What trends will shape the picture of mortgage lending, mortgage foreclosure and mortgage investments in 2011? How will lenders and borrowers react in the next 12 months after a record number of U.S. homes went into foreclosure in 2010? I expect the most significant trend to be a dramatic shift in the nature of the relationship between borrowers and lenders.
Here are some of the other trends that I foresee shaping the mortgage sector in 2011:Click to continue
Ernst Publishing Company, an authority on land recording requirements for almost two decades processing more than 120 million transactions annually, has automated the recording of buyer-seller tax splits for all new purchases that appear on the Good Faith Estimate (GFE). Ernst was one of the first companies to automate splits—the division of the tax bill between the buyer and seller—and to integrate the data into calculations for the purchase market in the U.S.Click to continue
On March 18, 2011, the Department of Housing and Urban Development (HUD) issued its RESPA Roundup, this issue being devoted to completing the Good Faith Estimate (GFE) in order to disclose loan originator compensation pursuant to the new TILA Loan Originator Compensation rule (Rule). [75 F.R. 58509 (September 24, 2010)]
HUD's guidance addresses the following issues:Click to continue
Franklin, Tenn.-based Wipro Gallagher Solutions (WGS), a provider of end-to-end loan origination software and services for financial organizations, has announced the latest version of its loan origination system (LOS), NetOxygen 3.4, which includes heightened regulatory compliance, as well as enhanced vendor interfaces and documents/imaging functionality.Click to continue
The Government Affairs team of the National Association of Mortgage Brokers (NAMB) has been very active so far this year and has had some significant impact with lawmakers and regulators in Washington, D.C. The most recent victory is the recently released appraisal independence announcement from the Federal Housing Finance Agency (FHFA) and Fannie Mae. NAMB has fought hard and had several meetings with FHFA/Fannie Mae to stress the importance of appraisal independence and portability. Well, they listen to us, and on Oct.Click to continue
PCLender.com has announced that it has extended the compliance functionality of InHouse Mortgage, its comprehensive loan origination software (LOS), to further assist lenders in complying with the disclosure of fee requirements included in the Real Estate Settlement Procedures Act (RESPA). With its latest announcement, PCLender.com continues in its tradition of staying at the forefront of offering innovative mortgage lending solutions that are compliance-focused.Click to continue
Hartford National Title Inc., a provider of title insurance and real estate closing services, has announced the launch of OneSourceQuote, its new Good Faith Estimate (GFE) and HUD-1 title calculator. This free online application is the byproduct of many months’ worth of developmental efforts and testing by programmers, staff, and beta clients. OneSourceQuote provides users with the reissue rate calculation on refinances and exact recording fees through an integration with a national recording database that is updated daily.Click to continue
Ellie Mae and Closing.com have announced the launch of Encompass Assured GFE service powered by Closing.com’s SmartGFE Service. With Encompass Assured GFE, Encompass360 users can now create Good Faith Estimates (GFEs), which are backed by a ClosingCorp compliance guarantee, directly from their Encompass360 systems. The January 2010 changes to the Real Estate Settlement and Procedures Act (RESPA) have created new compliance challenges for mortgage lenders and brokers.Click to continue
The American Land Title Association (ALTA) has written the U.S. Department of the Treasury and the Consumer Financial Protection Bureau (CFPB) to consider several recommendations to improve mortgage disclosure forms and make them easier for consumers to understand. ALTA outlined its suggestions in a letter to Treasury Secretary Timothy Geithner, and Elizabeth Warren, special advisor to the Secretary of the Treasury on the CFPB.Click to continue
Ernst Publishing Company has released a survey of large retail lenders, settlement companies, large title insurance companies and credit unions that shows that the cost of mortgage fees has not increased due to the Good Faith Estimate (GFE) and the prices that are disclosed are simply more accurate than in the past.
That’s one of the insights to be gleaned from the “Ernst Good Faith Estimate” survey, that reflects the views of 226 respondents from lending institutions who were polled from Oct. 11- Oct.16.Click to continue