Christopher Shearer

Chrisotpher Shearer

OFHEO's Mission (more info: http://www.ofheo.gov/ )

OFHEO's mission is to promote housing and a strong national housing finance system by ensuring the safety and soundness of Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation). OFHEO works to ensure the capital adequacy and financial safety and soundness of two housing government-sponsored enterprises (GSEs) -- Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac are the nation's largest housing finance institutions. They buy mortgages from commercial banks, thrift institutions, mortgage banks, and other primary lenders, and either hold these mortgages in their own portfolios or package them into mortgage-backed securities for resale to investors. These secondary mortgage market operations play a major role in creating a ready supply of mortgage funds for American homebuyers. Combined assets and off-balance sheet obligations of Fannie Mae and Freddie Mac were $4.2 trillion at year-end 2005.

Fannie Mae and Freddie Mac are Congressionally-chartered, publicly-owned corporations whose shares are listed on the New York Stock Exchange. Under terms of their GSE charters, they are exempt from state and local taxation and from registration requirements of the Securities and Exchange Commission. Each firm has a back-up credit line with the U.S. Treasury.

OFHEO's oversight responsibilities include:

Conducting broad based examinations of Fannie Mae and Freddie Mac; Developing a risk-based capital standard, using a "stress test" that simulates stressful interest rate and credit risk scenarios; Making quarterly findings of capital adequacy based on minimum capital standards and a risk-based standard; Prohibiting excessive executive compensation; Issuing regulations concerning capital and enforcement standards; and Taking necessary enforcement actions.

OFHEO is funded through assessments of Fannie Mae and Freddie Mac. OFHEO's operations represent no direct cost to the taxpayer. In its safety and soundness mission, OFHEO has regulatory authority similar to such other federal financial regulators as the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the Board of Governors of the Federal Reserve System.

The legislation that established OFHEO also requires Fannie Mae and Freddie Mac to meet certain affordable housing goals set annually by the Secretary of Housing and Urban Development. These goals specify the share of mortgages that the two GSEs are required to purchase annually from low-income, moderate-income and central-city homebuyers.

Christopher Shearer

New Appraisal Ordering Process

In order to comply with the new Agency HVCC (Home Valuation Code of Conduct) directive, Fifth Third Wholesale Mortgage has implemented a new appraisal ordering process. Effective with new applications taken May 1, 2009, the HVCC directive requires lenders to order all appraisals. This directive applies to all products except FHA.

The HVCC is designed to strengthen the independence of the appraiser and thus enhance the integrity of the appraisal process. This in turn will enhance confidence in the national housing finance system.

Fifth Third Mortgage has established relationships with outside Appraisal Management Companies (AMCs), to provide appraisal services throughout our footprint. We have also contracted with RealEC Technologies to provide a single web portal for the appraisal ordering process. The Broker and Borrower will pay the upfront costs directly to the AMCs, and Fifth Third Mortgage will order the appraisal following confirmation of receipt of payment. This process will keep us compliant with the HVCC directive. The transaction price list applicable to all AMCs is attached to this e-mail.

More info: http://www.ofheo.gov/

Christopher Shearer

Home Valuation Code of Conduct

I. No employee, director, officer, or agent of the lender, or any other third party acting as joint venture partner, independent contractor, appraisal management company, or partner on behalf of the lender, shall influence or attempt to influence the development, reporting, result, or review of an appraisal through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery, or in any other manner including but not limited to:

1) withholding or threatening to withhold timely payment for an appraisal report;

2) withholding or threatening to withhold future business for an appraiser, or demoting or terminating or threatening to demote or terminate an appraiser1;

3) expressly or impliedly promising future business, promotions, or increased compensation for an appraiser;

4) conditioning the ordering of an appraisal report or the payment of an appraisal fee or salary or bonus on the opinion, conclusion, or valuation to be reached, or on a preliminary estimate requested from an appraiser;

5) requesting that an appraiser provide an estimated, predetermined, or desired valuation in an appraisal report, or provide estimated values or comparable sales at any time prior to the appraiser's completion of an appraisal report;

6) providing to an appraiser an anticipated, estimated, encouraged, or desired value for a subject property or a proposed or target amount to be loaned to the borrower, except that a copy of the sales contract for purchase transactions may be provided;

7) providing to an appraiser, appraisal management company, or any entity or person related to the appraiser or appraisal management company, stock or other financial or non-financial benefits;

8) allowing the removal of an appraiser from a list of qualified appraisers used by any entity, without prior written notice to such appraiser, which notice shall include written evidence of the appraiser's illegal conduct, a violation of the Uniform Standards of Professional Appraisal Practice

1 An "Appraiser" must be licensed or certified by the state in which the property to be appraised is located.

(USPAP) or state licensing standards, substandard performance, or otherwise improper or unprofessional behavior;

9) ordering, obtaining, using, or paying for a second or subsequent appraisal or automated valuation model in connection with a mortgage financing transaction unless there is a reasonable basis to believe that the initial appraisal was flawed or tainted and such basis is clearly and appropriately noted in the loan file, or unless such appraisal or automated valuation model is done pursuant to a bona fide pre- or post-funding appraisal review or quality control process; or

10) any other act or practice that impairs or attempts to impair an appraiser's independence, objectivity, or impartiality.

Nothing in this section shall be construed as prohibiting the lender (or any third party acting on behalf of the lender) from requesting that an appraiser (i) provide additional information or explanation about the basis for a valuation, or (ii) correct objective factual errors in an appraisal report.

II. The lender shall ensure that the borrower is provided, free of charge, a copy of any appraisal report concerning the borrower's subject property immediately upon completion, and in any event no less than three days prior to the closing of the loan. The borrower may waive this three-day requirement. The lender may require the borrower to reimburse the lender for the cost of the appraisal.

III. The lender or any third-party specifically authorized by the lender (including, but not limited to, appraisal management companies and correspondent lenders) shall be responsible for selecting, retaining, and providing for payment of all compensation to the appraiser. The lender will not accept any appraisal report completed by an appraiser selected, retained, or compensated in any manner by any other third-party (including mortgage brokers and real estate agents).

IV. All members of the lender's loan production staff, as well as any person (i) who is compensated on a commission basis upon the successful completion of a loan or (ii) who reports, ultimately, to any officer of the lender other than either the Chief Compliance Officer, General Counsel, or any officer who is not independent of the loan production staff and process, shall be forbidden from: (1) selecting, retaining, recommending, or influencing the selection of any appraiser for a particular appraisal assignment or for inclusion on a list or panel of appraisers approved to perform appraisals for the lender; (2) any communications with an appraiser, including ordering or managing an appraisal assignment; and (3) working together in the same organizational unit, or being directly supervised by the same manager, as any person who is involved in the selection, retention, recommendation of, or communication with any appraiser. If absolute lines of independence cannot be achieved as a result of the originator's small size and limited staff, the lender must be able to clearly demonstrate that it has prudent

safeguards to isolate its collateral evaluation process from influence or interference from its loan production process.

V. Any employee of the lender (or if the lender retains an appraisal management company, any employee of that company) tasked with selecting appraisers for an approved panel or substantive appraisal review must be (1) appropriately trained and qualified in the area of real estate and appraisals, and (2) in the case of an employee of the lender, wholly independent of the loan production staff and process.

VI. In underwriting a loan, the lender shall not utilize any appraisal report prepared by an appraiser employed by:

(1) the lender;

(2) an affiliate of the lender;

(3) an entity that is owned, in whole or in part, by the lender;

(4) an entity that owns, in whole or in part, the lender

(5) a real estate "settlement services" provider, as that term is defined in the Real Estate Settlement Procedures Act, 12 U.S.C.§ 2601 et seq.;

(6) an entity that is owned, in whole or in part, by a "settlement services" provider.

The lender also shall not use any appraisal report obtained by or through an appraisal management company that is owned by the lender or an affiliate of the lender, provided that the foregoing prohibitions do not apply where the lender has an ownership interest in the appraisal management company of 20% or less and where (i) the lender has no involvement in the day-to-day business operations of the appraisal management company, (ii) the appraisal management company is operated independently, and (iii) the lender plays no role in the selection of individual appraisers or any panel of approved appraisers used by the appraisal management company.

Notwithstanding these prohibitions, the lender may use in-house staff appraisers to (i) order appraisals, (ii) conduct appraisal reviews or other quality control, whether pre-funding or post-funding, (iii) develop, deploy, or use internal automated valuation models, or (iv) prepare appraisals in connection with transactions other than mortgage origination transactions (e.g. loan workouts).

VII. The lender will establish a telephone hotline and an email address to receive any complaints from appraisers, individuals, or any other entities concerning the improper influencing or attempted improper influencing of appraisers or the

appraisal process, which hotline and email address shall be attended only by a member of the office of the General Counsel, Chief Compliance Officer or other independent officer. In addition: (1) each appraiser now or hereafter on any list of approved appraisers, or, upon retention by the lender, will be notified, in a separate document, of the hotline and email address and their purpose; and (2) each borrower, as part of a cover letter accompanying the provided appraisal, will be notified of the hotline and email address and their purpose. Within 72 hours of receiving any complaint, the lender will begin a preliminary investigation of the complaint and upon completing the inquiry (or, after a period not to exceed 60 days, whichever shall come first) shall notify the Independent Valuation Protection Institute and any relevant regulatory bodies of any indication of improper conduct. The name and any identifying information of the person or entity that has filed such a complaint shall be kept in strictest confidence by the office of the General Counsel, Chief Compliance Officer or other independent officer, except as required by law. The lender shall not retaliate, in any manner or method, against the person or entity which makes such a complaint.

VIII. The lender agrees that it shall quality control test, by use of retroactive or additional appraisal reports or other appropriate method, of a randomly-selected 10 percent (or other bona fide statistically significant percentage) of the appraisals or valuations which are used by the lender, including the results of automated valuation models, broker's price opinions or "desktop" evaluations. The lender shall report the results of such quality control testing to the Independent Valuation Protection Institute and any relevant regulatory bodies.

IX. Any lender who has a reasonable basis to believe an appraiser is violating applicable laws, or is otherwise engaging in unethical conduct, shall promptly refer the matter to the Independent Valuation Protection Institute and to the applicable State appraiser certifying and licensing agency.

X. The lender shall certify, warrant and represent that the appraisal report was obtained in a manner consistent with this Code of Conduct.

XI. Nothing in this Code shall be construed to establish new requirements or obligations that (1) require a lender to obtain a property valuation, or to use any particular method for property valuation (such as an appraisal or automated valuation model) in connection with any mortgage loan or mortgage financing transaction, or (2) affect the acceptable scope of work for an appraiser in connection with a particular assignment.

From: http://www.ofheo.gov/

Christopher Shearer

HUD's Management and Marketing (M&M) Program

Common Questions

Question 1 - How do I register as a HUD-qualified real estate broker?

Answer - You can register through your local M&M contractor. (additional instructions)

Question 2 - I'm already a HUD-qualified broker and would like to continue selling HUD homes. Must real estate brokers re-register with HUD?

Answer - Yes. Effective the spring 2003, HUD requires annual recertification. All brokers were recertified at that time. You must have a valid broker's license for recertification.

Question 3 - I was just recertified by HUD but my broker's license expires before the end of this year. Do I need to be recertified?

Answer - Yes. If your license expires before the recertification date you must be recertified again. A broker must be recertified whenever a license expires.

Question 4 - I've heard that brokers must bid electronically under the M&M contractor program. I've never done that before with HUD, so how will I know how to do this type of bidding?

Answer - Contact your local M&M contractor for instructions.

Question 5 - If I don't have access to a computer, how do I submit an electronic bid?

Answer - You can submit bids by touch-tone telephone. Contact your local M&M contractor for a special dial-in number.

Question 6 - Is it true that I can no longer earn 6% in sales commissions?

Answer - HUD will pay up to 5% in commission if you are the successful selling broker and not the listing broker. The listing broker is paid up to 1%.

Question 7 - Who do I contact if I want to hold an open house?

Answer - Contact your local M&M contractor.

Question 8 - Can I still advertise HUD Homes?

Answer - Yes, at your own expense and in accordance with HUD advertising guidelines. Contact your local M&M contractor for more information.

Question 9 - Who do I contact if I have complaints about the maintenance of a HUD home?

Answer - Contact your local M&M contractor or the Homeownership Center that has jurisdiction over the property. You may also contact the FHA Resource Center at 1 (800) CALL-FHA or 1 (800) 225-5342.

From: http://www.hud.gov

Christopher Shearer

Good Morning,

I would love to hear your feedback...

1. Have you personally noticed small business having greater access to loans?

2. What advise would you offer a small business in getting started as far as financing?

3. What in your opinion would help small business captialize better through the SBA?

WASHINGTON (CNN) -- President Barack Obama vowed Monday to ease the financial plight of the nation's small businesses, promising immediate action to revive frozen credit markets.

President Obama on Monday, with Treasury's Timothy Geithner, says small businesses are job generators.

The president called small businesses "one of the biggest drivers of employment that we have" and said his administration is "working diligently to increase liquidity throughout the financial system."

Obama spoke to reporters after he and Treasury Secretary Timothy Geithner met in the White House with representatives of the Small Business Administration.

But Obama cautioned that it will be a long-term effort. "Understand, this is still going to be a first step in what is going to be a continuing effort to make sure people get credit out there," he said.

Geithner said the administration is moving "with exceptional speed" on aid to small businesses after more than a year of recession.

He vowed the administration will create a "substantial program" to get credit flowing and to ease the nation's housing crisis. Watch as Obama says, "Small businesses are the heart of the American economy" »

Geithner said the package will nearly double, to $250,000, the new capital investment that can be written off and said it will include provisions to reduce and then eliminate capital gains taxes in stock and to make health insurance more affordable.

In addition, the Internal Revenue Service announced Monday that small businesses will be able to carry back business losses for five years instead of the current two years "in order to increase your cash flow as we come out of this period and allow you to invest more in your operations."

Geithner then directed comments to the banks, urging them "to go the extra mile."

Those banks that individually choose to "pull back out of a sense of prudence and caution" result in a collective impact that will weaken the economy, he said.

"This dynamic can feed on itself."

He noted that many banks got into trouble by taking too much risk, but he said, "The risk now to the economy is that you will take too little risk."

Geithner said the nation's top 21 banks receiving assistance will be required to report on a monthly basis how much they are lending to small businesses.

Even small businesses with good credit histories have been denied loans in the downturn. This year, at current rates, SBA-guaranteed new loans would not reach $10 billion. In an average year, it guarantees $20 billion in loans.

Christina Romer, who heads the Council of Economic Advisers, said Sunday the government would pump "a significant amount" of money into boosting small business lending, but she did not reveal a total figure.

"We know that small businesses are the engine of growth in the economy, and we absolutely want to do things to help them," Romer said on NBC's "Meet the Press."

Two senior administration officials said the administration's plan deals with two programs handled by the SBA.

The first one, the "7(a) program," allows small businesses to get loans of up to $2 million backed by the federal government through the SBA. Currently, the government guarantees up to 85 percent of loans below $150,000, and up to 75 percent of larger loans. Under the administration's plan, the government temporarily will increase the loan guarantee to 90 percent as an incentive to banks to lend.

The administration believes this increase will reduce the risk lenders face when they make loans to borrowers who cannot find credit elsewhere and ultimately give the banks more confidence to sell and make more loans, the officials said.

The second program, the "504 program," guarantees up to $4 million worth of economic development projects for small businesses. Starting Monday, the administration temporarily will eliminate fees for lenders and borrowers on any new 504 applications. The aim is to reduce the costs to both borrowers and lenders participating in the program, the officials said.

The administration also temporarily will eliminate the upfront fees for 7(a) loans that banks charge borrowers. These fees go up to 3.75 percent for larger loans.

The administration believes this move will decrease the cost of borrowing for small businesses and make it easier for them to get the credit they need to make new investments, the officials said.