[Alice] Hello everyone. Well, by now you may have already heard of the Supreme Court case regarding the Chevron deference. So, basically what we now have as a change is that when the Supreme Court ruled on this, they're essentially saying that the Chevron deference doctrine, is overturned. And so they are now holding that federal courts may not defer to an agency's interpretation of an ambiguous statute. So, judges in the past, if a law was ambiguous within a regulation, pick any one of them that oversee us. If it was ambiguous, but the regulator had interpreted it a certain way and actually had that in practice, the court would defer to that interpretation and then make a ruling on the case. And as you know, agencies can have different interpretations over time. But at least that interpretation was at a federal level. Now that this is overturned, we'll have to watch it unfold because now judges will not be If you know, if a regulation is ambiguous, they will not be going to say, okay, CFPB, how are you interpreting this? and how were you practicing this? and then using that information to make a decision on the case. The court will make a decision just based on the law, but based on the way that the reg is written and if it's ambiguous. They may fall one of multiple ways on any particular case, either for it, against it, or send it back for clarification to be written within the law.and so that'll be our challenge, is that courts now, all starting at the state level, will be dictating how these laws actually going to play out in court and the regulators may still be interpreting them one way in their audits, but then now have to be thinking about what do they need to clarify in the written law to make sure that what they're citing us for in our world is actually going to hold up if someone wants to spend the money to then take them to court over it and so certainly in our industry, we'll be taking a deep dive into various regulations that people may say, Hey, this is unclear. they've been enforcing it unfairly and we want to challenge this and they'll be doing that in industries all across the, the spectrum, any industry that's regulated by some federal agency is going to be now taking a look at, okay, what should we be suing over and taking to court to see if we can make clear or change the way the regulator is interpreting a regulation. So, lots of this will still be unfolding and now it's going to be going back to the state level and here we go again with rules that will be difficult to follow if we get different court opinions at the state level and we'll watch this unfold over the coming years for sure. Another item that's pending is VA's notice of proposed rulemaking. Just wanted to give you a heads up on this to go check that out. They're adding some clarification on arm loans on the adjustment periods, really all of it just falling in line with how we manage arms today, but please go check this out, it's got some information about additional disclosures and then the proposed rule also brings up temporary buy downs, and they're really just adding a lot of clarification for that, aligning with the other agencies for the most part. But today their guidelines are pretty thin on how to manage temporary buy downs, and this is really bringing some good clarity for how we should be managing those and how VA expects them to work. But definitely not anything that's a big surprise. Definitely, like I said, falls in line with what most lenders are already following to keep to offer temporary buy downs. But definitely check it out. See if there's anything that you feel, you need to comment on and you can find that at regulations.gov. Have a great day, everyone. Back to you, Dave.
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!
