Nationwide Title Clearing (NTC) Encourages Congress to Recommend Safe Harbor For Proposed QM Rule


PALM HARBOR, Fla. (PRWEB) August 07, 2012

Two alternatives currently under consideration by the Consumer Financial Protection Bureau (CFPB) will determine the availability of affordable mortgages to many American families. Nationwide Title Clearing, Inc. (NTC), a leader in the post-closing mortgage industry and an advocate for best practices and regulations that standardize its industry and benefit homeowners, feels that there is one clear choice to help consumers realize the dream of homeownership while simultaneously protecting lenders.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) established minimum underwriting standards for mortgages and prohibited the origination of home loans unless the lender first confirms, using exact standards, that the borrower can repay the mortgage. Lenders that do not fulfill this requirement will be potentially liable for the life of the loan. However, Congress also recognized that properly underwritten loans should not be saddled by this additional liability, and permitted the CFPB to define a class of loans known as Qualified Mortgages (QM).

The proposed rule offers two potential options for constructing the QM a safe harbor or a rebuttable presumption of compliance. Only one will be adopted in the final rule, and a decision is expected by the CFPB after the November presidential election. (1) NTC believes that Congress should encourage the CFPB to implement the QM as a safe harbor to ensure that a large number of American families will not be cut off from access to safe and affordable mortgages.

There are vast differences between the two alternatives. (2)

Under a legal safe harbor, if the creditor has originated a loan by following the guidelines under the QM, there will be certain protections from litigation. Under a safe harbor, litigation will only consider whether the QM guidelines have been met.

A rebuttable presumption of compliance means that, although the lender is assumed to have assured the consumers ability to repay the mortgage, the consumer can still sue for reasons outside the normal underwriting process, which places a burden of proof on the lender to prove in court that it met the QM guidelines, and potentially allows for opinions by judges on what should have been considered in the underwriting process. Under a rebuttable presumption of compliance with Qualified Mortgages, the consumer can also litigate against a lender using their lack of ability to repay the mortgage as a foreclosure defense, even if the lender followed the underwriting guidelines issued by the CFPB.

With a safe harbor, costs will be reduced for qualified borrowers and it will decrease the chance that lenders will leave the market, said John Hillman, NTCs CEO. Under the rebuttable presumption of compliance, lenders will be apt to be ultra conservative in originating loans, potentially making homeownership less affordable to many Americans [A rebuttable presumption] also means the costs of the resulting litigation will ultimately be paid for by all borrowers through increases in all loan rates to account for the future potential litigation.

A strong legal safe harbor provides the best way of achieving congressional intent to balance consumer safeguards with access to credit, Hillman explained. Otherwise, a severe shortage of affordable mortgage credit to middle class families could occur.

Nationwide Title Clearing, Inc. says it will continue to advocate for legislation and regulations that will standardize the real estate market and mortgage industry for the benefit of homeowners.

We welcome the opportunity to work with members of Congress and their staff to identify and incorporate industry best practices into a new, national standard for residential mortgage servicing, Hillman said. We are committed to providing feedback to help avoid excessively burdensome legislation and regulation for mortgage lenders and servicers because those kinds of restrictions ultimately have a negative impact on homeowners.

(1) http://www.housingwire.com/news/new-data-induces-cfpb-seek-comments-qualified-mortgage

(2) realestatemarbles.com/campga/2012/07/06/government-affairs-update-ability-to-repay-commentary-due/

About Nationwide Title Clearing, Inc.

Headquartered in Palm Harbor, Fla., Nationwide Title Clearing, Inc. (NTC) was founded in 1991 and has since grown to become the nations leading national post-closing services provider for the residential mortgage industry. In addition to supporting lenders, servicers and investors, including eight of the top 10 residential mortgage servicers in the country, the companys land records and document experts are able to track and fulfill county document requirements for close to 3,600 recording jurisdictions nationwide. NTC specializes in providing property reports, lien release and assignment services, final document tracking, document retrieval, imaging and other custom business solutions. For more information, visit the companys website at http://www.nwtc.com.







New Proposed Bill Would Offer Temporary Visas for Foreign Residential Real Estate Investors

Article by Darren Silver

New Proposed Bill Would Offer Temporary Visas for Foreign Residential Real Estate Investors – Law – National, State, Local

Search by Author, Title or Content

Article ContentAuthor NameArticle Title

Home
Submit Articles
Author Guidelines
Publisher Guidelines
Content Feeds
RSS Feeds
FAQ
Contact Us

A new legislative bill introduced by Senators Charles Schumer (D-NY) and Mike Lee (R-UT) proposes to offer a temporary residency visa to immigrants who spend at least $ 500,000 on a home in the United States. This bill, which received bipartisan support, will soon be considered by the U.S. Congress as a new way to stimulate a struggling U.S. housing market.

While not the same as the noted EB-5 Immigrant Investor visa program, which offers a path to citizenship for foreign nationals who invest at least $ 500,000 in a U.S. business enterprise that leads to at least 10 full-time jobs for U.S. workers, the newly proposed housing bill will provide a new and novel method for foreign nationals to enter and remain in the U.S. through investment.

The U.S. housing market is currently struggling; this new, proposed bill may give a boom to this market. In areas of the U.S. especially hurt by the recession, such as South Florida, Southern California and Arizona, many foreign nationals are currently purchasing homes. Immigrants from China, Canada and other nations are now taking advantage of favorable exchange rates and reasonable real estate costs in these and other areas of the U.S. In fact, just over 5 percent of all homes bought in Miami in July 2011 were purchased by foreign buyers. In Phoenix, that number is just a bit lower, at 4.3 percent. For the year ending in March 2011, foreign buyers were responsible for up to $ 82 billion in investments in U.S. real estate properties, an increase from the $ 66 billion reported the year before.

Current market analysts see many advantages to the U.S. economy from the Schumer-Lee bill, if approved by Congress and the President. Under the proposed bill, immigrants will need to invest at least $ 500,000 in U.S. residential real estate. This can be a house, condo or townhouse. Applicants are given the opportunity to invest part of the required $ 500,000 on a single home and the rest on other residential real estate property, such as a rental home.

These investors would then be given temporary, three-year visas to enter the U.S. Under this particular visa, however, foreign investors will not be able to work. They will have to obtain other visas to be able to work while in the U.S. (such as the EB-5 Immigrant Investor Visa). Supporters of the bill believe it will help spearhead growth in the U.S. real estate market, which has been struggling since the housing market bubble burst earlier this decade.

The bill has received support from many high-profile individuals, including Warren Buffet who recently told Charlie Rose (of PBS) that, “If you wanted to change your immigration policy so that you let 500,000 families in, but they have to have a significant net worth and everything, you’d solve things very quickly.”

About the Author

Darren Silver – Darren Silver & Associates is one of the largest and most respected Immigration Firms in the Country. For over 15 years we have represented clients from around the world, including Professionals, large multinational corporations, small businesses, celebrities, athletes, and those individuals who require immigration assistance for their families.

Use and distribution of this article is subject to our Publisher Guidelines
whereby the original author’s information and copyright must be included.

Darren Silver



RSS Feed


Report Article


Publish Article


Print Article


Add to Favorites

Article Directory
About
FAQ
Contact Us
Advanced Search
Privacy Statement
Disclaimer

GoArticles.com ? 2012, All Rights Reserved.

Darren Silver – Darren Silver & Associates is one of the largest and most respected Immigration Firms in the Country. For over 15 years we have represented clients from around the world, including Professionals, large multinational corporations, small businesses, celebrities, athletes, and those individuals who require immigration assistance for their families.












Use and distribution of this article is subject to our Publisher Guidelines
whereby the original author’s information and copyright must be included.

Find More Residential Real Estate Investors Articles