FAMP Miami Chapter
 

American Banker  |  Tuesday, March 31, 2009

WASHINGTON — House Financial Services Committee Chairman Barney Frank's bill to curb risky mortgage lending is sparking concerns that it could push some major players from the market and leave borrowers with little choice but 30-year fixed loans.The bill, introduced late last week as a centerpiece of Frank's agenda, is significantly tougher than a similar measure the House passed two years ago. Among other changes, it would require loan originators to retain at least 5% of the credit risk of a mortgage, and it would give liability protection only to loans with a 30-year fixed rate.     "This would return mortgage lending back to the 1950s and has a limiting effect on mortgage products," said Scott Talbott, a senior vice president for the Financial Services Roundtable.     
The overall impact of the 151-page bill was unclear Monday, with industry lobbyists still combing through it. But many said that if it passed in its current form, it would fundamentally alter the mortgage market.    
 "Everything in here is going to have a profound change on the way in which the mortgage lending business is carried out," said Steve Zeisel, a vice president and senior counsel at the Consumer Bankers Association. "There is nothing small about this."
     The bill remains based on the Frank legislation that was passed in 2007 but not picked up by the Senate. The crux of the measure would establish basic underwriting standards to ensure borrowers qualify only for loans they can repay and would increase liability throughout the mortgage chain to ensure accountability.     It would provide banking regulators with discretion to write rules to help determine whether a loan is affordable or — in the case of refinancings — provides a net tangible benefit to the borrower.     The bill also includes penalty provisions that would let borrowers sue and even rescind a loan that fails to comply with the bill's standards, but it would offer a safe harbor to loans that fall within certain guidelines.

Click here for complete article
Click here for HB 1728

 
 

By Mosheh Oinounou, FOXNews.com

The House passed a bill Thursday intended to ease the burden on homeowners struggling to pay their mortgages.

The so-called "cram down" bill passed by a 234-191 margin. The final tally was not entirely party-line as 24 Democrats voted against the bill and seven Republicans supported the measure.

The legislation, which now heads to the U.S. Senate for consideration, empowers federal judges to modify the mortgages for borrowers who file for bankruptcy, including lengthening loan terms, reducing interest rates and cutting principal payments. 

The bill is officially dubbed the "Helping Families Save Their Home Act," but is known as the "cram down" bill because it enables judges to reduce or cram down the size of the mortgage.

                      FINISH READING ARTICLE

 
 

The Treasury Department has moved at record speed to implement one piece of the new American Recovery and Reinvestment Act of 2009 Act aka the stimulus act.

The Department and the Internal Revenue Service which will manage it announced on Wednesday that forms and regulations are already in place for homebuyers who wish to claim the first-time credit enabled under the act.

The credit is available to homebuyers who purchase a home before December 1 of this year.  In an effort to make the effects of the credit felt quickly in the economy, homebuyers can claim the credit either on their 2009 tax return or immediately on the 2008 return due in April.

The tax credit represents 10 percent of the purchase price of a home up to a maximum of $8,000 or $4,000 for married taxpayers filing separate returns.   The $7,500 credit that was authorized under earlier legislation last year was actually a 15 year loan; the new tax credit does not have to be repaid by the homeowner under ordinary circumstances.

The credit does have to be repaid if the homeowner sells the home in less than 36 months or if the home ceases to be his principal residence during that time.

For the purpose of this credit, a first time homeowner is defined as one who has not owned a home for the 36 months ending on the date of purchase.

The credit is available to taxpayers with adjusted gross incomes up to $75,000 or $150,000 for married taxpayers filing jointly.  Above those income levels the credit is phased out gradually.

Homeowners who purchased a house between April 8 and December 31, 2008 are not eligible for the new credit.  They are covered by the earlier legislation and can claim the $7,500 repayable credit.

Treasury Secretary Tim Geithner said in a press release from his department, "The expansion of the first-time home buyer tax break as part of the President's recovery agenda gives money to taxpayers when they need it most, while also targeting an important group of buyers.  We view our economic recovery plan, our financial stability plan, and now this homeowner affordability plan as three legs of the same stool - an integrated whole that represents our immediate response to the current crisis."

Forms and instructions for claiming the credit on 2008 tax returns are available at www.irs.gov.  The form number is 5405.

 
 

Legal Aide Attorney from Jacksonville is forcing lenders to produce original notes in order to proceed with foreclosures in Florida.

 
 

Shiller on Obama's Housing Program; Analysis and Discussion with Economic Professor 

 
 


Here are some of the highlights:

1) Require all mortgage company employees ... not just mortgage originators ... to hold individual licenses
2) Define Loan Origination fees as all fees received by mortgage brokers, including yield spread premium
3) Allow Florida's Office of Financial Regulation to use your credit report to determine if you qualify for a Florida mortgage license
4) More than double the fees required to gain and keep a Florida mortgage license current
5) Require Florida mortgage professionals who have already taken Florida's pre-licensing class, passed the licensing test and maintained continuing education credit to start all over again and do it again. 

 
 

March 16 to March 18, 2009 - Come with FAMB to Tallahassee's Home Finance Lobby Days to speak with your Florida State Senators and Representatives to help them understand the important role Florida's Mortgage Brokers play in helping homebuyers obtain affordable home financing options.

 
 

Did you see the article in the New York Times labeled:
“Banks Bypassing Mortgage Brokers”
If not, here it is:
http://www.nytimes.com/2009/02/01/realestate/01mort.html
Tell us what you think? How have you been affected?

 
 

During these challenging and interesting times in our industry, the FAMB, which is proudly celebrating its 49th Anniversary, is always looking for ways to enhance value to our industry and our members. Along with the tremendous benefits that you presently enjoy such as state lobbying efforts in Tallahassee, statewide Public Relations and visibility for FAMB and its members, and first-rate education, FAMB has taken your membership benefits to the next level and is now part of the National Federation of Mortgage Professionals (NFMP).  NFMP will focus primarily in the areas of industry excellence, governmental awareness and consumer protection. As a part of this exciting national initiative, FAMB members will experience representation at the federal level in Congress and all of the key regulatory agencies.  FAMB's involvement with NFMP will allow you to continue enjoying and receiving all of your current member benefits, and now have legislative representation that is national in nature, yet local in purpose.  In other words, FAMB and its members will determine the issues that are important to us and help decide how those issues are conveyed in Washington, DC.  The NFMP logo is available for our members for their web site, business cards and all other marketing materials. While we are very proud of our longevity, reputation, connections and member benefits, we recognize that during these times, we're all watching the bottom line.  In that regard, although FAMB has added a significant new member benefit, we have reduced membership dues in our most popular categories, specifically Professional Members.   Although FAMB is no longer affiliated with NAMB, our current and prospective members can take comfort in the knowledge that our benefits and level of service will only increase and our voice will continue to be heard in Washington DC.  In the interim, FAMB, in getting back to its roots, has always been about the Florida mortgage professional first and we remain so to this day more than ever.  FAMB has been advocating for you since 1960 and we will continue in that regard to a greater extent than ever before. In the spirit of continuing to enhance awareness and our reputation among legislators, regulators, media, industry professionals and the general public, FAMB has created a Mortgage Professional (MP) designation that will differentiate you from the competition.  The MP designation is only available to FAMB Professional Members.  Our target audiences, through the efforts of our statewide Public Relations campaign, will understand that those of us with the MP designation not only are governed by the Association's Code of Ethics, but also have met the requirements of licensure which include continuing education and background check requirements.  This MP designation will nicely coincide with your CRMS, CMC or GMA if you have it and will easily replace your Lending Integrity Seal of Approval. With so much going on in our industry, our economy, our state and our country, you can rest easy knowing that FAMB remains exclusively focused on the preservation of mortgage professionals in Florida.  A quick visit to www.famb.org will tell you all that you need to do to obtain the MP designation and the NFMP logo. If you have any questions, I invite you to contact FAMB Headquarters at 800-289-9983.

 
 

The State of Florida Financial Services Commission and the Office of Financial Regulation have recently implemented Emergency Rules with respect to the processing of license applications for persons who have been found guilty of, or who have pled guilty or nolo contendre to, certain crimes.
   The policies address applications for licensure as mortgage brokers, mortgage lenders, correspondent lenders and mortgage brokerage businesses. The rules provide that a person who has been found guilty of, or who has pled guilty or nolo contendre to, a felony involving fraud, dishonesty, breach of trust or money laundering (Class "A" crimes) is not eliginle for licensure as a mortgage broker.  
    A person who has been found guilty of, or who has pled guilty or nolo contendre to, certain other felonies constituting moral turpitude, including but not limited to specified serious violent crimes (Class "B" crimes) is not eligible for licensure as a mortgage broker until 15 yeasr have passed.  A person who has been found guilty of, or who has pled guilty or nolo contendre to, a felony constituting an act of moral turpitude that is not addressed under Class "A" or "B" crimes (Class "C" crimes) is not eligible for licensure as a mortgage broker until seven years have elapsed.  A person who has been found guilty of, or who has pled guilty or nolo contendre to, a misdemeanor involving fraud, dishonest dealing or moral turpitude (Class "D" crimes), is not eligible for licensure as a mortgage broker until five years have elapsed.
    For information regarding the Emergency Rule, please contact Terry Straub, Director, Division of Finance, Office of Financial Regulation, The Fletcher Building, 200 East Gaines Street, Tallahassee, Florida 32399, (850) 410-9805, terry.straub@flofr.com