mschuster's blog

It is easy to feel intimidated and think you couldn’t really influence any legislative changes that are coming your way.  But you don’t have to channel Mr. Smith goes to Washington in order to make your voice heard.  You don’t have to attend a $1,000 a plate fundraiser or be able to recite full pages of Black’s Law Dictionary.  There are easy ways to join in a chorus of voices, let’s start with an organization you already know.
 

Over the past few months I've had many interesting conversations with countless people about RESPA and other regulatory changes that are coming about.  But often when it comes time to step to a microphone, telephone, or keyboard many become shy or feel unqualified to share their opinions.  Is that you?  Do you have strong opinions or earnest questions about these changes, but only share them within the confines of your own office?  If so, I need to ask you a very important question... what exactly are you waiting for? 
 

Market Developments & Changes Not withstanding items 1 and 2 from our list, each of which impacts market developments and changes, markets independently develop new products, providers and standards that require regulatory changes.  It is easy to take a jaded view of this type of change, and think that regulators try to close up loopholes, business finds new ones, and the regulators again react.  And that can be true.  But often market developments are the result of innovative changes brought about by technology.  We didn’t need regulation arou

Political Realities  Ah, political realities.  They’re everywhere all the time, aren’t they?  Yes, in every organization, every group and every situation.  When something happens on a large scale, like the mortgage meltdown events, you can bet that new political realities will quickly arrive.

Scandal  We tend think of scandals as one time large events with headlines that target or pinpoint one person or a single company.  But another word for scandal throughout an entire industry or market is usually labeled a crisis.  I don’t love The Donald (as in Trump) but he predicted in early 2008 that the slippage that was only then beginning to occur in the sub-prime markets would impact the economy far beyond just banks and sub-prime borrowers.  He reminded lawmakers that the housing sector was deeply intertwined with our economy as a whole, an

Why is RESPA Reform likely here to stay and what can you do about it?  Over the next few days, we will take a look at what’s behind the drive for reforming the real estate settlement process.  Next we will explore ways that we can have a meaningful dialogue with lawmakers to help craft detailed and practical changes.

Loan originators concerned of how to keep fees below the 10% tolerance variances?  Let the consumer pick the provider!  Once the consumer selects the vendor, then the 10% fee tolerance no longer applies.  Should lenders discourage consumers from selecting their own service providers?  Absolutley not!  Not ever.  I don't think anyone would go on record in favor of LESS consumer involvement.  So, why would an originator purposefully set up the 10% tolerance hurdles if they don't have to?  If you're an originator, encourage consumer involvement

Yesterday I was talking with someone in the business who lives and works in the Kansas City metro.  After some discussions of the KC market and trading updates of people we both know and have worked with over the years, we got onto the subject of RESPA Reform and the new HUD-1 form.   We talked about the upcoming changes and how different the new form is from today’s HUD-1.  And I caught myself talking with a little bit of nostalgia about what will soon be the Old Form.  We traded war stores of learning to draw up a HUD-1 on an old DOS based system (thankfully

Without a doubt, the biggest RESPA question on everyone’s mind right now is whether or not RESPA Reform is here to stay.  In last Friday’s blog, we reviewed what would have to happen to produce legislation that would significantly slow or halt implementation of the new rule.  We saw that suspending the rule is much more complicated that a single vote in the U.S. House or the stroke of a pen.  

Did you hear what HUD Secretary Donovan said yesterday regarding the future of RESPA Reform?  He announced that the Department of HUD is committed to seeing this RESPA Reform Rule through.  Those of us who watch this issue closely have been waiting for an indication from the new HUD Secretary that would describe their views of the rule (which was published under the previous administration).