[David] Alice, let's get over to you with a Legislative Update, anything you have for us. And again, I'm really excited about Bill sent out to us where over the weekend, we're looking at, or on Friday about the FHA proposes greater flexibilities for borrowers using rental income from individuals renting space inside of the borrower's home. I thought that was an interesting thought. So what's your report?
[Alice] That's what we're going to talk about is this draft mortgagee letter. As a matter of fact, in the MBA report, they brought it up as well. So, simply changing it from, it's border income, right? I've got somebody living with me and can I use that as income? and the guideline was two years and now they have it posted that they're going to You know, assuming this goes through allow 12 months. Don't start doing it yet because you probably go by case number, not by date insured. So, you're going to have to wait until this is done. Which of which was comments will end December 10th. These types of things, when it's already a written mortgagee letter, have a tendency to turn around pretty quickly after that. But the fact remains, Dave, let me ask you a kind of a rhetorical question. But if you go I'm collecting rent from my buddy who's been renting my bedroom out for the last 12 months and I'm going to go to the lender and say, Hey, I got this extra 500 bucks a month that I need, which we have a lot of deals that's needed to qualify and we go, okay, great. We need your tax returns. We need all the canceled checks and the bank statements, all of that stuff. We need this list of five things. Do you have them? and the person's going to go, are you crazy? I'm not reporting any of this to the federal government because that would mean I'm only getting 250 a month on rent. I don't, I'm just being facetious, but you get my point. You hit the point. Yeah. That's the sticking point is how many So there is a growth in this area there are some parts of the country where people have caught on that. All right, if I do report it then great. By the way, those of you who are thinking Airbnb, forget it. It has to be from one individual on the lead for the 12 months. Yeah, this is just a person.
[David] It's not temporary. It's not a temporary rental. Yeah. Does that include temporary? Yeah, that's very good point. And I think what's really interesting, this would be a good point to introduce Scott Turner, who's been named as the new HUD secretary and we did some research just before we went online. I had not had a chance to check it out because it was announced over the weekend and I was gone this weekend. But Kittle, you did, and you had some comments. If you could talk about it now, I want to get your thoughts because I think whatever policies, I, let me start with this question. It's back to you, Alice. FHA, letter 2024-79 came out is what we're talking about right here about this like how much of a chance of those letters, all the policies are going to be dramatically potentially redone or reviewed or revisited under a Scott Turner as the head of HUD and if that were to happen, how long will that happen, Alice?
[Alice] Oh, there hasn't been any talk at that kind of policy level within the FHA, underneath HUD. So what we look at for someone who's heading up HUD is overall direction on policy. Are we getting more funding or is funding going to be cut for the department? Is the department going to get the funding that it needs to really improve its technology as one of the driving points? They have had for so long for FHA to make them more efficient. And, so if you balance that with fiscal conservatism all across the board that's, that to me is the challenge for anybody coming into that position. And I don't know, Scott, Mr. Turner's background fully, but that's the challenge for this position coming in and someone again with no experience, no government. Well, a little bit of government experience. It looks like but housing specifically, we need people who understand housing in that role. It looks like he's got some touch points there, but it's all about the budget when it comes to that role.
[David] Oh, that's so true. Absolutely. Kittle, you did some research on this briefly, just before we got on went live.
[Kittle] Yeah he's too, everybody's going to go. Here's another jock, right? Former NFL player, but you got to throw that to the side quickly. He's two time, two term state representative in your state of Texas. He currently serves as the chair for the Center for Education Opportunity. Previously under Trump, he was the director of the White House Opportunity and Revitalization Council going into underprivileged and redoing housing. Technically the guy can knows. The P in politics and he knows there's a T in mortgage. So, he's going to follow along. Basically, to Alice's point what's their policy. And he's probably not the disruptor. Other selections are you have to look at the past administration under Trump. He didn't have much of a housing policy. He didn't do a lot for housing before. Right now, this is, I hope the guy does, he deserves the opportunity to come in and do the job.
[David] You were up close and personal to this. When you interviewed for the president of Ginnie Mae, when they nabbed you or tabbed you was to say, Hey, we want to have you come in and you got to spend some time with Ben, I got to spend time with Ben Carson, the green room at Fox, but we were both going on a different show. So we just had a chance to visit a little bit there, but I was really curious about that selection. This one, I have a lot more confidence in because of the things he has been involved in. He's from Texas of course, I'm Texan, so I have confidence because of that. But he's a proven conservative when it comes to housing policy. He is pro housing. He wants to make a difference. And there's some things about him that are well known. Again, like Besant, who is, we know where he stands on some issues. he's been in politics enough where there's enough statements been made by him where we have some insight. So, it's not You're scratching your head. Okay. We got a brain surgeon running like with we had Dr. Carson, we have our brain surgeon running HUD now. How does that work out smart guy? Housing isn't nearly brains, nearly brain science, no rocket science, but it's complicated. And so we have someone who has a background. David.
[Kittle] It's nice. It's nice to put people in these positions that have some background. And I think that's what Alice said as well. And he, and so let's give him a shot. Like I said, I don't know that he'll be to this, the disrupter that we probably need around housing. She did make a point about technology. Certainly HUD needs it, which includes Ginnie Mae because their tech is archaic, still back from the sixties.
[David] Yeah. Green screens with a, maybe a windows overlay on it. It's pathetic. It is a talk about something that needs an overhaul and has for years and the budgetary constraints on Ginnie Mae. Ginnie has become such a political animal to work with. It's just disgusting. So hopefully we'll get some of the politics out and get policy in that's pro housing policy and yet maintaining the FHA insurance fund in a responsible way. So, a lot to be determined again, having an FHA director, who are they going to name for that? Who are they going to put in is doubt the vacant position, the recent vacated position of the head of. So we got a lot of things to talk about. You're coming up in the near future, but good report, Alice. Thank you so much again, that you're coming to us from a hunting cabin somewhere in upstate New York. Am I correct?
[Alice] I'm in Corning, New York. So the people from Rochester, New York would go, that is not upstate New York. That's the other side, a little closer, closer to Pennsylvania, but a wonderful, beautiful town here. Any of you ever get the chance to come out to the Finger Lakes region you should absolutely put that on your bucket travel list. It is beautiful any time of year out here in this part of New York.
[David] That's so beautiful. New York has got so many beautiful spots in it. Yeah. Good stuff. Good report. Alice Alvey again, Alice Alvey Union Home Partner Education. I love that word partner has Bill puts it in all of his company titles. You're a partner here and we partner together, so good job. Alice with that update.
Alice Alvey, Master CMB
Vice President Partner Education and Training at
Union Home Mortgage
8241 Dow Circle
Strongsville, OH 44136
D: 440.420.4294
C: 248.941.1939
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!
