HAPPY HOLIDAYS!
From all of us at Wolters Kluwer Financial Services, we wish you and your families a safe and happy holiday season. We look forward to serving you in 2008.
FEDERAL PREDATORY LENDING BILL SENT TO THE SENATE
A recently introduced bill addressing predatory lending has made it through the U.S. House of Representatives and is now headed to the Senate. The Mortgage Reform and Anti-Predatory Lending Act of 2007 (HR 3915), modeled after North Carolina’s anti-predatory lending legislation, would amend the Truth-in-Lending Act and take strong measures against high cost loans, yield spread premiums, and loan “flipping.” It would also establish a national loan originator licensing standard by requiring states to subscribe to a federal program or establish its own licensing program.
While the bill could undergo major changes in the Senate, many industry experts believe it has a good chance of becoming law. If it does, it will set a national standard with regard to predatory lending, an area that has come under increased scrutiny in recent years.
The bill has been met with mixed reviews from the lending industry and consumer advocacy. Whether it will have the profound impact many are predicting remains to be seen, it’s certainly an issue that many in the industry will follow.
We’ll continue to monitor this legislation and similar legislation to keep you informed. In the meantime, if you wish to voice your opinion on the new legislation, contact your U.S. Congressperson or U.S. Senator.
FEDERAL RESERVE WITHDRAWS EDISCLOSURE RULES
The Federal Reserve Board recently withdrew portions of an interim final rule relating to eDisclosure requirements. Perceiving these portions as permissive, The Federal Reserve Board thought the rule created confusion and was possibly inconsistent with the Electronic Signatures in Global and National Commerce Act of 2000 (E-SIGN). Only portions of the rule considered redundant or unnecessary to protect consumers were withdrawn. The revisions will hopefully clarify lender requirements under Regulation Z, Regulation B, and E-SIGN. Since the interim final rule was not mandatory, compliance was not required.
MORTGAGE APPLICATION KITS
As the holiday season approaches, many borrowers find themselves hard-pressed for the time to complete a traditional mortgage application. Others may have the time, but would like more information before applying.
To help these borrowers, we’ve developed the Mortgage Application Kit. The kit contains a wide variety of helpful documents, including the Uniform Residential Loan Application, the Guide to Completing the Loan Application booklet, and additional consumer education pieces to help borrowers understand the mortgage loan process.
Discover the advantages our Mortgage Application Kit can offer you and your borrowers.
LOAN MODIFICATION MADE EASY
Home foreclosures are devastating. In addition to displacing a homeowner, a typical foreclosure can result in up to $80,000 in losses, according to an April 2007 report from Congress’ Joint Economic Committee. It affects more than just the homeowner. Lenders, local government, and even neighbors feel the burden of a foreclosure.
With approximately 1.5 million subprime adjustable rate mortgages (ARMs) expected to reset to higher interest rates in 2008, servicers need to swiftly start loan modification programs to avoid costly foreclosures and to make payments more affordable.
We can help you with loan modification programs that are compliant and specific to your needs. Using a standard, yet customizable set of documents and packages, you’ll be able to freeze the interest rate of your borrowers’ existing ARMs for a specified period, or modify ARMs to fixed-rate or interest-only fixed-rate loans.
To learn more about our loan modification solutions, please call 1.800.726.9898, Ext. 3.
REMINDERS
- Check out ComplianceHeadquarters™, your free online resource for additional real estate compliance information.
- Missed an issue of the VMP® Information Newsletter? Access previous issues in the archive.
- Curious about Reverse Mortgages? Learn more about this increasingly popular offering.
- We welcome any comments or suggestions for this newsletter. Please forward any to Angela Coenen at angela.coenen@wolterskluwer.com.
