Wednesday, February 22, 2012

MReport: CFPB Convenes Panel to Review Mortgage Disclosure Forms

CFPB Convenes Panel to Review Mortgage Disclosure Forms

The Consumer Financial Protection Bureau (CFPB) took steps Tuesday to engage mortgage lenders by forming a small business panel to review the integration of mortgage disclosure requirements into a single document.
The Dodd-Frank Act obligates the bureau to streamline conflicting rules and statutory requirements from the Real Estate Settlement Act and Truth-in-Lending Act.

The CFPB billed the panel as a way to increase transparency with mortgage lenders, take into account their thoughts on a single form, and build a fairer and more comprehensive document for borrowers.

“This is another step in the CFPB’s wide-ranging efforts to gather the input of the people who will be affected by our rules,” CFPB director Richard Cordray said in a statement. “The CFPB is dedicated to issuing thoughtful, research-based rules that take into account not only the benefits to consumers, but also how businesses of all sizes.”
Among other ways, the bureau plans to task the small business panel with review of loan estimates, disclosure and various requirements related to the two-long-standing laws.

The CFPB said in the statement that the formation of a panel builds on form-testing activities it has conducted in nine cities and more than 27,000 comments received from the public and industry sources.
The bureau will move forward by proposing a rule for the disclosure form in the Federal Register by July. A report on the disclosure form is due two month after the panel assembles.

Tuesday, February 21, 2012

2012 Tradeshow & Conference Schedule

It is that time of year again when the sales team heads out to all kinds of tradeshows and conferences. We just wanted to let you know where we will be for the next few months. If you are attending or exhibiting at any of these shows and are interested in setting up a meeting or visit to the booth please let Ali know at

Lenders One Winter Conference
March 5-7, 2012, Hyatt Regency Resort & Spa, Huntington Beach, California
 8th Annual CMC Conference
March 12-14.2012, Ponte Vedra Inn and Club, Ponte Vedra Beach, FL
Colorado Mortgage Lenders Association Annual Show
April 5th, Denver, Colorado
MBA National Technology in Mortgage Banking Conference
April 22-25, 2012 Arizona Biltmore, Phoenix, Arizona
MBA National Secondary Conference & Expo
May 6-9, 2012 New York Marriott Marquis, New York City
Avista Solutions User Conference
May, Charleston, South Carolina
MBA Legal Issues/Regulatory Compliance Conference
May 20-23, 2012, La Quinta Hotel, Palm Springs, California
Texas Mortgage Bankers Annual Show
May 20-23rd, San Antonio, Texas
40th Annual Western Secondary Market Conference
July 10-12, 2012, Westin St. Francis Hotel, San Francisco, California
New England Mortgage Bankers Conference
September 19-21, 2012, Newport, Rhode Island
MBA 99th Annual Convention & Expo
October 21-24, 2012, Hyatt Regency, Chicago, Illinois

There might be other conferences or tradeshows that come up, but we will definitely keep everyone up to date.

Thursday, February 16, 2012

Business Week Article: Student Loans Near $1 Trillion Hurting Young Buyers: Mortgages

In November I posted about how President Obama was feeling the burden of student loan debts and the rising prices of a college education. Well student loans are at it again, not only are they effecting  students and parents, but they are contributing to our weak economy and the bounce back of the mortgage industry.

In Business Week this morning there was an article discussing how student loans near $1 trillion is hurting young home buyers.

Roshell Schenck has a PhD in pharmacy and earns $125,000 a year, yet can't qualify for a mortgage for a house for herself and her 9-year-old daughter. The 2008 graduate of Lake Erie College of Osteopathic Medicine, in Erie, Pennsylvanian, has more than $110,000 in student debt.

"I'd love to buy and can afford to buy," said Schenck, 28. Since lenders place closer scrutiny on college loans than in prior years, she says, "it's almost impossible for me to get a loan. My debt is crushing my chances of purchasing a home."

As outstanding student debt approaches $1 trillion, it's one more reason record-low interest rates aren't doing more to boost housing. the tighter lending standards that have emerged in the wake of the recession weigh particularly on younger, first-time home buyers, according to a Federal Reserve study sent to Congress on Jan. 4. These households tend to be younger, often have relatively new credit profiles, lower-than-average credit scores and fewer economic resources to make a large down payment, the report said.

"Potential first-time home buyers have been disproportionately affected by the very tight conditions in mortgage markets," said Federal Reserve Chairman Ben S. Bernanke at a home builders conference last week. "First-time home buyers are typically an important source of incremental housing demand, so their smaller presence in the market affects house prices and construction quite broadly."

According to the Fed's white paper 9 percent of 29- to 34-year-old's got a first-time mortgage between 2009 and 2011, compared with 17 percent 10 years earlier. "This data suggest a large decline in mortgage borrowing by potential first-time home buyers due to not only weaker housing demand, but also the effect of tighter credit conditions," the Fed said.

Outstanding education debt surpassed credit-card debt last year for the first time, according to Mark Kantrowitz, publisher of, a student loan website. Recent college graduates carry an average debt load of more than $25,000 each, which can limit their ability to qualify for mortgages even if they're fortunate enough to land a job in a market with an unemployment rate of 9 percent for 25 to 34 year-old's.

Calling it a 'student-loan debt bomb,' the National Association of Consumer Bankruptcy Attorneys warned Feb. 7 about the effects of rising student debt on recent graduates, parents who cosigned their loans and older Americans who have gone back to school for job training.

"just as the housing bubble created a mortgage debt overhang that absorbs the income of consumers and renders them unable to engage in consumer spending that stimulates the economy, so to are student loans beginning to have the same effect, which will be a drag on the economy for the foreseeable future," said John Rao, vice president of the NACBA.

People age 25 to 34 made up 27 percent of all home buyers in 2011, the lowest in the last decade and compared with 33 percent in 2001, according to the National Association of Realtor's. At the same time, first-time buyers last year accounted for 37 percent of all purchases, the lowest since 2006, when home prices peaked and the housing boom was showing cracks.

"Students coming out of college are burdened with more debt than traditionally they have been, and they are also coming into an economy that is underperforming previous recoveries," said Rick Palacios, a senior analyst at John Burns Real Estate Consulting LLC in Irvine, California. "these things pile on each other and tell us it's not going to help the housing recovery right now."

So it seems that things might look good on the surface, but when you get down to the details you know that we are still in trouble when it comes to first-time home buyers and their ability to really help boost the housing industry.

Wednesday, February 8, 2012

Guest Blog: Inlanta Mortgage

IDS takes pride in the business relationships and partnerships that we have developed over the 20 plus years in the mortgage industry. Today’s guest blog is by Inlanta Mortgage an IDS customer since 2009. Inlanta is a thriving mortgage banker who knows what technology can do for them if they have exactly what they need in order to provide their customers with the best service. Today Inlanta discusses how to choose your technology vendors and how it helps you succeed.

Every lenders mission is to originate the perfect loan. It is essential in 2012 and beyond!  To do so, Inlanta Mortgage, Inc. aligns ourselves with vendors that understand that the perfect loan all comes down to compliance and accuracy.

Inlanta’s document prep vendor, IDS, understands the challenges inherent in today’s mortgage industry in terms of accuracy and compliance.  IDS’s hands-on support team is able to update, customize, or create new forms for us with limited turnaround times. Compliance updates such as investor or program guideline changes are implemented quickly and correctly.

Jean Badciong, Inlanta Mortgage’s Chief Operating Officer, stated, “Using a document vendor enables Inlanta to sell more quality and compliant loans to multiple investors. An added advantage of working with IDS is the excellent customer service we receive when we have to react quickly to industry changes.  IDS is just as quick reacting which provides us the support we need.”

Inlanta has worked with several document prep vendors over the years and IDS has far surpassed them all in support and service.  It is with the support of like-minded technologically advanced vendors that Inlanta Mortgage has been able to maintain stable growth.  Inlanta Mortgage currently has 29 branches, is licensed in 14 states and continues to grow.

The mortgage industry has experienced many dramatic changes over the last few years. Successful mortgage banking companies understand that their success is contingent upon quality support. With the support of technologically advanced companies like IDS, Inlanta has been named as a Top Tech Savvy Lender. Inlanta Mortgage hopes to maintain a mutually beneficial relationship with IDS moving into the future.

Friday, February 3, 2012

Unemployment Rate Falls

Big news today about the unemployment rate dropping to 8.3%. The economy added 243,000 jobs in January and made the unemployment rate dropped to its lowest level since February 2009.

The Labor Department said large gains in professional and business services, leisure and hospitality, and manufacturing jobs drove the gains, which came in well above most analysts' estimates. The rate in December was 8.5%

Will the drop in the unemployment rate increase the amount of mortgage applications? Does this mean that consumer confidence may go up? There are always questions when it comes to our struggling economy. And hopefully we are on our way to an upward climb. This may just be the start to getting the consumer confidence we need to jump start everything, including the mortgage industry.

Let's hear your thoughts on how this may affect the economy, consumer confidence and the mortgage industry.