[David] Alice, let’s get over to you. Anything legislatively happening? They had a big, beautiful bill passed. A lot of positive things to that.
[Alice] Yes. Actually, I was going to pick up a little bit where Adam had left off. So I do encourage everyone to read what the MBA had put together that I liked things from a mortgage perspective that passed in that bill that were related to tax changes and budget issues. So that part was great. So he already provided that list. The part I was curious about what the bill was, the impact to the agencies that we work with. So I took a look at that and of course with a little help from AI and I was curious about HUD, FHA, CFPB has been a topic in a couple of conversations on the budget and just wanted to clarify at least from doing some of my research here. The Fed funded portion that goes to CFPB was usually capped out at 12%, and we’ve reported on this in the past on how much each year the CFPB actually requested and then actually used. And so it does appear in this new version of the bill, the one that was actually passed. Cut that in half to 6%. The maximum that they can request a year. So where they may have requested 600 million dollars, now they’re gonna be down around 300. So that’ll have a big impact. I’m sorry. They changed it down to six and half percent of the Federal Reserve earnings. There was a version of the Senate bill apparently that had it go down to zero, but that was considered a violation of the rules in order to be able to move this thing through fast. So they had to come up with a compromise, and that was the six and a half. So CFPB will dramatically have cuts and what they’ll be able to do, and we’ll see how that plays out coming up in in these coming months. FHA though, they’re of course funded by their premium. So even though HUD might have a big change in their budget. FHA usually runs on its own. There’s definitely some impact there with technology funding and so forth. But so HUD did have some change with their funding. All the other agencies are funded through different insurances and fees. So those were the, that was the biggest thing I found. The CFBs funding was cut in half. The rest today you can, is in a list, like I said, that you all can read through MBA and that would be my summary for today on what happened in that bill be cause Congress is on vacation right now. They take their July 4th break to go back to their constituents and we’ll have more later in the summer if they decide to pay attention to some things. What I do wanna dovetail a little bit on what Marc brought up on manufactured homes and you guys were talking about housing. I would love to see FHA, I know their delinquency. We have to investigate what’s going on with delinquencies, but they could be a solution if they lightened up on their requirements for new manufactured homes. The new ones are in many ways better than current bill, their way to impact affordable housing. So I’m with Marc that we really need to focus on how new manufactured homes can really help the housing market today with FHAs Health.
[David] Yeah, I agree. And I think we’re gonna see is affordability issues are challenged. Especially when you look at the cost to red to home is half of what it costs to buy a home. Just on a transaction, on a month to month basis. That is a significant push towards the manufacturing. So I agree with you, Alice, very much.
Alice Alvey, Master CMB
She handles development of their World Class Training program designed to support UHM partners and organizational effectiveness.
Prior to UHM, Alice served as Senior Vice President at Indecomm leading the Indecomm-Mortgage U division, Internal QA and Compliance and SaaS technologies. Indecomm acquired Mortgage U in 2013, where Alice was President/Co-founder, providing training and consulting since 1996. Prior to MU she served as SVP of Operations at a national bank overseeing operations for wholesale, retail and correspondent from underwriting through servicing, and compliance.
She has been in the trenches of mortgage lending operations from application through servicing for over 30 years. Her authoring work in training content, policies and procedures and the FHA/VA Practical guides illustrates her ability to bridge regulatory requirements with day-to-day operations.
Alice has been a weekly contributor to the Lykken on Lending show since its beginning in April 2009 and has made her weekly contributions to 450+ episodes!