officer Nho Seon-mi surveyed 226 coroners and CSI investigators that had at least one year of field experience.
Russell Bernstein from the GMPA
said: "It is inappropriate to pass comment about the report contents at this time as we are not in possession of the report findings.
It's conceivable in my mind that if GMPAs
are implemented by an increasing number of players in the next few years, small lenders may find the GSEs assisting in providing technology to deliver guaranteed mortgage package solutions to them.
"We have designed OneFee Services to work within HUD's [the Department of Housing and Urban Development's) proposed ruling for GMPA
so it would not impact the way that OFS would operate," says Sullivan.
In addition to simplifying the GMP to a guarantee of settlement costs, many of the lender commenters noted that, until TILA and RESPA are fully harmonized, HUD should refrain from importing TILA disclosures into the GMPA. The principal concern expressed was that incorporation of TILA loan terms into RESPA disclosures would be inconsistent and redundant, as well as confusing for consumers.
Certain of these groups (CMC, AFSA and NHEMA) suggested that the GMPA should include only those terms that identify the basic features of the loan (i.e., the loan does or does not contain a prepayment penalty, constitute an adjustable-rate mortgage [ARM] or contain a scheduled balloon payment).
Outside of the interest rate guarantee, TILA disclosures and safe harbor exemption, the GMP-supporter comments surveyed focused on the following points: (1) packagers should be able to charge an upfront fee sufficient to cover the costs of the GMP offer, (2) the GMP offer should remain valid for 10 or fewer days rather than the proposed 30 days, (3) the revised Special Information Booklet should contain the lion's share of explanatory information that the proposed rule currently includes in the model GMPA form and (4) certain costs should be excluded from the GMPA.
"There are problems with the GMPA proposal," says Birmingham, Alabama-based attorney Maury Shevin, a partner with Sirote & Permutt PC, Birmingham, Alabama, who calls it one-sided.
Shevin says there is also debate within the industry as to who will be able to offer GMPAs. "Small mortgage lenders will have a difficult time competing with the large lenders, and lenders will have an advantage over other settlement service providers in becoming packagers," he argues, because the loan itself continues to be the major component of the GMPA.
Finally, the most novel of the proposal's RESPA revisions would create a new system of guaranteed cost disclosures (Guaranteed Mortgage Package Agreement, or GMPA) protected by a new Section 8 safe harbor.
And entities other than lenders could offer a GMPA, but when that occurs, the lender would be required to sign the GMPA after the borrower agrees to accept the loan described in the disclosure.
In addition, as all of Sage's products are manufactured under current GMPas
required by the FDA the chosen solution would need to enable them to comply with these requirements.