Blog of the Mortgage

September 7th, 2008 10:42 AM
Legislatively this year has been very interesting. Many proposals have been delivered and most have been squashed or revised or re-written or even written by Bank of America!
Politics as usual I guess?
About a week about before Friday last week the DRE sent out information and if you're a member of CAMB or on Teresa Ballard's e-mail list you got blasted with updates regarding these new forms.
Essentially, you now have to be absolutely certain that the MLDS (Mortgage Loan Disclosure Statement) that you use is correct to the product you are originating.
If you don't and the DRE audits your files originated (disclosures signed) after the 15th of August, 2008..well, mostly you're going to have a paperwork and follow-up nightmare!
So, make sure you've downloaded and read the following 3 MLDS updates/Variations. Make sure your LOS (EnCompass or Point) are updated and include these in all of your disclosure packets going forward.
  1. MLDS 882 - Loan Description - Fixed product
  2. MLDS 883 - GFE fee breakdown for RESPA
  3. MLDS 885 - Loan description & Fee breakdown for Interest Only/ARM feature loans
Nice to know that the DRE is keeping us on our toes. At least now, hopefully, our customers can't argue ignorance at the note they signed at closing. Either way, an educated consumer is happier consumer.

Also just over a week ago FNMA slipped an update to DO 7.0 out to us (by way of their updates page). This will supposedly allow your DU engine to deliver automated findings on Conforming Jumbo(agency jumbo-LFKAJ) loans. This would be nice but I think the bigger problem is going to be finding a lender that will actually accept limited or automated findings on your loan over $417k....perhaps by Mid-November when the new loan limits (up to $625k) start to get programed into SIFMA's pricing models for conforming loans...perhaps then Automated findings on these deals will be accepted? If you want to know what SIFMA does...google them. Bottom line: they set rules and effect prices for conforming trades/bulk sales/MBS pools. It's because of them that the LFKAJ loans have been nearly in-effectual in alleviating some of the financing stress in the higher end part of our housing markets. Here's hoping that come 2009 having true conforming pricing @ $625.5k will actually start to give us some of the much needed lift we've been looking for over all.
Posted by Raoul Badde on September 7th, 2008 10:42 AMPost a Comment (0)
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