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					                                                             Nebraska
                                                             Mortgage Monitor
                                                                                Mortgage Information You Need to Know!
                                                                                                                                  January, 2011

Inside this Issue…                                           HUD Releases New Mortgagee Letters Regarding
Pending Home Sales Rose 10.4% in
  October ....................................... Page 2
                                                             Flood Insurance Requirements and FHLB
FHA Sets Single Family Loan Limits for
                                                             Affordable Housing Programs
  2011 ............................................ Page 2   December 28, 2010
                                                             Mortgagee Letter 2010-43
NMA VIP Reception at Nebraska Club a
                                                             To: All Approved Mortgagees, All Approved Mortgage Servicers, All FHA Roster
  Success ....................................... Page 2
                                                                 Appraisers
NMLS, Bank Registration and MLO                              Subject: Flood Zone Requirements for Federal Housing Administration (FHA)
  Approval Times .......................... Page 3               Insured Mortgages
Compliance Alerts........................... Page 3                This Mortgagee Letter provides new guidance on FHA Flood Zone
                                                                   requirements and updates Mortgagee Letter 2009-37. FHA now requires that
Loan Officer Compensation Discussion
                                                                   all Mortgagees obtain a flood zone determination on all properties instead of
  Group.......................................... Page 3
                                                                   strongly encouraging such action. In addition, FHA is now consistent with the
Compliance Rules Taking Effect in                                  Coastal Barrier Resources Act (CBRA)...
  January ....................................... Page 3
Synopsis of Newly Issued Mortgagee                               And
  Letters......................................... Page 4
MBA Files Lawsuit on Loan Officer                            December 28, 2010
 Overtime Eligibility ................... Page 5             Mortgagee Letter 2010-42
MBA’s Mortgage Action Alliance... Page 6                     To: All Approved Mortgagees
                                                             Subject: Federal Home Loan Bank - Affordable Housing Program, Homeownership
Sign up for HUD’s Email List ........ Page 7                     Set-Aside Grant Program
News From NIFA ............................ Page 8                 This Mortgagee Letter (ML) provides guidance concerning the use of the Federal
                                                                   Home Loan Bank (FHLB), Affordable Housing Program (AHP), Homeownership
                                                                   Set-Aside Program in conjunction with Federal Housing Administration (FHA)
                                                                   insured financing. This guidance refers to the Homeownership Set-Aside Program
                                                                   for purposes of downpayment assistance only…

                                                                 To read these mortgagee letters and any attachments in their entirety, please visit:
                                                             http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/. View the 2010 letters
                                                             and click on the letter of your choice. Mortgagee Letters from previous years can be
                                                             found on the same page.



                                                             Rules Set for ‘Independent’ Appraisers
                                                             Federal regulators issued guidelines last month clarifying accepted procedures for
  NMA Educational Events
                                                             real estate appraisals and evaluations.
  Self-Employed Borrower and Rural                                The guidance discourages institutions from using automated valuation models in
  Property and Small Community
                                                             transactions requiring an appraisal. Regulators called on banks to use only appraisals
  Appraisals - See page 8
                                                             that sufficiently support credit decisions, use appraisal criteria that are consistent
                                                             with safe and sound banking practices and implement internal controls to ensure
www.NebraskaMortgageAssociation.org                                                                                              Continued on Page -2-
NMA@NebraskaMortgageAssociation.org
Mortgage                                                                                 Nebraska Mortgage associatioN

                           Monitor
                                                                                                                    January, 2011
                                                                                                                         Page -2-



 Rules Set for ‘Independent’ Appraisers Continued from Page -1-
 compliance with an institution’s appraisal program.
     The guidelines also reaffirmed the need to maintain a standard of independence when it comes to appraising collateral values.
     “Appraisers must be independent of the loan production and collection processes and have no direct, indirect or prospective
 interest, financial or otherwise, in the property or transaction”, the guidelines stated. “These standards should also apply to
 persons who perform evaluations.”
     Regulators said an institution’s appraisers should be subject to periodic review of their work, be able to provide unbiased
 opinions and have obtained appropriate state certification.
                                                                                        Donna Borak, American Banker, Dec. 3, 2010


Pending Home Sales Rose 10.4% in                                    FHA Sets Single Family Loan
October                                                             Limits for 2011
The number of people who signed contracts to buy homes rose in      Both the Economic Stimulus Act of 2008 (ESA) and the
October, the third gain since contract signings hit a decade low.   Housing and Economic Recovery Act of 2008 (HERA) set the
     The National Association of Realtors said that its index       FHA national loan-limit “floor” at 65 percent of the national
of sales agreements for previously occupied homes rose 10.4         conforming limit, which remains at $417,000 for fiscal year
percent in October. Contract signings were up in every region       2011. The minimum FHA loan limits (the “floor”) by property
of the country except the West. Economists had expected             size for this period are as follows:
contract signings to decline.
     With the October gain, contract signings are 18.3 percent          One-Unit $271,050
above June’s index, which was at the lowest level since the             Two-Unit $347,000
private group began tracking signed contracts in 2001. Still,           Three-Unit $419,400
they remain 20.5 percent below the October 2009 level, the              Four-Unit $521,250
highest point since May 2006, before teh housing market
collapsed.                                                              Please refer to the HUD Mortgagee letter 10-40 for full
     A year ago, potential buyers were rushing to close deals       details: http://www.hud.gov/offices/adm/hudclips/letters/
to take advantage of a federal home-buying tax credit that          mortgagee/.
initially was to expire in November.
     Lawrence Yun, the Realtors’ chief economist, said that
even with the rebound in contract signings in October,                NMA VIP
housing was being held back by a number of factors from high
unemployment to tighter standards on home mortgages.
                                                                      Reception at
     “A return to more normal loan underwriting standards and         Nebraska Club a
removal of unnecessary underwriting fees for very-low-risk
borrowers is needed and could quickly help,” Mr. Yun said.            Success!
     In a separate report, a foreclosure listing firm said that       Several firm principals attended
the worse summer for home sales in decades had dampened               Nebraska Mortgage Association’s
foreclosure sales.                                                    social event held at the Nebraska
     RealtyTrac said foreclosure sales had dropped 25 percent         Club in Lincoln on November 16th. Attendees had time to
in teh July-September quarter versus activity in the April-June       reconnect with old friends and colleagues and enjoy great
period, even as the average discount on distressed properties         food and spirits! Watch for more events like this in 2011!
had increased.
     The report on contract signings from the Realtors showed
that signings were up 19.6 percent in the Northeast, 27.3               Watch your inbox for information
percent in the Midwest and 7.1 percent in the South. However,
signings dropped 0.4 percent in the West region in October.
                                                                              on NMA’s upcoming
                                 NYTimes.com, December 3, 2010              Appraisal Round Table!
NMA@NebraskaMortgageAssociation.org                                                         www.NebraskaMortgageAssociation.org
Mortgage                                                                               Nebraska Mortgage associatioN

                           Monitor
                                                                                                                     January, 2011
                                                                                                                          Page -3-




NMLS, Bank Registration and                                        Compliance Alerts
MLO Approval Times                                                 The fair lending trend continues to grow. Fair lending
NIFA will be hosting its 9th Annual Affordable Housing             looks like it will continue to be a big priority for the
Conference on January 25 & 26, 2011 at the Omaha Marriott!         regulators in 2011 as well. If you have not done so
     The purpose of this conference is to create a dynamic         already, you may want to consider performing a fair
environment where new financial resources and the latest           lending risk assessment to evaluate your level of risk.
technologies will come together to stimulate formation of          Attached are slides from FIL-148-2008, in which the
affordable housing development in Nebraska.                        FDIC describes how to perform a fair lending risk
      Registrations received by January 1, 2011 will receive a     assessment. Also, keep in mind that the regulators are
discounted rate and be entered in a drawing for a $100 VISA        looking for fair lending violations in nontraditional places.
gift card. More information at: http://nifa.org/events/index.      For example:
html?topic=details&calendar_id=1040                                     • Many institutions were criticized in the last few
      To register for the 2011 Housing Innovation Conference               months for utilizing joint credit reports in a way that
click here https://secure.nifa.org/events/register/index.                  inadvertently triggered discriminatory treatment on
html?ci=1040!                                                              the basis of marital status; and
     *Continuing education accreditation for NREC, NBPA                  • The FDIC, Federal Reserve and OTS have all
and the Nebraska Judicial Branch are currently pending.                    expressed concern about potential fair lending issues
                                                                           that may arise from overdraft practices, such as
                                                                           targeting specific segments of your customer base
                                                                           with Regulation E opt ins.
                                                                        Institutions that are restructuring their loan officer
                                                                   and mortgage broker compensation arrangements to
                                                                   comply with the Regulation Z requirements that go into
                                                                   effect on April 1st should carefully consider if their new
                                                                   arrangements (such as compensating lenders based on
                                                                   a percentage of the loan amount) may inadvertently
                                                                   encourage lender behavior that could cause fair lending
                                                                   violations. In addition, a new FDIC rule requires
                                                                   institutions that package mortgage loans for securitization
                                                                   to certify that the mortgage loans are compliant. As
                                                                   a result, you may see increased pressure from your
                                                                   secondary market investors to ensure the compliance of
                                                                   the loans that you are selling, particularly in the area of
                                                                   fair lending.
                                                                          Amy Avitable , Director of Compliance Services, Sheshunof


  Loan Officer Compensation                                      Compliance Rules Taking Effect in
  Discussion Group                                               January
  Interested in a loan officer compensation discussion               • January 1, 2011 – Risk based pricing notice requirements
  group? Here is one at LinkedIn. You have to request            become mandatory under the Fair Credit Reporting Act/
  group membership.                                              FACTA and Regulation V (alert available)
                                                                     • January 1, 2011 – New requirements for the loan
  http://www.linkedin.com/groupItem?view=&gid=369481             purchaser notice go into effect under Regulation Z (alert
  6&type=member&item=35947057&qid=bb4c5ec5-e7bb-                 available)
  4b41-9985-9ac160b726a3&goback=%2Egmp_3694816                       • January 30, 2011 – New rate and payment information
                                                                 becomes mandatory on certain Truth in Lending disclosures
                                                                 under Regulation Z (alert available)
NMA@NebraskaMortgageAssociation.org                                                       www.NebraskaMortgageAssociation.org
Mortgage                                                                                     Nebraska Mortgage associatioN

                           Monitor
                                                                                                                         January, 2011
                                                                                                                              Page -4-




Synopsis of Newly Issued Mortgagee Letters.
FHA has issued several new mortgagee letters. They are available at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/
     • 2010-02: Quality Control Requirements for Direct Endorsement Lenders
     • 2010-03: Extension of Temporary Guidance for Condominium Policy
     • 2010-04: FHA Capture of NMLS Information
     • 2010-05: Revised Audited Financial Statements for Supervised Lenders
Several points that we would like to highlight:

ML 2010-02: Quality Control                 the outstanding performance of                   between it and the parent company in
This letter primarily pertains to a DE      condominium loans.                               which the parent company guarantees
lender’s quality control responsibilities                                                    the ongoing net worth and liquidity
involving sponsored originations. In         ML 2010-04: FHA Collection                      compliance of the FHA-approved
particular, the DE lender must review       of Loan Originator Identifiers                   subsidiary.
early payment defaults for sponsored         Beginning April 1, 2011, for case                    An FHA-approved lender electing
originators as well as their own retail     numbers assigned, FHA will begin                 to submit audited consolidated financial
loans. Early payment default is defined     collecting NMLS identifiers for all              statements pursuant to one of the above
as 60 days past due in the first six        originators whether the originator is            mentioned conditions must also submit
months. DE lenders must also update         an employee or works for a sponsored             its fourth quarter Call Report as an
their quality control plans accordingly.    originator. Entry is optional until April 1st.   attachment to its annual audited financial
     There is one potentially troubling                                                      statements submission in HUD’s Lender
provision in the Reporting Fraud section    ML 2010-05: Audited                              Assessment Subsystem (LASS). Please
on the third page. At the end of that       Financial Statements for                         be reminded that a Compliance Report
                                                                                             and Internal Control Report must still be
section, it states:                         Supervised Lenders
     “Mortgagees must monitor all loans                                                      prepared and included as an attachment
                                             As we discussed in our last update.
they originate, underwrite or service                                                        to the FHA-approved lender’s audited
                                            FHA has published new guidance that
for potential fraud or serious material                                                      financial statements submission in
                                            permits FHA supervised lenders to
deficiencies throughout the lifecycle of                                                     LASS. The Compliance Report and
                                            submit audited consolidated financial
loans.”                                                                                      Internal Control Report must reflect
                                            statements of the parent company. In
     While the servicer is by statute                                                        compliance with FHA’s requirements at
                                            addition to allowing subsidiaries that are
not responsible for fraud committed                                                          the FHA-approved subsidiary’s level. “
                                            40% of the parent company’s assets, the
by others, we are concerned about           letter also adds that FHA will accept an
what functions FHA expects servicers                                                          FHA Operational Issues
                                            executed corporate agreement.
to perform to comply with this                    “Effective immediately, FHA-                Streamline Refinances - Six Month
requirement. If it is merely to report      approved supervised lenders in parent-           Requirement
discrepancies that occur in the servicing   subsidiary structures (i.e., subsidiaries)        We continue to be asked about cases that
process, that would be understandable.      are permitted to submit the audited              started as other refinances and then try to
However, if FHA expects the servicers       consolidated financial statements of             be converted to streamlines. For a loan to
to begin conducting fraud checks            a parent company, accompanied by                 be eligible as a streamline, the case number
throughout the loan process, that would     internally prepared consolidating                must have been obtained at least 210 days
be another matter. We will ask FHA for      schedules, if one of the following               after the original loan was closed.
a clarification.                            conditions is met:
                                                 (1) the FHA-approved subsidiary             Meeting the Dec. 31st, 2010 Deadline
ML 2010:03: FHA                             accounts for at least 40% of the parent          for Loan Correspondent Originations.
Condominium Policy                          company’s assets,                                    HUD has said that if the underwriter
 As expected, FHA extended the                   or                                          has signed the 92900-A, the loan is
temporary guidance on condominium                (2) the FHA-approved subsidiary             considered underwritten for eligibility
policy for six months. We are hopeful       provides FHA with an executed                    purposes. If the loan is subsequently
that additional program enhancements        corporate guarantee agreement,                   rescored in TOTAL for minor
will be forthcoming because of              acceptable to the Secretary of HUD,                                 Continued on Page -5-
NMA@NebraskaMortgageAssociation.org                                                           www.NebraskaMortgageAssociation.org
Mortgage                                                                                 Nebraska Mortgage associatioN

                           Monitor
                                                                                                                     January, 2011
                                                                                                                          Page -5-




 MBA Files Lawsuit on Loan                                          the abrupt reversal of this ruling subjects mortgage lenders to
 Officer Overtime Eligibility                                       unnecessary litigation.
                                                                         “This abrupt reversal by the department not only opens
 The Mortgage Bankers Association, on behalf of its                 lenders up to lawsuits for past actions, but also could require
 members, filed suit yesterday against the U.S. Department          them to make costly changes to their internal operations and
 of Labor on a rule interpretation that keeps mortgage loan         compensation structure, costs that will ultimately be borne
 officers from an overtime pay exemption.                           by the consumer,” Courson said. “Requiring loan officers to
      The suit, filed in the United States District Court for the   be paid overtime will not increase their compensation and
 District of Columbia under the Administrative Procedure            asking them to now track and report their hours will deprive
 Act, asks the court to overturn the Labor Department’s Wage        them of the flexible schedules they and their customers have
 and Hour Division Administrator’s Interpretation No. 2010-         enjoyed.”
 1, from March 24 last year, which reversed and withdrew a               In its suit, MBA asks the court to declare that the
 2006 opinion letter the Labor Department sent to MBA.              department violated the APA, vacate and set aside the
      The 2006 opinion letter interpreted the department’s own      Administrator’s Interpretation and prevent enforcement,
 regulations and concluded that typical loan officers were          application and implementation of the AI.
 exempt from Fair Labor Standards Act requirements for                   “What we are asking the court to do is to set aside this
 overtime payments under the “administrative exemption.”            ruling, effectively requiring that, if the department wants
      “In 2006, the department issued a clear opinion to            to reverse the 2006 ruling, it follow the APA and issue a
 MBA interpreting DOL regulations that exempted typical             proposed rule for public comment,” Courson added. “If
 mortgage loan officers from overtime pay,” said John               the department were to do that, we are confident it would
 Courson, president and CEO of MBA. “If the department              find that the existing ruling providing an administrative
 wanted to reverse that opinion, it should have provided            exemption for loan officers from overtime should remain.”
 notice and an opportunity for public comment. In issuing                The suit also urges that, because the Labor Department’s
 this administrative interpretation, the department ignored         interpretation in the AI is contrary to the plain language of
 that statutory requirement.”                                       the regulations and the preamble interpreting them, the AI is
      The mortgage lending industry relied on the 2006              “arbitrary, capricious, an abuse of discretion and otherwise
 opinion letter sent to MBA and the underlying regulations          contrary to law.”
 that indicated a loan officer could qualify for the                     Click here to view a copy of the filings.
 administrative exemption under the FLSA. MBA claims that                                          Mechem, John; Murray, Michael



 Synopsis of Mortgagee Letters… Continued from Page -4-
 changes such as the loan amount the loan correspondent                   We understand FHA will remove Loan Correspondents
 would still be able to close the loan in their name. The            from FHA Connection on 3/31/11. FHA has not
 loan correspondent would just need to document the file             terminated Loan Correspondents so that they can process
 appropriately.                                                      their pipeline loans. Loan Correspondents can no longer
      FHA has also said a FAQ sheet will be published                order new case numbers. They may only perform the
 shortly that addresses this as well as a variety of other           following limited functions in FHAC, such as Case Query,
 questions.                                                          Case Transfer, and CAIVRS. They can no longer pay the
                                                                     upfront MIP in 2011.
  Upcoming FHA Connection Changes                                                                Brian Chappelle, Potomac Partners



NMA@NebraskaMortgageAssociation.org                                                         www.NebraskaMortgageAssociation.org
Mortgage                                                                                 Nebraska Mortgage associatioN

                           Monitor
                                                                                                                    January, 2011
                                                                                                                         Page -6-




Volume V | Issue 1 | January 10, 2011                                    In the letter, among other points, MBA: Urges the Federal
The 112th Congress was sworn in last Wednesday, with                Reserve to postpone making any changes to RESPA-TILA
outgoing Speaker Nancy Pelosi formally handing over the             disclosures since Treasury has announced that RESPA-TILA
gavel to the Republican leader, John Boehner of Ohio. The           integration is a first priority of the Consumer Financial
shift in power gives control of the House to Republicans like       Protection Board (CFPB), as mandated by the Dodd-Frank
Spencer Bachus of Alabama. As the new chairman of the               Act; supports the proposals to clarify rescission requirements
Financial Services Committee, Bachus has said he will conduct       for closed-end residential mortgages and encouraged the
vigorous oversight of the implementation of the Dodd-Frank          Board to finalize those provisions; opposed the Board’s efforts
Act and lead the efforts to restore our nation’s secondary          related to redefining what constitutes a “refinancing” for
market for housing finance.                                         purposes of providing consumers with new TILA disclosures
    The White House was not immune from the shake-up                and substantive rights. Under the proposal most modifications
occurring in Washington, with President Obama on Thursday           granted to delinquent or financially troubled borrowers would
naming Bill Daley to serve as his second chief of staff. Daley,     be considered refinances and in turn triggers new disclosures,
a former cabinet secretary in the Clinton administration and        rescission rights, and various prohibitions; in this connection
currently a senior executive at JPMorgan Chase, will steer the      MBA opposes the proposal to abandon the “satisfaction and
White House during a new period of divided government and           replacement” standard for determining what constitutes a
through next year’s presidential election. Known widely as a        refinancing; opposes establishment of new consumer right
pragmatic dealmaker, the president’s new top aide is likely to      to a refund of fees for three-days following receipt of initial
take a less confrontational tone with the business community.       disclosures without a review by the new Bureau of all current
    Please note: MBA’s annual legislative lobbying event in         disclosure and disclosure timing requirements, including the
Washington, DC, the National Policy Conference (NPC) will be        right of rescission for refinance loans; supports establishment
held this year on March 30-31. These are new dates, which reflect   of a new calculation test for determining higher-priced loans
a change in the recently announced 2011 Congressional schedule.     under the 2008 HOEPA final rule and HOEPA requirements
                                                                    only if it is established in conjunction with implementation
MBA Action:                                                         of Dodd-Frank and other similar requirements; and, supports
                                                                    changes to strengthen anti-deceptive advertising requirements,
MBA Submits Regulation Z Comment Letter to                          but opposes the proposed changes that would require lenders
Federal Reserve                                                     to provide unduly negative credit insurance disclosures and
     On Wednesday, December 22, 2010, MBA submitted a               changes that would treat FHA accrued interest as prepayment
comment letter to the Federal Reserve in response to proposed       penalties making FHA loans more difficult to originate.
amendments to the Truth in Lending Act (TILA), Regulation
Z. The proposed amendments touched on a wide array of               MBA Meets with OTS on Risk Retention
issues including changes to certain disclosure requirements,        Requirements
the right to rescind, requirements for determining when a               Today, January 7, 2011, MBA residential and commercial
modification or refinance is a new transaction requiring TILA       policy staff met with the Office of Thrift Supervision (OTS)
disclosures, establishing a new calculation for determining         to brief them on the association’s position on the current
“higher-priced” loans, a new three day post-application right       rulemaking on risk retention, the Qualified Residential
to a refund, determining prohibitions against misleading            Mortgage (QRM) exemption and other related forthcoming
advertisements in connection with open-end loans, changes to        requirements. MBA discussed the impact such requirements
credit insurance disclosures, as well as a change to treat FHA      will have on its members and the mortgage market. MBA
accrued interest requirements as a prepayment penalty.                                                        Continued on Page -7-

NMA@NebraskaMortgageAssociation.org                                                         www.NebraskaMortgageAssociation.org
Mortgage                                                                                   Nebraska Mortgage associatioN

                           Monitor
                                                                                                                        January, 2011
                                                                                                                             Page -7-




  MBA’s Mortgage Action Alliance… Continued from Page -6-
  presented its position that the QRM and the Qualified              while PowerSaver loans do not.
  Mortgage (QM) definition, which addresses the “ability
  to repay” standards, should be closely aligned so as to not        MBA Submits Joint Appraisal Independence
  exclude borrowers from credit by creating a broad collective       Letter to Federal Reserve
  definition. The point was also made that underwriting              On Tuesday, December 21, 2010, MBA submitted a
  flexibility must be maintained to preserve credit availability     comment letter to the Federal Reserve regarding its Interim
  and competition. Lastly, MBA said that it is important that        Final Rules on Appraisal Independence and signed a
  the safe harbor from the QRM definition under loans insured        joint trade letter with the American Financial Services
  by the Federal Housing Administration (FHA) be balanced            Association (AFSA), the Consumer Mortgage Coalition
  so its volume does not rise to unsustainable levels.               (CMC), the Housing Policy Council (HPC), and the Title
                                                                     and Appraisal Vendor Management Association (TAVMA).
  MBA Submits Letter to HUD on New Energy                            The Rule amends the Board’s Truth in Lending Act
  Efficient Improvement Loan                                         (TILA), Regulation Z, by implementing appraisal-related
  On Tuesday, December 21, 2010, MBA sent a comment                  requirements in section 1472 of the Dodd-Frank Act.
  letter to the Federal Housing Administration (FHA) on the          The Rule became effective December 27, 2010, although
  new PowerSaver loan product. The PowerSaver retrofit               compliance is optional until April 1, 2011. Upon its effective
  loan program, funded by $25 million in grant funds from            date, the Rule required appraisers to be paid “customary and
  the 2010 Omnibus Appropriations Act, will test whether             reasonable fees.”
  homeowners have an appetite for the loan product type by                MBA generally supports the Rule and believes that it
  trying pricing levels and incentives through a pilot program       comports with many of MBA’s principles for fostering the
  in certain communities. MBA’s brief expresses support              validity of property valuations and ensuring the integrity of
  of FHA’s efforts to provide consumers with more options            those who conduct such valuations. MBA believes the Rule
  for making energy efficient improvements affordable and            will help to minimize opportunities for fraud, coercion or
  that this program is another good substitution. The letter         undue influence; ensure that appraisers conduct property
  also emphasizes that this program would be a prudent               valuations in a manner that is free from the influence of any
  replacement of the Property Assessed Clean Energy (PACE)           party to a real estate transaction that has a financial interest
  loans that have been made by state and local governments           in its outcome; and maintain lender options with respect
  and repaid through the homeowner’s tax bill in which any           to the use of independent appraisers, appraiser or vendor
  unpaid debt would be ahead of any mortgage debt. PACE              management companies, and in-house appraisal staff.
  loans put the investment structure of the mortgage at risk



Sign up for HUD’s Email List
Sign up for HUD’s email list to receive up to the minute news from HUD regarding changes to FHA
programs and training!
     If you work in the Single Family Housing Industry, and work with FHA products, we recommend
that you subscribe and become a registered user. Registered users will automatically receive email notification of important industry
announcements such as anew mortgagee letters, handbooks, policy notices, FHA employment opportunities, housing counseling
information, events and training. This is a free service.
     To join, click on the subcription linkg above or email HUD at: listserv@hudlist.hud.gov and type “subscribe
homeownership-l” in the subject line as well as at the beginning of your email.
     (Please Note: This mortgage industry email list will not send you HudHome property listings, information for low - mod
income/first time homebuyers, housing assistance grants, Section 8 rental information or housing subsidies. Mortgage Industry
users who are seeking technical support should contact the FHA Resource Center.)



NMA@NebraskaMortgageAssociation.org                                                           www.NebraskaMortgageAssociation.org
Mortgage                                                                                            Nebraska Mortgage associatioN

                            Monitor
                                                                                                                                   January, 2011
                                                                                                                                        Page -8-




News from NIFA
HUD’s revised guidelines, as described in Mortgagee Letter                 fronts. First, NIFA is working with the National Council of
2010-20, have created a problem for NIFA lenders who are                   State Housing Finance Agencies (NCSHA) and FHA to get
“FHA-sponsored” lenders. The revised guidelines state that:                this guideline modified. Secondly, NIFA is working on an
      “Once approved by the sponsoring FHA-                                affordable conventional loan that can be used as an alternative
         approved mortgagee, a loan must close in                          to an FHA loan.
         the name of the sponsoring underwriting                                In other news, NIFA has scheduled two events that are of
         mortgagee.”                                                       interest to lenders. First, NIFA’s 2011 Housing Innovation
    The problem is that not all “sponsoring lenders” close                 Marketplace - “The Upside of Down” housing conference will
third-party loans in their own name. Therefore, some NIFA                  be held at the Omaha Marriott Hotel on January 25th and 26th.
originating lenders, those who rely on sponsorship for                     Details are available on their website at www.nifa.org. Second,
originated FHA loans, are unable to originate FHA NIFA loans.              NIFA has scheduled lender training for April 5th in North
    Although this problem wasn’t created by NIFA they are                  Platte and April 6th in Omaha. The training is free of charge
working toward finding a solution. Their efforts are on two                and lenders will be able to register for the training in March.
                                                                                                      George Akers, NMA Newsletter Editor




                               See Registration Forms at the back of this newsletter


                                               Nebraska Mortgage associatioN
                                          aNd republic Mortgage iNsuraNce coMpaNy
                                                         preseNt…

     “Self-Employed Borrower” and “Rural Property and Small Community Appraisals”
             Wed., Feb. 2nd – Omaha,        Thur., Feb, 3rd – Grand Island

          Self-Employed Borrower — 9:00 am – Noon (8:30 Registration/Sign-in)
              Attend this class to learn how to calculate qualifying income for self-employed borrowers and others or sharpen your
          existing self-employed borrower knowledge and skills. This hands-on course quickly reiterates the fundamentals of income
          analysis for self-employed borrowers followed by an extensive case study activity. Participant will have the opportunity to
          fully review the personal tax return and dive into business tax returns. This course utilizes the RMIC Tax Return Analysis
          Worksheet.



          Rural Property and Small Community Appraisals — 1:00 – 3:00 pm                                    (12:30 Registration/Sign-in)
              In this session participants will learn what makes small community and rural properties challenging to review. We will
          discover how to interpret key sections of the appraisal and understand what practices are or are not acceptable. Participants
          will examine a number of real appraisal examples and learn how to determine if the appraisal adequately supports value.



         Register Early! Space is limited and enrollment is based on first-come, first-served basis. See back for location information.

                          Online Registration Available at — https://www.regonline.com/self_employed



NMA@NebraskaMortgageAssociation.org                                                                    www.NebraskaMortgageAssociation.org
Mortgage                              Nebraska Mortgage associatioN

                       Monitor
                                                            January, 2011
                                                                 Page -9-




NMA@NebraskaMortgageAssociation.org    www.NebraskaMortgageAssociation.org
                                                    Nebraska Mortgage associatioN
                                               aNd republic Mortgage iNsuraNce coMpaNy
                                                              preseNt…

  “Self-Employed Borrower” and “Rural Property and Small Community Appraisals”
                           February 2, 2011 – Omaha

         Self-Employed Borrower — 9:00 am – Noon (8:30 Registration/Sign-in)
             Attend this class to learn how to calculate qualifying income for self-employed borrowers and others or sharpen your
         existing self-employed borrower knowledge and skills. This hands-on course quickly reiterates the fundamentals of income
         analysis for self-employed borrowers followed by an extensive case study activity. Participant will have the opportunity to
         fully review the personal tax return and dive into business tax returns. This course utilizes the RMIC Tax Return Analysis
         Worksheet.



         Rural Property and Small Community Appraisals — 1:00 – 3:00 pm                                    (12:30 Registration/Sign-in)
             In this session participants will learn what makes small community and rural properties challenging to review. We will
         discover how to interpret key sections of the appraisal and understand what practices are or are not acceptable. Participants
         will examine a number of real appraisal examples and learn how to determine if the appraisal adequately supports value.



       Register Early! Space is limited and enrollment is based on first-come, first-served basis. See back for location information.
                                        Register Online — https://www.regonline.com/self_employed

Registration Fees (Lunch on own):                         One Session (am OR pm) Both Sessions (All Day)          Cancellation Policy: A written
  NMA Member                                                      $40                    $75                      cancellation notice must be
  NMA Non-Member                                                  $50                    $90                      received 5 working days prior to
  Group Discount Rate                                             $25/pp*                $45/pp*                  the date of workshop to receive
       (For groups of 5–10;                                                                                       a refund.
       Larger groups - call for pricing - 402-434-7683)

Company:                                                                 Phone #:


Address:                                                                 City/State/Zip:
                                                                                                             Self       Rural
                                                                                                           Employed    Appraisal Both $
Name                                                  Email                                                       Please Circle One

                                                                                                             Self       Rural
                                                                                                           Employed    Appraisal Both $
Name                                                  Email                                                       Please Circle One

                                                                                                             Self       Rural
                                                                                                           Employed    Appraisal Both $
Name                                                  Email                                                       Please Circle One

                                                                                                             Self       Rural
                                                                                                           Employed    Appraisal Both $
Name                                                  Email                                                       Please Circle One

                                                                                                             Self       Rural
                                                                                                           Employed    Appraisal Both $
Name                                                  Email                                                     Please Circle One



                                                                                                                Total Registration: $
  VISA  Mastercard                      Amount to Charge: $                       Check #


 Acct #:                                                              Exp.          Card Verification #

 Signature Authorization:
               Register Online — https://www.regonline.com/self_employed OR Send registration form with payment to:
NMA  P.O. Box 6141  Lincoln, NE 68506  Fax 877-355-9226                                        nma@NebraskaMortgageAssociation.org
                                                    Nebraska Mortgage associatioN
                                               aNd republic Mortgage iNsuraNce coMpaNy
                                                              preseNt…

  “Self-Employed Borrower” and “Rural Property and Small Community Appraisals”
                        February 3, 2011 – Grand Island

         Self-Employed Borrower — 9:00 am – Noon (8:30 Registration/Sign-in)
             Attend this class to learn how to calculate qualifying income for self-employed borrowers and others or sharpen your
         existing self-employed borrower knowledge and skills. This hands-on course quickly reiterates the fundamentals of income
         analysis for self-employed borrowers followed by an extensive case study activity. Participant will have the opportunity to
         fully review the personal tax return and dive into business tax returns. This course utilizes the RMIC Tax Return Analysis
         Worksheet.



         Rural Property and Small Community Appraisals — 1:00 – 3:00 pm                                    (12:30 Registration/Sign-in)
             In this session participants will learn what makes small community and rural properties challenging to review. We will
         discover how to interpret key sections of the appraisal and understand what practices are or are not acceptable. Participants
         will examine a number of real appraisal examples and learn how to determine if the appraisal adequately supports value.



       Register Early! Space is limited and enrollment is based on first-come, first-served basis. See back for location information.
                                        Register Online — https://www.regonline.com/self_employed

Registration Fees (Includes Lunch!):                      One Session (am OR pm) Both Sessions (All Day)          Cancellation Policy: A written
  NMA Member                                                      $50                    $85                      cancellation notice must be
  NMA Non-Member                                                  $60                    $100                     received 5 working days prior to
  Group Discount Rate                                             $35/pp*                $55/pp*                  the date of workshop to receive
       (For groups of 5–10;                                                                                       a refund.
       Larger groups - call for pricing - 402-434-7683)

Company:                                                                 Phone #:


Address:                                                                 City/State/Zip:
                                                                                                             Self       Rural
                                                                                                           Employed    Appraisal Both $
Name                                                  Email                                                       Please Circle One

                                                                                                             Self       Rural
                                                                                                           Employed    Appraisal Both $
Name                                                  Email                                                       Please Circle One

                                                                                                             Self       Rural
                                                                                                           Employed    Appraisal Both $
Name                                                  Email                                                       Please Circle One

                                                                                                             Self       Rural
                                                                                                           Employed    Appraisal Both $
Name                                                  Email                                                       Please Circle One

                                                                                                             Self       Rural
                                                                                                           Employed    Appraisal Both $
Name                                                  Email                                                     Please Circle One



                                                                                                                Total Registration: $
  VISA  Mastercard                      Amount to Charge: $                       Check #


 Acct #:                                                              Exp.          Card Verification #

 Signature Authorization:
               Register Online — https://www.regonline.com/self_employed OR Send registration form with payment to:
NMA  P.O. Box 6141  Lincoln, NE 68506  Fax 877-355-9226                                        nma@NebraskaMortgageAssociation.org

				
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