Vaultedge Blog

FHFA delays implementation of Adverse Market Refinance Fee to December 1 FHFA today announced that it will delay the implementation of the new Adverse Market Refinance Fee to 1st December. This fee was originally scheduled to come into effect from 1st September and would impose a 0.5% fee on Refinances. Which is to say that, if you have a loan outstanding of $300K then you would be incurring an additional cost of $1500 when you refinance that loan. Read our earlier blogpost on this topic here .  FHFA now made some important changes to this directive now: Implementation is delayed till 1st December Refinance loans with loan balances below $125,000 are exempt from this fee FHFA also explained the rationale for the fee. It estimates additional expenses to the tune of $ 6 Bn to GSEs (FannieMae and FreddieMac) from various measures related to Covid-19. Those expenses are expected to at least include: $4 billion in loan losses due to projected forbearance defaults; $1 billion in foreclos...

MBA Servicing Solutions Conference 2020 - what to watch out for - Part 2 If you are working in the mortgage industry, then I am sure you would be following the  MBA's Servicing Solutions Conference & Expo 2020  happening this week in Orlando, FL. It is a great opportunity to network with industry executives and to learn the latest in the industry. There are a lot of interesting sessions. But here are a few that we would highly recommend. 25 February ’20, Tuesday. The day starts with a members-only committee meeting on Loan Administration so, if you’re a committee member, head-on at 7:30am sharp to attend this exclusive meeting. 1. General session- Market Outlook:  However, if you’re not a member, you can arrive a little late but just in time for the first general session of the day at 9am on Market Outlook with speakers Mr. Joel Kan, Associate Vice President of Economic and Industry Forecasting, Mortgage Bankers Association and Ms. Marina Walsh, Vi...

MBA Servicing Solutions Conference 2020 - what to watch out for. If you are working in the mortgage industry, then I am sure you would be following the MBA's Servicing Solutions Conference & Expo 2020 happening this week in Orlando, FL. It is a great opportunity to network with industry executives and to learn the latest in the industry. There are a lot of interesting sessions. But here are a few that we would highly recommend. 24 Feb. ’20, Monday.  The day will kick start at 7:30am with the registration desk opening up till 5:30pm. 1. General session - Inspiration of Reinventing : At 8:30am, the general discussion will take place at the Windermere Ballroom on the topic of ‘Inspiration of Reinventing’ between the speakers Mr. John Ondrasik, Singer & Songwriter (Five for Fighting) and Mr.  Robert D. Broeksmit , CMB, President and Chief Executive Officer, Mortgage Bankers Association. We think it would be a very interesting discussion as the profil...

Image courtesy: thebalance.com This article is part of Vaultedge Mortgage Industry Education series. This article addresses the basic concepts of mortgage banking. While some of the concepts discussed here are valid universally, for the most part, the article deals with mortgage banking as seen in the US. We will look at what a mortgage is, who are the different players in mortgage industry and how they operate to complete the mortgage banking cycle.  What is a Mortgage? Mortgage (also called a Home Loan, outside the US) is a security interest in a real estate property; it is given by a homeowner to a mortgage lender in exchange for money to purchase a home. To further explain it, mortgage refers to the agreement between a financial institution and the debtor in which the institution lends money in exchange for a collateral which is the property being purchased, with the arrangement that once the payment of the debt is complete, the ownership of the collateral is ...

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One simple step to mitigate contractual dilemmas Sir Arthur Charles Clark once said,                     “Any sufficiently advanced technology is indistinguishable from magic.”  And the words rightly describe an Artificial Intelligence (AI) in the modern day world. You may be the business organization which lacks a strong legal cell or may be the one which possesses an efficient team of lawyers. In either case, the challenge of managing a great deal of contracts never comes to an end. Long working hours are invested by lawyers in reviewing the terms of the Contract, in extracting and interpreting the potential of clauses of any contract. And, now imagine an AI which does the same work in the blink of an eye and with better efficiency.  The consequence of failing in endeavours to meet such challenges is extravagant. Contracts, often, in the stage of negotiation requires a higher degree of acumen in scrut...

The General Data Protection Regulation and its impact on  Indian  business contracts Introduction: The General Data Protection Regulation [2016] (hereinafter referred to as GDPR) is a landmark data protection law enacted by the European Union (hereinafter referred to as 'EU') with a view to protect rights of individuals within the Union. The law was adopted by the EU member states in 2016 but took effect only in May 2018. By adopting the GDPR, the EU has taken a significant step forward with respect to data protection and privacy rights in this modern day and age to keep up with the pace of technological developments. The GDPR [2016] has superseded the Data Protection Directive [1995] - which previously regulated the processing of personal data of EU citizens and protected their privacy rights. It is important to understand that the erstwhile data protection law, ie: the Data Protection Directive [1995] was only a ' directive ', which meant that it cou...