New Rules for High Priced Loans
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On October 1, 2009 the Federal Reserve implemented a new rule designed to regulate the closed-end subprime mortgage market. The rule can be found in Regulation Z at 12 C.F.R. § 226.35.
It is commonly referred to as Section 35 or the "higher-priced mortgage loan" rule. The rule establishes triggers for categorizing loans as "higher-priced mortgage loans" and sets forth special rules and restrictions that apply to loans that fall into the category. READ MORE |
Increase in Upfront Premiums for FHA Mortgage Insurance
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 Effective for FHA loans for which the case number is assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent.
This policy change will increase premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions. READ MORE
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The Safe Act and State Licensed Originators
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 The Safe Act was signed into law in 2008. This wide-ranging legislation provides regulators better tools to control and track originators. The legislation had several goals related to mortgage originators: · standardize originator education and licensing requirements · create a national licensing system for originators (and related registry for originators employed by regulated entities) · make it difficult for originators with criminal convictions (of certain types) to obtain an origination license · make it possible to track consumer complaints against an originator across state lines · create a freely available public database containing information on any licensed originator · clearly identify the originator on loan documents by including the originator's unique license number on the documents READ MORE |
