Saturday, December 23, 2017

Changes Coming to Lending and How It Will Affect You

We have all seen many changes in the mortgage industry over the past several years. More regulations and more disclosures to meet CFPB’s requirements for lenders and everyone that works for them.
For more then 20 years we have been using the same Uniform Residential Loan Application = URLA or 1003 for short. During our CE training this year we were all introduced to a NEW and improved URLA. We are going from a 4 to 5-page application to a 8-page application. The new form is more in depth and has an extensively enhanced Home Mortgage Disclosure Act = HMDA section for government monitoring. I’ve listed the changes below. It should be very interesting to see everyone's reaction when they complete this new form. I am going to keep an open mind to change and hope others will do the same.
This new form was reported to be available to use Jan 2018, but it doesn’t look like Fannie or Freddie will have their automatic underwriting systems ready for this start date. Looks like we will have a brief reprieve on the start date 7-2019. The borrower will only realize some minor changes in documentation and if you have a good loan officer they will help you complete this form and explain any changes. 
Here are some changes on the new form; 
·       Updated borrower contact information, such as cell phone number and email address.
·       Added a new military service section to assist veterans seeking and qualifying for VA loan opportunities.
·       Made it easier to identify employer and self-employment information.
·       Included fields to collect more detailed information about the property and loan purpose, including refinance types, energy improvements, and project types.
·       Added amortization types and loan features describing the mortgage and loan terms.
·       Updated the acknowledgement, agreement, and authorization sections to benefit the consumer and industry participants who use the loan application (e.g., mortgage insurers).
·       Revised government monitoring information (ethnicity and race) in accordance with the new Home Mortgage Disclosure Act requirements issued by CFPB.

The next change will be the increase loan limits for a conforming loan. In 2017 the loan limit has been $424,100 but starting on Jan 1, 2018 this will increase to $453,100 and increase of 6.8%. 
I’ve never been sure what the $100 is about as it’s much easier to have round numbers.
I think someone likes messing with us! 😊
The best part about this change, it will allow for more people to obtain cheaper financing on their conforming loans. Rates are lower then loan over this amount that are considered High Balance or Jumbo loans.


With the passing of the NEW Tax bill a couple BIG changes involved our home loans and the interest we get to deduct each year. This will now be limited to $750,000 per year. 
In addition, you will no longer be allowed to deduct the interest on your equity loan or line of credit. 

If you have one of those equity loans, line of credit etc. you will want to see about refinancing to include that equity line of credit in with your regular mortgage. Chances are you will save money with a better rate and you will be able to continue to deduct the interest on the same borrowed money! 

Getting a free mortgage analysis would be beneficial if you have this type of loan.  I can do this very quickly with just a copy of your mortgage statement on both your 1st lien and your second lien, or line of credit. 

Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts. 

Roxy Redenbaugh
ACMC Loan Consultant
Mortgage Coach
Branch Manager
NMLS #269926

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