AGENCIES REQUEST COMMENTS ON SUBPRIME LENDING STATEMENT
The same federal agencies which brought you the Interagency Guidance on Nontraditional Mortgage Product Risks (the “Guidance”) has released a proposed statement relating to subprime lending practices and has invited comments from the industry.
The OCC, Federal Reserve, FDIC, OTS, and NCUA have issued a request for comments on a proposed statement relating to subprime lending practices. The statement discussed risk management practices, underwriting standards, consumer protection principles, and control systems to ensure that actual practices are consistent with policies and procedures. The statement was drafted to respond to concerns that the Guidance did not adequately address certain adjustable rate products, such as loans with teaser rates, low- or no-doc loans, or other similar products.
The statement, among other recommendations, suggests that lenders strongly consider whether a borrower would qualify for a loan at the fully indexed rate in order to mitigate, or avoid, payment shock once an introductory interest rate has expired.
The statement has been met with some concern from organizations such as the Mortgage Bankers of America, which intends to submit its comments on the proposed statement. It has been met with support, however, from organizations such as the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.
The press release containing the statement also contains information on how to submit your comments on the proposed statement. Please click here to read the press release to read the statement and to learn how to comment.
Wolters Kluwer Financial Services will continue to monitor this issue to keep you up-to-date on any developments.
APRIL LEGISLATIVE CALENDAR
No states begin their legislative sessions in April, 2007.
The following states will conclude their legislative sessions in April, 2007:
- Arizona (April 18, 2007)
- Idaho (April 11, 2007)
- Indiana (April 29, 2007)
- Iowa (April 28, 2007)
- Kansas (April 8, 2007)
- Maryland (April 9, 2007)
- Mississippi (April 1, 2007)
- Montana (April 24, 2007)
- North Dakota (April 26, 2007)
- Washington (April 22, 2007)
POSTAL RATES SET TO RISE MAY 14
The US Postal Service Board of Governors approved new first class and standard mail postal rates that were proposed by the US Postal Commission. The new rates, which will go into effect on May 14, represent an average 7.6 percent rate increase overall. The price to mail a first-class letter will rise from 39 cents to 41 cents. A flat-rate priority mail envelope will increase from $4.05 to $4.60. For more information, visit www.usps.com.
Looking for ways to cut costs? Securely deliver your documents electronically—with the peace of mind only an audit trail can provide. Check out SDX- Secure Document Exchange at www.WoltersKluwerFS.com/SDX.
GET AN EXCLUSIVE LOOK AT SDX SECURE DOCUMENT EXCHANGE
You’ve read about it in Mortgage Technology Magazine now see it for yourself. Find out what’s behind SDX.
How does it automate your e-disclosure processes and ensure security?
Why is it so easy to implement?
How have other financial institutions benefited so much in just 30 days?
Find answers to your SDX questions by attending one of our live, 20-minute demonstrations and gain first-hand knowledge of the leading security technology of SDX. Register at www.WoltersKluwerFS.com/briefing.
Dates/Times:
Monday, April 16 12:00 pm EST
Wednesday, April 18 2:00 pm EST
Friday, April 20 12:00 pm EST
For more information on SDX, please visit www.WoltersKluwerFS.com/SDX.
VMP ELECTRONIC FORMS AND EBOOKLETS AVAILABLE IN PDF FILE FORMAT
Wolters Kluwer Financial Services’ VMP industry-leading standard forms are available in electronic format to give mortgage lenders the time and cost savings of digital processing and the speed-to-market advantages of compliant document content. VMP Mortgage Forms are the most widely used and accepted forms on the secondary mortgage market.
Available in a variety of subscription packages, VMP compliant mortgage documents support the originating, processing, underwriting, closing and post closing of conventional, government, and investor mortgage loan programs.
The VMP mortgage eForms library of forms, including our recently introduced eBooklet offerings (HUD, CHARM and Non-traditional Consumer Education eBooklets), are now available in PDF file format.
The PDF file format addition compliments our popular file format offerings including UFX (VMP’s form-centric file architecture), UFX with global data dictionary field tagging, PCL, OVL, XML, XHTML and the specifications of the Mortgage Industry Standards Maintenance Organization’s (MISMO) DTD library.
Please visit our website, www.wolterskluwerfs.com, for more information. Please contact your Wolters Kluwer Financial Services sales representative for ordering information or contact Customer Support at 800-552-9410, or customersupportdigital@wolterskluwer.com to place an order for forms.
