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This has nothing to do with mortgage banking or real estate, but it is
This has nothing to do with mortgage banking or real estate, but it is
definitely worth 30 seconds for anyone who drives or has a pet:
IAMNotSuperCool
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108621514216&s=8721&e=001POofEc
qjL0iKpQXumVe16a6De4Xwhe__iQWyFh3sCSkPg61A-6m3-MFbar_VHeYEqBj4NH2Y_Tl6KoD7qq
VfMWvRxHzNtAHDWIvZoz1QlWbVRQmdXsN3QfAYtb15H09W1f5wvwzODea8F-IxRU3tVA==].
In Sacramento, Sierra Pacific Mortgage is searching for a VP of Capital
Markets.
SPM originates loans nationwide, being licensed in 47 states, and has been
in business
25 years. The candidate should have extensive experience in pipeline
hedging, product development, daily price sheet maintenance, post-closing
oversight and investor relations. This position will be an integral part of
the Sierra Pacific Mortgage Senior Management leadership group as well as
the Sierra Pacific Mortgage Credit Committee. Although it is headquartered
in Northern California, SPM has regional fulfillment centers across the
country (the position is located at the corporate office in Folsom, CA).
Interested Cap Markets folks should send a resume to CFO Paul Hubbard at
And for folks who'd like to work for a company headquartered in Southern
California, there is more hiring. Carrington Mortgage Services, a retail and
wholesale lender, is looking to staff up in order to handle its
rapidly-growing wholesale lending business. Carrington is looking for
operations personnel as well as sales managers and AE's in the 37 states in
which it is licensed to do business. Interested parties should contact
Carrington's recruiting department at RobCresponce@carringtonms.com
about
Carrington, it now includes more than 80 local real estate, mortgage lending
and servicing, property management and property preservation offices
nationwide. The Mortgage Services website is CarringtonHomeLoans
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108621514216&s=8721&e=001POofEc
qjL0gTtH9z9KMzyBeo1qX5R6nJcBCOHk7IwgyViVFSp0_MnGNX0J9_ctRDkDM5l-N0ZqTOpin0Cy
0uITbCv5wOsWew8Z-zAuWBC1RfGmUnOxy3ml5Opy1EmzBH].
When it comes to loan amounts, should the "average American support
millionaires"
as some claim? Here is the latest from DC: JawBoning
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108621514216&s=8721&e=001POofEc
qjL0gJSgRGBOgzmb88tKl19MJ80wbmShabLMO0jmRImodlWXVDxlYpM7FQzTqRAdaX43Kdu5mPLw
A8dCrjrhnmuFHqDmV05We1dLxEquNXxR7bATBqJ8RqBjIiTQM75k8jv_4=].
The story above includes information on FHA loans, and there is a growing
"stage orange alert" about FHA loans and about the entire FHA program.
"...those loans with the highest likelihood of default are those in which
down payment size, FICO, and DTI, are "layered," or present in combination.
While the FHA has slightly tightened up on layering, the report claims it is
still at risk. While the private sector has mitigated such risk by imposing
stricter guide-lines for low down payment loans, FHA continues to qualify
such borrowers for mortgage financing, putting it at risk of being selected
against." This is included in a new report which can be seen at:
NMPGWFHAStudy
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108621514216&s=8721&e=001POofEc
qjL0iRkkW0AePBNZnjGxAWo8xLiz0xPdYc5vNfIuD7W_GAsjHvuKBBnigA2toRCQURr0Pic3_b_i
bcFCLKLnyOEJ768z70kWZA0dQLmkwOY69NqmQn5AUhlgr8dVwuF01STuGFJ4cqZU69vWkA1J6mLA
t4VbXMUKwZ-l2jhawHSZq5GJn58JwDrZLNU9elkuYqSGmbeuOJLGRuO29t_zYkYSk56_yMX_gSTh
_gRJvh6eje9PcZhWk6zQsb9jAfKK8YhsRJRNk9QPr1qPStgmfbRkfH].
Another study shows that the FHA insurance program is materially
undercapitalized and will require a capital infusion of $50 billion to $100
billion in the next few years - even if housing markets do not deteriorate
any further. The study was written by Joseph Gyourko at the University of
Pennsylvania Wharton School, and is titled "Is the FHA the Next Housing
Bailout?" Describing the FHA present state as precarious, Gyourko says for
the past two years the nation's 77-year old insurer has been in violation
of its capital reserve regulation. The reserve is supposed to hold
sufficient reserves against unexpected future losses on the insurance it has
issued. To comply with this rule would require a $12 billion capital
infusion in fiscal year 2010, his research found, and that presumes that
future losses are not being underestimated by FHA. And last year New York
University and the New York Federal Reserve issued a paper warning of the
growing likelihood the FHA would need a taxpayer bailout.
And just to prove that I obtain my news from sources other than People
Magazine, when things get really slow, I check out the Middle East North
Africa Financial Network's view of companies like Redwood Trust:
MoneyRoundTheWorld
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108621514216&s=8721&e=001POofEc
qjL0hLLhMFIqWcbGeqA1UGP3i9nn6koaFYu8TdV7sB1PNGIo4EQj-MctMYPktFfyG0FaU247dWsZ
CeETz53QTxyxf0z88zkYxLmkyp7mhGww1GJdnnyYXUGpDYq7ECGmjCzR9BlfFtqklhaBJXYXYXvp
_bQ2Tt7ewlxDAP9oXT0sl-aehp4ZKnTQB8YHWQY1ztKP-Tm8PA6MslOg==].
Deutsche Bank and Citigroup have agreed to pay the US National Credit Union
Administration a combined $165 million to settle allegations the banks
misled five failed credit unions over their purchase of mortgage bonds,
which, per the WSJ, is the first federal recovery of mortgage-bond losses
incurred by collapsed financial institutions. Deutsche will pony up $145
million, Citi $20.5 million. Neither Deutsche nor Citi admitted wrongdoing.
"The five failed lenders, which served smaller credit unions by providing
services such as check clearing, suffered about $30 billion in losses from
poor mortgage investments, said Debbie Matz, NCUA chairman." "Our
investigation indicated there was systemic disregard of underwriting
standards," said John Ianno, NCUA's associate general counsel for
enforcement and litigation, of Wall Street's mortgage practices.
U.S. Sen. Bob Corker (R-TN) has announced the introduction of the
Residential Mortgage Market Privatization and Standardization Act to
responsibly unwind Fannie & Freddie "and end dependence on the government
for housing finance." The Act would gradually reduce the portfolio of
mortgage-related assets guaranteed by Fannie Mae and Freddie Mac and take
steps to bring uniformity and transparency to the housing market so that
private capital can begin to replace the GSE's. Corker noted, "We are no
closer to transitioning Fannie Mae and Freddie Mac off government life
support than the day the firms were taken under direct government control
in 2008."
First off, this is an introduction of a bill, and second, no one expects
anything to happen before November 2012, but it is interesting to see the
elements. For example, it reduces each year the percentage of newly issued
MBS principal that is guaranteed by Fannie Mae and Freddie Mac. The
percentage guaranteed must be reduced to zero within 10 years, at which
point MBS will be wholly privatized. It creates an industry-financed
database that makes uniform performance and origination data on mortgages
available to the public through the FHFA. It initiates a process for
creating deliverability rules and technology necessary for the
"to-be-announced" (TBA) futures market with no government guarantee. It
replaces the QRM and risk retention with a 5% minimum down payment and full
documentation requirement. And it seeks to create a uniform pooling and
servicing agreement (PSA) and a new electronic registration system (MERS
2) where all loans are transferred under one system regulated by the FHFA
and instructs federal regulators to develop uniform practices and streamline
mortgage regulations.
Today is scheduled to be a BIG DAY for the agencies, or at least the
industry is hoping it is, with the release of HARP 2.0's details. And the
industry hopes that the large investors out there tag along without too many
restrictions and overlays, and that Freddie & Fannie reconcile their
differences in rep & warranty requirements.
But would you buy a pool filled with HARP 2.0 loans? The Financial Times
reports that, "Officials are considering three main options to support the
new effort.
Their first preference is for Fannie Mae and Freddie Mac, the US-controlled
mortgage financiers, to package these mortgages into a new class of
mortgage-backed securities for sale to private investors, if the pricing is
reasonable. If this fails, Fannie and Freddie could acquire the loans and
keep them on their balance sheets. A third idea mooted in Washington is for
the Federal Reserve to act as a back-up buyer for these mortgage securities.
Such a move is not under active consideration at the central bank. These
loans will continue to be guaranteed by Fannie and Freddie - and by
extension US taxpayers - so investors will not have any credit risk. But
tax rules make it hard to put 125 per cent loan-to-value debt into regular
mortgage-backed securities issued by the two agencies. If they are issued as
a new class of MBS, investors may demand a higher yield to reflect the
illiquidity of such a small pool of mortgages - and that cost would
ultimately be passed on to homeowners, potentially negating the benefits of
the program. Remember that severely underwater loans are not eligible to be
put into Fannie and Freddie-backed collateralized mortgage obligations.
Tax rules prohibit mortgages at more than 125% LTV from being placed into
CMOs or real estate mortgage investment conduits.
Impac Mortgage Holdings reported third quarter 2011 net earnings of $3.1
million, up from less than $1 million of earnings for the third quarter of
2010. "During the third quarter of 2011, the Company continued to expand its
mortgage lending activities increasing loan originations and loan sales.
During the three and nine months ended September 30, 2011, the Company
originated $256.6 million and $538.1 million and sold $250.3 million and
$485.5 million of loans, respectively, as compared to $22.1 million of loans
originated in the first nine months of 2010. Consistent with the Company's
strategy, it also increased its servicing portfolio with an increase in
sales of servicing retained loans to Fannie Mae and increases in Ginnie Mae
issuances."
The markets pale in comparison to all this excitement. Yes, there is some
hand-wringing by investors over potential prepayment fluctuations based on
HARP 2.0; much of this is already priced into the market for premium
coupons. There is also chatter about additional MBS purchases by the Fed.
Yesterday the 10-yr barely budged, closing at 2.04%, and rate-sheet mortgage
prices hardly moved either.
Things picked up today in the U.S for economic news, but rates have not
moved. Besides, what differences does PPI coming in at -.3%, with the core
rate unchanged, when entire nations in Europe are financially unstable.
Nonetheless, we did have the PPI, and also Retail Sales (+.5%, ex-auto +.6%,
slightly better than expected), and Empire Manufacturing (+.61% for
November). After the news the 10-yr is nearly unchanged from Monday
afternoon at 2.03% and MBS prices are unchanged as well.
Did You Know This About Leather Dresses?
Do you know that when a woman wears a leather dress, a man's heart beats
quicker, his throat gets dry, he gets weak in the knees and he begins to
think irrationally???
Ever wonder why?
It's because she smells like a new truck.
If you're interested, visit my twice-a-month blog at the STRATMOR Group web
site located at www.stratmorgroup.com
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106435366068&s=4179&e=001SVt-lj
bp53436QjxD9vbwURtIPPjV05jEcEKyBN3SjS2forXe0C_foO8RjEV-Uye0N7Z_Sh1il0SRXPx6P
jQauayNXQjni-Hc9Sseu-hhZcR1ujeZyAEpw==]
. The current blog takes a look at the impact of HARP 2.0 and the
differences in the agency's programs. If you have both the time and
inclination, make a comment on what I have written, or on other comments so
that folks can learn what's going on out there from the other readers.
Rob
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