10-29-09 NMLS State Matrix & RESPA Changed Circumstances

October 29, 2009 - "News You Can Use"

Having trouble reading this document? Download on-line at www.quick-start.net/mortgageprofessional.htm

Trying to Stay Ahead of the NMLS Curve? - A National Licensing Matrix

We have published a first crack at a revised Matrix that we hope will be a reference tool for originator licensing - a one page listing of the states and their regulators, their requirements as to NMLS, required hours, licensing and renewal requirements. For the past 5 years we had a matrix which was more of a narrative, and when we took the old matrix down because of all of the transitions some visitors said they missed it.

Please review at http://lendertraining.com/National%20Licensing.htm and comment as to information you think would be useful to add, corrections and/or additions. We welcome your input

RESPA 2010 Update - Understanding “Changed Circumstances”

The intent of the new GFE regulation is to require a FIRM cost estimate. Once issued a GFE cannot change unless there are “changed circumstances.” This eliminates the “bait and switch”.

The original information cannot be a basis for the change, unless it is later found inaccurate. If there is a changed circumstance, then it can only change that aspect of the costs that it affects; i.e.: title problem > title insurance or credit score > interest rate. Any changes have to be issued within 3 days of discovery – by whoever discovers the change. The lender or broker can revise the GFE, so communication is crucial. Retain documents that relate to the change for 3 years.

Not Changed Circumstances

Maybe, depending

Yes

· * Any accurate information provided prior to GFE borrower

· * Broker issued GFE inconsistent with wholesaler’s

· * No property address at application

· * Broker changes from one investor to another

· * Market changes

· * Borrower delays closing

· * Original vendor goes out of business

· * Acts of God, war, disaster, emergency

· * Borrower changed: credit quality, loan amount, property value

· * New information

· * MIP/PMI factors changed

· * Credit policy/Regulatory change

· * Incorrect legal address initially supplied

· * Undisclosed title or property issues

· * Borrower changes occupancy status

· * Borrower selects POA closing

· * AVM – “No hit”

· * Credit score change

New York State Fair Lending Requirements

The Banking Commissioner is requiring that broker and lender applicants have a Fair Lending Plan. This requirement is met by the Broker and Banker Packages. The reality is that a separate single page plan, while it may meet the state's guidelines, will not protect you in the event of an audit or complaint. Companies need to have actual policies and procedures for all elements of the plan. Please see http://www.mortgagemanuals.com/updatesanddownloads.htm

In this issue:

NMLS Licensing Matrix

RESPA 2010 - Changed Circumstances

NY State Fair Lending

NMLS National and State Test Preparation Programs On-Line Programs

Loan Officer/Processor Training - Books, Manuals and on-line Training - 2009 Versions Now Available!