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TITLE I LENDERS MEET TO REVIEW NEW RULES

 TITLE I LENDERS MEET TO REVIEW NEW RULES
 SAN FRANCISCO, Jan. 15 /PRNewswire/ -- One of the government's


oldest consumer services, the FHA's Title I Home Improvement Loan program, has recently undergone extensive remodeling, and now offers significant new opportunities for lenders and homeowners alike.
 The 58-year-old government-guaranteed loan program has been marked with controversy in recent years over lending practices and third-party involvement. Now new HUD rules have re-defined and strengthened the relationships between lenders, marketers and borrowers.
 Discussion of these and other sweeping changes in Title I rules will be the centerpiece of the Annual Meeting of the Title One Home Improvement Lenders Association (TOHILA), Feb. 1-4 at San Francisco's Ritz-Carlton Hotel. TOHILA is an industry trade group.
 Most important of these new regulations, is the elimination of the discredited system of loan brokers and increased monitoring of performance by remodeling contractors. These independent agents have been widely criticized in the past as a chief source of fraud and bad loans.
 The meeting will focus on the newly restructured relationships between loan originators and investors; as well as the increased accountability required of remodeling contractors.
 "From a lender's standpoint, the new regs should improve the profitability and dependability of the program," said Peter Bell, TOHILA executive director. "The timing couldn't be better because as interest rates fall, secondary market investors are moving into higher yielding ventures like Title I Loans."
 "That's great news for consumers as well," he went on, "because more investors means increased capital availability and lower rates."
 The new rules establish a correspondent category to help lenders build loan volume, instead of relying on third-party brokers as in the past. Correspondents can be depository institutions, mortgage bankers or other financial organizations licensed to originate loans.
 Unlike brokers, correspondents must be sponsored by an approved Title I lender, maintain a minimum net worth and meet other HUD requirements. In addition, they must close loans in their own name, although they can then transfer them to a sponsor or into the fast- growing secondary market after closing.
 "Establishing solid correspondent networks will be a key ingredient for lenders' future growth," said Bell. "But other changes involving underwriting standards and borrower qualifications should also be fully understood.
 The San Francisco meeting, which is expected to draw lenders, correspondents and secondary market specialists from across the country, will also focus on business management issues such as marketing, quality control, property appraisals and packaging loans for the secondary market.
 "It's a chance for current Title I lenders to get up to speed on the new rules and for potential lenders to take a fresh look at the profitable opportunities offered by these loans."
 Fees for the four-day meeting are $445 for TOHILA members and $550 for non-members. For registration or further information, contact TOHILA at 202-328-9171.
 -0- 1/15/92
 /CONTACT: Kevin or Simmie Collins, 415-665-2933, for TOHILA; or Peter Bell of TOHILA, 202-328-9171/ CO: Title One Home Improvement Lenders Association ST: California IN: SU:


DG -- SF012 -- 0269 01/15/92 18:19 EST
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Date:Jan 15, 1992
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