July 1: News updates from Fannie, CFPB, Congress, and HVCC; It's an NMLS world

By
Mortgage and Lending with Global Home Finance Inc. NMLS ID:316441 NMLS ID:184176

[I am away from the computer on a daily basis, and my access to e-mail is

sporadic

and not timely. In my place are daily commentaries from a series of very

knowledgeable

mortgage industry people with different backgrounds, and they have been

given very

little direction about what to write about - the latest is below. Our views

may

or may not coincide, but I thank them for their time in volunteering and

helping

 out.]

 

Note:

 

To all those that have served or are serving on active duty: Thank you.

 

Independence Day:

 

"On July 2, 1776 the Second Continental Congress voted to approve a

resolution of

independence. After approving the vote for independence, attention was

directed

at writing the Declaration of Independence. The Declaration of Independence

was

to be a statement explaining this decision to seek independence from Great

Britain.

Thomas Jefferson was the principal author". As we should all know, The

Declaration

of Independence was approved and signed on July 4. Enjoy the holiday.

 

"In a remarkable coincidence, both John Adams and Thomas Jefferson, the only

signers

of the Declaration of Independence later to serve as Presidents of the

United States,

died on the same day: July 4, 1826, which was the 50th anniversary of the

Declaration."

 

CFPB:

 

The CFPB has just released its second proposals in a series of five. The

CFPB wants

industries input. Go to http://www.consumerfinance.gov/knowbeforeyouowe/

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106312194052&s=8721&e=001M6pGSU

VzFruloCXhQMxAs7Ia_Di5hmIcw8PhZwgji135BP1MQDbdD2ggtojorvc-py6kqGsczaBcFEMYMK

93c6z0M3MEz1hcmvMK29GrTYIHV7kYiKxpXKLQ1fzRWBl1pdDeCV_qaa7XBWtJ8BewHw==]

and VOTE. I would recommend you print out the 2 proposals prior to voting.

They

are in the process of merging the GFE and TIL. I have met with the CFPB

Mortgage

 Markets team on a number of occasions and they are very earnest in their

request

for industry responses. They received over 13,000 to the first proposal.

 

If you want to continue to participate you may register on the CFPB home

page www.cfpb.gov

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106312194052&s=8721&e=001M6pGSU

VzFrt83bHPhjlHd-YKbvXTVNlDCYHyza8rCS71h1eN14KRx1qYFWUz9ReKUdpwxAuPbX-E0VLSML

TOXr5qFAtSzpt_ZTaCFf92uDk=]

to receive their emails..

 

Political Advocacy:

 

As Steve Emory wrote last week, our industry needs to speak up and get the

truth

 out. In the Spring of 2010, I got very frustrated and called the FRB's Mr.

Mondor,

Esq.. We had a very pleasant conversation about the FRB Rule and its

integration.

In his somewhat lengthy legalese, he gave me his version of what would

transpire.

 

The next day I drove from NJ to DC and started banging on doors, so to

speak. Our

politicians in DC only know what they are told. Most of their information

comes

from media sources or lobbyists. Many ranking officials did not know about

the FRB

Rule on Originator Compensation as late as February 2011. It was simply

amazing

to me how disconnected our elected officials, both parties, are from the

reality

 that the 'boots on the street' have to experience.

 

As we approach our Day of Independence, it's time for you to exercise your

independence.

Go visit your elected official. You don't have to drive to DC, go visit them

in

their local district Talk to them about your issues and concerns. Your

elected officials

are in district most of August. Call their DC office and ask for the

Scheduler and

make an appointment today.

 

Fannie Mae:

 

The following are two excerpts come from last week's Fannie Mae's Economics

and

Mortgage Market Analysis

http://www.fanniemae.com/media/pdf/economics/2011/Summary_062011.pdf;jsessio

nid=REGC0CEPB5QEDJ2FQSISFGI

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106312194052&s=8721&e=001M6pGSU

VzFrsgDsm6sFfsbB5VJhNetYgvpqTwHcXuLnTagF9a4iaWBGX-XP4DgrSgCUkdJWcGl_v3-U-02b

tsiXnPdvs5_CQwgB6gkpF8tvN-Fs4zletk8G_l25LyitU_nQclc0WQ6dcaqMEtE7eBgy8piXwxNz

OYNfuMLrYXsqA2xZG5ePvL9X21HZ4gely0RADoFS5_z6c8a-evRMH7eLf0-7umRnLwptgScLvKs7

A=]

:

 

"This month marks the two-year anniversary of the current economic

expansion, which

so far has been quite disappointing. The prospects for accelerating growth

have

grown dimmer recently with downward revisions of first-quarter activity and

most

 economic data for the current quarter being downbeat. Markets have reacted

quite

negatively, but the question is whether the repeated onslaught of global

shocks

has generated an overreaction. We believe the doomsayers are wrong;

nevertheless,

growth is slowing appreciably and recession risks have risen."

 

"For 2011, we now expect economic growth to come in at 2.5 percent, a

downgrade

from 2.9 percent in the previous forecast and more than a full percentage

point

lower than our forecast at the start of this year"

 

Now I'm only an arm chair economist and mortgage market analyst, but after

25yr

in the mortgage industry as a loan officer, broker and banker and the self

employed

owner of a small business for most of that period, I, as most of you, can

recognize

fluff. And this is fluff. And not the marshmallow fluff we loved as kids.

 

Let's look at this again. We are in a "two year economic expansion", which

is "disappointing".

I must have missed the economic expansion. I'm perplexed. Are we expanding

or is

 it disappointing? After all the bad news of the past few years I would have

thought

an expansion would be easily visible. Fannie openly notes that they are

having downward

revisions. Just the most recent is a revision from 2.9% to 2.5%. This new

target

 is after a 1% reduction. So, is the report really saying that Fannie Mae is

now

 targeting a 28% lower economic growth rate?

 

Congress:

 

This week Rep. Scott Garrett (R-N.J.) and Rep. Carolyn Maloney (D-N.Y.) had

their

United States Covered Bond Act pass out of the Committee.

 

HVCC

 

I recently had a conversation with Ian Coate's (NAIHP Vice President) and

appraiser

advocate. Ian noted the following:

 

The business and profession of appraising is being phased out by external

forces.

 The systemic appraisal protections, that high quality appraisals provide to

the

 mortgage process, has been severely damaged by recent changes to the

appraisal

guidelines and laws.  The Home Valuation Code of Conduct (HVCC), which was

implemented

in May 2009 and then codified into federal law in the Dodd-Frank Act, has

been the

single biggest destructive force to the appraisal profession in recent

years.

 

With the average age of an appraiser at 57 years old, and the sharp decrease

in

appraiser trainees (caused by the downward pressure on appraisal fees), this

country

is facing the next mortgage related meltdown in 6-10 years due to a shortage

of

highly qualified appraisers.  To become licensed as a certified appraiser,

one must

possess an associate's degree or higher (soon to be a 4 year college

degree), take

250 hours of approved appraiser education, and perform 2500 hours of trainee

experience

in no less than 2 years time.  With this large investment of time and

resources

paired with the relatively low income expectations in the appraisal field,

there

 is little hope of attracting highly qualified candidates to enter the

profession.

 And despite financial institutions' desire to obtain property valuations

more quickly

and cheaply, the alternative valuation methods such as AVMs and BPOs are

simply

too unreliable and are dangerously inadequate when compared to traditional

appraisals.

 

The HVCC issue must be addressed immediately in order to correct a myriad of

negative

consequences which ail our mortgage system.

 

Brian Benjamin

 

Two River Mortgage & Investment

 

Editor's note:

 

It's an NMLS world, right? The biennial course provider renewal process gets

underway

beginning today and "we're starting to receive quite a few phone calls about

the

 process.  A list of providers who are due in July and a few tips to prepare

follow:

- As noted previously, NMLS moved from a fixed biennial renewal period to

monthly

rolling renewals based upon the two-year anniversary month of the initial

approval

date.  This means the date listed on the Approved Provider List may be

further out

than the one listed on your initial approval letter.  Providers should use

the date

listed on the Approved Provider List which can be found here:

http://mortgage.nationwidelicensingsystem.org/courseprovider/Documents/NMLS%

20Approved%20Course%20Providers.pdf

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106312194052&s=8721&e=001M6pGSU

VzFrsd4ZZshUPXdk9y0mgIKzBUZdXQC1O-ZMayfYj3i1nBjRXIwTkZ_kRKnfQJrBfB4AyqCqArYt

9cxPJrqcDiZWHjSKgwTZft3xlxZKkJgQOnTnstLN_3iGlOXIPqyi10zFFsRcELQMzPBqieZM6_4U

CqGiN5jMVBjMF92txHPoGq3hqXfqdRwUSOkCy5Y_S8PRMnJcS4Sqf2_XtCtQwZo39Ikxvr5r0cG4

z54hvm2k50Pg==]

- Just like we do when you have a course up for renewal, you will be

notified at

 least 30 days prior that your renewal period is approaching. - We will host

a webinar

on July 12th for providers who are due in July and August to go over the

renewal

 process, the application forms, and to answer questions.  An invitation to

attend

the webinar will be sent to those providers are due in these two months. The

updated

July and August provider renewal list has been reposted.  See

http://nmlseducation.wordpress.com/2011/06/21/439

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106312194052&s=8721&e=001M6pGSU

VzFrtN0HAe9HLouHikqxfqjrb0XFjqtqPU8LkUp6z5ceCeRTk956pSKTqOlJDAjLB4xyPUSCloQo

b434My6n743SzoLYdhwTyrFrbPU4CX3ZURNfK5pzU-kbVdH-nwsRaePlGNwRZBe7J2HXsR4PsRhy

U2]."

 

If you're interested, visit my twice-a-month blog at the STRATMOR Group web

site

 located at www.stratmorgroup.com

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106312194052&s=8721&e=001M6pGSU

VzFrtuqmwQWA0OdZp4ch4_Gq8H0bPgOaGzrkDu19CBggiFAiInVFGcV31ZiMer8NfkbbqXtHfam0

SCXM2DZ2gNe_KRsWy8ZqsNeccd57BBkrZF4Q==]

. The current blog takes a look at near-term news for non-agency securities,

such

as jumbo residential loans. If you have both the time and inclination make a

comment

on what I have written, or on other comments so that folks can learn what's

going

on out there from the other readers.

 

Rob

 

(Check out

http://www.mortgagenewsdaily.com/channels/pipelinepress/default.aspx

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106312194052&s=8721&e=001M6pGSU

VzFrt5P3dbbpHPhpHbrgOEWgsLXNVX-uJ628yfK1ibDtEPdlTFc7rYu6-pFvWvfOOAnuPnHKD9Rm

65Dlq7UVI6gV21OERvO_jaaBEWDAnHlgcSutoSaxDoHdLV3qvzVyRjM_np4stosPXUb3M4nzCaY4

QjLuBXxRELsTXET6oMRnmLSg==]

 

or www.TheBasisPoint.com/category/daily-basis

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106312194052&s=8721&e=001M6pGSU

VzFrtRP1uGJ6Jji2SCIfCqCtcKdp4JTMeTrnJeTaC5bP3G8Q1x6ITUh2ssimNJJICPRgiEggHlC3

nHSWQ8jErpi22UB5dBYQCJrFw1YOJuRg7DHAmNWBaCjL4JbR1SYa94S-Qn-ZbJaUKEWA==].

For archived commentaries, go to www.robchrisman.com

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106312194052&s=8721&e=001M6pGSU

VzFrvMcgg_D0nEdZ8bRgrUflpCq2XbSpGq2gmzXKmnW00fL67O0JID3Y6ZvNwLjsWUWr5TfP8Lmm

BZwEIIwH9hBiJhoKKdVvLW3J0PANM7I-lljg==].

Copyright 2011 Rob Chrisman.  All rights reserved. Occasional paid notices

do appear.

This report or any portion hereof may not be reprinted, sold or

redistributed without

the written consent of Rob Chrisman.)

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

~~~~

 

Join My Mailing List

[http://visitor.r20.constantcontact.com/email.jsp?m=1102827910937]

 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

~~~~

Forward email

http://ui.constantcontact.com/sa/fwtf.jsp?llr=zy6u9cdab&m=1102827910937&ea=b

cahoone@globalhomefinance.com&a=1106312194052

 

 

This email was sent to bcahoone@globalhomefinance.com by

rchrisman@robchrisman.com.

 

Instant removal with SafeUnsubscribe(TM)

http://visitor.constantcontact.com/do?p=un&mse=001gYuebWlSSZMa7X7_YCXY1pkylq

TmggCt&t=001jDVkhX2oka4Y-9RPY7YFQw%3D%3D&llr=zy6u9cdab

 

 

Privacy Policy:

http://ui.constantcontact.com/roving/CCPrivacyPolicy.jsp

 

 

Online Marketing by

Constant Contact(R)

www.constantcontact.com

 

 

Chrisman Inc. | 24-G West Main Street #386 | Clinton | CT | 06413

Comments (0)

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?