NCUA’s Post

Post on New AVM Rule for Credit Unions Who: Six federal regulatory agencies, including the NCUA. What: A new rule to ensure the credibility and integrity of Automated Valuation Models (AVMs) used for mortgage valuations. Where: Applies to all institutions using AVMs in the United States. How It Affects Credit Unions: - Positive Impacts: - Ensures accurate property valuations. - Protects against data manipulation. - Upholds nondiscrimination laws. - Potential Challenges: - Increased compliance costs. - Operational adjustments. Required Actions: 1. High-Confidence Estimates: Utilize validated AVMs. 2.Data Protection: Implement strong security measures. 3. Conflict of Interest: Develop and enforce conflict avoidance policies. 4. Random Sample Testing: Conduct regular quality tests on AVM outputs. 5. Compliance with Nondiscrimination Laws: Review AVM methods for fairness. For more details, visit the link below:

The white elephant in the room. When I see quotes like “won’t disclose the range of its loan-to-value ratios or occupancy rates for its portfolio. That is because its core data processing system is “not designed to provide meaningful data at that level of detail,” CFO Scott Shockey said in a Dec. 15 letter.” It makes me question how some of these banks are able to adequately report to investors. What do you mean you’re software is not designed to provide meaningful data on LTVs and occupancy rates? Banks require quarterly financials and rent rolls from borrowers. How hard is it to have that logged and then derive a value based upon recent comparable sales and income-approach to get to current LTV?

The SEC is now examining community and regional banks regarding their exposure to #CommercialRealEstate in their loan portfolios. They recently released four letter exchanges in which they questioned smaller financial firms about their #CRE exposure. This scrutiny comes amid concerns that potential losses on CRE loans could lead to further reductions in lending by banks As Mark Gmaurer explains in the piece below, this reflects a broader concern about the stability of our financial system, similar to what we observed during the 2008-09 financial crisis. #RealEstate #RE

🚨 Legal Update: The U.S. Supreme Court has unanimously ruled that the National Bank Act preemption standard under the Dodd-Frank Act requires a practical assessment of state law interference, rejecting a more rigid standard. This decision vacates the Second Circuit's judgment in Cantero v. Bank of America, which involved a New York law on mortgage escrow interest. The ruling emphasizes nuanced analysis over clear-cut rules, impacting future NBA preemption cases. National banks should reassess their preemption strategies. Husch Blackwell's Susan Manship Seaman explains: https://lnkd.in/gyt2uUfn #consumerfinance #SCOTUS #BankingLaw

https://lnkd.in/er9bK7aV In the past week, the SEC released four letters in which they questioned smaller financial firms about their commercial real-estate exposure in their loan portfolios. Due to high interest rates and high vacancies in the commercial property industry, borrowers face a record number of looming maturities and the prospect of defaults. This could mean that these small to medium sized lenders could face losses for years. These letters show the SEC's interest in determining whether investors can appropriately assess a bank’s financial soundness based on disclosure of their loan portfolios. Alerus Financial and the holding companies behind Mid Penn Bank, Ohio Valley Bank and MainStreet Bank were the firms that received these public letters from the SEC. #SEC #commercialrealestate #realestate #interestrates #commercialproperties #loans https://lnkd.in/eP8dXeUm

With more Australians facing cost-of-living challenges, ASIC has increased its focus on how lenders support customers in financial hardship. In this article, we cover everything you need to know about better practices in responding to financial hardship. The practical guidance is of relevance to providers of other financial products and services.

⭐ Dodd-Frank and the upcoming NAR settlement share a common goal: increased consumer protection. Dodd-Frank primarily focused on financial institutions, imposing stricter regulations on lending practices to prevent another financial crisis. The NAR settlement, on the other hand, directly impacts real estate brokerage operations, with a focus on consumer choice and potential fee structures. As lending professionals, we've navigated the complexities of Dodd-Frank. This experience equips us to support our realtor partners as they adapt to the NAR settlement. Let's approach this transition together. By sharing our knowledge, offering practical advice, and maintaining open communication, we can strengthen our partnerships and ensure a smooth transition for our clients. 📣 Empathize: Acknowledge the challenges realtors face and assure them they're not alone. 📣 Offer support: Provide practical advice on how to navigate the changes, such as streamlining processes or utilizing technology. 📣 Collaborate: Suggest joint educational sessions or webinars to inform clients about the changes. 📣 Reassure: Emphasize the continued importance of strong partnerships between loan officers and realtors. By working together, we can turn challenges into opportunities and deliver exceptional service to our clients. #DoddFrank #NARsettlement #realestate #lending #industrychanges #collaboration #partnership Travis Saxton Jonathan Peterson

How can we help customers when times are tricky? By understanding what they’re worried about, addressing their concerns and making them feel reassured.    71% of the people with adverse credit in our Specialist Lending Study are concerned about their financial future right now. That’s up from 61% last year. Of these people, 13% say they are very concerned about their finances.    Knowing where those fears stem from, and how to help them feel more secure, is vital.    Read the full Specialist Lending Study to find out more: https://lnkd.in/ez6re3bb     #Brokers #Mortgagebrokers #Specialistlending #PepperMoneyUK

Now it's 2024 and a number of lenders are reducing their rates, which could mean easing that financial hit we're all feeling! Talking to an adviser as soon as you can is crucial to avoid rushing and potentially ending up with a less favourable deal. Find out further information about our services here: www.perfectprotect.co.uk #PerfectProtect #mortgageadvisor #property #protectyourfamily #lifeinsurance #financialplanning

Why did Matthew Perry only have $1.5M in his bank account despite his $120M net worth? The answer lies in the power of trusts as an estate planning tool! And trusts aren’t just for the rich and famous. In this week’s article, learn about the advantages of trusts and how to use them to your benefit, just like our famous Friend did. #EstatePlanning #PowerofTrusts Check out our new article now! https://lnkd.in/eTxiGga6