Arizona Association of Mortgage Professionals

Fingerprinting Now Available through NMLS for SAFE Act Pre-Licensing

Arizona Association of Mortgage Brokers

NMLS has posted information on their website about getting fingerprints...one of the necessary steps in the process of obtaining a mortgage originator license in compliance with the SAFE Act.

Fingerprints will be submitted to the FBI in order to conduct a criminal background check.  Results of the check will be attached to each mortgage loan originator's NMLS record. 

The fee is $39 for a live scan (electronic) capture, or $49 (or more) for paper card capture.  Live scan and paper card locations can be selected from a list of vendors during the process of registering for fingerprinting. 

Live scan is recommended by NMLS over paper card capture because it costs less, can be scheduled more quickly, requires fewer steps, and results in fewer unreadable prints, which presumably require a do-over.

To begin the process and for more information, CLICK HERE to go to the NMLS website.

For more general information on the AAMB Blog about licensing, click here.

HUD announces FHA changes; MIP to increase

Arizona Association of Mortgage Brokers

Please see below for an important press release from HUD.  

 

HUD No.10-016 Melanie Roussell (202) 708-0980

FOR RELEASE Wednesday January 20, 2010

FHA Announces Policy Changes to Address Risk and Strengthen Finances

New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.

The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.

“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”

Announced FHA Policy Changes:

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
   • The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
   • If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
   • This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
   • The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
2. Update the combination of FICO scores and down payments for new borrowers.
   • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
   • This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
   • This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
3. Reduce allowable seller concessions from 6% to 3%
   • The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
   • This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
4. Increase enforcement on FHA lenders
   • Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
     • This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
   • Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
     • Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
     • This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
   • Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
     • Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
   • HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
     • Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
     • Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.

###

HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development ad enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

AAMB Legislative Alert

Arizona Association of Mortgage Brokers  

What does your AAMB membership do for you?

Why should you RENEW or JOIN NOW?

Dear AAMB Member and Everyone in the Mortgage Industry,

As a member in AAMB you are also a member in the National Association of Mortgage Brokers (NAMB).

NAMB continues to educate lawmakers and regulators in the continued battle to defend yield spread premiums from inaccuracies painting small business mortgage brokers in a negative and disparaging manner. 

Most recently, a small faction of Senate Democrats, led by Sen. Jeff Merkley (D-OR), sent a letter to the Federal Reserve Board calling for a ban on YSP, labeling it as an unfair and deceptive practice used to steer consumers into riskier mortgage loans and gain a larger profit. 

The letter was clearly used to protect Wall Street and big banks increase their market share at the expense of unemployed small business men and women and their employees, by deflecting Wall Street’s and big banks’ involvement in causing the mortgage and housing crisis.  Click HERE for the Senate Letter. 

Sen. Christopher Dodd (D-CT)                Sen. Robert Menendez (D-NJ)
Sen. Carl Levin (D-MI)                            Sen. Mark Warner (D-VA)
Sen. Barbara Mikulski (D-MD)                Sen. Ron Wyden (D-OR)
Sen. Jack Reed (D-RI)                           Sen. Daniel Akaka (D-HI)
Sen. Claire McCaskill (D-MO)                 Sen. Russ Feingold (D-WI)
Sen. Benjamin Cardin (D-MD)                 Sen. Frank Lautenberg (D-NJ)
Sen. Charles Schumer (D-NY)                Sen. Sherrod Brown (D-OH)
Sen. Bob Casey (D-PA)                         Sen. Jeanne Shaheen (D-NH)
Sen. Sheldon Whitehouse (D-RI)
  
NAMB's government relations team was alerted to the fact that Senator Merkley was soliciting signatures on a letter to the Federal Reserve to ban mortgage broker compensation.  NAMB immediately responded to this effort with a letter to the Senate defending mortgage broker compensation by explaining its use in providing options to consumers.

NAMB's letter to the Senate provided detailed information on the required disclosure of mortgage broker compensation under Federal law, citing several federal documents clarifying the legal use of YSP. Additionally, NAMB's letter shed light on the deep involvement Wall Street and big banks have played fueling the subprime boom.  NAMB also pointed out the need for mortgage lender compensation to be regulated in the same manner as mortgage broker compensation.  Click HERE for the NAMB Letter.

These types of false accusations against you as a mortgage broker will continue and are what mortgage brokers must fight against in Congress.  NAMB has worked hard to defend mortgage brokers against deceptive and misleading information, and we have been successful in many instances. 

Our fight has intensified tremendously as the Senate considers comprehensive financial regulatory reform.  NAMB continues the fight to protect and preserve your industry, but NAMB NEEDS YOUR HELP to support the high level of consistent action taken on behalf of your businesses.  Your active participation is very important and can make the difference.  Now is the time! 

GET INVOLVED!
At the NAMB 2010 Legislative & Regulatory Conference in Washington, DC in February, members of the Board of AAMB will take this opportunity to speak with members of Congress, to protect your industry.  2010 is set to be another busy legislative and regulatory year.  NAMB will have panelists and guest speakers talk on the most important issues facing the mortgage industry this year.  If you are a member you can come to the NAMB Legislative Conference in order to be a part of this effort to set the record straight.  Visit www.namb.org/legconference for more information!

2010 KEYNOTE SPEAKER: FHA Commissioner David Stevens

DONATE!
NAMBPAC raises money to elect and re-elect candidates that have a clear understanding of the topics that are at the forefront of the mortgage broker industry and who support our initiatives.  When you contribute to NAMBPAC you are helping your business and the mortgage broker Industry. NAMB members are able to build a united voice on Capitol Hill and provide a key role in the campaign process by contributing funds to support candidates who share the same viewpoints and outlook for our industry. 

If you are serious about staying in this business now more than ever we need to build the PAC funds! The only way we can fight this is through strength in membership and PAC funds. Don't waste anytime thinking about it or contemplating contributing, DO IT NOW by donating $50.00, $75.00, $100.00 or more today!  To donate, click HERE!

The NAMB Legislative and Regulatory Action Fund directly helps fund the extensive daily legislative and regulatory efforts maintained by NAMB.  By donating, you support NAMB's commitment to a competitive and level playing field among origination channels, combating abusive lending practices, a simplified mortgage process, consumer financial literacy, and fair access to affordable credit.  To donate, click HERE!  

IF YOU ARE ALREADY A MEMBER, RECRUIT NEW MEMBERS!
Do you have colleagues who are not members of AAMB/NAMB? Begin the New Year on the right track by recruiting new members to join AAMB/NAMB!  We are working hard to protect, promote and propel the small business mortgage profession. 

AAMB/NAMB keeps its members educated, trained and well-informed on everything happening in the mortgage broker industry.  Benefits include: Legislative advocacy, discounted education, industry public relations, member discounts, certification opportunities, valuable networking at conferences, and more!
Direct potential members to www.aamb.org today!


What Has NAMB done in 2009?
NAMB fights for its members on a daily basis on the frontlines and behind the scenes.  Click HERE for an overview of what NAMB accomplished in 2009 on a month-by-month basis.