Pages Navigation Menu

Higher Standards. Better Results.

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 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.

WAMPWe also found a very cool website that you can let your clients know about. It’s called 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?

Have a wonderful day!

Frank and Brian

Share Button
468 ad