State Banking / Finance Regulators

[Colleague]

Well at most private schools Dan Mohr Real Estate School, and Triangle Appraisal & Real Estate School USPAP is covered in R-3. So they usually run R-1, R-2, & R-3, and G-1. I use to work for a Real Estate School but it has been awhile so I could be wrong. At any rate we agree that appraiser are held to higher standards than mortgage brokers.

 

[Bob Ipock]

USPAP became a stand alone course when the AQB began certifying instuructors to teach both USPAP courses. That was in February 2002.

There are currently 25 AQB Certified USPAP Instructors (residing in) North Carolina.

 

[Bob Ipock]

http://www.nccob.org/mlenforcements/06_039.pdf




http://www.nccob.org/mlenforcements/06_001.pdf

 

[Greg Bell]

Heres some bad news , can't refi if you can't qualify...more forclosures are on the way..

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Updated: New York, Feb 27 11:10London, Feb 27 16:10Tokyo, Feb 28 01:10
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Freddie Mac to Tighten Subprime Mortgage Standards (Update2)

By Jody Shenn

Feb. 27 (Bloomberg) -- Freddie Mac, the second-largest provider of funds for U.S. home loans, will stop buying subprime mortgages that have a ``high likelihood'' of borrowers not meeting their monthly payments.

The government-chartered company will require lenders to assess borrowers' ability to pay back subprime adjustable-rate mortgages by looking at more than just their capacity to make initial payments before initial ``teaser'' rates rise, the McLean, Virginia-based company said today in a statement. Lawmakers are pushing regulators to require such underwriting amid rising delinquencies and defaults on subprime home loans.

Freddie Mac will limit the use of low-documentation underwriting for the mortgages to help ensure that borrowers have the income necessary to afford their homes. It will also recommend that lenders collect escrow accounts for borrowers' taxes and insurance payments.

``They're saying `While we continue to want to be involved in this asset class, we want to do it in a way in which borrowers can continue to be in their homes,'' said Frederick Cannon at Keefe, Bruyette & Woods Inc. in San Francisco.

Congress created Freddie Mac and the larger, Washington- based Fannie Mae to expand homeownership by increasing mortgage financing. The companies own or guarantee 40 percent of the about $10.5 trillion residential U.S. mortgage market.

Top-Rated Securities

Shares of Freddie Mac fell 11 cents to $64.82 as of 9:43 a.m. in New York Stock Exchange composite trading. They are diwn 4.61 percent this year.

Freddie Mac mainly invests in subprime mortgages by buying top-rated securities backed by the loans, Cannon said. Together, Freddie Mac and Fannie Mae have bought about 25 percent of such AAA rated securities created in recent years, he said.

Subprime mortgages are given to people with poor or limited credit records or high debt burdens and typically have rates at least two or three percentage points above safer prime loans. They made up about a fifth of all new mortgages last year, according to the Washington-based Mortgage Bankers Association.

About 2 percent subprime mortgages made last year were more then 60 days late after five months, nearly twice the rate for ones made in 2005, and the worst rate in at least seven years, according to a Feb. 22 report from Barclays Capital.

At least 20 subprime lenders in the U.S. have closed, scaled back or sold themselves in the past five months.

Bond investor concerns about low-rated subprime bonds have surged. Yield premiums over benchmarks on such bonds with the lowest investment-grade rating rose 1.75 percentage points in the two weeks ended Feb. 23 to 4.75 percentage points, the highest in more than two years, according to RBS Greenwich Capital.

About 34 percent of Freddie Mac's portfolio on Jan. 31 consisted of mortgage bonds not guaranteed by itself, Fannie Mae or government agency Ginnie Mae. The company has said most of the bonds are AAA rated subprime mortgage securities.

 

[Otis Key]

Heres some bad news , can't refi if you can't qualify...more forclosures are on the way..

I don't see it as bad news. In fact, I see it as long overdue good news. That means to me that they are going to finally stop taking in these mortgages on people who are already way over extended and the refi was just the last straw on the camel's back. It might also cut out on some of the predatory lending practices for that "credit class" as well as, hopefull, stop some of the MB & LO pushing for a higher value, because it's not going to matter anyway - they can't make the loan.

 

[Evincere]

I don't see it as bad news. In fact, I see it as long overdue good news. That means to me that they are going to finally stop taking in these mortgages on people who are already way over extended and the refi was just the last straw on the camel's back. It might also cut out on some of the predatory lending practices for that "credit class" as well as, hopefull, stop some of the MB & LO pushing for a higher value, because it's not going to matter anyway - they can't make the loan.

Yesterday, a rare breed loan rep from a portfolio lender said to me "we have a lot of respect for Appraisers lately". They are the rare breed in that they refused appraisals they believed to be inflated.