Reform is hurting borrowers not helping

While reform was needed for the out of control lending environment, the government is destroying what is left in the fragile housing market with new guidelines that only seem to hurt the consumer.

HUD has announced a new guideline that states if the borrower has officially disputed anything on there credit report they must retract there dispute even if it was an error on the credit report or they will not get a mortgage. Also it takes weeks to get the dispute removed and that can kill the loan process.

On April 1st the Dodd-Frank Financial Reform Bill was passed. This caps the amount loan officers can earn per loan transaction. But this hurts consumers because loan officers cant help cover closing costs for borrowers or reduce there interest rate.

These changes do not help the consumer, it just makes it harder to get a mortgage and creates more out of pocket expense.

Sincerely,
Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.com

Fl next state to use E-Verify

Newly appointed Governor Rick Scott ordered all state agencies to use the federal E-Verify system to confirm the employment eligibility for there current and prospective employees. There are now 13 states that have enacted some type of E-Verify mandate.

E-Verify is the governmnets online system that employers or E-Verify agents can use to confirm the social security numbers of future employees to verify that they are authorized to work in the United States.

This should open up the door for more job opportunities for E-Verify agents. Here is a list of the states that currently require these verifications:

Colorado,Florida, Georgia, Idaho, Minnesota, Missouri, Nebraska, North Carolina, Oklahoma, Arizona, Mississippi, South Carolina, and Utah.

I am an E-Verify agent for the state of Florida. Please call if you are in need of this service.

Sincerely,

Lisa Scanlon, CSA
941-447-7130
www.ScanlonSigningServices.com

Electronic Notarization Update

Va is the next state to try to tackle the Electronic Notarization issue. This new bill was passed and it allows for electronic notarizations by personnal appearance and vidoe conference. Notaries must apply for a seperate commission to become an electronic notary in VA. If the electronic notary uses video conference you must either personally know the signer or use one of the two new forms to indentify the signer. These two new forms are digital certificates accessed by biometric or an interoperable PIV smart card, and what is know as an "antecedent in person identity proofing process".

The National Notary Assoc. states they are working to have the governor veto this bill. The bill will become affective July 1, 2012.

Mortgage Assistance Programs in Trouble

In the past week, the house financial services committee has approved bills aimed at terminating four mortgage assistance programs including the Home Affordable Modification Program, the Neighborhood Stabilization Program, the Emergency Homeowner Loan Program, and the FHA Short Refinance Program. The House is stating that these programs have only helped a fraction of home owners in need, and is wasting millions of tax payer dollars.

The bills will move to the Senate next. President Obama has already indicated that he will veto the bills if they make it to his desk. Congress could over ride the presidential veto but that is unlikely.

There will certainly be heated debates about this issue. I will keep you posted.

Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.com

FHA to extend anti-flip wavier

The Federal Housing Administration (FHA) will suspend its anti-flip rule for another year in order to boost the sale of foreclosed homes. In 2003 HUD issued a rule that prohibited FHA from insuring mortgages on homes that were owned by the seller for less than 90 days. In February 2010 HUD lifted the ban for one year, they just extended the wavier until January 2012.

This rule was designed to avoid flipping properties-buying and quickly re-selling the property to borrowers at an inflated price. Hopefully this extended wavier will help to sell the huge amount of foreclosed homes on the market.

Lisa Scanlon, CSA
942-447-7130
www.ScanlonSigningServices.com

Fannie Mae to impose new charges

In April 2011 Fannie Mae will be applying a new set of charges that could significantly increase closing costs. Some lenders have already started to apply these charges. With an already weak market, this will impact consumers in a negative way, allowing for higher closing costs.

The good news if any is that these fees will not apply to FHA mortgages or mortgages that will be kept by a lender, only those being sold to other lenders will be affected.

Lisa Scanlon, CSA
941-447-7130
www.ScanlonSigningServices.com

Online Notarization Website?

I recently came across an Online Notarization Website that offers online notarization through a web cam and video chat. I thought to myself how can this be without personal appearance, that is one of the cornerstones of the Notary office.

When I investigated further I learned that the only state this is allowed in is New Jersey. But it made me wonder if this is where the notary office is going in the future. I don't see how you can properly identify and individual over a web cam and also you cant see anything going on outside of the viewing window, what if they are being coerced in some way. I feel this would de-value the notary office and could create additional opportunities for fraud.

I know that personal appearance is one of the most important rules as a notary, but who knows what the future holds.

Lisa Scanlon, CSA
941-447-7130
www.ScanlonSigningServices.com