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The 3% Rule – Part Two

As a follow up to the article about the 3% rule (http://divorce-mortgage.blogspot.com/2013/07/the-we-didnt-think-this-one-through-rule.html), we have received a clarification. The CFPB has recently announced that Loan Officer Compensation (LO Comp) will not count against the 3% limitation for bankers but it will count against the limit for brokers. This is the proverbial “nail in the coffin” for […]

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The "We Didn't Think This One Through" Rule

New rules from the *CFPB will dramatically affect the ability of all borrowers to obtain mortgages. This post will analyze and expose the devastating effects of a second rule – the 3% rule. The “We-Didn’t-Think-This-One-Through-Just-Ask-Texas-Mortgage-Originators” 3% Rule The bureau’s general guideline reads No excess upfront points and fees: A Qualified Mortgage limits points and fees […]

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New CFPB Rules: #1 - The 43% Rule . . . er, um, Scratch That - It's the 57% Rule

Richard Cordray of the CFPB declares "All American borrowers are stupid and we have to save them."     Well, he didn't use those exact words . . .   The CFPB is the Consumer Finance Protection Bureau created by Dodd-Frank [Wall Street Reform and Consumer Protection Act] (2010) to regulate America’s finance industry. It […]

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NEW MORTGAGE RULES FROM THE CFPB

NEW RULES FROM DODD-FRANK'S CONSUMER FINANCE PROTECTION BUREAU ABOUT TO DEVASTATE AMERICA AND USHER IN A NEW DARK AGE Okay, that’s a bit dramatic. But, it’s not totally untrue. (How’s that for word-smithing!)   The CFPB is the Consumer Finance Protection Bureau created by Dodd-Frank [Wall Street Reform and Consumer Protection Act] (2010).   The […]

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New Mortgage Guidelines Squeeze Divorcing Borrowers Perhaps the headline title doesn’t sound urgent enough. So, how about this?  Fewer Divorced Borrowers Qualify for Home Loans  or Good Luck Getting A Mortgage If You’re Divorced Highlights – ALERT – URGENT ALERT!   -       No more 3 months of “pay history” for child or spousal support to […]

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Qualified Assumptions - Is There Such A Thing?

Here is an email I received from a family law attorney last week. She succinctly stated the particulars of a case and then generalized the questions - perfect for a format like this. It deals with what some people are calling Qualified Assumptions (QA's). Hi Noel, I hope you are doing well. I had an […]

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Texas Cash Outs - Follow Up Questions

Thank you for the great feedback on last week’s Texas Cash Out article. A few, very good questions have come out of last week's post (http://divorce-mortgage.blogspot.com/2012/08/do-you-know-facts-about-texas-cash-out.html) and I would like to address them here. What is the difference between an EQUITY LIEN and an OWELTY LIEN? An EQUITY LIEN means cash has been paid to someone on […]

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DO YOU KNOW THE FACTS ABOUT TEXAS CASH OUT FINANCING? …and how it affects divorcing homeowners… Noel Cookman, 2012-08-22, Grapevine, Texas Much of my time these days is consumed by two retired politicians, Dodd (retired and banned from lobbying for another few months) and Frank (finishing out his last term). I have my own nicknames for […]

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The Effect of Dodd-Frank on Divorcing Citizens Part 3: Appraisals and Property Valuation Dodd-Frank (Wall Street Reform and Consumer Protection Act) is the most sweeping legislation affecting the financial industry to come out of congress since Glass-Steagall (The Banking Act of 1933). Not even its repeal with Gramm-Leach-Bliley Act in 1999 comes close. As Charlie […]

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Fannie Strikes Again: New Appraisal Regs Increase Costs and Wait Times

BUREAUCRATS STRIKE AGAIN - NEW APPRAISAL REGS INCREASE COSTS AND WAIT TIMESOnce again, Fannie and Freddie have come up with a massive bureaucracy which legitimacy is suspect and has no clear path to usefulness. UAD and UCDP compliance increases costs of appraisals and how long it takes to obtain one. Definition: This new Uniform Appraisal […]

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