{"id":438797,"date":"2010-03-17T12:45:25","date_gmt":"2010-03-17T16:45:25","guid":{"rendered":"http:\/\/mortgagenewsclips.com\/2010\/03\/17\/hud-lenders-ignorance-is-not-a-defense\/"},"modified":"2010-03-17T12:45:25","modified_gmt":"2010-03-17T16:45:25","slug":"hud-lenders-%e2%80%9cignorance-is-not-a-defense%e2%80%9d","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/438797","title":{"rendered":"HUD Lenders: \u201cIgnorance is not a defense!\u201d"},"content":{"rendered":"

\"MBS<\/a> <\/p>\n

\"David<\/font><\/a> by David Lykken, Managing Partner, Mortgage Banking Solutions a leading consulting firm to the mortgage industry.<\/font><\/font><\/font><\/p>\n

HUD\u2019s press release below may seem like \u201cold news\u201d to some, but you may be surprised how many mortgage executives are not getting the message. For this reason, this press release needs to be republished weekly. <\/p>\n

————————————————————————————————————<\/p>\n\n\n\n
\n

HUD No.10-005
HUD OIG No. 2010-01
Michael Zerega
(202) 402-8441<\/p>\n<\/td>\n

\n

FOR RELEASE
Tuesday
January 12, 2010<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

HUD INSPECTOR GENERAL PROBES MORTGAGE COMPANIES WITH SIGNIFICANT CLAIM RATES<\/strong><\/p>\n

WASHINGTON – U.S. Department of Housing and Urban Development (HUD) Inspector General Kenneth M. Donohue and Federal Housing Administration (FHA) Commissioner David H. Stevens announced today an initiative focusing on mortgage companies with significant claim rates against the Federal Housing Administration mortgage insurance program.<\/p>\n

To read the full press release, click on the following link.<\/p>\n

http:\/\/portal.hud.gov\/portal\/page\/portal\/HUD\/press\/press_releases_media_advisories\/2010\/HUDNo.10-005<\/a><\/p>\n

——————————————————————————————————————-<\/p>\n

\u201cHouston, we have a problem\u201d is apropos to this discussion. Folks, HUD is signaling that there is a big problem out there in \u2018mortgage-land\u2019 and we need to recognize it. What I find astonishing is the number of mortgage company executives and business owners doing business with HUD that do not know what their company\u2019s HUD compare ratio is. Even more surprising, some don\u2019t even know what a HUD compare ratio is. Ignorance is not a defense. If you don\u2019t know, go to https:\/\/entp.hud.gov\/sfnw\/public\/EarlyWarnings.cfm<\/a> and look up your own compare ratio. And while you are there, you may want to check out the compare ratio of the companies with whom you are doing business or considering doing business. You may be surprised.<\/p>\n

Another alarming rational I hear as to why some mortgage executives want to get their company approved by Ginnie Mae is this\u2026 \u201cSo we can get around the stringent \u2018restrictive\u2019 credit overlays of bank correspondent lenders and \u2018sell\u2019 directly to Ginnie Mae\u201d. As Mark Twain said, \u201cTo \u2018succeed\u2019 in life, you need two things: ignorance and confidence.\u201d It would seem that there is some amount of both in our industry today. When Warren Buffett said, \u201cWhen you combine ignorance and leverage, you get some pretty \u2018interesting\u2019 results,\u201d I wonder if he was talking about some of the attitudes present in the mortgage industry today?<\/p>\n

Being an optimist, I want to believe it isn\u2019t too late. Yet each week more and more articles are focusing on the future of HUD with a question mark. It seems as if the questions are growing at a rate faster than the answers\u2026 not an encouraging trend. The thought of HUD not being there as we have known was unthinkable a short time ago. Yet today, we face the distinct reality that the \u201cunthinkable\u201d is possible, although I want to believe, avoidable. HUD Inspector General Donohue and FHA Commissioner Stevens are doing everything possible to shore up HUD\u2019s foundations and preserve not only our industry but the foundation of our economy\u2026 housing!<\/p>\n

We all need to get behind what is being done specifically by Commissioner Stevens by: (#1) educating the ignorant, (#2) by publicly supporting Commissioner Stevens initiatives to \u201craise the bar\u201d on the loans being insured by HUD and (#3) refuse to do business with companies that are refusing to take the necessary steps to make the HUD programs strong again.<\/p>\n

With that in mind, I launched a weekly radio program last year where we digest and discuss the hottest and most relevant topics facing our industry each and every week. For example, we discuss regularly the Tsunami of regulations flooding our industry as well as the latest initiatives by HUD to shore up and strengthen the Department.<\/p>\n

\"Lykken<\/a>Please join me each Monday, Noon Central, along with my regular guests, Alice Alvey of Mortgage-U and Joe Farr of MBS Quoteline, as well as other special guests by clicking on this link\u2026 http:\/\/www.blogtalkradio.com\/search\/lykken-on-lending\/<\/a> I welcome your feedback and any \u201chot topic\u201d suggestions you might have. If you are interested and your topic is relevant, I would welcome having you as a guest on the program. If interested, please e-mail at Dlykken@MortgageBankingSolutions.com<\/a> or call (512) 977-9900 ext. 101. <\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

by David Lykken, Managing Partner, Mortgage Banking Solutions a leading consulting firm to the mortgage industry. HUD\u2019s press release below may seem like \u201cold news\u201d to some, but you may be surprised how many mortgage executives are not getting the message. For this reason, this press release needs to be republished weekly. ———————————————————————————————————— HUD No.10-005 […]<\/p>\n","protected":false},"author":6244,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-438797","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/438797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/6244"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=438797"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/438797\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=438797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=438797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=438797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}