Mortgage Industry Gong Show: Hasty Rule-Making Creates More Confusion

Plain and Simple: if you weren’t already aware, the CFPB is looking to combine TIL and RESPA disclosures into one document. Home loan disclosures are being redesigned, again! READ MORE

Interesting timing for such a major change isn’t it. A necessary evil, but still interesting timing. These updates are moving forward regardless of the fact that no real clarity has been offered on the future of the housing finance mechanism (GSEs). And even more closely related to the disclosure updates themselves, the industry is attempting to reform its entire compensation model right now. How can we expect lenders to interpret and implement new originator compensation models without knowing how the new consumer disclosure package will look? How can we expect lenders to keep the mortgage market competitive if we don’t have a clear indication of how loans will be securitized. I can go on and on here…HOW ABOUT THE RISK RETENTION REGS? WHAT IS CONSIDERED A QUALIFIED LOAN?

I don’t have a problem with the abundance of reforms that have been outlined for the mortgage industry, but maybe we should approach one major reform at a time to ensure we get the job done right.  Compliance folks can only be spread out so far before their oversight wears thin. 

The final compensation rules are effective April 1,

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Continuing Ed for Title Agents

H.R. 6460: To prohibit Fannie Mae, Freddie Mac, and Ginnie Mae from owning or guaranteeing any mortgage that… (GovTrack.us)

To prohibit Fannie Mae, Freddie Mac, and Ginnie Mae from owning or guaranteeing any mortgage that is assigned to the Mortgage Electronic Registration Systems or for which MERS is the mortgagee of record.

Overview

Cosponsors:

Text:
Full Text
Status:
Occurred: Introduced Nov 30, 2010
Occurred: Referred to Committee View Committee Assignments
Not Yet Occurred: Reported by Committee
Not Yet Occurred: House Vote
Not Yet Occurred: Senate Vote
Not Yet Occurred: Signed by President
This bill is in the first step in the legislative process. Introduced bills and resolutions first go to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills and resolutions never make it out of committee. [Last Updated: Dec 2, 2010 6:38AM]
Last Action:
Nov 30, 2010: Referred to the House Committee on Financial Services.
Related:
See the Related Legislation page for other bills related to this one and a list of subject terms that have been applied to this bill. Sometimes the text of one bill or resolution is incorporated into another, and in those cases the original bill or resolution, as it would appear here, would seem to be abandoned.
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The interesting part of this bill for us is section 3:
SEC. 3. HUD STUDY.

(a) Study- The Secretary of Housing and Urban Development, in consultation with the Comptroller General of the United States, shall conduct a study to analyze and determine–

(1) the impacts of the lack of electronic records and uniform standards found in local land title recordation systems currently used in the various States;

(2) any progress States have made in developing electronic land title recordation systems for their localities that contain uniform standards, and any findings and conclusions and best practices resulting from such development;

(3) the current oversight role of the Federal Government in the transfer and recordation of land titles;

(4) opportunities, and the feasibility of such opportunities, that may be present to leverage progress made by some States and localities to create an electronic land title recordation system, including through–

(A) a system that would maintain all previous records of the land-property without invalidating, interfering with, or preempting State real property law governing the transfer and perfection of land title; and

(B) further actions by the States or by the Federal Government, or coordinated actions of both; and

(5) the feasibility of creating a Federal land title recordation system for property transfers that would maintain all previous records of the land-property without invalidating, interfering with, or preempting State real property law governing the transfer and perfection of land title.

(b) Report- Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act, the Secretary of Housing and Urban Development, in consultation with the Comptroller General of the United States, shall submit to the Congress a report on the results and findings of the study conducted under this section.

If the Bill gets out of committee, it will be one to watch.

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Continuing Ed for Title Agents

FEDERAL LAND TITLE SYSTEM?

CHARLENE PERRY’s Blog ::

We are all familier with the current land title system wherein the individual States and their respective County clerks are responsible for “keeping the books” on the transfer of real estate in their respective jurisdictions.  

A recently introduced bill will require that HUD study a Federal Land Title System (HR 6460) sponsored by Mary Kaptur (D-OH) which would, if passed, pave the way for a National Torrens System.  The Torrens System is not commonly used in the United States but is used in may parts of Europe.  

What is the difference between the current land title system and the Torrens System? and Why do I Care?

The main difference between a common law title and a Torrens title is that a member of the general community, acting in good faith, can rely on the information on the land register as to the rights and interests of parties recorded there, and act on the basis of that information. A prospective purchaser, for example, is not required to look beyond that record. He or she does not need even to examine the Certificate of Title, the register information being paramount. This contrasts with a common-law title, which is based on the principle that a vendor cannot transfer to a purchaser a greater interest than he or she owns. As with a chain, the seller’s title is as good as “the weakest link” of the chain of title. Accordingly, if a vendor’s common-law title is defective in any way, so would be the purchaser’s title. Hence, it is incumbent on the purchaser to ensure that the vendor’s title is beyond question. This may involve both inquiries and an examination of the “chain of title.”

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Continuing Ed for Title Agents