All posts by Sunil Sunil

Why the Mortgage Market is Hard To Conquer with New Technologies

Mortgage lending has proven to be a tough industry for new companies to make waves in, and the sudden shutdown last week of San Francisco mortgage startup Sindeo helps show why.

Sindeo was one of more than two dozen startups seeking to streamline the cumbersome mortgage application, origination and closing process. Despite having what many described as top-flight technology and executives, it took down its website Tuesday night and replaced it with a brief note saying it had “made the difficult decision to wind down Sindeo.”

It didn’t say why, but a note from CEO Nick Stamos to investors obtained by Housing Wire said an investor who had committed to fund it tacked on a last-minute requirement to close the deal that it couldn’t meet. “My subsequent efforts to secure emergency bridge financing from this investor and others were also not successful,” he wrote.

Stamos said the company laid off 61 of its 70 employees Tuesday, keeping a small team to deal with loans already in process.

According to CB Insights, Sindeo had raised $25.5 million from investors including Renren, the Chinese social networking company.

Sindeo was a mortgage broker, which means it originated loans for others, but did not fund them itself. Its website formerly said it offered access to “40+ lenders & 1,000+ loan programs to best meet your specific needs and goals” and “closings in as few as 15 days.”

Borrowers, it said, could apply for a loan on a smartphone, tablet or desktop computer and get a preapproval letter in just five minutes. Unlike other companies offering only automated service, Sindeo also had human advisers whose pay was based not on commission but on “customer satisfaction.”

Eric Boyenga, whose South Bay real estate firm had a marketing partnership with Sindeo, had more than 20 clients who got mortgages through Sindeo. “The technology behind it was great. They had really top talent,” Boyenga said. But “the whole tech industry is tightening a bit. All you hear about is Google, Amazon, Facebook and Apple. If you look at the startups, investors wanted to see a higher return, faster.” With Sindeo, “they weren’t seeing what they were looking for.”

Getting a mortgage is a time-consuming process that involves shopping for a loan; choosing from various rates and terms; filling out an application; submitting pay stubs, tax returns and financial statements; waiting for approval; and, finally, closing the loan.

It is highly regulated by federal and state governments and requires coordination with appraisers, title companies, county recorders’ offices and investors, who buy most loans.

Mortgage-tech companies are attempting to save people time and money by letting them shop and apply online and either upload their documentation or give the mortgage company permission to pull it directly from employers, financial institutions and the IRS. But it’s still a Herculean task.

A true digital mortgage “lets consumers run the loan from application to funding from any device, with the choice of working on their own or having a loan adviser jump in at any time — and enabling the lender to have a fully documented loan that passes all rules and regulations from both lawmakers and investors,” said Julian Hebron, an executive vice president with RPM Mortgage.

On top of hiring engineers and attorneys, “you need a huge investment in customer acquisition. In the end, it proved to be too much for Sindeo, and it will prove too much for the other mortgage disruptors.”

To compete, a company needs lending, technology, regulatory and marketing infrastructure, Hebron said.

The company that has all four is Quicken Loans, the nation’s largest nonbank mortgage lender and the third biggest overall after Wells Fargo and Chase, according to Inside Mortgage Finance.

Quicken makes loans directly to borrowers, traditionally over the phone. In early 2016, it launched Rocket Mortgage, an all-digital loan whose ads are hard to miss. In 2016, Rocket accounted for $7 billion of the company’s $96 billion in loans.

About two-thirds of those getting Rocket loans are buying rather than refinancing and about half are Millennials, said Regis Hadiaris, Rocket Mortgage product lead at Quicken.

He said Rocket customers are closing loans in as few as nine days for refis and 16 days for purchase mortgages. That compares with an industry average of 45 days.

“Because of the complicated nature of the industry, we took a very deliberate path to roll it out,” Hadiaris said. “We had a public (test) in 2013. We kept learning and adding to it.”

The question facing the industry, he said, is, “Will the large established companies with scale become innovative, or will the smaller, new entrants be able to scale?”

To succeed, “you need a lot more than a front-end user interface or mobile app. People’s financial lives are complicated. Mortgage underwriting is complicated. Building simple technology that lets people do this on their own is like putting someone who doesn’t know how to fly in the seat of a 747.”

That may be true, but it won’t stop companies from trying to break into the industry, which originated almost $2 trillion in mortgages last year.

CB Insights identified 25 “mortgage startups transforming the mortgage industry.”

Unlike Sindeo, which was purely a broker, some are mortgage banks that initially fund the loans they make, although they quickly sell most or all of them. They include Lenda and Clara Lending (both in San Francisco), and Better Mortgage (New York).

Lenda and Clara both distance themselves from Sindeo. “As a broker, you can’t control the price. You can’t control the speed” at which loans are closed, said Jason van den Brand, CEO of Lenda. “You can build something snazzy on the front end and give it to whoever you are brokering it to. But they could take two months to get it done. This is a business where time is money. We control the entire process.”

Others are business-to-business companies that provide software to mortgage originators who want to provide a digital experience. They include Blend (San Francisco), Roostify (Burlingame) and Cloudvirga (Irvine).

The industry is “so big and so complicated” that if you try to disrupt it all at once “you will probably die of indigestion,” said Blend CEO Nima Ghamsari. That’s why his company is focusing on one area. Sindeo, he said, “tried to disrupt it all at once.”

 

Source :  http://www.sfchronicle.com/business/networth/article/Sindeo-shutdown-shows-why-mortgage-industry-is-11243444.php

How Did YOUR Credit Union Perform in the Mortgage Market against California ?

California credit unions witnessed an uptick in mortgages over the past year, according to the latest snapshot report from the California Credit Union League that analyzed the year-over-year data trends for credit unions.

Credit unions in the state reported a 14% increase in first-mortgages year-over-year, which includes a mixture of fixed-rate, adjustable-rate, purchase, traditional refinance, and cash-out refinance.

Most notably, mortgages hit a record high outstanding dollar amount of $58 billion, rising 69% from the most recent low in 2011 of $34 billion. For added context, the last historical peak was $36 billion in 2009.

However, despite the record high in dollar amount, credit unions also posted an 8% year-over-year decrease in originations, falling to $2.82 billion.

This doesn’t come as too much of a surprise given the steady rise in home prices. According to S&P Dow Jones and CoreLogic’s latest report, home prices increased 5.5% in April.

Meanwhile, credit unions posted a 3% increase in the combined category of Home Equity Lines of Credit and home equity loans (second-mortgages). In total, the outstanding dollar amount hit $9.9 billion, rising 10% from the most recent low in 2014 of $9 billion. The record high was $14.2 billion in 2009.

As of late, regulatory pressure has hindered credit union growth. But, this doesn’t mean they aren’t doing well, as seen in the above numbers. Matt Kershaw, CEO of Clark County Credit Union, explained this in a recent interview with HousingWire.  Kershaw noted that while credit unions have grown since the crisis, it’s not proof that regulations are not damaging the industry.

 

Source: https://www.housingwire.com/articles/40598-heres-a-snapshot-of-how-california-credit-unions-performed-in-the-mortgage-market

Summary of Upcoming TRID Amendments for 2018

The CFPB finalized the long-awaited initial round of amendments to the TILA/RESPA Integrated Disclosure (TRID) rule, also known as the Know Before Your Owe rule.  However, instead of addressing the so-called “black hole” issue, which refers to situations in which a lender may not be able to use a Closing Disclosure to reset fee tolerances, the CFPB punted by releasing a proposed rule on the issue.

The proposed amendments were posted on the CFPB’s website at the end of July 2016.  Although the CFPB planned to finalize amendments in March, the final amendments, along with the related proposal, were not issued until the beginning of July.  While the amendments will become effective 60 days after publication in the Federal Register, mandatory compliance with the amendments will not be required until October 1, 2018.  The CFPB has been urged to take this approach to implementing regulations by industry members, as it allows for the testing of changes on a pilot basis before going live across a company’s entire platform.

In its press release announcing the amendments, the CFPB notes that it adopted (1) tolerances for the Total of Payments disclosure that are based on the existing finance charge tolerances, (2) a change to the partial exemption for certain down-payment and related assistance loans by excluding recording fees and transfer taxes from the fee limitation that applies to the exemption, (3) a change in the scope of the rule to cover loans on cooperative units, whether or not the cooperative is considered real property under applicable state law, and (4) clarifications on how to provide separate Closing Disclosures to the consumer and the seller.

The final rule is 560 pages in length and the proposal is 41 pages in length.  We will be analyzing the final rule and proposal and will provide a more detailed analysis in a future edition of our Mortgage Banking Update.

Source:  http://www.jdsupra.com/legalnews/cfpb-finalizes-trid-rule-amendments-76978/

Fannie Mae Updates Selling Guide

advances in their origination and servicing processes.
We currently have policies describing our requirements for delivering an eMortgage to Fannie Mae, where the promissory note and other documents, such as the security instrument, are created, transferred, and stored electronically rather than on traditional paper documentation with pen and ink signatures. We have similar requirements with respect to servicing-related documentation.
Many states are beginning to consider the use of electronic notarization (“eNotarization”) as a means for expediting or facilitating the closing process. This next step in the process of moving deeper into electronic origination requires greater specificity in our current policies; therefore, we are taking this opportunity to clarify our requirements for eNotarization. The practice of electronic notarizations (including remote notarizations) is not limited to eNote/eMortgage transactions.
Many state laws expressly permit in-person eNotarization. Only Virginia and Montana, however, have adopted laws and regulations expressly permitting remote notarization for mortgage loan documents; that is, the use of real-time, two-way audio/video communication to notarize documents. eNotarization is addressed in the federal Electronic Signatures in Global and National Commerce (E-SIGN) Act and the Uniform Electronic Transactions Act (UETA). However, the lack of specific state recognition of remote notarization has hampered its widespread adoption, particularly when accomplished by out-of-state notaries.
We accept delivery and servicing of mortgage loans with electronic documents, including security instruments or mortgage loan modification agreements that have been electronically notarized, either in person or remotely using real-time, two-way audio/video communication, provided certain requirements are met. The Selling Guide has been updated to reflect these requirements. Additionally, the Servicing Guide will be updated in June to reflect these requirements.
Effective Date
These requirements are effective immediately.

Medium of Recorded Mortgages
Currently, we require the lender to maintain a mortgage loan file that contains “originals” of the recorded mortgage or
deed of trust, riders, and loan modification agreements. Documents that are electronically recorded often appear the
same as those recorded on paper, which has led to confusion as to which documents are “originals” under our policy and
which are electronic copies.
As a result, we have updated this policy to allow for copies of the recorded documents that contain the recording
information from the recorder’s office. In addition, we have clarified that we require originals of any applicable unrecorded
rider and any other unrecorded document that changes the mortgage loan terms (or otherwise affects our legal or
contractual rights under the mortgage).
Effective Date
These updates are effective immediately.
ARM Pass-through Rate after Adjustment
Lenders may take down whole loan commitments to deliver ARMs to Fannie Mae. Currently, ARMs are committed using
the required net margin. We are changing the committing and delivery of whole loan ARMs to instead use the gross
mortgage margin that is on the security instrument. The Selling Guide has been updated to remove references to multiple
Glossary Terms that no longer apply. The Glossary Term yield differential adjustment has also been updated.
Using the gross mortgage margin will also impact how the pass-through rate is calculated when the ARM adjusts. This
change will be communicated in a future Servicing Guide update.
These changes will further align whole loan ARM execution with the process for ARM MBS.
Effective Date
These changes are effective for whole loan ARMs committed (and subsequently delivered) on or after September 1, 2017.
Over Deliveries of Whole Loan Commitments
We limit the amount by which a lender can deliver loans over the whole loan commitment amount, known as the “over
delivery” amount. The current maximum over delivery amount is 25% of the original commitment amount, up to a
maximum of the one unit single family conforming loan limit (currently $424,100). We are simplifying the over delivery
limit to only require that it not exceed 25% of the original commitment amount.
Effective Date
This change will be effective on whole loan commitments taken on or after June 12, 2017.
Whole Loan Cash Back Pair-offs
As part of the June 10, 2017 update to the PE-Whole Loan application, we are giving more flexibility to lenders in pairingoff
whole loan commitments. We are removing the following requirements when determining if a commitment is eligible
for a cash back pair-off:
• pair-off quotes requested after the expiration date of the original commitment (defined as no later than 5:00 p.m.
Eastern time on the expiration date);
• the lender accepts Fannie Mae’s offer of an overdelivery.
NOTE: Commitments paired off through the automatic pair-off process will continue to be ineligible for cash
back.

Effective Date
This change will be effective for lender-requested pair-offs performed on or after June 12, 2017.
*****
Lenders who have questions about this Announcement should contact their Account Team.
Carlos T. Perez
Senior Vice President and
Chief Credit Officer for Single-Family

 

Attachment
Section of the Announcement Updated Selling Guide Topics
Use of Electronic Notarization
including Remote Notarization
 A2-5.1-03, Electronic Records, Signature, and Transactions
 A3-2-01, Compliance With Laws
 B7-2-04, Special Title Insurance Coverage Considerations
Medium of Recorded Mortgages  A2-5.1-02, Individual Mortgage Loan Files
ARM Pass-through Rate after
Adjustment
 C2-1.1-07, Standard ARM and Converted ARM Resale
Commitments
 E-3-05, Glossary of Fannie Mae Terms: E
 E-3-13, Glossary of Fannie Mae Terms: M
 E-3-18, Glossary of Fannie Mae Terms: R
 E-3-25, Glossary of Fannie Mae Terms: Y
Over Deliveries of Whole Loan
Commitments
 C2-2-01, General Requirements for Good Delivery of Whole Loans
Whole Loan Cash Back Pair-Offs  C2-1.1-04, Mandatory Commitment Extensions and Pair-Offs

 

Source: https://www.fanniemae.com/content/announcement/sel1705.pdf

Freddie Mac Announces Guide Bulletin 2017-8

SUBJECT: SELLING UPDATES This Guide Bulletin announces: Collateral representation and warranty relief – new automated collateral evaluation  Automated collateral evaluation, including requirements for: – June 19, 2017 (New)  Eligibility  Age of automated collateral evaluation offer  Delivery Condominium Projects  Simplified requirements for Detached Condominium Projects  Additions to our list of ineligible projects – May 31, 2017 and August 31, 2017  Elimination of separate underwriting paths for streamlined project reviews Appraisal and property specific requirements  Addition of Uniform Appraisal Dataset (UAD) condition and quality ratings and level of updating definitions to the Guide as new Exhibit 36  Additional details about the sales contract provided to the appraiser  Updates to our eligibility and appraisal requirements for a 1-unit property with an accessory unit – August 31, 2017 Area median income estimates  Updates to Loan Product Advisor® and the Home Possible® Income & Property Eligibility tool to reflect the area median income estimates for 2017 – June 13, 2017 EFFECTIVE DATE All the changes announced in this Bulletin are effective immediately unless otherwise noted. COLLATERAL REPRESENTATION AND WARRANTY RELIEF – NEW AUTOMATED COLLATERAL EVALUATION Effective June 19, 2017 Building on the collateral representation and warranty relief announced in Bulletin 2017-3, this Bulletin announces our automated collateral evaluation, which provides the Seller with the option to waive the appraisal requirements for certain Loan Product Advisor Mortgages. Freddie Mac’s automated collateral evaluation leverages data and proprietary models to assess whether the estimate of value provided by the Seller to Loan Product Advisor may be used to underwrite the Mortgage in lieu of the appraised value. When the Seller accepts an automated collateral evaluation offer to waive the appraisal, the Seller will be relieved of its representations and warranties related to value, condition and marketability of the property.

When accepted, this appraisal waiver will help shorten origination timelines and reduce costs for Sellers and Borrowers while providing greater certainty through collateral representation and warranty relief. Eligibility Loan Product Advisor offer The Seller will receive a feedback message indicating that a Mortgage is eligible for an appraisal waiver on the Loan Product Advisor Feedback Certificate. If the Mortgage is not eligible for an appraisal waiver, the Feedback Certificate will specify that an appraisal is required. If the Mortgage meets the eligibility requirements in this Bulletin and the Seller receives the feedback message indicating the Mortgage is eligible for the appraisal waiver, the Seller may accept the offer by delivering the Mortgage with the ULDD Data Points described in the “Delivery requirements” section below. Mortgage eligibility The following requirements apply for a Mortgage to be eligible for the appraisal waiver:  The Mortgage must be secured by a 1-unit Primary Residence or second home  The Mortgage must have a loan-to-value (LTV)/total LTV (TLTV) ratio less than or equal to 80%  The Mortgage must be a no cash-out refinance  Upon assessment by Loan Product Advisor, the Feedback Certificate must indicate the Mortgage is eligible for collateral representation and warranty relief with an appraisal waiver  The final submission to the Selling System® must indicate the collateral representation and warranty relief status is “Y” or “Yes” Ineligible Mortgages The following Mortgages are not eligible for an appraisal waiver:  Mortgages for which an appraisal has been obtained in connection with the Mortgage  Mortgages secured by one of the following:  A Condominium Unit  A Manufactured Home, or  A leasehold estate  Mortgages secured by Mortgaged Premises subject to resale restrictions  Construction Conversion and Renovation Mortgages  Freddie Mac Relief Refinance Mortgages SM – Same Servicer or Open Access  Mortgages with Freddie Mac Settlement Dates more than 120 days from the Note Date In addition, Sellers may not accept an appraisal waiver offer through Loan Product Advisor if any of the following apply:  The Seller is required by law or regulation to obtain an appraisal  The Seller is aware of conditions it believes warrant an appraisal being obtained. Examples include but are not limited to:  The property is located in an area recently impacted by a disaster  A contaminated site or hazardous substance exists affecting the property or the neighborhood in which the property is located Page 3 For Mortgages with appraisal waivers, the Seller must not make any representation that Freddie Mac has performed a property review or obtained a valuation of the Mortgaged Premises. Guide impacts: Guide Sections 4203.1, 4501.6, 4603.5 and 5601.9 Age of automated collateral evaluation offer The appraisal waiver offer is valid for 120 days. If the offer is more than 120 days old as of the Note Date, a resubmission to Loan Product Advisor is required to determine ongoing appraisal waiver eligibility. Note: If the Seller changes loan data (e.g., address of the property, loan amount, estimate of value, loan type, property type, occupancy of the property) in a subsequent Loan Product Advisor submission, the original offer may be invalidated and a different automated collateral evaluation eligibility determination may be provided. Guide impacts: Sections 5601.8 and 5601.9 Delivery requirements Once the Seller has accepted the appraisal waiver offer for a Mortgage, the Seller must deliver the following ULDD Data Points for the Mortgage:  Property Valuation Method Type (Sort ID 89) and enter a valid value of “None”  Investor Collateral Program Identifier (Sort ID 376) and enter a valid value of “Property Inspection Alternative” Guide impact: Section 6302.10 Additional resources We encourage Sellers to visit the Collateral Representation and Warranty Relief page on the Freddie Mac Learning Center for available training and resources. CONDOMINIUM PROJECTS Detached Condominium Projects As a result of recent Mortgage performance trends, we are simplifying the project eligibility requirements for Detached Condominium Projects: Detached Condominium Project Requirements Previous requirements Revised requirements The Seller was required to determine compliance with:  The Condominium Project review requirements in Section 5701.2(a), and  The Condominium Project eligibility requirements, which have two components:  General Condominium Projects in Section 5701.2(b), and  The Detached Condominium Project review type in Section 5701.7(b) The Seller was required to determine compliance with Section 5701.2(b), including determining that the project is not an ineligible project as specified in Section 5701.3. The Seller is required to determine compliance with:  The Condominium Project review requirements in Section 5701.2(a), and  The Detached Condominium Project eligibility requirements in Section 5701.7(b) The Seller is no longer required to determine compliance with Section 5701.2(b), including determining that the project is not an ineligible project as specified in Section 5701.3

 

Compliance with Sections 5701.2(a), 5701.2(b) and 5701.3 and one of the project review types in Guide Chapter 5701 is still required for all other Condominium Projects. Guide impacts: Sections 5701.2, 5701.3 and 5701.7 Ineligible Condominium Projects As a result of our research and analysis, we are updating our list of ineligible Condominium Projects in Section 5701.3 as follows:  Projects with names that include the words “hotel,” “motel,” “inn,” or “lodge” or a branded hotel chain or name remain ineligible unless the project does not have the characteristics of a hotel or similar type of transient housing  Projects with pending litigation involving minor matters that do not affect the safety, structural soundness, functional use or habitability of the project and in which the litigation amount is unknown may be eligible if the requirements in Section 5701.3(i) are met Additionally, effective August 31, 2017, we are updating our list of ineligible projects as follows:  A project or an investment in a project, including Condominium Unit ownership that is characterized or promoted as an investment opportunity, that could be deemed to be an investment security is an ineligible project  A project with mandatory dues or similar membership fees for the use of Amenities, such as clubhouses or recreational facilities, is ineligible with certain exceptions Guide impacts: Sections 1301.11, 5601.2 and 5701.3 Streamlined project review We are aligning and consolidating the maximum LTV/TLTV/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio requirements for “LP Accept Mortgages” and “All Other Mortgages” underwriting paths. The maximum LTV/TLTV/HTLTV ratio requirements are now indicated solely by occupancy type. As a result, the maximum LTV/TLTV/HTLTV ratio for streamlined project review of non-LP Accept Mortgages for Condominium Units in Established Condominium Projects not located in Florida is increasing from 80% to 90% for primary residences. Guide impact: Section 5701.4 APPRAISAL AND PROPERTY SPECIFIC REQUIREMENTS Uniform Appraisal Dataset (UAD) condition and quality ratings and level of updating definitions For ease of Seller use and efficiency in the appraisal underwriting process, we are incorporating the UAD condition and quality ratings and level of updating definitions into the Guide as new Guide Exhibit 36. These ratings and definitions were previously only published in UAD Specification Appendix D: Field-Specific Standardization Requirements, which is posted on our UAD web page. Guide impacts: Section 5601.12 and Exhibit 36 Information supplied to the appraiser – changes to the sales contract In response to Seller inquiries, we are specifying that Sellers are not required to provide the appraiser with an updated sales contract unless the updated terms impact the physical description or condition of the property. In such cases, the Seller must obtain an updated appraisal of the property. Changes to the sales contract that are not required to be provided to the appraiser include, but are not limited to:  Changes to the transaction terms such as sales price, financing or sale concessions, and  Date revisions, corrections to typographical errors, etc. Guide impact: Section 5601.3 Page 5 Property with an accessory unit Effective August 31, 2017 Currently, Freddie Mac will purchase a Mortgage secured by a 1-unit property with only one accessory unit. To assist Sellers in identifying an accessory unit, we are updating our requirements and guidance as follows:  Requiring that the accessory unit have a kitchen and a bathroom  Providing examples of characteristics that may indicate a 2-unit property rather than a 1-unit property with an accessory unit, such as the zoning and land use requirements, covenants or homeowners association requirements, the existence of separate meters, ingress/egress or separate addresses for the units We are updating our comparable selection requirements for a 1-unit property with an accessory unit that complies with the zoning and land use requirements (legal or legal non-conforming zoning compliance) to require that the appraisal must include at least one comparable sale with only one accessory unit. The accessory unit of the comparable sale must also comply with the zoning and land use requirements to demonstrate the conformity and marketability of the subject property to its market area. Additionally, to allow Sellers to deliver a Mortgage secured by a 1-unit property with an accessory unit that does not comply with the zoning and land use requirements (illegal zoning compliance), we are adding the following requirements:  The “Site” section of the appraisal report must indicate that the accessory unit does not comply with zoning and land use requirements (illegal zoning compliance)  At least two comparable sales with each having only one accessory unit must be included in the appraisal report. The accessory unit of each comparable sale must also be non-compliant with the zoning and land use requirements to demonstrate the conformity and marketability of the subject property to its market area  The Seller must confirm that the existence of the accessory unit will not jeopardize future hazard insurance claims Guide impacts: Sections 5601.2 and 5601.12 AREA MEDIAN INCOME ESTIMATES The FHFA has issued the area median income estimates for 2017. Loan Product Advisor and the Home Possible Income & Property Eligibility tool will be updated by start of business on June 13, 2017 to reflect the 2017 area median income estimates. Because some 2017 estimates are lower than the area median income estimates for 2016, Home Possible Mortgages underwritten using the 2016 area median income limits may no longer be eligible for sale. If a Home Possible Mortgage received an “AcceptEligible” evaluation prior to June 13, 2017, but receives an “Accept-Ineligible” when resubmitted to Loan Product Advisor on or after June 13, 2017 due only to the new area median income estimates (that is, no other purchase restriction/reason for ineligibility applies), we will honor the original Feedback Certificate for the “eligibility” and purchase the Mortgage as long as there is no change to the Borrower’s income and/or the address of the Mortgaged Premises. In these instances, the original Feedback Certificate (pre-June 13, 2017) must have been returned by Loan Product Advisor no more than 120 days before the Note Date and both Feedback Certificates must be retained in the Mortgage file. GUIDE UPDATES SPREADSHEET For a detailed list of the Guide updates associated with this Bulletin and the topics with which they correspond, refer to the Bulletin 2017-8 (Selling) Guide Updates Spreadsheet available at http://www.freddiemac.com/singlefamily/guide/docs/bll1708_spreadsheet.xls. CONCLUSION If you have any questions about the changes announced in this Bulletin, please contact your Freddie Mac representative or call Customer Support at (800) FREDDIE. Sincerely,

Christina K. Boyle

Senior Vice President

Single-Family Sales and Relationship Management

Source: http://www.freddiemac.com/singlefamily/guide/bulletins/pdf/bll1708.pdf

The MPF Program Reminds Servicers of MI Cancellation Requirements for Conventional Loans

Reminder of MI Cancellation Requirements for Conventional Loans Servicers are reminded of their obligation to comply with the Homeowners Protection Act (HPA), the Guides, and all other Applicable Laws when cancelling mortgage insurance (MI) on conventional loans. Servicers must have policies and procedures in place to ensure MI is cancelled in accordance with HPA requirements based on borrower-requested cancellation, automatic termination, or final termination requirements. The MPF Program has reviewed the MI cancellation requirements in the Guides and clarified the guidelines. Each cancellation option now has its own section in the Guide, so that the requirements for each option are clear. See MPF Traditional Servicing Guide chapter 4.7.2. All eligibility requirements as specified in the HPA are incorporated into and are a pre-condition of the MPF Program’s MI cancellation policy.

Servicers of MPF Traditional and MPF Xtra loans are required to report all MI cancellations and terminations on conventional loans to the Master Servicer within five (5) Business Days of termination using the MI Cancellation Notice (Form SG343). See the updated form for additional information. MPF Traditional Servicing Guide chapter 4.7.2.6 and MPF Xtra Servicing Guide section 4.6 have been updated with the revised reporting requirements.

 

Source: https://www.fhlbmpf.com/ANNOUNCEMENTS/Lists/announcements/Attachments/54/MPF%20Announcement%202017-25.pdf

CFPB Issues Notice Regarding ATR/QM Rule Assessment

The Bureau of Consumer Financial Protection (Bureau) is conducting an assessment of the ATR/QM Rule under the Truth in Lending Act (Regulation Z), in accordance with section 1022(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The Bureau is requesting public comment on its plans for assessing this rule as well as certain recommendations and information that may be useful in conducting the planned assessment.

FEDERAL REGISTER NOTICE

Notice of assessment of Ability-to-Repay/Qualified Mortgage rule and request for public comment

SUBMIT A FORMAL COMMENT

Regulations.gov comment form for this notice

PUBLIC COMMENTS

Read comments received 

 

Source: https://www.consumerfinance.gov/policy-compliance/notice-opportunities-comment/open-notices/request-information-regarding-ability-repayqualified-mortgage-rule-assessment/

The Most Romantic Cities in the World

When we asked Travel + Leisure readers to rank their favorite cities in the world for romance in our 2016 World’s Best Awards survey, the 20 results covered more than 7,840 miles, ranging from the palm-fringed beaches of Hawaii to the luxury hideouts of Monte Carlo.

Italy, unsurprisingly, holds fast to four spots on this year’s list: one even claims the No. 1 title. Paris is a close second, and almost a requisite for any couple traveling in the name of love.

Beyond the beautiful but somewhat obvious picks, there are exciting new spots that ascended onto the list. The lavender fields of Aix-en-Provence, for example, and musical hills in Austria’s Salzburg. Cliffside Carmel-by-the-Sea took bronze this year, beating other romantic Californian destinations like San Francisco and Santa Barbara.

A popular Hawaiian honeymoon spot climbed the ranks, propelled by a winning combination of flourishing city culture and eternal island beauty. And this year’s No. 1 city in the world, Charleston, didn’t disappoint travelers seeking an easy, romantic weekend getaway.

Couples seeking cityscapes and wild nightlife, or those yearning for rugged coasts and uninterrupted countryside, can easily find a destination on this list that satisfies their unique passions.

Turn your one-on-one time into an adventure of a lifetime with these most romantic cities in the world.

No. 20 Lucerne, Switzerland

Nestled between the snowcapped Alps and Lake Lucerne, the city of Lucerne is a charming Swiss hideaway with medieval flourishes. Like Chapel Bridge, for example, which was built in 1333 and is often decorated with flowers. Visit charming old city squares and the Jesuit Church (the first Baroque church in Switzerland). For the most romantic place to bed down, Villa Honegg is just outside of the city center. This 1905 mansion-turned-hotel sports an outdoor heated pool with a full view of the mountains and lake below.

 

No. 19 Aix-en-Provence, France

As the birthplace of Cezanne, it’s easy to visit the places that brought the master’s paintings to life. Relax at cafes and local haunts like the Morning Market, though the best croissants can be found at Farinoman Fou. Check out the Aix vineyards, fragrant lavender fields, or head to the hot springs-fed baths first tapped by the Romans thousands of years ago. Southern France is like a pleasure garden, with pretty, moss-covered fountains spouting around every corner. Snack on calissons for a treat (candied fruit and almonds topped with a layer of icing). Because all romantic outings require a little something sweet.

No. 18 Salzburg, Austria

Salzburg is as storied as it is picturesque. With thousands of years of musical history (think: Julie Andrews and Mozart), the operas, musicals, and concerts held in the city will make your heart flutter. Tour Schloss Mirabell—a 17th-century palace with the famous Marble Hall—and the Baroque-style Mirabell Gardens, which feature the Pegasus Fountain, and Rose and Dwarf Gardens. The Renaissance-style Schloss Hellbrunn, on the other hand, houses the gazebo that wooed many a lover in the Sound of Music. Climb to the cliff-top fortress, Festung Hohensalzburg, to see the glimmering city lights below (it’s also one of the most stunning medieval castles in Europe). Looking to take your love even higher? Grab a cable car up on the Untersberg for an unparalleled view of Salzburg and the Salzach River.

No. 17  Savannah, Georgia

There is magic in the coastal city of Savannah, Georgia. The storied antebellum buildings and ancient oak trees draped with Spanish moss make it at once both quaint and bewitching (there are of course the ghost stories). City squares are peppered with azaleas, statues, and benches: including the one where Forrest Gump explained life’s beautiful unpredictability. Pirates once used Savannah as a smuggling post, but today the cobbled River Street is ripe with cute candy stores brimming with homemade saltwater taffy and pralines, as well as bustling bars and restaurants serving the best regional fare (think: buttery biscuits, fresh-caught shrimp, and sweet tea). Handcrafted leather shops, charming apothecaries, and even a honey store, it’s easy to see how the “hostess city of the south” lives up to its sweet reputation.

No. 16 Seville, Spain

Seville is the star of Andalucía, with its purple jacaranda and perfuming orange trees lining the cobblestone streets. Wander in and out of the famous ceramic shops in Triana, and ascend La Giralda tower at the Cathedral of St. Mary (the second largest in the world, after the Vatican) for photo-worthy panoramas. The gelaterias here are legendary, so grab a scoop and stroll the Plaza de España, or nap at the Parque María Luisa during siesta time. Spend an afternoon together at El Alcazar palace, with its Moorish architecture and gorgeous gardens (the filming spot for Dorne on Game of Thrones, no less). Grab handfuls of Marcona almonds and fresh fruit from the market to enjoy as you wind through labyrinthine side streets to find a traditional flamenco performance. When night falls, the city seems to glow warm gold, with buildings like the Torre Del Oro seemingly lit from within. Dine al fresco with locals at one of countless open-air restaurants. Try the Jamon Iberico with a pitcher of sangria, and dip warm churros into melted chocolate. It’s a decadent way to conclude a trip to Seville with your significant other.

No. 15 Monte Carlo, Monaco

For a dose of romantic Hollywood glamor on the French Riviera, look no farther than Monte Carlo. Its extravagant hotels, stunning coastal views, and some of the best restaurants and spas in the Mediterranean make Monaco a staple on our list for romantic destinations every year. Fly in via helicopter (just a seven-minute ride from the airport) for the most memorable views, and stay at the lavish Hotel Hermitage (its glass cupola was designed by the Gustave Eiffel). Get your heart racing at the racetrack, or take a chance on a good hand at the famous Casino de Monte Carlo. And if you rent a classic car to drive along the Grand Corniche, we promise you’ll feel like a famous couple plucked from the silver screen.

No. 14: Siena, Italy

Offering visitors the beauty of Tuscany without the massive throngs of tourists, Siena is a delightful destination for lovebirds. An archetypal medieval city, forged before the lavish Renaissance, makes the green, red, and white-marble Duomo somehow more striking. It houses masterpieces by 40 Italian artists, including Donatello, Michelangelo, and Bernini. The whole city is built around the Piazza del Campo, a UNESCO heritage site where you can people watch while sipping Campari. Drive out to the wineries just outside the city limits to taste the best of the Sangiovese grapes and share a perfect Tuscan sunset.

 

No. 13 Barcelona, Spain

Barcelona is a cosmopolitan couple’s dream. Fuel up on tapas in La Barceloneta’s seaside cafes before walking through the winding Barri Gòtic and climbing Gaudi’s surreal Sagrada Familia or the vibrant Parc Guell (both offer great city views). Stop by one of the city’s famous markets, La Boqueria or Santa Caterina, for fresh foods and great coffee. Reserve a room at Hotel Neri (an 18th-century palace where breakfast is served on the rooftop) or the luxurious all-suite El Palauet. You’ll fall in love with this city—and each other—every time.

No. 12 Victoria, British Columbia

Victoria is a Canadian stunner in beautiful British Columbia. Located on the inner tip of Vancouver Island, the city’s Neo-Baroque architecture is decidedly British. Admire the Parliament Buildings, the Fairmont Empress hotel (peek inside to see the Edwardian interiors), and the famous Butchart Gardens. And just 30 miles north is the Cowichan Valley, which boasts vineyards, art galleries, and hiking trails—perfect for lighting sparks.

No. 11 Santa Barbara, California

Santa Barbara—fondly referred to as America’s Riviera—is a great escape for those looking to stoke the flames. The weather here is consistently perfect, so it’s easy to visit any time of year (even gray, dreary February). It’s 90 miles northwest of Los Angeles, tucked between the Santa Ynez Mountains and the Pacific, and famous for its Spanish architecture. Hop on the open-air trolley down State Street to discover new restaurants and galleries. The 200-year old Santa Barbara Mission and its rose garden are worth a tour, as well. And Shoreline Park’s bluff-top views and Butterfly Beach are perfect for sunbathing with your partner. Just keep an eye out, because there are often dolphins and whales that come to play in the surf.

 

No. 10 San Francisco, California

On a romantic getaway to San Francisco, head to the Pacific Heights neighborhood to see those iconic Victorian homes, or take a bike ride through Golden Gate Park for the best views of the bridge. Couples should consider taking a day trip to nearby Napa or Sonoma to enjoy some of the best wineries, not just in the country, but on Earth. Doc Rickett’s is a local favorite for underground comedy and music acts, and for museums, the de Young’s American art collection is a must-see. Park yourself at Cupid’s Span on the Embarcadero to watch the sunset and check out the Bay Lights show before dining in the trendy Mission District.

No. 9 Quebec City, Quebec, Canada

The landmark Fairmont Le Château Frontenac looks like a fortress guarding Quebec City, a spot that fiercely puts the “French” in French-Canadian. Considered the oldest European settlement on the continent, Quebec overlooks the beautiful St. Lawrence River and is packed with boutique and luxury hotels. Meander in and out of trendy shops and jazz bars, or go ice skating at the outdoor rink at Palais Montcalm. Afterwards, warm up with hearty Québécois cuisine or the province’s famous greasy spoon-style poutine.

No. 8 Bruges, Belgium

Old World European charm is the defining feel in Bruges, just an hour by train outside of Brussels. The 13th-century village has cobblestone streets extending over misty canals, and endless examples of Gothic architecture. Quaint houses, windmills, and medieval streets set a fairy tale scene. Share a traditional Belgian waffle with powdered sugar or sip Lambics at one of the village pubs. Bruges is also known for its vast collections of Flemish artworks, though it’s hard to pull away from the 50 different chocolate shops (one per square mile) sprinkled throughout the city.

 

No. 7 Charleston, South Carolina

Friendly locals and quintessential Southern charm recently gave Charleston the No. 1 spot on our list of the best cities in the world. And it didn’t under perform for romance-seekers, either. Antebellum architecture and art galleries are framed by wisteria, sabal palmettos, and ancient magnolia trees. Couples who love eating out will adore this city’s food culture: reserve a spot at Husk, the most talked-about restaurant in Charleston and the South, share brunch at Kitchen 208, or linger over an intimate meal at Peninsula Grill. Walk King Street for antiques and boutiques of all sorts, stop by Marion Square for the weekend farmer’s market, or take an early morning stroll down pastel-colored Rainbow Row.

 

No. 6 Honolulu, Hawaii

On the island of Oahu, Honolulu has become more than just a tropical tourist destination—it’s cosmopolitan and has a stylish vibe all its own. Salty sea breezes, miles of turquoise waters, and an onslaught of new boutiques and restaurants make this a hot honeymoon spot. A trip to Hnolulu is relaxing, but there’s plenty to do for the restless. Try surfing at bustling Waikiki Beach, hop on a jet ski together and cruise the waves, or go snorkeling at the many reefs full of Pixar-worthy fish and seascapes. Most importantly, share a sunrise together after a hike up Diamond Head, and a sunset on a veranda sipping Mai Tais.

No. 5 Rome, Italy

There are an infinite number of opportunities to be awed in the Eternal City. Visit the Basilica Santa Maria and the Sistine Chapel, admire the Pantheon and Colosseum, and take in the artworks at the Borghese Gallery. Afterward, head to the Trevi Fountain to wish for a return trip with your partner, and admire thousands of other fountains scattered across the city. Rome’s history seems limitless (a 2,700-year-old city has that effect) and so does its cuisine. Try the pizza at Il Forno Roscioli near the Campo de’ Fiori Market, eat the traditional cacio e pepeat Sora Margherita, or go to Prati on the Tiber to share the best gelato.

No. 4 Florence, Italy

A trip to Florence is a necessity for a pair of fashion or art lovers. Venture together to see masterpieces like Michelangelo’s David, or the homes of Gucci and  Ferragamo. Almost every hotel here boasts marble fireplaces, classical sculptures, paintings, and frescoes. Visit the new Mercato Centrale for the best souvenirs (cheese, wines, and pasta), and climb the steps to the Duomo’s terrace. Visitors can also ascend Giotto’s Campanile bell tower to share the view of the dreamy terracotta-topped cityscape.

No. 3 Carmel-by-the-Sea, California

About an hour south of San Jose, voters declared this small California town the best city for romance in the country. Drive through redwood forests or winding vineyards to get to Carmel-by-the-Sea’s picturesque cliffs dotted with cottages and isolated beaches. You won’t find much in the way of street signs, traffic lights, or billboards here, where quaintness is practically cultivated. Go for a drive along the rugged coast to discover tasty bistros, cool boutiques, and petite wineries. End the day watching the sun set over the Pacific with your special someone.

No. 2 Paris, France

Could there be a list of romantic destinatinos without the City of Light? Paris is ever-changing and yet always true to its lovers. Bike through Le Marais and try as many of the city’s legendary patisseries as you can. However touristy, the staples never disappoint. Lovebirds should explore the endless corridors of the Louvre and picnic with fresh crepes on the lawn by the Eiffel Tower (or with a bottle of wine, at night, when it’s a twinkling glow). Take the metro up to the cobblestone streets of Montmartre and see the view from Sacre Coeur, spend a day marveling at the Latin Quarter’s architecture, or take a stroll through the Tuileries Garden dotted with bronzed sculptures and fountains. Paris is never short on beauty, history, or diversions for even the most discerning couple.

No. 1 Venice, Italy

Winding waterways and pastel piazzas make Venice an obvious choice for the world’s most romantic city. Cruise the canals by water taxi or take it slow on a quintessential gondola past the Bridge of Sighs. Sip one of the oldest hot chocolate recipes at Cafe Florian, and enjoy the unusual silence permitted by the absence of cars. First-time visitors should hop over to Murano to learn the history of the city’s stunning glassworks. Return travelers, however, should try to get lost off the beaten track. Find your own favorite charming spot to share a pizza and watch the watercolor sunset reflecting over the canals.

Top 10 Beaches in America

 

soource:http://www.nola.com/travel/index.ssf/2017/05/dr_beach_names_floridas_siesta.html#incart_m-rpt-2

Why are Small Banks Disappearing ?

n 1994, nearly 500 banks were headquartered in California. Today, there are fewer than 180. By the end of the year, if current trends hold, Californians will have only one-third the number of banks to choose from for their mortgage, small business and personal savings needs than they did just a couple of decades ago.

There are a few reasons for this disturbing trend, which is happening across the country. But the most important one — the reason I hear more than any other from bankers who decide to merge, sell or close their institution — is the increasing federal regulatory burden.

That doesn’t mean I oppose all regulation. In the wake of the financial crisis, regulatory changes were necessary, and provisions in the Dodd-Frank Act passed in 2010 helped improve financial stability. But nearly a decade after the crisis, we’ve ended up with too many duplicative and sometimes contradictory rules that don’t always promote safety and soundness, and may actually hinder banks from serving their customers and growing local economies.

For example, I recently heard from a bank in Southern California that, to its great regret, had to end its mortgage loan program. Dodd-Frank’s mortgage regulations and disclosures meant the bank would have to purchase expensive software to manage the new layers of red tape — so expensive, in fact, that the bank was going to lose money on every single loan.

Getting community banks out of the business of helping qualified Americans buy homes can’t have been what Congress intended when it passed Dodd-Frank. It makes sense to recalibrate some elements of that law to ensure that it’s working properly.

A proposal in the House would take important steps in that direction. The Financial CHOICE Act, which the Financial Services Committee recently voted to send to the floor, includes several sensible provisions that the banking industry endorses, as well as others that require further study and analysis.

Among the measures I support: The legislation would allow regulators to tailor their oversight to the unique risk profiles of individual financial institutions; provide greater opportunities for banks to appeal decisions by their examiners; and ease some requirements on mortgages that banks hold in their own portfolios (meaning they retain all the risk). The overall effect of these and other provisions would be to give banks more breathing space and consumers more choices.

Though banks adjust as best they can for the sake of their customers, the smallest banks have too few assets to keep up with ever growing compliance costs. Indeed, the vast majority of banks that have disappeared are community banks. At the end of 2016, California had just 11 small banks left; in 1994, these banks accounted for nearly half of the industry in the Golden State.

Some have pointed to strong bank profits as an argument for why reform is unnecessary. Profitability is, of course, a sign of economic strength that we should celebrate; profitable banks benefit their customers, investors, employees and broader communities.

However, the topline profit figure doesn’t tell the whole story. Increased regulatory compliance costs limit bankers’ ability to reach underserved communities. Moreover, tunnel vision on bank profits ignores macro-level trends.

Since Dodd-Frank was passed, just four new banks have formed nationwide. (The newest, I’m pleased to report, is in Orange County.) This abysmal pace of startups is principally due to the extraordinary regulatory burden placed on small banks and the excessive sums of capital new-bank investors are required to put up.

Our economy performs best with a healthy and diverse mix of banks to meet customers’ needs — large, small and everywhere in between. Without reasonable reform in Washington, California’s banking sector will continue to shrink and become less diverse. Californians — and all Americans — will pay the price in terms of lost opportunities for growth.

Web Statistics