Mortgage News

Calendar Toward Tragedy
The following is a letter from our chapter president regarding a memorandum titled 'Calendar Toward Tragedy' which has nine exhibits. The purpose is to capture in a snapshot of time some of demands and responses that have occurred during this mortgage crisis. These exhibits and the chronology of time concern mortgage brokers. This effort is to highlight actions that are questionable and to suggest that new and different responses and action need to be taken. Read the items and see if you concur.

Read the letter here

Read the memorandum with the exhibits here.


New Savings and Mortgage Lending Commissioner Sworn In

This is the swearing in ceremony of our new Savings and Mortgage Lending Commissioner on April 10,2008. The attractive lady in the white jacket is Connie Hearn, our Past President. The tallest gentleman is Commissioner Doug Foster and immediately to his right is Governor Rick Perry. This was a brief, but very meaningful ceremony. Mr. Foster has been with the agency in excess of twenty years. He is the third Commissioner regulating mortgage brokers since 1999 when the mortgage brokers worked with the legislators and created Texas licensing. He oversees some 16,000 loan officers and 6,000 mortgage brokers originating a quarter of a million loans per year for the people of Texas to buy homes and refinance their residential property.


2nd Annual DFWAMB Trade Show
The DFWAMB 2nd Annual Trade Show was held on March 11th at the Marriott Quorum following Fannie Mae’s seminar at the hotel. It offered a chance for our sponsors to meet with our members and guests. Many of them took advantage of the opportunity to discuss their products and specialties with the brokers and loan officers that attended. Our many “thanks” to our sponsors for making this event a productive and fun afternoon for all of our members and guests.

After spending time at the Trade Show and taking advantage of the information available, several of our guests decided it was time to become members of DFWAMB, joined up, and asked about serving on a committee. We welcome our new members and hope to see you at the April Luncheon or Golf Tournament.


DFWAMB is a grass-roots organization that welcomes input from it’s members. Several of the attendees participated in a survey and provided insightful feedback that is always considered valuable by the DFWAMB Board.



Recent Lobbying Efforts by DFWAMB With FHA

Seen above is DFWAMB Director Martin Sisk with the Commissioner of FHA, Brian Montgomery. Mr Sisk is trying to make his usual pointed remarks regarding how FHA needs to be more accommodating to the mortgage brokers in implementing the new FHA lending features. Mr. Montgomery was reluctant to accept all of Mr. Sisk's rather bold suggestions. He did acknowledge there was an interest in becoming more accommodating to the brokers wishes to eliminate the audit requirement and accept surety bonding in lieu of $50,000 net worth. In addition he targeted late January 2008 for a RESPA proposed rule to go to Congress for review. He stated it would be more industry friendly than the 2002 rule. They would incorporate some of the suggestions learned on the 'field trips' in 2005. The rule was withdrawn in March 2004.

In addition to the purchase market inroads FHA is making, Mr. Montgomery was touting the success of the 'reverse mortgage' product introduced some four years ago. FHA has insured over 100,000 of these mortgages in that time. Mr Sisk pointed out that this was a superior product to FNMA and FHLMC and any seen in the industry. Texas had been one of the last states to come on board due to the homestead laws. Lenders were cautious regarding penalties lending to the reverse mortgage client.

Mr. Montgomery is aware of our association's lobbying efforts and encouraged Mr. Sisk to continue. He was cordial and open to suggestions. He invited a follow up visit when in Washington, D.C.

In addition to the purchase market inroads FHA is making, Mr. Montgomery was touting the success of the 'reverse mortgage' product introduced some four years ago. FHA has insured over 100,000 of these mortgages in that time. Mr Sisk pointed out that this was a superior product to FNMA and FHLMC and any seen in the industry. Texas had been one of the last states to come on board due to the homestead laws. Lenders were cautious regarding penalties lending to the reverse mortgage client.

Mr. Montgomery is aware of our association's lobbying efforts and encouraged Mr. Sisk to continue. He was cordial and open to suggestions. He invited a follow up visit when in Washington, D.C.




The Brokers' Choice

President’s Message
By Bob Gray & Connie Hearn

September, 2008

The S.A.F.E Act

DFWAMB was the first to bring to the membership and industry affiliates the details of the National Mortgage Licensing System. At the standing-room-only August luncheon DFWAMB hosted a webinar with representatives from the Council of State Banking Supervisors (CSBS),

CSBS demonstrated to the audience the new website that is officially the web portal through which every broker, loan officer, and banker must pass unless their state elects to ask HUD to directly oversee their licensing. Although there was much to be learned about the new system, the overview presented was a ton of information.

Just this week, board members Connie Hearn and Martin Sisk participated in another in-depth webinar with CSBS and AARMR (the association of mortgage regulators) on the S.A.F.E Mortgage Licensing Act. In addition to reviewing the mandates of the S.A.F.E. Act, upcoming implementation, and requirements on mortgage loan originators, CSBS/AARMR presented the Model State Legislation. This is an attempt to define every mortgage related term, everyone in the industry that needs licensing, educational requirements, testing, etc. As it was repeatedly said, the goal is to “have consistency across state lines”.

For example, in the future, NMLS will review and approval every industry educational course in the country before the hours can be used to meet the new Federal requirements annually.

There was a lot of conversation about the fact that there is not any type of “grandfathering” in the S.A.F.E Act. So if your state’s current licensing does not meet the requirements (and few meet the rules exactly) then Loan Originators will have to work to meet the new requirements and testing before they can be considered properly licensed.

Once again, the only Loan Originators that are required to be licensed by the S.A.F.E Act are those not working for a federally insured depository bank or a credit union…..they only have to register.

This is a work in progress and the time given by Congress is very short. Consequently, much about the state model was still incomplete. There are many terms to be universally defined and forms to be agreed upon. This is where you, the Loan Originator can still have an effect on the future of your business. For example, the standards for credit scores for licensing have not been established. CSBS/AARMR is working with an advisory committee of industry members and banking regulators and it is an opportunity to give them your thoughts on these very important rules.

Join the Effort

The biggest impact of the SAFE Act is that the Texas Mortgage Broker Licensing Act will need to be revised during the 2009 legislative session. This is a terrific time to jump in and volunteer to join other DFWAMB members in talking to our state Representatives and Senators about changes to licensing in the State of Texas.

FHA: also known as the New AltA/Subprime

It’s a brave, new world for many brokers and loan officers. Many are cautiously entering the FHA world for the first time. Well, we have all the information you need at the upcoming monthly luncheon meeting on September 16th at Prestonwood Country Club.

Election of New Officers

The election of new officers and directors of the board will be held at the October meeting. Information about the upcoming slate will be discussed at the September meeting.

Your membership counts. Join DFWAMB and speak up in unison. NOW is the time to join DFWAMB where you will find a wealth of information and support. To our current members, we appreciate your being a part of this active organization. You are definitely welcome at DFWAMB.