Just imagine everything looking like it was going smooth.
You sold your listing of 9 months, worked out the short sale on the first with Bank O ‘Merica and a second with Bumble Bee Savings and Loan after going through 3 cell phones, 2 email accounts for because of space and a heart transplant.
Your seller, the buyer and their agent were very cool throughout the entire debacle even though the selling agent’s car was towed and the buyer was lost in East Africa for three weeks.
So, finally at the closing table. All of you sitting there, you have the mortgage papers, all looks great. (Oh no, here it comes)
Yikes, on a supplemental page of the HUD settlement sheet, there is a discrepancy of $25 because the local township just raised their transfer tax two months before.
The mortgage person on the original good faith estimate did not put the charge because it did not exist then but now it does.
Well, according to HUD all is fine, just have the loan officer pay the difference. But, our friends at the Federal Reserve say…whoa…..since the broker is getting their compensation from the lender (because it’s a zero point mortgage), the loan officer or their company can’t pay.
And in fact, no one else can either. HUD says it must be the loan officer or his company but the Fed (as of 4.1.11) says they can’t.
What do you have? Dead Deal. Start a new mortgage. Too bad suckers.
The Federal Reserve has come out with the compensation rule and refuses to put in writing the proper guidelines for it. Also, the soon-to-come CFPB will be taking over the rule making in the end of July.
But, I have found out that the same person writing the rules for the Fed will be going to the CFPB.
Ok, want to do something? Besides contacting your REALTOR board, your state association and NAR directly, please address in your own words why this new rule is harmful to your business to Paul Mondor at the Federal Reserve. His email address is Paul.Mondor@frb.gov. He is the Senior Attorney at the Fed that has been the front person with the industry.
