NMP - September 2016 - 22

N A M B P E R S P E C T I V E was lobbying on Capitol Hill to promote the initiatives of the association. Lobbying is the most effective grassroots tool we have to share our concerns directly with our elected officials. In conclusion, the Government Affairs Committee of NAMB is proud of their efforts over the past year and looks forward to our continued support and protection of the industry's mortgage professionals. Valerie J. Saunders, CRMS is Government Affairs Committee chair for NAMB-The Association of Mortgage Professionals. She may be reached by phone at (866) 992-0785 or e-mail ValSaun@gmail.com. Is Donating to NAMBPAC Really Worth it? You bet it is! By Mike Anderson, CRMS SEPTEMBER 2016 n National Mortgage Professional Magazine n NationalMortgageProfessional.com 22 Considering politicians spend a great deal of their time raising money ... think about this, if your representatives are spending time raising money and if they receive an unsolicited donation, you now have their ear. Believe me when I tell you that when I need a meeting with my two senators, I get it because I've donated and promoted fundraisers. Donating to NAMBPAC and the NAMB Legislative Action Fund is a wise investment considering trade associations bring competitors together, turning one small voice into a persuasive, collective shout. This can be particularly helpful when independent businesses need to mobilize quickly, such as when facing proposed political initiatives that threaten the industry. For example, signage is regulated at the local level, but sign shops that are members of national signage associations may have access to legal experts who are familiar with nationwide regulation. Their insight and advice is often crucial when proposed local ordinances arise. The year 2017 will be a year of surprises, depending on who is elected in November and appointed to each cabinet. We need to be prepared by building up our PAC and Legislative Action Fund so we can hit the ground running. Know the difference l NAMBPAC: You can donate from your personal credit card or bank account to the NAMBPAC up to $5,000 a year. In addition, individuals can also contribute $1,000 for any candidate running for office. l NAMB Legislative Action Fund: Contributions to NAMB's Legislative Action Fund will provide much-needed additional financial support for NAMB's government affairs efforts. These contributions will not be used to contribute to political campaigns. You can use personal or business funds for these donations. If you truly care about the profession you are in, it should be a part of your business strategy to donate to your trade association's PAC funds because believe me, it does work! Mike Anderson, CRMS of Mortgage Financial Services is incoming PAC chair for NAMB-The Association of Mortgage Professionals. He may be reached by phone at (504) 451-3339 or e-mail MAnderson@MFSUS.com. One Percent Is All It Takes By David Luna, CRMS I read a tremendous amount of information on a daily and weekly basis. I am noticing a trend that may be a wave of things to come and it is normal. The FHA was created back in 1934 to assist in getting people out of cardboard boxes, Hooverville and turn shanty towns into homes. For much of my career, I have seen FHA on the sidelines as conventional loans took center stage. Don't get me wrong ... there was always a place for FHA and it is a great loan. However, only when times get tough have I seen the FHA really shine. Which bring me to the point of this message. The FHA, under the False Claims Act (FCA), has been suing and winning suits against lenders who have been doing a great deal of volume of FHA loans. The FHA has won huge settlements and has made money from these settlements. I am not saying if these were right or wrong, that's for the courts to decide. What I have seen as I travel the country is a shift away from FHA into new and I think very exciting opportunities. I think it started with Quicken Loans and the lawsuit against them under the False Claims Act regarding their FHA loans. Quicken decided to stand firm in that they felt that they had committed no wrongdoing. Where other lenders for whatever reasons decided to pay, Quicken has chosen not to settle. There has been an exciting new loan to come out of all of this The one percent conventional loan. Comparing this to FHA will require a 3.5 percent downpayment. In the past, we knew conventional loans needed at least a three percent downpayment. Here is the new twist. Lenders are moving away from FHA and all the potential litigation by working with first-time homebuyers and only requiring they put one percent down. The remaining two percent is from the lender to make the minimum three percent down. We have all heard that the reason some Millennials are stalled from buying their first home is their student loans and the need to come up with the downpayment. The new options available are allowing these future homeowners the ability to take advantage of historically low interest rates now. The problems of there not being enough properties on the market has been a topic of other news articles. The question of if the PMI companies will insure these low downpayment loans has already been answered. And their answer is YES! Why to some of these lenders feel that need to make these changes may be in the amounts of the huge fines paid. Wells Fargo1 agreed to pay $1.2 billion, Bank of America2 paid $800 million, M&T3 paid $64 million as well as Quicken if it loses its suit. Of course the FHA wants lenders to make FHA loans and the vacuum is being filled by other lenders. Is this the solution the industry needs? Has the FHA and the Department of Housing & Urban Development (HUD) been hijacked by the Department of Justice (DOJ) using the False Claims Act? Do the lawsuits have merit? I don't know we all will need to wait and see, but what I see is a new type of loan out in the industry that make me sit up and take notice. Competition is healthy, innovation is the future. We are dealing with new borrowers that are demanding something different than in the past. As I look back on my 30 years in this industry, I have to agree we don't do things in 2016 like we did in 1980 and that's a good thing. If I could share my crystal ball with you. The next few months are going to be exciting and challenging as the mortgage industry continues to changes. First with the full introduction of trended credit data in September. The new changes to the 1003 coming which will be the first significant changes in 20 years. The new HMDA reporting requirements in 2017 that required the needed changes to the 1003. The commonsense that is still in the industry where FHFA listened to industry's objections and changed their stance on Limited English http://www.NationalMortgageProfessional.com

Table of Contents for the Digital Edition of NMP - September 2016

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