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Regulatory Updates

Freddie Mac Announces Guide Bulletin 2017-8

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SUBJECT: SELLING UPDATES This Guide Bulletin announces: Collateral representation and warranty relief – new automated collateral evaluation  Automated collateral evaluation, including requirements for: – June 19, 2017 (New)  Eligibility  Age of automated collateral evaluation offer  Delivery Condominium Projects  Simplified requirements for Detached Condominium Projects  Additions to our list of ineligible projects – May 31, 2017 and August 31, 2017  Elimination of separate underwriting paths for streamlined project reviews Appraisal and property specific requirements  Addition of Uniform Appraisal Dataset (UAD) condition and quality ratings and level of updating definitions to the Guide as new Exhibit 36  Additional details about the sales contract provided to the appraiser  Updates to our eligibility and appraisal requirements for a 1-unit property with an accessory unit – August 31, 2017 Area median income estimates  Updates to Loan Product Advisor® and the Home Possible® Income & Property Eligibility tool to reflect the area median income estimates for 2017 – June 13, 2017 EFFECTIVE DATE All the changes announced in this Bulletin are effective immediately unless otherwise noted. COLLATERAL REPRESENTATION AND WARRANTY RELIEF – NEW AUTOMATED COLLATERAL EVALUATION Effective June 19, 2017 Building on the collateral representation and warranty relief announced in Bulletin 2017-3, this Bulletin announces our automated collateral evaluation, which provides the Seller with the option to waive the appraisal requirements for certain Loan Product Advisor Mortgages. Freddie Mac’s automated collateral evaluation leverages data and proprietary models to assess whether the estimate of value provided by the Seller to Loan Product Advisor may be used to underwrite the Mortgage in lieu of the appraised value. When the Seller accepts an automated collateral evaluation offer to waive the appraisal, the Seller will be relieved of its representations and warranties related to value, condition and marketability of the property.

When accepted, this appraisal waiver will help shorten origination timelines and reduce costs for Sellers and Borrowers while providing greater certainty through collateral representation and warranty relief. Eligibility Loan Product Advisor offer The Seller will receive a feedback message indicating that a Mortgage is eligible for an appraisal waiver on the Loan Product Advisor Feedback Certificate. If the Mortgage is not eligible for an appraisal waiver, the Feedback Certificate will specify that an appraisal is required. If the Mortgage meets the eligibility requirements in this Bulletin and the Seller receives the feedback message indicating the Mortgage is eligible for the appraisal waiver, the Seller may accept the offer by delivering the Mortgage with the ULDD Data Points described in the “Delivery requirements” section below. Mortgage eligibility The following requirements apply for a Mortgage to be eligible for the appraisal waiver:  The Mortgage must be secured by a 1-unit Primary Residence or second home  The Mortgage must have a loan-to-value (LTV)/total LTV (TLTV) ratio less than or equal to 80%  The Mortgage must be a no cash-out refinance  Upon assessment by Loan Product Advisor, the Feedback Certificate must indicate the Mortgage is eligible for collateral representation and warranty relief with an appraisal waiver  The final submission to the Selling System® must indicate the collateral representation and warranty relief status is “Y” or “Yes” Ineligible Mortgages The following Mortgages are not eligible for an appraisal waiver:  Mortgages for which an appraisal has been obtained in connection with the Mortgage  Mortgages secured by one of the following:  A Condominium Unit  A Manufactured Home, or  A leasehold estate  Mortgages secured by Mortgaged Premises subject to resale restrictions  Construction Conversion and Renovation Mortgages  Freddie Mac Relief Refinance Mortgages SM – Same Servicer or Open Access  Mortgages with Freddie Mac Settlement Dates more than 120 days from the Note Date In addition, Sellers may not accept an appraisal waiver offer through Loan Product Advisor if any of the following apply:  The Seller is required by law or regulation to obtain an appraisal  The Seller is aware of conditions it believes warrant an appraisal being obtained. Examples include but are not limited to:  The property is located in an area recently impacted by a disaster  A contaminated site or hazardous substance exists affecting the property or the neighborhood in which the property is located Page 3 For Mortgages with appraisal waivers, the Seller must not make any representation that Freddie Mac has performed a property review or obtained a valuation of the Mortgaged Premises. Guide impacts: Guide Sections 4203.1, 4501.6, 4603.5 and 5601.9 Age of automated collateral evaluation offer The appraisal waiver offer is valid for 120 days. If the offer is more than 120 days old as of the Note Date, a resubmission to Loan Product Advisor is required to determine ongoing appraisal waiver eligibility. Note: If the Seller changes loan data (e.g., address of the property, loan amount, estimate of value, loan type, property type, occupancy of the property) in a subsequent Loan Product Advisor submission, the original offer may be invalidated and a different automated collateral evaluation eligibility determination may be provided. Guide impacts: Sections 5601.8 and 5601.9 Delivery requirements Once the Seller has accepted the appraisal waiver offer for a Mortgage, the Seller must deliver the following ULDD Data Points for the Mortgage:  Property Valuation Method Type (Sort ID 89) and enter a valid value of “None”  Investor Collateral Program Identifier (Sort ID 376) and enter a valid value of “Property Inspection Alternative” Guide impact: Section 6302.10 Additional resources We encourage Sellers to visit the Collateral Representation and Warranty Relief page on the Freddie Mac Learning Center for available training and resources. CONDOMINIUM PROJECTS Detached Condominium Projects As a result of recent Mortgage performance trends, we are simplifying the project eligibility requirements for Detached Condominium Projects: Detached Condominium Project Requirements Previous requirements Revised requirements The Seller was required to determine compliance with:  The Condominium Project review requirements in Section 5701.2(a), and  The Condominium Project eligibility requirements, which have two components:  General Condominium Projects in Section 5701.2(b), and  The Detached Condominium Project review type in Section 5701.7(b) The Seller was required to determine compliance with Section 5701.2(b), including determining that the project is not an ineligible project as specified in Section 5701.3. The Seller is required to determine compliance with:  The Condominium Project review requirements in Section 5701.2(a), and  The Detached Condominium Project eligibility requirements in Section 5701.7(b) The Seller is no longer required to determine compliance with Section 5701.2(b), including determining that the project is not an ineligible project as specified in Section 5701.3

 

Compliance with Sections 5701.2(a), 5701.2(b) and 5701.3 and one of the project review types in Guide Chapter 5701 is still required for all other Condominium Projects. Guide impacts: Sections 5701.2, 5701.3 and 5701.7 Ineligible Condominium Projects As a result of our research and analysis, we are updating our list of ineligible Condominium Projects in Section 5701.3 as follows:  Projects with names that include the words “hotel,” “motel,” “inn,” or “lodge” or a branded hotel chain or name remain ineligible unless the project does not have the characteristics of a hotel or similar type of transient housing  Projects with pending litigation involving minor matters that do not affect the safety, structural soundness, functional use or habitability of the project and in which the litigation amount is unknown may be eligible if the requirements in Section 5701.3(i) are met Additionally, effective August 31, 2017, we are updating our list of ineligible projects as follows:  A project or an investment in a project, including Condominium Unit ownership that is characterized or promoted as an investment opportunity, that could be deemed to be an investment security is an ineligible project  A project with mandatory dues or similar membership fees for the use of Amenities, such as clubhouses or recreational facilities, is ineligible with certain exceptions Guide impacts: Sections 1301.11, 5601.2 and 5701.3 Streamlined project review We are aligning and consolidating the maximum LTV/TLTV/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio requirements for “LP Accept Mortgages” and “All Other Mortgages” underwriting paths. The maximum LTV/TLTV/HTLTV ratio requirements are now indicated solely by occupancy type. As a result, the maximum LTV/TLTV/HTLTV ratio for streamlined project review of non-LP Accept Mortgages for Condominium Units in Established Condominium Projects not located in Florida is increasing from 80% to 90% for primary residences. Guide impact: Section 5701.4 APPRAISAL AND PROPERTY SPECIFIC REQUIREMENTS Uniform Appraisal Dataset (UAD) condition and quality ratings and level of updating definitions For ease of Seller use and efficiency in the appraisal underwriting process, we are incorporating the UAD condition and quality ratings and level of updating definitions into the Guide as new Guide Exhibit 36. These ratings and definitions were previously only published in UAD Specification Appendix D: Field-Specific Standardization Requirements, which is posted on our UAD web page. Guide impacts: Section 5601.12 and Exhibit 36 Information supplied to the appraiser – changes to the sales contract In response to Seller inquiries, we are specifying that Sellers are not required to provide the appraiser with an updated sales contract unless the updated terms impact the physical description or condition of the property. In such cases, the Seller must obtain an updated appraisal of the property. Changes to the sales contract that are not required to be provided to the appraiser include, but are not limited to:  Changes to the transaction terms such as sales price, financing or sale concessions, and  Date revisions, corrections to typographical errors, etc. Guide impact: Section 5601.3 Page 5 Property with an accessory unit Effective August 31, 2017 Currently, Freddie Mac will purchase a Mortgage secured by a 1-unit property with only one accessory unit. To assist Sellers in identifying an accessory unit, we are updating our requirements and guidance as follows:  Requiring that the accessory unit have a kitchen and a bathroom  Providing examples of characteristics that may indicate a 2-unit property rather than a 1-unit property with an accessory unit, such as the zoning and land use requirements, covenants or homeowners association requirements, the existence of separate meters, ingress/egress or separate addresses for the units We are updating our comparable selection requirements for a 1-unit property with an accessory unit that complies with the zoning and land use requirements (legal or legal non-conforming zoning compliance) to require that the appraisal must include at least one comparable sale with only one accessory unit. The accessory unit of the comparable sale must also comply with the zoning and land use requirements to demonstrate the conformity and marketability of the subject property to its market area. Additionally, to allow Sellers to deliver a Mortgage secured by a 1-unit property with an accessory unit that does not comply with the zoning and land use requirements (illegal zoning compliance), we are adding the following requirements:  The “Site” section of the appraisal report must indicate that the accessory unit does not comply with zoning and land use requirements (illegal zoning compliance)  At least two comparable sales with each having only one accessory unit must be included in the appraisal report. The accessory unit of each comparable sale must also be non-compliant with the zoning and land use requirements to demonstrate the conformity and marketability of the subject property to its market area  The Seller must confirm that the existence of the accessory unit will not jeopardize future hazard insurance claims Guide impacts: Sections 5601.2 and 5601.12 AREA MEDIAN INCOME ESTIMATES The FHFA has issued the area median income estimates for 2017. Loan Product Advisor and the Home Possible Income & Property Eligibility tool will be updated by start of business on June 13, 2017 to reflect the 2017 area median income estimates. Because some 2017 estimates are lower than the area median income estimates for 2016, Home Possible Mortgages underwritten using the 2016 area median income limits may no longer be eligible for sale. If a Home Possible Mortgage received an “AcceptEligible” evaluation prior to June 13, 2017, but receives an “Accept-Ineligible” when resubmitted to Loan Product Advisor on or after June 13, 2017 due only to the new area median income estimates (that is, no other purchase restriction/reason for ineligibility applies), we will honor the original Feedback Certificate for the “eligibility” and purchase the Mortgage as long as there is no change to the Borrower’s income and/or the address of the Mortgaged Premises. In these instances, the original Feedback Certificate (pre-June 13, 2017) must have been returned by Loan Product Advisor no more than 120 days before the Note Date and both Feedback Certificates must be retained in the Mortgage file. GUIDE UPDATES SPREADSHEET For a detailed list of the Guide updates associated with this Bulletin and the topics with which they correspond, refer to the Bulletin 2017-8 (Selling) Guide Updates Spreadsheet available at http://www.freddiemac.com/singlefamily/guide/docs/bll1708_spreadsheet.xls. CONCLUSION If you have any questions about the changes announced in this Bulletin, please contact your Freddie Mac representative or call Customer Support at (800) FREDDIE. Sincerely,

Christina K. Boyle

Senior Vice President

Single-Family Sales and Relationship Management

Source: http://www.freddiemac.com/singlefamily/guide/bulletins/pdf/bll1708.pdf

Regulatory Updates

The MPF Program Reminds Servicers of MI Cancellation Requirements for Conventional Loans

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Reminder of MI Cancellation Requirements for Conventional Loans Servicers are reminded of their obligation to comply with the Homeowners Protection Act (HPA), the Guides, and all other Applicable Laws when cancelling mortgage insurance (MI) on conventional loans. Servicers must have policies and procedures in place to ensure MI is cancelled in accordance with HPA requirements based on borrower-requested cancellation, automatic termination, or final termination requirements. The MPF Program has reviewed the MI cancellation requirements in the Guides and clarified the guidelines. Each cancellation option now has its own section in the Guide, so that the requirements for each option are clear. See MPF Traditional Servicing Guide chapter 4.7.2. All eligibility requirements as specified in the HPA are incorporated into and are a pre-condition of the MPF Program’s MI cancellation policy.

Servicers of MPF Traditional and MPF Xtra loans are required to report all MI cancellations and terminations on conventional loans to the Master Servicer within five (5) Business Days of termination using the MI Cancellation Notice (Form SG343). See the updated form for additional information. MPF Traditional Servicing Guide chapter 4.7.2.6 and MPF Xtra Servicing Guide section 4.6 have been updated with the revised reporting requirements.

 

Source: https://www.fhlbmpf.com/ANNOUNCEMENTS/Lists/announcements/Attachments/54/MPF%20Announcement%202017-25.pdf

Regulatory Updates

CFPB Issues Notice Regarding ATR/QM Rule Assessment

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The Bureau of Consumer Financial Protection (Bureau) is conducting an assessment of the ATR/QM Rule under the Truth in Lending Act (Regulation Z), in accordance with section 1022(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The Bureau is requesting public comment on its plans for assessing this rule as well as certain recommendations and information that may be useful in conducting the planned assessment.

FEDERAL REGISTER NOTICE

Notice of assessment of Ability-to-Repay/Qualified Mortgage rule and request for public comment

SUBMIT A FORMAL COMMENT

Regulations.gov comment form for this notice

PUBLIC COMMENTS

Read comments received 

 

Source: https://www.consumerfinance.gov/policy-compliance/notice-opportunities-comment/open-notices/request-information-regarding-ability-repayqualified-mortgage-rule-assessment/

Bonus

The Most Romantic Cities in the World

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When we asked Travel + Leisure readers to rank their favorite cities in the world for romance in our 2016 World’s Best Awards survey, the 20 results covered more than 7,840 miles, ranging from the palm-fringed beaches of Hawaii to the luxury hideouts of Monte Carlo.

Italy, unsurprisingly, holds fast to four spots on this year’s list: one even claims the No. 1 title. Paris is a close second, and almost a requisite for any couple traveling in the name of love.

Beyond the beautiful but somewhat obvious picks, there are exciting new spots that ascended onto the list. The lavender fields of Aix-en-Provence, for example, and musical hills in Austria’s Salzburg. Cliffside Carmel-by-the-Sea took bronze this year, beating other romantic Californian destinations like San Francisco and Santa Barbara.

A popular Hawaiian honeymoon spot climbed the ranks, propelled by a winning combination of flourishing city culture and eternal island beauty. And this year’s No. 1 city in the world, Charleston, didn’t disappoint travelers seeking an easy, romantic weekend getaway.

Couples seeking cityscapes and wild nightlife, or those yearning for rugged coasts and uninterrupted countryside, can easily find a destination on this list that satisfies their unique passions.

Turn your one-on-one time into an adventure of a lifetime with these most romantic cities in the world.

No. 20 Lucerne, Switzerland

Nestled between the snowcapped Alps and Lake Lucerne, the city of Lucerne is a charming Swiss hideaway with medieval flourishes. Like Chapel Bridge, for example, which was built in 1333 and is often decorated with flowers. Visit charming old city squares and the Jesuit Church (the first Baroque church in Switzerland). For the most romantic place to bed down, Villa Honegg is just outside of the city center. This 1905 mansion-turned-hotel sports an outdoor heated pool with a full view of the mountains and lake below.

 

No. 19 Aix-en-Provence, France

As the birthplace of Cezanne, it’s easy to visit the places that brought the master’s paintings to life. Relax at cafes and local haunts like the Morning Market, though the best croissants can be found at Farinoman Fou. Check out the Aix vineyards, fragrant lavender fields, or head to the hot springs-fed baths first tapped by the Romans thousands of years ago. Southern France is like a pleasure garden, with pretty, moss-covered fountains spouting around every corner. Snack on calissons for a treat (candied fruit and almonds topped with a layer of icing). Because all romantic outings require a little something sweet.

No. 18 Salzburg, Austria

Salzburg is as storied as it is picturesque. With thousands of years of musical history (think: Julie Andrews and Mozart), the operas, musicals, and concerts held in the city will make your heart flutter. Tour Schloss Mirabell—a 17th-century palace with the famous Marble Hall—and the Baroque-style Mirabell Gardens, which feature the Pegasus Fountain, and Rose and Dwarf Gardens. The Renaissance-style Schloss Hellbrunn, on the other hand, houses the gazebo that wooed many a lover in the Sound of Music. Climb to the cliff-top fortress, Festung Hohensalzburg, to see the glimmering city lights below (it’s also one of the most stunning medieval castles in Europe). Looking to take your love even higher? Grab a cable car up on the Untersberg for an unparalleled view of Salzburg and the Salzach River.

No. 17  Savannah, Georgia

There is magic in the coastal city of Savannah, Georgia. The storied antebellum buildings and ancient oak trees draped with Spanish moss make it at once both quaint and bewitching (there are of course the ghost stories). City squares are peppered with azaleas, statues, and benches: including the one where Forrest Gump explained life’s beautiful unpredictability. Pirates once used Savannah as a smuggling post, but today the cobbled River Street is ripe with cute candy stores brimming with homemade saltwater taffy and pralines, as well as bustling bars and restaurants serving the best regional fare (think: buttery biscuits, fresh-caught shrimp, and sweet tea). Handcrafted leather shops, charming apothecaries, and even a honey store, it’s easy to see how the “hostess city of the south” lives up to its sweet reputation.

No. 16 Seville, Spain

Seville is the star of Andalucía, with its purple jacaranda and perfuming orange trees lining the cobblestone streets. Wander in and out of the famous ceramic shops in Triana, and ascend La Giralda tower at the Cathedral of St. Mary (the second largest in the world, after the Vatican) for photo-worthy panoramas. The gelaterias here are legendary, so grab a scoop and stroll the Plaza de España, or nap at the Parque María Luisa during siesta time. Spend an afternoon together at El Alcazar palace, with its Moorish architecture and gorgeous gardens (the filming spot for Dorne on Game of Thrones, no less). Grab handfuls of Marcona almonds and fresh fruit from the market to enjoy as you wind through labyrinthine side streets to find a traditional flamenco performance. When night falls, the city seems to glow warm gold, with buildings like the Torre Del Oro seemingly lit from within. Dine al fresco with locals at one of countless open-air restaurants. Try the Jamon Iberico with a pitcher of sangria, and dip warm churros into melted chocolate. It’s a decadent way to conclude a trip to Seville with your significant other.

No. 15 Monte Carlo, Monaco

For a dose of romantic Hollywood glamor on the French Riviera, look no farther than Monte Carlo. Its extravagant hotels, stunning coastal views, and some of the best restaurants and spas in the Mediterranean make Monaco a staple on our list for romantic destinations every year. Fly in via helicopter (just a seven-minute ride from the airport) for the most memorable views, and stay at the lavish Hotel Hermitage (its glass cupola was designed by the Gustave Eiffel). Get your heart racing at the racetrack, or take a chance on a good hand at the famous Casino de Monte Carlo. And if you rent a classic car to drive along the Grand Corniche, we promise you’ll feel like a famous couple plucked from the silver screen.

No. 14: Siena, Italy

Offering visitors the beauty of Tuscany without the massive throngs of tourists, Siena is a delightful destination for lovebirds. An archetypal medieval city, forged before the lavish Renaissance, makes the green, red, and white-marble Duomo somehow more striking. It houses masterpieces by 40 Italian artists, including Donatello, Michelangelo, and Bernini. The whole city is built around the Piazza del Campo, a UNESCO heritage site where you can people watch while sipping Campari. Drive out to the wineries just outside the city limits to taste the best of the Sangiovese grapes and share a perfect Tuscan sunset.

 

No. 13 Barcelona, Spain

Barcelona is a cosmopolitan couple’s dream. Fuel up on tapas in La Barceloneta’s seaside cafes before walking through the winding Barri Gòtic and climbing Gaudi’s surreal Sagrada Familia or the vibrant Parc Guell (both offer great city views). Stop by one of the city’s famous markets, La Boqueria or Santa Caterina, for fresh foods and great coffee. Reserve a room at Hotel Neri (an 18th-century palace where breakfast is served on the rooftop) or the luxurious all-suite El Palauet. You’ll fall in love with this city—and each other—every time.

No. 12 Victoria, British Columbia

Victoria is a Canadian stunner in beautiful British Columbia. Located on the inner tip of Vancouver Island, the city’s Neo-Baroque architecture is decidedly British. Admire the Parliament Buildings, the Fairmont Empress hotel (peek inside to see the Edwardian interiors), and the famous Butchart Gardens. And just 30 miles north is the Cowichan Valley, which boasts vineyards, art galleries, and hiking trails—perfect for lighting sparks.

No. 11 Santa Barbara, California

Santa Barbara—fondly referred to as America’s Riviera—is a great escape for those looking to stoke the flames. The weather here is consistently perfect, so it’s easy to visit any time of year (even gray, dreary February). It’s 90 miles northwest of Los Angeles, tucked between the Santa Ynez Mountains and the Pacific, and famous for its Spanish architecture. Hop on the open-air trolley down State Street to discover new restaurants and galleries. The 200-year old Santa Barbara Mission and its rose garden are worth a tour, as well. And Shoreline Park’s bluff-top views and Butterfly Beach are perfect for sunbathing with your partner. Just keep an eye out, because there are often dolphins and whales that come to play in the surf.

 

No. 10 San Francisco, California

On a romantic getaway to San Francisco, head to the Pacific Heights neighborhood to see those iconic Victorian homes, or take a bike ride through Golden Gate Park for the best views of the bridge. Couples should consider taking a day trip to nearby Napa or Sonoma to enjoy some of the best wineries, not just in the country, but on Earth. Doc Rickett’s is a local favorite for underground comedy and music acts, and for museums, the de Young’s American art collection is a must-see. Park yourself at Cupid’s Span on the Embarcadero to watch the sunset and check out the Bay Lights show before dining in the trendy Mission District.

No. 9 Quebec City, Quebec, Canada

The landmark Fairmont Le Château Frontenac looks like a fortress guarding Quebec City, a spot that fiercely puts the “French” in French-Canadian. Considered the oldest European settlement on the continent, Quebec overlooks the beautiful St. Lawrence River and is packed with boutique and luxury hotels. Meander in and out of trendy shops and jazz bars, or go ice skating at the outdoor rink at Palais Montcalm. Afterwards, warm up with hearty Québécois cuisine or the province’s famous greasy spoon-style poutine.

No. 8 Bruges, Belgium

Old World European charm is the defining feel in Bruges, just an hour by train outside of Brussels. The 13th-century village has cobblestone streets extending over misty canals, and endless examples of Gothic architecture. Quaint houses, windmills, and medieval streets set a fairy tale scene. Share a traditional Belgian waffle with powdered sugar or sip Lambics at one of the village pubs. Bruges is also known for its vast collections of Flemish artworks, though it’s hard to pull away from the 50 different chocolate shops (one per square mile) sprinkled throughout the city.

 

No. 7 Charleston, South Carolina

Friendly locals and quintessential Southern charm recently gave Charleston the No. 1 spot on our list of the best cities in the world. And it didn’t under perform for romance-seekers, either. Antebellum architecture and art galleries are framed by wisteria, sabal palmettos, and ancient magnolia trees. Couples who love eating out will adore this city’s food culture: reserve a spot at Husk, the most talked-about restaurant in Charleston and the South, share brunch at Kitchen 208, or linger over an intimate meal at Peninsula Grill. Walk King Street for antiques and boutiques of all sorts, stop by Marion Square for the weekend farmer’s market, or take an early morning stroll down pastel-colored Rainbow Row.

 

No. 6 Honolulu, Hawaii

On the island of Oahu, Honolulu has become more than just a tropical tourist destination—it’s cosmopolitan and has a stylish vibe all its own. Salty sea breezes, miles of turquoise waters, and an onslaught of new boutiques and restaurants make this a hot honeymoon spot. A trip to Hnolulu is relaxing, but there’s plenty to do for the restless. Try surfing at bustling Waikiki Beach, hop on a jet ski together and cruise the waves, or go snorkeling at the many reefs full of Pixar-worthy fish and seascapes. Most importantly, share a sunrise together after a hike up Diamond Head, and a sunset on a veranda sipping Mai Tais.

No. 5 Rome, Italy

There are an infinite number of opportunities to be awed in the Eternal City. Visit the Basilica Santa Maria and the Sistine Chapel, admire the Pantheon and Colosseum, and take in the artworks at the Borghese Gallery. Afterward, head to the Trevi Fountain to wish for a return trip with your partner, and admire thousands of other fountains scattered across the city. Rome’s history seems limitless (a 2,700-year-old city has that effect) and so does its cuisine. Try the pizza at Il Forno Roscioli near the Campo de’ Fiori Market, eat the traditional cacio e pepeat Sora Margherita, or go to Prati on the Tiber to share the best gelato.

No. 4 Florence, Italy

A trip to Florence is a necessity for a pair of fashion or art lovers. Venture together to see masterpieces like Michelangelo’s David, or the homes of Gucci and  Ferragamo. Almost every hotel here boasts marble fireplaces, classical sculptures, paintings, and frescoes. Visit the new Mercato Centrale for the best souvenirs (cheese, wines, and pasta), and climb the steps to the Duomo’s terrace. Visitors can also ascend Giotto’s Campanile bell tower to share the view of the dreamy terracotta-topped cityscape.

No. 3 Carmel-by-the-Sea, California

About an hour south of San Jose, voters declared this small California town the best city for romance in the country. Drive through redwood forests or winding vineyards to get to Carmel-by-the-Sea’s picturesque cliffs dotted with cottages and isolated beaches. You won’t find much in the way of street signs, traffic lights, or billboards here, where quaintness is practically cultivated. Go for a drive along the rugged coast to discover tasty bistros, cool boutiques, and petite wineries. End the day watching the sun set over the Pacific with your special someone.

No. 2 Paris, France

Could there be a list of romantic destinatinos without the City of Light? Paris is ever-changing and yet always true to its lovers. Bike through Le Marais and try as many of the city’s legendary patisseries as you can. However touristy, the staples never disappoint. Lovebirds should explore the endless corridors of the Louvre and picnic with fresh crepes on the lawn by the Eiffel Tower (or with a bottle of wine, at night, when it’s a twinkling glow). Take the metro up to the cobblestone streets of Montmartre and see the view from Sacre Coeur, spend a day marveling at the Latin Quarter’s architecture, or take a stroll through the Tuileries Garden dotted with bronzed sculptures and fountains. Paris is never short on beauty, history, or diversions for even the most discerning couple.

No. 1 Venice, Italy

Winding waterways and pastel piazzas make Venice an obvious choice for the world’s most romantic city. Cruise the canals by water taxi or take it slow on a quintessential gondola past the Bridge of Sighs. Sip one of the oldest hot chocolate recipes at Cafe Florian, and enjoy the unusual silence permitted by the absence of cars. First-time visitors should hop over to Murano to learn the history of the city’s stunning glassworks. Return travelers, however, should try to get lost off the beaten track. Find your own favorite charming spot to share a pizza and watch the watercolor sunset reflecting over the canals.

 Source: http://www.travelandleisure.com/slideshows/worlds-most-romantic-cities#venice-italy
Bonus

Top 10 Beaches in America

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By Slade Rand, NOLA.com | The Times-Picayune

Stephen P. Leatherman, a professor and coastal research director at Florida International University known as “Dr. Beach,” has released his annual list of the country’s top 10 beaches. Read on to find out what beach claimed the top spot for 2017.

The ranking looks at 50 criteria including sand color, number of sunny days and presence of oil and tar balls. In recent years, Leatherman has given bonus points to beaches where smoking is banned.

Leatherman releases a list of America’s Best Beaches every year on Memorial Day weekend. He started ranking U.S. beaches in 1989 and, in 1991, he issued his first officially scored list. The winning beach each season is retired from his ranking system and holds a permanent spot on his website.

10. Beachwalker Park on Kiawah Island, S.C.

Kiawah Island, just south of Charleston, is home to Beachwalker Park, a public beach with inlets that are prime paddling territory for canoers and kayakers, a small part of the island’s natural appeal that caught Dr. Beach’s eye. Captain Sam’s Inlet provides a breezy walk or bicycle where beach lovers can see thousands of birds.

Kiawah Island is about an 11.5 hour drive up I-65 from New Orleans.

9. Coronado Beach in San Diego, Calif.

Dr. Beach described this Southern California beach as “an oasis by the sea.” Coronado simultaneously offers a Mediterranean climate and subtropical greenery. The beach, a 26-hour drive or four-hour flight from New Orleans, offers ship-watching in the calm surf. History lovers can also indulge in a stay at the national landmark Hotel del Coronado, built in 1888.

8. Hapuna Beach State Park on Big Island, Hawaii

This state park highlights Hawaii’s contrasting landscapes, with its black lava flows and shimmering white beaches. Visitors get to enjoy a white coral sand beach. During the summer its waters provide perfect snorkeling. The beach is prepared with lifeguards to keep swimmers safe during the strong winter currents as well.

7. Caladesi Island State Park in Dunedin/Clearwater, Fla.

Visitors can make their way to Caladesi Island from Clearwater, Fla. on a pedestrian ferry, private boat or even on foot if they’re prepared for a long walk. The beach’s quartz sand is softest near the water’s edge, but nature lovers will be drawn to both the boardwalk and kayak paths through the trees.

Dr. Beach noted the blue heron and other birds that mingle in the mangroves. The island is an roughly 10-hour drive from New Orleans though the Florida panhandle, along I-10 East.

6. Coast Guard Beach on Cape Cod, Mass.

Coast Guard Beach is a highlight of Cape Cod. The beach itself is accessible by a bicycle or shuttle from the visitor’s center and juts out from a range of glacial cliffs. Fairly coarse sand means the beach slopes steeply down to the cold, 60-70-degree water, but Dr. Beach claims the destination’s main draw is a spectacular view offered from the cliffs over the bay.

5. Coopers Beach in Southampton, N.Y.

Coopers Beach offers some of the best beach access in the Hamptons, according to Dr. Beach. Southampton’s beautiful white sand beach is hundreds of yards wide and backed by a pattern of sand dunes and mansions.

The country’s first “Gold Coast” is a 20-hour drive north from New Orleans. Dr. Beach also recommends trying the beach’s snack bar, which serves lunch and drinks.

4. Grayton Beach State Park in Florida

This state park, located on the Florida panhandle, has committed to limiting development in order to maintain its natural sugar-white sand and massive sand dunes. Indeed, former Florida governor Bob Graham told Dr. Beach Grayton is his favorite beach.

The old town of Grayton offers restaurants, coffee shops and a bit of night life. (Dr. Beach encourages a visit to the Red Bar.)

Grayton is a nearly 5-hour drive East along I-10, between Destin and Panama City, Fla. Many visitors choose to camp near the state park’s tidal lakes and freshwater ponds.

3. Ocracoke Lifeguarded Beach on the Outer Banks, N.C.

Distinguished by its truly wild beaches and big surf, Blackbeard the pirate made this beach a famous getaway. Visitors shouldn’t expect to spend much time at a resort or on a golf course.

Dr. Beach vouched for the excellent beach combing and swimming on Ocracoke. He noted families should visit earlier in the year to hit the mild surf conditions, but the beach is lifeguarded as well.

Ocracoke is an 18-hour drive Northeast along I-20 E to the coast of North Carolina.

2. Kapalua Bay Beach in Maui, Hawaii

Dr. Beach notes the ancient lava flowing into the sea formed the premiere snorkeling conditions off the shore of Kapalua Bay’s white beach. Its clear, blue water is home to brightly colored corals that attract even more colorful fish.

The crescent-shaped beach is bookended by two rocky formations, now home to restaurants and concession huts where visitors can rent snorkeling gear and fish food.

1. Siesta Beach in Sarasota, Fla.

Dr. Beach said Siesta Beach’s claim to have the finest, whitest sand in the world is warranted; he takes a bag full home each trip he makes. The soft beach — about 200-300 feet wide — is seemingly always packed with people, but never too crowded.

Siesta’s clean restrooms and ample lifeguarding put it over the top to take this year’s crown. As a bonus, the beach offers a free trolley from the center of town to manage car traffic.

Siesta Beach is a 10-hour drive from New Orleans along I-10 East and down I-75 South near Sarasota, Fla.

 

soource:http://www.nola.com/travel/index.ssf/2017/05/dr_beach_names_floridas_siesta.html#incart_m-rpt-2

Commercial Banking

Why are Small Banks Disappearing ?

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n 1994, nearly 500 banks were headquartered in California. Today, there are fewer than 180. By the end of the year, if current trends hold, Californians will have only one-third the number of banks to choose from for their mortgage, small business and personal savings needs than they did just a couple of decades ago.

There are a few reasons for this disturbing trend, which is happening across the country. But the most important one — the reason I hear more than any other from bankers who decide to merge, sell or close their institution — is the increasing federal regulatory burden.

That doesn’t mean I oppose all regulation. In the wake of the financial crisis, regulatory changes were necessary, and provisions in the Dodd-Frank Act passed in 2010 helped improve financial stability. But nearly a decade after the crisis, we’ve ended up with too many duplicative and sometimes contradictory rules that don’t always promote safety and soundness, and may actually hinder banks from serving their customers and growing local economies.

For example, I recently heard from a bank in Southern California that, to its great regret, had to end its mortgage loan program. Dodd-Frank’s mortgage regulations and disclosures meant the bank would have to purchase expensive software to manage the new layers of red tape — so expensive, in fact, that the bank was going to lose money on every single loan.

Getting community banks out of the business of helping qualified Americans buy homes can’t have been what Congress intended when it passed Dodd-Frank. It makes sense to recalibrate some elements of that law to ensure that it’s working properly.

A proposal in the House would take important steps in that direction. The Financial CHOICE Act, which the Financial Services Committee recently voted to send to the floor, includes several sensible provisions that the banking industry endorses, as well as others that require further study and analysis.

Among the measures I support: The legislation would allow regulators to tailor their oversight to the unique risk profiles of individual financial institutions; provide greater opportunities for banks to appeal decisions by their examiners; and ease some requirements on mortgages that banks hold in their own portfolios (meaning they retain all the risk). The overall effect of these and other provisions would be to give banks more breathing space and consumers more choices.

Though banks adjust as best they can for the sake of their customers, the smallest banks have too few assets to keep up with ever growing compliance costs. Indeed, the vast majority of banks that have disappeared are community banks. At the end of 2016, California had just 11 small banks left; in 1994, these banks accounted for nearly half of the industry in the Golden State.

Some have pointed to strong bank profits as an argument for why reform is unnecessary. Profitability is, of course, a sign of economic strength that we should celebrate; profitable banks benefit their customers, investors, employees and broader communities.

However, the topline profit figure doesn’t tell the whole story. Increased regulatory compliance costs limit bankers’ ability to reach underserved communities. Moreover, tunnel vision on bank profits ignores macro-level trends.

Since Dodd-Frank was passed, just four new banks have formed nationwide. (The newest, I’m pleased to report, is in Orange County.) This abysmal pace of startups is principally due to the extraordinary regulatory burden placed on small banks and the excessive sums of capital new-bank investors are required to put up.

Our economy performs best with a healthy and diverse mix of banks to meet customers’ needs — large, small and everywhere in between. Without reasonable reform in Washington, California’s banking sector will continue to shrink and become less diverse. Californians — and all Americans — will pay the price in terms of lost opportunities for growth.

Commercial Banking

Depositors Biggest Complaints With Their Banking

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As a new report from ConsumerProtect.com reveals, complaints filed against the six most popular banking services — bank accounts, consumer loans, credit cards, credit reporting, mortgages and student loans — have been steadily climbing over the past five years.

Last year was particularly tough for the bank-client relationship: Nearly all six services saw more complaints in 2016 than in any other year since 2012.

Most consumers are griping about mortgages. Of the 722,684 complaints made to financial institutions in 2016, more than 30 percent of them were regarding those particular loans.

“It could be that some banks have recognized this kind of loan may not be good for business,” ConsumerProtect.com explains. “In a memo to shareholders, JPMorgan CEO Jamie Dimon outlined that mortgages are offered as a benefit to customers, not because it’s a sound investment for the bank.” And since mortgage lending is not necessarily “good for business,” banks may be less motivated to accommodate consumers, which could explain the high number of complaints.

After mortgages, debt collection accounted for 18.7 percent of complaints filed and credit reporting accounted for 17.9 percent.

As for the recent rise of complaints overall, ConsumerProtect.com offers one possible explanation: “In a quest for higher profits, many [banks] have looked to acquire other banks and reduce or limit services to meet their investors’ needs.”

Source: http://www.cnbc.com/2017/05/31/what-people-hate-about-their-banks.html

Commercial Banking

Major Challenges on the Horizon for Commercial Banks

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Investors should avoid bank stocks as the sector’s fundamentals will deteriorate in the coming months, closely followed analyst Dick Bove said Thursday on CNBC’s “Fast Money Halftime Report.”

Bove, vice president of equity research and financial sector analyst at Rafferty Capital, said bank stocks “are even more treacherous than you think.”

“Over the last six months the ability to sell loans has evaporated. Basically commercial and industrial loans, which were roaring at 7 or 8 percent year-over-year gains, are struggling to grow at 1 percent,” he said. “The one thing you can be sure of with the banks over the next few months is loan losses are going to grow pretty substantially.”

Bove noted that bank loan underwriting standards have worsened especially in the subprime auto loan market.

“If you take a look at the consumer sector, you’re seeing major difficulties arising, in selling if you will, credit card loans. You’re seeing difficulties in the automobile space,” he added.

On the flip side, Bove praised regional lender First Republic Bank saying it has “an ability to lock into a concept that is really working” by issuing shares and not buying back stock.

A First Republic spokesperson declined to comment for this story.

Source: http://www.cnbc.com/2017/06/01/bank-stocks-are-even-more-treacherous-than-you-think-top-analyst-dick-bove-says.html

Commercial Banking

CFPB’s Impact on Credit Unions

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Putting an end to remarks from the Consumer Financial Protection Bureau that its regulations are, in fact, helping credit unions, the Credit Union National Association published a detailed report that outlines exactly how the new rules have suffocated growth.

CUNA is a national association that advocates on behalf of all of America’s credit unions, which are owned by more than 100 million consumer members.

CFPB Director Richard Cordray has commonly gone on record to denounce doomsayers who say that new regulations are killing the banks, especially when it comes to credit unions and community lenders.

In response, CUNA submitted a letter to the CFPB detailing each of the ways the agency’s rulemakings have affected America’s roughly 6,000 credit unions.

The letter also includes recommendations on how the bureau can improve its regulations to provide relief to credit unions and their members.

“We urge the bureau to take immediate action and implement our suggestions for the protection of credit union members, who have fewer choices and are incurring increased costs due to CFPB rules,” said Jim Nussle, CUNA president/CEO. “CUNA, our state league partners, and credit unions—the original consumer protectors—stand willing to provide the CFPB any further details or analysis necessary to achieve regulatory relief, the ultimate goal of our Campaign for Common-Sense Regulation.”

“The CFPB continues to cite the very minimal accommodations it has made in some rules for credit unions,” Nussle explained.

“However, in practicality, credit unions’ ability to provide top-quality and consumer-friendly financial products and services has been significantly impeded by a one-size-fits-all regulatory scheme that favors large banks and less regulated nonbank lenders—institutions that have more resources for overly complex compliance requirements,” he said.

While CUNA is are pleased to hear that the CFPB recognizes the very important role credit unions play in serving consumers, there are still plenty of areas to improve on, which is outlined in the letter and recommendations.

According to CUNA’s Regulatory Burden Study, it found that in 2014, regulatory burden on credit unions caused $6.1 billion in regulatory costs, and an additional $1.1 billion in lost revenue.

And this data doesn’t even include the CFPB’s recent regulatory additions to the Home Mortgage Disclosure Act (HMDA) and Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) requirements.

“The CFPB regularly cites modest thresholds and accommodations it has provided in some mortgage rules and the remittances rule as proof that it is considering the impact its rules have on credit unions and their members,” the letter stated. “Regrettably however, credit unions continue to tell us that the accommodations the CFPB continues to cite are not sufficient exemptions and they do not fully take into consideration the size, complexity, structure, or mission of all credit unions.”

The letter breaks down the following four categories:

1. Ability to Repay/Qualified Mortgage (ATR/QM)

According to a recent survey of CUNA members, 43% cited the QM rule as most negatively impacting the ability to serve members with mortgage products.

So even though the bureau commonly cites the expanded qualified mortgage (QM) safe harbor for small creditors as proof that it has helped credit unions continue to serve members, CUNA explains that it did not provide full relief for many credit unions.

2. Mortgage servicing

The CFPB claims that it has tailored its servicing rules by making certain exemptions for small servicers that service 5,000 or fewer mortgage loans, but the latest survey results from CUNA members say otherwise.

In the recent survey, more than four in 10 credit unions (44%) that have offered mortgages sometime during the past five years indicate they have either eliminated certain mortgage products and services (33%) or stopped offering them (11%), primarily due to burden from CFPB regulations.

3. Home Mortgage Disclosure Act (HMDA)

CUNA cites that it is hard to say HMDA is tailored to minimize the impact on small entities given that prior to the rule credit unions were not required to report HMDA data on HELOCs.

CUNA’s recent survey of its members showed that nearly one in four credit unions (23%) that currently offer HELOCs plan to either curtail their offerings or stop offering them completely in response to the new HMDA rules. And CUNA says it believes this is a conservative estimate.

4. Remittances

Although the CFPB regularly cites the exemption to entities that provide fewer than 100 remittances annually as an example of providing relief to small entities, CUNA states that this is probably the clearest example that the CFPB is simply not listening.

Instead, the letter states, “This rule has made it more expensive for members to remit payment and has drawn consumers away from using credit unions and into the arms of the abusers for which the rule was designed.”

Source: https://www.housingwire.com/articles/40330-dear-cfpb-youre-wrong-heres-a-break-down-of-how-regulations-impact-credit-unions

Mortgage Banking

Major Shifts in the Mortgage Industry

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Maine’s residential mortgage lending industry bears little resemblance to its prerecession version as changing conditions have shuffled the deck of top lenders and created new choices for borrowers.

Gone is the dominance of mega-banks such as Bank of America, and in their place are regional community banks and non-bank lenders that specialize in home mortgages.

Two of the biggest non-bank players in Maine today are South Portland-based Residential Mortgage Services Inc. and Detroit-based Quicken Loans Inc., both of which have risen from the ashes of the Great Recession.

In July 2009, Bank of America was the top mortgage lender in Cumberland County, according to county records. In July 2016, Residential Mortgage Services was the top lender, followed by Bangor Savings Bank. Bank of America barely cracked the top 10.

“Dodd-Frank changed the landscape for residential lending – forever,” said Maine Bankers Association CEO Christopher Pinkham, referring to the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. “The largest financial institutions have said, … ‘We’re getting out of that business.’ ”

The purpose of Dodd-Frank was to improve the country’s financial stability by increasing transparency and accountability in the financial system and protecting consumers from abusive bank practices. Among other things, it added new regulations for banks and organizations that issue residential mortgage loans.

In its wake, big national banks have shifted their focus away from originating home mortgages. Instead, they have decided to largely forgo the regulatory red tape by purchasing loans originated by third parties. Their exodus from the market has created opportunities for both community banks and non-bank lenders.

SHIFTING DYNAMIC

With major banks backing out of home mortgage originations, a group of innovative non-bank companies have risen to prominence within the industry.

Residential Mortgage Services, or RMS, has become a tremendous success story in Maine. The South Portland company was founded in 1991 as a small mortgage brokerage, and it was converted into a home mortgage lender in 2001.

Now the company has nearly 900 employees working at 70 branch locations from Bangor to Virginia Beach. Most of its growth has happened in the wake of the financial crisis, said Michael Ianno, the company’s executive vice president of retail production.

“We’re one of the few that survived,” Ianno said. “We actually grew through it.”

Ianno attributed the growth of RMS to its singular focus on mortgages and its ability to process loan applications in person, over the phone or online.

“We just deliver superior customer service,” he said. “This is all we do.”

In 2016, RMS originated nearly 17,500 home purchase and refinance mortgages, worth a total of $3.83 billion, Ianno said.

In Maine, RMS originated 450 mortgages valued at $89 million in the first quarter, the third-highest among all mortgage lenders in the state. It was surpassed only by Bangor Savings Bank with 795 loans worth $112.9 million, and Camden National Bank with 545 loans worth $99.3 million, according to Boston-based real estate and financial data provider The Warren Group.

Some banking industry representatives expressed concern that non-bank lenders aren’t as heavily regulated as banks.

“No one really knows what their level of compliance or noncompliance is,” Pinkham said.

But Ianno took issue with the claim. He said loans originated by RMS meet the same strict standards as bank-issued mortgages, as evidenced by the fact that it sells 90 percent of its loans to major banks and government-sponsored enterprises such as the Federal National Mortgage Association, or Fannie Mae.

Ianno acknowledged that non-bank lenders have a reputation for being major contributors to the 2008 financial crisis, which began with an erosion of underwriting standards and companies issuing loans to homebuyers who could not realistically afford to pay them back.

However, he said all financial institutions, including traditional banks, share responsibility for the crisis, and that regulators have imposed new rules to prevent another catastrophe.

“The credit standards are so much stricter today,” Ianno said.

MORTGAGES GO ONLINE

Another non-bank mortgage lender that has risen to prominence in Maine since the financial crisis is Detroit-based Quicken Loans, which operates online under the brand name Rocket Mortgage.

The company advertises aggressively online, targeting millennials and others who turn to the internet to conduct their research before applying for a home loan. Typing “mortgage loan” into a Google search brings up Rocket Mortgage as one of the top results.

Bill Emerson, vice chairman of Rock Holdings Inc., the parent company of Quicken Loans, said the company did about $96 billion of mortgage loan originations in 2016. In Maine, Quicken Loans originated 399 mortgages valued at $62.9 million in the first quarter, the fourth-highest among lenders in the state.

A large percentage of Rocket Mortgage customers are first-time homebuyers who are unfamiliar with the application process and may be apprehensive about it, Emerson said. The company has designed a simple, user-friendly online application process that is designed to improve transparency and eliminate the applicant’s anxiety. The average time to complete the application is just nine minutes, he said.

“We decided many years ago that the way the loan process works is broken,” Emerson said, and the company set out to fix it.

Pinkham said he is skeptical about the ability of online lenders such as Rocket Mortgage to provide excellent customer service, especially if something goes wrong with the application process. However, he acknowledged that a growing number of consumers want the ability to conduct all of their financial transactions online, and that traditional banks need to provide that ability if they want to compete.

One Maine-based bank that recently launched its own online mortgage application is Camden National, the state’s second-biggest mortgage lender in the first quarter. Others are likely to follow suit.

“There’s no way Camden is going to put that kind of money into that kind of product unless they have already established that that’s what people want,” Pinkham said.

A NEW FRONTIER?

Camden National President and CEO Greg Dufour said the online mortgage product, called MortgageTouch, is the latest step in the bank’s efforts to “build a digital gateway” to banking services.

In the past, mortgage applications always have been paper-intensive, he said, but now banks can access all of the verification data needed to complete the application process digitally. It reduces the application time down to about 15 minutes, Dufour said.

The primary driver of digital applications is customer demand, he said. To compete with companies such as Quicken Loans and the larger banks, Camden National decided it needed to add the online option.

“What we have found is that millennials are much more open to using technology (such as computers and mobile devices) for financial transactions,” Dufour said. “They’re very comfortable with that.”

The goal is not to replace face-to-face transactions but to provide an online alternative for those who would rather not visit a bank branch, he said, adding that Camden National is committed to growing its mortgage business and does not want to lose market share to online-only lenders.

“We have to really compete head-to-head with big companies, technology-wise,” Dufour said.

Bangor Savings, Maine’s largest mortgage lender in the first quarter, also offers an online mortgage application. Company Senior Vice President and Director of Mortgage Lending Bruce Ocko said Bangor Savings’ strategy is to distinguish itself from competitors by offering both high-tech and high-touch options for customers. The product itself is almost irrelevant.

“We’re all selling a widget,” Ocko said. “Our 30-year fixed rate is the same as their 30-year fixed rate.”

Source :http://www.pressherald.com/2017/05/22/new-players-products-shape-maines-mortgage-lending-industry/

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