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Posts Tagged ‘mortgage broker’

Barnes blasts blackest comedy of Dodd-Frank, signals retreat toward “common sense”

September 2nd, 2013 Comments off

tight-credit-shutter-stock-inman-posted-daily-business-news-manufactured-housing-professional-news-mhpronews-com-Writing in Inman, mortgage broker Lou Barnes laments that “six years after mortgage misbehavior stopped cold, we still do not have a national understanding of what happened, laboring in ignorance, score-settling, and the entirely successful effort by Wall Street investment bankers to dodge accountability.” Barnes notes that, “Pre-bubble, every mortgage bank and broker was contractually obliged to repurchase any loan with deficient underwriting, whether it defaulted or not.” and that, “The Wall Street banks did not just buy bad loans 2000-2007; they designed and vacuumed them.” The broker lampoons, “The containment of QM/QRM damage is not an easing of currently overly tight standards, just turning away from more tightening. In blackest comedy, the regulators cited as a principal reason to retreat that credit is already far too tight.” Lobbing a few Tomahawks, Barnes says, will only cause a pause in the rate adjustments. What will make a difference for mortgages? “Six regulators agreed that the central mortgage provisions of Dodd-Frank are bad ideas.” ##

(Image credit: Inman/Shutterstock)

 

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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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.

(Image credit: Foreclosure Listings)

MH Fraud Crime Results in Doing Time

May 3rd, 2012 2 comments

MHProNews.com has learned from MyrtleBeachonline two South Carolina men were each sentenced to three years in federal prison for falsifying loan applications to banks to obtain mortgages on manufactured homes that were never delivered. Conway, SC MH dealer Glenn Vaught and mortgage broker Michael Fortenberry provided false documentation to obtain the loans in MH customers’ names, then split the money. Two banks lost over $1.5 million in the scheme, and customers were left with five and six-figure mortgages on homes that never existed. One victim of the fraud could not get a conventional loan and went through Vaught’s G & E Home Center in 2006 to obtain a $129,000 mortgage. She never received a home, but did receive overdue notices for a home that did not exist. One collection agency even threatened to foreclose on the non-existent MH. The two men will be on three year supervised release after prison. Fortenberry ‘s wife will stand trial this month on seven felony counts of loan application fraud. Another mortgage broker has already been convicted of falsifying information on a loan application and faces sentencing.

(Image credit: city of Conway)

Lexington man Sentenced in Federal Fraud case

November 29th, 2011 Comments off

Department of Justice  logoMHProNews has learned that 32 year old Robert C. Sasser of Lexington, South Carolina was sentenced in federal court on November 28th for wire fraud. In a case handled by U.S. Attorney Winston D. Holliday, Jr., United States District Judge Margaret B. Seymour sentenced Sasser to three years’ imprisonment and ordered payment of approximately $1.6 million in restitution to Wells Fargo Bank.  A Federal Bureau of Investigation (FBI) press release stated that a change of plea hearing established Sasser was a realtor and mortgage broker doing business in West Columbia.  Sasser was involved in eight real estate transactions involving “modular homes” from the Aiken Housing Center (AHC) and a private residence. Wachovia Mortgage Corporation (WMC) financed the eight mortgage loans for approximately $2.5 million. All the loans were collateralized by what was cited as modular homes that were deemed significantly overvalued. Loan documents demonstrated multiple misrepresentations that made the loans fraudulent, including grossly misstated income and asset information, forged signatures, and improper down payments. Due to subsequent foreclosures, the amount of loss suffered was approximately $1.6 million, owed to Wachovia’s successor, Wells Fargo.

(Image credit: Department of Justice logo)