Posts Tagged ‘loan originator’

CIS Financial Dedicates new Office

December 13th, 2013 Comments off

The Alabama Manufactured Housing Association (AMHA) informs MHProNews city dignitaries were on hand for a ribbon-cutting ceremony at the expanded facilities of CIS Financial Services in Hamilton, Alabama to honor company found Paula Reeves. She began the company in 1991 with two employees and has now grown to 78 employees financing manufactured and modular homes, as well as site-built homes in 27 states. Her company also services loans they originate and acquire, and sells insurance. CIS supports community charities and fund-raising events, and encourages its employees to do the same. Ms. Reeves serves on the AMHA Board of Directors and its Executive Committee. Both she and her firm have received honors and accolades.

(Image credit: AMHA)

Manufactured Housing Industry Gains in Easing Lending Restrictions

August 9th, 2013 Comments off

In its continuing attempts to amend rules that inhibit lending to the manufactured housing market, the Manufactured Housing Institute (MHI) says the Consumer Financial Protection Bureau (CFPB) released additional rules that exempt loans on existing manufactured homes (excluding real estate) from Dodd-Frank appraisal requirements. There is already an existing rule that exempts loans on new manufactured homes from appraisal requirements, as MHProNews has learned. In addition, the MHI newsletter reports a CFPB modification of loan originator compensation rules now exempts from points and fees calculations the sales price of a manufactured home, as well as any commission a manufactured home retailer pays to its sales persons.

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CFPB: Cap Excludes Comp

May 31st, 2013 Comments off

Saying it is too difficult to calculate individual pay early in the origination process, the Consumer Financial Protection Bureau (CFPB) now says loan officer compensation should not be included in the three percent cap threshold under the qualified mortgage rule. However, as nationalmortgagenews informs MHProNews, compensation paid by the creditor to a mortgage broker should be included, and so should fees paid by the consumer to the creditor. “This cap ensures that lenders offering qualified mortgages do not charge excessive points and fees,” says the CFPB. Mortgage Banker Association (MBA) president and chief executive David Stevens, says, “We welcome the stipulation that compensation paid by brokers and lenders to loan originator employees do not count toward the points and fees threshold for what constitutes a qualified mortgage. Both of these provisions should facilitate a more efficient and affordable marketplace for borrowers.” He adds the CFPB is trying to balance consumer protection with access to affordable credit.

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Amendment to High Cost Lending Provision has Bi-partisan Support

April 27th, 2013 Comments off

According to what the americanbanker tells MHProNews from Washington, a bipartisan group of lawmakers is attempting to amend a provision that will adjust the thresholds of high-cost loans under the Home Ownership and Equity Protection Act for manufactured home loans, while maintaining consumer protections. Under the current provision scheduled to go into effect Jan. 2014, many small balance loans used to buy manufactured homes would be classified as predatory and high-cost because they are short term and carry a high interest rate. In introducing HR 1779, the Preserving Access to Manufactured Housing Act, Reps. Stephen Fincher (R-Tenn.), Bennie Thompson (D-Miss.), and Gary Miller (R-Calif.) also want to exclude some sellers of manufactured homes from being classified as a loan originator unless they are paid by a lender, loan originator or mortgage banker. In addition, the loans cannot be sold to Fannie Mae and Freddie Mac, leading most lenders to avoid MH loans. In the Manufactured Housing Institute (MHI) newsletter, Nathan Smith, Chairman of MHI, says, “Low-income families across the country, particularly in rural areas, depend on access to financing for affordable manufactured homes. Not only are manufactured homes the largest form of unsubsidized affordable housing in the nation, but the manufactured housing industry is also a job creator and an important economic driver in many communities. We thank Representatives Fincher, Thompson and Miller for fighting to protect manufactured homeowners and our industry.” The Senate will see a similar bill introduced soon.

MHI & MHARR Begin Joint Project

March 15th, 2013 Comments off

The Manufactured Housing Institute (MHI)  informs MHProNews at their  Board Meeting Feb. 25, president and CEO Richard Jennison presented the three issues which MHI is newly collaborating on with the Manufactured Housing Association for Regulatory Reform (MHARR): 1) have a non-career head of the MH program at HUD; 2) have two non-lobbyist representatives on the Manufactured Housing Consensus Committee (MHCC); 3) and reform GSEs so there are more financing options for MH. And from their newsletter: “The Federated States Division recommended that MHI consider protection of retail sales centers from the CFPB definition of a loan originator through commercial speech laws. It was noted that the Finance Lawyers Committee is exploring options at this time. The Dodd-Frank/CFPB Task Force recommended that MHI’s financial services policy priorities be focused on reforming three key areas of CFPB regulation that would, both individually and collectively, significantly limit the availability of credit in the manufactured housing market. They are: 1) HOEPA High Cost Mortgage Triggers; 2) HPML Appraisal Requirements; and 3) Loan Originator Compensation Exclusion for Manufactured Home Retailers.”

(Photo credit: Chris Butler/idahostatesman–Delores Loredo working on MH)

CFPB Region Director Could be Watching You

January 8th, 2013 Comments off

OriginationNews reports the person who helped plan staffing, enforcement and direction of the Consumer Financial Protection Bureau (CFPB) is now the regional director of the West Region office of the agency in San Francisco, covering 18 western states including Alaska, Hawaii and Guam. Edwin L. Chow is responsible for consumer protection and supervisory activities of regulated depository financial institutions with assets over $10 billion, and also in charge of non-depository financial services companies, supervising staff and managers in those locales. Consumer complaints against mortgage companies can now be filed on-line with the CFPB, and the company has 15 days to respond, at least to the CFPB. Lack of a response could bring the heat of investigation from the Bureau. Commissions for the loan originator (LO) are a fixed percentage based on the loan amount, with a focus on the best deal for the customer rather than the best percentage for the lender and/or the LO. MHProNews has learned that as of Jan. 28, FHA-approved lenders and LOs must provide accurate, timely and complete and pertinent company identification information to the FHA; and lenders need to regularly  review and update TPO (third-party origination) information in the Sponsored Originator Registry. How the agency will define Qualified Mortgages is yet to come.

(Image credit: Federal Housing Administration)

CFPB’s New LO Rule due Soon

December 7th, 2012 Comments off

Nonbank lenders are closely watching the progress of the loan officer compensation rule set to be released mid January, 2013 by the Consumer Financial Protection Bureau (CFPB) as it could have a large effect on their income. A key issue to watch, as originationnews tells MHProNews, is dual compensation where the loan originator (LO) is paid by both the consumer and the wholesaler, a policy the CFPB strictly opposes. The National Association of Independent Housing Professionals (NAHIP) says dual compensation is not double compensation. Meanwhile, the government watchdog wants a zero-zero exemption. This policy would require lenders to make a mortgage available to borrowers “with no upfront discount points, origination points, or fees that are retained by the creditor, broker, or an affiliate of either if commission-based compensation is paid to an originator,” a rule opposed by the Mortgage Bankers Association. The MBA would support restricting the commission paid to a loan originator by a brokerage or creditor if that brokerage or creditor was also being paid by the borrower, but not the zero-zero as it stands.

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CFPB Amends LO Compensation Proposal

August 27th, 2012 Comments off

As follow-up to a story we published Aug. 17, 2012 about loan originator compensation, the Consumer Financial Protection Bureau (CFPB) has issued a new proposal which gives management more control of pricing, and prohibits loan originators from leading borrowers into higher cost or higher risk loans as a means to increase their compensation. The CFPB wants lenders to offer a “zero-zero option” which allows potential borrowers to see the full interest rate and total closing costs of a mortgage so they can more easily compare it to other options. As nationalmortgagenews noted, CFPB Director Richard Cordray said, “Consumers have a hard time comparing loans when they are dealing with a bewildering array of points and fees. We want to provide consumers with clearer options and enable them to choose the loan that they believe is right for them.” In addition, under the revised proposal, senior managers would not be considered loan originators if they originated five or fewer loans in the last 12 months. The public comment period is open until Oct. 16. MHProNews has learned the CFPB intends to finalize the proposal after the first of the year.

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Manufactured Housing Dealer may Lose License

July 26th, 2012 Comments off

mcall reports from the Lehigh Valley in Pennsylvania Love Homes and its owner, Lawrence Higgins, in Lower Macungie Township are in danger of losing licenses necessary to conduct its retail business of selling manufactured housing. A Pennsylvania Department of Banking order issued in March, 2012 has accused Love Homes of engaging in “dishonest, fraudulent or illegal practices in its business, and in unfair or unethical practices or conduct in connection with the mortgage loan business, on at least eight occasions, by taking down payments from consumers and failing to fulfill its contractual obligations.” One customer has received only $9,000 of $16,500 owed by Love Homes dating back to Dec. 2010, and in another instance of receiving a $25,000 down payment from a customer who had credit issues, Higgins did not return the deposit or assist with financing as offered. MHProNews has learned Higgins is not licensed as a loan originator despite attempts to secure financing, nor did he post a surety bond when trying to make a loan. Saying he will take care of restitution, Higgins says, “Everybody who’s in the housing business has got the same issue. We’re all struggling, just barely hanging on.” The state’s order is subject to appeal.

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Regulation would Standardize Loan Originator Training

July 24th, 2012 Comments off

According to OriginationNews, the Consumer Financial Protection Bureau (CFPB) wants to standardize training so all loan originators meet the same requirements for fitness, character, and financial responsibility. The new standards would erase some of the differences between bank loan originators and state-licensed LOs created by Congress’ passage of the SAFE Act (Secure and Fair Enforcement for Mortgage Licensing Act) in 2008, now under the jurisdiction of the CFPB. (As MHProNews knows, the SAFE Act prevents those involved in the manufactured housing industry who are not licensed mortgage brokers from discussing financing of MH with a customer.) Banks typically have their own training program for LOs, which are often more stringent than state licensing and testing. Standardizing the training would allow bank mortgage lenders to easily move over to a state-licensed mortgage broker. Agency officials want to finalize the new professional standards by the end of January 2013.

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