Skip to main content

Chase Manhattan Mortgage Corporation to Acquire Advanta Corporation

National Mortgage Professional
Dec 16, 2001

A Letter to the Editor: A Big Thank You to HUDCharles W. BradleyHUD, YSP, clarifies, Mel Martinez A Letter to the Editor A Big Thank You to HUD As the president of a mortgage banking firm, I am pleased that HUD has taken a bold step toward doing the right thing for the mortgage industry and homeownership in America. HUD's Statement of Policy 2001-1 clarifies their long-standing position that the payment of yield spread premiums are not per se illegal. Mortgage professionals should be particularly pleased that HUD Secretary Mel Martinez and his staff have recognized the usefulness of YSPs as a financing tool for borrowers that lack the necessary funds to pay for settlement costs up-front. The payment of a YSP by the lender permits a borrower to finance services, such as all or a portion of a Mortgage Broker's fee, through a higher interest rate. We should further applaud HUD for clarifying its two-pronged test which determines whether lender payments to Mortgage Brokers are legal under the Real Estate Settlement Procedures Act. The exam now requires that all compensation to the Mortgage Broker, not just the YSP, must be considered on a loan-by-loan basis, and not through class action litigation. We hope this clarification will provide much needed leadership on this issue, and help stem the tide of threatened litigation that many experts predicted would greatly harm the mortgage lending industry. It is rare for any governmental agency to willingly step forward and do the right thing in the face of intense criticism, and I thank Secretary Martinez for having the guts to tackle this problem. Charles W. Bradley, Chairman, CEO EquiFirst Corporation, Charlotte, N.C.
Published
Dec 16, 2001
Federal Regulators Race To Address Cryptocurrency Risks

Cryptocurrency is quickly morphing into a volatile but widely embraced innovation, and federal regulators are racing to address the potential risks to consumers and the market. 

Industry News
Sep 24, 2021
MBA Initiative Seeks To Close Racial Homeownership Gap

Says its advocacy, partnerships & connections will help increase opportunities for minority borrowers

Industry News
Sep 24, 2021
Guaranteed Rate Opens New Branch In Southwestern Michigan

Guaranteed Rate expanded its presence in Southwester Michigan, after opening a new branch in St. Joseph

Industry News
Sep 22, 2021
Chinese Property Giant Evergrande Falters, Threatening U.S. Investors

On Monday, investors across three continents dumped their stocks, mainly out of fear that the world’s two largest governments — the United States and China — would undercut the beginnings of a global economic recovery. 

Industry News
Sep 22, 2021
Compass Mortgage Expands In Four Additional States

Compass Mortgage is now licensed in Virginia, Washington, North Carolina and South Carolina.

Industry News
Sep 22, 2021
Enact Holdings Completes IPO

Genworth Financial Inc. announced the completion of the initial public offering for its subsidiary Enact Holdings Inc.

Industry News
Sep 21, 2021