Wednesday, October 5, 2011

October 5: Upcoming conferences & lots of various training sessions; a pod of investor updates

The English language has different nouns for the various groups of animals.

We call a bunch of cows a "herd." We call a group of geese a "gaggle," a

bunch of fish a  "school." We call a group of sheep a "flock." There's a

"pride" of lions, a "murder"

of crows, an "exaltation" of doves, a "parliament" of owls, and a "congress"

of baboons. I don't know which of those might apply to folks in the mortgage

business when they congregate, but they have been, and will be, congregatin'

in conferences.



Next week, of course, is the MBA event in Chicago: mortgage bankers

everywhere are gearing up for the MBA Triathlon (making sure your blackberry

is charged, sitting through eight 1-hour meetings about paperless &

electronic delivery, and then attending five cocktail receptions in 3 hours

within 4 blocks).



But on a regional basis, in Bellevue, Washington the following week (10/18)

is a  dinner hosted by the Seattle Mortgage Bankers Association, the topic

being "The  Current State of Mortgage Banking: How changes may help the

industry going forward."

For more information go to Seattle

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1107987150221&s=8721&e=001J3lpqK

XGZ8uUOiSijF2f1hU-EZ2cdspIEXT65DsV4dcuLCjZgxGWvMT4IW3MOZRg9lVXQrYFGO4ifyagk4

zI0sQbTWZqra2EpemH8ZSMrIjGgwVIEUEW4QFTaUvkiDUi].



And in the Dallas area, November 7 & 8, the Texas Mortgage Bankers

Association is hosting its 61st annual Educational Seminar and Marketplace,

titled, "The Confluence of Government Regulation and Loan Origination."

Topics include, "Issues Experienced During Compliance Exams & How Financial

Institutions Can Be Proactive, Transitioning from a Branch Manager to a

Mortgage Banker, Best Practices for Disaster Recovery  in Secondary

Marketing, The Fine Print in Mortgage Insurance and Quality Control Audits,

Right or Wrong What Might Get You Sued? Real Estate Economic Forecast, and

Fair Lending from a Legal and Business Standpoint," along with continuing

education for MLO's." The early registration ends today, so if you're

interested go to Dallas

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1107987150221&s=8721&e=001J3lpqK

XGZ8v6NDW3J22D00lRljn4W6BmWJsFfI_3DU67Xl4RpkNbWvXeaO_7Qcyv8kQYwckqvX4J4WpCqn

0rUvSSMtLyfPul4r1OI0NlXGk76z29-3XFxM6hBzRekMWDUcYVuyOExKc=].



And for more training, Capital Solutions Financial Group (CSFG), an Irvine

CA based lender, is hosting a non-agency real estate mortgage performance,

investing, and  lending seminar next Wednesday (10/12) evening at its

corporate headquarters in  Irvine.  Guest speakers include Mark Latimer

(President Baypointe Equity - specializing in arranging private mortgage

loans), Mike Kaylor (president of the Kaylor Law Firm discussing deferred

trusts and tax law), and Rod Colombi (president of CSFG - reviewing recent

real estate trend data and investment returns). For more information please

contact Rod Colombi rcolombi@capitalsfg.com




If you're interested in what the US Census Bureau has to say about housing,

which might just be pretty interesting, tune in tomorrow at 1PM EST when a

few folks from its Housing Statistics Branch do a presentation. Use the toll

free number: 1-800-369-2179, with Participant passcode: CENSUS. "Note: Stay

on the line until operator asks for the passcode. Do not key in passcode."

For the online portion, login early, as some setup is required. URL

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1107987150221&s=8721&e=001J3lpqK

XGZ8un_hXLZWuFNRZI2yH6dNFPwMOqW5ZPzXlzMfd8h7kNtC43Fma_q-IdtUkzHZxEc5gKiFyORZ

PRRXmFvNeKmftUZ6kPaw7CN6iswekAq4cTJ381UPBPSv6DhCmE9g1FM5s=].

Conference number: PW4849582, Audience passcode: CENSUS.

And for you NMLS issuers, this month's course provider renewal period closed

on

9/30 and the October renewal period opened 10/1 - you know who you are and

have until Monday, October 31 to submit their renewal applications.  'Course

providers up for renewal are encouraged to closely review the documentation

posted under the Course Provider Section of the Resource Center to ensure

they are in compliance with all requirements prior to submitting the

application and paying the fees."



Everywhere I go, loan agents say that the NMLS classes are "kind of

interesting,  and usually pretty fun until you find out that the teacher

means business - usually at the point the cell phones are turned off and go

into a bag." The SAFE Act requires that state-licensed mortgage loan

originators (MLOs) complete 8 hours of NMLS approved continuing education

(CE) annually. The SAFE Act also stipulates that a state-licensed MLO "may

not take the same approved course in the same or successive years to meet

the annual requirements for continuing education."  NMLS has interpreted the

term "successive years" to mean two years in a row. "The NMLS Policy on Late

CE courses and the requirements and details associated how to submit courses

for the 2011 Late CE catalog has been posted to the Course Provider Section

of the NMLS Resource Center under Notices and Examples, and there is a

conference call tomorrow at 2PM EST addressing this. "The conference call is

limited only NMLS approved course providers.  Providers interested in

participating need to RSVP to Rich Madison (rmadison@csbs.org




Yesterday the commentary had a lengthy discourse on the appraisal process.

But I  had the incorrect name: it's Mark Chapman, not Mark Eastman, from

SouthEastern Evaluation. My apologies - normally I save my mistakes for

industry news, underwriting updates, and economic statistics!



Starting this week Bank of Internet USA is now BofI Federal Bank.  BofI

Federal Bank has adopted the new name and logo to unify its division brands

under an umbrella entity.

PHH Mortgage announced that in the last six months it has "agreed to provide

mortgage services to five new financial institution clients through its

Private Label Solutions

(PLS) business. Many in the industry attribute PHH's growth to the servicing

agreements that it signs with clients, in that it agrees to not cross-sell

to borrowers - a  big plus. The press released noted it "signed agreements

with these new PLS clients to provide end-to-end mortgage process management

services to loan officers, financial advisors and their customers. The

Company also said it was unable to reach an agreement to renew an existing

relationship with Charles Schwab Bank, and indicated that it expects the

addition of its new PLS clients to more than offset any resulting lost

income from Charles Schwab Bank...As a result of these signings, we will

expand our nationwide footprint for sourcing mortgage originations, with a

net gain of more than 25,000 financial advisors affiliated with our PLS

clients, further strengthening our position as one of the leading

knowledge-based mortgage originators and servicers in the United States."

For more investor news, Bank of America issued a disaster update for the

Texas wildfires.

It also addressed the Uniform Loan Delivery Dataset (ULDD), provided a

revised loan purchase voucher, and a new LPV Affordable Loan Program

Addendum.



Suntrust told clients that, "HUD REO properties that only require a minimum

down  payment of $100 may only have a maximum total loan amount including

upfront mortgage insurance premium (UFMIP) equal to or less than the "as is"

appraised value. This update does not affect 203(b) with repair escrow

loans."

JPMorgan Chase issued a bulletin serving as a reminder of the Chase price

cap policy for Standard Mandatory, AOT/Direct Trade and Best Efforts

products, and also increased its price adjustment for agency fixed rate high

balance loans by .125.

The Department of Agriculture sent out a form (10-11)1980-21 "that must be

used on any files received for Conditional commitment, as the revised form

incorporates the required annual fee disclosures." It also told folks that

"funding for the Single Family Housing Guarantee Loan Program (SFHGLP) will

not be available for a short  period of time at the beginning of Fiscal year

2012. During the time frame between October 1st, 2011 and receipt of

continuing resolution funds, Conditional Commitments will be issued "subject

to the availability of commitment authority" for both purchase and refinance

transactions. The FY12 up-front guarantee fee will be 2% for purchase

transactions and 1% for refinance transactions In addition to the up-front

guarantee fee, all FY 2012 obligations (purchase and refinance)will be

subject to an annual fee of 0.3 % of the average schedule unpaid principal

balance of the loan. Contact Tony Ballestero if you have any questions:

208-733-5380, ext. 106 or visit www.rurdev.usda.gov

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1107987150221&s=8721&e=001J3lpqK

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1DUVTrhytJd3JUgDigBIrJyGq6FpB2W1mzvQ==].

ING Mortgage let brokers know that it made some changes to rate adjustments,

starting today. "ING to ING Refinance rate adjustment will be removed.

Second Home rate adjustment will be increased from 0.125% to 0.375%."

Franklin American sent out over four pages of changes to their guidelines,

and the corresponding sections of FAMC's guide. Topics ranged from new forms

for FHA condominiums & the total loan amount for IRRRLs including the EEM

cost improvements to the new annual guarantee fee for USDA loans & employer

relocation assistance. As always,  it is best to consult the actual

announcement for information - it is too long to detail here.

GMAC Bank Wholesale & Correspondent reminded clients that Monday is Columbus

Day  and a federal holiday. Therefore, many banks and the U.S. Postal

Service will not be open for business. GMACB will be open for business, but

the day cannot be included in the rescission period for refinances. It is

not a business day.



The markets are behaving themselves, although fixed-income traders report

that trading in this environment is growing increasingly difficult. "We're

approaching levels  that suggest the worst is built in." The MBA reported

that mortgage applications fell 4.3% last week in spite of the great rates.

Banks are afraid to lend, to put it simply. Volatility picked up a little

Monday afternoon when traders realized the Fed's daily purchases were not

going to be enough to hold up mortgages at current

(low) yields, higher levels of volatility and supply. Throw in some European

uncertainty and the REIT issues mentioned above and folks become nervous.



Bernanke's talk yesterday showed concern about the problems in Europe and

market  uncertainty, and he urged policy action to support the housing

market and encouraged Congress to come up with a long-run plan for fiscal

responsibility - nothing too  dramatic. But he feels that stabilization in

the housing market is crucial to the economic recovery, and that Congress

should focus on policies to support housing  such as managing REO overhand,

facilitating refinancing for underwater borrowers, stabilizing distressed

neighborhoods, and suggesting a clear path for the future  of the mortgage

finance system. Good luck with that one ahead of next November.



By the end of yesterday Treasury rates were nearly unchanged from Monday's

closing levels, with the 10-yr at 1.78%. Originator selling picked up with

supply totaling between $2 and $3 billion, higher than average over the last

30 days per Tradeweb, which pushed MBS prices down about .375.



Overnight Italy's credit rating was cut by Moody's for the first time in

almost two decades on concern that chronically weak growth will make it

difficult to reduce the region's second-largest debt while fallout from the

region's debt crisis boosts financing costs. Do you think so? Moody's

lowered Italy's rating three levels to

 A2 from Aa2, with a negative outlook. The ADP numbers came out this

morning. Small business service providing companies contributed nearly 2/3

of the jobs - and the basic ADP number showed a pickup of 91k, a little

stronger than expected. Later we have an ISM Non-Manufacturing number. The

10-yr is up to 1.84% and MBS prices  are worse by about .250.



(An example of mistaken unintended consequences.)



Ole and Lars were on their very first train ride. They had brought along

bananas  for lunch. Just as they began to peel them, the train entered a

long, dark tunnel.

"Have you eaten your banana yet," Ole asked excitedly?

"No," replied Lars..

"Vell, don't touch it den," Ole exclaimed.  "I yust took vun bite and vent

blind!"



Rob



(Check out


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[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1107987150221&s=8721&e=001J3lpqK

XGZ8tpZ3D1AuP49hWMSP1PHdQgZh0UuXOeDl_f3fWajhfqkYHeuFQHIrWZQWRlDDQ06xZ_yBja0C

Btnkft86l64PdVsqocr0thf_8vvB-x14jBbXXrFNLNduL2eCa7BuKxl6jmYNq0BVVZog==].

For archived commentaries, go to www.robchrisman.com

[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1107987150221&s=8721&e=001J3lpqK

XGZ8sZcR4-9zR44LwjKUY6H5quZQ3e2p0Rp6n8l0ahRv14_ZX5ffndDDzgB4EGz2Lo84l20mWrqL

6aTJhxl_Ko9ZjsV4wuJ9qP909CyVvWs5CDFw==].

Copyright 2011 Rob Chrisman.  All rights reserved. Occasional paid notices

do appear.

This report or any portion hereof may not be reprinted, sold or

redistributed without the written consent of Rob Chrisman.)

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