Voice for Real Estate 32: SBA, Appraisers, Kickbacks

Voice for Real Estate 32: SBA, Appraisers, Kickbacks


[music] starting now small business owners can get faster
decisions on commercial loans young people wanted for careers in appraisal and how are those new closing rules going these stories and more on The Voice for Real Estate. hi I’m Stephen Gasque with the National Association of
REALTORS® the Small Business Administration wants to do business with
you and your clients that’s great news for companies looking to buy small
commercial properties or maybe you if you need a small commercial loan to
expand your brokerage The Administrator of the Small Business Administration
Maria Contreras Sweet came to NAR’s offices in Washington last week to let
you know her agency is ready willing and able to help you and with its new
electronic processing your decision could be faster than ever ‘>>’ Contreras Sweet: we put in what we
call a predictive scoring model so that indeed when you went to run loans under
three hundred and fifty thousand dollars are predictive model would give you an
algorithm and we’d be able to say yes or no pretty quickly without running all of
the usual financials that we run ‘>>’Gasque: among the agencies products are its CDC/504
loan which your small business clients can use for land and commercial property
purchases and its 7(a) loan which is generally used for small business
applications. [music] in today’s Internet oriented world how do you get young
people interested in becoming appraisers well the independent board that sets
state licensing standards for our nation’s appraisers called the Appraiser
Qualifications Board has been looking at that very question as they explore ways
to get more young people into the field NAR shared some ideas with the
board last. week 1st college coursework should count towards fulfilling
appraisal experience requirements 2nd field work in related fields should be
allowed to count towards the on the ground training requirements and 3rd
licensing requirements should not make a four-year college degrees mandatory
NAR’s Sarah Young has more ‘>>’Young: we want to maintain a high level of professionalism
to the appraisal field but we feel like this can be accomplished with some revisions
to the education and experience requirements for appraisers and
hopefully this will attract some more young people to the profession ‘>>’Gasque: as part
of its effort the Appraiser Qualifications Board is holding a public
hearing shortly we’ll keep you up to date as more work on licensing requirements
is done. [music] do you have a marketing service agreement with a lender or a title
company? well if so you need to know about a recent RESPA ruling that
could affect you because even if you’re carefully following the rules set out
by the US Dapartment of Housing and Urban Development well the Consumer Financial Protection
Bureau has a different interpretation of the rules which is a lot tougher now
here’s the story a mortgage lender was sending business to companies which
insured mortgages and in exchange for that business the mortgage insurance companies were
paying the lender in the form of premium payments to a reinsurance subsidiary
called Atrium the parties were apparently following the HUD rules for
deals like that 1st the payments were for actual
services rendered that is they were for actual mortgage
reinsurance and 2nd the premiums were at the recognized fair market value for
such transactions but even though the parties were following the HUD rules the
CFPB said the arrangement was not legal because it was clearly tied to business
referrals citing Section-8 anti-kickback regulations in the Real Estate
Settlement Procedures Act CFPB director Richard Cordray levied a fine of 109
million dollars on the mortgage lender as you might expect the ruling has
raised a lot of concern among lenders and others that it would be hard for any
marketing service agreement to pass muster with the CFPB but NAR senior
counsel Finley Maxson says the ruling is too narrow to cast all agreements into question ‘>>’Maxson:
based on this decision a number of large lenders have stated that they will no
longer enter into MSAs with real estate brokerages and many others
believe that this ruling will essentially make most MSAs illegal however it isn’t
entirely clear from this decision if that is the case director Cordray determined at PHH’s
actions of referring borrowers was entirely based on the payments insurers
made to Atrium based on those facts it is not clear whether an MSA between a real
estate brokerage and another settlement service provider without such an
arrangement would receive the same scrutiny from the CFPB ‘>>’Gasque: there’s a lot
more to come the mortgage lender has appealed the
case in the District of Columbia Court of Appeals and NAR has filed a Friend
of the Court Brief asking for clarification on the proper
interpretation of RESPA’s anti-kickback rules. [music] have something to say about those
new closing rules if so NAR wants to hear from you. last week the new
closing changes went into effect new rules new documents and new
timelines and I’m sure you know that NAR and the Consumer Financial Protection
Bureau have provided resources for you to make sure your closings are not
disrupted by the changes if you haven’t yet checked out the new closing process
guidelines go to ConsumerFinance.gov and search for the CFPB’s know
before you owe. now from NAR there is REALTOR.org/trid TRID of
course stands for TILA-RESPA Integrated Disclosure and there you’ll
find a webcast videos and articles to help you ensure smooth closings now it’s
your turn to say what’s working and what’s not let NAR know if you see
recurring problems with the new procedures by sending an email to
William Gilmartin at NAR’s government affairs his email address [email protected] [music] and that’s our show for the week of
October 12th you can get more on everything we talked about today at The
Voice for Real Estate page at REALTOR.org thank you for joining us and be sure to
join us again as we bring you the latest news on The Voice for Real Estate [music] brought to
you by the National Association of REALTORS® your advocate for housing and
property rights in Washington across America and in your neighbor this is The
Voice for Real Estate [music]

Leave a Reply

Your email address will not be published. Required fields are marked *