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Join CAMP today to take advantage of our new membership benefits, discounts on education, webinars, and more!

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Wednesday, January 28, 2015

With so much going on in our industry right now, you really don’t want to miss out on the updates that will be providing at the Sales & Marketing Conference in Universal City, California this week. We have a fantastic lineup of speakers who will give you the latest updates on four key products in our industry and compliance (loan originators, do you know about the upcoming changes this year).  It is also CAMP’s Silver Anniversary! I hope to see you at the event later this week. If you are not attending the conference this week, I would love some input from you as to speakers you would like at the Summer Convention. What would you like to see? Who would you like to speak at our event? What activities would you like to see at the event? Our Summer Convention will be held in Manhattan Beach, California in August later this year. I really enjoy hearing from you. Email me at shellvelez@gmail.com with any questions or comments you may have. This is your association and I look forward to any input from you.

CAMP/NAMB Joins the MBA In Expressing Concern Over CFPB’s New “Rate Checker”

Last week I told you about the CFPB’s new tool on their website. I’m asking for your help. It is really easy…cut and paste the “call to action” comments below and send it off in an email. It should only take you a minute.

The tool is designed to help consumers become better informed of rates and other costs when shopping for a mortgage. They introduced the “rate Checker” tool that is supposed to allow consumers to see what interest rates people with similar financial situations have been offered. According to the CFPB, this information is from actual lenders and is updated daily. CAMP supports the thought intended but this tool is falling short of its goal. Since the tool doesn’t account for closing costs, APR, Loan Level Price Adjustments or other key factors it will do nothing more than confuse your customers.

Watch the Call to Action Video

CALL TO ACTION:  The “rate checker” web site should be taken down immediately before a consumer is harmed by the false rate information dispensed.  CAMP AND NAMB requests that all Mortgage Professionals let their voice be heard. Please email info@consumerfinance.gov and remind them:

1) The “Rate Checker” site should be taken down because it fails to mention APR, closing costs, and other important information consumers need to know

2) The “Rate Checker” site does not contain rate quotes from licensed mortgage brokers or independent mortgage bankers

3) The “Rate Checker” was released without any input from industry stakeholders such as CAMP/NAMB, MBA, and NAR. If the CFPB truly wants to get it right, they should work with the industry for complete accuracy and fairness.

Please CC your congressman, info@ca-amp.org and governmentaffairs@namb.org on the email.

Make sure to share with your representatives, colleagues, referral partners, and clients. It is important for everyone’s voice to be heard on this topic.

Legislative Update:

Your Government Affairs Chairs met with members of the state legislature. The purpose  of these meetings was to get out and introduce ourselves to new legislators.  We wanted them to know that we are the lending experts in their districts and to ensure the legislators remember to call us if any housing legislation passes their desk. The meetings went well and our members were received positively.  We will be planning to do the same for our federal legislators prior to our visit to Washington DC in April. We are working on the talking points and will have them available closer to the NAMB Legislative Conference. Mark your calendars, the conference will be April 12-14, 2015. More details will be coming soon.

Join NOW!

How can you help those who are trying to help you? Well, not everyone is in a position to donate their time to their trade association. Not everyone wants to get out and talk to their legislators but everyone can do the most important thing of all. If you are not already a member, you can join now. If you are a member, you can get a friend or co-worker to join. The more members that we have, the higher the credibility we have with our legislators. Help us make a difference! Click here to join: CAMP Membership Link 

 

CAMP Sales & Marketing

January 29-30, 2015 I Universal City, California

 

You don’t want to miss our Silver Anniversary next year. The 2015 Sales and Marketing Conference will be a must attend event! We are finalizing the program but I can tell you, the line of speakers is fabulous. The event is January 29-30, 2015 in Universal City, California. You can click the link below for event information and registration.

Click Here for Event Information

 

 

 

Chapter Events 

Silicon Valley CAMP Presents Breakfast Round Table on Friday, February 13, 2015 from 8:30 am to 10 am at Flames Restaurant, Banquet Room, 1547 Meridian Avenue, San Jose, CA.www.siliconvalleycamp.com for more info.

North Bay CAMP Presents Sales and Marketing Strategies for 2015 with David Luna on Thursday, February 19, 2015 from 9am to 1pm at Finely Community Center, 2060 College Avenue, Santa Rosa, CA. Contact Rick Reith rick@amex.net for more information.

Silicon Valley CAMP Presents Sales and Marketing Strategies for 2015 with David Luna on Friday, February 20, 2015 from 10 am to 2:30 pm at SCOAAR Training Room, 1651 North First Street, San Jose, CA. Lunch is provided. Visit www.siliconvalleycamp.com for more info.

 

CAMP Statewide Calendar

If you would like me to include upcoming events

please send me an email.

Until next week,

 

Believe it or not, HUD has a dog in the fight with the Supreme Court regarding Disparate Impact that’s at odds with Lenders

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Monday, January 26

Well this week has been filled with a lot of comments on DEFLATE-GATE. I would like to say that this in no way was reflective of the way my team played, and I think the other team could have used marshmallows and the score would have been the same, but what comes into question is integrity. And to be frank, this is the same in the mortgage business. All we have is our Integrity and our Reputation to fall back on and if we put these in jeopardy, it will stick with us forever. So the next time you think that no one will know the wiser about something you do that might be a slightly question your integrity, don’t.

In the next few weeks, I will be calling for nominations for the upcoming year and new Board Members. Some of the traits that we are looking for to fill these roles are: knowledge seekers, strong communicators, conscientious organizers, proven leaders and forward thinkers. If you are one of these people, please consider applying for one of the Board positions that are open. We need you.

Some of the items that you should be questioning yourself over the next few months of this quarter are:

▪ What steps are you taking to make sure that you are educated about your job?
▪ Do you know what all of your forms say and what they mean? If a customer asks you, can you explain it or do you have to ask someone what the form is all about.
▪ How do you stay updated about new rules and laws and procedures? Do you know what is important about having a loan originator agreement with your employer?
▪ Are you familiar with the current environment in and around your state for mortgage programs?
▪ Can you communicate with your clients about requirements for a mortgage? I know these are good questions but you need to be prepared to answer these and have a complete understanding of your job.

NAMB will be offering several webinars to help keep you up to date on these and many more topics. Stay tuned and I will be announcing when these are scheduled.
As a member of NAMB, you are going to get these questions answered and so much more. For a small investment of a $50.00 membership dues, you get the answers to your questions and the training to make you so much more. So what is holding you back? It can’t be the cost. And with everything else, you also get the best comprehensive Government Affairs information from 3 really great people, Rick Bettencourt- Chair of the GA Committee and the 2 Vice Chairs, Fred Kreger and Valerie Saunders. And to make it even better, you become eligible to get some great discounts for your office through NAMB PLUS. As a member, go to the NAMB PLUSweb site and follow the instructions to get into the site.

I want to also remind all of you that our NAMB Legislative and Regulatory Conference in Washington, D.C. is coming in April and we are going to put on an AML class that you will get a certificate to comply with your annual training for this class. You are also going to be able to attend a workshop with Brian Stevens from the National Real Estate Post, and both of these are included in your registration. Look out for the e-mail promo to be sent shortly to be able to register and make your hotel reservations.
I would think that with the rates as low as they still are, a lot of you are busy doing purchases and refinances. There are still over 45% of the American public that has waited and are still waiting to refinance. Do not neglect these customers. Also at this time, you probably could go back and solicit customers from 14-19 months ago and again reduce their payment. Don’t waste time and begin to contact these people right now. You won’t be sorry.
And as a final thought, the next time that I put out my article, there will be a Super Bowl Champion. Now I am not going to go on record and tell you who it should be, but I think you all know who I am pulling for………the new commercials!!!! So gather your friends and surround yourself with great food and enjoy the evening.

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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The Disparate Impact issue is on the table with the Supreme Court and the result could have huge impacts on how lending decisions are made.

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Consumer agency gets an incomplete grade on mortgage ‘rate checker’

By KENNETH R. HARNEY

kenharney@earthlink.net

01/22/2015 12:01 AM

When the federal government’s consumer protection agency for financial matters tells you how to shop for a good deal on a home mortgage, you should follow the advice, right?

Maybe some of it. The Consumer Financial Protection Bureau, which was created in the backwash of the worst national mortgage disaster since the Great Depression, went online with a new interactive mortgage tool last week. The CFPB’s site (www.consumerfinance.gov) offers helpful tips on shopping and has a guide to loan alternatives, closing costs and a “rate checker” feature.

At first glance, the rate checker appears to be a quick way to research prevailing mortgage interest rates in your area. Here’s how it works: You enter the state where you want to apply, a FICO credit score estimate, your desired loan amount and the loan term. The rate checker then displays the local daily rate quotes collected from banks and credit unions by its data vendor, Informa Research Services Inc. of Calabasas, California.

Say you want to see what rate you might get on a $400,000 house purchase with a $40,000 down payment in Virginia or California. You input your estimated credit score. Say you’ve got a FICO 680.

In Virginia, according to the rate checker readout Jan.16, “most lenders” in the survey would quote you 3.875 percent or less for a 30-year fixed-rate loan. Two lenders offered 3.625 percent and six quoted between 4 percent and 4.375 percent. In California, most lenders also quoted 3.875 percent or less, one quoted 3.75 percent and five came in between 4 and 4.375 percent. None went as low as 3.625 percent.

But something important is missing here: The various fees and charges that the CFPB itself requires lenders to disclose as part of any mortgage quote to a consumer. As regulator of the Truth in Lending Act, CFPB regulations mandate precise disclosures of loan discount fees or “points” and lender closing charges among others. (A point equals 1 percent of the loan amount.) These are included in the Annual Percentage Rate (APR) — the effective rate applicants will be paying over the life of the loan.

When lenders advertise their rates, they must include the APR along with the base interest rate. There may be other charges that come into the total cost picture as well, such as lender-paid mortgage insurance and investor “overlay” add-ons.

So how big a deal could it be when only the interest rate is provided? In a statement for this column, Quicken Loans, the second largest retail lender in the country, said that quoting a rate alone, with no reference to specific points, fees and the APR, “will deliver a cost estimate that greatly differs from what is accurate.” Steve Stamets, senior mortgage banker for Apex Home Loans, Rockville, Maryland, told me “it’s inherently misleading because you’re not getting all the potential charges” you’re going to have to pay.

For example, Stamets said, a loan officer might violate CFPB rules by quoting a 3 percent rate on a hypothetical $400,000 loan to pull in customers, but not mention that to obtain that rate they will need to pay 5 points — $20,000. Those points could be paid at settlement or financed and included in the interest rate. In the latter case, using one rule of thumb measure, the effective rate on the loan might jump to 4.25 percent, not the 3 percent advertised.

David Stevens, CEO and president of the Mortgage Bankers Association, said in an interview that CFPB’s rate checker’s failure to disclose full costs “violates everything a lender must do” to quote rates to borrowers in compliance with the agency’s own rules. “It’s just a bad idea,” he said. “It needs to come down.”

But the CFPB shows no signs of yielding to critics. In a statement for this column, the agency said the rates quoted “assume” discount points ranging between one half a point to minus one half a point “and a 60-day rate lock,” but do not include lender closing charges. Dave Hershman, a nationally known trainer and author who helps mortgage companies comply with the rules, scoffed at the CFPB’s defense: “Could you imagine (the bureau) allowing a mortgage company to be that nebulous? And to quote rates without an APR?”

Read more here: http://www.miamiherald.com/living/home-garden/article7890609.html#storylink=cpy
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Michelle’s Echo

 

WEBSITE         CHAPTERS        MEMBERSHIP       RESOURCES          NEWS & EVENTS
Stay Connected

Like us on Facebook   Follow us on Twitter

Join Our Mailing List

Join CAMP Today!
Join CAMP today to take advantage of our new membership benefits, discounts on education, webinars, and more!

Click here for more information!
Wednesday, January 21, 2015

It’s the third week of January and I was just wondering how many of us have already broke their new years resolutions? It appears that we are having a mini refinance boom again, so I’m sure you are on track with your business goals. I am just wondering though…are you on track with your projects? Have you completed your business plan or are you just going for it? Next week is our 2015 Sales and Marketing Conference. Whether or not you have a business plan, you really want to attend the conference. It will help you jumpstart your year! 

 

CAMP/NAMB Joins the MBA In Expressing Concern Over CFPB’s New “Rate Checker”

Last week, the CFPB unveiled a new tool that is designed to help consumers become better informed of rates and other costs when shopping for a mortgage. They introduced the “rate Checker” tool that is supposed to allow consumers to see what interest reates people with similar financial situations have been offered. According to the CFPB, this information is from actual lenders and is updated daily. CAMP supports the thought intended but this tool is falling short of it’s goal. 

Watch Video

 

NAMB President, John Councilman Weighs In: 

“This tool will do nothing but confuse consumers in their shopping experience,” Councilman said. “These rates do not account for closing costs, APR, Loan Level Price Adjustments or other key factors. More important than rate, is quality of service and closing reputations of others involved in the transaction. If a private company released this exact product, the CFPB and state regulatory authorities would have a team sent in to shut the site down,” he added.

 

Councilman went on to state,”What is perhaps most egregious is Director Cordray’s statement that cautioned consumers that

Mortgage Calculator

$
  %
  yrs
  %
$
have an ” important stake in selling the mortgage……What is best for them is not always best for the consumer.”This statement is nothing but divisive, naive, or dishonest; or all three. First, the Director should know, since the CFPB issued the regulations, that the loan originator and mortgage brokerage entities cannot increase their compensation. Those are set and cannot vary per Dodd/Frank and CFPB regulation. Second, mortgage originators, whether they work for banks, mortgage banks, credit unions, or mortgage brokers, all depend on future business by dealing with consumers fairly. The suggestion that licensed mortgage originators are out to get consumers or that consumers should not inherently trust referrals from friends and family is disappointing.Lastly, why would the Bureau launch a “rate checker” that will confuse consumers if it is to be used in conjunction with the new forms that the industry and CFPB have been developing together for over two years to help consumers shop for a mortgage? The new forms are set to launch August 1, 2015. The Bureau at the very least should have consulted with industry stakeholders to weigh input on the usefulness of such a “tool”.

 

The “rate checker” web site should be taken down immediately before a consumer is harmed by the false rate information dispensed.

 

NAMB requests that all Mortgage Professionals let their voice be heard. Please email info@consumerfinance.gov and remind them:

 

1) The “Rate Checker” site should be taken down because it fails to mention APR, closing costs, and other important information consumers need to know

 

2) The “Rate Checker” site does not contain rate quotes from licensed mortgage brokers or independent mortgage bankers

 

3) The “Rate Checker” was released with out any input from industry stakeholders such as NAMB, MBA, and NAR. If the CFPB truly wants to get it right, they should work with the industry for complete accuracy and fairness.

 

Please CC your congressman, info@ca-amp.org and governmentaffairs@namb.org on the email. Make sure to share with your representatives, colleagues, referral partners, and clients. It is important for everyone’s voice to be heard on this topic.


 

Join CAMP!

How can you help those who are trying to help you? Well, not everyone is in a position to donate their time to their trade association. Not everyone wants to get out and talk to their legislators but everyone can do the most important thing of all. If you are not already a member, you can join now. If you are a member, you can get a friend or co-worker to join. The more members that we have, the higher the credibility we have with our legislators. Help us make a difference! Click Here to Join

Legislative Update

With many regulatory changes happening, I wanted to let you know that Senator Barbara Boxer has decided to retire next year. It seems that Attorney General Kamala Harris has announced that she will be running for her seat. If you are interested in reading more, click here.

Are you interested in meeting your state representatives? If so, contact your chapter Government Affairs Chairperson. They are currently scheduling meet and greet appointments with them. If you are not sure who your GA Chair is, go to your chapter webpage.

Give Us Guidance

Would you like to offer some input as to what your chapter should offer for educational meetings and social events? If so, please click here to answer a five question survey. 

Quick Survey


 

CAMP Sales & Marketing

January 29-30, 2015 I Universal City, California

 

You don’t want to miss our Silver Anniversary next year. The 2015 Sales and Marketing Conference will be a must attend event! We are finalizing the program but I can tell you, the line of speakers is fabulous. The event is January 29-30, 2015 in Universal City, California. You can click the link below for event information and registration.

Click Here for Event Information

 

 

 

Chapter Events 

Today!

San Francisco Peninsula CAMP Presents C.J. Hayden – Get Clients Now! on Wednesday, January 21, 2015 from 4 pm to 7 pm at Dominic’s @ Oyster Point, 425 Marina Blvd, South San Francisco, CA. Contact Kevin Casey tkevincasey@yahoo.com for more info or click here to RSVP.

Greater Sacramento CAMP Presents Networking Mixer on Thursday, Janurary 22,2015 from 4 pm to 7 pm at Sapporo Grill, 1118 16th Street, Sacramento, CA 95814. Click Here 

Silicon Valley CAMP Presents Breakfast Round Table on Friday, February 13, 2015 from 8:30 am to 10 am at Flames Restaurant, Banquet Room, 1547 Meridian Avenue, San Jose, CA.www.siliconvalleycamp.com for more info.

North Bay CAMP Presents Sales and Marketing Strategies for 2015 with David Luna on Thursday, February 19, 2015 from 9am to 1pm at Finely Community Center, 2060 College Avenue, Santa Rosa, CA. Contact Rick Reith rick@amex.net for more information.

Silicon Valley CAMP Presents Sales and Marketing Strategies for 2015 with David Luna on Friday, February 20, 2015 from 10 am to 2:30 pm at SCOAAR Training Room, 1651 North First Street, San Jose, CA. Lunch is provided. Visit www.siliconvalleycamp.com for more info.

 

CAMP Statewide Calendar

If you would like me to include upcoming events

please send me an email.

Until next week,

 

California Association of Mortgage Professionals

Take a moment to answer a few questions about your education and event preferences.  It is the perfect time to provide your input as the CAMP chapters and state board start their 2015 event planning.

It is our Silver Anniversary and we want to make this year shine!

 

Take this survey

Thank you for your participation in our survey.  Your feedback is valuable!

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CFPB Launches Non Compliant Rate Widget

The CFPB is ready to fine any mortgage lender for improper rate disclosure however their rules don’t seem to apply to themselves.

 

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NAMB Joins The MBA In Expressing Concern Over CFPB’s New “Rate Checker

 

NAMB President, John Councilman Weighs In

 

“This tool will do nothing but confuse consumers in their shopping experience,”  Councilman said.  ”These rates do not account for closing costs, APR, Loan Level Price Adjustments or other key factors.  More important than rate, is quality of service and closing reputations of others involved in the transaction.  If a private company released this exact product, the CFPB and state regulatory authorities would have a team sent in to shut the site down,” he added.

Councilman went on to state,”What is perhaps most egregious is Director Cordray’s statement that cautioned consumers that

Mortgage Calculator

$
  %
  yrs
  %
$
have an ” important stake in selling the mortgage……What is best for them is not always best for the consumer.”  This statement is nothing but divisive, naive, or dishonest; or all three. First, the Director should know, since the CFPB issued the regulations, that the loan originator and mortgage brokerage entities cannot increase their compensation. Those are set and cannot vary per Dodd/Frank and CFPB regulation.  Second, mortgage originators, whether they work for banks, mortgage banks, credit unions, or mortgage brokers, all depend on future business by dealing with consumers fairly. The suggestion that licensed mortgage originators are out to get consumers or that consumers should not inherently trust referrals from friends and family is disappointing.  Lastly, why would the Bureau launch a “rate checker” that will confuse consumers if it is to be used in conjunction with the new forms that the industry and CFPB have been developing together for over two years to help consumers shop for a mortgage? The new forms are set to launch August 1, 2015. The Bureau at the very least should have consulted with industry stakeholders to weigh input on the usefulness of such a “tool”.”

The “rate checker” web site should be taken down immediately before a consumer is harmed by the false rate information dispensed.

NAMB requests that all Mortgage Professionals let their voice be heard. Please email info@consumerfinance.gov and remind them:

1) The “Rate Checker” site should be taken down because it fails to mention APR, closing costs, and other important information consumers need to know

2) The “Rate Checker” site does not contain rate quotes from licensed mortgage brokers or independent mortgage bankers

3) The “Rate Checker” was released with out any input from industry stakeholders such as NAMB, MBA, and NAR. If the CFPB truly wants to get it right, they should work with the industry for complete accuracy and fairness.

Please CC your congressman and governmentaffairs@namb.org on the email.

John L. Councilman, CMC, CRMS

President

NAMB The Association of Mortgage Professionals

President@namb.org

 

Please share this with your representatives, your colleagues, referral partners, and clients. It is important for everyone’s voice to be heard on this topic.
For more information on NAMB’s Government Affairs projects or on how you can get involved, contact NAMB GA Chair:

Rick Bettencourt governmentaffairs@namb.org

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