CAMPs REAL TIME LEGISLATIVE INFORMATION UNDER THE DOME

Congress Called Upon to Extend Mortgage Forgiveness Debt Relief Act

Thu, 2014-11-20 12:41 —

The Financial Services Roundtable (FSR) and several other financial trade associations sent a joint letter to congressional leadership today calling for lawmakers to grant a two-year extension of the Mortgage Forgiveness Debt Relief Act, which prevents distressed homeowners from facing exorbitant income tax bills on the forgiven portion of their home loans.

“Because the tax relief from mortgage debt forgiveness has been allowed to expire, the federal government is now spending money on programs to prevent foreclosures while threatening to tax the very homeowners they are trying to help,” said the letter. “Many Americans now fear a tax bill they cannot afford, while others are choosing to simply go into foreclosure and declare insolvency.”

For example, a homeowner currently in the 25 percentile tax bracket who has $100,000 forgiven by their lender would be taxed $25,000, even though the forgiven portion of the loan is considered “phantom income”, or money that was never actually received by the homeowner.

Along with the two-year extension, the trades are requesting that the extension be applied retroactively to loans forgiven after the law expired in December 2013. Despite some gains in the nation’s economic recovery, nearly two million Americans are still either seriously delinquent on their mortgage payments or are in the foreclosure process, and 11 percent of all homeowners own homes that are worth less than the outstanding mortgage balance.

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FOR IMMEDIATE RELEASE:
November 20, 2014

CONTACT:
Office of Communications
Tel: (202) 435-7170

CONSUMER FINANCIAL PROTECTION BUREAU PROPOSES EXPANDED FORECLOSURE PROTECTIONS

 Proposal Would Provide Surviving Family Members and Other Homeowners with Same Protections as Original Borrower

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) proposed additional measures to ensure that homeowners and struggling borrowers are treated fairly by mortgage servicers. The proposal would require servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan, to put in place additional servicing transfer protections, and to take steps to protect borrowers from a wrongful foreclosure sale. The proposal would also help ensure that surviving family members and others who inherit or receive property have the same protections under the CFPB’s mortgage servicing rules as the original borrower.

“The Consumer Bureau is committed to ensuring that homeowners and struggling borrowers are treated fairly by mortgage servicers and that no one is wrongly foreclosed upon,” said CFPB Director Richard Cordray. “Today’s proposal would give greater protections to mortgage borrowers.”

Mortgage servicers are responsible for collecting payments from the mortgage borrower and forwarding those payments to the owner of the loan. They typically handle customer service, collections, loan modifications, and foreclosures. To address shoddy mortgage servicing practices, the CFPB put in place common-sense rules designed to eliminate surprises and runarounds for homeowners. The rules, which went into effect on January 10, 2014, require servicers to maintain accurate records, give troubled borrowers direct and ongoing access to servicing personnel, promptly credit payments, and correct errors on request. The rules also include strong protections for struggling homeowners, including those facing foreclosure.

Since the Bureau’s mortgage servicing rules took effect, the CFPB has continued to engage in outreach with consumer advocacy groups, industry representatives, and other stakeholders. This proposal  reflects our ongoing effort to ensure the rules are working as intended and to smooth the path for companies to better protect consumers and comply with the CFPB’s rules.

Among other things, today’s proposal would:

  • Require servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan: Currently, a mortgage servicer must give the borrower certain foreclosure protections, including the right to be evaluated under the CFPB’s requirements for options to avoid foreclosure, only once during the life of the loan. Under the proposed rule, servicers would have to give those protections again for borrowers who have brought their loans current at any time since the last loss mitigation application. This change would be particularly helpful for borrowers who obtain a permanent loan modification and later suffer an unrelated hardship – such as the loss of a job or the death of a family member – that could otherwise cause them to face foreclosure.
  • Expand consumer protections to surviving family members and other homeowners: If a borrower dies, CFPB rules currently require that servicers promptly identify and communicate with family members, heirs, or other parties, known as “successors in interest,” who have a legal interest in the home. Today’s proposal would expand the circumstances in which consumers would be considered successors under the rules. The expanded circumstances include when a property is transferred after a divorce, legal separation, through a family trust, between spouses, from a parent to a child or when a borrower who is a joint tenant dies. The proposal also ensures that those confirmed as successors generally receive the same protections under the CFPB’s mortgage servicing rules as the original borrower. Such protections include the right to get information about the loan and right to the foreclosure protections.
  • Require servicers to notify borrowers when loss mitigation applications are complete: When a borrower completes a loss mitigation application, key foreclosure protections take effect. If consumers do not know the status of their application, they cannot know the status of their foreclosure protections. The proposal would require servicers to notify borrowers promptly that the application is complete, so that borrowers know the status of the application and their protections.
  • Protect struggling borrowers during servicing transfers: When mortgages are transferred from one servicer to another, borrowers who had applied to the prior servicer for loss mitigation may not know where they stand with the new servicer. The proposal clarifies that generally a transferee servicer must comply with the loss mitigation requirements within the same timeframes that applied to the transferor servicer. If the borrower’s application was complete prior to the transfer, the new servicer generally must evaluate it within 30 days of when the prior servicer received it. For involuntary transfers, the proposal would give the new servicer at least 15 days after the transfer date to evaluate a complete application. If the new servicer needs more information in order to evaluate the application, the borrower would retain some foreclosure protections in the meantime.
  • Clarify servicers’ obligations to avoid dual-tracking and prevent wrongful foreclosures: The rules currently prohibit a servicer from proceeding to foreclosure once they receive a complete loss mitigation application from a borrower more than 37 days prior to a scheduled sale.  However, in some cases, borrowers are not receiving this protection and servicers’ foreclosure counsel may not be taking adequate steps to delay foreclosure proceedings or sales.  The Bureau is proposing to clarify what steps servicers and their foreclosure counsel must take to protect borrowers from a wrongful foreclosure sale. The Bureau is proposing that servicers who do not take reasonable steps to prevent the sale must dismiss a pending foreclosure action. The proposed clarifications would aid servicers in complying with, and assist courts in applying, the dual-tracking prohibitions in foreclosure proceedings to prevent wrongful foreclosures.
  • Clarify when a borrower becomes delinquent: Several of the consumer protections under the Bureau’s rules depend upon how long a consumer has been delinquent on a mortgage. Today’s proposal would clarify that delinquency, for purposes of the servicing rules, begins on the day a borrower fails to make a periodic payment. Under the proposal, when a borrower misses a payment but later makes it up, if the servicer applies that payment to the oldest outstanding periodic payment, the date of delinquency advances. The proposal also would allow servicers the discretion, under certain circumstances, to consider a borrower as having made a timely payment even if the borrower’s payment falls short of a full payment by a small amount. The increased clarity will help ensure borrowers are treated uniformly and fairly.
  • Provide more information to borrowers in bankruptcy: Currently, servicers do not have to provide periodic statements or loss mitigation information to borrowers in bankruptcy. The proposal would generally require servicers to provide periodic statements to those borrowers, with specific information tailored for bankruptcy. Servicers also currently do not have to provide certain disclosures to borrowers who have told the servicer to stop contacting them under the Fair Debt Collection Practices Act. The proposal would require servicers to provide written early intervention notices to let those borrowers know about loss mitigation options.

The proposal would make additional changes to the mortgage servicing rules. These changes include providing flexibility for servicers to comply with certain force-placed insurance and periodic statement disclosure requirements. The changes would clarify several early intervention, loss mitigation, information request, and prompt crediting of payments requirements, as well as the small servicer exemption. Further, the proposal would exempt servicers from providing periodic statements under certain circumstances when the servicer has charged off the mortgage.

Further details about today’s proposal can be found in the summary: http://files.consumerfinance.gov/f/201411_cfpb_summary_mortgage-servicing-proposed-rule.pdf

Today’s proposed rule and disclosures will be open for public comment for 90 days after their publication in the Federal Register.

A copy of the proposed rule, which includes information on how to submit comments, is available at: http://files.consumerfinance.gov/f/201411_cfpb_proposed-rule_mortgage-servicing.pdf

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The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov

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Wednesday, November 19, 2014

Do you remember when you were a kid? It’s probably harder for some of us than for others but thinking back, I remember thinking that time was just so slow. It took forever for the holidays to come. However as adults, I personally can’t believe the Thanksgiving is next Thursday. After that, Christmas and New Years are just around the corner. Now is the time you should be thinking about pulling out your business plan that you created at the end of last year. Most people haven’t looked at it all year. Are you on target to hit  your goals? If not, how far off are you from hitting your goals? Most likely, it is too late to get back on track for 2014 but you have the ability to focus on making 2015 your best year ever!

CAMP Sales & Marketing 

While you are working on your business plans and scheduling projects for next year, make sure you schedule time for the Sales & Marketing Convention. It will be held in Universal City on January 29 – 30, 2015. We are planning an amazing line up of speakers and exhibitors. There will be break out sessions for you if you want product specific training. The sessions will include marketing tips, pitfalls and what to look for when doing these loans. For example, one of the product sessions will include a VA loan session. I was teaching a CE class yesterday in San Jose and the majority of the class didn’t realize they could do a VA loan up to $1,050,000 in most of the Bay Area. There are many changes to VA loans (to make them easier to do) and they are one of the most under utilized loans.  Click here to check out the event details.

Have you taken the NAMB survey yet?

We REALLY need your voice NOW!  You can help make a difference for your industry without taking a lot of time. NAMB is seeking your help so they may tell your story. The CFPB is looking for data from the mortgage industry in order to make favorable adjustments to the stringent regulatory changes that are currently in place. Now is not a time to say, “My voice doesn’t matter.” They need your input in a survey that shouldn’t take more than 5 or 10 minutes of your time. You can estimate your numbers if you cannot remember the exact numbers.  Please help out by completing the survey TODAY!

Here is the link:  Click Here

The major data points we would like to see are:

  • TOTAL number of Loans closed in YTD.
  • TOTAL Dollar Volume of your loans YTD.
  • TOTAL amount of Mortgage rebates that you gave to the customer to help pay their closing costs YTD. This amount will be the sheet price of the loan, minus your Lender Comp, minus any hits and this would be the net amount that you would have given back to the customer to help pay fees and reduce closing cost

Legislative Update

All is still quiet on the legislative front. This is the time the legislators are formulating new bills (state and federal). The 2014 Elections are now over. Do you have a new Legislator? Now is  the time to schedule a meeting with them. You want to introduce yourself as the housing expert in your area. It’s important for them to know who you are and that they can reach out to you if they have questions regarding the housing industry. If you have never met with your legislator, reach out to your Chapter Government Affairs Chairperson and go with them. If you’re in Southern California, reach out to Scott Griffin to have him go with you. In Northern California, either George Duarte or myself can go with you.

CAMP Sales & Marketing

January 29-30, 2015 I Universal City, California

The 2015 Sales & Marketing Conference showcases the products, companies, and networking that is necessary to succeed in today’s mortgage industry.

Click Here for Event Information

 

CAMP Member Online Training

Receive Great Membership Discounts!

Do you hate to sit in an all-day class? Are you too busy to give up just One day of your time? Do you still need your NMLS CE? Check out our new CAMP benefit, Online Training: CAMP members now receive discounted rates for online NMLS training.

Click Here for More Details

Upcoming Chapter Events:

TODAY

San Francisco Peninsula CAMP is hosting “Everything you need to know about Credit Scoring and More” on Wednesday, November 19, 2014 at Dominic’s @ Oyster Point, 360 Oyster Point Blvd, South San Francisco, CA. For more information, contact Chapter President Donna Aldrich at 415-345-4320 or donna@donnaaldrich.com

Silicon Valley CAMP is hosting their holiday lunch on Thursday, December 4, 2014 at Maggiano’s Little Italy, Santana Row, 3055 Olin Avenue, Suite 1000, San Jose, CA 95128. Go to www.siliconvalleycamp.com for more information.

Live Chapter Continuing Education:

TODAY!

East Bay Chapter will be holding another NMLS training class on Wednesday, November 19, 2014 at 3003 Oak Road, Walnut Creek, CA. Contact Audrey 925-788-1325 or loansbyaudrey@msn.com

North Bay Chapter will be holding a final NMLS training class on Tuesday, December 2, 2014. This will be held in Petaluma. More details to follow but you can contact Rick Reith at 415-740-8834 for more info.

Silicon Valley Chapter will be holding their final NMLS training class on Wednesday,December 3, 2014This will be held at the Silicon Valley Business Center, 1900 Camden Avenue, San Jose, CA. Click here to register: Click Here

 

CAMP Statewide Calendar

If you would like me to include upcoming events please send me an email

Until next week,

Michelle Velez, President

California Association of Mortgage Professionals

shellvelez@gmail.com  I  thecampsite.org

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Monday, November 17

I hope all of you have had a great week, even though it seems that winter is here in the Midwest states. I can believe that it was in the teens in Indianapolis. However, I have to confess that I was in Palm Springs, Calif. Wednesday-Sunday where it was a warm 82 degrees each day. I was also stunned when it got dark at 5:00 p.m. every day.
I was attending the National Consumer Reporting Association (NCRA) 2014 Conference this week at the request of one of our great friends of NAMB, Terry Clemans, NCRA executive director. I had two opportunities to speak to this group, one of them as a member of a panel on MSA’s, RESPA and Integrated Disclosures, and the other as a speaker to tell the story of NAMB. I think that one of the neatest things about their conference is the small group of people who attend (about 155 total) and the closeness of these people who get it right and do work together. This small group of credit re-sellers (there are only about 50 left in the nation) must work together to make it happen and yet they are all also competing against each other for future business. I want to thank Terry for the invite and for being able to experience this Conference. I must admit, I really learned a lot from the speakers and their “marketplace” event. The keynote speaker on Thursday, Dan Lier, really opened my eyes to a few new options and motivated me to be the best that I can be.
I had a discussion with a member of this group, Jackie Drziak, as she was telling me about a situation that occurred when she was speaking with an originator. In their conversation, the originator kept referring to the customer as a file. To her, it was like they were just an inanimate object. He continued to talk with her and would constantly refer to all of his files instead of customers. Ladies and gentlemen, these people whom you are working with are people … not files. They have lives, families, children, problems, expectations and the desire to refinance or buy a new home. I think it is time to start thinking of them in that way and not just as “files.” Just my two cents worth!

We had a speaker from the U.S. Department of Housing & Urban Development (HUD) come in and talk about the potential changes that are going on in the Department. Not any real changes from what we currently know is going on, but I did learn that HUD Secretary, Mr. Julian Castro, was spending two days in Los Angeles reviewing housing areas.
On Friday, we heard from the Federal Trade Commission (FTC) on open items that are looking into having to do with violations in advertising, mailings, solicitation and others. Robert Strand, senior economist for the American Bankers Association (ABA)gave us a really optimistic view of the year to come. I think he was correct in saying that a key to 2015 is to get the Millennials to look at buying homes. We have noticed for the past few years that the uncertainty of the economy is what is holding some of these people from buying homes. However, the outlook for the interest rates is that they should stay pretty good for the 12 months to come.
The session by the Consumer Financial Protection Bureau (CFPB), Mr. Edwin Chow and Hoa Phan (an examiner from the CFPB), gave us good information of what they look for when they do an exam on the re-sellers of credit (consumer reporting companies). As always, it was an excellent presentation and very informative.
I met some very good people in the credit reporting business and talked about what they could be looking to do to make all of the companies that they service to be better. The NCRA Conference, although smaller than NAMB’s conference, was quaint enough that you had the ability to talk with people in the industry from a different view. I am going to suggest to the NAMB Board that we get together with the NCRA and the NAPMW (National Association of Professional Mortgage Women) to discuss items that can benefit all of our organizations. In the long run, we are all fighting for somewhat the same thing.
Just a note that we are looking for feedback to the NAMB+ programs. John Stevens, president of NAMB+, and his Board, have put together a great group of programs for the membership, but we need some feedback. Please take a few minutes to visit NAMBPlus.com and review what programs NAMB+ has and let me know. I also serve on this Board and we want to know. E-mail me at namb.ceo@namb.org with your comments and suggestions.
Until next week!

Donald J. Frommeyer, CRMS, CEO
NAMB—The Association of Mortgage Professionals
namb.ceo@namb.org www.joinnamb.com

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Wednesday, November 12, 2014

November is one of my favorite months. It is a time to honor and a time to give thanks. We are able to do that twice this month. Yesterday we celebrated the first of the two holidays in November. Veteran’s Day is a day where we honor US veterans and victims of all wars. But is one day enough?  I came across this great article that has several different ways you can honor a veteran beyond Veteran’s Day:   Click Here
Speaking of Veterans, did you know that VA loans are the best performing loans or that the maximum loan amount for a VA loan is up to $1,050,000 depending on what county your Vet is? I bring this up because you can learn more about how to do VA loans at the CAMP Sales and Marketing Conference in January. Many of you are working on your 2015 business plans. If you’re not doing VA loans now, you may want to add them to your product offerings. We will teach you how to do VA loans, what to look for, how to market them and the pitfalls you should be aware of. There have been some changes this year due to the roll out of the Qualifies Mortgage Rule. Join us in January and learn how easy it is to do a VA loan! Watch the Echo or CAMP Facebook page for more details.

Are you interested in changes from the CFPB? They are updating the Small Entity Compliance Guides for the Ability-to-Repay and Qualified Mortgage Rule and the RESPA and TILA Mortgage Servicing Rules. Are you wondering if these changes will effect you? You can review the changes that became effective on November 3, 2014 by clicking the link to the compliance guides here: Click Here

On the Legislative Front:

All quiet on the legislative front for now…CAMP is working closely with NAMB and you can click here for new legislation that is currently being worked on. The next NAMB Government Affairs phone call will be November 20, 2014. If you would like to get more involved, contact me directly.

Online Training:

New CAMP Benefit

Do you hate to sit in an all-day class? Are you too busy to give up just One day of your time? Do you still need your NMLS CE? Check out our new CAMP benefit, Online Training: CAMP members now receive discounted rates for online NMLS training.

Click Here for More Details

Upcoming Chapter Events:

TODAY

Southern Los Angeles County CAMP is hosting “How CAMP is working for you” Scott Griffin and I will be attending on Wednesday, November 12, 2014 from 11:30 to 1pm. in Long Beach. Exact location to follow. For more information, contact Chapter President, Nelson Otero 714-373-5700 or notero@firstalliedfinancialservices.com

Silicon Valley CAMP is hosting their monthly breakfast meeting on Friday, November 14, 2014 from 8:30 to 10 at Three Flames Restaurant, Banquet Room, 1547 Meridian Avenue, San Jose, CA 95125. No need to register, pay at the door.

San Francisco Peninsula CAMP is hosting “Everything you need to know about Credit Scoring and More” on Wednesday, November 19, 2014 at Dominic’s @ Oyster Point, 360 Oyster Point Blvd, South San Francisco, CA. For more information, contact Chapter President Donna Aldrich at 415-345-4320 or donna@donnaaldrich.com

Silicon Valley CAMP is hosting their holiday lunch on Thursday, December 4, 2014 at Maggiano’s Little Italy, Santana Row, 3055 Olin Avenue, Suite 1000, San Jose, CA 95128. Go to www.siliconvalleycamp.com for more information.

Live Chapter Continuing Education:

East Bay Chapter will be holding another NMLS training class on Wednesday, November 19, 2014 at 3003 Oak Road, Walnut Creek, CA. Contact Audrey 925-788-1325 or loansbyaudrey@msn.com.
North Bay Chapter will be holding a final NMLS training class on Tuesday, December 2, 2014. This will be held in Petaluma. More details to follow but you can contact Rick Reith at 415-740-8834 for more info.

Silicon Valley Chapter will be holding their final NMLS training class on Wednesday,December 3, 2014This will be held at the Silicon Valley Business Center, 1900 Camden Avenue, San Jose, CA. Click here to register: http://www.siliconvalleycamp.com/event-1780648

CAMP Statewide Calendar

If you would like me to include upcoming events please send me an email.

Until next week,

Michelle Velez, President

California Association of Mortgage Professionals

shellvelez@gmail.com  I  thecampsite.org

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Monday, November 10

This week I am speaking at the National Consumer Reporting Association (NCRA) 2014 Conference in Palm Springs, Calif. I will be speaking on a panel and then giving a speech about NAMB—The Association of Mortgage Professionals and where we were and where we currently are. It is exciting to be able to speak to some of these people about the credit agencies and the changes experienced over the past five years.
I have spoken in the past about using companies that NAMB Plus has made available to you, the NAMB member, to help you save money. One of the companies available to all of you is USA Business Lending. They specialize in commercial lending in a variety of ways. Whether it be a commercial building, a strip mall, a golf course, a church or whatever the scenario … take those phone calls and take some information, and then forward it to Mike Surber and earn yourself a fee. But, you have to register with them in order to be approved. So log on to www.nambplus.com and find the “USA Business Lending” tab in order to get approved. Now is the time to become someone who can do all types of loans.

I don’t know about you, but business is getting a little better right now. I have been meeting a lot of clients who want to become pre-qualified for a mortgage so they can go out and look for a new home now. With mortgage rates where they are, now is a great time to go out and solicit those referrals for business. Nobody wants to sit around in December and January doing nothing. We would all rather be working to get people ready for the spring. Get out and do it today!
Just think, there is less than three weeks before Thanksgiving. Where did the time go? I feel like it was just Memorial Day. Time is really flying, as my favorite time of the year is just around the corner. Being a grandpa really excites me this time of year. To see my grandsons’ eyes as they open their presents and the other activities that go on this time of year is amazing.
As you all know, the new disclosures are just around the corner. I really believe that you all need to know everything there is about this new rule so that you can share it with your base of real estate agents and become their expert. You need to get trained on this, and then start holding meetings with your group to help them through this. If you are not actively involved in this new rule, you will be behind the curve and it will be tough to get ahead of the rule. It is better to be proactive. Watch for some Webinars coming soon concerning these new rules and NAMB will keep you informed.
We are now in the renewal period for all NMLS licenses. Please make sure that you complete your renewal sooner rather than later so there are no problems keeping your license active.
Along with that, more than 50 percent of all members of NAMB will be getting e-mails that their membership is up for renewal. While you are renewing your license, why not renew your membership at the same time. Just visit www.namb.org and renew today.
And one final note … our NAMB President-Elect Rocke Andrews just spent the past week teaching a mortgage class to some very interesting people. He was in the country of Dubai, teaching the basics of mortgage lending and rules so they can do the same things in their country. I really look forward to reading about his trip in National Mortgage Professional Magazine. NAMB is now international in their education of mortgage originators and this could be the start of educating originators around the world. Good job Rocke!
Until next week!!!

Donald J. Frommeyer, CRMS, CEO
NAMB—The Association of Mortgage Professionals
namb.ceo@namb.org www.joinnamb.com

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Good afternoon,

In less than one year, the new TILA RESPA Integrated Disclosure rule will go into effect. Are you ready?

Join us on Tuesday, November 18 at 2 p.m. EST for a 60 minute webinar to answer some frequently asked questions about how to complete the new Closing Disclosure form. The webinar will be hosted by the Federal Reserve.

Register for the webinar:
philadelphiafed.org/bank-resources/publications/consumer-compliance-outlook/outlook-live/

This will be the fourth in a series of webinars to address the new rule as creditors, mortgage brokers, settlement agents, software developers, and other stakeholders work to implement it over the next year. In this session, we’ll focus on issues related to how to complete the Closing Disclosure by addressing specific questions related to rule interpretation and implementation challenges.

We hope you’ll join us!

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Federal Judge Knocks Down ‘Disparate Impact’

Author: Brian Honea  November 5, 2014

A federal judge ruled on Monday that the Fair Housing Act does not allow for so-called “disparate impact” claims, which are allegations that can be made based on neutral practices that may unintentionally have a discriminatory effect.

U.S. District Judge Richard Leon ruled on Monday that only claims of direct, intentional discrimination could be made under the Fair Housing Act, which was passed in 1968. While the Fair Housing Act does not specifically state it allows disparate claims lawsuits, courts have allowed them for years.

Leon said the belief of those in the Obama administration who interpret the Fair Housing Act to allow disparate impact claims “appears to be nothing more than wishful thinking on steroids.

The disparate impact rule in housing was issued by HUD in February 2013 and has since resulted in several multi-million dollar fair housing settlements against Bank of America, Wells Fargo, and other lenders.

One example of a disparate impact claim occurred in 2012 in Delaware, when the National Fair Housing Alliance sued Allstate over Allstate’s refusal to insure flat-roofed houses. The suit alleged that this had a discriminatory effect on low-income minorities that were most likely to live in those houses.

Leon’s ruling is a victory for opponents of the disparate impact rule such as American Insurance Association, which currently has a lawsuit pending in the U.S. District Court against HUD over a disparate impact claim.

Opponents of disparate impact have one more hurdle to clear, however. The issue of whether or not disparate impact lawsuits are allowed under the Fair Housing Act is likely to be heard in the U.S. Supreme Court sometime in the next few months. In October, the Supreme Court agreed to rule on a similar case in Texas involving allegations of the disproportionate awarding of tax credits to developers who own property in low-income minority dominated neighborhoods.

The U.S. Supreme Court has never issued a ruling on disparate impact claims.

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Wednesday, November 5, 2014

It’s November already, can you believe how fast time is flying by? Pretty soon winter will be here. I’m still waiting for rain. A couple days here and there is not going to bring us out of this drought. As the weather starts to cool, our thoughts turn to the holidays. Personally, I wish we could get through Halloween without having Christmas ads playing on the television. There is just a bit too much commercialism for my tastes. Did you know, there are only 49 days until Christmas?

Since November is here, you can now renew your NMLS License. The sooner you renew your license, the higher the likelihood your license will not lapse. Even though you pay to renew, you still  have to have it approved by either DBO or BRE by December 31st. Only 94% of the applicants have their license approved in time. Don’t let yourself be lost in the 6% that doesn’t get approved in time. To renew your license, you can log in to the NMLS website, select the state agency and the license type, pay the fees and submit a renewal request, you must also complete the required hours of continuing education prior to submission. Only two-thirds of license renewal requests are submitted in November and the NMLS is encouraging licensees to submit a renewal request by November 15th.

Some changes on Freddie Mac as noted in Bulletin 2014-18 show the following updates: Freddie Mac is removing certain restrictions on Home Possible Mortgages making credit available to more borrowers. Some of the changes include revising the maximum DTI ratio for Manually Underwritten Mortgages from 43% to 45%, allowing for Construction Conversion and Renovation Mortgages and permitting the use of gift funds to meeting minimum requirements. The changes are effective for mortgages with settlement dates on or after November 24, 2014. Freddie Mac is also permitting third-party asset verifications.

On the Legislative Front:

As a whole, it seems America has spoken and they are looking for legislators to work together on a bipartisan basis. We will see how this plays out for us as Loan Originators. Election results were still coming in when I wrote this. We are closely watching the polls for results for our candidates. At the time I wrote this, Marc Steinorth was winning the 40th District, Ted Grose was losing the 62nd District and Paul Chabot was close but losing to Pete Aguilar for the 31st District (Congressman Gary Millers Seat). On a local level, Measure G was losing. That Measure is the additional transfer tax on residential property sold within 5 years of purchase. If passed, it would propose a tax up to 24% on the total sales price of homes with 2 or more units and single-family homes with in-law units sold within 5 years of ownership.

Online Training:

New CAMP Benefit

Do you hate to sit in an all-day class? Are you too busy to give up just One day of your time? Do you still need your NMLS CE? Check out our new CAMP benefit, Online Training: CAMP members now receive discounted rates for online NMLS training.

Click Here for More Details

 

Upcoming Chapter Events:

Southern Los Angeles County CAMP is hosting “How CAMP is working for you” Scott Griffin and I will be attending on Wednesday, November 12, 2014 from 11:30 to 1pm. in Long Beach. Exact location to follow. For more information, contact Chapter President, Nelson Otero 714-373-5700 or notero@firstalliedfinancialservices.com

Silicon Valley CAMP is hosting their monthly breakfast meeting on Friday, November 14, 2014 from 8:30 to 10 at Three Flames Restaurant, Banquet Room, 1547 Meridian Avenue, San Jose, CA 95125. No need to register, pay at the door.

San Francisco Peninsula CAMP is hosting “Everything you need to know about Credit Scoring and More” on Wednesday, November 19, 2014 at Dominic’s @ Oyster Point, 360 Oyster Point Blvd, South San Francisco, CA. For more information, contact Chapter President Donna Aldrich at 415-345-4320 or donna@donnaaldrich.com

Live Chapter Continuing Education:

Inland Empire Chapter is hosting a live 8 hour NMLS class on Thursday, November 6, 2014. This will be held at the PRMG Training Room, 1265 Corona Point Court, Corona CA 92879. Huge discount for CAMP members! Register at www.iecamb.com

North Bay Chapter will be holding a final NMLS training class on Tuesday, December 2, 2014. This will be held in Petaluma. More details to follow but you can contact Rick Reith at 415-740-8834 for more info.

Silicon Valley Chapter will be holding their final NMLS training class on Wednesday,December 3, 2014This will be held at the Silicon Valley Business Center, 1900 Camden Avenue, San Jose, CA. Click here to register: http://www.siliconvalleycamp.com/event-1780648

CAMP Statewide Calendar

If you would like me to include upcoming events please send me an email

Until next week,

Michelle Velez, President

California Association of Mortgage Professionals

shellvelez@gmail.com  I  thecampsite.org

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Monday, November 3

I hope everyone had a great Halloween. I was able to spend some quality time with my daughters and grandsons and it was great. Gage (four-years-old) went as a zombie, and Jack (three-years-old), went as Iron Man. What a great time we had. We now begin the two months that are really about kids, so make sure you enjoy your kids and grandkids.
As most of you know, our businesses thrive on positive referrals from clients, colleagues and friends, both in and out of the industry. I want to express my sincerest gratitude to everyone who has shown confidence in me by referring business my way, particularly as I transitioned to a new company earlier this year. However, two weeks ago, in a haste to complete my weekly Monday Morning Messenger, I inadvertently used the message to promote myself and my business in the article. That was not my intention, and for this, I sincerely apologize to the Board of Directors of NAMB and to you, my readers.

Since the month of November is here, we are now in the renewal period for your NMLS renewal. Please do not wait until the last minute. Get you education completed today and get your renewal completed as soon as possible. This is not one of those items that you can procrastinate about. DO IT TODAY!
If you have the chance, go to the Consumer Financial Protection Bureau (CFPB) Web site and look at the changes that are coming next year for the Integrated Disclosures. I have been talking to my real estate agents about this, and am trying to make myself someone who they can come to for information. As I told them this week, “This is not something that just impacts the mortgage part of the transaction, all areas need to know how this will affect their business and they need to be informed. You also need to make sure that your customers understand this, as it will be a problem if everyone is not on the same page. NAMB will be putting together a Webinar for the first quarter of next year to begin to get you completely in the loop.
Last week, I asked all of you to complete the survey that we are doing to gather information for the CFPB. We had many complete it, but we are still short responses. So I need all of you who are employees of a company to take this to your owner or manager and have them go on and complete it. We need it done now! Here is the repeat of last week’s request:

I NEED ALL OF YOU TO PAY ATTENTION TO THIS ….VERY IMPORTANT!!

NAMB is currently working on a survey that we need everyone to complete. As of Thursday, Oct. 30, we only have about 292 people who have answered this survey and we need a lot more responses, like 500-plus more. This is information that we are gathering to present to the CFPB. Please understand that we will not release the name of the company on the report, but we need to have this information for the validity of the report. Please take just five minutes of your time and complete this survey now. The link to access the survey can be found here.

Last week, I also sent information about UPS and the savings you can get by using our Meridian One program. We are trying to make it easier for you to stretch your dollar. Go to the NAMB+ Web site and see the many other savings you as members of NAMB are eligible for. If you are a member of NAMB, you can sign into the NAMB+ Web site by using your NAMB Member Number as the User Name. Your Password for the NAMB+ site is the first initial of your first name (capitalized) and your last name with the first letter of the last name capitalized as well. Remember your password is case-sensitive. For example, a generic Password may be JSmith. If you are not a member of NAMB, please visit www.namb.org and join today in order to gain access to the many benefits offered by NAMB+ to the NAMB membership.

Until next week!

Donald J. Frommeyer, CRMS, CEO
NAMB—The Association of Mortgage Professionals
namb.ceo@namb.org www.joinnamb.com

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