The question of the Consumer Financial Protection Bureau’s take on the way in which loan originators are compensated has sparked conversation this week following an outline of the CFPB’s plans for upcoming rule making which would place controls on discount points, origination fees and broker compensation. 

“The Consumer Financial Protection Bureau (CFPB) is considering putting strict limits on a creditor’s ability to price its mortgage loans, and on a consumer’s ability to choose among pricing options,” an attorney with K&L Gates explains in a memo. “By way of implementing the far-reaching provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB is proposing to require that when a creditor pays a mortgage loan originator’s compensation (which includes most mortgage loan transactions), any up-front amounts the consumer pays for the loan must be in the form of bona fide discount points that reduce the interest rate or a flat origination fee that does not vary with the loan amount.

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The number of homes on the market for sale was down 21% nationally in May from May 2011, a monthly report from Pro Teck shows. The figure has a direct impact on the prices in various markets, the valuation services company says.

The volumes of homes for sale has declined as much as 40% to 50% in some markets, according to the report. Notably, it says, Phoenix, Miami, Atlanta, Orlando, and Riverside-San Bernardino, some of the most widely followed and hardest hit since the peak markets, are high on this list.

Some of those hardest hit areas are beginning to see a turnaround, with buyers taking advantage of historic low prices.

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A new study finds the Federal Housing Administration is largely serving a population it didn’t necessarily set out to assist. Instead of aiding low-income borrowers, the FHA is increasingly serving home buyers whose incomes exceed those of average Americans, according to a report released Thursday by the George Washington University’s Center for Real Estate and Urban Analysis. 

“Nationally, more than 30% of the 2010 mortgages guaranteed by the FHA—an entity historically focused on first-time, low-income and minority borrowers—are made to families making more than 115% of area median income (AMI),” the report states. “Of the 30%, more than half went to those with incomes greater than 150% of AMI.”

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Reverse mortgage lenders are hiring now more than ever following big bank exits from the business. The list of lenders on the search has grown to include companies large and small, from phone originators to boots-on-the ground. Urban Financial, Cherry Creek, Genworth Financial and Reverse Mortgage Solutions are all hiring and the list continues to grow. 

Whether you are seeking a position in operations, originating or underwriting, of if you are interested in becoming a branch, check out the following opportunities that are now open across the U.S. Or for a complete list of jobs, visit Reverse Mortgage Jobs Online.

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Silvergate Bank announced near-record earnings Tuesday, citing $53.5 million in reverse mortgage purchases as making a strong contribution to the bank’s bottom line.

The La Jolla, Califonia-based bank reported net income of $1.0 million for the first quarter of 2012, up 33% from $773,000 in the first quarter of 2011.

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The Consumer Financial Protection Bureau says it is listening to mortgage industry feedback in its loan originator compensation rule making. A federal official told industry members Tuesday that its recent rule making discussion is far from final, according to a report from National Mortgage News. Additionally, the CFPB says it will consider industry input as it formulates its final rules in the coming months.

The CFPB recently outlined the potential rules regarding loan originator compensation, including a point that could be “problematic” for reverse mortgage originators, as noted in a memo by National Reverse Mortgage Lenders Association legal counsel. NRMLA has asked the CFPB to alter its rule making accordingly.

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