By: MPA - Steve Randall - 12 Jan 2016
Cash sales at highest level since 2013 The percentage of cash sales of US homes has risen to the highest level since 2013 according to RealtyTrac data. In November 2015 38.1 per cent of sales of single-family homes and condos were cash transactions, up from 29.8 per cent in October and 30.9 per cent in November 2014. In March 2013 the proportion of cash sales was 38.8 per cent but the increase in November was the first for 29 months.
“The jump in cash sales is likely a knee-jerk reaction to the new documentation and disclosure rules for mortgages that took effect in October, making it even more difficult for buyers using financing to compete with cash buyers in the already competitive housing market,” said Daren Blomquist, vice president at RealtyTrac. “Global economic instability may also be driving more foreign cash buyers back to the relative safety of U.S. real estate.”
San Francisco saw the largest jump in cash buyers (89 per cent) followed by San Jose, CA and Columbus, OH. Miami had the highest share of cash sales (54.8 per cent) followed by New Orleans and Oklahoma City.
Real estate entrepreneur selling Newport Coast mansion
Commercial property entrepreneur Manny Khoshbin has listed his home on California’s Newport Coast for $9.975 million. The OC Register reports that Khosbin, whose company specializes in buys and repositions commercial property in distressed markets, is selling the 10,365 square foot home with four bedrooms, massage room and poker parlor at a reduced asking price having previously sought $11 million and then $10.7 million. The listing agents are Payman Paul Daftarian and Lili Daftarian of KR Homes.
Denver lawmakers to consider construction-defect law
With the new legislative session starting Wednesday Denver lawmakers will be asked to consider introducing legislation to help homeowners claim against builders for defects in their properties. While some municipalities in Colorado have acted to stop homeowners from suing builders, in a bid to persuade developers to build more condos, the Denver Post reports that the measures have not had the desired effect.
Proponents of restricting homeowners’ rights to sue believe that strong statewide legislation could bring developers back but opponents want to see changes which would mean arbitration being the preferred option rather than litigation. A bill proposing that change was rejected last year but will be tabled again in the new session.
Tuesday, January 12, 2016
Tuesday, January 5, 2016
Complexity of TRID Brought Many Unforeseen Issues in the 11th Hour
By: DSNEWS January 5, 2016
Jonathan Kunkle is president of GuardianDocs, the document services division of Denver-based LenderLive Network Inc., an end-to-end residential mortgage services provider supporting financial institutions of all sizes and other related entities with origination, servicing and loan purchase operations. Kunkle has more than 23 years of experience in senior management roles, with 13 years in the mortgage industry. He joined LenderLive as vice president of sales in 2008 when the company purchased Guardian Mortgage Documents. There, he was responsible for all of the company’s sales initiatives. Kunkle recently spoke with DS News about the implementation of TRID with his company, both what has gone well and the challenges, and what the future holds for TRID compliance.
Has the TRID rollout been smooth overall for LenderLive or has it been a challenge?
There are many components of the TRID implementation that went well. For example, when the MBA reported a drop in applications during the first few weeks of October, as TRID took effect, LenderLive’s fulfillment clients actually increased their application flow by more than 10 percent.
Having said that, there have been some unforeseen issues for us, and the rest of the industry, in the 11th hour. These weren’t a result of procrastination, but rather the complexity of the rule, the challenges in testing every possible scenario, and working with all of our partners to ensure their success. I think we saw it all in that 11th hour and, despite what Richard Cordray proclaimed, it was a struggle to be compliant day one for all lenders and the service providers assisting them.
What are some of the major TRID compliance issues you have experienced or heard about from clients?.
Many challenges we saw were related to calculations within the Loan Estimate/Closing Disclosure (LE/CD). Even with an exhaustive testing suite, we still had questions as TRID was going live on unique loan scenarios that challenged our calculation engine. As an example, a seldom used but very complicated calculation is the application of a borrower (or third-party) buy down and how that buy down impacts the TOP, TIP, and worst case payment adjustments and how each is disclosed.
On the client side, we’ve heard of a few challenges around fees changing within the 10% tolerance and how to alert the borrower of that without issuing a new LE. Moreover, as these changes aggregate throughout the course of the origination process, our clients have experienced a new challenge in maintaining a source of truth, passing their compliance audits, and ensuring that the last LE has encapsulated all of the accurate costs.
Cordray’s recent response to the Mortgage Bankers Association’s David Stevens indicating that a ‘good faith effort” to comply with TRID will lead to “corrective and diagnostic, rather than punitive” action by the CFPB is very good news for the industry trying to address these compliance issues. I think the CFPB has recognized that, in order to comply with the Know Before You Owe legislation, it takes an orchestrated effort between people, including the borrower, the seller, the lender, and the settlement company, as well as the systems, including the doc prep tools and loan origination system.
Do you see TRID compliance becoming less or more of an issue in 2016, and why?
With practice, everything becomes more second nature. I also think with TRID we’ll see more loan origination systems adopt the MISMO 3.3 standard, which will help eliminate data entry within a doc provider’s website. Today, this practice of re-keying figures into yet another application just to generate docs is ripe with TRID-related compliance concerns. With MISMO 3.3, the LOS can remain the source of truth, as all of the data will reside therein and not in another system.
Business loans and non-consumer loans are exempt from the TRID regulations. Private Money Lenders specialize in this type of loans.
Jonathan Kunkle is president of GuardianDocs, the document services division of Denver-based LenderLive Network Inc., an end-to-end residential mortgage services provider supporting financial institutions of all sizes and other related entities with origination, servicing and loan purchase operations. Kunkle has more than 23 years of experience in senior management roles, with 13 years in the mortgage industry. He joined LenderLive as vice president of sales in 2008 when the company purchased Guardian Mortgage Documents. There, he was responsible for all of the company’s sales initiatives. Kunkle recently spoke with DS News about the implementation of TRID with his company, both what has gone well and the challenges, and what the future holds for TRID compliance.
Has the TRID rollout been smooth overall for LenderLive or has it been a challenge?
There are many components of the TRID implementation that went well. For example, when the MBA reported a drop in applications during the first few weeks of October, as TRID took effect, LenderLive’s fulfillment clients actually increased their application flow by more than 10 percent.
Having said that, there have been some unforeseen issues for us, and the rest of the industry, in the 11th hour. These weren’t a result of procrastination, but rather the complexity of the rule, the challenges in testing every possible scenario, and working with all of our partners to ensure their success. I think we saw it all in that 11th hour and, despite what Richard Cordray proclaimed, it was a struggle to be compliant day one for all lenders and the service providers assisting them.
What are some of the major TRID compliance issues you have experienced or heard about from clients?.
Many challenges we saw were related to calculations within the Loan Estimate/Closing Disclosure (LE/CD). Even with an exhaustive testing suite, we still had questions as TRID was going live on unique loan scenarios that challenged our calculation engine. As an example, a seldom used but very complicated calculation is the application of a borrower (or third-party) buy down and how that buy down impacts the TOP, TIP, and worst case payment adjustments and how each is disclosed.
On the client side, we’ve heard of a few challenges around fees changing within the 10% tolerance and how to alert the borrower of that without issuing a new LE. Moreover, as these changes aggregate throughout the course of the origination process, our clients have experienced a new challenge in maintaining a source of truth, passing their compliance audits, and ensuring that the last LE has encapsulated all of the accurate costs.
Cordray’s recent response to the Mortgage Bankers Association’s David Stevens indicating that a ‘good faith effort” to comply with TRID will lead to “corrective and diagnostic, rather than punitive” action by the CFPB is very good news for the industry trying to address these compliance issues. I think the CFPB has recognized that, in order to comply with the Know Before You Owe legislation, it takes an orchestrated effort between people, including the borrower, the seller, the lender, and the settlement company, as well as the systems, including the doc prep tools and loan origination system.
Do you see TRID compliance becoming less or more of an issue in 2016, and why?
With practice, everything becomes more second nature. I also think with TRID we’ll see more loan origination systems adopt the MISMO 3.3 standard, which will help eliminate data entry within a doc provider’s website. Today, this practice of re-keying figures into yet another application just to generate docs is ripe with TRID-related compliance concerns. With MISMO 3.3, the LOS can remain the source of truth, as all of the data will reside therein and not in another system.
Business loans and non-consumer loans are exempt from the TRID regulations. Private Money Lenders specialize in this type of loans.
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