The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Zillow analyst on whether home prices can keep climbing

Today’s episode of HousingWire Daily features an interview with Nicole Bachaud, as she discusses annual and monthly home price appreciation growth, rising inventory levels and rent prices.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Mortgage

FHA takes steps to streamline reverse mortgage underwriting

Releases specific guidance on the contracting of third parties to verify financial info

In 2014, the Federal Housing Administration released updated guidelines for underwriting reverse mortgage loans, instituting a financial assessment of prospective borrowers that required a much deeper dive into a borrower’s credit history than previously required.

The goal was to reduce the likelihood of default by assessing a borrower’s financial status and history to determine their “ability and willingness” to fulfill the obligations of the loan.

The result was a long and time-consuming endeavor for HECM processors and underwriters.

But now, the FHA has taken steps to streamline the cumbersome process for lenders, releasing updated guidance recently that specifically approves the use of third-party verification – or TPV – to collect a borrower’s financial information.

In a new mortgagee letter, the FHA said TPV services provide lenders with an alternative means to verify a borrower’s income, assets and employment so they do not have to collect paystubs, W-2s and bank statements themselves.

While previous FHA guidance allowed for the electronic verification of financial documents, no specific guidance regarding the use of the TPV vendors who specialize in this type of information gathering had been released.

Now, lenders are expressly permitted to hire TPV vendors and specific requirements – including the lender’s responsibility to ensure their compliance – have been detailed.

You can read the details in the mortgagee letter here.

Latest Articles

Refis stubbornly make a bit of a comeback

The week following Labor Day saw a flurry of mortgage loan application activity, with volume jumping by 4.9% for the seven days ending Sept. 17, according to the MBA. Refis were on the front foot again.

Sep 22, 2021 By
3d rendering of a row of luxury townhouses along a street

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