Showing posts with label retirement. Show all posts
Showing posts with label retirement. Show all posts

Thursday, June 4, 2015



In life we always have changes, it's planning , planning and still more planning - the world didn't stop 12/31/1999 at 11:59 pm.  Will there be a learning curve for real estate agents, builders , lenders and mortgage professionals - 100%!  There's always a way of finding how to keep business moving - great ones are already doing so - PreApprovals are still part of the business.


FROM Origination News

The TRID Loophole the CPFB Says Is Legit

by Ari Karen

MAY 28, 2015 

Anyone who's closely read the nearly 1,900-page final rule for the TILA-RESPA Integrated Disclosures likely noticed a nifty loophole when it comes to how lenders can issue mortgage pre-approvals.

For everyone else, the Consumer Financial Protection Bureau recently clarified how a loan pre-approval doesn't automatically trigger TRID's three-day window for delivering initial disclosures.

The workaround was mentioned during a webinar hosted by the CFPB and Federal Reserve Board that also addressed new rules that prohibit lenders from requiring a borrower to provide verifying documentation prior to providing the Loan Estimate.

The CFPB first pointed out that TRID only prevented lenders from "requiring" such information, but that if voluntarily provided by the borrower it was permissible. Of course, the agency immediately followed up by explaining that a lender that explicitly or implicitly requires such documentation would be violating the law.

This obviously creates risks for lenders who expect to rely upon the borrowers' "voluntariness," since a borrowers' subjective belief they implicitly had to provide documentation could create risks for a lender.

However, it is only after all six pieces of information are collected that the requirement of a Loan Estimate is triggered. The CFPB also indicated that as long as a lender did not collect the six pieces of information necessary to trigger the Loan Estimate, a lender could obtain verifying documentation.

"The bureau does not believe that the definition of application will restrict creditors' ability to provide prequalification cost estimates or grant pre-approvals, because creditors could provide prequalification estimates and grant pre-approvals without obtaining all of the six elements of information that make up the definition of application," Pedro De Oliveira, counsel at the Consumer Financial Protection Bureau, said during the webinar.

Hence, as long as the lender does not, for instance, obtain the subject property address, the lender has no obligation to provide the disclosures and/or Loan Estimate.

Accordingly, those lenders that wish to provide pre-approvals may be well advised to consider making pre-approvals general, as opposed to specific to a designated property.

Ari Karen is an attorney at Offit Kurman.

Thursday, October 30, 2014

Heading Towards Retirement? Buy a Second Home!

The majority of people heading towards retirement prefer to buy a second home in calm and serene places such as Bethany beach, Ocean city, and Panama City beach. Financial experts suggest buying a second home 5 to 10 years before you retire. So, you might want to look at your options for investing if you plan on retiring in the next decade or so.

What do you gain?

One of the benefits of buying a second home well before your retirement is its ability to generate rental income. If you plan to move into your vacation home once you retire, passive income generated from renting it will certainly be useful. Another benefit is that you get to live in a calm place which will keep you healthy.

If you are planning to buy a second home in Bethany beach, mortgage lenders like Steve Morgan can help you to qualify for a second home loan even under stringent regulations. They usually suggest you to make a down payment greater than 20 percent of the price. This significantly slumps down the monthly payment for vacation home and easily allows you to qualify for the mortgage.

If you feel that investing in a vacation home is what you need and afford right now, then by all means do. Having a home where you can spend your post-retirement days in peace is a dream for many and truth for a select few.