Industry News Blog

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) is finally bringing its new rules current.  Mortgage loan originators are required to be fingerprinted and be listed on a central registry. 

The SAFE Act, which was initiated by the Fed, Comptroller of the Currency, Federal Deposit Insurance Corp, Office of Thrift Supervision, Farm Credit Administration and National Credit Union Administration, specifies that mortgage brokers must register with...

A new report Home Insecurity: How Widespread Appraisal Fraud Puts Homeowners at Risk points out that an all-time high debt-to-income ratio for mortgage holders has been hit.  The Demos report written by David Callahan, takes a look at the precarious market built on shaky ground.

Read the story here or check out the report here.

The financial regulatory reform bill signed yesterday includes reforms on the appraisal front.  Appraisal Institute President Leslie Sellers said the bill is “good news for consumers because they should see more reliable home appraisals.”  Sellers said it encourages the use of experienced real estate appraisers and offers transparency in the payment process to appraisers versus payments to AMCs.

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New requirements handed out by Fannie Mae means more work for appraisers and lenders. Lenders must ensure that appraisers are competent, having the “requisite knowledge,” experience and right data to perform the appraisal.  This reminds lenders that they are ultimately responsible for hiring qualified appraisers.

Appraisers are going to be required to give additional documentation for certain issues, more pictures and explanations for comps that are short sales or...