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Two major changes in the mortgage market go into effect this month, and both could help millions more borrowers qualify for a home loan. The changes will also add more risk to the mortgage market. Read the full story here.
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In this Issue |
July 2017 Edition |
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Presidents Message
State News & EventsLegislative Update - George Klaetsch Chapter News & Events |
 WMBA Members, With the dogs days of summer upon us reports of mortgage production and pipelines remain robust despite the housing inventory issues our members face all across the State. Activity in the WMBA also remains robust as we enter one of our most active times of the year. A few upcoming events to take note of: Aug 18th: Zoo a la carte at the Milwaukee Zoo. A great evening of food and music outdoors while networking with members. Family and friends are welcome to attend this event. Sept. 7th: WMBA golf outing will be held at the Broadlands Golf Club in North Prairie. We hope to have close to 100 golfers. I great way to meet members and wonderful opportunity to sponsor a hole or simply show up for the dinner portion of the evening. Oct. 19th: Join us for the 3rd Annual Best in Business Awards at the Concourse Hotel in Madison. This is one of our flagship events of the year as we will host approximately 300 of members and recognize those have excelled in our industry in Hollywood style fashion. This is a great night for team outings to celebrate your success. Just a reminder that membership dues invoices have gone out and are due on September 30th. Your membership is appreciated. If you have suggestions or feedback of how we can serve our membership better please feel free to contact me. Thanks and have a great August! Joe Doyle WMBA President 2017-2018
Legislative Update - George Klaetsch
Call for WMBA Legislative Committee Participation |
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Madison Chapter President Advocating for the Industry
Ronelle Escher, Madison Chapter President, was advocating for the Mortgage Banking Industry on issues before congress. Click here to see the article Keep Housing Finance Reform a Top Priority from the Wisconsin State Journal.
Milwaukee
Zoo a la Carte Summer Event
August 18, 2017
Milwaukee Zoo
10001 West Blue Mound Rd.
Milwaukee, WI
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Northeast
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Two Major Lending Changes Mean It's Suddenly Easier to Get a Loan
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Consumer Financial Protection Bureau Finalizes Updates to "Know Before You Owe" Mortgage Disclosure Rule
The Consumer Financial Protection Bureau (CFPB) finalized updates earlier this month to its “Know Before You Owe” mortgage disclosure rule with amendments that are intended to formalize guidance in the rule, and provide greater clarity and certainty. The changes will facilitate implementation of the Know Before You Owe rule by the mortgage industry. The CFPB is also releasing a limited follow-up proposal to address an additional implementation issue.
“A mortgage is one of the largest financial decisions a consumer will ever make, and CFPB’s rules help ensure consumers have the easy-to-understand information they need before making a decision that will significantly impact their financial lives,” said CFPB Director Richard Cordray. “Our updates will clarify parts of our mortgage disclosure rule to make for a smoother implementation process for lenders and consumers.”
The Know Before You Owe mortgage disclosure rule took effect Oct. 3, 2015. The CFPB’s rule created new, streamlined forms that consumers receive when applying for and closing on a mortgage. In addition to clarifications and technical corrections, the amendments that the Bureau is finalizing today address a handful of other issues within the rule, including:
· Tolerances for the total of payments: Before the Know Before You Owe mortgage disclosure rule, the total of payments disclosure was determined using the finance charge as part of the calculation. The Know Before You Owe mortgage disclosure rule changed the total of payments calculation so that it did not make specific use of the finance charge. The Bureau is now finalizing updates to include tolerance provisions for the total of payments that parallel the tolerances for the finance charge and disclosures affected by the finance charge.
· Housing assistance lending: The Know Before You Owe mortgage disclosure rule gave a partial exemption from disclosure requirements to certain housing assistance loans, which are originated primarily by housing finance agencies. The Bureau’s update, as finalized, promotes housing assistance lending by clarifying that recording fees and transfer taxes may be charged in connection with those transactions without losing eligibility for the partial exemption. The update also excludes recording fees and transfer taxes from the exemption’s limits on costs. Through the update, more housing assistance loans will qualify for the partial exemption, which should encourage these loans.
· Cooperatives: The Bureau is finalizing updates to extend the rule’s coverage to include all cooperative units. Currently, the rule only covers transactions secured by real property, as defined under state law. Cooperatives are sometimes treated as personal property under state law and sometimes as real property. By including all cooperatives in the rule, the Bureau is simplifying compliance and ensuring that more consumers benefit from the rule.
· Privacy and sharing of information: The Know Before You Owe mortgage disclosure rule requires creditors to provide certain mortgage disclosures to the consumer. The Bureau has received many questions about sharing the disclosures provided to consumers with third parties to the transaction, including the seller and real estate brokers. The Bureau understands that it is usual, accepted, and appropriate for creditors and settlement agents to provide a Closing Disclosure to consumers, sellers, and their real estate brokers or other agents. The Bureau is finalizing additional commentary to clarify how a creditor may provide separate disclosure forms to the consumer and the seller.
The finalized amendments are available at: files.consumerfinance.gov/f/documents/...
In addition to the final rule, the CFPB is issuing a proposal addressing when a creditor may use a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith and within tolerance. Comments are due 60 days after the proposal’s publication in the Federal Register and will be weighed carefully before a final regulation is issued.
The proposal is available at: files.consumerfinance.gov/f/documents/...
Wisconsin Mortgage Bankers Association Online Store
The WMBA and the MBA have teamed up to bring you great access to the education components you need to stay current in the Mortgage Banking Business.For every product purchased through the WIMBA-MBA store the WMBA receives a % back.
Please use the link below to help support our Association!
Wisconsin Mortgage Bankers Online Store
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