Manufactured Housing Title Conversion

helm on July 20, 2018

To help ensure that affordable mortgage financing remains a viable option for manufactured home owners in New York, NYMBA supports proposed legislation, S6277A, which makes necessary changes to state law that allow lenders to comply with secondary and investor requirements.   Jeff Barringer and Marc Lifset of McGlinchey Stafford, New York MBA members, helped to craft the language in the bill that received Legislature approval.

While many manufactured homes are financed as personal property, the ability to finance land and a manufactured home with a mortgage is an attractive option for many homeowners seeking more favorable financing terms. Without the support and involvement of investors such as Freddie Mac, the availability of Land-Home Mortgages is limited.

Currently, in forty-four (44) states, a certificate of title establishes ownership of, and perfection of a security interest in, a manufactured home. All but New York also provide a formal statutory procedure for electing to convey and encumber a home as real property. Satisfying this conversion procedure legally converts the home to real property for all purposes.

DFS listens to New York MBA

helm on July 20, 2018

Peter Dean, Executive Deputy Superintendent and Rholda Rickets, Deputy Superintendent of New York State Department of Financial Services met with New York MBA Executive Board members regarding Federal legislation mandating Temporary Authority for Loan Officers; the new state regulation mandating Credit Reporting Agency Registry and proposed Online Notarization.

DFS meeting 7.19.2018

FHA Lender Roundtable

helm on July 20, 2018

July 19, 2018:  Philadelphia Homeownership Center of U.S. Dept. of HUD came to New York to listen to lenders, provide updates, and share ideas to benefit FHA borrowers, homeowners and lenders.

FHA Jim & Julie 7.19.2018

Julie Shaffer, Director HUD’s Philadephia HOC
and James Bopp, New York MBA President.

FHA Steven & Jacki 7.19-2018

FHA Group Pic 7.19.2018

 

AMC Licensing moves forward

helm on June 21, 2018

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.

Federal Regulatory Relief Legislation a Reality

helm on May 25, 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:

  • SAFE Act amendments to provide 120 days of transitional authority for MLOs to originate when leaving a depository to join a sponsoring non-bank (or when crossing state lines);
  • Applying TILA consumer protections to PACE/energy efficiency mortgage products;
  • Added safeguards to protect veterans, surviving spouses and service members who utilize the VA Home Loan program’s IRRRL refinancing product;
  • An improved, more workable regulatory regime for the eligibility of High Volatility Commercial Real Estate (HVCRE) construction loans; and,
  • Partial TRID and HMDA relief

Source: MBA

Thank you to those who took action on these important issues!  Your advocacy makes a difference.

Trump approves Regulatory Relief Legislation

helm on May 24, 2018

Regulatory Relief Legislation receives Trumps approval

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:

  • SAFE Act amendments to provide 120 days of transitional authority for MLOs to originate when leaving a depository to join a sponsoring non-bank (or when crossing state lines);
  • Applying TILA consumer protections to PACE/energy efficiency mortgage products;
  • Added safeguards to protect veterans, surviving spouses and service members who utilize the VA Home Loan program’s IRRRL refinancing product;
  • An improved, more workable regulatory regime for the eligibility of High Volatility Commercial Real Estate (HVCRE) construction loans; and,
  • Partial TRID and HMDA relief

Thank you to those who took action on these important issues!  Your advocacy makes a difference.

Senate Approves Montgomery as FHA Commissioner

helm on May 24, 2018

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 Talks to Congress

helm on April 27, 2018

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

Clearer Ruling is Good News, Borrowers / Lenders

helm on April 27, 2018

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.

CFPB closes “gap” in TILA-RESPA Rule

helm on April 27, 2018

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.