|
Is It Worth the Risk? |
|
 Although we've weathered the worst of the storm, many predict that the mortgage outlook is still "chance of showers" at best.
As lenders continue to cut costs, it's important to do it without increasing your risk. Money spent on compliance allows you to protect your investment.
You may not want to carry that umbrella, but it sure is nice when you need it. DocuTech encourages its customers to keep that umbrella handy, ensuring that your loans are safe. |
| N.Y. Judge Blocks Foreclosure Due to Predatory Violations |
In a recent potentially precedent-setting decision, New York Supreme Court Justice, Joseph Maltese, denied a bank's motion to foreclose on a sub-prime mortgage due to predatory lending violations.
In the LaSalle Bank N.A. v. Shearon Case, LaSalle Bank attempted foreclosure action against David and Karen Shearon. Justice Maltese dismissed the foreclosure action by the lender and agreed with the homeowner's counter claim that the lender violated New York predatory lending law. READ MORE |
| New Disclosure for Sub-Prime Mortgages in California (RE 885) |
 Loan comparison calculations for a new subprime mortgage disclosure in California have caused some lenders to scramble.
Short notice given by regulators and the complex nature of the calculations have made it difficult to easily generate a compliant disclosure.
Many lenders are using spreadsheets or manually calculating each scenario by hand to complete the RE 885 disclosure required by the California Department of Real Estate Corporations. READ MORE |
| HUD Proposes RESPA Reform |
|
HUD's proposed rules to simplify and improve the disclosure requirements for mortgage settlement costs under RESPA may provide some interesting challenges for most lenders and mortgage brokers.
The main objective of these modifications is "to protect consumers from unnecessary high settlement costs." It is uncertain if the proposed changes will make the closing process clearer, more useful and less costly for consumers. Let's review a few of the proposed changes to the 2008 Proposed Good Faith Estimate (GFE) and some of the challenges these changes may present. READ MORE |
