Come Jan 10th, 2014, if no action is taken, the mortgage world will become even more complicated and confusing for consumers as a result of the new Qualified Mortgage.
CALL TO ACTION!!
In addition to less transparency for consumers, many of the small, local broker shops will be forced to close or get absorbed by a larger bank.
What’s important to understand is the underlying purpose of the Qualified Mortgage is to give banks protection from being sued by consumers after a loan closes. So, with that in mind, it’s less surprising that a law intended to protect big banks, doesn’t protect consumers.
What is surprising is that the CFPB, The Consumer Financial Protection Bureau, is the agency enforcing it.
Thankfully, there are amendments to the bill that will make it work for both the consumer and for small business.
HR1077 and S949 all work to level the playing field for brokers and banks. Help support the passage of these bills by sending this video to your respective congressional representatives – find yours here: http://www.usa.gov/Contact/Elected.shtml
When the Dodd-Frank act was passed in 2009, the various reforms enacted had staggered effective dates. On January 10, 2014, the Qualified Mortgage (QM) rule will go into effect.
As written currently, the rule will disproportionately impact small brokerages like ours. Banks are not required to disclose their fees in the same way that brokerages do, and the new rule does not account for this discrepancy.
There are currently three bills that would amend the QM rule to even out the requirement between banks and brokerages. More information about QMs can be found here. This document outlines the changes that 1077 will make to the QM rule.
We are taking action to help with the passage of 1077, 2767, and 949. We need as much support as we can get. Please, take a few minutes to send this letter to your Congressman.
Posted in Government | Comments Off on From Our Friends Frank Garay and Brian Stevens: CFPB Adjusts 3% Cap Rule
So the CFPB came out and made an adjustment to the 3% cap rule.
As we understand it any fees paid for the buyer by the seller won’t be counted toward the 3% cap which evidently was not the case prior to this update.
Our hearts go out to the people of Colorado who are affected by the floods they’re having right now. If you want to help you can do so by visiting www.HelpColoradoNow.org. We have a lot of friends out there and we hope you’re all okay. The level of devastation is at a Katrina level in Colorado and we at the National Real Estate Post have you all in our hearts and minds.
On the real estate front, a Judge threw out Wells Fargo’s injunction against the city of Richmond California where Wells Fargo was attempting to stop Richmond from using eminent domain as a means of curing their underwater homeowner situation. This is a blow not only for the people of Richmond, but for the rest of the country. If Richmond goes through with this and other cities follow suit, it will cause lenders and investors to stop lending in those cities. We’re very perplexed as to how the city of Richmond thinks this is a good idea. Perhaps if you know, you can let us all know in the comments down below.
We also found a very cool website that you can let your clients know about. It’s called www.OneFineStay.com and it’s where people who own very luxurious homes, condo’s and town homes rent them out at very reasonable prices all around the world. It’s an interesting and topical site that you can possibly share with your database for fun. Don’t forget to follow up with phone calls and ask for the business!
Finally the CFPB has apparently made some changes to the 3% cap rule for a QM loan. As we read it, if a seller paid points or fees for the borrower in the past it would have been counted against the borrowers 3% cap. With the recent change this would appear to no longer be the case. If it is indeed as we read it, we all know that sales prices will be bumped to compensate where needed. Clearly the CFPB has given a loophole for what they see as a potential problem, which makes us wonder why they just don’t fix the problem directly instead. Thoughts?
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2017 WAMP Events Calendar
April - Prime Time Social Network event - Date & venue TBA
May - WAMP LIVE NMLS Continuing Education Course followed by May Prime Time Social Network event in Tacoma, WA
June 9th - WAMP Mega Prize Golf Tournament - The Golf Club at Echo Falls
July - WAMP CAMP & BBQ Feast - Date & venue TBA
August - WAMP Serves; Habitat for Humanity Volunteer Build Days - Dates & location TBA
September 21st - WAMP Business & Humanitarian Leadership Awards Gala; PHENOMENON! - Emerald Ballroom, MOTIF Seattle Hotel
September 22nd - NW MORTGAGE EXPO & REAL ESTATE SUMMIT; Back in the Emerald City! - Seattle & Emerald Ballrooms, MOTIF Seattle Hotel
September 22nd - NW MORTGAGE EXPO LIVE NMLS Continuing Education Course for Licensed Loan Originators - MOTIF Seattle Hotel
October - Prime Time Social Network event - Date & venue TBA
November - WAMP Serves; Compass House - Dates & locations TBA
December - WAMP Holiday Luncheon - Date & venue TBA
December - WAMP Serves; The Forgotten Children's Fund - Dates & location TBA
JOIN A WAMP VOLUNTEER COMMITTEE!
Increase your industry business contacts! Get your name out there! Help support your State Trade Association! For more information, contact the following WAMP Committee co-Chairs, or Executive Director Frank E. Percival at FrankP@MyWAMP.org
WAMP Education Committee
Jason Bloom - firstname.lastname@example.org
WAMP Events Committee
Kelcey Myers - email@example.com
Scott St. John - firstname.lastname@example.org
WAMP Government Affairs Committee
George Charles - George@GeorgeCharles.com
WAMP Governance / Board Recruitment Committee
George Charles - George@GeorgeCharles.com
WAMP Marketing Committee
Lisa Goldsmith - email@example.com