Wednesday, April 19, 2017 - Article by: bcahoone - Global Home Finance Inc -
By email@example.comThe English language is always changing. For example, when did "blackstone" become a verb, as in, "I was 'blackstoned' last week and will start collecting unemployment!"? Blockchain is another new word. Veronica Lange, head of innovation at UBS, said at a conference that despite the progress in blockchain technology, it will be a decade before the technology transforms financial services. Financial regulators can be expected to take a cautious approach to implementing blockchain technologies unless market disruptions force them to act swiftly, said consultant Jeff Stehm, a former Federal Reserve official. "Risk-averse regulators charged with making sure nothing goes wrong have understandable concerns about change and the unknown," Stehm and lawyer Joe Oehmke write in a report.Preliminary results from Richey May's annual compensation survey indicate that total compensation for underwriters and processors increased nearly 20% in 2016. Additionally, overtime paid to those individuals doubled year over year in 2016. There is still time to participate in Richey May's annual Independent Mortgage Lender Compensation Survey to evaluate your compensation strategies and metrics in relation to your peers for over 200 job titles specific to the industry. Check out the sample dashboard on the website, or contact Tyler House for more information on participation.Taxes in underwritingYes, "Tax Day" has passed, and lenders and investors must consider filed taxes in their underwriting decision. For example, LHFS issued a reminder regarding 4506 transcripts. Loans dispersed on or after April 18th will require the 2015 and 2016 returns or all the following: Evidence of filing a Tax Extension (IRS Form 4868-Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) filed with the IRS; Tax liability reported must be compared to the borrower's tax liability for the previous 2 years as a measure of income source stability & continuance. An estimated tax liability that is inconsistent with previous years may make it necessary to require the current years return to proceed. IRS Form 4506-T Transcripts confirming "No transcript available" for the applicable tax year; and Returns for the prior two years.FHA, VA, and Ginnie newsJamie Dimon of JP Morgan took aim at regulations in his annual letter to stockholders. He was especially critical of the FHA's use of the False Claims Act to hammer lenders who commit unintentional clerical errors but had no intention of committing fraud. This has caused FHA lending (which is the only game in town for subprime borrowers) to become restricted, especially at the big banks. He also called for new uniform standards for mortgage servicing. The cost of servicing delinquent loans has skyrocketed, and this has caused lenders to further restrict credit. JPM estimates that $1 trillion in additional lending could have increased GDP by half a percentage point.And any lender servicing FHA loans took note of a recent Florida court ruling. "The District Court of Appeal of Florida, First District, recently held that borrowers waive their affirmative defense that a mortgagee did not comply with HUD's 'face-to-face' condition precedent to foreclosure when they fail to raise the defense until their closing argument at trial. The First District also held that even if the borrowers had timely raised compliance with HUD regulations as an affirmative defense, the mortgagee was not required to comply because the property was more than 200 miles from the mortgagee and its servicing branches."Wells Fargo Funding is changing its FICO adjusters for all government Loans, including High Balance, locked on or after May 1, 2017. FHA loans less than $140,000 with a FICO >=680 =660 =640
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