Production jobs come and go. On one side, Kinecta Federal Credit Union is
continuing to grow its business and is hiring Retail Mortgage Loan
Consultants and Sales Associates throughout Southern California. It is also
growing its wholesale lending with AE positions open in California, Kansas
Iowa, Utah, Idaho and the Northeast US. "Kinecta FCU is one of the nation's
leading Credit Unions, with more than $3.5 billion in assets and serving
over 220,000 member-owners across the country. Kinecta offers a competitive
compensation and benefits package in addition to a dynamic culture and a
large product line." If you know of someone who might be interested, they
should contact Sue Ann Smith at ssmith@kinecta.org
On the other side, Perhaps Kinecta can pick up some BofA folks. Bank of
America this week made the decision to exit retail lending in six low volume
states including Alabama, Alaska, Montana, Nebraska, Wisconsin, and Wyoming,
per the National Mortgage News. I bet if Ken Lewis, or Brian Moynihan, could
turn back time, they'd do it.
"An inspector general for HUD has recommended that Bank of America face
fraud charges relating to faulty borrowing data submitted to the agency in
connection with its Countrywide unit. In his words "Countrywide did not
properly verify, analyze, or support borrowers' employment and income,
source of funds to close, liabilities and credit information." And isn't
that the basic problem, summed up in one little sentence?
In the bulletin Bank of America also tweaked its FHA Streamline Refinance
underwriting:
"At time of application, at least 12 full months must have passed since the
first payment due date of the mortgage being refinanced." It is indicative
of an apparent trend in the industry to question the long-term viability of
the program, to wonder what future class-action lawsuits might be ahead for
companies that specialize in them, and to think out loud about FHA claim
denials and the FHA in general: FHAClaims
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108002314545&s=8721&e=0016_oENn
KksZkAE9Dbl5Ql9-jzyB2M3no6J5qcpVfQQFgP1a5cVYSU0KRlygtEY2w7tpwS8CqjpDQJLsYdzK
hl3A9jQvB4NHP-B98e4I6-xqil8OyImSrNJ37uwHbbGuIKvRAHxi6diSBaWgMwDeOB2rqe7i14e5
oONRgP898HPHS08lOxrzh-opf9i3MBeC1ASqKyOizsB_zr4Vf3rV4YJjlfI3yx8Ay9JTv7E5-F96
32FW0z6FKGzQ==].
One reader wrote, "We haven't been able to do much with FHA streamlines
since the 5% change. The .90 and 1.15 change just made it nearly impossible.
People in FHA loans only put down 3 or 3.5 percent, we know values are
dropping and they wonder why FHA loans have higher default ratios.
Conventionally you have the HARP program but just as they moved the end date
from 6-2011 to 7-2012 they need to move the purchase date for Fannie or
Freddie to everyone can take advantage of the program or at least from
5-2009 to 5-2010. These things seem so easy to figure out. We see the
problem but we aren't taking the necessary steps to solve it. With rates
this low something needs to be done immediately to help people refinance.
Let's not wait until rates begin to go back up. People being able to
refinance and save money will allow for more spending which is what the
economy needs."
All real estate is local. In Manhattan, "The East Village one-bedroom,
one-and-a-half-bathroom condo that he bought for $859,000 was a 'tremendous
value' that he couldn't pass up, he said." Value? I am sure that any buyers
would qualify for an FHA loan. Actually I don't know that, but once again
the FHA is the target of conjecture and theories about its business plan and
long-term prospects. On the 19th, "Due to our commitment to focus on
application volume that we can acceptably process and close on-time, Bank
of America is temporarily suspending New Applications on selected Government
Programs, Property types, and Products" for retail sales, centralized sales,
and fulfillment channels. BofA told its agents, "The following FHA and VA
Programs are being suspended: All "Off-Us" Refinances (Rate and Term,
Cash-out and Streamline) All Cash-out Refinances, loans on the following
property types are being suspended for FHA and VA Purchases and Refinances:
Manufactured Housing Unique Property Types (Log Homes, Earth Homes and Earth
Berm Homes)."
HUD reiterated the current status of, and possible future changes to, its
HECM program.
"FHA is currently in the process of revisiting its regulations to propose
and ultimately adopt changes that are necessary to make the HECM program
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108002314545&s=8721&e=0016_oENn
KksZkwSSI6LdS4vFoH3R97Z8KJy-hLGuWXlBFSST310u7_Gb3OF27AVVoHUfTS3_lAhUVdWa7yvb
J_sFBz_zT-IftEVdYPLi9yYcsudX02GQvtsKnXJC6CoCbiZnCNFK5Y4J5cRVUV6v-6jEDpkN1Wta
JqB_eeq_UuAe95MzwgCYWI6FCKqOjWH_cJ]
even more successful."
For next week's Chicago conference Bill from Provident writes, "I can't wait
to attend the paperless technology meeting when less than 5 investors /
lenders I know will accept electronic signatures. Wasn't it Bill Clinton
that signed into law the acceptance of paperless? Or was it Calvin
Coolidge?"
I mentioned the Chicago MBA conference. John from Wells Fargo reminds us
that the Chicago Marathon is Sunday (sponsored by BofA!), and that many
roads are actually closed. The gall - didn't they know the MBA was coming to
town? RunAway!RunAway!
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108002314545&s=8721&e=0016_oENn
KksZm7G0NQjHC9d2PKq-p3oVJrF4qBsXmsUK-MI0yDmB3r_cijbd5TJYAlNoyJHPpFzeBSuI6I9p
J-Ng3cmHlWntSRbhdcLNFMzSfTKWu_zkJk8jWw8EBM5Jq446d_bEOIeU5DUGchhNPzKIDMCAS5bM
PN095pZQm7FjI8Lrfn3mKK-sKSQNs7zxPruVXqB-v_64qWAoaXsVFIjaak722H035SkLjWt9O2ZC
bG_tUyyEruXQ==]
MERS has something to be pleased about: an Arizona federal judge dismissed
72 lawsuits against it, with the judge relying on a September appellate
court decision and rejecting the argument by plaintiffs in the consolidated
litigation that naming MERS as a beneficiary on deeds of trust means they're
unsecured and the properties can't be foreclosed. He said, "This court does
not find legal support for the proposition that the MERS system of
securitization is so inherently defective so as to render every MERS deed of
trust completely unenforceable and unassignable," Teilborg wrote in his
order dismissing the claims. Of course Valerie Edwards, co-lead plaintiffs'
counsel, said plaintiffs plan to appeal, because that is what attorneys do.
"Rob, even though the NMLS does not allow a LO to take the same CE course 2
years in a row, that does NOT mean they cannot use the same provider for
their CE education.
They just have to make sure the provider gets a different course approved
each year. Mortgage Training Today will be doing one course each year, so
they can use us over and over again!" So noted Barbara Werth with Mortgage
Training Today. (If you have questions send her a telegram at
As of 9/30, new or existing MLOs have completed over 462,739 hours of PE
(pre-licensure) in 2011, equating to approximately 23,136 MLOs.
Approximately 321,427 hours of CE has been completed equating to
approximately 40,178 MLOs or about 47% of the estimated 85,000 MLOs who are
expected to complete CE in 2011.
Tuesday I wrote about appraisals, and confusion on some of the rankings, and
received this note: "I'm looking for someone knowledgeable with the new
appraisal regs - in particular these new C-4, C-5 and C-6 rankings -- and
how investors are going to interpret them, who might be interested in coming
to New Orleans to speak at my managers meeting next week. Do you happen to
have any thoughts on the subject?"
If that perks your interest, write to Paulina McGrath, the president of
Fannie has new policies for loans that become delinquent after 10/1 "to
streamline and simplify servicing processes, help servicers to contact
delinquent borrowers more effectively, determine eligibility and offer
foreclosure prevention alternatives to struggling homeowners." Your
servicing group had better know them! ServicingRequirements
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108002314545&s=8721&e=0016_oENn
KksZk7HwemzkHneci42KvPatYiArlo65MdK7bkriamseupg7xHCPhiYX_c_G_KqmFOLUJD0DOCYS
5q-LYVUXPl4LGWrmA0RX0_sNpH6_tqKLEEUFK0v815LkTLVGvo_1FR48HQnfw93wgzlImv4L6kgk
GcjW76E3GJGfZjHbFepf8LkA==]
And while you're at it, on 10/12 Fannie's "Property Maintenance and
Management:
Property Preservation Matrix and Reference Guide" will become effective.
MowThatLawn!
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108002314545&s=8721&e=0016_oENn
KksZndJxTyatZMu7M7uGRcrqWr52pDB_Nl_rnwuek0LDFIT-ra5Jppckr2lNEh80v53AnbOlqnvM
KYQUh8qncLKwQMD5Xqtt9oTNkLBN33tUKBvtfegRvl5tZntjxWd-Tp2xbwZSjD2dd-La-7XirbRF
3xe9HBGS33_7yL4dOp0Lu0eAmUU1OieUqEwpd4NR47Iok=]
The FDIC is very good about posting the banks examined for CRA compliance
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108002314545&s=8721&e=0016_oENn
KksZmL3OCJPFhPdiuihAAkGunhg50gVUhhMFc45fVMyEH0-up8kJYFqw4aGilniKpxl_x3b_P4r2
RNwixDbKm1gxQyfUbmPPdaA5HUe1M0dLXzQeACChdzXfgwUuvjpSZvqfvrSL020n3Pu_7q6D-Amd
6lpJPXwga0l58=].
Investors such as GMAC, PHH, and Home Savings of America reminded clients
that Monday is a legal public holiday and it may not be counted in the three
and seven day waiting periods or the three day right of rescission, nor will
funds be wired, nor will banks or post offices be open. "HSOA (and GMACB)
offices will be open that day and the lock desk will be open normal hours."
"Effective immediately, Home Savings of America is temporarily suspending
our offering of the 203K program."
GMAC Bank's correspondent clients will see a new rate sheet on 10/11. Anyone
with spreadsheets tied to it had better get to work!
PHH told clients that, "USDA Rural Development issued an announcement
indicating that funding for the Single Family Housing Guaranteed Loan
Program will not be available for a short period of time at the beginning of
fiscal year 2012, which began on October 1st, 2011. During the temporary
lapse of funding, Rural Development will issue Conditional Commitments
"subject to the availability of commitment authority"
for purchase and refinance transactions. PHH will continue to close/fund
loans with Conditional Commitments issued "subject to the availability of
commitment authority".
Citi came out with its usual list that no one wants to find themselves on:
ineligible originators. "This list shows brokers, correspondents or other
loan originators whose loan originations (or who have any role in the
origination) are not acceptable to Citi for purchase." The Citi Ineligible
Originator list (along with ineligible
appraisers) is posted on the Citi Correspondent website
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108002314545&s=8721&e=0016_oENn
KksZmXrb5LX_AijToZYFQ4erITkXN4kjUspLFsxGubsyO5YEHkTBNehkOyrFPfUQm7MG05OhfdXQ
4sIhslQb2xBaZSYt-zPqNMy79jTZr11Xa65n6q2vosReqeHWbX-nBmrMycvzmDDmAqeSXnvf6xII
exVexTqEqGV7g=].
Chase is revising the list of approved Appraisal Management Companies (AMCs)
for Non-Agency loans. The list of Chase-approved AMCs for Non-Agency loans
has been reduced to two AMCs: LSI and Equifax. "A Chase-approved AMC must
be used to order the appraisal for any Non-Agency loan sold to Chase.
Appraisals for other products may be ordered by the Correspondent directly
or through an AMC of the Correspondent's choice."
How long will our stock and bond markets go through the yo-yo caused by what
happens in Europe? A long time, apparently. "Treasury prices lost ground
yesterday after reports surfaced that EU was working on a plan to support
imperiled European banks.
This reoccurring story removed the luster from the flight to quality bid and
sent treasury yields higher. Prices are continuing to edge lower this
morning as investors wait for the actual details of the rumored plan." They
have a plan, then they don't have a plan, they have one, and then they
don't... So yesterday treasuries sold off (the 10-yr worsened more than a
point and closed with a yield of 1.90%) while equities gained. MBS prices
were marked lower by about .375.
Today we had weekly Initial Jobless Claims for last week: the previous
week's was revised from 391k to 395k, and last week's rose 6k to 401k. No
big deal. At 8AM PST the Treasury announces details of next week's auctions
of 3- and 10-year notes and 30-year bonds - estimated unchanged at $66
billion. Stay tuned for tomorrow's unemployment data, but for now the
10-yr's yield is up slightly at 1.94% and MBS prices are worse by .125.
(Parental discretion advised.)
Grandma and Grandpa were visiting the kids and grandkids overnight.
When Grandpa found a bottle of "enhancement pills"in his son's medicine
cabinet, he asked about using one of the pills.
The son said, "At your age I don't think you should take one Dad; they're
very strong and very expensive."
"How much?"
"$10 a pill," answered the son.
After they left the next morning, the son found $110 on their bed. He
called his father's cell phone. "Dad, I told you each pill was $10, not
$110."
"I know. The hundred is from your mother."
Rob
(Check out
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108002314545&s=8721&e=0016_oENn
KksZmYBlDUKkwE__zhB0WsAR_5S3Y9CajwKnl_6yHKbSAFCK-UkQ_b9RKT8-PEUqAph4eXG_BD5g
slOn8RTJAeyXToe1fyYXGB1bkz5kIV2PnxRksJdRQrh_X_UfVkvMQVMTh4yu63Ef5FjGAbU4s_OG
_U5GoEAKzEcwSICJ76kF5sOQ==]
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108002314545&s=8721&e=0016_oENn
KksZmXDXbHnpFSFaQSzpeNS8RF8Dh2bhNL7ITvY9_B_CfmIy37M6IUmlMnXYI_EVlM8uY4oYjkPP
Mnjv8Zty5tALTtrjosvA06NYTPALrOYsmhPthXTOeURUCfqtxPq4A3v8QKzHsZuNC0SA==].
For archived commentaries, go to www.robchrisman.com
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108002314545&s=8721&e=0016_oENn
KksZkvsKf4NYyG1DjTIvwTKox6EJm727riMKy3Hhe-mbeMqZvKKFavZtzBThgHvP8z5ihAk5pSiS
JnW1nz_uuNPrG5FggLs2cY70nRZbud7QFtcg==].
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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