With the Brexit-induced bump to the summer housing market, many realtors, lenders and other real estate professionals are anticipating a busy season ahead. With increased sales volume comes the need for diligent reporting and compliance. Federal regulation is likely to tighten up this year between TRID’s grace period ending and new Consumer Financial Protection Bureau Supervisory guidelines, so make your closings as accurate as possible to avoid potential penalties.
Issue Background
Britain’s controversial departure from the European Union caused the Pound’s valuation to plummet, leading to global financial concern and investors scrambling toward stable bonds instead of fluctuating stocks. The nature of the bond market means that high demand equals low yield — and since mortgage rates traditionally fall in lockstep with 10-year Treasury returns, interest on traditional 30-year fixed-rate loans is approaching record lows.
A Busy Summer
At the same time, the US housing market is recovering from 2008’s financial crisis. Property valuations are up across the country, creating a perfect storm for purchases and refinancing alike. Homeowners who waited out the lean years of the Great Recession are now at liberty to sell, tap into accumulated equity, or refinance their existing loan; meanwhile, new buyers are being tempted into the market by appealing interest rates.
Staying Above Board
Keeping a tidy, honest business structure doesn’t just avoid compliance penalties: it keeps your customers happy. Scrutinizing the appraisal methodology and details before quoting a sale price, for example, will help you stay secure in the knowledge that you’re providing clients with the most honest and accurate estimate possible. Staying respectful of a buyer’s stated price range will strengthen relationships, encourage referrals, and prevent even the possibility of fraud allegations.
It’s also important to keep an eye out for potentially unscrupulous buyers. A client looking to buy property for someone else (unless it’s an intentional rental investment) is probably not worth the risk of dealing with a fraud case. Similarly, stay cognizant of the buyer’s funding options to avoid getting involved — even peripherally — in unethical double-mortgage situations.
In a fast-paced market, it’s essential to keep protocols as clear, streamlined, and above-board as possible from the start. Whether you are an individual contractor or member of a realty team, your reputation is your livelihood — so do the work now and avoid costly penalties down the line.
Greater Compliance and Quicker Closings with Champion Title
Champion Title is a premier title insurance company that helps realtors and lenders in Maryland, Virginia, and Washington, D.C. streamline closings, keep up with demand, and stay in compliance with regulations. For more information on how we serve the DC region, please visit our homepage today.