Senate and Assembly approve State AMC Licensing Bill–Awaiting Governor Cuomo’s signature
June 21, 2018: Both branches of the NYS Legislature approved the long sought after AMC licensing bill, as required by Dodd-Frank. When approved, all 50 states will be compliant by having passed legislation that establishes guidelines for Appraisal Management Companies, a federal mandate effective August 2018.
May 24, 2018: President Trump signed S.2155, the Economic Growth, Regulatory Relief and Consumer Protection Act. The full House passed the bill earlier in the week by a vote of 258-159. This legislation is unchanged from that which passed the Senate in March by a filibuster-proof bipartisan margin of 67-31. This legislation contains a number of MBA-supported provisions, such as:
Source: MBA
Thank you to those who took action on these important issues! Your advocacy makes a difference.
Finally, the Trump Administration has an FHA Commissioner.
By a comfortable 74-23 vote yesterday, the Senate approved Brian Montgomery as Assistant Secretary for Housing and FHA Commissioner, ending a nine-month process that saw his nomination repeatedly held up by Senate rules and a backlog of other Trump Administration nominations. Twenty-five Democrats joined 49 Republicans in approving Montgomery.
The Mortgage Bankers Association and other industry trade groups had pushed hard for Montgomery’s approval. Following yesterday’s vote, MBA President and CEO David H. Stevens, CMB, issued a statement, praising the Senate vote and pledging to work with Montgomery on key housing issues.
“MBA commends the Senate for confirming Brian Montgomery to lead the Federal Housing Administration,” Stevens said. “His experience, knowledge and ability will ensure his success in this position. MBA fully supports FHA’s efforts to assist low and moderate income Americans and first-time homebuyers. We look forward to working with Brian Montgomery and the FHA team, and continuing to work with Secretary Ben Carson, to ensure they succeed in their mission.”
This will be Montgomery’s second stint as FHA Commissioner, having previously served from 2005 to 2009, under both the George W. Bush and Obama Administrations. During that period, MBA and other industry trade groups said in a March letter to Senate leadership, “he realized the immense counter-cyclical benefits that FHA can provide in the middle of the housing crisis. He also led HUD’s response to Hurricane Katrina and chaired the Hurricane Recovery and Response Center at HUD headquarters.”
The Trump Administration initially nominated Montgomery in September 2017. The Senate Banking favorably reported his nomination in late November by an 18-5 bipartisan vote; however, under Senate rules and procedures, and given that the full Senate did not hold a floor vote on his confirmation before year’s end, his nomination was “returned” at the end of 2017. He was nominated again in early January; the Banking Committee once more favorably reported his nomination later that month.
“Brian brings a wealth of housing knowledge and experience to HUD having held this position in two previous administrations, and we are excited to welcome him back to the Agency,” said HUD Secretary Ben Carson in a statement. “FHA’s work is critical to HUD’s mission of advancing sustainable homeownership opportunities and quality affordable housing for all Americans. Brian understands this better than anyone and will be ready on day one to address the challenges of today’s housing market.”
“I’m honored to have the opportunity to serve with Secretary Carson and the team at HUD to further equal access to affordable rental housing and homeownership opportunities and seek solutions to restore vitality to the housing market,” Montgomery said in a statement.
Ahead of yesterday’s Senate vote, the MBA Mortgage Action Alliance issued a Call to Action, urging its members to contact their senators in support Montgomery’s nomination (https://action.mba.org/mba/app/write-a-letter?0&engagementId=478493).
“FHA is the largest insurer of mortgages in the world and is a critically important source of affordable mortgage credit, especially for first-time and low- and moderate-income homebuyers,” said MBA Senior Vice President for Legislative and Political Affairs Bill Killmer. “Competent leadership is needed for such an important agency and Brian’s years of experience, most notably his previous term as FHA Commissioner under both the George W. Bush and Obama administrations, make him an excellent candidate for this position.”
Once on board, Montgomery will have his hands full. MBA has identified several critical management priorities, including enhancing efficiency and technology deployment, clarifying existing lender guidance and ensuring the long-term financial stability of the FHA program.
Source: Mortgage Link
May 24, 2018
Mike Sorohan msorohan@mba.org
NYMBA members from across the country came went to Washington last week for the 2018 National Advocacy Conference to meet with elected officials and policymakers on behalf of the real estate finance industry.
Nearly 400 industry advocates from more than 40 states attended the MBA National Advocacy Conference last week. The program featured a slate of congressional and administration speakers, including Senate Banking Committee Chairman Mike Crapo, R-Idaho; HUD Deputy Secretary Pamela Patenaude; Sen. Bob Menendez, D-N.J., and House Financial Services Committee members French Hill, R-Ark.; Denny Heck, D-Wash.; and Trey Hollingsworth, R-Ind. On Apr. 25, more than 360 attendees participated in 230 official constituent meetings with their senators and representatives on Capitol Hill.
Source: Steve O’Connor soconnor@mba.org; Bill Killmer at (202) 557-2746 bkillmer@mba.org
The Bureau of Consumer Financial Protection (Bureau) is amending Federal mortgage disclosure requirements under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) that are implemented in Regulation Z. The amendments relate to when a creditor may compare charges paid by or imposed on the consumer to amounts disclosed on a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith.
The TILA-RESPA Rule requires creditors to provide consumers with good faith estimates of the loan terms and closing costs required to be disclosed on a Loan Estimate. Under the rule, an estimated closing cost is disclosed in good faith if the charge paid by or imposed on the consumer does not exceed the amount originally disclosed, subject to certain exceptions. In some circumstances, creditors may use revised estimates, instead of the estimate originally disclosed to the consumer, to compare to the charges actually paid by or imposed on the consumer for purposes of determining whether an estimated closing cost was disclosed in good faith. If the conditions for using such revised estimates are met, the creditor generally may provide revised estimates on a revised Loan Estimate or, in certain circumstances, on a Closing Disclosure. However, under the current rule, circumstances may arise in which a cost increases but the creditor is unable to use an otherwise permissible revised estimate on either a Loan Estimate or a Closing Disclosure for purposes of determining whether an estimated closing cost was disclosed in good faith. This situation, which may arise when the creditor has already provided a Closing Disclosure to the consumer when it learns about the cost increase, occurs because of the intersection of timing rules regarding the provision of revised estimates. This has been referred to in industry as a “gap” or “black hole” in the TILA-RESPA Rule.
The Bureau understands that these circumstances have led to uncertainty in the market and created implementation challenges that may have consequences for both consumers and creditors. If creditors cannot pass increased costs to consumers in the specific transactions where the costs arise, creditors may spread the costs across all consumers by pricing their loan products with added margins. The Bureau also understands that some creditors may be denying applications, even after providing the Closing Disclosure, in some circumstances where the creditor cannot pass otherwise permissible cost increases directly to affected consumers, which can have negative effects for those consumers. For these reasons, in July 2017, the Bureau proposed to address the issue by specifically providing that creditors may use Closing Disclosures to reflect changes in costs for purposes of determining if an estimated closing cost was disclosed in good faith, regardless of when the Closing Disclosure is provided relative to consummation (2017 Proposal or “the proposal”). The Bureau is finalizing those amendments as proposed, with minor clarifying changes. To view the complete ruling, click here.
The Bureau of Consumer Financial Protection (Bureau) is amending Federal mortgage disclosure requirements under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) that are implemented in Regulation Z. The amendments relate to when a creditor may compare charges paid by or imposed on the consumer to amounts disclosed on a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith.
The TILA-RESPA Rule requires creditors to provide consumers with good faith estimates of the loan terms and closing costs required to be disclosed on a Loan Estimate. Under the rule, an estimated closing cost is disclosed in good faith if the charge paid by or imposed on the consumer does not exceed the amount originally disclosed, subject to certain exceptions. In some circumstances, creditors may use revised estimates, instead of the estimate originally disclosed to the consumer, to compare to the charges actually paid by or imposed on the consumer for purposes of determining whether an estimated closing cost was disclosed in good faith. If the conditions for using such revised estimates are met, the creditor generally may provide revised estimates on a revised Loan Estimate or, in certain circumstances, on a Closing Disclosure. However, under the current rule, circumstances may arise in which a cost increases but the creditor is unable to use an otherwise permissible revised estimate on either a Loan Estimate or a Closing Disclosure for purposes of determining whether an estimated closing cost was disclosed in good faith. This situation, which may arise when the creditor has already provided a Closing Disclosure to the consumer when it learns about the cost increase, occurs because of the intersection of timing rules regarding the provision of revised estimates. This has been referred to in industry as a “gap” or “black hole” in the TILA-RESPA Rule.
The Bureau understands that these circumstances have led to uncertainty in the market and created implementation challenges that may have consequences for both consumers and creditors. If creditors cannot pass increased costs to consumers in the specific transactions where the costs arise, creditors may spread the costs across all consumers by pricing their loan products with added margins. The Bureau also understands that some creditors may be denying applications, even after providing the Closing Disclosure, in some circumstances where the creditor cannot pass otherwise permissible cost increases directly to affected consumers, which can have negative effects for those consumers. For these reasons, in July 2017, the Bureau proposed to address the issue by specifically providing that creditors may use Closing Disclosures to reflect changes in costs for purposes of determining if an estimated closing cost was disclosed in good faith, regardless of when the Closing Disclosure is provided relative to consummation (2017 Proposal or “the proposal”). The Bureau is finalizing those amendments as proposed, with minor clarifying changes. To view the complete ruling, click here.
On Apr. 26, MBA submitted comments on the Consumer Financial Protection Bureau’s Request for Information on Civil Investigative Demands. MBA’s comments communicated many of the industry’s concerns with the CID process. In addition to offering comments related to the CID process, MBA reiterated its support for a broad reexamination of Bureau practices as detailed in MBA’s CFPB 2.0: Advancing Consumer Protection white paper.
CIDs are used by the Bureau to request information that may be relevant to a potential violation of consumer financial protection law. Responding to a CID is a very burdensome process that can involve significant resources and reputational harm. The letter describes aspects of the current CID process that are unfair, including the overly broad notification of purpose statements, the low threshold of initiating an investigation, the inadequate CID challenge process, and the unrealistic timelines. These and other aspects of the current CID process contribute to an imbalance between the Bureau and CID recipient that’s contrary to due process protections. The comment letter offers suggestions to correct this imbalance in a way that recognizes the costs and reputational risks to CID recipients.
Source and for more information please contact Justin Wiseman at (202) 557-2854 jwiseman@mba.org; or Blake Chavis at (202) 557-2930 bchavis@mba.org.
The Mortgage Action Alliance (MAA) is a voluntary, non-partisan and free nationwide grassroots lobbying network of real estate finance industry professionals, affiliated with the Mortgage Bankers Association. MAA is dedicated to strengthening the industry’s voice and lobbying power in Washington, DC and state capitals across America. Get involved with MAA to play an active role in how laws and regulations that affect the industry and consumers are created and carried out by lobbying and building relationships with policymakers. It only takes a moment to get started, and you do not have to be a member of MBA to enroll.
On November 20, 2017, the New York Mortgage Bankers Association and the Mortgage Bankers Association (MBA) submitted joint comments to the New York State Department of Financial Services regarding a Department’s proposed rule, giving them broad enforcement authority over credit reporting agencies. The rule gives the Department the ability to refuse to renew, suspend or revoke the registration of a credit reporting agency, including any of the three nationwide credit reporting agencies. Should the Department take one of these actions against a nationwide CRA, borrowers in New York State would be unable to obtain a tri-merged credit report, a requirement for FHA, VA, USDA, Fannie Mae and Freddie Mac financing. New York borrowers moving to other states would also be impacted. To view the proposed rule and the NYMBA/MBA comments, click on the following links:
PROPOSED RULE
NYMBA/MBA COMMENTS
On July 7, 2017, the CFPB published “Updates to [the] ‘Know Before You Owe’ Mortgage Disclosure Rule,” to provide more clarity and greater certainty, as well as include technical corrections and amendments. The 560 page document includes:
Throughout his two decades in real estate lending, Michael Galligan has blended business skills, regulatory knowledge, and consumer satisfaction. He serves as Manager of Compliance and Quality Control at CAP COM Federal Credit Union and is a Mortgage Bankers Association-certified Mortgage Compliance professional. Galligan’s areas of expertise include laws and regulations impacting financial institutions and mortgage entities. Prior to joining CAP COM in 2013, Galligan served in a number of lending and banking roles he worked as Loan Operations Manager, Assistant Vice President for Legacy Banks in Pittsfield, Massachusetts (now part of the Berkshire Bank family).
His current role at CAP COM evolved from service he performed at Homeowners Advantage, CAP COM’s mortgage subsidiary. As Mortgage Audit Specialist, Galligan created procedures and training courses for audit and quality control delivery processes. As Manager of Compliance and Quality Control, Galligan focuses on adherence with Federal and New York State laws and regulations which impact the operations of the credit union. He creates and manages programs that address regulatory risk for CAP COM’s $2 billion dollar business, including Homeowners Advantage and Old Heritage Realty Services subsidiaries. Michael’s B.A. in Psychology is from Siena College. He holds certifications in Mortgage Compliance and Quality Control from AllRegs Academy, a real estate lending trade school. He also holds a Certified Credit Union Compliance Expert (CUCE) designation from the Credit Union National Association (CUNA). Other professional accreditations include Meyers Briggs Management Training, HVHC Management Development Training, and the OZ Principle Accountability Training. Michael is a member of the New York Mortgage Bankers Association Board and lives in Niskayuna, NY. Michael enjoys working internally with various departments at CAP COM. He graduated from the CAP COM Emerging Leaders Class of 2019 and also served on the CAP COM Employee engagement and encouragement committee, GUSTO.
Patrick worked as a residential mortgage banker for a large regional financial institution for 15 years. Having been a successful retail loan originator, he understands the importance of the lender/realtor relationship and helped create LenderLogix from a banker’s perspective. Patrick has a passion for process improvement and led initiatives to bring efficiencies to the mortgage process. He’s advised on several major LOS implementations and consulted throughout design, testing and implementation. Patrick is a graduate of the University at Buffalo and lives in Buffalo, NY.
Steven A. Milner has nearly 4 decades of experience in the Mortgage Banking industry having started his career as a Loan Officer in 1981 in New York on Long Island. Currently, Mr. Milner is the Founder and CEO of US Mortgage Corporation, an Independent Mortgage Banker licensed in 47 States and Washington, D.C. which he founded in 1994.
In 1994, Mr. Milner made the decision to start his own Independent Mortgage Banking Company and founded US Mortgage Corporation on February 1, 1994. Mr. Milner as CEO oversees the day to day operations of US Mortgage Corporation. The company, headquartered in Melville, NY has over 260 employees and in 2017 will originate over $1billion, 82% of which is Purchase Money. Moreover, Mr. Milner is a Licensed Mortgage Loan Originator in 50 States and Washington, D.C. The company has proven its lasting power through volatile market cycles by following its Core Value “Seek Longevity” and making strong critical decisions, including not funding Sub-Prime loans as a Mortgage Banker before and after the Financial Crisis of 2007. In his career he has originated over $4 billion and continues to personally originate in excess of $4mlllion per month.
US Mortgage Corporation is currently a Fannie Mae Seller Servicer with over 25 Branches. His employees all believe in the value of helping people attain the dream of Home Ownership. As such, Mr. Milner has consistently focused on making education the key cornerstone to helping home buyers attain their dream of homeownership.
Greg has 30 years experience in Multi-Unit restaurant management with International restaurant companies as well as over 15 years as a Mortgage Originator. He is the current President of the Central New York Mortgage Bankers Association. He also is on several industry related committees.
Jeff Barringer is a member in the Albany office of McGlinchey and concentrates his practice on consumer financial services regulatory compliance. Jeff advises financial institutions, mortgage lenders, mortgage servicers, sales finance companies, and other providers of consumer financial services on compliance with state and federal law. He has particularly notable experience in mortgage lending, mortgage servicing, and manufactured housing finance. He also counsels clients regarding automobile finance, sales finance, secured and unsecured lending, commercial lending, real estate brokerage, and money services businesses.
Jodi Gaines is the Chief Client Relations Officer and EVP of Business Development and Government Relations of Insight One Solutions. Insight One Solutions is a family of companies that consists of Sortis Financial, MSI, IProperty Claims and Williams & Williams Auction. Prior to joining Insight One, Jodi co-founded and started Claims Recovery Financial Services, LLC “CRFS” at her kitchen table. CRFS specializes in Government, GSE and PMI Claims and Loss Analysis. Prior to CRFS, Jodi spent 14 years at North American Mortgage, Dime Savings and Anchor Mortgage. Jodi is on the Board and Executive Board of New York MBA and serves as the NYMBA Loan Servicing Chair. Jodi is the co-chair the MBA Claims working group and participates on the MBA LAC and Property Preservation Committees. Jodi is the Co-chair Five Star’s American Mortgage Diversity Council “AMDC”. Jodi is on the Board of United Way of Orleans County and serves as the Allocations Chair.
Starting as a Mortgage Banker and then moving to the Banker Training Team to lead Quicken Loans’ effort for the development, regulatory approval and implementation of its licensed training curriculum, Wendell Robinson has been with the Quicken Loans Family of Companies since 2010. In 2019 he moved to the Government Affairs team and assumed his current role leading the 50 State Group as Senior Director of Government Affairs in August 2020. Beyond his focus on lobbying and organizational relations, Wendell’s national portfolio includes Licensing, Compliance, Education and Tax. His professional background includes responsibilities as a business owner, manager, writer, advocate, and project leader. Immediately prior to coming to Quicken Loans, Wendell led an advisory consultancy serving professional athletes, as well as the entertainment and political arenas.
Wendell’s wife Kathleen, a pastry chef has appeared on the Food Network and the Cooking Channel. Together they own the pink Bandana Bakery in Mentor, Ohio where they reside with their daughter Paige.
Jacqueline is a partner and founding member at DeAngelus Goralczyk, PLLC. She concentrates her practice in the areas of cybersecurity and data privacy law as well as residential and commercial real estate and business formations. Jacqueline is also the CEO at Global Cybersecurity Solutions, LLC. GCS focuses on the cybersecurity and data privacy needs of small to medium size businesses. GCS offers a comprehensive approach to cybersecurity from audit and planning to breach response and remediation.
