Pete Mills’ Post

Sharing valuable perspectives from Pete Mills on the CFPB's narrative about the mortgage servicing industry. Understanding the full context is essential—especially considering the proactive role servicers have played in aiding millions during the pandemic. Let’s encourage transparency and accuracy in our discussions to further enhance consumer experiences. #MortgageServicing #HousingMarket #ConsumerProtection #IndustryInsights

“Under a bi-merge, first-time homebuyers who have thin files or are new-to-credit could become unscorable or, if they are scored at all, could be charged a higher interest rate than they would otherwise.” During this year's Mortgage Bankers Association conference, TransUnion shared concerns that the new bi-merge credit reportmight not be as beneficial as it seems, and it could potentially harm consumers. Here's what they shared: 🔒 Impact on Eligibility: Moving to a bi-merge system (using only two credit reports) could render around two million consumers ineligible for government-sponsored enterprise (GSE) mortgages. Gaps in lender reporting can lead to an incomplete and inaccurate assessment of borrowers, particularly if the most favorable credit data is excluded. 💰 Increased Interest Costs: Approximately 600,000 new mortgage borrowers annually might end up paying more in interest under the bi-merge system, potentially costing them an additional $6,600 over the life of their mortgage. 🌍 Disproportionate Impact: Those most likely to be affected by this change are consumers with credit scores around 620, including many Black, Hispanic, low- to moderate-income, and first-time homebuyers, who are already 50% over-represented in this range. TransUnion's experts warn that this shift may unintentionally exclude creditworthy borrowers while increasing default risk. Additionally, the costs of implementing this change could potentially be passed on to consumers, potentially overshadowing any minor savings. Read Article: https://bit.ly/401xDFf. #MortgageChanges #ConsumerProtection #Homeownership #creditreporting

“Under a bi-merge, first-time homebuyers who have thin files or are new-to-credit could become unscorable or, if they are scored at all, could be charged a higher interest rate than they would otherwise.” During this year's Mortgage Bankers Association conference, TransUnion shared concerns that the new bi-merge credit reportmight not be as beneficial as it seems, and it could potentially harm consumers. Here's what they shared: 🔒 Impact on Eligibility: Moving to a bi-merge system (using only two credit reports) could render around two million consumers ineligible for government-sponsored enterprise (GSE) mortgages. Gaps in lender reporting can lead to an incomplete and inaccurate assessment of borrowers, particularly if the most favorable credit data is excluded. 💰 Increased Interest Costs: Approximately 600,000 new mortgage borrowers annually might end up paying more in interest under the bi-merge system, potentially costing them an additional $6,600 over the life of their mortgage. 🌍 Disproportionate Impact: Those most likely to be affected by this change are consumers with credit scores around 620, including many Black, Hispanic, low- to moderate-income, and first-time homebuyers, who are already 50% over-represented in this range. TransUnion's experts warn that this shift may unintentionally exclude creditworthy borrowers while increasing default risk. Additionally, the costs of implementing this change could potentially be passed on to consumers, potentially overshadowing any minor savings. Read Article: https://bit.ly/3M7F8EZ. #MortgageChanges #ConsumerProtection #Homeownership #creditreporting

Behind every simple question there's probably a complicated answer and this is probably the case here. But if we are to listen to the mass-media financial news and reports, we're told the the consumer is strong and the housing market is resilient. Perhaps it's in a bit of a gridlock right now, but housing and borrowers are strong. Or so we're told. So why than did the FHA just announce an extension of the Covid-19 program as "a new loss mitigation option of FHA-insured, single-family forward mortgages to assist families who are facing financial hardship due to mortgage payment delinquencies. The new initiative, known as the Payment Supplement, offers mortgage servicers an additional tool to alleviate the burden on borrowers by temporarily reducing their monthly mortgage payments by up to 25%, without altering the current interest rate on their mortgage". Announcements like this have a special meaning to me as someone that buys and invests in mortgage (promissory) notes secured by real estate. Many of the notes that I've had sent to me for consideration recently have been caught up in some sort of moratorium and has been the reason I've passed on looking at owner-occupied notes and have just stuck to notes created on unimproved land. But none the less, I end up wondering why. What is the FHA seeing that is not being reported in the financial media? Everything is great.....right? https://lnkd.in/gAzN7rE2

“Under a bi-merge, first-time homebuyers who have thin files or are new-to-credit could become unscorable or, if they are scored at all, could be charged a higher interest rate than they would otherwise.” During this year's Mortgage Bankers Association conference, TransUnion shared concerns that the new bi-merge credit reportmight not be as beneficial as it seems, and it could potentially harm consumers. Here's what they shared: 🔒 Impact on Eligibility: Moving to a bi-merge system (using only two credit reports) could render around two million consumers ineligible for government-sponsored enterprise (GSE) mortgages. Gaps in lender reporting can lead to an incomplete and inaccurate assessment of borrowers, particularly if the most favorable credit data is excluded. 💰 Increased Interest Costs: Approximately 600,000 new mortgage borrowers annually might end up paying more in interest under the bi-merge system, potentially costing them an additional $6,600 over the life of their mortgage. 🌍 Disproportionate Impact: Those most likely to be affected by this change are consumers with credit scores around 620, including many Black, Hispanic, low- to moderate-income, and first-time homebuyers, who are already 50% over-represented in this range. TransUnion's experts warn that this shift may unintentionally exclude creditworthy borrowers while increasing default risk. Additionally, the costs of implementing this change could potentially be passed on to consumers, potentially overshadowing any minor savings. Read Article: https://bit.ly/40fhV9E. #MortgageChanges #ConsumerProtection #Homeownership #creditreporting

“Under a bi-merge, first-time homebuyers who have thin files or are new-to-credit could become unscorable or, if they are scored at all, could be charged a higher interest rate than they would otherwise.” During this year's Mortgage Bankers Association conference, TransUnion shared concerns that the new bi-merge credit reportmight not be as beneficial as it seems, and it could potentially harm consumers. Here's what they shared: 🔒 Impact on Eligibility: Moving to a bi-merge system (using only two credit reports) could render around two million consumers ineligible for government-sponsored enterprise (GSE) mortgages. Gaps in lender reporting can lead to an incomplete and inaccurate assessment of borrowers, particularly if the most favorable credit data is excluded. 💰 Increased Interest Costs: Approximately 600,000 new mortgage borrowers annually might end up paying more in interest under the bi-merge system, potentially costing them an additional $6,600 over the life of their mortgage. 🌍 Disproportionate Impact: Those most likely to be affected by this change are consumers with credit scores around 620, including many Black, Hispanic, low- to moderate-income, and first-time homebuyers, who are already 50% over-represented in this range. TransUnion's experts warn that this shift may unintentionally exclude creditworthy borrowers while increasing default risk. Additionally, the costs of implementing this change could potentially be passed on to consumers, potentially overshadowing any minor savings. Read Article: https://bit.ly/3Say5Ps. #MortgageChanges #ConsumerProtection #Homeownership #creditreporting

Have you recently applied for a mortgage and instantly become bombarded with spam calls? The credit bureaus have been selling your information as a 'trigger lead' without your consent. New legislation is being introduced to prevent this predatory practice! Here is a short article from The National Association of Mortgage Brokers (NAMB) with more details. Washington, D.C., February 7, 2024 - The National Association of Mortgage Brokers (NAMB [api.neonemails.com]), the volunteer-led, member-driven voice of the mortgage industry representing the interests of mortgage professionals and home buyers for the past 50 years, announces its support of Rep. John Rose (R-TN) and Rep. Ritchie Torres (D-NY) recently introduced trigger leads legislation. This legislation would end the dangerous practice of trigger leads, which hurts consumers and damages the overall mortgage marketplace. Trigger leads occur when a consumer applies for a mortgage, and the inquiry to credit by the lender is a trigger that notifies the credit bureau that the consumer is interested in applying for financing. Trigger leads are then sold by the credit bureaus to data brokers (including other lenders) without the consumer's knowledge or approval. Consumers are then often bombarded with hundreds of calls that confuse them and seek to lure them away from their chosen lenders. This bill will take the place of previously filed bills (H.R. 2656 and H.R. 4198) and will mirror the language in the previously introduced Senate Bill, S.3502, by Senator Jack Reed (D-RI) which prohibits a consumer reporting agency from furnishing a trigger lead unless the third party certifies to the consumer reporting agency that the third party has a current relationship with the consumer. The bill is tailored to give consumers more control over the information they receive as part of the homebuying process and eliminate trigger lead abuses while preserving their use in appropriately limited circumstances. “NAMB is honored to continue working with members of Congress on this critical legislation, and today we hope these efforts will help many people across the nation to end this terrible practice that places undue hardships on consumers, mortgage professionals, and the entire marketplace,” said NAMB President Valerie Saunders. “NAMB and its members have been working on this issue for the past three congresses. We are encouraged by the ongoing efforts of Rep. Rose and Rep. Torres, as well as members of the Senate,” added Saunders.

DID YOU KNOW that in 2023, over 12% of all mortgage applicants nationwide were denied? That’s right! According to findings published by the Consumer Financial Protection Bureau and the Federal Reserve, only 88% of applicants had their mortgage approved. Of those approved, even fewer actually closed! (Previous years’ data reflected similar findings.) While there are many legitimate, and likely invalid reasons for this rejection rate, I can tell you this; for the past 12 years, I have been tracking our borrowers’ loan approval and closing ratios. At Mortgage Wealth Advisors, we consistently close over 95% of all applications taken. Why are our closing rates so much higher than the national average? There are many reasons: 1) Many Big-Box Lenders employ marginally qualified loan officers with the minimal required training. Many of them do not know how to structure mortgage loans to ensure a loan is approved. Many others, as the saying goes, simply throw applications against the wall to see if they stick! 2) At Mortgage Wealth Advisors, we encourage our clients to begin working with us well before they even find a home to purchase! An ounce of preparation is worth a pound of cure; and reviewing our clients’ qualifications early allows us to position them for success. 3) With 30 years of mortgage industry experience, I can foresee where problems can arise. I help my clients address molehills before they become mountains and navigate around the landmines that often blow up transactions. Plus, with our Mortgage Planning Approach, our borrowers receive tailored financial advice to ensure their mortgage matches their unique needs, complements their lifestyle, and helps them obtain their financial goals. These are among the many reasons why our motto is, “The Right Mortgage Today, For Your Family’s Wealth and Security Tomorrow.”