9/29/2021

Handstands at the beach






Even the IRS is going digital
4506c now has AI scanning capability.


The IRS is modernizing 4506-C tax return request processing. This change offers much needed automation advances to the current manual process, which will greatly improve efficiency in response to the mortgage industry’s transcript needs.

The first step in this effort will be the installation and implementation of Optical Character Recognition (OCR) software.

That means a computer will soon be seeing and reading these requests – not people! As a result, the form must be “clean” and completed properly. 

No cross outs

No line throughs

Sign inside the box

Best practice is to type everything, 

or have your LOS system fill in automatically

Social security number must be perfect

One name per form even if they file jointly

Name has to match what is on the IRS return


Only one form per person is allowed. You must complete a separate form for co-borrowers.

 

The form must be clear of any editing marks. You are not allowed to circle or add notes to the form.

 

Only the specific transcripts, tax years, and/or taxpayers that need to be processed should be identified.

 

The data must be listed only on the assigned lines.

Credit Plus will no longer be able to edit the form in any manner. What we receive from our lender clients on Form-4506-C is what we will send to the IRS and what you, in turn, will get.
 

Don’t delay 4506-C processing!

Forms not completed to IRS standards probably will be rejected.

Hopefully this is one more piece of the home loan application that gets pedal to the medal speedy fast. I love closing your mortgage fast.


Have a Great Day!

Be joyful.

Handstands are a great way to improve your happiness. Start with practicing against a wall. Next try some on grass or sand for a soft landing. Once you can hold for a few seconds your core and arms get great exercise. Your mind and heart receive a rush that is invigorating.


C G Barbeau

NMLS 324982

(949)   784- 9699  7 days a week


Posted by

9/25/2021

FHA Loan Advantages

Posted by

9/14/2021

Small House White Picket Fence

 














Dear Ms. Sandra L. Thompson:

Acting Director Federal Housing Finance Agency

"U.S. Department of the Treasury (Treasury) and Federal Housing Finance Agency (FHFA) today agreed to suspend certain requirements that were 

added on January 14, 2021 to the Preferred Stock Purchase Agreements 

(PSPAs) between Treasury and each of 

Fannie Mae and Freddie Mac (the Enterprises).  

FHFA will continue to measure, manage, 

and monitor the financial and operational risks of the Enterprises to ensure that they operate in a safe and sound manner and consistent with the public interest. 

 During the suspension, FHFA will review 

the suspended requirements and consult with 

Treasury on any recommended revisions.  

These suspensions do not affect the 

Enterprises’ ability to build or retain capital.

The suspension of these PSPA requirements 

recognizes that FHFA has the authority and 

responsibility for the Enterprises’ safety and soundness 

and to foster housing finance markets that 

support homeownership and is not intended to 

stimulate aggregate housing demand given 

current conditions in the housing market.

Home prices accelerated rapidly in past nineteen months, 

with the annual rate of national home price 

growth at multi-decade highs. 

Markets are more stable than early predictions 

of foreclosures during the start of the pandemic.

The U.S. residential housing market today 

suffers inadequate housing supply.  

To promote housing stability, we need to build more product.

 

winter landscape with snow











Does keeping the GSE’s on under conservatorship 

(since 2008) make sense today? 

Could funds be better put into building low to moderate income housing?

The U.S. Department of the Treasury (Treasury) provides Fannie Mae and Freddie Mac with financial support through the Senior Preferred Stock Purchase Agreements (SPSPAs), which were executed on September 7, 2008, one day after Fannie Mae and Freddie Mac entered conservatorships (“Original Agreements”).  

The SPSPAs were designed to ensure that Fannie Mae and Freddie Mac, respectively: (i) provide stability to the financial markets; (ii) prevent disruptions in the availability of mortgage finance; and (iii) protect the taxpayer.  

The GSE’s make quarterly dividend payments to Treasury, provide Treasury with a Liquidation Preference, and beginning in 2010 pay Treasury a periodic commitment fee that reflects the market value of the outstanding Treasury commitment, as well as Stock Warrants for the purchase of common stock representing 79.9% of the common stock of Fannie Mae and Freddie Mac, respectively, on a diluted basis.

September 2019 Fannie Mae and Freddie Mac were permitted to maintain capital reserves of $25 billion and $20 billion, respectively. 

 

What do we want our government to spend our tax dollars on? I want to see plans to build homes for those families and veterans who are homeless. I wish for less Federal grants to developers and more local community small infill housing in all variety of neighborhoods.

lavish library in Budapest







Metro Library in Budapest

Saving historic buildings for posterity

 

Posted by

9/13/2021

Colorado Mortgage Laws

 







Colorado mortgage loan laws

What is the highest amount the board may fine an individual when finding misconduct through an investigation for the first administrative proceeding?

 

The board, upon its own motion, may, and, upon the complaint in writing of any person, shall, investigate the activities of any licensee or any individual who assumes to act in such capacity within the state. In addition to any other penalty that may be imposed pursuant to this part 9, any individual violating any provision of this part 9 or any rules promulgated pursuant to this article may be fined upon a finding of misconduct by the board as follows: (I) In the first administrative proceeding, a fine not in excess of one thousand dollars per act or occurrence; (II) In a second or subsequent administrative proceeding, a fine not less than one thousand dollars nor in excess of two thousand dollars per act or occurrence.

 

What is the timeframe allowed for those wanting to file exceptions to the board's initial decision?

 

Any party wishing to file exceptions shall adhere to the following timelines: Code of Colorado Regulations 27 1. If no transcripts are ordered, exceptions are due within thirty days from the date on which the Board mails the initial decision to the parties. Both parties' exceptions are due on the same date. 2. If transcripts are ordered by either party, the following procedure shall apply. Upon receipt of all transcripts identified in all designations of record and supplemental designations of record, the Board shall mail notification to the parties stating that the transcripts have been received by the Board. Exceptions are due within thirty days from the date on which such notification is mailed. Both parties' exceptions are due on the same date.

What does the board do when a violation may fall within the jurisdiction of the criminal justice system?

 

(9) When the board or the division becomes aware of facts or circumstances that fall within the jurisdiction of a criminal justice or other law enforcement authority upon investigation of the activities of a licensee, the board or division shall, in addition to the exercise of its authority under this part 9, refer and transmit such information, which may include originals or copies of documents and materials, to one or more criminal justice or other law enforcement authorities for investigation and prosecution as authorized by law.

 

What dictates where the proceedings for disciplinary action is held?

 

Proceedings shall be held in the county where the board has its office or in such other place as the board may designate. If the licensee is employed by another licensed mortgage loan originator or by a real estate broker, the board shall also notify the licensee's employer by mailing, by first-class mail, a copy of the written notice required under section 24-4-104 (3), C.R.S., to the employer's last-known business address.

 

wheat field with dark sky








Which of the following is NOT a possible action by the board when it is made known that a licensee has not disclosed a potential conflict of interest to all parties?

 

The board has the power to impose a fine, censure a licensee, place the licensee on probation and set the terms of probation, order restitution, order payment of actual damages, or suspend or revoke a license when finding that the licensee or applicant has performed, is performing, or is attempting to perform any of the following:...(e) Acting for more than one party in a transaction without disclosing any actual or potential conflict of interest or without disclosing to all parties any fiduciary obligation or other legal obligation of the mortgage loan originator to any party; (f) Representing or attempting to represent a mortgage loan originator other than the licensee’s principal or employer without the express knowledge and consent of that principal or employer

\

 

What dictates where the proceedings for disciplinary action is held?

 

Proceedings shall be held in the county where the board has its office or in such other place as the board may designate. If the licensee is employed by another licensed mortgage loan originator or by a real estate broker, the board shall also notify the licensee's employer by mailing, by first-class mail, a copy of the written notice required under section 24-4-104 (3), C.R.S., to the employer's last-known business address.

What must a licensee, who is under another mortgage loan originator’s employment, do when receiving deposit money from a borrower?

 

The board has the power to impose a fine, censure a licensee, place the licensee on probation and set the terms of probation, order restitution, order payment of actual damages, or suspend or revoke a license when finding that the licensee or applicant has performed, is performing, or is attempting to perform any of the following:...In the case of a licensee in the employ of another mortgage loan originator, failing to place, as soon after receipt as is practicably possible, in the custody of that licensed mortgage loan originator-employer any deposit money or other money or fund entrusted to the employee by any person dealing with the employee as the representative of that licensed mortgage loan originator-employer; Failing to account for or to remit, within a reasonable time, any moneys coming into his or her possession that belong to others, whether acting as a mortgage loan originator, real estate broker, salesperson, or otherwise, and failing to keep records relative to said moneys, which records shall contain such information as may be prescribed by the rules of the board relative thereto and shall be subject to audit by the board;

To whom does the board make a request on behalf of the people of the state regarding a violation that affects the public?

 

The board may request that an action be brought in the name of the people of the state of Colorado by the attorney general or the district attorney of the district in which the violation is alleged to have occurred to enjoin a person from engaging in or continuing the violation or from doing any act that furthers the violation. In such an action, an order or judgment may be entered awarding such preliminary or final injunction as is deemed proper by the court. The notice, hearing, or duration of an injunction or restraining order shall be made in accordance with the Colorado rules of civil procedure.

 

Which of the following is NOT a possible action by the board when it is made known that a licensee has not disclosed a potential conflict of interest to all parties?

 

The board has the power to impose a fine, censure a licensee, place the licensee on probation and set the terms of probation, order restitution, order payment of actual damages, or suspend or revoke a license when finding that the licensee or applicant has performed, is performing, or is attempting to perform any of the following:...(e) Acting for more than one party in a transaction without disclosing any actual or potential conflict of interest or without disclosing to all parties any fiduciary obligation or other legal obligation of the mortgage loan originator to any party; (f) Representing or attempting to represent a mortgage loan originator other than the licensee’s principal or employer without the express knowledge and consent of that principal or employer

 

What does the board do when a violation may fall within the jurisdiction of the criminal justice system?

 

(9) When the board or the division becomes aware of facts or circumstances that fall within the jurisdiction of a criminal justice or other law enforcement authority upon investigation of the activities of a licensee, the board or division shall, in addition to the exercise of its authority under this part 9, r

 

If an individual has an inactive license, what are they still required to stay current 4on in order to renew their license?

 

continuing education courses

errors and omissions insurance

There are no requirements.

surety bond

Individuals with inactive licenses shall renew their license annually in the manner set forth in Rule 4.1. Individuals with inactive licenses are not required to maintain compliant errors and omissions insurance or a compliant surety bond, but they are required to stay current on all continuing education requirements in order to renew their license. The fee for reinstatement is one and one half times the amount of the current renewal fee.

Which of the following answers would make this statement NOT TRUE? The board may deny an application if the applicant has within the last five years been denied to practice as _________ because of misrepresentation.

 

A notary

a real estate salesperson

an investment advisor

an attorney

Except as otherwise set forth in this part 9, within the last five years, had a license, registration, or certification issued by Colorado or another state revoked or suspended for fraud, deceit, material misrepresentation, theft, or the breach of a fiduciary duty, and such discipline denied the person authorization to practice as: A mortgage broker or a mortgage loan originator; A real estate broker, as defined by section 12-61-101 (2); (III) A real estate salesperson; (IV) A real estate appraiser, as defined by section 12-61-702 (11); (V) An insurance producer, as defined by section 10-2-103 (6), C.R.S.; (VI) An attorney; (VII) A securities broker-dealer, as defined by section 11-51-201 (2), C.R.S.; (VIII) A securities sales representative, as defined by section 11-51-201 (14), C.R.S.; (IX) An investment advisor, as defined by section 11-51-201 (9.5), C.R.S.; or (X) An investment advisor representative, as defined by section 11-51-201 (9.6), C.R.S.;

If a licensee fails to maintain current contact information, what action, if any, may the board take?

 

The board may request an investigation of the mortgage loan originator's application files.

The board will not take action in this case.

The board may require the mortgage loan originator to provide written documentation of his / her current contact information and a formal apology sent to the Board of Mortgage Loan Originators.

The board may inactivate a state license or registration..

The board may inactivate a state license or a registration with the nationwide mortgage licensing system and registry when a licensee has failed to:…(c) Maintain current contact information, surety bond information, or errors and omissions insurance information as required by this part 9 or by any rule of the board that directly or indirectly addresses such requirements;

 

Which of the following statement is TRUE regarding the board setting fees for courses and continuing education?

 

The initial filing fee for review of materials shall not exceed two hundred dollars, and the fee for continued review shall not exceed two hundred dollars per year per course offered.

The initial filing fee for review of materials shall not exceed nine hundred dollars, and the fee for continued review shall not exceed one hundred fifty dollars per year per course offered.

The initial filing fee for review of materials shall not exceed five hundred dollars, and the fee for continued review shall not exceed two hundred fifty dollars per year per course offered.

The initial filing fee for review of materials shall not exceed three hundred dollars, and the fee for continued review shall not exceed one hundred fifty dollars per year per course offered.

The board may set fees for the initial and continuing review of courses for which credit hours will be granted. The initial filing fee for review of materials shall not exceed five hundred dollars, and the fee for continued review shall not exceed two hundred fifty dollars per year per course offered.

 

What is the minimum surety bond a 3mortgage loan originators must acquire?

 

15000

50000

25000

5000

Mortgage loan originators are deemed compliant with the surety bond requirement if their surety bond meets the requirements defined in one of the following options: A. Mortgage loan originators, at a minimum, may acquire and maintain an individual surety bond if: 1. The surety bond is in the amount of $25,000.00; 2. The surety bond is in conformance with all relevant Colorado statutory requirements; 3. The surety bond is exclusive to covering acts contemplated under current Colorado mortgage loan originator licensing laws; 4. The surety bond is not applicable to any conduct or transactions outside the jurisdiction of the Board; and 5. The surety bond is identical to the individual surety bond form developed and approved by the Board. 
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