach Almost 1.9 million

Today's American Banker reported that Fannie Mae and Freddie Mac have completed workouts on nearly 1.9 million loans through President Obama's Making Home Affordable Refinance Program, which targets owners with loan-to-value ratios between 80 percent and 105 percent. The firms' streamlined process is benefiting borrowers through an average interest-rate cut of 1.3 percent, said James Lockhart, director of the Federal Housing Finance Agency, which reported the data. Overall, the regulator estimated that Fannie Mae and Freddie Mac have modified 2.9 million loans through July.

MBA Releases Podcast Discussing Consumer Mortgage Decisions

MBA Releases Podcast Discussing Consumer Mortgage Decisions

The Mortgage Bankers Association (MBA) released a podcast recording featuring Michael Fratantoni, MBA's Vice President of Single Family Research and Andrew Kalotay, President of Andrew Kalotay Associates discussing the recent paper, "A Financial Analysis of Consumer Mortgage Decisions."

The paper, conducted by Andrew J. Kalotay and Qi Fu and sponsored by the Research Institute for Housing America (RIHA), provides a deeper look into some of the complex mortgage and financial investment decisions consumers face as well as methods for analyzing those choices.

The main topics discussed in the podcast are:

• How to determine the appropriate mortgage product and rate/point tradeoff
• How to determine the right time to refinance
• The costs and benefits of paying down a mortgage versus other potential investment choices

The podcast recording can be accessed by clicking here.

FHA launches loan modification program

FHA launches loan modification program

On July 30, the U.S. Department of Housing and Urban Development (HUD) announced the implementation of the FHA-Home Affordable Modification Program (FHA-HAMP), which permits defaulted FHA mortgagors to obtain a loan modification to permanently reduce their monthly payments.

When the Administration initially introduced the Making Home Affordable Program, it excluded FHA insured mortgages from qualifying for modification under the program, stating that FHA would develop its own standalone plan. Under Mortgagee Letter 2009-23, effective August 15, 2009, the Administration officially launches the FHA Loss Mitigation option. In terms of eligibility requirements, qualification procedures, trial periods, etc., the FHA-HAMP program closely parallels the federal Making Home Affordable (MHA) modification program applicable to non-FHA borrowers. These procedures and basic program guidelines are set forth in the Mortgagee Letter.

Mortgagees that utilize FHA-HAMP are also eligible to receive incentive payments. Mortgagees utilizing this initiative will be allowed to first file for a partial claim (to bring the loan current and defer principal where appropriate), followed by a loan modification claim. Under FHA-HAMP, the Mortgagee may receive an incentive fee of up to $1,250. This total includes $500 for the partial claim and $750 for the loan modification. Mortgagees may also claim up to $250 for reimbursement for a title search and/or recording fees.

For more information and resources, please visit http://makinghomeaffordable.gov/pr_07302009.html.

FHFA releases HVCC update

FHFA releases HVCC update

On July 22, the Federal Housing Finance Agency issued a notice confirming support for the principles embodied in the Home Valuation Code of Conduct (HVCC), and announcing that the enterprises were releasing additional FAQs relating to HVCC implementation. In the notice, FHFA addresses a series of common interpretations that it views as "misinformation." For instance, the notice challenges the view that the Code prohibits all communications between appraisers and lenders, and that the HVCC favors AMCs over independent or in-house appraisers. The FHFA also reinforced the opinion that the HVCC has not been responsible for lower valuations, stating that such valuations are reflective of current market conditions, and are not the result of the new conduct regulations. The FHFA statements were published through a notice entitled "Strengthening Appraiser Independence and Improving the Valuation Process."

To view the FHFA notice in its entirety, visit www.fhfa.gov/webfiles/14611/hvcc_NOTICE_7_22_09F.pdf.

In addition, the FHFA's notice mentions recently finalized additions to the GSE's "Frequently Asked Question." The updated FAQs respond in part to a series of inquiries submitted by ABA on behalf of its members. The new items include clarifications to requirements regarding the provision of appraisals to borrowers, the waiver provisions, and various definitional issues that had been left unclear in previous versions.

To view the FAQs, please visit http://www.freddiemac.com/singlefamily/hvcc_faq.html (Freddie Mac), or https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf (Fannie Mae).

Still time to register for the IMA Convention!

Still time to register for the IMA Convention!

There is still time to register for the 2009 IMA annual convention. This year's event has sessions on business strategies in a down market, regulatory updates, building networking connections, tools for first time home buyers and more. Click here for for more information or to register online.

Take the opportunity to network with your peers, explore the products and services available in the exhibit hall and gain perspective from the educational speakers.

September 2 - Golf Outing at Briarwood Golf Course in Ankeny
September 3-4 - Fall Convention at Downtown Des Moines Marriott

To register for the Convention see the IMA Calendar of Events.

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