Unbelievable New HMDA Requirements Coming

10/23/2015
Comments
  • You guys are truly out of touch. ..or have been listening to the TBTF banks too much.

    Prior to Sen. Warren’s efforts servicers lacked any oversight whatsoever.

    As far as origination goes – I’m grateful that I’m no longer embarrassed by the rot that existed prior.

    Tight underwriting unfortunately is needed as unfettered Wall St. product placement got us where we are today. If lobbyists are successful in buying TBTF leaning politicians then the industry has to pay the price. Don’t like it? Get money out of politics.

    New HMDA requirements…have you guys ever completed a HMDA report? Those extra fields should be easy to add to a
    query.

    Please, less politics and more substance.

    Mortgage Broker October 23, 2015 1:08 am Reply
    • I don’t agree with you Tim. Just don’t. And yes of course we’ve done HMDA. It’s not a matter of how many more boxes are required to be filled in, it’s the nature of those boxes. Just wait until a discrimination issue comes up because a lender “guessed” incorrectly. Thanks for the comment man! Good dialog!

      admin October 23, 2015 6:00 am Reply
  • I usually find your show fun and educational but today not so much. How can you say the banking industry is all about consumer understanding? They are all about making money!!
    The CFPB is put in place to protect consumers from the banking industry’s failure of transparency as well as their past shell game of selling worthless mortgage backed securities and being bailed out by our tax payer dollars!! They should be held financially and legally accountable for their past greedy actions and severely policed moving forward!
    The more politicians involved the slower and lighter their consequences will be. That sounds like more of the same. Banking lobbyists paying for the freedom to do whatever they want!!
    I support heavily policing the banking industry. They are in my opinion, the biggest reason my career and income in real estate has suffered so much!

    Jill October 23, 2015 6:14 am Reply
  • And,where are we getting all this information on a phone pre-approval where we get the minimum amount of information to check credit and turn around and decline them? It would be great if they at least asked us how it all works before they come up with this stuff!

    Michele October 23, 2015 6:21 am Reply
  • In California the 1003 has required all of that information to be completed for years. There’s also a box to check stating the borrower does not wish to furnish this information regarding ethnicity. I’ve had borrowers who marked every box and white south African borrowers who marks African-American..Having completed a class on TRID and going over the new disclosures there are glaring discrepancies in how the costs are presented . It’s almost hilarious … Almost . It seems loan officers and mortgage bankers just have to keep jumping through more and more hoops to satisfy the governments guidelines for “transparent” lending.

    Mindy October 23, 2015 7:08 am Reply
  • Two things, regardless of which side you are on it should not matter what ethnicity you are. I don’t care if you are polka dot, if you are a legal U.S. citizen you should be able to purchase property here if you qualify. I personally do not think you should be able to own property here if you are not a citizen. I don’t think banks have the consumer’s best interest in mind, I think they have their bottom line in mind (as they should). Afterall, that is how you stay in business (not talking about bailouts here). CONSUMERS should be responsible for their own business. I’m certainly not willing to hand that over to anyone else.
    There is a need for rules, regs, and guidelines, BUT we seem to have a power struggle between parties. Ethnicity should not ever be a part of the equasion.
    I just have to throw this in…if the banks were for the best interest of the consumer, they would have ever done no doc loans. I happen to be one of the people that got one of those loans, fortunately for me and the bank mine turned out okay. Here was the circumstances under which they approved me. Recently widowed (4 months), just lost my job, absolutely zero income. The qualifying factors were, 790 credit score, cash for down payment/closing and I could sign my name. I don’t think the bank or myself had my best interest in mind. I was still just grieving and had no sense of what I was doing.

    Marlene October 23, 2015 7:13 am Reply
    • Marlene, the reason for “ethnicity” on the 1003 is a HMDA requirement. This has nothing to do with the Bank lending money to the Borrower — the Banks did not implement this requirement. This ethnicity question, among others, is for the government policing agencies involved to make sure that the banks are lending to an appropriate range of people based on the local population and they are not lending to just one ethnic group or predominantly discriminating against groups of people. “The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and was implemented by the Federal Reserve Board’s Regulation C. On July 21, 2011, the rule-writing authority of Regulation C was transferred to the Consumer Financial Protection Bureau (CFPB). Regulation C, requires lending institutions to report public loan data.” To get the facts, go to: https://www.ffiec.gov/hmda/ I hope this helps you understand why gathering this information may help stop discrimination! I explain this to my Borrowers and they appreciate knowing why anyone wants to know such intimate details…

      Leslie October 26, 2015 8:04 am Reply
    • Freaking rubber band… braces… they come off next month thank God! ~Frank

      admin October 23, 2015 10:08 am Reply
  • Frank: “the banking industry is ALL about, and I mean ALL about, helping consumers understanding the risk.”

    Is that really what the banking industry is ALL about? the banking industry is just there to help people understand risk?

    no more money needs to be made by the banking industry. according to Frank, they are just all about helping people understand. poor, poor banking industry.

    Mortgage 101 October 23, 2015 12:21 pm Reply
  • The scars & pain are still too fresh! The banks are not our friends. Unfortunately, the PEOPLE we deal with on a daily basis are not THE Banks! Those are the powers that be. The whole debacle of the short sale, HARP, etc. worked for those who applied “when there was a herd of white elephants going east on Thursday.” We have already forgotten the robo signing $23 Billion settlement. Yes, all this stinks, however, because there are so many scammers, shysters, and fraudulent planners, this is the best we as a nation can do right now. Stay with it, it WILL change. Everything seems to make a 360º turnaround, especially when it is forgotten. I think the Glass-Steagall Legislation should be considered again. The issue is much bigger than the consumer. Laws are made because some people cannot “play by the rules” or use common sense. Stay the course and keep the scammers, shysters, and frauds out! This mortgage fraud/ foreclosure situation must not be repeated….of course it did help with the employment when all these banks had to hire all those clerical people to “delay, delay” the short sale decisions. What a nightmare for all of us!

    Tina Murphy October 23, 2015 1:00 pm Reply
  • Wow, great video guys ! Well so much for getting into flipping houses…what do they consider “poor” these days anyway with all the requirements, many more will fall into that category I guess…No wonder the banking system & our country is in trouble with policy “czars” like warren…

    Carolyn Bormann October 23, 2015 2:42 pm Reply
  • Single, UNELECTED director. Much like the unelected, completely unaccountable, Fed. Victory for someone I’m sure.

    Sean D October 26, 2015 10:19 am Reply

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