To: New York Attorney General, Freddie Mac, Fannie Mae and the Office of Federal Housing Enterprise Oversight The Home Valuation Code of Conduct (“HVCC”) stands to be an important step forward for consumers and the Real Estate industry, but in its current form there are some important changes that require your attention. In its current
Appraisals
Stocks, Especially Banks, Rally On Stress Test Results I am the first to admit that if I had to make a living as a day trader, I would be bankrupt within a month. Yesterday was a perfect example. Bank stress test results have been leaked out, showing, for example, that Citi, Bank of America, and
Loan Officer Quotes On Appraisal Rules & FHA Loans Here are some quotes from real-live people in the mortgage business, concerning the HVCC & FHA loans: “You are correct. Bank of America doesn’t buy without an appraisal on VA IRRR’s.” “I am sure that Countrywide/BofA will NOT purchase them at all. The problem with GMAC
As we’ve been discussing (1, 2, 3), new Home Valuation Code of Conduct (HVCC) rules went into effect Friday that prevent loan officers from talking to home appraisers. Our previous posts focus on getting home financing transactions done in the context of the new rules. This post is an opinion piece. My opinion is that
Market Roundup Before we launch into the plethora of investor updates, let’s take a look at the market. With the absence of any bond-market news, the focus continues to be on stocks. Asian stocks rallied last night back to levels last seen in October. To many, in spite of the poor earnings results by many
As we’ve covered in detail, the so-called Home Valuation Code of Conduct (HVCC) went into effect today, which officially cuts off mortgage loan officers from ordering appraisals or even talking to appraisers during a property transaction. Specifically, this is for Fannie/Freddie qualified loans, and portfolio loans (like jumbo mortgages) do not have to comply since
What is MERS? MERS, a classic “behind the scenes” vendor in the mortgage business, made headlines last week. And tonight, when you’re tucking the youngin’s into bed, you can show them this graphic of the process. Should put just about anyone to sleep. BofA Drops Countrywide Name In a Bloomberg news story, Bank of America
My WeeklyBasis report has been anything but in the past two months. One reason is that yet another voice doesn’t always help when market hysteria levels run high. The other reason is that I’ve been busy. The lending industry continually shifts as the credit crunch moves toward the end of its 21st month, so this
Fannie Mae, Freddie Mac and the appraisal institute just released a good presentation on new industry-wide appraisal requirements going into effect May 1, called the Home Valuation Code of Conduct (HVCC). The high points of HVCC are that it will require that banks order appraisals and not loan originators in direct contact with the consumer,
New Tax Code Coming? President Obama has announced a task force to review the tax codes. He’s concerned there are too many loopholes and too many people manipulating the system to avoid paying taxes. And that’s just in his administration. Mortgage Brokers Still Kicking Many large companies have left the wholesale arena. Although I am
One-Month T-Bill Yields Negative Again I called up the US Treasury yesterday to ask them how much they’d pay me to loan them money (e.g., buy a Treasury security) for a month. They replied, “Not only will we not pay you any interest, but you’ll pay us interest to loan us your money!” A novel
Q: What’s the problem with Barack Obama jokes? A: His supporters don’t think they’re funny and other people don’t think they’re jokes. Obama Takes Heat over Fannie/Freddie There is no shortage of critics, or jokes, when you’re president. Most recently, Obama’s mortgage plan for Fannie & Freddie is being faulted since Fannie and Freddie’s charters
Jay Leno said, “California finally passed a budget. Now Californians can go back to doing what they do best … buying homes they can’t afford.” Little do they realize how much the rest of the nation believes this to be true. Dow Hammered, Home Prices Record Drop Not only Californians but everyone else in the
Here’s something shocking – officials in Mendocino County, California, say two thirds of the income in that county comes from marijuana growing. And the other third comes from the sale of Chips Ahoy cookies. How Much is $1 Trillion Lawmakers and economists throw “billions” and “trillions” around. To put a “trillion” in perspective, at a
The FBI now says that 80% of the crime in the U.S. is being carried out by ruthless gangs… But enough about Citigroup, Bank of America and Goldman Sachs. Technical Discussion on Loan Pricing I was never very good with numbers. (I was speaking with an underwriter the other day who told me, “I once
In the news, besides Ms. Palin becoming a grandmother up in Alaska (the baby’s name is Tripp), you know how bad the economy is? This week, Exxon Mobil had to lay off 25 congressmen. One Event Larger Than TARP Only one event in American history was allocated more money than the Treasury’s TARP program. Do
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