Mortgage Market Share Report – October 2011

“Mommy! Make Them Stop!”

Many things to be keeping an eye on these days . . .

The new Consumer Finance Protection Bureau (CFPB) is testing forms. We?ve seen a number of versions of a combined Good Faith Estimate and Truth in Lending disclosure. In November, we saw a combined Settlement Statement (f/k/a HUD-1) and Truth in Lending disclosure. In the name of simplification this new form if adopted will have morphed into six pages. Six pages are simpler than two. Seriously? What?s most disturbing is that the CFPB is promulgating the forms before they?ve promulgated the rules that the forms are supposed to implement. And they?re hoping for a July 1 2012 effective date. Oh joy.

The National Association of Insurance Commissioners (NAIC) is developing a statistical reporting system for title agents. The NAIC hopes that by gathering specifics about the transactions title agents insure, they can develop a better understanding of the title industry and how best to regulate it. It?s unclear at this stage what increased administrative burden will be created by this initiative.

Beginning January 1, 2012, the RREAL Licensing Data base that closing agents report to will be expanded to include all residential transactions. Not just transactions involving a first mortgage. Based upon our own book of business this requirement will result in our having to report about twenty five percent more transactions.

On a more positive note, Fannie and Freddie have revised their standards for the Home Affordable Refinance Program (HARP). Estimates are that between one and two million additional borrowers may qualify under this revamped program. I?m hoping that it?s all of that and more. The new standards ease appraisal rules for borrowers with negative loan to value ratios. This change makes it easier for responsible homeowners to qualify for a refinance as long as they are current with the payments on their existing loan. In my opinion, this reform is a long overdue.

Our company goal at the beginning of this year was just to try and get better at what we do and minimize change. As the year progressed we were able to take advantage of several unexpected opportunities to grow significantly and improve our company. We couldn?t have done this without our client?s support and encouragement. For this we are truly thankful. Have a great holiday season. You deserve it!

~John Bethell