ComplianceTech’s Post

🌟 Exciting times ahead for the credit reporting system! With the recent CFPB proposal to remove medical bills from credit reports, increase privacy protections, and prevent coercive tactics from debt collectors, we might be witnessing a significant shift in how credit scores are calculated and loan approvals are processed. 🌟 The proposed rule aims to **increase credit scores** and **loan approvals** while also **protecting consumers** from unfair financial practices. This could lead to a more equitable and transparent credit reporting system that benefits both lenders and borrowers. 🌟 Some have raised valid concerns about potential implications, such as **increasing bids on starter homes** and **making lending decisions more complex**. However, the overall intention behind the proposal seems to be towards a more inclusive and fair system for all parties involved. 🌟 As we navigate these changes in the financial landscape, it's crucial for lenders and servicers to stay informed and adaptable. Special loan products, such as ARMs and buydowns, are becoming more popular in today's market as homeowners seek financial flexibility amidst evolving interest rates. 🌟 **ICE Mortgage Technology's Professional Services** offer valuable resources to help lenders and brokers navigate this dynamic environment effectively. By staying informed and upskilling your teams, you can ensure a seamless transition to handling special loan products and meeting the changing needs of borrowers. 🌟 Exciting times await in the mortgage industry, with opportunities for innovation and growth amidst changing regulations and market conditions. Stay tuned for further updates and discussions on how these developments could impact the lending landscape!

🏠 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐐𝐌 𝐯𝐬. 𝐍𝐨𝐧-𝐐𝐌 𝐋𝐨𝐚𝐧𝐬: 𝐖𝐡𝐚𝐭 𝐘𝐨𝐮 𝐍𝐞𝐞𝐝 𝐭𝐨 𝐊𝐧𝐨𝐰💡 If you're in the market to buy a home, you've probably heard terms like Qualified Mortgages (QM) and Non-Qualified Mortgages (Non-QM). But what do they really mean, and why should they matter to you? Let’s break it down: 𝐐𝐮𝐚𝐥𝐢𝐟𝐢𝐞𝐝 𝐌𝐨𝐫𝐭𝐠𝐚𝐠𝐞𝐬 (𝐐𝐌): These loans follow clear rules set by regulators like the Consumer Financial Protection Bureau (CFPB). They ensure borrowers can repay by using traditional income verification (e.g., W-2s, tax returns) and limiting risky features like interest-only payments or balloon loans. 𝐍𝐨𝐧-𝐐𝐮𝐚𝐥𝐢𝐟𝐢𝐞𝐝 𝐌𝐨𝐫𝐭𝐠𝐚𝐠𝐞𝐬 (𝐍𝐨𝐧-𝐐𝐌): These loans don’t fit the standard QM guidelines but are designed for borrowers with unique financial situations. Examples include self-employed individuals, real estate investors, or those with alternative income sources. Non-QM loans often use flexible documentation, like bank statements, to verify income. 𝐖𝐡𝐚𝐭’𝐬 𝐭𝐡𝐞 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞? 1️⃣ Documentation: QM loans require traditional paperwork; Non-QM loans offer flexibility. 2️⃣ Borrowers Served: Non-QM loans cater to people outside the traditional lending mold. 3️⃣ Loan Features: Non-QM loans may allow interest-only payments or higher debt-to-income ratios, but borrowers should expect slightly higher interest rates due to added risk. 𝐖𝐡𝐲 𝐈𝐭 𝐌𝐚𝐭𝐭𝐞𝐫𝐬 𝐭𝐨 𝐘𝐨𝐮: Whether you're buying your first home, refinancing, or investing, knowing the difference helps you find the best loan for your needs. The mortgage world isn’t one-size-fits-all, and understanding your options is the first step to making informed decisions. 💡 I’ve been sharing posts about housing finance, from mortgage rates to the federal funds rate. Follow along for clear, actionable insights that demystify the world of finance and add value to your financial journey. #HousingFinance #MortgageTips #FinancialLiteracy #CareerGrowth

Think Banks Lend You Their 𝕆𝕨𝕟 Money? Yes, 𝑻𝒉𝒆𝒊𝒓𝒔 𝑨𝒏𝒅 𝒀𝒐𝒖𝒓𝒔—But There’s More to the Story 🏦➡️📈 Banks use the money supplied by their banking customers (like you!) and other funding sources to lend to borrowers. This creates profit through an interest rate spread— the difference between what they pay depositors and what they charge borrowers. But banks don’t keep your mortgage for long. Here’s where GSEs (Government-Sponsored Enterprises) step in. 🌉 𝐆𝐒𝐄𝐬: 𝐓𝐡𝐞 𝐁𝐫𝐢𝐝𝐠𝐞 𝐁𝐞𝐭𝐰𝐞𝐞𝐧 𝐌𝐚𝐫𝐤𝐞𝐭 GSEs like Fannie Mae and Freddie Mac connect two critical parts of the housing finance system: Primary Market: This is where you get your loan. Banks or credit unions evaluate your application and fund your mortgage using their capital, which comes from reserves, deposits, and other funding sources. Secondary Market: After funding your mortgage, lenders often sell it to GSEs. These GSEs bundle loans into mortgage-backed securities (MBS), guarantee them, and sell them to investors. This process replenishes the lender’s capital, allowing them to issue new loans. 💼𝑻𝒉𝒆 𝑭𝒆𝒅’𝒔 𝑹𝒐𝒍𝒆 𝒊𝒏 𝒕𝒉𝒆 𝑯𝒐𝒖𝒔𝒊𝒏𝒈 𝑴𝒂𝒓𝒌𝒆𝒕 The Federal Reserve plays a big role behind the scenes. By buying MBS during periods of economic uncertainty or as part of monetary policy, the Fed helps stabilize the market, keeping mortgage rates reasonable and the housing system steady. Think of the Fed as the safety net for the safety net! 𝑻𝒂𝒌𝒆𝒂𝒘𝒂𝒚: Banks lend their own money, but GSEs and the secondary market make sure that money is replenished, allowing banks to keep lending and the housing market to keep thriving. The next time you hear about your mortgage being “sold,” you’ll know exactly what’s happening! 🏡✨ Curious to learn more about how GSEs and the secondary market work? Check out this Federal Reserve study. 📚 𝑾𝒉𝒂𝒕’𝒔 𝒀𝒐𝒖𝒓 𝑻𝒂𝒌𝒆? Is this system genius, overly complex, or something in between? Let’s discuss! ⬇️

Exciting News! The GSEs are making some key changes to loan modification eligibility to help borrowers. With mark-to-market LTV ratio revisions, more individuals will qualify and see reduced P&I payments by 20%. - This move could provide much-needed relief to struggling homeowners facing financial hardships. - It shows a commitment to supporting borrowers through challenging times with tangible solutions. I predict this shift will have a positive impact on the housing market, leading to several noteworthy outcomes: 1. Increased loan modification approvals, resulting in fewer foreclosures and more people retaining their homes. 2. Stimulated economic activity as homeowners have more disposable income from lower mortgage payments. Overall, this change reflects a proactive approach to addressing financial difficulties many are facing and may set a positive precedent for future industry practices.

Think Banks Lend You Their 𝕆𝕨𝕟 Money? Yes, 𝑻𝒉𝒆𝒊𝒓𝒔 𝑨𝒏𝒅 𝒀𝒐𝒖𝒓𝒔—But There’s More to the Story 🏦➡️📈 Banks use the money supplied by their banking customers (like you!) and other funding sources to lend to borrowers. This creates profit through an interest rate spread— the difference between what they pay depositors and what they charge borrowers. But banks don’t keep your mortgage for long. Here’s where GSEs (Government-Sponsored Enterprises) step in. 🌉 𝐆𝐒𝐄𝐬: 𝐓𝐡𝐞 𝐁𝐫𝐢𝐝𝐠𝐞 𝐁𝐞𝐭𝐰𝐞𝐞𝐧 𝐌𝐚𝐫𝐤𝐞𝐭 GSEs like Fannie Mae and Freddie Mac connect two critical parts of the housing finance system: Primary Market: This is where you get your loan. Banks or credit unions evaluate your application and fund your mortgage using their capital, which comes from reserves, deposits, and other funding sources. Secondary Market: After funding your mortgage, lenders often sell it to GSEs. These GSEs bundle loans into mortgage-backed securities (MBS), guarantee them, and sell them to investors. This process replenishes the lender’s capital, allowing them to issue new loans. 💼𝑻𝒉𝒆 𝑭𝒆𝒅’𝒔 𝑹𝒐𝒍𝒆 𝒊𝒏 𝒕𝒉𝒆 𝑯𝒐𝒖𝒔𝒊𝒏𝒈 𝑴𝒂𝒓𝒌𝒆𝒕 The Federal Reserve plays a big role behind the scenes. By buying MBS during periods of economic uncertainty or as part of monetary policy, the Fed helps stabilize the market, keeping mortgage rates reasonable and the housing system steady. Think of the Fed as the safety net for the safety net! 𝑻𝒂𝒌𝒆𝒂𝒘𝒂𝒚: Banks lend their own money, but GSEs and the secondary market make sure that money is replenished, allowing banks to keep lending and the housing market to keep thriving. The next time you hear about your mortgage being “sold,” you’ll know exactly what’s happening! 🏡✨ Curious to learn more about how GSEs and the secondary market work? Check out this Federal Reserve study. 📚 𝑾𝒉𝒂𝒕’𝒔 𝒀𝒐𝒖𝒓 𝑻𝒂𝒌𝒆? Is this system genius, overly complex, or something in between? Let’s discuss! ⬇️

🌟 Unlocking Financial Flexibility: The Power of Offset Mortgages🌟 In the complex world of finance, our clients often seek innovative solutions to optimise their wealth management strategies. One such solution is the Offset mortgage. Here’s why these products are particularly beneficial for higher-rate taxpayers: 💰 Interest Savings & Tax Efficiency By offsetting savings against the mortgage balance, clients can significantly reduce their interest payments. Saving interest on the mortgage rather than earning interest on savings means no tax to pay — an attractive proposition for higher-rate taxpayers! 🔄 Flexibility & Liquidity Offset mortgages offer the flexibility to adjust monthly payments based on cash flow needs. Clients can withdraw funds without penalties, ensuring liquidity for investments or unexpected expenses. 📈 Ideal for Variable Income For self-employed individuals or those with fluctuating incomes, Offset mortgages provide a way to manage irregular cash flows effectively. By depositing bonuses or extra earnings into linked savings accounts, clients can minimise mortgage interest while keeping funds accessible. 🔗 Multiple Accounts & Competitive Rates Many lenders allow clients to link multiple savings accounts, maximising potential interest savings. While there are considerations — such as slightly higher rates and the need for substantial savings — Offset mortgages can be a powerful tool in the wealth management arsenal. Are you considering an Offset mortgage? Let’s connect and explore how this strategy may benefit your financial journey! 💬 Call us today on 07384 766029 or email [email protected] No fee is payable for our services in relation to mortgage contracts. We will be paid commission by the lender, the amount of the commission due to be paid is available upon request and will be disclosed via the mortgage illustration. YOUR HOME (OR PROPERTY) MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT. #Finance #WealthManagement #OffsetMortgages #HighNetWorth #FinancialPlanning #TaxEfficiency #Liquidity #HigherRateTaxpayer

📢 Streamline your loan process with smart underwriting!   👉 Perfect for self-employed individuals, small business owners, retirees, or those with unique financial situations, this program simplifies mortgage access by cutting unnecessary documents and focusing on what truly matters.   👉 Qualify in 3 simple steps ✅ CONFIRM LTV ✅ CONFIRM FICO ✅VERIFY RESERVES 𝐆𝐔𝐈𝐃𝐄𝐋𝐈𝐍𝐄𝐒 • Income documentation not required • Income not stated • DTI not calculated • Credit underwritten based on LTV, FICO, and liquidity • Primary residence only • Asset seasoning 30 days • Loan amounts up to $2 million • LTV up to 75% purchase/rate-and- term • LTV up to 70% cash-out • FICO beginning at 680 • No Prepayment Penalty *𝐈𝐧𝐞𝐥𝐢𝐠𝐢𝐛𝐥𝐞 𝐒𝐭𝐚𝐭𝐞𝐬: District of Columbia, Maine, Maryland, Nevada, Pennsylvania, Washington, West Virginia 𝐒𝐭𝐚𝐭𝐞 𝐒𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐑𝐞𝐬𝐭𝐫𝐢𝐜𝐭𝐢𝐨𝐧𝐬: Illinois: Allowed provided payment is based on fully indexed rate   Got questions? Reach out to me today at 📞301.537.8263 for more info! #CommunityMortgageProgram #PRMI #Homeownership

I submitted Consumer Federation of America's comment letter on proposed 2025-2027 #DutytoServe plans yesterday, focused on Fannie Mae, Freddie Mac, and their regulator FHFA. Duty to Serve plans, renewed every three years, are regulatory requirements that help Fannie Mae and Freddie Mac serve underserved markets, notably manufactured housing, affordable housing preservation, and rural housing. We urge the Enterprises to make their proposed plans more ambitious, impactful, and attuned to evolving market conditions. Our three take-aways: 1. DTS benchmarks should be more ambitious -- the Enterprises downwardly adjusted many of their expectations, based on the recent market downturn. However, we have no reason to believe these market conditions will continue into 2027 -- if anything, everyone is already preparing for the next interest rate drop. Moreover, the goal of DTS is to help drive opportunities in underserved markets, not just to follow an expanding or contracting housing market. 2. We encourage the Enterprises to expand their securitization access for small lenders and for more unusual mortgage products. Currently, DTS obligations can only be fulfilled through existing lender relationships and the access these lenders can provide to underserved markets. To truly expand DTS impact, Fannie and Freddie need to expand meaningful securitization access for small institutions, including MDIs and CDFIs. We applaud Freddie Mac for already including an initial proposal for doing so in their current plans! 3. We would like to see more Targeted Equity Investments be part of DTS, a priority that is also articulated by the broader Underserved Mortgage Market (UMMC) Coalition that CFA is a part of. FHFA can play a role here in explicitly authorizing these kinds of investments as part of DTS. These type of investments can be important ancillary tools to reach Duty to Serve goals, for instance through credit enhancement tools. You can find the letter here: https://lnkd.in/ejypNSkq #GSEs #DutytoServe #housing

NY Fed: CRE's 'Extend and Pretend' Strategy could be Ticking Time Bomb In Brief: The NY Fed warns in a 51 page report that banks are stretching out the maturity of distressed commercial real estate (CRE) loans, a tactic known as “extend and pretend,” to delay recognizing losses. This move could be inflating a CRE credit bubble set to burst. Why it matters: Banks are propping up struggling CRE loans instead of confronting losses, leading to: 📉 5% drop in new CRE mortgage originations since early 2022, choking off fresh capital. 🚧 A looming "maturity wall" where 27% of bank CRE loans will come due by the end of 2026, exposing banks to potential sudden losses. Driving the news: The Fed report shows that undercapitalized banks—those with thinner buffers 🏦—are extending maturities on distressed loans, especially in office spaces hit hard by remote work 🏠 trends. This delay crowds out new lending, heightening the risk of sudden, large-scale defaults. By the numbers: 🏢 40% – CRE loans maturing within five years now represent 40% of bank capital, up from 29% in 2020. 🖉 35.1% – Share of office CRE loans classified as “distressed,” driven by rising vacancies and shrinking valuations. 📊 4.8% – Estimated drop in CRE loan originations, reducing liquidity for new projects. The Big Picture: This "extend and pretend" tactic mirrors Japan’s 1990s crisis 🇯🇵, where delayed loss recognition stalled recovery and deepened financial fragility. What to watch: As we move through Q4 2024 into 2025 📅, banks may face forced liquidations if economic conditions tighten further. For CRE investors, it’s time to reassess portfolio risk, prioritize liquidity 💧, and consider the potential for office-to-residential conversions 🏢➡️🏡 as distressed properties seek fresh capital. Our Take: The maturity wall and extend-and-pretend behaviors are setting the stage for a high-stakes reckoning 🔥 in the CRE market. Staying proactive—while other lenders may stay passive—could help you capture opportunities amid a turbulent market recalibration. Here is LINK to the FULL 51 Page Report:  https://lnkd.in/gj9Mdccr

🗣️ Some advice for HOMEOWNERS with Paul Arbitman Chase Private Client Banker Now may the time to put the equity in your home to work. 🏠💸 The average U.S. homeowner has seen their housing wealth increase by approximately 133%, reaching about $304,674 in home equity as of the first quarter of 2024. This figure represents the total wealth tied up in their homes, largely driven by price appreciation and mortgage principal payments. So what does one do with this accumulated wealth? Put it to work! 💪 ✨ Three Most Common Reasons Homeowners Cash Out Their Equity: 1. Home Renovations and Remodeling: Fund home improvements, which can further increase the value of their property. 2. Debt Consolidation: Pay off higher-interest debts, such as credit cards, by consolidating them into a lower-interest home equity loan or line of credit. 3. Investments or Emergency Funds: Invest in other real estate, entrepreneurship, education or create a financial buffer for emergencies. If you’re considering tapping into your equity to meet your financial goals now may be the time with average 30 year fixed rates around under 6.75% as of 8/12/24. 📉 When YOU are ready, let me introduce you to my team 🤝 💰 DM ✨READY✨ or *Text ✨ JACQUELINEP ✨ to 277-777 to learn more & get started! . . . *Message & data rates may apply. Not all mobile carriers supported. NMLS 624075 #ChaseHomeLending #CashoutRefinance #HomeEquityBoost | https://lnkd.in/er_rdyiN Sources: https://lnkd.in/eKaBsjbC | https://lnkd.in/epTvu5fV | https://lnkd.in/epGpdEJ3 | https://lnkd.in/eSid6Rd8 | audio https://lnkd.in/evGH5fbv Anthony Hooks Franklin Daniels Golam Morshed Sarah Roselli