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Joke of the Day: a computer salesman went to a farmer's
house to sell him a computer. when they went into the farmer's
den, a three-legged pig was sitting on his couch. "whoa,
what is a three-legged pig doing on your couch?", said the salesman. "this
is no ordinary pig", said the farmer. "two
weeks ago my granddaughter was drowning in the lake and this
pig jumped in and saved her". "and
last week my tractor turned over and pinned my leg. the
pig ran three miles to the main road, flagged down a passing
car and brought help. i owe this pig." "i understand
that", said the salesman, "but, why does the pig only
have three legs?" the farmer exclaimed, "man,
you don't eat a pig like this all at one time!"
previous
jokes of the day
/REVISED 7/9/99
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 30% EARLY BIRD SPECIAL DISCOUNT
FOR FIRST 50 PURCHASE ORDERS RECEIVED. VOLUME DISCOUNTS
ARE ALSO AVAILABLE.
The Texas Mortgage Broker License Act takes effect September
1, 1999, with all mortgage brokers and loan officers, as defined
by the newly adopted statute, required to be licensed by January
1, 2000. It will be administered by the Texas Savings and Loan
Commission.
A
MORTGAGE BROKER NEEDS A LICENSE "Mortgage broker"
means a person who receives an application from a prospective
borrower for the purposes of making a mortgage loan from that
person's own funds or from the funds of
another person.
A
MORTGAGE BANKER DOES NOT NEED A LICENSE "Mortgage banker"
means a person who is:
(A) approved or authorized by the United States Department of
Housing and Urban Development as a mortgagee with
direct endorsement underwriting authority;
(B) an approved seller or servicer of the Federal National Mortgage
Association;
(C) an approved seller or servicer of the Federal Home Loan Mortgage
Association; or
(D) an approved issuer for the Governmental National Mortgage
Association.
A
LOAN OFFICER NEEDS A LICENSE "Loan officer" means
an individual sponsored by a licensed mortgage broker for the
purposes of performing the acts of a mortgage broker.
MORTGAGE BROKER LICENSE REQUIREMENTS The application
fee for brokers is $375. Additionally, each applicant must pay
a $20 fee to be deposited in the mortgage broker recovery fund.
A mortgage broker a person must: (1) 18 years of age; (2) US
citizen or admitted alien; (3) maintain a physical office in
this state (4) one of the following: (A) bachelor's degree relating
to finance, banking, or business administration from an accredited
college or university and 18 months of experience in the mortgage
or lending field as evidenced by documentary proof of full-time
employment as a mortgage broker or loan officer with a mortgage
broker; (B) the person is licensed in this state as: (i) active
real estate broker (ii) an active attorney; or
(iii) a local recording agent or insurance solicitor or agent
for a legal reserve life insurance company; or (C) three years
of experience in
the mortgage lending field as evidenced by documentary proof
of
full-time employment as a loan officer with a mortgage broker
(5) A mortgage broker must maintain net assets of at least $25,000
or a surety bond in the amount of at least $50,000; and (6) not
convicted of a criminal offense that directly relates to the
occupation of a mortgage broker.
LOAN OFFICER LICENSE REQUIREMENTS The application
fee for a loan officer is $175. Additionally, each applicant
must pay a $20 fee to be deposited in the mortgage broker recovery
fund. A loan officer: (1) 18 years of age; (2) US citizen or
a lawfully admitted alien; (3) the name of the mortgage broker
sponsoring the loan officer;(4) one of the following: (A) bachelor's
degree relating to finance, banking, or business administration
from an accredited college or university and 18 months of experience
in the mortgage or lending field as evidenced by documentary
proof of full-time employment as a mortgage broker or loan officer
with a mortgage broker; (B) the person has successfully completed
15 hours of education courses (C)18 months of experience as a
loan officer as evidenced by documentary proof of full-time employment
as a loan officer with a mortgage broker; or (D) for applications
received prior to January 1, 2000, the mortgage broker that will
sponsor the applicant provides a certification under oath that
the applicant has been provided necessary and appropriate education
and training regarding all applicable state and federal law and
regulations relating to mortgage loans; and (5) not convicted
of a criminal offense directly relates to the occupation of a
loan officer.
- Home Equity Loans:
- Fannie Mae Lender Letter 05-98,
dated 12/4/98
In the above referenced Lender
Letter, Fannie Mae indicates:
1. Fannie Mae will continue to accept deliveries of mortgages
without the
additional T-42.1 endorsement through Feb. 28, 1999;
2. Lenders may begin requiring borrowers to obtain additional
coverage
immediately and deliver mortgages with that coverage; and
3. As of March 1, 1999, all Texas 50(a)(6) mortgages that are
delivered to
Fannie Mae must have title insurance coverage provided by the
T-2 policyand
both the T-42 and T-42.1 endorsements.
The letter is on Fannie Mae's web site http://www.fanniemae.com
I hope you have a Happy New Year.
- 12/21/98=Texas Attorney General
Opinion No. DM-495=the Attorney
General has issued an opinion dated December 21, 1998 addressing
Senator Jerry Patterson's inquiry pertaining to whether the Legislature
may authorize a state agency to construe the Texas Constitution,
Article XVI, Section 50, the Home Equity Amendment. http://www.oag.state.tx.us/WEBSITE/OPENGOVT/OPINIONS/op48morales/dm-495.htm
the summary is set forth below=OPINION
NO. DM-495 SUMMARY= The legislature has the power to enact any
law that is not in violation of state or federal constitutional
provisions. It may not, however, infringe upon the power of the
judiciary to construe and interpret the constitution. Thus, while
the legislature may not, absent express constitutional authority,
empower a state agency to definaitely construe Article XVI, Section
50 of the Texas Constitution-the home equity amendment-the legislature
may authorize a state agency to adopt rules implementing the
requuirements of the home equity amendment. Whether any legislative
or administrative actionis consistent with the requirements of
the constitution is ultimately a question for the courts to decide.
The constitution may be amended to create any law that the voters
see fit to approve. The legislature may propose, and the voters
may approve, a constitutional amendment authorizing a state agency
to implement or construe provisions of the constitution.
- 2/18/98=Subject: Stringer v.
Cendant Mortgage Corporation>>
>> The Firm of Davis-Oppenheimer was retained by Cendant
Mortgage Corporation to represent it in connection with a lawsuit
filed in state court claiming that the lender violated the Texas
Constitution Home Equity Amendment in that it required the debtor
to pay debts not secured by the homestead. The debts were not
owed to Cendant but to another lender. The case was removed to
Federal Court, Eastern District, Tyler Division. Cendant received
an Order today Granting its Motion to Dismiss for Failure to
State a Claim. MARK UP A VICTORY FOR
TEXAS HOME EQUITY LOANS
- Fannie Mae Lender Letter LL05-98 /12/04/98http://www.fanniemae.com/Lender/MonthlyDig/wn_lendletter.html
Fannie Mae informs lender that a title insurance endorsement
providing additional coverage on Texas Section 50a6 cash-out
refinance first mortgages is now available. As of March 1, 1999,
all such mortgages delivered to Fannie Mae must have title insurance
coverage provided by the T-2 Mortgagee Policy of Title Insurance
and both the T-42 Equity Loan Mortgage Endorsement and the new
T42.1 Supplemental Coverage Equity Loan Mortgage Endorsement.
- House Financial Institutions Interim Committee Hearing=
9/17/98 invited speakers were Leslie Pettijohn, Commissioner,
Office of Consumer Credit, Rob Norcross, Conference for Home
Owners Rights; Robin Gillespie, Fannie Mae; Rob Scheider, Consumers
Union
- Regulatory Commentary on Equity Lending Procedures=10/7/98
new version http://www.occc.state.tx.us/
published addressing [1] escrow funds, [2] no additional
collateral [] time of closing, and [] reasonable costs to refinance.
appraisals and evaluations are not included.
- Proposed Subchapter G Rules=pertaining
to interest and other charges on secondary mortgage loans
- Title Insurance=Procedural Rule P-47;
Rate Rule R-28 [T-42 rate-10 percent of the basic rate and T-42.1
rate-15 percent of the basic rate; effective date= 11/12/98;
posted at TDI's website at http://www.tdi.state.tx.us/company/titlem2n.html
- Lender Survey= by home equity lenders
by Texas Bankers Association posted at http://www.txbanc.com/txba_pri/index.htm
- Litigation=Tarver v. Sebring Capital Credit
Corp., No. 98-09-15, 645-CV, 82nd Judicil District, Robertson
County District Court=Doody, et, al v. Ameriquest Mortgage
Co., No. DV98-5033, 95th Judicial District, Dallas County=McMahan
v. Long Beach Mortgage Co., No. 98-082, 216th Judical District,
Kendall County= National Association of Remodeling Inductry,
Inc.-Houston Chapter v. Pettijohn= Jim Walter Homes, Inc. v.
William Spradlin, No. 98-02895-G, Dallas County District
Court=Room With A View, Inc. v. Homeowners Mortgage Equity,
Inc., No. 98-03286, 201st Judicial District, Travis County
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HOME EQUITY CONSTITUTIONAL AMENDMENT
APPROVED BY TEXAS VOTERS NOVEMBER 4, 1997
TEXAS HOME
EQUITY LOANS PERMITTED AFTER JANUARY
1, 1998
For 150 years, Texas has banned home equity loans. On November
4, 1997, the voters of Texas overturned this ban on home equity
loans by approving a Constitutional Amendment
to the Texas Constitution. Beginning January 1, 1998, home equity
loans are permitted in Texas. Texas is the last state in the
Union to permit home equity loans. Texas is the second-most-populous
state and Texans have more than $200
billion of equity in their homes. Many home equity lenders
are aggressively entering the Texas home equity loan market.
Other than banks, savings and loans, savings banks, credit unions
and under certain circumstances HUD approved lenders, home equity
loans may only be made by mortgage companies licensed in Texas
with a Texas Regulated Lending License. Since Texas is the last
state in the Union to offer home equity loans, the potential
growth for the second mortgage business is enormous. |
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