Pssst...efha.com is for sale. It was designed as a retail site, and the sale
includes the domain name and redesigned screenshots. Visit www.efha.com
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108018459392&s=8721&e=001Csk8tb
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for more details, and/or contact Ed Blanche at edblanch@rateprice.com
I guess it's the "new" economy.
Is anyone listening out there? Maybe: Treasury Secretary Timothy Geithner
said he expects a U.S. housing regulator in the coming weeks to detail
mortgage refinance programs that could help the battered housing market. "My
sense is, based on what I've seen...it's going to be meaningful enough to
make a difference...(the FHFA) is looking at a range of things and you'll
see more details in a couple of weeks,"
Geithner said.
The Senate Committee on Banking, Housing and Urban Development has voted to
confirm former Ohio Attorney General Richard Cordray as director of the
Consumer Financial Protection Bureau. The committee approved the nomination
by a party-line vote of 12-10, with all Republican members voting against,
as the Republicans have repeatedly vowed to do until the CFPB is
restructured. The nomination must now come to a vote before the full Senate
to complete Cordray's confirmation. But Senate Minority Leader Mitch
McConnell has united the Republican caucus to block the nomination until the
CFPB is restructured.
Flood insurance is on the minds of many in real estate and mortgage banking,
and enough so that Wells Fargo put out a "Risk Advisory Bulletin" to
provide Sellers with a full understanding of Wells Fargo's flood insurance
practices, the risks associated with insufficient coverage, and possible
actions to minimize those risks.
Wells will require borrowers be fully informed of flood insurance related
issues and starting 1/1 "generic non investor-specific flood coverage
language is required to be incorporated into lender disclosures provided to
the borrower at or before loan settlement." As always, it is best to read
the actual bulletin, in this case several pages. But, "The Flood Disaster
Protection Act (FDPA) requires federally regulated lenders to ensure that
adequate flood insurance coverage is in place for any property used as
collateral for a loan that has a building (dwelling, structure, or
improvements) located or to be located in a Special Flood Hazard Area
(SFHA).
Special Flood Hazard Areas are defined by FEMA as any flood zone A or V.
Federally regulated mortgage lenders are required to determine whether or
not a property is located in an SFHA, thus determining the need to purchase
flood insurance. For both originating and servicing lenders, there is a
great responsibility to monitor the need for flood insurance and ensure
adequate coverage is maintained on subject properties.
For servicing lenders, this also means ensuring sufficient coverage is
maintained over the life of the loan."
In Wells' case, Wells Fargo Funding's flood insurance coverage requirements
align with published Fannie Mae and Freddie Mac requirements, as well as the
minimum compliant coverage amount as defined by FEMA Mandatory Purchase
Guidelines, defined as the lesser of: unpaid balance of the loan, or
replacement Cost Value (RCV); or National Flood Insurance Program (NFIP)
Maximum Coverage Limit of $250,000. "During the time a loan is serviced by
Wells Fargo Home Mortgage, however, it is our servicing policy that flood
insurance be carried at the maximum amount available, meaning flood coverage
must be equal to 100% of the Replacement Cost Value (RCV), up to the NFIP
Maximum Coverage Limit of $250,000. Because hazard insurance is required to
equal the full Replacement Cost Value, the amount of hazard coverage is
generally used to determine adequate flood insurance coverage."
Equifax has launched "the industry's most comprehensive borrower
misrepresentation solution for hidden debt. Lenders who use Equifax's
premier undisclosed debt monitoring solution can now gain access to an
exclusive insurance program, offered through Arthur J. Gallagher & Co. By
covering losses tied to loan repurchases resulting from undisclosed debt,
this solution enables lenders to reduce taxable loan loss reserves and
improve the confidence level of originators, investors, and mortgage
insurers in the underwriting process."
Optimal Blue, the Web-based platform that couples pricing and secondary
marketing automation with content management for the mortgage industry,
announced it had acquired Sollen Technologies, whose assets, among other
things, includes a business process patent. OB will begin "executing on the
integration of the two companies' products, customers and employees
immediately, ensuring a smooth transition that maximizes the value inherent
in the acquisition." OB started in 2002, but Sollen's been around about 12
years, and was the first Web-based product eligibility and secondary
marketing automation platform introduced into the mortgage market.
How much is a lot of money? $3.14 trillion is a lot, and that is about where
senior home equity stands. This equity was measured by the National Reverse
Mortgage Lenders Association (NRMLA) / RiskSpan Reverse Mortgage Market
Index (RMMI). Unfortunately the number, for those 62 years and older, has
slid and is at its lowest level since
2004 and down $63 billion from the first quarter of 2011. The president of
NRMLA noted, "While the senior equity level is 22% off of its Q2 2006 peak,
the equity level of the overall population is down 38% from its Q1 2006
peak" due to "the relatively fast growth and lower mortgage debt levels of
the senior population."
What is the public supposed to think about mortgage professionals when they
see headlines like, "Suit alleges banks and mortgage companies cheated
veterans and U.S. taxpayers"? WashingtonPost
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108018459392&s=8721&e=001Csk8tb
Upo9qJu-g6WQnqTQj95KGaGmhgltII4jgUMBS6tEpqABVySQN49peIJH8lLojym2VmBCAu9VZ2f9
rOUSqxXW5k0DR4e1paBCx6wnT_bleEdxowW_0iTnksFhhra8sjghMv1wKaR3baejNUSpi5SbBeNM
qow1eDVAqMq0sVPXueXu2clkNutKbXJSpK4g4XC_0uKByWj4SQ7G_Qj_V0tdIlmDc0uwezIead0L
akD-yDeK4zyA9A6DsViAj11C1AURzyoExCVdoAcYJg1zhVHd6PD9GkpbVV6o663qKJ1CUCd5KY2g
==]
Wells Fargo wholesale, GMAC wholesale, and other investors, spread the word
that, "Legislation passed and was signed by the President to delay the VA
funding fee percentage decrease from Oct. 1 until Nov. 18, 2011."
GMAC Mortgage announced that it has teamed up with the Loan Value Group
(LVG) to offer the Responsible Homeowner (RH) Reward program to a group of
Veterans Administration customers who are current on their mortgage payments
but have seen a significant decline in the value of their homes. "The
program returns a portion of their lost equity in exchange for continued,
timely mortgage payments. RH Reward is designed to encourage homeowners to
avoid default and possible foreclosure by offering a cash reward when
specific payment milestones are met. The program creates an incentive
without changing the terms of the original mortgage note, or requiring
additional documentation or disclosures by the homeowner. Participation in
the program is completely voluntary and there is no cost to the homeowner."
In North Carolina Select B&T will acquire Gibsonville Community Bank from
the Bank of Atlanta.
Don't forget: Monday's a holiday! Some companies are closed, some are open
but not taking locks, some are taking locks (watch that pricing since the
markets are closed!).
For example Stearns Lending will not be accepting locks, producing rate
sheets, or funding loans on Monday.
Mountain West Financial alerted brokers that, regarding county limits,
"FHA-to-FHA-insured refinance transactions may exceed the new loan limits if
the new mortgage complies with standard product guideline requirements and
ALL of the following requirements are met: The maximum loan amount
(including financed UFMIP) of the new FHA-insured mortgage, including all
fees, closing costs, mortgage insurance premiums (MIP), interest, etc., must
not exceed the original principal amount of the existing FHA-insured
mortgage. Should the maximum loan amount (based on the original principal
balance of the existing FHA mortgage) be insufficient to cover allowable
interest, MIP, closing costs, fees, etc., the borrower shall provide cash to
cover the costs that exceed the allowable maximum loan amount. The new
FHA-insured mortgage may not have a term of more than 12 years in excess of
the unexpired term of the existing FHA-insured mortgage. The monthly P&I and
monthly MI payment due under the new FHA-insured mortgage must be less than
the P&I and monthly MI payment that is due under the existing FHA-insured
mortgage."
In August, it was initially reported that the U.S. economy created zero net
new jobs. (""Mr. Blutarsky - 0.0.": AnimalHouse
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108018459392&s=8721&e=001Csk8tb
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RP6janxLP74wqVvubEJ1lRN8NqTaDjCAT29MXDVqOV-N3p9de45B_gPdFISxk4WSwc_JdpLHS8BJ
-mu2HVjD4jiNE=].)
The employment gains in professional and business services, along with
education and healthcare, were offset by a pullback in employment in the
local government and information sectors. And this is the week that we see
lots of employment data from September: nothing too exciting. But the labor
market woes have not been shared evenly across groups. Unemployment since
the start of the recession has risen disproportionately for men, so much so
that the recession has been dubbed by many as a "mancession."
Decomposing the headline unemployment rate of 9.1 percent, joblessness stood
at
8.5 percent for women compared to 9.6 percent for men in August. This has
come at a time when male participation in the labor force has fallen
sharply, accelerating the long-term decline since the mid-1950s. And in this
recession historically male industries (construction & manufacturing) have
been harder hit than other sectors such as education and health services.
There are signs that these unemployment numbers are changing as different
sectors expand & contract, but it is interesting to watch.
The Census Bureau notes that differences are also visible when looking at
race and ethnicity. "Black joblessness, at 16.7 percent, stands more than 7
percentage points above its prerecession rate and is more than double the
unemployment rate for white workers (8.0 percent). Furthermore, unemployment
for black teenagers is staggeringly high at 47 percent, making it difficult
for this group to gain valuable work experience early in their working
years. Unemployment among Hispanics, at 11.3 percent, falls in between the
rate for whites and blacks. However, due to a higher participation rate,
Hispanics and whites have roughly equal rates of employment relative to
their populations at 59 percent. Black employment-to-population is notably
lower at 51 percent."
Turning to the bond markets, Treasuries sold off again yesterday as
investors felt comfortable adding risk with the ECB's announcement regarding
bond purchases in order to stave off a recession. 10-year notes dropped
about .75 in price and closed around 1.99%, and current coupon mortgages
worsened by about .25 in price. Helping, of course, was news that in the
first three days of the MBS purchase program, the Fed bought $3.95 billion -
88.6%, or $3.5 billion, in 30-year 3.5% and 4% coupons, and 11.4%, or $450
million, in 15-year 3.0% and 3.5% coupons. All were for November and
December settlements. Over this same period, mortgage banker selling totaled
nearly $7 billion, which means the Fed covered 58.1% of the supply.
Overnight we learned that Moody's downgraded 12 UK banks, citing a decrease
in the likelihood of gov't support being provided in the future. And today
we had the employment report for September. Expectations were for Nonfarm
Payrolls to be +60k while the Unemployment Rate held steady at 9.1%. Jobs
were up by 103k, and the rate did indeed hold steady at 9.1%. There were
significant July & August revisions upward, however, suggesting a little
steam in the jobs picture. So after the news rates moved higher, with the
10-yr moving up to 2.08% and MBS prices worsening about .250-.375.
Ole died. So Lena went to the local paper to put a notice in the obituaries.
The gentleman at the counter, after offering his condolences, asked Lena
what she would like to say about Ole.
Lena replied, "You yust put 'Ole died."
The gentleman, somewhat perplexed, said, "That's it? Just 'Ole died'?
Surely, there must be something more you'd like to say about Ole. If its
money you're concerned about, the first five words are free. We must say
something more."
So Lena pondered for a few minutes and finally said, "OK. You put 'Ole died.
Boat for sale.'"
Rob
(Check out
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or
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108018459392&s=8721&e=001Csk8tb
Upo9o2WKqLCvX1qiTjJOTpF6_r_Z0_p7zASzcQK_-xLy2HtKCOQnrtdpotVoxZnbDU5YWVOkSX6d
DeeIM7NccCkARjd6Ik2i0z2Mi4fgnTSMh7B-AHZ4BlTrn8Lzkbl9lUPMnsZQXYgrApjQ==]
. For archived commentaries, go to
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108018459392&s=8721&e=001Csk8tb
Upo9oTlsR7KI8OAo3Rcgzg_aXT3LQ2xtHS6BQ_mDvq6vQGqFn6lyZby6uSO_nSUfx2ghtzuw02pn
k1ndrbGuKfmOnYTt5eIWK01-4--NyjPn2CLw==]
. 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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