Valuation for Mortgage Lending in North America and Lessons for Europe. Presented to The European Group of Valuers Associations Berlin -- April 2015
|
|
- Gerald Kelly
- 8 years ago
- Views:
Transcription
1 Valuation for Mortgage Lending in North America and Lessons for Europe Presented to The European Group of Valuers Associations Berlin -- April 2015
2 Home Ownership in the U.S. 14% of the U.S. population moves every year 59% are local moves 19% move to a different State Typical homeowner buys/sells every 5 to 7 years Average American will move 11.7 times during their lifetime 6% own a second home Appraisal Institute Valuation for Mortgage Lending Slide 2
3 Home Ownership Rate in the U.S. 70,0% 69,0% 68,0% 67,0% 66,0% 65,0% 64,0% 63,0% 62,0% 61,0% Home Ownership Rate, Seasonally Adjusted Source: U.S. Census Bureau Appraisal Institute Valuation for Mortgage Lending Slide 3
4 Size of the Mortgage Market U.S. Outstanding Mortgage Debt, in millions of US$ $ $ $ $ $ $ $ $ $ $ Source: Federal Reserve Bank Appraisal Institute Valuation for Mortgage Lending Slide 4
5 Size of the Mortgage Market Mortgage Debt by Property Type 18% 1% 7% 74% Residences Multi-family Non Residences Farm Appraisal Institute Valuation for Mortgage Lending Slide 5
6 The Three Underwriting Criteria The Lending Decision Credit Capacity Collateral All Equally Important??? Appraisal Institute Valuation for Mortgage Lending Slide 6
7 U.S. Bank Regulatory Structure There are many regulators. Federal Reserve Bank Federal Deposit Insurance Corporation Office of the Comptroller of the Currency National Credit Union Administration Office of Housing and Urban Development Federal Housing Finance Authority Consumer Financial Protection Bureau Federal Financial Institutions Examinations Council Appraisal Institute Valuation for Mortgage Lending Slide 7
8 Government Sponsored Entities (GSEs) Federal National Mortgage Association (Fannie Mae) Formed 1938 Private entity, but with government guarantee Purpose is to buy loans to increase liquidity Packages the loans into marketable securities Placed into conservatorship after 2008 financial crisis Federal Home Loan Mortgage Corporation (Freddie Mac) (1970) Others Appraisal Institute Valuation for Mortgage Lending Slide 8
9 Appraisal Regulatory Compliance GSEs Each State FFIEC & ASC Valuer DOJ FHWA Appraisal Foundation IRS Appraisal Institute Valuation for Mortgage Lending Slide 9
10 Mortgage Crisis in the U.S. It s complicated. Much debate remains. Mostly centered around residential real estate Long run up in housing prices Prices paid exceeded fundamentals Poor/lax underwriting standards Rating agency incompetence on securities Fraud Conflicts of interest in the Mortgage system Point in time valuation issues Appraisal Institute Valuation for Mortgage Lending Slide 10
11 Conflicts of Interest in Mortgage Lending Extreme pressure on appraisers from many parties such as real estate agents, buyers, and lenders Pressure to make the deal Agents, lenders, others paid on commission Parties ordering the appraisal were paid on commission And the loan was sold! (so who cares if it went bad) Appraisal Institute Valuation for Mortgage Lending Slide 11
12 Fraud Fraud ongoing problem Some lessons have been learned, but many things remain the same Ex. Some mortgage brokers now own appraisal management companies Many highly qualified appraisers choose not to do mortgage appraisal work Appraisal Institute Valuation for Mortgage Lending Slide 12
13 The Rise of Appraisal Management Companies Appraisal Management Companies: An intermediary between valuer and credit department Concept is to reduce pressure Cost Plus model Flat Fee model Appraisal Institute Valuation for Mortgage Lending Slide 13
14 Beware of Licensing Laws On one hand, licensing brings everyone to a common bar On the other, that bar has a tendency to become a standard Promote your credentials and programs as the standard Appraisal Institute Valuation for Mortgage Lending Slide 14
15 The Problem of Point-in-Time Valuations Real Estate Market Cycles Market Peak Expansion Contraction Equilibrium Equilibrium Recession Recovery Market Trough Appraisal Institute Valuation for Mortgage Lending Slide 15
16 Beware of Point-in-Time Valuations Coincident with the boom in home prices was a loosening of lending standards, led by minimal to zero down payments Appraisals based on point-in-time comparable prices promoted and enabled this trend. Continuing to calculate the V in LTV based on point-in-time comparable prices while fundamentals are lagging will cause a bubble every time. Edward Pinto, Resident Fellow, American Enterprise Institute, former chief credit officer for Fannie Mae flawed-property-valuation-practices-responsible-for-home-price-boom-bust/ Appraisal Institute Valuation for Mortgage Lending Slide 16
17 Two Types of Real Estate Markets Capital Markets (Buy/Sell) Fundamental Markets (Users) Debt Equity Owner Tenants Appraisals have reported values in this market for many years. ( Point in Time Valuations) Customers Appraisal Institute Valuation for Mortgage Lending Slide 17
18 Appraisal Institute Guide Note 12 Appraisal Institute Valuation for Mortgage Lending Slide 18
19 Thank You
Overview of Mortgage Lending
Chapter 1 Overview of Mortgage Lending 1 Chapter Objectives Identify historical events affecting today s mortgage industry. Contrast the primary mortgage market and secondary mortgage market. Identify
More informationThe GSEs Are Helping to Stabilize an Unstable Mortgage Market
Update on the Single-Family Credit Guarantee Business Rick Padilla Director, Corporate Relations & Housing Outreach The Changing Economy: The New Community Lending Environment June 1, 29 The GSEs Are Helping
More informationTitle XIV - Mortgage Reform and Anti-Predatory Lending Act. Short title: "Mortgage Reform and Anti-Predatory Lending Act"
Title XIV - Mortgage Reform and Anti-Predatory Lending Act Short title: "Mortgage Reform and Anti-Predatory Lending Act" Subtitles A, B, C, and E are designated as Enumerated Consumer Law under the Bureau
More informationGLOSSARY COMMONLY USED REAL ESTATE TERMS
GLOSSARY COMMONLY USED REAL ESTATE TERMS Adjustable-Rate Mortgage (ARM): a mortgage loan with an interest rate that is subject to change and is not fixed at the same level for the life of the loan. These
More informationChapter 10. The Good Old Days. The New Way. Secondary Markets. Depository Lenders in the Primary Market. Nondepository Lenders in the Primary Market
The Good Old Days Chapter 10 The Secondary Mortgage Market Banks and Savings and Loans made loans and held these loans in portfolio The interest paid on the loan was use to pay interest to the depositors
More informationA Strategic Approach to Residential Mortgage Lending
A Strategic Approach to Residential Mortgage Lending Presented by Tracy Jean Ashfield Strategic Mortgage Solutions The Consulting and Training Division of Prime Alliance Solutions, Inc. October 19, 2009
More information6/18/2015. Sources of Funds for Residential Mortgages
Sources of Funds for Residential Mortgages McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. 11-2 11-3 11-4 Formerly backbone of home mortgage finance Dominated mortgage
More informationPrincipal Lending Manager Education Curriculum Outline 40 Hours
Principal Lending Manager Education Curriculum Outline 40 Hours Utah Division of Real Estate PO Box 146711 Salt Lake City, UT 84114-6711 Subject Matter Number of Hours 1. General Mortgage Industry Knowledge
More informationMortgages and Mortgage -Backed Securiti curi es ti Mortgage ort gage securitized mortgage- backed securities (MBSs) Primary Pri mary Mortgage Market
Mortgages and Mortgage-Backed Securities Mortgage Markets Mortgages are loans to individuals or businesses to purchase homes, land, or other real property Many mortgages are securitized Many mortgages
More informationTable of Contents. Table of Contents... 1. Chapter 1 Introduction... 4. 1.1 Goals and Objectives... 4 1.2 Required Review... 5 1.3 Applicability...
... 1 Chapter 1 Introduction... 4 1.1 Goals and Objectives... 4 1.2 Required Review... 5 1.3 Applicability... 5 Chapter 2 Accountability and Monitoring... 6 2.1 Internal Controls... 6 2.2 Monitoring Underwriters...
More informationHOME BUYING101. 701.255.0042 www.capcu.org i
HOME BUYING101 701.255.0042 www.capcu.org i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended,
More informationGLOSSARY OF TERMS. Amortization Repayment of a debt in regular installments of principal and interest, rather than interest only payments
GLOSSARY OF TERMS Ability to Repay (ATR) The Ability to Repay rule protects consumers from taking on mortgages that exceed their financial means, by mandating the documentation / proof of income and assets.
More informationHOME BUYING101 TM %*'9 [[[ EPXEREJGY SVK i
HOME BUYING101 TM i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended, and should not be used,
More informationMORTGAGE DICTIONARY. Amortization - Amortization is a decrease in the value of assets with time, which is normally the useful life of tangible assets.
MORTGAGE DICTIONARY Adjustable-Rate Mortgage An adjustable-rate mortgage (ARM) is a product with a floating or variable rate that adjusts based on some index. Amortization - Amortization is a decrease
More informationChapter 10 6/16/2010. Mortgage Types and Borrower Decisions: Overview Role of the secondary market. Mortgage types:
Mortgage Types and Borrower Decisions: Overview Role of the secondary market Chapter 10 Residential Mortgage Types and Borrower Decisions Mortgage types: Conventional mortgages FHA mortgages VA mortgages
More informationMortgage Terms Glossary
Mortgage Terms Glossary Adjustable-Rate Mortgage (ARM) A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see
More informationOpening Doors For Muslim Families In America
Fe r d de i M a c We Open Doors Opening Doors For Muslim Families In America Saber Salam Vice President, Freddie Mac April 2002 Introduction The dream of homeownership is at the core of American society.
More informationA PRIMER ON THE SECONDARY MORTGAGE MARKET
ONE FANEUIL HALL MARKETPLACE BOSTON, MA 02109 TEL. 617 367-4390 FAX 617 720-0918 WWW.CITYRESEARCH.COM A PRIMER ON THE SECONDARY MORTGAGE MARKET National Community Development Initiative Meetings New York,
More informationMortgage Finance Under Basel III Raymond Natter July, 2012
Mortgage Finance Under Basel III Raymond Natter July, 2012 The Basel Committee The Basel Committee on Banking Supervision is an informal organization consisting of the chief banking regulatory authorities
More informationFirst Time Home Buyer Glossary
First Time Home Buyer Glossary For first time home buyers, knowing and understanding the following terms are very important when purchasing your first home. By understanding these terms, you will make
More informationMortgage Lending During the Great Recession: HMDA 2009
F U R M A N C E N T E R F O R R E A L E S T A T E & U R B A N P O L I C Y N E W Y O R K U N I V E R S I T Y S C H O O L O F L AW WA G N E R S C H O O L O F P U B L I C S E R V I C E N O V E M B E R 2 0
More informationA Presentation On the State of the Real Estate Crisis 1/30/2009
A Presentation On the State of the Real Estate Crisis 1/30/2009 Presented by Mike Anderson, CRMS President, Essential Mortgage, a Latter & Blum Realtors Company Immediate past president/legislative Chair
More informationFinancing Residential Real Estate
Financing Residential Real Estate Chapter 1: Finance and Investment Borrowing Money to Buy a Home Investments and Returns Types of Investments Ownership Investments Debt Investments Securities Investment
More informationTITLE I-RESIDENTIAL MORTGAGE LOAN ORIGINATION STANDARDS
TITLE I-RESIDENTIAL MORTGAGE LOAN ORIGINATION STANDARDS Residential Mortgage Origination: Adds a number of new regulations and requirements to mortgage loan originators. The bill requires originators to
More informationThis booklet was initially prepared by the Board of Governors of the Federal Reserve System. The Consumer Financial Protection Bureau (CFPB) has made
This booklet was initially prepared by the Board of Governors of the Federal Reserve System. The Consumer Financial Protection Bureau (CFPB) has made technical updates to the booklet to reflect new mortgage
More informationChapter 45. Primary and Secondary Mortgage Markets INTRODUCTION
Chapter 45 Primary and Secondary Mortgage Markets INTRODUCTION The primary mortgage market brings prospective borrowers (market demand) together with individuals, agencies and entities that have money
More informationA Consumer s Guide to. Buying a Co-op
A Consumer s Guide to Buying a Co-op A Consumer s Guide to Buying a Co-op In the United States, more than 1.2 million families of all income levels live in homes owned and operated through cooperative
More informationThe default rate leapt up because:
The financial crisis What led up to the crisis? Short-term interest rates were very low, starting as a policy by the federal reserve, and stayed low in 2000-2005 partly due to policy, partly to expanding
More informationAvoiding Bad Loans. Kentucky Department of Financial Institutions. Garry Wright. Consumer Protection Branch Manager
Avoiding Bad Loans Kentucky Department of Financial Institutions Garry Wright Consumer Protection Branch Manager Training Objectives Understanding Reverse Mortgages Avoiding predatory loans / products
More informationSales Associate Course
Sales Associate Course Chapter Thirteen Types of Mortgages & Sources of Finance Copyright Gold Coast Schools 1 Types of Mortgages FHA - Federal Housing Administration VA - Veterans Administration Conventional
More informationA Glossary of Bank Terms
A Glossary of Bank Terms Below you will find key words and definitions to help you better understand the terms used in the financial services industry. ABA American Bankers Association. Account Ownership
More informationProfessor Chris Mayer (Columbia Business School; NBER; Visiting Scholar, Federal Reserve Bank of New York)
Professor Chris Mayer (Columbia Business School; NBER; Visiting Scholar, Federal Reserve Bank of New York) Lessons Learned from the Crisis: Housing, Subprime Mortgages, and Securitization THE PAUL MILSTEIN
More informationV600 Introduction to Mortgage Lending. Robin J Wybenga, CFO, TBA Credit Union robinw@tbacu.com 231.946.7090
V600 Introduction to Mortgage Lending Robin J Wybenga, CFO, TBA Credit Union robinw@tbacu.com 231.946.7090 Introduction Objectives 1. Identify the key benefits your CU gains by offering real estate lending
More informationTitle Insurance: Protecting Your Piece of the Planet
Title Insurance: Protecting Your Piece of the Planet In today s active real estate market, there are often many questions surrounding the costs of buying, selling and refinancing a home or property. Whether
More informationSecondary Mortgage Market Policy Fannie Mae to QRM. Kevin Park PLAN 761 September 19, 2012
Secondary Mortgage Market Policy Fannie Mae to QRM Kevin Park PLAN 761 September 19, 2012 History of Mortgage Lending Traditional Bank Lending e.g., Bailey Building and Loan Association Mortgage Payments
More informationHMDA DATA ON DEMAND FREQUENTLY ASKED QUESTIONS
HMDA DATA ON DEMAND FREQUENTLY ASKED QUESTIONS About the Home Mortgage Disclosure Act (HMDA) One of the most comprehensive sources of publically available application-level information on the single-family
More informationReference: Consultative Document Revisions to the Standardised Approach for Credit Risk
Mr. Stefan Ingves Chairman Basel Committee on Banking Supervision Basel, Switzerland Reference: Consultative Document Revisions to the Standardised Approach for Credit Risk Dear Mr. Ingves: The Mortgage
More information5 Common Types of Home Loans
5 Common Types of Home Loans Copyright 2015 Platinum Home Mortgage Corporation All Rights Reserved Feel free to email, tweet, blog, and pass this ebook around the web, but please don t alter any of its
More informationLesson 13: Applying for a Mortgage Loan
1 Real Estate Principles of Georgia Lesson 13: Applying for a Mortgage Loan 2 Choosing a Lender Types of lenders Types of lenders include: savings and loans commercial banks savings banks credit unions
More informationAssumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan.
MORTGAGE GLOSSARY Adjustable Rate Mortgage (ARM): A mortgage loan with payments usually lower than a fixed rate initially, but is subject to changes in interest rates. There are a variety of ARMs that
More informationGOVERNMENT-SPONSORED ENTERPRISES
GOVERNMENT-SPONSORED ENTERPRISES This chapter contains descriptions of the data on the Government-sponsored enterprises listed below. These enterprises were established and chartered by the Federal Government
More informationFrequently Asked Questions on Residential Tract Development Lending (September 8, 2005)
Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller of the Currency Office of Thrift Supervision Frequently
More informationFinancing Residential Real Estate: SAFE Comprehensive 20 Hours
Financing Residential Real Estate: SAFE Comprehensive 20 Hours COURSE ORGANIZATION and DESIGN Roy L. Ponthier, Ph.D., Ed.D., CDEI, DREI Executive Director Module 1: Finance and Investment Mortgage loans
More informationTimothy K. Zimmerman President and CEO Of Standard Bank Monroeville, PA
Testimony of Timothy K. Zimmerman President and CEO Of Standard Bank Monroeville, PA On behalf of the Independent Community Bankers of America Before the United States House of Representatives Committee
More informationDesktop Originator/Desktop Underwriter Release Notes DU Version 9.3
Desktop Originator/Desktop Underwriter Release Notes DU Version 9.3 September 29, 2015 During the weekend of December 12, 2015, Fannie Mae will implement Desktop Underwriter (DU ) Version 9.3, which will
More informationHOMEBUYER S MORTGAGE GUIDE
WWW.WINTRUSTMORTGAGE.COM WINTRUST.COM/MYHOME HOMEBUYER S MORTGAGE GUIDE HELPFUL INFORMATION ABOUT THE MORTGAGE PROCESS TO GUIDE YOU AS YOU PURCHASE YOUR NEW HOME. www.wintrust.com/myhome WHY WINTRUST?
More informationKBW Mortgage Finance Conference. June 2, 2015
KBW Mortgage Finance Conference June 2, 2015 Forward Looking Statements This presentation contains forward looking statements within the meaning of the safe harbor provisions of the Private Securities
More informationHome equity lines of credit
What you should know about Home equity lines of credit L.F. Garlinghouse Co., Inc. The Federal Reserve Board 1 WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT If you are in the market for credit,
More informationThe FHA Does Not Produce Sustainable Homeownership
The FHA Does Not Produce Sustainable Homeownership Government Involvement in Residential Mortgage Markets Sponsored by: the Federal Reserve Bank of Atlanta Edward Pinto, Resident Fellow American Enterprise
More informationChapter 17. Financial Management and Institutions
Chapter 17 Financial Management and Institutions 1 2 3 4 Identify the functions performed by a firm s financial managers. Describe the characteristics and functions of money. Identify the various measures
More informationReNew Grant Guidelines
Brooklyn Center ReNew Buyer Incentive Program Greater Metropolitan Housing Corporation Program Summary The Economic Development Authority (EDA) of Brooklyn Center, Minnesota (EDA) has partnered with the
More informationHome Equity Lines of Credit
Table of contents The Federal Reserve Board Home Equity Plan Checklist...1 What is a home equity line of credit?... 3 What should you look for when shopping for a plan?... 4 Costs of establishing and maintaining
More informationDesktop Originator/Desktop Underwriter Release Notes DU Version 9.2
Desktop Originator/Desktop Underwriter Release Notes DU Version 9.2 October 14, 2014 Last updated December 8, 2014 During the weekend of December 13, 2014, Fannie Mae will implement Desktop Underwriter
More informationAdjustable Rate Mortgage (ARM) a mortgage with a variable interest rate, which adjusts monthly, biannually or annually.
Glossary Adjustable Rate Mortgage (ARM) a mortgage with a variable interest rate, which adjusts monthly, biannually or annually. Amortization the way a loan is paid off over time in installments, detailing
More informationHow To Understand The Mortgage Brokerage Industry
QCommission Sample Plans Mortgage Broker Industry Introduction The mortgage industry is primarily involved in providing loans to consumers. This industry is made up of many parts, governmental entities
More informationHome Equity Lines of Credit
The Federal Reserve Board What you should know about Home Equity Lines of Credit Board of Governors of the Federal Reserve System www.federalreserve.gov 0412 What You Should Know about Home Equity Lines
More informationMortgage lending is a profession that requires knowledge of
1 C h a p t e r 1 An Overview of Mortgage Lending In This Chapter Mortgage lending is a profession that requires knowledge of many disciplines, including real estate, finance, appraisal, and others to
More informationThe Obama Administration s Efforts To Stabilize The Housing Market and Help American Homeowners
The Obama Administration s Efforts To Stabilize The Housing Market and Help American Homeowners July 2013 U.S. Department of Housing and Urban Development Office of Policy Development Research U.S Department
More informationHouse Committee on Financial Services. November 29, 2012
House Committee on Financial Services Joint Hearing Before the Subcommittee on Financial Institutions and Consumer Credit and the Subcommittee on Insurance, Housing and Community Opportunity Entitled Examining
More informationLecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu
Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS Peter N. Ireland Department of Economics Boston College irelandp@bc.edu http://www2.bc.edu/~irelandp/ec261.html Chapter 2: An Overview of the Financial
More informationCFPB issues ability-to-repay and qualified mortgage rules
1 FEBRUARY 4, 2013 CFPB issues ability-to-repay and qualified mortgage rules By Raymond J. Gustini, Lloyd H. Spencer, Tiana M. Butcher, Courtney L. Lindsay II, and Pierce Han No standard is perfect, but
More informationFunding Programs: HUD Performance Funding System (operating subsidy for PHA) Private foundation operating grants
Funding Programs by Funding Tools Federal Funding Programs 1. Owner or participant investment - An investment of funds from agency operation or fees paid by a participant to offset the cost of providing
More informationAutomated valuation models: Changes in the housing market require additional risk management considerations
Automated valuation models: Changes in the housing market require additional risk management considerations Overview From 2003 to 2006, the US residential real estate market experienced an unprecedented
More informationThe Obama Administration s Efforts To Stabilize the Housing Market and Help American Homeowners
The Obama Administration s Efforts To Stabilize the Housing Market and Help American Homeowners March 2015 U.S. Department of Housing and Urban Development Office of Policy Development and Research U.S
More informationNegative Equity Home Movers. Guiding you through your next move
Negative Equity Home Movers Guiding you through your next move WHAT IS NEGATIVE EQUITY? Negative equity occurs when the value of your house is less than the amount you owe on the mortgage. That means that
More informationThe Financial Risks Associated with Mortgage-Backed Securities
The Financial Risks Associated with Mortgage-Backed Securities Global Association for Risk Professionals (GARP) Raleigh, NC Chapter Meeting October 25, 2012 Tao Pang, PhD, FRM Department of Mathematics
More informationModified Reverse Auction Plan for Troubled Assets. As proposed by Bob Reid, Bryant Miller Olive P.A. October, 2008. 2008-2009, All right reserved
Modified Reverse Auction Plan for Troubled Assets As proposed by Bob Reid, Bryant Miller Olive P.A. October, 2008 2008-2009, All right reserved The current crises facing our financial institutions are
More information2015 Survey of Credit Underwriting Practices
2015 Survey of Credit Underwriting Practices Office of the Comptroller of the Currency Washington, D.C. December 2015 Contents Introduction... 1 Part I: Overall Results... 3 Primary Findings... 3 Commentary
More informationInterest-Only Mortgage Payments and Payment-Option ARMs Are They for You?
Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller of the Currency Office of Thrift Supervision Interest-Only
More informationBreakout Session 1: Mortgage Lenders How can we Incentivize Lenders to Grant more Housing Loans?
Breakout Session 1: Mortgage Lenders How can we Incentivize Lenders to Grant more Housing Loans? Dr. Friedemann Roy IFC Financial Institutions Group Durban October 27, 2015 Work program for break-out session
More informationPresented by the Baxter Credit Union Audit Team
Presented by the Baxter Credit Union Audit Team 1. Who offers Mortgage or Home Equity Loans? 2. Do you perform your SAFE Act Audit in-house, or do you outsource it? 3. Who in the room is your Credit Union
More informationVISUAL 1 TERMS OF MODERN FINANCIAL MARKETS
VISUAL 1 TERMS OF MODERN FINANCIAL MARKETS Instruments Asset-backed security Credit default swap Bond Common stock Mortgage-backed security Mutual fund Option Futures contract Subprime mortgage Institutions
More informationIncentivizing Pre-Disaster Mitigation
Incentivizing Pre-Disaster Mitigation Philip Schneider, AIA, MMC Director Leanne Tobias, CFIRE Chair October 28, 2015 Part 1 Incentivization Overview Philip Schneider, AIA What is Incentivization? For
More informationUnit 1 Overview of the Mortgage Markets
Unit 1 Overview of the Mortgage Markets Introduction The interaction between the primary and secondary mortgage markets is the foundation of the mortgage lending process and is an essential part of our
More informationChapter 13: Residential and Commercial Property Financing
Chapter 13 Outline / Page 1 Chapter 13: Residential and Commercial Property Financing Understanding the Mortgage Concept - secured vs. unsecured debt - mortgage pledge of property to secure a debt (See
More informationImportant Terms for the Equity My Way Home Equity Line of Credit (April 2014)
Important Terms for the Equity My Way Home Equity Line of Credit (April 2014) Federally Insured by NCUA. TABLE OF CONTENTS Important Terms of Our Home Equity Line of Credit (secured by your home)... 5
More informationSupport Under the Homeowner Affordability and Stability Plan: Three Cases
Support Under the Homeowner Affordability and Stability Plan: Three Cases Family A: Access to Refinancing In 2006: Family A took a 30-year fixed rate mortgage of $207,000 on a house worth $260,000 at the
More informationSun West Overview. Privately Held Flexibility to respond to Customers needs. CONFIDENTIAL Sun West Mortgage Company, Inc.
Sun West Overview Headquartered in Cerritos, California - Sun West has been serving our nationwide client base since 1980. Our diversified loan program experience includes FHA Single Family, FHA Reverse
More informationAppraiser: a qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate.
Mortgage Glossary 203(b): FHA program which provides mortgage insurance to protect lenders from default; used to finance the purchase of new or existing one- to four family housing; characterized by low
More informationStructured Financial Products
Structured Products Structured Financial Products Bond products created through the SECURITIZATION Referred to the collection of Mortgage Backed Securities Asset Backed Securities Characteristics Assets
More informationSubject: Compliance Bulletin: Private Mortgage Insurance Cancellation and Termination
CFPB Bulletin 2015-03 Date: August 4, 2015 Subject: Compliance Bulletin: Private Mortgage Insurance Cancellation and Termination The Bureau of Consumer Financial Protection (CFPB) is issuing this compliance
More informationCommercial Mortgage Types and Decisions
Commercial Mortgage Types and Decisions Commercial mortgages & notes for existing properties not as standardized as home loans Documents are longer & more complex Often no personal liability: Legal borrower
More informationHouse Republican Housing Plan The Responsible Homeowners Act
House Republican Housing Plan The Responsible Homeowners Act Keeping Families in Their Home, Lowering Costs for All Homeowners: $5,000 Refinancing Credit: House Republicans propose to provide a $5,000
More informationWelcome! How five mortgage products of today can help you sell homes!
Welcome! How five mortgage products of today can help you sell homes! Add contiguous numbers (horizontally and vertically) so that they total 38. Each number may be used only once. 4 5 3 2 1 8 7 6 9 Replace
More informationPoint Loma Credit Union - Mortgage Rates October 22, 2015
Point Loma Credit Union - Mortgage Rates Home loans are available on residential zoned properties located in California. All applications are subject to lending criteria approval including, but not limited
More informationDEPARTMENT OF LABOR, LICENSING AND REGULATION SUBTITLE 03 - Commissioner of Financial Regulation. Chapter: 09.03.
DEPARTMENT OF LABOR, LICENSING AND REGULATION SUBTITLE 03 - Commissioner of Financial Regulation Chapter: 09.03.01 - Credit Unions Authority: Financial Institutions Article, 2-105.1, Annotated Code of
More informationResidential Mortgage Finance. Early American Mortgages. Early Mortgage Lenders
Residential Mortgage Finance Early American Mortgages Mortgages before the Great Depression Generally were interest only (non- amortizing) loans Had Loan to Value Ratios under 50 % Were short term loans
More informationTable of Contents. Table of Contents... 1. Chapter 1 Introduction... 3. 1.1 Goals & Objectives... 3 1.2 Required Review... 3 1.3 Applicability...
[ Client]... 1 Chapter 1 Introduction... 3 1.1 Goals & Objectives... 3 1.2 Required Review... 3 1.3 Applicability... 4 Chapter 2 Accountability and Monitoring... 5 2.1 Internal Controls... 5 Chapter 3
More information2011 PUBLIC POLICY PRIORITIES
2011 PUBLIC POLICY PRIORITIES 2111 Wilson Blvd., Suite 100 Arlington, VA 22201 MHI s NatIONal COMMuNIty COuNCIl The MHI National Communities Council (NCC) is the only national organization representing
More informationFin 5413: Chapter 8 Mortgage Underwriting
Fin 5413: Chapter 8 Mortgage Underwriting Some Basic Mortgage Underwriting Questions Who should you grant a loan to? How do we determine the appropriate interest rate for a loan? What is the maximum dollar
More informationWhite Paper: HB 631/SB 666 Loan Originators, Mortgage Brokers, & Mortgage Lenders
White Paper: HB 631/SB 666 Loan Originators, Mortgage Brokers, & Mortgage Lenders I. Overview The explosion in subprime lending was a major factor that led to the Great Recession from 2007 to 2009. The
More informationThe Impact of Lock-In Effects on Housing Turnover and Implications for a Housing Recovery
W RESEARCH BRIEF The Impact of Lock-In Effects on Housing Turnover and Implications for a Housing Recovery FEBRUARY 2014 TABLE OF CONTENTS SECTION I Introduction 3 SECTION II Background Lock-In Effects
More informationAPPRAISERS, APPRAISALS, & YOU: A LENDER S GUIDE TO USPAP
APPRAISERS, APPRAISALS, & YOU: A LENDER S GUIDE TO USPAP 1 2 In the lending world, the three C s (credit, capacity and collateral) are common knowledge. It is the valuation of the collateral that creates
More informationFIN-331 PHASE 2 HOMEWORK QUESTIONS (ERRATA: 10-24-2015)
FIN-331 PHASE 2 HOMEWORK QUESTIONS (ERRATA: 10-24-2015) Chapter 7: Key Terms Accrued depreciation Appraisal Comparable properties Market value Property adjustments Replacement cost Reproduction cost Restricted
More informationPoint Loma Credit Union - Mortgage Rates June 17, 2016
Point Loma Credit Union - Mortgage Rates Home loans are available on residential zoned properties located in California. All applications are subject to lending criteria approval including, but not limited
More informationNEIGHBORHOOD LAND BANK
NEIGHBORHOOD LAND BANK Purpose: Contribute to the community stabilization, revitalization and preservation of San Diego County s communities, particularly San Diego s low and moderate income communities,
More informationDavid L. Griffin, Jr. Aaron Klein PRINCIPALS
PRINCIPALS Aaron Klein Aaron Klein is the founder and co partner of Commercial Mortgage Capital, Inc. He has 15 years of commercial mortgage banking and transactional finance experience, including positions
More informationSelling Guide Announcement SEL-2011-12
Selling Guide Announcement SEL-2011-12 Updates to Refi Plus and DU Refi Plus November 15, 2011 The Federal Housing Finance Agency (FHFA) recently announced changes to the Home Affordable Refinance Program
More informationNegative Equity Home Movers. Guiding you through your next move
Negative Equity Home Movers Guiding you through your next move WHAT IS NEGATIVE EQUITY? Negative equity occurs when the value of your house is less than the amount you owe on the mortgage. That means that
More informationReverse Mortgage Glossary of Terms
Reverse Mortgage Glossary of Terms Acceleration Clause Adjustable Rate Annuity Appraisal Appreciation Available Principle Limit Change of Circumstance Closing Condemnation Correspondent Cost to Cure Credit
More information