Good Morning....more information ran across my desk. One of my reps from my wholesale lenders gave me a heads up and I figured I would pass it along. Below I wanted to share an important email from Bill Donivan, the president of the central chapter of the Pennsylvania Association of Mortgage Brokers. This, my fellow Rainers, outlinines some major things going on in our industry. Please take some time to read through and understand the proposed changes. If passed, these changes would drastically alter life as we know it!
Hello Everyone, We now have a crisis upon us. One that needs immediate action and understanding from each and every one of you. There have been two bills introduced into the state by consumer groups that will drastically alter how business in our world will be conducted. It does not matter if you are a broker, banker, loan officer, A.E.(rep), realtor, or title person, we must stop these bills. If not, then your income and future will stop. Its that simple. House Bill 38 & House Bill 40 will prohibit "Stated Income" & "No Doc" loans. A "Cautionary Notice" must be given stating that the rate and fees could vary based on which LENDER and which BROKER is selected. You must be able to document and verify "Current and Expected income" of the borrower. A Brokers NET worth must be verifiable and begin the first year at 50 thousand, the next year 75 thousand and the next year 100 thousand, etc. For each Loan Officer, there will be a fee of $200.00 per year. You must chose between a YSP or Up Front Fees, not both, unless you first give the borrower all possible options. Lenders Fees will be limited to 1% of total compensation and Brokers Fees to 3% which includes the Lenders Underwriting fees. You must meet with borrower(s) and have an agreement signed that state you will do a "suitable" loan for the borrower(s). Unfortunately who decides what a suitable loan may entail is not explained. Is a second home or a dream vacation a suitable loan? These are just some of the features of these two bills. To find out more, you must attend our meeting on April 10th, starting at 4PM at the Holiday Inn, New Cumberland, Pa. The education for our meeting will be "Ethics and Pa Law," Wow, what a great topic for the evening. If you need these last two mandatory credits, you must preregister at http://www.pamb.org/ , download the form and get it to Erin at the PAMB office. We are having a very special guest for this meeting on April 10th. George Hanzimanolis, past President of the PAMB and currently the President Elect of NAMB will be in attendance and available for questions. One terrifically important evening for all of us in this industry. Lets not forget the Mac Valley Forge Conference on May 22nd and 23rd. Education, Lenders Booths, Networking and Enjoyment. Our own Jim Mahler from M&T Bank has agreed to be the DJ during the opening evenings ceremonies. I know this email has been lengthy, but it was necessary. Take Care and Happy Mortgaging. You all know how to find me with questions.
Bill Donivan H. I. P. (Honor, Integrity and Professionalism) 717-586-2697
All I can say is Wow!???? Your thoughts?