Description
As we begin 2025, interest rates are still volatile and houses are still expensive. Consumers are feeling the pinch, and community financial institutions are trying to respond every way they can.
What are these responses looking like?
- Some institutions are getting creative with their advertising (“Date the Rate, Marry the Loan”);
- Buydowns are a thing again;
- Points are popular;
- Assumptions are seeing a resurgence as existing loans’ low rates become a selling point
- Lenders are getting lots of questions about renewals, refis, and modifications as loans approach reset periods or maturity dates;
- ARM notices are getting more attention than they’ve seen in over a decade.
- Social Media influencers (and your lenders?) speculate on “The Cost of Waiting”
The low fixed rates of yesteryear lulled many bankers into variable rate complacency. We didn’t have to think too much about them, because we were too busy making loans in the hot market. Now that rates have climbed, variable rates have become quite relevant again.
The compliance issues surrounding variable rates are voluminous. Get a refresher on the multiple compliance items to watch far, as well as get a handle on the creative methods the industry is employing to keep loan volume going. Topics covered include:
- ATR / QM considerations for variable rate loans
- Buydowns
- Discount Points
- Assumptions
- Renewals
- Modifications (the rules are different for open-end vs closed-end!)
- Refinances (including the special variable rate trigger)
- ARM Disclosure requirements:
- From Application disclosure to CHARM to TRID
- Premium and discount rates
- ARM Notice compliance
- Advertising
- RESPA Section 8 as lenders grow partnerships with realtors
Good grief! That is a lot to keep straight in an adjusting landscape. Gain facts, tips, and perspective from a veteran compliance pro (25 years!) who does this stuff everyday as the Director of Compliance for a community bank.
* Please note that the recording access will be delivered to you via a downloadable document in your confirmation e-mail. The materials that corresponds with the recording will be automatically delivered upon purchasing via email from the website.
