Learn the ten prohibited lender actions which protect the borrower after origination of a high-cost (Section 32) consumer-purpose mortgage.
Section 32 disbursements, servicing and modification restrictions
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Creating Carryback Financing
Secure the most efficient structuring for a seller’s extension of credit to a real estate buyer, every time. Stay current on the latest news, videos, forms, and updates for Creating Carryback Financing.
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The points and fees test for Section 32
Learn when a consumer-purpose mortgage falls under Section 32 limitations and disclosure rules.
Form-of-the-Week: Further Encumbrance Consent, and Note Enforcement Provisions — Forms 410 and 418-5
These forms are used by a prospective junior lender or carryback seller when the real estate is encumbered by an existing first mortgage containing a due-on clause, to obtain consent from the lender holding the mortgage to further encumber the property with a second mortgage, and by a loan broker or escrow officer when originating a mortgage with the lender or carryback seller, to include a guarantee, exculpatory or governing law provision in the promissory note.
Paying appraisers
Fee appraisers are to be compensated by mortgage lenders and their agents at a reasonable rate – but there are exceptions that effectively gut this rule.
Mortgage delinquencies inch higher, equity shields homeowners — for now
Even as mortgage delinquencies rise, high levels of equity continue to shield homeowners from foreclosure.
The APR Coverage Test: Part 2
Part 2 of this video series provides examples for how MLOs can determine whether a transaction is subject to Section 32 compliance.
Form-of-the-Week: Deed of Trust & Assignment of Rents, and All-Inclusive Trust Deed Addendums — Forms 450, 442 and 443
An agent or escrow officer uses these forms when a seller of property carries back an all-inclusive note and trust deed (AITD) evidencing a principal debt which includes the balance owed on an existing mortgage and a payoff demand.
Using the yield spread to forecast recessions and recoveries
The yield spread indicates the likelihood of a recession or recovery one year forward.
Mortgage Concepts: Timelines for lender RESPA disclosures
This video covers delivery of the Loan Estimate and Closing Disclosure.
Errata & Updates
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