Johnny Mosley Articles

Consumer Financial Protection Bureau

Patricia Boyd — Tue, 06 Dec 2011 17:50:00 GMT

The central mission of the Consumer Financial Protection Bureau (CFPB) is to make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.

The consumer bureau is working to:

Educate

An informed consumer is the first line of defense against abusive practices.
Enforce

Like a neighborhood cop on the beat, the CFPB supervises banks, credit unions, and other financial companies, and we will enforce Federal consumer financial laws.
Study

The consumer bureau gathers and analyzes available information to better understand consumers, financial services providers, and consumer financial markets.

Above all, this means ensuring that consumers get the information they need to make the financial decisions they believe are best for themselves and their families—that prices are clear up front, that risks are visible, and that nothing is buried in fine print. In a market that works, consumers should be able to make direct comparisons among products and no provider should be able to build, or feel pressure to build, a business model around unfair, deceptive, or abusive practices.

http://www.consumerfinance.gov/the-bureau/

Is Your Agent a certified Real Finance Advocate (cRFA)?

Patricia Boyd — Wed, 11 May 2011 11:55:00 GMT

Is Your Agent a certified Real Finance Advocate (cRFA) Professional?

October 2011

A new certification program focused on consumer advocacy is sweeping the country.

Real estate professionals and honest, ethical loan originators are stepping up to stand guard for Consumers to help protect the American Dream of Home Ownership through advanced training in financing.

Participants that graduate the seminar, "A Consumer Advocate Approach to Real Estate & Mortgages", have the option to take an exam to become a certified Real Finance Advocate (cRFA). The cRFA certification signifies advanced training in financing and a professional commitment to stand guard for the consumer against predatory practices.

Participants will attend a comprehensive training program that will allow them to become part of a Real Finance Advocate Power Team. The power of the team lies in the fact that the members hold each other accountable for exceptional service and for educating consumers so they can make informed decisions before entering into financial transactions. The program gives participants the knowledge and tools they need to stand guard for Consumers to help protect the American Dream of Home Ownership.

Topics Include:

· How to build an accountable Real Finance Advocate Power Team

· How to help Consumers avoid becoming victims of predatory practices

· How financing impacts the borrowers ability to create wealth

· Differences in FHA, VA & Conventional loans

· How to match listings with financing options that will help the home sell faster

· How to stay updated to changes in financing that affect buyers and sellers

· How to use FREE resources for finding and financing foreclosures

· How to help borrowers with credit scores below 640

· How to provide tools and education to consumers so they can make informed decisions

Now more than ever Consumers are looking for real estate professionals that can help them get back on track financially. Working with a Real Finance Advocate Power Team will give Consumers access to a team of professionals that work together to give Consumers a clear path to home ownership. That includes helping them reach their financial goals whether they have perfect credit or even if they have experienced some difficulty due to the economy.

The goal is to create long-term relationships that provide a safe haven for Consumers. This approach will help real estate & mortgage professionals build repeat and referral business and help consumers avoid making costly mistakes that could lead to foreclosure.

“A Consumer Advocate Approach to Real Estate & Mortgages” is offered as a Live Seminar by Real Finance Solutions or can be taken as an on-demand course on REALTOR® University.

To Request your FREE eBook, "How to Build an Accountable Real Finance Advocate Power Team" or to Find a cRFA Professional visit www.cRFApro.com.

FHA Has Good News for Investors & Real Estate Professionals!

Patricia Boyd — Sat, 29 Jan 2011 12:23:00 GMT

FHA Has Good news for Real Esate Investors & Real Estate Professionals!

FHA EXTENDS 'ANTI-FLIPPING WAIVER' TO HELP STABLIZE HOUSING MARKET:

Measure continues effort to boost home values and accelerate resale of vacant properties:

In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Federal Housing Administration (FHA) Commissioner David H. Stevens today extended FHA's temporary waiver of the agency's 'anti-flipping rule.' The extension announced today is intended to accelerate the resale of foreclosed upon homes in neighborhoods struggling to overcome possible property abandonment and blight.

With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days. Early last year, FHA temporarily waived this regulation through January 31, 2011. FHA today posted a notice extending this waiver through the remainder of 2011. This action will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

"As I noted when we first announced this policy change early last year, because of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Stevens. "Today I can report that this policy change has been effective. Since the original waiver went into effect on last February, FHA has insured more than 21,000 mortgages worth over $3.6 billion on properties resold within 90 days of acquisition."

FHA research finds that in today's market, acquiring, rehabilitating and reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

Stevens added, "Because of past restrictions, FHA borrowers have often been shut out from buying affordable properties. This action enables our borrowers, especially first-time buyers, to take advantage of this opportunity and buy a home that has recently been rehabilitated. It will also help to move more foreclosed properties off the market and reduce the number of vacant homes in neighborhoods throughout this country."

The extension announced today is effective through December 31, 2011, unless otherwise extended or withdrawn by FHA. All other terms of the waiver will remain the same, and HUD continues to invite public comment on it. The waiver contains strict conditions and guidelines to assure that predatory practices are not allowed.

To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver continues to be limited to those sales meeting the following general conditions:
• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

• In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Read the waiver: http://www.hud.gov/offices/hsg/sfh/currentwaiver.pdf

This article is a great marketing tool so be sure to share with your customers that may benefit from it.

Patricia Boyd, cRFA
certified Real Finance Advocate

cRFA Pledge to Consumers

Patricia Boyd — Sun, 17 Oct 2010 10:32:00 GMT

Certified Real Finance Advocate Pledge

I, , promise to apply the knowledge and tools I received from the REAL FINANCE seminar to protect consumers from predatory lending and excessive fees. I pledge to provide consumers with the information and tools they need to make educated decisions before entering into financial transactions. I promise to hold my REAL FINANCE ADVOCATE POWER TEAM accountable for delivering exceptional service to all of my clients.

As a certified Real Finance Advocate (cRFA) I believe that Integrity is of extreme importance in every real estate transaction.

_________________

Certified Real Finance Advocate (cRFA)

What is a RFS Consultant?

Patricia Boyd — Sun, 17 Oct 2010 10:26:00 GMT

What is a RFS Consultant?

A RFS Consultant has completed advanced training in financing and has pledged to work as part of a Real Finance Advocate Power Team to help protect Consumers from predatory business practices. We provide FREE consulting services to Consumers.

Our objective is to provide you with the information and tools needed to make educated decisions before entering into financial transactions. We believe an educated Consumer is less likely to become a victim of predatory business practices.

RFS Consultants do not make decisions for you. Our role is to provide you with information you need so that you can make wise financial decisions. This includes understanding the importance of working with an honest, ethical REAL FINANCE ADVOCATE POWER TEAM that will hold each other accountable for delivering exceptional customer service. To request your FREE eBook, "How to Build an Accountable Real Finance Adovate Power Team", visit www.RealFinanceSolutions.com.

Our system also provides an approved list of Affiliates that offer products to help you reach your financial goals. We hold Affiliates accountable for delivering exceptional service to Consumers they work with through the REAL FINANCE SOLUTIONS System.

All RFS Consultants must complete a certification course called, “A Consumer Advocate Approach to Real Estate & Mortgages”. This gives the Consultant a better understanding of how predatory business practices affect Consumers, common targets of predatory lending and how to work with a REAL FINANCE ADVOCATE POWER TEAM to avoid predatory business practices, as well as, a comprehensive overview of mortgage loan products and credit scoring.

Your RFS Consultant will ask you a series of questions designed to help them understand your financial needs. Then they will introduce you to the tools on their website that will help you determine what financial products may help you reach your goals.

For instance, if you would like to improve your credit score you can go to our Resources page and click on Credit Scoring to learn how credit impacts rates and fees you may be offered by a lender. Many times your credit can even affect job opportunities that are availalbe to you. We have tools available on the system that can help you improve your score on your own or with the help of an Approved Affilate on our system. We also recommend that you meet with a financial advisor that will help you consider the impact your mortgage has on your overall financial goals.

REAL FINANCE SOLUTIONS provides a team of approved Affiliates on the System that offers real estate & consumer seminars, commercial and residential financing, principal mortgage reduction (for those that owe more on their home than the current value), commercial equipment leasing, RV/Boat/Aircraft financing, credit management and many other services. We hold our Affiliates to a high level of quality service and if they do not live up to our expectations they are removed from the System.

The end result is that we hope you will become a Raving Fan of our services and not only use us again in the future but also refer your friends and family.

Financing Update & the Real Finance Seminar

Patricia Boyd — Wed, 18 Aug 2010 10:14:00 GMT

Financing Updates & the "Real Finance: A Consumer Advocate

Approach to Real Estate & Mortgages" Seminar

HUD announced the upfront Mortgage Insurance Premium (MIP) will go to 100 basis points (1%) and the annual MIP, also known as monthly mortgage insurance premium or MMIP, will go to 85 basis points on LTV's <= 95% and 90 basis points on LTV's > 95%.

Check with lenders on your team to see how this may affect your borrower's qualifying.

Closing costs are also up in many areas so it is a good idea to have the lender on your team give you an updated general Good Faith Estimate of Closing Costs for the average price range in your market.

The initial buyer interview is more important than ever. The more educated the Buyer is on what it will take to purchase their dream home the smoother the transaction will go after you find that perfect home.

It is also important to educate your Sellers in your Listing Presentation on financing options that can help them sell their home and how they can offer finance incentives to open up the market to more buyers.

The "Real Finance: A Consumer Advocate Approach to Real Estate & Mortgages" Seminar will give you the knowledge and tools you need to educate Buyers, Sellers, For Sale By Owners and Expired Listings and help you add value to your services.

The next live seminar is in West Virginia in October.

Location: Holiday Inn, Martinsburg
301 Foxcroft Avenue Martinsburg, WV 25401

Dates & Times: October 4, 2010 from 9:00 - 5:00 and October 5, 2010 from 9:00 - 12:00.

In today's market it is more important than ever for real estate professionals to understand what takes place behind the scenes with mortgages and how they can protect their clients from predatory lending practices.

For more information about the Seminar or to schedule a Real Finance Seminar in your area email Boyd@realfinancesolutions.com.

New Good Faith Estimate Launches January 1, 2010

Patricia Boyd — Tue, 15 Dec 2009 19:54:00 GMT

New Good Faith Estimate of Charges Launches

January 1, 2010

The U.S. Department of Housing and Urban Development issued long-anticipated mortgage reforms that will help consumers shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save consumers nearly $700 at the closing table.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws.

HUD continues to believe that consumers need to be aware of the key aspects of their loan as well as associated settlement costs.

To facilitate comparison between the HUD-1 and the GFE, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE. Borrowers will now be able to easily compare their estimated and actual costs.

HUD will require the new standardized GFE and HUD-1 beginning January 1, 2010.

To view these documents, click on the following links:

HUD's standard Good Faith Estimate

HUD-1 Settlement Statement

The new Good Faith Estimate (GFE) must be delivered within 3-days of application.

Using a series of "Yes/No" checkboxes on Page 1, mortgage lenders specifically note:

• Interest rate on the mortgage

• Whether rate can change over time

• Whether loan carries a prepayment penalty

• The length of the rate lock

Important Dates

• The “interest rate” and “other settlement charges” dates are independent of each other

• At lock, an updated GFE must be issued with “Important Dates” sections updated.

• Line 4 may contain “N/A” at this point.

Disclosing Fees

All fees typically charged to borrowers regardless of who pays must be listed on the GFE except:

Owners title, even if typically paid by the seller, must be disclosed on the GFE in Block 5

Items to Note:

• Fees disclosed, but paid by others are still bound by tolerances

• Block 3 includes all third party settlement services selected by the broker/lender

– Exception: Document preparation performed by a third party should be disclosed in Block1 (Our origination charge)

– Exception: Charges for appraisals performed by in-house appraisers should be disclosed in Block 1 (Our origination charge)

Changed Circumstances

What is a changed Circumstance?

– Acts of God, war, disaster or other emergency

– Changed situation or inaccurate information provided by the borrower after issuance of the GFE

What can change?

– Only those fees impacted by the changed circumstance

– If pricing changes due to a changed circumstance, or a borrower requested change, only the interest rate dependant charges and terms may change. This includes only those charges or credits in Block 2 which will, in turn, impact the “Adjusted Origination Charges.”

– If pricing changed due to going from a float to a lock, only the interest rate dependant charges and terms may change (Block 2 and the impacted, “Adjusted Origination Charges.”)

– Block 1 fees CANNOT change, even with a changed circumstance

Exception: If the loan amount changes and a portion of the “Origination Charge” is a percentage of the loan amount or the overall loan program changes Important Dates Section – must be updated to reflect any new information.

More information about HUD and its programs is available on the Internet at:

www.hud.gov

espanol.hud.gov

For more information about FHA products visit

www.fha.gov.

FHA Adopts HVCC Requirements

Patricia Boyd — Thu, 24 Sep 2009 19:10:00 GMT

Effective October 1, 2009, all FHA transactions must adhere to the appraisal guidelines outlined in the Home Valuation Code of Conduct that is currently in place for conventional financing.

This change in FHA guidelines has been enacted to limit the communication between loan officers and the appraisers assigned to case files. Loan Originators, Loan Officers, and Mortgage Loan Production Staff are not permitted to have any substantive contact with the appraiser and must direct all appraisal orders and communication through an Appraisal Management Company.

In addition, FHA appraisals are only valid for a period of 120-days from the date of the appraisal.

While the new FHA guideline does not specifically state that FHA has adopted HVCC guidelines, the new directive mirrors the requirements of HVCC.

New Conforming Mortgage Guidelines , Effective September 1, 2009

Patricia Boyd — Fri, 28 Aug 2009 18:36:00 GMT

I am re-posting a recent blog from our partner Ed Hollinshead, GHMC; the author of The Wealth Catalyst Report.

The information contained in this blog is very important and essential for you and your clients to understand.

As a reminder, Fannie Mae is rolling out new lending guidelines Tuesday, September 1, 2009.

Starting next week, being approved for a home loan could be much more difficult.

The new rules mark the first major underwriting update since April of this year. The changes are mostly geared at fraud prevention.

Among the updates:

Stock options are no longer eligible for "reserves"
Relocating families can't use the "trailing" spouse's projected income for qualifying
"Tip" income must be documented and verified
Lenders must call employers to verify employment
Lenders must verify tax transcripts against IRS records

But there are other changes, too. As examples:

Owners and buyers of 2-unit homes are subject to new minimum FICOs with larger down payment and equity requirements.
Only 70% of stock, bond and mutual fund values may be used as reserves.
Only 60% of retirement assets may be used as reserves.

Consider this post to be your advance warning. Not everyone that qualifies for a mortgage on Monday, August 31 will qualify on Tuesday, September 1.

Therefore, if you have a pending need for a mortgage -- for either a purchase or a refinance -- it's probably best to talk with a lender as soon as possible. The deadline is based on the date of application -- not the date of closing.

Read the complete Fannie Mae announcement online.

Are you ready?

Patricia Boyd — Fri, 31 Jul 2009 18:09:00 GMT

I wanted this morning's edition of RFSinsights to re-address the mission of REAL FINANCE SOLUTIONS, because I believe that we truly have the Solution to the problems in the mortgage industry. I also feel that these problems are affecting the quality of life for millions of families across America and that we can make a difference if you are willing to help.

As most of you know, I have been advocating that consumers team up with honest, ethical real estate and mortgage professionals so that they can avoid becoming victims of predatory lenders since 1987. No one wanted to hear the message for many years and it has been an uphill battle getting my message across.

To state the obvious…"America is in an economic turmoil."

I truly believe we can help; together, we need to get the word out to consumers that REAL FINANCE SOLUTIONS is here to help them make educated decisions when buying, selling, refinancing or investing in real estate.

It is interesting to me that so many people, such as Jeff Wirsing (Mortgage News Daily), feel that there still is not an answer to the mortgage industry. In his July 30, 2009 post, Proposing Real Change in the Mortgage Industry, Jeff asks "What if we were to start from scratch, on a blank white board, and completely re-invent the process of originating a mortgage? What might that look like?". This is precisely what REAL FINANCE SOLUTIONS has accomplished; we have re-invented the process of originating a mortgage.

It all begins and ends with taking care of the consumer first and success will take care of itself. That is the philosophy behind REAL FINANCE SOLUTIONS.

As RFS Consultants you are in the unique position to provide consumers the education they need so that they can make educated decisions. It really is all about empowering the consumer to understand the process from loan application to closing and also in understanding the impact their mortgage has in their ability to create wealth. They also need to understand the predatory lending practices that still exist in the marketplace and how they can avoid becoming victims of predatory lenders.

It is up to you as RFS Consultants to learn all you can about the tools and information available to you as a member of REAL FINANCE SOLUTIONS and to use those tools to educate consumers before they make loan application. You have the opportunity to be part of the solution, not part of the problem. The question is… are you ready to commit to learning the system and applying the tools you have available to help consumers? If so, you will find that as you counsel and educate consumers so that they can use their mortgage as a tool to build wealth and financial independence, you are also helping yourself build wealth and financial independence.

If you are ready to make a major commitment to improve the quality of your life and the lives of others then PLEASE JOIN US on our weekly Wednesday night Webinars so that you can learn to use the tools available to you as a RFS Consultant. Please contact every member of your team and ask them if they have read this email and if they are ready to commit to learning the system.

If you have not given Getting Started Interviews with all of your team members and would like for me to participate in one with you please send me an Email and let me know what times would work best for you. I am committed to doing everything I can to help you and your team reach your financial goals and I feel it all starts with the Getting Started Interview and making sure our RFS Consultants know how to access the tools they have available to them to counsel consumers.

We now have over 250 members in our system. We had 28 RFS Consultants join us last Monday night for our RFS Consultant training. While I was thrilled to have those 28 I could not help asking myself, “Where are the other 200+ members”? Don’t they have dreams and goals they would like to achieve to live the life they truly want to have? If so how can we help them reach those goals if they don’t participate in the Webinars? And if they don’t participate in the Webinars how are we going to reach all the families that need our help?

What can I do to help you make a commitment to building your business with REAL FINANCE SOLUTIONS?

We need you to make a commitment to participate in the training and learn how to use the tools available so we can have a powerful team providing counseling to consumers that need our help. We can’t do it without you. There are thousands of consumers across the nation making the decision to buy, sell, refinance or invest in real estate without having the opportunity to receive the counseling they need before they make their decision on which loan is right for them.

Please register to join our Monday night RFS Consultant training webinars and give us the opportunity to help you build your business so that you can truly reach your financial goals. It really all begins with you, doesn’t it?

I have just one question for you, “ARE YOU READY?