In a recent judgment, the U.S. Supreme Court ruled that a second mortgage on an “underwater” home cannot be treated invalid during bankruptcy. To explain what this recent win means and how it affects lenders, it’s important to understand the history behind the concept of lien stripping. This means that homeowners who file for Chapter 7 bankruptcy are eligible to…
June 2015
Imagine putting yourself in the borrower’s shoes and facing a 2.79% fixed rate, with three and a half years still remaining on the term. What if you were quoted a $50,000 penalty for paying the remainder of the mortgage? This seems off the charts, but unfortunately, it happens more often than people realize. Cases like this can happen every day,…
Being in the lending marketplace requires an awareness of all the regulatory rules and evolving information in the industry, and this summer is no exception. The most important issue on the mortgage landscape this summer is the TRID or the TILA-RESPA Integrated Disclosure. The basic purpose of this rule is to roll together four currently existing disclosures under one umbrella….