Most people can't afford to take out a mortgage on a new home while they're still paying the mortgage on their existing home. That's what bridge loans were made for.
The problem is, bridge loans--or "gap loans," as they're sometimes called--are increasingly more difficult to get. Rising unemployment, shrinking incomes, and tightened lending regulations have made it more difficult for borrowers to qualify for the loans they need to move from one house to another.
The increased regulations on the lending industry were necessary, but the effect on bridge loans was an unintended consequence that is continuing to keep home sales from recovering as much as they otherwise could.
It's my understanding that one of the candidates running for Pennsylvania Senator Arlen Specter's seat is proposing that congress provide guarantees on bridge loans, with very strict guidelines.
If your business is real estate, you'd do well to call your congressman and let him or her know that we need this kind of help.
Tuesday, July 21, 2009
Wednesday, May 27, 2009
Changes in Licensing Laws for New Hampshire Mortgage Lenders
As might be expected, the shakeup of the mortgage industry due to subprime mortgages has resulted in new legislation to tighten up the rules for lenders and brokers.
New Hampshire mortgage brokers are now facing new laws governing licensing. All individuals whose activities fall under the definition of "loan originator" must be licensed. The change in the law went into effect on April 1, 2009.
As of the effective date, licensing of New Hampshire mortgage brokers will be done through the Nationwide Mortgage Licensing Sytem (NMLS). Because only companies, and not individuals, can be approved by the NMLS, loan originators must be sponsored by an NMLS approved company, usually the individual broker's employer.
A form MU4 must be filed with the NMLS by any individual who wants to be licensed and on record as a New Hampshire mortgage broker. The fee for the New Hampshire license is $100, not including the $30 processing fee for the NMLS.
The New Hampshire Banking Department is offering a window from April 1 to July 30 of 2009 for brokers to file the MU4 licensing form without having to undergo additional measures. As of July 31st, anyone filing to be a New Hampshire mortgage broker will have to also be fingerprinted and submit to a background check, credit check and pre-license education requirements.
2010 licensing renewals will require that those who were licensed during the April 1 to July 30 window undergo the same fingerprinting, background check, credit check, and pre-licensed and continuing education requirements. The license renewal fee for all New Hampshire mortgage broker will be $100 annually.
Those who operate mortgage companies as sole proprietorships are required to obtain a license as well.
One significant change in the law stipulates that New Hampshire mortgage brokers can only originate loans for one company at a time, and must terminate their licenses with one company before being licensed with another. When changing employers, the broker must file an update on the employment history on the MU4 form, and also pay a $50 transfer fee.
As I said at the beginning, changes in the law should be expected whenever there's a "crisis." The laws are changing for New Hampshire brokers, Pennsylvania mortgage lenders and pretty much anyone in any state who deals with mortgages.
New Hampshire mortgage brokers are now facing new laws governing licensing. All individuals whose activities fall under the definition of "loan originator" must be licensed. The change in the law went into effect on April 1, 2009.
As of the effective date, licensing of New Hampshire mortgage brokers will be done through the Nationwide Mortgage Licensing Sytem (NMLS). Because only companies, and not individuals, can be approved by the NMLS, loan originators must be sponsored by an NMLS approved company, usually the individual broker's employer.
A form MU4 must be filed with the NMLS by any individual who wants to be licensed and on record as a New Hampshire mortgage broker. The fee for the New Hampshire license is $100, not including the $30 processing fee for the NMLS.
The New Hampshire Banking Department is offering a window from April 1 to July 30 of 2009 for brokers to file the MU4 licensing form without having to undergo additional measures. As of July 31st, anyone filing to be a New Hampshire mortgage broker will have to also be fingerprinted and submit to a background check, credit check and pre-license education requirements.
2010 licensing renewals will require that those who were licensed during the April 1 to July 30 window undergo the same fingerprinting, background check, credit check, and pre-licensed and continuing education requirements. The license renewal fee for all New Hampshire mortgage broker will be $100 annually.
Those who operate mortgage companies as sole proprietorships are required to obtain a license as well.
One significant change in the law stipulates that New Hampshire mortgage brokers can only originate loans for one company at a time, and must terminate their licenses with one company before being licensed with another. When changing employers, the broker must file an update on the employment history on the MU4 form, and also pay a $50 transfer fee.
As I said at the beginning, changes in the law should be expected whenever there's a "crisis." The laws are changing for New Hampshire brokers, Pennsylvania mortgage lenders and pretty much anyone in any state who deals with mortgages.
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