CAMPs REAL TIME LEGISLATIVE INFORMATION UNDER THE DOME

House Passes Bill to Fix Privilege Waiver Problem for Nonbanks

Posted: 27 Aug 2014 11:52 AM PDT

Keith R. Fisher

A bill (H.R. 5062) recently passed by the House of Representatives would amend the Consumer Financial Protection Act (the CFPA), which is Title X of the Dodd-Frank legislation, to provide protection against waiver of state and federal law privileges for nondepository institutions supervised by the CFPB.

Entitled the “Examination and Supervisory Privilege Parity Act of 2014,” the bill received strong support from the American Financial Services Association (AFSA). The bill provides anti-waiver protection for “the sharing of information” with federal banking regulators, state banking regulators, or state regulators that “license, supervise, or examine the offering of consumer financial products or services.” Specifically, H.R. 5062 would amend Dodd-Frank § 1024(b)(3) as follows:

To minimize regulatory burden, the Bureau shall coordinate its supervisory activities with the supervisory activities conducted by prudential
regulators, the State bank regulatory authorities, and the State agencies that license, supervise, or examine the offering of consumer financial
products or services, including establishing their respective schedules for examining persons described in subsection (a)(1) and requirements
regarding reports to be submitted by such persons. The sharing of information with such regulators, authorities, and agencies shall not be
construed as waiving, destroying, or otherwise affecting any privilege or confidentiality such person may claim with respect to such information
under Federal or State law as to any person or entity other than such Bureau, agency, supervisory, or authority.

As drafted, the bill is not a model of clarity. For example, the added second sentence does not explicate whether it refers to the sharing of information by the Bureau or by the nonbank. Aids to construction of this language point in different directions. On the one hand, the entirety of Section 1024 is about the authority of the CFPB, and the amended § 1024(b)(3) begins with “the Bureau” as the subject of the sentence, all of which suggests that the privilege preservation relates to sharing by the Bureau. On the other hand, the introductory language at the head of H.R. 5062 announces the intention to amend the CFPA “to specify that privilege and confidentiality are maintained when information is shared by certain nondepository covered persons with Federal and State financial regulators . . . .” (Emphasis added). That suggests that it is the nonbank that must do the sharing. A third interpretation (a third hand, if you will) was uttered on the floor of the House by Rep. Shelley Caputo (R.-WV) when she said, “This bill clarifies that the sharing of information between Federal banking regulators and State agencies that license, supervise, or examine the offering of consumer financial products or services will not be construed as waiving, destroying, or otherwise affecting any privilege or confidentiality right that a person could claim.” (Emphasis added). That suggests that any kind of sharing between or among the Bureau and other Federal or State agencies, regardless of which agency initiates the sharing, would still preserve the privilege.

According to the statement submitted by AFSA in support of H.R. 5062, the bill is intended to protect a nonbank that is examined by the CFPB but does not fall under a state banking regulator’s jurisdiction from a privilege waiver if the CFPB shares privileged information with the nonbank’s state regulator.

However one interprets that second sentence, it is clear that the bill is believed necessary because these protections were not included in the legislation Congress passed in December 2012 that amended the Federal Deposit Insurance Act to provide protection against privilege waivers when privileged information is shared between or among the CFPB and federal and state bank regulators. While the majority of states give their bank supervisors authority to license various nonbank lenders, a significant number give that authority to a different state agency that would not be covered by the FDI Act provision.

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Wednesday, August 27, 2014

I would really like to acknowledge the people who were affected by the strongest earthquake to hit Northern California in 25 years. When I think back to the 1989 when Loma Prieta Earthquake hit and I remember the eerie feelings that came after that. Even though none of my family and friends weren’t hurt in the earthquake, the aftershocks made your heart pound. You still worried that even though the big one hit, would another one come soon after that? I’m keeping all those who were affected in my heart and prayers. The hardest area is Napa and Vallejo with many homes damaged. I have many friends that live and work in that area. Thank goodness that even though many of them had home damage, no one was seriously injured.

A couple of weeks ago, I made a joke about summer being over. I don’t know about you but Labor Day just snuck up on me! I can’t believe it’s this weekend. I hope you are able to take advantage of the time off and get away with friends or family and enjoy the time off. Did you know that Labor Day is actually the celebration of the American labor movement? It should be dedicated to the social and economic achievements of workers. Labor Day should be a tribute to the contributions workers have made to the strength, prosperity and well-being of their country. For all you hard working contributors, I wish you a very Happy Labor Day!

Did you know? The Consumer Finance Protection Bureau (CFPB) is looking to use technology as a way to reduce “pain Points” which are associated with the mortgage closing process. The CFPB is utilizing a three-month pilot program to explore how the increased use of technology during the closing process could impact the consumer. If you are interested in reading more and finding out who is participating  in the study, click this link: http://reversemortgagedaily.com/2014/08/25/cfpb-names-lenders-in-new-electronic-mortgage-closing-pilot-program/#more-22402

State Legislative update:

CAMP Success Story AB 1700 Reverse Mortgage

We have some great news to share as it relates to the AB1700 which is now in the Governor’s office for signature.  Your CAMP Government Affairs team has been working with the National Reverse Mortgage Lender Association (NRMLA) to make sure that this new bill which you may remember will require seniors to wait 7 days after receiving their counseling before they can begin with their loan application.  This bill really gained traction once AARP grabbed onto it and supported it not only on the Assembly level but also with our state Senators.  We noticed along with NRMLA that there was language written into the bill which would have caused a compliance obstacle with Federal law.  Your GA Team took immediate action and teamed up with NRMLA to make sure that this compliance issued was addressed and corrected before it became an obstacle for us and would interrupt our ability to offer the reverse mortgage and still remain within federal compliance – our great efforts were successful!

CAMP has a strong voice with legislators and this one more example of how CAMP is working for you.  We appreciate your support and membership.  Please remember to take a moment and sign up to become a 49′er member which ensures CAMP continues to remain strong and have a voice not only on a state level but continuing to show our strength on the Federal front.

Don’t forget…NAMB National is quickly approaching! If you have not signed up, you may want to do it this week. The room rate special expires on Saturday 8/30/14. Did I mention this is NAMB’s Silver Anniversary? You can imagine  NAMB National will be held September 13-15 at the Luxor Hotel in Las Vegas. There is a full agenda and exhibitor list at: http://nambnational.com/   You can also use that link to register.

Check out these upcoming chapter events:

TODAY!

East Bay CAMP presents “All-Star Portfolio Lender Panel” They have put together an impressive panel of experts to address industry changes, the non-QM aspects of their products, what’s new and what isn’t and what they have to offer. Arch Mortgage Insurance Company Training Room 3003 Oak Road, 1st Floor Training Room, Walnut Creek, CA 94597. Contact Bob Schwab,925-743-3517 if you have any questions.

Do you need your to take your Continuing Education? Check out these chapters who are offering the live classes:

East Bay Chapter on Friday, September 5 ,2014 at Training Room of CMG Financial, 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583. This class includes lunch. CAMP members contact Guy Schwartz, 925-983-3023 for discount code and for more information.
San Francisco Peninsula Chapter on Wednesday, September 10, 2014 at the SAMCAR Training Room, 850 Woodside Way, San Mateo, CA. Contact Donna Aldrich at donna@donnaaldrich.com for more details.
North Bay Chapter on Tuesday, September 16, 2014 at Luchessi Park – Petaluma Community Center, 320 N McDowell Blvd, Petaluma. Contact Rick Reith at rick@amex.net for more details

North LA Chapter on Thursday, September 18, 2014 Location to be determined. Contact Gene Lanier at glanier@gmail.com for more details.

Silicon Valley Chapter on Thursday, September 25th 2014 at KeyPoint Credit Union, 2805 Bowers Avenue, Santa Clara CA 95051. Register online at www.siliconvalleycamp.com

San Gabriel Valley Chapter on Tuesday, October 21, 2014. Contact Jesse Hernandez at JHernandez@ires.com for more details.

Keep in mind, registration for these classes begin at 8 and the class will start promptly at 8:30am. If you are late, you may not be able to take the class.

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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FHFA House Price Index Shows Gains for Twelve Consecutive Quarters

U.S. House Prices Up 0.8 Percent in Second Quarter

FOR IMMEDIATE RELEASE
8/26/2014
Washington, DC – The Federal Housing Finance Agency (FHFA) announced today that U.S. house prices rose 0.8 percent in the second quarter of 2014, according to its purchase-only, seasonally adjusted House Price Index (HPI).  This is the twelfth consecutive quarterly price increase in the HPI.

The FHFA HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.  Compared with last year, house prices rose
5.2 percent from the second quarter of 2013 to the second quarter of 2014.  FHFA’s seasonally adjusted monthly index for June was up 0.4 percent from May, marking seven consecutive monthly increases.

“The extraordinary price appreciation observed over the last few spring seasons was not evident in the second quarter of this year.  However, house price appreciation for the nation as a whole remained positive,” said FHFA Principal Economist Andrew Leventis. “FHFA’s data indicate that house price appreciation in the quarter was near or below the baseline rate of inflation in most states.”

FHFA’s expanded-data house price index, a metric that adds transaction information from county recorder offices and the Federal Housing Administration to the HPI data sample, rose 1.3 percent over the prior quarter.  Over the last year, that index is up 6.2 percent.  For individual states, price changes reflected in the expanded-data measure and the traditional purchase-only HPI are compared on pages 17-19 of this report.

Significant Findings

  • The seasonally adjusted, purchase-only HPI rose in 40 states during the second quarter of 2014, down from 42 states and the District of Columbia during the first quarter of 2014. The top annual appreciation was in: 1) Nevada, 2) California, 3) District of Columbia, 4) North Dakota, and 5) Arizona.
  • Of the nine census divisions, the Pacific division experienced the strongest increase in the second quarter, posting a 1.3 percent quarterly increase and a 9.8 percent increase since last year. House prices were weakest in the East South Central division, where prices decreased 0.1 percent from the prior quarter.
  • As measured with purchase-only indexes for the 100 most populated metropolitan areas in the U.S., second quarter price increases were greatest in the Winston-Salem, NC Metropolitan Statistical Area (MSA) where prices increased by 4.6 percent. Prices were weakest in the Birmingham-Hoover, AL MSA, where they fell 4.9 percent. Positive quarterly appreciation was recorded in 74 of the 100 MSAs.
  • The monthly seasonally adjusted, purchase-only index for the U.S. has increased for seven consecutive months and 23 of the last 24 months (it decreased in November 2013).
  • The Pacific and Mountain census divisions—the two divisions that saw the greatest price increases last quarter—continued to decelerate.

FHFA’s “distress-free” house price indexes, which are published for 12 large metropolitan areas (page 32), have recently reported lower quarterly appreciation than FHFA’s traditional purchase-only indexes.  In half of the areas covered, the series—which removes short sales and sales of bank-owned properties—shows lower appreciation over the last quarter than the purchase-only series.  During the last year, the share of Fannie Mae and Freddie Mac mortgages financing distressed sales has fallen in all but two areas covered by the FHFA indexes.

The complete list of state appreciation rates is on pages 14-15.  The list of metropolitan area appreciation rates computed in a purchase-only series is on pages 29-31.  Appreciation rates for the all-transactions metropolitan area indexes are on pages 35-48.

Background

FHFA’s purchase-only and all-transactions HPI track average house price changes in either repeat sales or refinancings on the same single-family properties.  The purchase-only index is based on more than 7 million repeat sales transactions, while the all-transactions index includes more than 51 million repeat transactions.  Both indexes are based on data obtained from Fannie Mae and Freddie Mac for mortgages originated over the past 39 years.

Note

  • The next monthly HPI report, which includes data through July 2014, will be released September 23, 2014.
  • The next quarterly HPI report, which will include data for the third quarter of 2014 and monthly data for September, will be released November 25, 2014.
  • FHFA has published its 2015 House Price Index release dates.
  • Follow @FHFA on Twitter​ for updates on the FHFA House Price Index.
  • The FHFA HPI has a new location on the website: www.fhfa.gov/hpi.

Link to Report

###

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.6 trillion in funding for the U.S. mortgage markets and financial institutions.

Contacts:

Stefanie Johnson (202) 649-3030​ / ​Corinne Russell (202) 649-3032

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Monday, August 25

I am starting off this week with some very exciting news for members of NAMB—The Association of Mortgage Professionals … NAMBPLUS.COM is now open!
The NAMB+ Board has been working very hard on this project, and I am pleased to announce that you can now access this fantastic, NAMB members only, benefit for you to use. This Web site includes all of the companies that are giving some type of benefit to our members with cost savings for their products. Yes, you might not need for all of these services, but one of the things that I had in mind when NAMB+ was created was to give members some type of benefit that can help you as an originator or you as an owner. Now, this site is a secured site and is available for use by members of NAMB.
Here are the instructions for you to be able to access the NAMB+ Web site. Your User Name to get in is your first initial and last name. Example, Don Frommeyer as a member would enter in “dfrommeyer.”

The Password is your member number (example: 3452654). So what if you do not know your Member Number? You will need to sign into the NAMB.org Web site and go into the “Membership” section to get your membership number. That is all you have to do. All of the contact information is there for you to begin using this new member benefit. Let us know how you like it!
We are less than three weeks from NAMB National in Las Vegas and we are currently well over 2,000 registrants for the event. I am really excited that we are again growing this to such a large proportion. We have blown out our room reservations and the hotel is still taking them and for the same attendee rate until they are at capacity. If you are like most, you have waited. If you intend on going, I would advise you to register today as rooms are going very fast. Make sure that when you register, you register for the Awards Dinner as well. There are going to be some great surprises for all, and we get to announce the NAMB Mortgage Professional of the Year … who will it be this year?
It has been a nice to be able to speak with customers again. I think this is the part of the business that I have missed the most with all of the traveling I do as president of NAMB. However, I will be in Florida for the Florida Association of Mortgage Professionals 2014 Convention & Trade Show, Sept. 4-5. So if you are in the Orlando area, visit www.famb.org to register for an excellent conference. Brian Webster, program manager for the Consumer Financial Protection Bureau (CFPB) and Jim Dunkerly, president of First Funding, will be on a panel discussing the mini-correspondent situation … a real must-see if you are there.
If you cannot make it to Orlando, Mr. Webster and Mr. Dunkerly will be doing the same panel Monday, Sept. 15 at NAMB National, right after the Government Affairs Panel at 1:00 p.m. This is breaking news and you will need to be there … yes … the CFPB will be present at NAMB National on Sept. 15.
I will also be traveling on Thursday, Sept. 11 to speak to the members of the Maine Association of Mortgage Professionals (MAMP) at the Maine Mortgage Expo 2014. I will speak in the morning and then hop on a plane for NAMB National in Las Vegas.
I want to thank all of you for everything that you as members of NAMB are doing to make this association successful. I am truly grateful to all of you for your belief in me and in our Board … thank you!

Until next week!!!

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

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The Real Difference Between a Prequalification and a Preapproval

by Amy Tierce
On the Consumer Financial Protection Bureau’s website, the regulator gives its answer to the question, “What’s the difference between being prequalified and preapproved for a mortgage?”

The CFPB’s definition doesn’t really tell the full story — real estate professionals need to review any letter representing a buyer’s ability to obtain a mortgage with great care and scrutiny, no matter what the letter is called.

Today, some banks have made the decision to not issue pre-approval letters due to the cumbersome regulatory environment, so they may call their letter a pre-qualification. Lenders licensed as mortgage brokers can’t issue a pre-approval letter because they aren’t licensed to approve loans. Some lenders issue letters based on a simple conversation with the borrower and call them pre-approvals; some lenders have borrowers submit information though a website that churns out pre-approval letters without any lender review; some lenders issue letters only after a thorough investigative process.

What matters is the process used to get the answer — not what the letter is called, but what it says.

When evaluating a pre-qualification or a pre-approval letter on behalf of a seller, this is what you need to look for.

Does the letter contain the following?

•       The purchase price

•       The loan amount

•       An expiration date

•       Names and addresses of all buyers

•       Percent of the down payment

•       Loan type (Conventional, Jumbo, USDA, FHA, VA, etc.)

•       Loan term (fixed or adjustable, 30 years or 15 years, etc.)

•       Whether or not the transaction is dependent upon the sale of another property

•       Status of the property being sold (on market, under agreement)

•       Contact information for the loan officer and his or her Nationwide Mortgage Licensing System number

•       Lender name and licensing details

Next, you need to ask yourself an important question: “Do I know and trust this loan officer/institution?” Do not hesitate to call the loan officer and interview them on their process.

If the letter doesn’t state what documentation has been reviewed as a part of the process, then you should ask if the loan officer has reviewed the following:

•       Two years of federal tax returns

•       Two years of W-2′s

•       One month of paystubs

•       Two months of asset statements checking, savings, investments to verify the source of down payment.

•       Credit report

•       Any additional documentation needs that arise out of the client interview

Don’t take a letter from an unknown lender at face value.  A high percentage of purchase transactions fall apart due to financing issues.

It doesn’t matter what the letter is called — it matters that the lender and the buyers worked together to ensure that the transaction will close on time. It matters that the lender is thorough, detailed and transparent about their process.

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Wednesday, August 20, 2014

Happy Wednesday! I’ve heard some feedback that many of you thought our weekly messenger was the same as NAMBs. So we decided to change the date for our message. With work and our lives being so busy and always crazy, I wanted to share a story with you that showed up recently on Yahoo! Finance. The article is entitled 8 Jobs that Can Make You Happy AND Rich. Click here to check out the article: http://finance.yahoo.com/news/8-jobs-happy-rich-133422279.html You might find some interesting data there.

Did you see that DU Version 9.1 made some changes over last weekend for loan case files submitted or resubmitted to DU on or after the weekend of August 16, 2014.

The changes in this release include:

  • Foreclosure message updates
  • Deed-in-lieu of foreclosure and preforeclosure sale message updates
  • Charge-off policy message addition
  • 2014 Area Median Income limits
  • Special Feature Code retirement
  • Updates to align with the Selling Guide

Click here to read further information about the updates:

https://www.fanniemae.com/content/release_notes/du-do-release-notes-08162014.pdf

State Legislation:  AB 2416 Liens:  Laborers and employees – Contact your State Senator to oppose this bill

Most of you know that under existing law, trades people and others who have conducted work to improve a property have the right to record a mechanics lien against the property for payment for that work. This bill is NOT like a mechanics’ lien. If an employee has a wage dispute with their employer there are multiple legal remedies available to them to seek fair compensation. This is a new and different remedy.

AB 2416 seeks to create a new wage lien, without the procedural protections of the mechanics lien so that an employee may record a lien against any property owned by the employer, even property that has NO connection to the dispute. The new rule purports to exempt principal residences, but the bill invites blanket recordings that will cover all properties.

Talking Points

*         Property owners are denied due process. This bill allows an employee to record a lien against an employer’s property without adequate notice or opportunity to contest the claim before the lien attaches.

*         AB 2416 invites misuse by unscrupulous creditors of an employee. Allowing unscrupulous creditors to take over the employee’s wage claim, without even the need for a garnishment order, invites employees (and property owners) to be victimized twice.

*         Innocent property owners are unfairly burdened. The bill allows a lien against commercial property of a landlord whose tenant has a dispute with one of his or her employees.

*         AB 2416 allows an employee’s wage dispute to cloud title on ALL property owned by an employer even though the dispute does not involve the property, and even though there has been no hearing on the issue.

*         There are already existing legal remedies for wage disputes. Between arbitration, grievance processes, and lawsuits, employees already have sufficient legal options at their disposal to address wage disputes without chilling the availability of mortgage finance and unnecessarily clouding title.

Check out these upcoming chapter events:

 

TODAY!
Sacramento Chapter presents “Current Marketing Strategies to Double Your Business. Sacramento Association of Realtors, 2003 Howe Avenue, Sacramento, CA. This event is today from 4pm to 8pm.

 

Wednesday August 27, 2014 from 4:00 pm to 6:00 pm

East Bay CAMP presents “All-Star Portfolio Lender Panel” They have put together an impressive panel of experts to address industry changes, the non-QM aspects of their products, what’s new and what isn’t and what they have to offer. Arch Mortgage Insurance Company Training Room 3003 Oak Road, 1st Floor Training Room, Walnut Creek, CA 94597. Contact Bob Schwab,925-743-3517 if you have any questions.

 

Do you need your to take your Continuing Education? Check out these chapters who are offering the live classes:

 

San Francisco Peninsula Chapter on Tuesday, August 26, 2014 at Opera Plaza, Community Room, 601 Van Ness Avenue, Mezzanine Level, San Francisco CA and on Wednesday, September 10, 2014 at the SAMCAR Training Room, 850 Woodside Way, San Mateo, CA. Contact Donna Aldrich at donna@donnaaldrich.com for more details.
East Bay Chapter on Friday, September 5,2014 at Training Room of CMG Financial, 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583. This class includes lunch. CAMP members contact Guy Schwartz, 925-983-3023 for discount code and for more information.

 

North Bay Chapter on Tuesday, September 16, 2014 at Luchessi Park – Petaluma Community Center, 320 N McDowell Blvd, Petaluma. Contact Rick Reith at rick@amex.net for more details

 

North LA Chapter on Thursday, September 18, 2014 Location to be determined. Contact Gene Lanier at glanier@gmail.com for more details.

 

Silicon Valley Chapter on Thursday, September 25th 2014 at KeyPoint Credit Union, 2805 Bowers Avenue, Santa Clara CA 95051. Register online at www.siliconvalleycamp.com

San Gabriel Valley Chapter on Tuesday, October 21, 2014. Contact Jesse Hernandez at JHernandez@ires.com for more details.

 

Keep in mind, registration for these classes begin at 8 and the class will start promptly at 8:30am. If you are late, you may not be able to take the class.

 

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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CFPB publishes annual CARD Act, HOEPA and QM adjustments

Posted: 18 Aug 2014 08:39 AM PDT

Barbara S. Mishkin

The CFPB has published a final rule regarding various annual adjustments it is required to make under provisions of Regulation Z (TILA) that implement the CARD Act, HOEPA, and the ability to repay/qualified mortgage provisions of Dodd-Frank.  The adjustments made by the final rule are effective January 1, 2015.

The CARD Act requires the CFPB to calculate annual adjustments of (1) the minimum interest charge threshold that triggers disclosure of the minimum interest charge in credit card applications, solicitations and account opening disclosures, and (2) the fee thresholds for the penalty fees safe harbor.  The calculation did not result in a change to the current $1.00 minimum interest charge threshold.  However, in the final rule, the CFPB increased the current penalty fee safe harbor of $26 for a first late payment and $37 for a subsequent violation within the following six months to, respectively, $27 and $38.

HOEPA requires the CFPB to annually adjust the total loan amount threshold that determines whether a transaction is a high cost mortgage when the points and fees are either 5 percent or 8 percent of such amount.  In the final rule, the CFPB increased the current dollar thresholds from, respectively, $20,000 to $20,391, and $1,000 to $1,020.

Pursuant to its ability to repay/QM rule, the CFPB must annually adjust the points and fees limits that a loan must not exceed to satisfy the requirements for a QM.  The CFPB must also annually adjust the related loan amount limits.  In the final rule, the CFPB increased these limits to the following :

  • § For a loan amount greater than or equal to $101,953 (currently $100,00), points and fees may not exceed 3 percent of the total loan amount
  • § For a loan amount greater than or equal to $61,172 (currently $60,000) but less than $101,953 (currently $100,000), points and fees may not exceed $3,059 (currently $3,000)
  • § For a loan amount greater than or equal to $20,391 (currently $20,000) but less than $61,172 (currently $60,000), points and fees may not exceed 5 percent of the total loan amount
  • § For a loan amount greater than or equal to $12,744 (currently $12,500) but less than $20,391 (currently $20,000), points and fees may not exceed $1,020 (currently $1,000)
  • § For a loan amount less than $12,744 (currently $12,500), points and fees may not exceed 8 percent of the total loan amount
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Monday, August 18

Well we are only four weeks away from the start of NAMB National’s 40th Anniversary Party. Are you registered to come? Do you have your hotel reservations locked in? Right now, we have more than 2,000 registered to come to the event. My goal for registrations was 2,600, and it looks like we will reach that mark. This is great news as just four years ago, we were struggling to get 400 people.
Times are better, and to be frank, we are a better breed of originator today. I feel that those who are still around have been through the war and we are surviving. Membership is up and we have tripled our number of Lending Integrity Seal of Approval members. I want to thank all of the members of the Membership Committee for working so hard to get this to these numbers to where they are today.
Last week, there was a statement made by Alex Sanchez, president and CEO of the Florida Bankers Association about mortgage brokers. The statement was wrong and we had numerous rebuttals that were very professional and to the point by a lot of people. I am very proud that the rebuttals were not threatening or out of line. NAMB itself sent a letter to Mr. Sanchez, and as of today, I have not received a response. But I am sure I will. The copy of my letter should be on our Facebook page very soon.

Monday, Sept. 15 at NAMB National is going to be great. First, we are having roundtable discussions for loan originators to learn more about products and programs from lenders. This will be starting at 10:00 a.m., and at 1:00 p.m., we are going to have a Government Affairs Panel that will go over what we are working on and will bring you up-to-date on our meetings with the Consumer Financial Protection Bureau (CFPB). I am working on having an additional panel at 1:45 p.m. to discuss the mini-correspondent situation that is causing great concern in our industry. You are not going to want to miss this fantastic event. I will let you know about who will be on this panel next week. I promise you that you will not be disappointed. This will be an event that will make NAMB National worth the trip, but you need to make sure you register for the event as only those who are registered will be granted entry.
Just a note to everyone, please change your e-mails for me to donald.frommeyer@gmail.com going forward. This e-mail and president@namb.org are the only two e-mail addresses that now work for me.
If you are a member of the NAMB Delegate Council, you should have received your Delegate Book from John Councilman and NAMB. It is important that you read this book and familiarize yourself with the information within it. That will make your meeting better and you will be prepared for the presentations. If you are a Delegate Council participant and have not registered yet for the event, please contact John Councilman at jlc@amcmortgage.com and talk with him directly. He will discuss the book and talk with you about options. You need to do this immediately as we are running out of time.
I have made the decision to continue writing my Monday Morning Messenger going forward. It has had a great response over this past year, and I feel that I can still bring good information to you about our industry. I will have some exciting news to share with all of you in about two weeks, so stay tuned.
I want to thank all of you for everything that you, as members of NAMB—The Association of Mortgage Professionals, are doing to make this association successful. I am truly grateful to all of you for your belief in me and in our Board. Thank you.

Until next week!!!

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

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FHFA Reveals Key Details on Future of GSE Securities

by Brian Collins

AUG 12, 2014 4:11pm ET

— The Federal Housing Finance Agency provided its first specifics Tuesday on how it intends to create a single security for mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac.

In a proposal open for public comment, the agency said it wants to draw on elements of both government-sponsored enterprises’ existing securities. The plan would create a single security that essentially mirrors most of Fannie’s pooling features, with “most of the disclosure framework” used by Freddie, the agency said.

The FHFA is seeking to end the pricing disparity between the two GSEs’ securities. Currently, Freddie MBS trades at a discount to Fannie’s, forcing Freddie to compensate investors for the difference in price and reducing its revenue. Freddie also charges a lower guarantee fee than Fannie to mitigate the impact on lenders.

FHFA Director Mel Watt said earlier this year that this pricing problem can no longer be ignored.

“Moving toward a single common security will improve liquidity in the housing finance markets,” the former North Carolina congressman said May 13 during his first major speech. “It would also reduce costs to the enterprises, particularly Freddie Mac. FHFA believes, however, this effort to create single security will take several years.”

The agency said it wants to ensure any changes won’t disrupt the TBA [To Be Announced] market where Fannie and Freddie securities are sold.

“FHFA is requesting public input on all aspects of the proposed single security structure and is especially focused on issues regarding the transition from the current system to a single security,” the agency said in a press release. “Specific questions FHFA is asking relate to TBA eligibility, legacy Fannie Mae and Freddie Mac securities, potential industry impact of the Single Security initiative, and the risk of market disruption.”

The comment period on the proposed single security structure ends Oct. 14.

Freddie chief executive Donald Layton recently told reporters that his company is “doing a better job” of minimizing the spreads between Fannie and Freddie securities.

“We worry about prepayment speeds being comparable to Fannie’s and things like that,” Layton said in discussing Freddie’s second quarter earnings.

Layton also noted a common security could be issued before Fannie and Freddie complete work on a common securitization platform. The single security “can be done through it or without it,” he said.

The two GSEs started work on a common securitization platform under the previous FHFA director Edward DeMarco.

In a statement issued after the FHFA’s release, Dave Lowman, a senior vice president at Freddie, called the proposal a “milestone on the path towards a more competitive and resilient housing finance system.

“We share FHFA’s vision of a more liquid and transparent single security that can make the secondary market even more efficient,” Lowman said.

The Mortgage Bankers Association also welcomed the plan.

“The move to a single security will enable the two GSEs to compete on a more level playing field, and this competition will be beneficial to both homebuyers and lenders,” said David Stevens, the group’s president and chief executive officer, in a statement. “For more than two years, we have been talking to the GSEs, policymakers and a broad array of stakeholders about the widespread benefits of a fungible, pooled, TBA-eligible GSE securities market. Today’s announcement takes what many told us was an unworkable fantasy and brings it closer to reality.”

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FHFA takes next step to single GSE bond

The proposal calls for a “Single Security” that would encompass many of the features of the existing Fannie and Freddie securitization structure, which the FHFA said is necessary to “achieve maximum market liquidity.” The announcement today provided key details on what that bond may look like, but the FHFA did not proved a specific timeline for implementation.

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