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The CFPB Introduces New Mortgage Loan Originator Compensation Requirements under the Truth in Lending Act

By · March 12, 2013 · Filed in Mortgage Industry News · No Comments »

President Obama put in place the Consumer Finance Protection Bureau in an effort to protect American consumers in respect to loans, mortgages and finance related activity. The CFPB has made recent adjustments to loan originator’s compensation. Like it or not, there are new laws rolling out that will have a significant impact on the entire mortgage lending industry.

The CFPB  amended Regulation Z to implement amendments to the Truth in Lending Act made by the Dodd-Frank Act. The final rule implements requirements and restrictions imposed by the Dodd-Frank Act concerning loan officer compensation; qualifications of, and registration or licensing of loan originators; compliance procedures for depository institutions; mandatory arbitration; and the financing of single-premium credit insurance. The final rule revises or provides additional commentary on Regulation Z’s restrictions on loan originator compensation, including application of these restrictions to prohibitions on dual compensation and compensation based on a term of a transaction or a proxy for a term of a transaction, and to record-keeping requirements. The final rule also establishes tests for when loan officers can be compensated through certain profits-based compensation arrangements. At this time, the CFPB is not prohibiting payments to and receipt of payments by loan officers when a consumer pays upfront points or fees in the mortgage transaction. Instead the Bureau will first study how points and fees function in the market and the impact of this and other mortgage-related rule-makings on consumers’ understanding of and choices with respect to points and fees. This CFPB final rule is designed  to protect consumers by reducing incentives for loan originators to steer consumers into loans with particular terms and by ensuring that loan originators are adequately qualified.

1. The CFPB Rule

a. Effective dates

b. Breakdown of the document’s contents

2. Detailed summary of the rule

 3. Related proposals

 

The Rule and Effective dates

The amendments to § 1026.36(h) and (i) are effective on June 1, 2013. All other provisions of the rule are effective on January 10, 2014. If you have question, contact CFPB about interpretation or application by email at CFPB_reginquiries@cfpb.gov or call (202) 435-7700.  Read more about New Rules on Loan Officer Compensation Under TIL and Regulation Z.

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Jump Start Your Pipeline with the Hot Internet Mortgage Leads

The Lead Planet has been generating home loan leads online for 13 years. We connect loan prospects with lenders and brokers in all 50 states. Our lead generation system filters the information quickly and then distributes the hot mortgage leads to eager loan companies within our network. Of course, when the lead meets higher criteria for credit, LTV and loan type the more likely you will be to close the loan. We pride ourselves in generating highest quality leads that keep your cost to closing ratio down so you can realize a better return on investment. Our goal is always to maximize your mortgage marketing budget and that is done when we get you leads from qualified borrowers that have a sense of urgency.

We offer a wide variety of online mortgage leads such as:

  • Refinance
  • HARP Leads
  • FHA First Time Home Buyer
  • FHA Refinance
  • VA Loan Leads
  • Home Equity
  • Purchase Money
  • Conforming & Jumbo Leads

Our contact rates have always been the highest in the industry and closing rates have been leading the pack for mortgage marketing companies as well. Choose from semi-exclusive and exclusive lead programs. Call 888-271-9581 and discuss your needs with one of our marketing professionals. The Lead Planet is offering 50 free leads for customers that purchase 100 leads. (refinance and purchase combination)

 

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Rates for Home Loans Rise

By · October 26, 2012 · Filed in Freddie Mac Rate Survey · No Comments »

As expected interest rates on home loans rose slightly higher this week. Freddie Mac’s weekly survey revealed the minor uptick for higher rates on government and conventional mortgages. The Lead Planet staff expects rates to remain near record levels for the next eighteen to twenty-four months. Typically “bad news” with regards to the economy usually translates to “good news for interest rates in the United States.

The average on fixed 30-year rates increased to 3.41%, up from 3.37% a week ago but down from 4.10% a year ago at this time. The average on fixed 15-year rates rose as well. The 15-year mortgage inched up to 2.72% from 2.66% a week ago.

Hybrid loans that featured adjustable interest rates were mixed. The 5-year ARM remained the same as last week at 2.75%, while the 1-year ARM rose down to 2.59% from 2.60% a week ago. The volume for home loans with no credit check has increased online in recent months as well.

The activity for home refinancing remains robust as more and more homeowners continue to complete applications. Home purchase activity has dipped a bit, but there is still a healthy amount of activity for consumers seeking home financing. Although the refinance share of mortgage continued to fall, it still accounts for 8% of applications. The Mortgage Bankers Association said they anticipate refinancing volumes to level off and home buying activity will rise in 2013.

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Lenders Looking for Conforming and HARP Refinance Leads

By · October 23, 2012 · Filed in HARP Leads, Mortgage Lead News · No Comments »

This has been a great year for loan professionals who have seemingly rebounded with record low rates. 2012 will be remembered for a refinance boom with record low rates. Most lenders are seeking conforming mortgage leads that connect them with prospects that have good credit. FHA and VA lead have been popular as well because the rates are great and the pricing provides an opportunity for higher compensation.

  • Conforming Leads
  • Streamline Refinance Leads
  • HARP Mortgage Leads

The Lead Planet offers quality refinance leads that meet the standards of Fannie Mae, Freddie Mac and FHA. We have also seen a dramatic rise in HARP leads as millions on borrowers with negative equity are seeking an underwater mortgage refinance alternative. Both Fannie and Freddie have improved the guidelines for the Home Affordable Refinance Program. FHA has reached out with similar revisions by removing “loan to value” requirements for a select group of distressed homeowners.

Call 888-271-9581 for a no hassle quote on custom lead programs that meets your program niches.

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Harp Leads Increase

By · July 5, 2012 · Filed in Mortgage Lead News · No Comments »

2012 has been a great year for mortgage companies that have been able to rebound financially with the HARP 2.0 and the record breaking interest rates. With the 30-year rates below 4% and the 15-year rates below 3% no one should be shocked that our volume for refinance leads has increased significantly this year. The other contributing factor that shouldn’t be ignored is the introduction of the HARP 2.0 in March. Many distressed homeowners have reached out to qualify for underwater refinancing and this has led to a surge in qualify HARP leads to the Lead Planet network.

We Offer Fresh HARP Leads from Eager Homeowners

We have seen a huge spike in HARP leads in recent months as our websites continue to connect homeowners with HARP refinance lenders. If you are interested in jump-starting your loan origination, consider offering the “Home Affordable Refinance Program.” You will need a good HARP lead source and that’s where the Lead Planet comes into play. We offer incentives for new accounts looking for HARP mortgage leads that will help you increase your monthly closings almost immediately. We offer a wide variety of refinancing leads.

Call 888-271-9581 for a no cost quote on FHA refinance and HARP lead programs that will surely increase your profitability.

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Higher Contact Rates with Online Mortgage Leads Generated from a Direct Source

Have you been searching mortgage leads online that have not been sold too many times? Many loan professionals get frustrated with internet mortgage leads because they often get an angry response from an applicant that has been contacted too many times.  Many lead companies get greedy and sell their leads ten to twenty times.  So many lenders are advertising a “no cost mortgage”, how do you separate yourself from other loan companies and earn the prospect’s business? We suggest getting a hold of the loan applicant first and making a good impression.

At the lead Planet we never sell our home loan or refinance leads more than three times.  Our policy is to sell our online mortgage leads one to three times. Of course if we are selling a client an exclusive mortgage lead, then it is only sold once.

We generate leads ourselves with our proprietary websites and they perform significantly better leads that were purchased from a broker. When you buy leads from a broker you never really know how many times the leads have been sold. We offer both semi and exclusive mortgage lead programs that have been helping loan shops fund mortgages since 1999. Our unique system connects potential borrowers who are searching online for loan programs and lending professionals.

Why is the contact rate so important?  The bottom line is that high contact rates will increase your cost to funding ratio and raise the morale of your loan officers as well. The contact rate on our leads averages above 80%.  Our mortgage lead generation team can create a marketing strategy that works with your budget and production goals.

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Maximizing Mortgage Marketing in the New Year

There may be some hints that the mortgage industry is turning the corner as mortgage marketing companies reported an increase in advertising for loan companies in the fourth quarter of 2011. In addition, several MBA surveys pointed to more good news as loan professionals confirmed their belief that outlook for home financing is improving. Sure lending guidelines are still tight and the housing market continues to struggle with foreclosures and significantly deflated home values, but maybe we are at the low point for this crisis and thing actually will get better. Sure property values on the East and West coasts are still in the tank, but eventually people will start buying homes again and home loan guidelines will loosen. Loan companies that are serious about increasing conversions and originations are more committed to mortgage marketing than ever before.

Reduced Expenses as the Cost Per Lead is Lower

According to Lead Planet founder, Bryan Dornan, “If positive thinking can play a role in the recovery than 2012 and 2013 will be great years for loan origination nationally.” Dornan believes that so there has been such a significant correction in the mortgage industry that is will be easier for the lenders who are left to succeed. Although, Dornan cautioned that tighter guidelines have hindered reducing the mortgage marketing costs, because not as many loan applicants will qualify. The bottom line is that is takes more internet mortgage leads to qualify a borrower. Fortunately for loan companies the costs of mortgage leads has dipped slightly over the last few years.

Targeting Refinance Niches Will Be Critical for 2012

Don’t forget the Obama administration announced a revived HARP refinance program that actually lifts loan to value requirements for struggling borrowers looking to refinance their underwater liens. Of course you must have a mortgage owned by Fannie or Freddie and you must meet the credit requirements but no loan to value limitations could be a genuine opportunity for homeowners to lower their monthly payments from home refinancing. The question is though — how many of these upside-down borrowers already have a low interest rate? Since we have had home loan rates below 5% for almost 3 years, many of these “struggling homeowners’ already have a home loan with very good interest rates. Nonetheless, the new HARP mortgage will enhance loan origination in 2012 just how much remains to be seen. We have seen a significant spike in interest for HARP leads in the fourth quarter. We have seen a dramatic rise for internet mortgage leads that stemmed from homeowners seeking help from a HARP lender.

Mortgage Marketing Areas of Opportunity

Since we have been blessed with record breaking mortgage rates the last few years, most loan officers have continued to succeed with refinance leads.  That will continue if fixed 30-year mortgage rates remain in the 4% range and banks actually ease refinance requirements. The pool of qualified borrowers seemed to be shrinking last year, because so many homeowners had refinanced in the last few years. However, the mortgage refinancing mania will eventually lose its luster if there aren’t enough new home buyers getting loans. With that in mind, we strongly recommend buying purchase leads in 2012 because bargain home buying and low rates are the perfect cock-tail for successful new home loan origination. For smaller shops, we suggest assigning a few loan officers to develop your purchase business this year. Yes the loan origination takes more time, but the mortgage marketing costs are less than refinance leads and the referral rate is phenomenal when closing home purchase loans.

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HARP Leads in High Demand

Our phone has been ringing off the hook with marketing managers looking for HARP leads as the US Government approved the Home Affordable Refinance 2.0. More and more loan companies have been requesting high loan to value refinance leads. In the last few years, lenders, brokers and loan officers have stayed away from no equity mortgage leads. It’s no secret that FHA leads have been in high demand and loan companies have been seeking loan to value filters at 96.5% on purchase and rate and refinance and 85% on cash out refinancing. However many lenders have been reported the problem of plummeting property values.

Find Out How HARP Leads Can Enhnace Your Loan Origination in 2012

In 2009 a program called the Home Affordable Refinance was rolled out to borrowers that had underwater mortgages owned by Fannie Mae or Freddie Mac.  These were considered 125% loans because they enabled this pool of borrowers to refinance up to twenty-five percent greater than their home’s appraised value. You would think the original HARP mortgage program would have been a huge success, but because of limited insurance available, most lenders passed on the program. Believe it or not the other problem was that 125% was not enough as millions of Americans were sinking in underwater homes.

The Home Affordable Refinance Program 2.0 has no loan to value restrictions so underwater homeowners who have been longing to refinance now have a new opportunity. The Lead Planet is one of the marketing leaders for HARP leads. We have been generating a high volume of home affordable refinance leads that can help jump-start your origination in 2012.

Call 888-271-9581 to learn more about HARP leads or to get started buying refinance leads

 

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Higher FHA Loan Limits Will Help Loan Origination in 2012

By · November 25, 2011 · Filed in Mortgage Lead News · No Comments »

The higher FHA loan amounts will no doubt help lenders and brokers increase their loan origination in 2012. President Obama signed the bill that extends higher loan limits for FHA.  Borrowers that need a FHA mortgage loan amounts up to $729,750 will be excited. FHA still only requires a 3.5% down payment even if you are a first time home buyer. The higher FHA loan limits will offer significant relief in high-cost areas of California; metropolitan Washington, D.C.; New York, New Jersey and scattered counties in other states including Massachusetts, Florida and North Carolina. The higher loan limits were not extended for Fannie Mae and Freddie Mac. Most believe that the program called Home Affordable Refinance will help the borrowers trying to refinance a loan owned by Fannie or Freddie.

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New Free Mortgage Lead Incentives for Purchase and Refinancing Leads

The Lead Planet is proud to announce an extension of our Free Mortgage Lead Promotion.  In an effort to help loan companies stimulate their origination in the new year, we have extended the offer for free mortgage leads until January 15th. With mortgage rates falling below 4% on fixed 30-year loans, it’s no surprise that refinance activity continues to rise.  Last week we saw a 12% rise in refinance leads.  Homeowners continue to go online to request help from lenders and brokers to lock into a record low interest rate.

The volume for purchase leads also rose last week as millions of first time home buyers appear ready to join the group of homeowners.  Many renters can save money when buying a home because with 4% home loan interest rates it is very possible to reduce housing expenses.

We are pleased to announce new incentives for new customers who are looking for quality internet mortgage leads from a credible source, like the Lead Planet. If you set up a new account with us buy mortgage leads between now and Januray 15th, you can expect to save money and get more leads for your investment.  We are offering 50 free purchase leads with all 100 lead orders. In addition, we are offering 30 free leads for every 100 refinance leads purchased.

  • Home Purchase Leads
  • Refinancing Leads
  • FHA Leads
  • HARP Leads

Our company has been specializing in internet mortgage marketing since 1999 and we look forward to assisting with lenders and brokers by jump-starting their loan origination throughout the holidays.  National Sales Mgr., said in a recent phone interview, “This is a great opportunity for loan shops to stimulate their activity with our internet leads that convert.”  Call 888-271-9581 to learn more about new incentives or to get started.

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