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December 2, 2015

A Newer and Specialized Version of the FICO Score

A newer and specialized version of the FICO score advertises analysis of both traditional and non-traditional credit sources to arrive at a credit score. In late 2011, Fair Isaac Corporation partnered with Core Logic, a data analysis company, to create a new type of credit report which takes into account both traditional and nontraditional credit sources. 

This new CoreScore considers an individual’s rental payment history, evictions, child support judgments, applications for payday loans and payment history on utility and cellphone bills when setting the score.

First, the use of nontraditional credit is not allowed by any of these entities to enhance the traditional credit history of a borrower with an otherwise poor payment record. Nontraditional credit is allowed as an alternative to a “thin” credit file, not a bad credit file. [Fannie Mae Single Family/2013 Selling Guide, Part B3-5.4-01; Freddie Mac Single Family Seller/Servicer Guide Chapter 37.4(a)(2); HUD Handbook 4155.1 Chapter 1.C.5.d]

December 1, 2015

Reverse Mortgage The Story of Everything

HECM loans are first lien mortgages which provide future payments to a homeowner based on the accumulated equity in the homeowner’s property. 

To be eligible for insurance under the FHA’s HECM program, a mortgage must have been originated by an FHA-approved lender, or by a loan broker doing business with an FHA-approved lender. [12 USC §1715z-20(d)(1)]
HECM loans may not have prepayment penalties. Further, HECM loans are nonrecourse, and the loan documents must state this. The sale or foreclosure of the property is the only recourse the lender has to collect on the debt. A lender cannot go after the personal assets of the borrower or their heirs. [12 USC §1715z-20(d)(7); HUD Handbook 4235.1 Rev-1 Chapter 1-3.C]

Interest rates

A HECM loan may have either a fixed or adjustable interest rate. Interest accrues daily and is added to the outstanding balance monthly. [HUD Mortgagee Letter 2014-21; 24 CFR §206.21(a)-(b)]
If the borrower chooses an adjustable interest rate, the lender must offer the borrower a rate that adjusts annually, with a 2% periodic adjustment cap and a 5% lifetime cap. At the lender’s discretion, the lender may also offer the borrower an adjustable interest rate that adjusts monthly, with a lifetime cap set by the lender, and no periodic adjustment cap. The two acceptable indexes for the latter type of adjustable rate mortgage (ARM) are the one-month Constant Maturity Treasury (CMT) and the one-month London Interbank Offered Rate (LIBOR). [24 CFR §206.21(b)]


A borrower who takes out a HECM loan as a traditional reverse mortgage must choose at loan origination a payment option for the reverse mortgage proceeds.

Fixed rate HECM and the single lump disbursement

For HECM loans with case numbers assigned on or after June 25, 2014, the only payment option available on fixed-rate HECM loans is the single disbursement lump sum option. No future draws may be made by the borrower. [HUD Mortgagee Letter 2014-21]
A borrower who opts for the single disbursement lump sum option will only receive one payment at loan closing. This payment is not to exceed the greater of:
  •  60% of the principal limit; or
  •  the borrower’s mandatory obligations, plus 10% of the principal limit. [HUD Mortgagee Letter 2014-21]
Editor’s note — The definition of mandatory obligation was amended in November of 2014. It is reviewed later in the module.

Adjustable rate HECM and payment options

For adjustable rate HECM loans, only the following options are available:
  •  the term payment option;
  •  the tenure payment option;
  •  the line of credit payment option;
  •  the modified tenure; or
  •  the modified term. [HUD Mortgagee Letter 2014-21]
A borrower who receives term payments receives equal monthly payments for a fixed period of time. The fixed time period is set by the borrower. [12 USC §1715z-20(d)(9)(B); 24 CFR §206.19(a)]
With tenure payments, the borrower receives money from the lender in equal monthly payments until the borrower dies or sells the property. [12 USC §1715z-20(d)(9)(D); 24 CFR §206.19(b)]
A borrower who receives the reverse mortgage money through a line of credit may choose when and how much money to withdraw from their line of credit until they reach their principal limit. [12 USC §1715z-20(d)(9)(A); 24 CFR §206.19(c)]
Under a modified tenure, the borrower receives equal monthly payments from the lender until the death of the borrower or the sale of the property. The borrower also has the freedom to withdraw money from the reverse mortgage as with a line of credit. [12 USC §1715z-20(d)(9)(E)]
Under a modified term, the borrower receives equal monthly payments and may also take money out through their line of credit, for a set period of time. [12 USC §1715z-20(d)(9)(C)]
As long as the mortgage balance is less than the principal limit, a borrower with an adjustable rate HECM loan may request a change from any payment option to another, or a payment of any amount (not to exceed the difference between the principal limit and the sum of the mortgage balance and any set-asides for repairs or servicing charges). A mortgage will continue to bear interest at the adjustable interest rate as agreed between the lender and the borrower at loan origination. [24 CFR §206.26(a); 24 CFR §206.26(c)]
The lender can charge a fee for changing the payment option. HUD’s website currently sets this fee at $20. [24 CFR §206.26(d)]
Other than the initial payment, no minimum draw or payment is required. The lender cannot compel the borrower to use the HECM loan proceeds or require a borrower to draw a certain amount at any time. [24 CFR §206.25(g); HUD Mortgagee Letter 2014-10]
If the borrower has chosen a term or tenure payment option, the lender is required to make monthly payments to the borrower by mail or electronically on the first business day of the month. If the borrower has a line of credit and makes a request for a payment, the lender must make the payment within five business days of the receipt of the request.
If the lender fails to make the payments within the respective timeframes, the lender is to pay a late charge to the borrower for the late payment. The late charge is to be 10% of the entire amount that should have been paid to the borrower for that month or as a result of that request. For each additional day that the borrower does not receive payment, the lender is required to pay interest at the mortgage interest rate on the late payment. In no event shall the total late charge exceed $500. Any late charge shall be paid from the lender's funds and shall not be added to the mortgage balance. [24 CFR §206.25(f)]
The lender may collect a fixed monthly charge for servicing activities if the amount of the charge was disclosed to the borrower at the time the lender provided the borrower with a loan application. The servicing fee is set aside from the principal limit amount. [24 CFR §206.207(b)]
Monthly servicing fees are capped at:
  • $30 for fixed rate HECMs and annually adjustable rate HECMs; and
  • $35 for monthly adjustable rate HECMs.

Disbursement limits

One of the most important changes made in September of 2013 was the establishment of disbursement limits.
For the fixed rate HECM single disbursement lump sum payment option, the initial disbursement limit sets the total amount which may be paid to the HECM borrower, as previously indicated. This amount is called the borrower’s advance. [HUD Mortgagee Letter 2014-21]
For adjustable rate HECM payment options, HECM guidelines now restrict the maximum loan amount which may be disbursed during the initial 12 months of the loan to the greater of:
  •  60% of the principal limit; or
  • the borrower’s mandatory obligations, plus 10% of the principal limit. [HUD Mortgagee Letter 2014-21]
The first 12-month disbursement period begins on the day of loan closing and ends on the day before the anniversary of loan closing. For example, the first 12-month disbursement period for a loan closing on December 9, 2013 ends on December 8, 2014.
If the first anniversary of the loan closing falls on a federal holiday, Saturday or Sunday, the first 12-month disbursement period will end on the next business day. For example, the first 12-month disbursement period for a loan closing on January 2, 2014 has an anniversary date of January 1, 2015, a federal holiday. Thus, the first 12-month disbursement period ends on January 2, 2015. [HUD Mortgagee Letter 2014-21]
As indicated in the criteria above, if the mandatory obligation amount is greater than 50% of the principal limit, borrowers may have an additional 10% of the principal limit disbursed to them. However, the HECM program now charges a higher up-front mortgage insurance premium if:
  • under a single disbursement lump sum payment option, the initial disbursement is greater than 60% of the principal limit; or
  •  under all other payment options, the total amount disbursed during the first 12-month disbursement period is greater than 60% of the principal limit.
Thus, when the mandatory obligation is an amount greater than 50% of the principal limit, borrowers are required to notify the lender of their intention to use some or all of the additional 10% principal limit available to them. This notification allows the lender to calculate the correct mortgage insurance premium due to the FHA.
For adjustable rate HECM loans, the lender is required to determine and track the disbursement limits during the first 12-month disbursement period. This tracking ensures the borrower is not able to draw out more than the set limit. After the first 12-month disbursement period, there is no further restriction on the borrower’s ability to request a disbursement of their HECM loan proceeds, according to the payment option they have chosen.
These limits provide an important protection for borrowers. A 2012 study completed by the Consumer Financial Protection Bureau (CFPB) indicated a high percentage of reverse mortgage borrowers were simply using the line of credit payment option to yank out 100% of their principal limit at loan closing. Others depleted their HECM loans shortly after closing, leaving them vulnerable to default on the HECM loan when they were not able to make tax and insurance payments, as required.
However, HUD found that lenders were incentivizing borrowers to pull out the maximum amount allowable in the 12-month initial period, then the remainder shortly after the end of the 12-month period. These activities effectively worked around the default protections HUD attempted to build into the HECM program in 2013. HUD issued a reminder to lenders that they were required to provide all options available to a borrower under the HECM program. Lenders are not able to simply highlight one option to the exclusion of others. Lenders are also prohibited from requiring certain draws as a condition of making the loan. [HUD Mortgagee Letters 2014-10 and 2014-11]
Additionally, the limits on initial disbursements (or disbursements within the first 12-month disbursement period) make HECM borrowers less attractive targets for scammers, who relied on the low barriers to the loan program to extract their ill-gotten gains from vulnerable seniors.

The mandatory obligation

The mandatory obligation definition was added by the September 2013 and amended in November 2014. The mandatory obligation impacts the initial disbursements allowed. The mandatory obligation is comprised of the fees incurred in connection with a HECM origination. These fees are paid at closing, or arranged, at closing, to be paid during the first 12-month disbursement period.
For HECM borrowers who choose the fixed rate HECM loan and its single disbursement lump sum payment option, the mandatory obligation is used to determine the amount of the lump sum payment. For HECM borrowers who choose the adjustable rate HECM loan under any of the other payment options, the mandatory obligation sets the payment limit during the first 12-month disbursement period.
For all HECM loans, the mandatory obligation includes the:
  • initial MIP;
  • loan origination fee;
  • HECM counseling fee;
  • reasonable and customary amounts, but not more than the amount actually paid by the mortgagee for any of the following items:
    • recording fees and recording taxes, or other charges incident to the recordation of the insured mortgage;
    • a credit report;
    •  a survey, if required by the mortgagee or the mortgagor;
    • a title examination;
    • the mortgagee’s title insurance; and
    • fees paid to an appraiser for the initial appraisal of the property;
  •  property tax, flood and hazard insurance payments required to be paid at closing;
  •  customary fees and charges for warranties, inspections, surveys or engineer certifications;
  •  actual insurance premiums charged for property tax and flood and hazard insurance payments scheduled for payment from the property charge life expectancy (LE) set-aside (discussed later in the module) or from HECM proceeds within the first 12-month disbursement period;
  •  delinquent federal debt; and
  •  other charges as authorized by HUD. [HUD Mortgagee Letter 2014-21]
For traditional and refinance HECM loans, the mandatory obligation also includes the:
  •  any repair set-asides;
  • any repair administration fee;
  • allowable amounts used to discharge any existing liens on the property;
  • funds to pay contractors who performed repairs as a condition of closing, in accordance with standard FHA requirements for repairs required by appraiser. [HUD Mortgagee Letter 2014-21]
For purchase HECM loans, the mandatory obligation also includes the:
  • fees and charges for real estate purchase contracts; and
  • the amount of the principal that is advanced towards the purchase price of the subject property. [HUD Mortgagee Letter 2014-21]

Disbursement limit calculations and examples

The items which are to be included in the initial disbursement limit or the first 12-month disbursement limit are:
  • the amount of the mandatory obligations;
  • the disbursement to the borrower made at closing; and
  • (for the first 12-month disbursement limit on adjustable interest rate HECMs, only) the remaining amount of the disbursement not taken by the borrower, but available during the first 12-month disbursement
These examples demonstrate the application of the new policy limiting disbursements at loan closing and/or during the first 12-month disbursement period. [HUD Mortgagee Letter 2014-21]
Recall that the fixed rate HECM initial lump sum disbursement, or disbursement for an adjustable rate HECM during the initial 12 months of the loan for other payment options, is limited to:
  •  60% of the principal limit; or
  • the borrower’s mandatory obligations, plus 10% of the principal limit. [HUD Mortgagee Letter 2014-21]
Example 1: Mandatory obligations of 60% or less of the principal limit
Principal limit: $100,000
Mandatory obligations: 
Repair set-aside: $0
60% of the principal limit: $60,000
Initial disbursement limit amount: $60,000, includes $40,000 in mandatory obligations and $20,000 to borrower

The borrower can draw the $20,000 exceeding mandatory obligations and any set-aside at loan closing or during the first 12-month disbursement period.

Note: On the single disbursement lump sum payment option, the borrower is limited to a single draw at loan closing for the $20,000, in excess of the mandatory obligations and any set-aside.
Example 2: Mandatory obligations in excess of 60% of the principal limit
Principal limit: $100,000
Mandatory obligations: $65,000
Repair set-aside: $0
10% of principal limit: $10,000
60% of the principal limit: $60,000
Initial disbursement limit amount: $75,000, includes $65,000 in mandatory obligations and $10,000 to borrower

The borrower can draw the $10,000 exceeding mandatory obligations and any set-aside at loan closing or during the first 12-month disbursement period.
Note: On the single disbursement lump sum payment option, the borrower is limited to a single draw at loan closing for the $10,000, in excess of the mandatory obligations and any set-aside.
Example 3: Mandatory obligations of 60% or less of the principal limit
Principal limit: $200,000
Mandatory obligations: $17,000
Repair set-aside: $33,000
60% of the principal limit: $120,000
Initial disbursement limit amount: $120,000, includes $17,000 in mandatory obligations, $33,000 set-aside and $70,000 to borrower

The borrower can draw the $70,000 exceeding mandatory obligations and any set-aside at loan closing or during the first 12-month disbursement period.

Note: On the single disbursement lump sum payment option, the borrower is limited to a single draw at loan closing for the $70,000, in excess of the mandatory obligations and any set-aside.
Example 4: Mandatory obligations in excess of 60% of the principal limit
Principal limit: $200,000
Mandatory obligations: $140,000
Repair set-aside: $13,000
10% of the principal limit: $20,000
60% of the principal limit: $120,000
Initial disbursement limit amount: $160,000, includes $140,000 mandatory obligations, $13,000 repair set-aside and $7,000 to borrower

The borrower can draw the $7,000 exceeding mandatory obligations and the set-aside at loan closing or during the first 12-month disbursement period.

Note: On the single disbursement lump sum payment option, the borrower is limited to a single draw at loan closing for the $7,000, in excess of the mandatory obligations and any set-asides.
Prohibited use of the initial disbursement
HECM regulations forbid the initial disbursement to be used to pay or otherwise compensate an estate planning service. If the borrower draws out at least 25% of the principal limit amount at closing, the lender must confirm that none of that amount will be used to pay an estate planning service. [24 CFR §206.32(b); 24 CFR §206.43(b)]
An estate planning service is an entity, other than the lender or HECM loan counselor, that charges a fee for counseling the borrower about HECM loans, or a fee contingent on the borrower obtaining a HECM loan. [24 CFR §206.3]
HUD specifically placed this restriction against estate planning services, since these services provide essentially the same service as the required housing counselor, but charge more. Some borrowers are led to believe that estate planning services are a required part of the reverse mortgage process; they are not. In addition, many estate planning services charge the borrower for referring the borrower to a reverse mortgage lender.
Borrower obligations
A reverse mortgage doesn’t require a borrower to make regular monthly payments, but a borrower does have other obligations to fulfill. To remain in good standing on a reverse mortgage, the borrower or surviving eligible non-borrowing spouse must:
  • keep the property as their principal residence;
  •  maintain hazard insurance on the property in an amount acceptable to HUD and the lender;
  •  keep the property free of liens, unless such liens are subordinate to the reverse mortgage;
  •  keep the property in good repair; and
  •  pay property taxes, hazard insurance, ground rents and assessments in a timely manner. [24 CFR §206.27(b)]
The borrower’s failure to meet all of these requirements constitutes a default on the reverse mortgage.
Editor’s note — Initially, HUD had planned on implementing the new financial assessment rules on January 13, 2014, but postponed implementation. All the highlight content below contains the rules as previously published, for an idea of the extent and intent of financial assessment. [HUD Mortgagee Letter 2013-45]
If the lender determines the borrower does not have the capacity to pay for property taxes, hazard insurance and flood insurance premiums from their existing income, the lender may mandate a set-aside from the principal limit to pay for these items, called the lifetime expectancy set-aside (LE set-aside). [HUD Mortgagee Letter 2014-21]
The LE set-aside is calculated based on the current property taxes and hazard and flood insurance premiums, and the estimated life expectancy of the youngest borrower. When the LE set-aside has been depleted, the borrower is responsible for making the payments. If the borrower does not make the payments, the lender is required to make payments on behalf of the borrower, and add the cost of the payments to the principal balance of the HECM loan.
Two LE set-aside options exist:
  • a fully-funded LE set-aside on either fixed rate or adjustable rate HECMs; and
  • a partially-funded LE set-aside on an adjustable rate HECM.
The underwriter determines which set aside is required when the LE set-aside is mandatory.
The borrower may not cancel a mandatory LE set-aside.
All other property charges are still the responsibility of the borrower.
A borrower who has the capacity to pay the property taxes, hazard insurance and flood insurance premiums may voluntarily elect to have an LE set-aside, elect to have the lender pay the property charges or choose to pay for all property charges independently. If they voluntarily elect to have payments made from their disbursements, they may not later cancel the election.
A borrower who takes out a fixed-rate HECM with a case number assigned on or after June 25, 2014 is no longer able to elect for the lender to make payments on their behalf, as no further disbursements are provided to the borrower beyond the lump-sum initial draw. [HUD Mortgagee Letter 2014-21]
However, even if this election is made, the responsibility reverts back to the borrower once the mortgage balance has met the principal limit. [24 CFR §206.205(b)]
The lender must complete an annual analysis of LE set-asides, and notify the borrower within 15 days of the annual analysis if the LE set-aside is exhausted or there is an insufficient balance to pay property charges for the next year.
The lender is then to provide 30 days’ written notice to the borrower and HUD of a property charge due once a set-aside is depleted. The lender’s notice must also contain a recommendation that the borrower speak to a HUD-approved housing counselor about property charge payments. [HUD Mortgagee Letter 2014-21]
Note that this election is NOT the same as an escrow account! The payments are set aside from the principal limit, and made and added to the borrower’s loan balance at the time the payments are due. The lender may not hold the payment in a separate account in trust for the borrower. Thus, there is no interest payment made to the borrower on any of the amounts paid by the lender under this agreement, as there is in a traditional mortgage with an interest-bearing escrow account. [24 CFR §206.205(e)]

November 25, 2015

TRID = Success by Michael James Hansen November 25th 2015

As the Officer of So Easy Mortgage, Inc., I am pleased to announce that TRID is a success. As of October 3rd we allow all clients to sign online, from their email without having to print, with ALL investors.

In addition, we have eliminated any delay associated with locking in your rate. This means once your application has been pre approved, when you are ready to lock, we will lock your rate the second you request it. (Applications taken after October 3rd 2015.)

So EZ Mortgage strives to offer great service and retain great clients. Part of our success is due to delivering the finest home loan applicants to our investors. Our flawless record of consistently delivering reliable clients allows us to access more rebate from our investors resulting in a lower rate for our clients.

Feedback from our investors tells us that we are leading the way in innovation, speed, reliability and consistency. While other lenders are calling their investors literally in tears because their loans are not funding on time, we are celebrating  funding 100% of our loans not only on time, but in less time than before TRID. We are hearing reports of other lenders locking loans for 45 - 60 days. That to me, equals success for us. The fact that our turn times improved while our competitors turn times worsened, is evidence that we are doing it right.

November 18, 2015

Interesting Press Release from 2012, The Year Rates Hit The Lowest In History

The Wells Fargo Class Action Suit

Copy is adapted from a July 12, 2012 U.S. Department of Justice Press Release:
On July 12, 2012, the U.S. Department of Justice filed the second largest fair lending settlement in the department’s history to resolve allegations that Wells Fargo Bank, the largest residential home mortgage originator in the United States, engaged in a pattern or practice of discrimination against qualified African-American and Hispanic borrowers in its mortgage lending from 2004 through 2009. 
The settlement provided $125 million in compensation for wholesale borrowers who were steered into subprime mortgages or who paid higher fees and rates than white borrowers because of their race or national origin. Wells Fargo will also provide $50 million in direct down payment assistance to borrowers in communities around the country where the department identified large numbers of discrimination victims and which were hard hit by the housing crisis. 
Additionally, Wells Fargo has agreed to conduct an internal review of its retail mortgage lending and will compensate African-American and Hispanic retail borrowers who were placed into subprime loans when similarly qualified white retail borrowers received prime loans. Compensation paid to any retail borrowers identified in the review process will be in addition to the $125 million to compensate wholesale borrowers who were victims of discrimination.

“The department’s action makes clear that we will hold financial institutions accountable, including some of the nation’s largest, for lending discrimination,” said Deputy Attorney General James M. Cole. “An applicant’s creditworthiness, and not the color of his or her skin, should determine what loans a borrower qualifies for. With the settlement, the federal government will ensure that African-American and Hispanic borrowers who were discriminated against will be entitled to compensation and borrowers in communities hit hard by this housing crisis will have an opportunity to access homeownership.”
The settlement, which is subject to court approval, was filed in the U.S. District Court for the District of Columbia in conjunction with the department’s complaint, which alleges that between 2004 and 2008, Wells Fargo discriminated by steering approximately 4,000 African-American and Hispanic wholesale borrowers, as well as additional retail borrowers, into subprime mortgages when non-Hispanic white borrowers with similar credit profiles received prime loans. All the borrowers who were allegedly discriminated against were qualified for Wells Fargo mortgage loans according to Well Fargo’s own underwriting criteria.
The United States also alleges that, between 2004 and 2009, Wells Fargo discriminated by charging approximately 30,000 African-American and Hispanic wholesale borrowers higher fees and rates than non-Hispanic white borrowers because of their race or national origin rather than the borrowers’ credit worthiness or other objective criteria related to borrower risk.  
“By reaching a settlement in this case, African-American and Hispanic wholesale borrowers who received subprime loans when they should have received prime loans or who paid more for their loans will get swift and meaningful relief,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “As one of the largest mortgage lenders in the country, Wells Fargo’s commitment to conduct an internal review of its retail lending and compensate African American and Hispanic retail borrowers who may have been improperly placed in subprime loans is significant. We will continue to work aggressively to ensure that all qualified borrowers have access to credit on an equal basis.”
The United States’ complaint alleges that African-American and Hispanic wholesale borrowers paid more than non-Hispanic white wholesale borrowers, not based on borrower risk, but because of their race or national origin. Wells Fargo’s business practice allowed its loan officers and mortgage brokers to vary a loan’s interest rate and other fees from the price it set based on the borrower’s objective credit-related factors. This subjective and unguided pricing discretion resulted in African-American and Hispanic borrowers paying more. The complaint alleges that Wells Fargo was aware the fees and interest rates it was charging discriminated against African-American and Hispanic borrowers, but the actions it took were insufficient and ineffective in stopping it.  
The United States’ complaint also alleges that, as a result of Wells Fargo’s policies and practices, qualified African-American and Hispanic wholesale borrowers were placed in subprime loans rather than prime loans even when similarly-qualified non-Hispanic white borrowers were placed in prime loans.   The discriminatory placement of wholesale borrowers in subprime loans, also known as “steering,” occurred because it was the bank’s business practice to allow mortgage brokers and employees to place a loan applicant in a subprime loan even when the applicant qualified for a prime loan. In addition, Wells Fargo gave mortgage brokers discretion to request exceptions to the underwriting guidelines, and Wells Fargo’s employees had discretion to grant these exceptions.        
This is the second time that the Justice Department has alleged and obtained relief for borrowers who were steered into loans based on race or national origin, a practice that systematically placed borrowers of color into subprime mortgage loan products while placing non-Hispanic white borrowers with similar creditworthiness in prime loans. By steering borrowers into subprime loans from 2004 to 2008, the complaint alleges, Wells Fargo harmed those qualified African-American and Hispanic borrowers.   Subprime loans generally carried higher-cost terms, such as prepayment penalties and adjustable interest rates that started with low initial teaser rates, and then increased significantly after two or three years, often making the payments unaffordable and leaving the borrowers at a much higher risk of default or foreclosure.
The department began its investigation into Wells Fargo’s lending practices in 2009 and received a referral in 2010 from the Office of the Comptroller of the Currency (OCC) which conducted its own parallel investigation of Wells Fargo’s lending practices in the Baltimore and Washington, D.C. metropolitan areas. The OCC found that there was reason to believe that Wells Fargo engaged in a pattern or practice of discrimination in these metro areas on the basis of race or color, in violation of the FHA and ECOA.
This case was prosecuted by the Fair Lending Unit in the Civil Rights Division’s Housing and Civil Enforcement Section in conjunction with the U.S. Attorney’s Office for the District of Columbia. Since the attorney general established the unit in early 2010, it has filed a complaint in or resolved 19 matters.   By way of contrast, from 1993 to 2008, the department filed or resolved 37 lending matters, an average of a little more than two cases per year.

Information From:

November 10, 2015


VA lending is one of those rare opportunities in life to do well by doing right. 

Many Loan Officers tell us they don’t do VA Loans due to the perceived complexities of the product. With QLMS we offer a tremendous set of benefits and support to get you started:

  • No UW Fee
  • A dedicated VA Hotline to answer all your questions
  • Full product menu including 100% LTV on Purchase and R/T Refinance
  • An expansive resource center to get you started and keep you going

November 5, 2015

New Maximum 50% Debt To Income with Desktop Underwriter "Fannie Mae"

New Maximum DTI with DU 50%*

If you have been denied financing in the last 5 years due to your debt, call us now! We can find out if you qualify for a new loan at a lower rate for FREE.

Not only is the consultation free, the closing cost is paid for by a lender credit, making your finance free of charge. That's $0.00 deposit, $0.00 application fee $0.00 Credit Report Fee, $0.00 Appraisal Fee, $0.00 Escrow Fee, $0.00 Title Insurance Fee, $0.00 Recording Charges, and $0.00 any other kind of charges. Absolutely NO FEES inside or out of your loan.

Call 855.955.7639 that's (855)955-SOEZ. We are waiting!

*50% DTI with Fannie Mae DU is not for everyone.

November 3, 2015

VA Jumbo Gift funds: allowed!

So EZ Mortgage is offering an amazing VA loan program that many other lenders do not have. 

So EZ Mortgage can pre-qualify you to see how much home you can own, with $0.00 down if you are a qualified vet. 

With the JUMBO ARM pricing for 5 and 7 year Non Agency options, your payment will be lower than a 30 year fixed and you will pay the principle down faster. Call me now 855-955-SOEZ

October 28, 2015

Flip or Flop HGTV Show -- Open House Tomorrow 10/29/2015 So EZ Mortgage Will Be There From 3PM - 7PM

Michael Hansen - Lender
Hamed Pearose - Realtor
Tomorrow, I will be at the Open House for a home flipped by the HGTV show, Flip or Flop!!!

You can find the show on Netflix. They purchased the home, flipped it and listed it a few days ago. Hamed Pearose is the first Agent to hold an Open House.

Do not miss out on this fantastic opportunity to meet with me in person, get approved on the spot and submit your offer on a home flipped by a reputable couple, Tarek and Christina who host their own show on HGTV.

243 Juanita Way, Placentia, CA 92870
10/29/2015 Thursday 3PM - 7PM

This school is located two blocks from Brookhaven Elementary School. 
One of the highest awarded Elementary schools in California.

Placentia Realtor Hamed Pearose with Intero Real Estate Services is Holding Open House Today Adjacent to So EZ Mortgage

Title: Realtor (714) 519-1503

So EZ Mortgage Can Lock Your Rate in 1 Hour from Application with Verbal Authorization & No Documentation

So EZ Mortgage is proud to announce to its VIP clients, same hour rate lock with no docs. 

This means if you are registered as a VIP with So EZ, when you want to lock in a rate, you can simply call us and request the lock over the phone without supplying any documentation and have your rate locked in 1 hour.

October 13, 2015

Having a mortgage improves your credit score.

The Vantage Score credit score model relies on information in your credit files at the three national credit reporting companies (Equifax, Experian and TransUnion) to generate your score. Your credit file does not contain enough credit behavior information about your first mortgage accounts if you do not have a mortgage.
A mix of different types of open and active credit accounts, including first mortgage loans, can have a positive impact on your credit score.

September 22, 2015

Mortgage loan debate: Stick with a bank or go with a broker?

Mortgage posting by Bankrate. So EZ Mortgage Partner UWM vs. Citizens Bank.

Mortgage brokers took a hit following the 2008 financial crisis.

Mortgage brokers vs. bankers

Mat Ishbia
Mat Ishbia
President and CEO of United Wholesale Mortgage.
Partner with So EZ Mortgage
Tom Gamache
Tom Gamache
Northeast Division Manager, Home Lending Solutions, Citizens Bank

They came under greater regulation by the Consumer Financial Protection Bureau, some major bankers stopped working with them and their ranks dwindled, according to Mortgage Professional America.

But banks have suffered their own troubles with regulators and the public.
In June, 6 banks were cited for ignoring requests for loan modifications or failing to make good-faith efforts to prevent foreclosures, while regional banks continue to be hit with investigations by the Justice Department for bad underwriting of Federal Housing Administration loans, according to National Mortgage News.

Whom would you approach for your next mortgage? Who would find the right mortgage and the best rate for you? And, whom would minimize the hassle of the mortgage approval process?

Experts representing mortgage brokers and mortgage bankers make their claims as to why they deserve your trust -- and business.

Good credit can save you thousands on your mortgage. Check your credit for free at myBankrate.

Mat Ishbia

Mortgage brokers

Mortgage brokers are licensed residential mortgage professionals with access to hundreds of loan options for consumers looking to buy or refinance a home. They support borrowers by leveraging relationships and securing the most favorable loan options available. Brokers can help homeowners save thousands of dollars on what is likely the most important financial undertaking of their lives.

Brokers streamline the loan-shopping process by promptly lining up multiple options that borrowers would likely qualify for to allow borrowers to choose the best option for themselves.
While larger lending institutions serve customers, they are not focused specifically on residential mortgage lending. They focus on auto, boat and personal loans, just to name a few. They are not focused on 1 area of expertise: mortgages. Large retail lending institutions can only offer the loan products they have in house, and most often pricing is higher because of the overhead associated with larger institutions and banks.
Brokers, including local banks and credit unions, are typically smaller and more nimble; they adapt to change quickly and have less overhead to be more competitive in the mortgage market. Furthermore, the commission structure for a broker is highly regulated and broker originators have the same pay structure on all loans, no matter what type of loan or loan size.

Tom Gamache

Mortgage bankers

Buying your own home is probably the largest and most important financial decision that any of us will ever make.
To help make that monumental decision, the vast majority of people turn to their bank for a loan rather than to a mortgage broker.

Securing a mortgage offer based on your existing banking relationship can result in a lower interest rate, not just an opportunity during a one-off transaction with an unfamiliar lender.
The reason is pretty simple: Most people already have a relationship with their bank, which has become a trusted partner after providing a range of services over the years, including a credit card, checking account and savings account.

By comparison, a mortgage broker is typically a 3rd-party organization with which you would have had no previous dealings.

You will be unfamiliar with your potential broker, but more importantly they will not know much about you. And that can really influence the kind of deals they offer. Citizens Bank in particular works hard to make banking relationships with customers personal.

On that same note, your bank already knows a great deal of information about you, such as the balances on your checking and savings accounts, and that can help make qualifying for a mortgage a lot easier.