July 2008 Mortgage Licensing Update


States are at long last beginning to complete off their endeavors to administer the lodging issue. There are still numerous proposed dispossession salvage arranges in the state and government councils, however most state permitting bills have been either passed or voted against. There is still some discussion of an elected permitting prerequisite for home loan organizations if the state has not agreed to the national governments least necessities. There is likewise a great deal of talk about FHA Reform, which could influence FHA Licensing, and RESPA and GSE Reform. Be prepared for some significant changes. Their still gives off an impression of being more to happen before the end of this congressional session.

NMLS Transition Deadlines (Nationwide Mortgage Licensing System) Very critical! See move due dates for NMLS moves beginning July 1.

HUD Reminds Lenders of FHA Rules for Dealing with Mortgage Brokers HUD as of late issued a mortgagee letter helping loan specialists to remember different installment and administration limitations when managing non-FHA-endorsed contract representatives for forward home loan. The letter expresses that despite the fact that a borrower may draw in a non FHA-affirmed contract merchant for directing administrations, credit beginning administrations may not be performed by the representative and the FHA-endorsed mortgagee may not repay the dealer for the guiding administrations. Such an installment would abuse RESPA’s restriction on duplicative charges and may even be viewed as an unlawful referral expense. To the degree a borrower gets guiding from a non-FHA-endorsed contract facilitate, the administrations must constitute “important advising” and the expenses must be paid from the borrower’s own accessible resources and unveiled on the HUD-1. What’s more, a duplicate of the administration contract must be incorporated into the advance document submitted for protection support. See Mortgagee Letter 08-17.

Maryland New Surety Bond and Net Worth Requirements

There are two new procurements of law representing Maryland contract loan specialist (“Licensees”) that became effective June 1, 2008. The first is a revision to Md. Code Ann., Fin. Inst. (“FI”) § 11-508 which builds the measure of the surety bond, letter of credit or trust account required to be kept up by Licensees. The second is another base total assets prerequisite that must be kept up by Licensees which is classified at FI § 11-508.1.

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