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"Rob, I attended a seminar
last week, and one of the speakers mentioned something called 'Freddith Mae'.
Ever heard of that?" Nope - either I'm out of touch & confused, or
someone else is and you should ask for your money back. But one thing I am
confused about, and it is probably only me, is what a "rule" is.
When I was growing up, a rule was a rule. Now, since the industry is subject
to the CFPB's rulings, we seem to have a rule announced, then time for public
comment, then a final rule, and a public comment period, and then amendments,
with public comments, and then changes to those. Look how many times Reg. Z
has been changed - maybe I am the one who is confused.
Private mortgage insurance
company Genworth Financial is seeking candidates for an Account Executive
position in Northern California. The person hired will be
expected to provide the highest level of internal and external customer
service, manage customer relationships and develop growth strategies for
assigned accounts, develop calling plans to cover all assigned accounts,
monitor branch volume and calling activity and take necessary actions to
achieve account volume goals, execute and lead implementation of Genworth
products and initiatives, identify and communicate new opportunities to
provide solutions to customer needs, etc. The ideal candidate will have 2+
years of experience in a regional or territorial sales role, have a college
degree or equivalent industry/sales experience, great presentation and
communication skills, and have the ability to work flexible hours with
occasional overnight travel. Candidates should contact Jen Phillips at jen.phillips@genworth.com and
for more information on the company visit Genworth.
A Private Equity firm is
looking to acquire residential mortgage banking company.
All geographic locations will be considered, although Western
U.S.-based banker is preferred. Fannie, Freddie (seller/servicer) and
Ginnie Mae approvals are highly desirable but will also consider
candidates based on factors such as size, product mix, channel
diversity, etc. Principals only, and direct communication
with Seller required, and the buyer will execute appropriate NDA(s).
Please email mortgageacquisition@gmail.com for
more information and interest.
The big news for today comes
from HUD and the FHA, which has announced it will need a $1.7 billion bailout
from the Treasury to cover projected losses in its reverse mortgage programs
(currently at $5 billion). Plenty of industry observers
have been predicting this day. Federal Housing Administration Commissioner
Carole Galante told Congress in a letter that her agency will withdraw the
money from the Treasury before the fiscal year ends today, although
Congressional approval is not required. The FHA suffered big losses when many
reverse mortgage borrowers took large payments up-front and later ran into
financial problems, often due to falling home values during the financial
crisis. As we have all heard, the FHA is required by law to maintain reserves
equal to 2% of the total amount of home mortgages it insures. The 2% capital
reserve ratio is aimed at covering projected losses over the next 30 years in
the agency's Mutual Mortgage Insurance Fund.
Galante said her agency needs
more money from the Treasury now because higher interest rates have
discouraged borrowers and reduced loan volume for the FHA in recent months.
Of course, we're seeing that with the entire industry - and few can say that
they did not see the market (especially refis) tailing off as time went on.
About a year ago we had warnings about the FHA's finances when an independent
audit showed an estimated $16 billion in losses. But the agency's finances
have since improved due to changes the FHA has made, including insurance
premium increases and changes to the reverse mortgage program. Improvements
in the housing market have also helped boost the agency's finances. And
Republicans have complained that the FHA contributed to the housing meltdown
by providing loans to many unqualified borrowers who ended up defaulting.
They have called for ending the FHA's backing of reverse mortgages and for
limiting the agency's role in the housing market. In fact, House Financial
Services Committee Chairman Jeb Hensarling, R-Texas, is pushing a housing
finance overhaul bill that includes a provision that would limit the FHA to
insuring loans only for first-time and lower-income borrowers.
With all the transition going
on in the industry, especially with loan officers, here is an interesting
question I received last week. "What is the law regarding paying loan
officers on deals they sourced and originated but the LO leaves to another
company prior to funding. Is the LO still legally due their
commissions?" I am not sure that there is "a law," and from
what I understand it will depend on the agreement that the LO signed with the
company. But this does lead to a related topic...
Here is a different note: "When
a LO or a company joins a platform and later leaves that company, should the
LO be able to have access to their data if the data is self-generated and not
company supplied? I believe that it's an industry standard that when an
originator terminates from their company (banker, broker, bank) that they
should be entitled to all regulatory compliant data, meaning, all client
lists for marketing purposes. Some believe otherwise, but only if you are a
top producer. I do believe it's an industry standard that originators have
'Point Central' downloaded on their laptops and retain 'all' client data when
moving from company to company. The Point files are essentially their
entire business careers wrapped into one hard drive. Is a company entitled to
this data for a self-generating originator?"
While some companies state any
and all data/information obtained "on their clock" is theirs and
not the LO's, many lender's view is that the originator has the relationship
with their customers and to that end, all contact information (the
"database") is theirs to keep/take. One seasoned veteran told me
that the "big guys" are more protective of data which was added or
changed during an LO's tenure at the particular institution, even if it was
the adding of customer contacts or prospects.
And Kurt Reisig, the CEO of
American Pacific Mortgage Corp. in California, writes, "Questions like
these really point to the overall culture of the company. While all
companies should look at how they define this so as not to break any
regulations regarding the handling of consumer data, any prudent LO should
look carefully at their employment agreements and/or branch operations
agreements before joining a firm. Unfortunately for many producers, we
have observed over the years that client data for any purposes is often
retained by the employer, sometimes rather sneakily. In recent years, the
proliferation of 'retail' by banks, call center operators and larger mortgage
banks who covet data ownership over originator rights has left many a loan
officer fighting for her client data. Legally, all that matters is the
agreement. Philosophically the company 'attitude' is nearly as
important. A little due diligence goes a long way - the best way to
find out how a company acts is to ask around."
And a follow up question dealt
with ownership and freedom. "If a branch joins a larger banking
platform/branch, and later terminates, how does this 'divorce' get separated?
For example, one would hope that if the smaller branch has been in business
for many years and joins a larger banking platform and later leaves, they
would be able to leave in a civilized, well-thought out manner. But I have
seen examples of the larger banking company 'cutting the head off the snake,'
occupying the lease for 30 days (which is standard compliant method of
leasing) only to tarnish the names of the branch managers, and offering great
terms for LOs electing to remain. Is this legitimate? It seems like it is,
but only if the branch managers didn't pay attention to their contracts,
especially the solicitation or non-solicitation of their own people.
Contracts need to be taken seriously. If any branch is looking to join a
banker, they had better think twice before signing their 'best china'
away."
Once again, Mr. Reisig from APM
writes, "This gets to the core of a company culture and one that can be
answered by due diligence on agreements and past business practices. Recently,
since the market shift, we have also seen a spike in the aforementioned
practice by some large operators. Whether they are desperate for
production or simply have a 'fatal attraction' complex, it is
categorically and ethically wrong for them to pursue the 'assets' of any
branch or originator that chooses to leave. That said, it does happen and
the best defense is a fair contract. Additionally, the best course is to
conduct oneself with utmost integrity and adherence to the contract.
Companies have a right to an open pipeline in a branch and a right to assure
that operations are wrapped up in a way that leaves the company without an
operational loss as the separation is completed. We counsel those who join us
to adhere to their contracts and take the high road at every juncture,
basically asking people who join us to treat their former employer in the
same way we would hope to be treated in those occasions an originator leaves
our company. In a nutshell what I tell producers is to conduct as much
due diligence as possible on a firm they join....at least as many hours as it
takes to originate and close a loan...which is a lot!" Thank you Kurt!
The focus continues to be on
the government shutdown. For example, Guild Mortgage alerted its
clients, "In anticipation of a possible federal government shutdown it
is advised that you complete the following to the extent possible prior to
October 1: execute 4506T IRS transcript requests; run CAIVR's and LDP/GSA
searches; complete SSI validations; request FHA and VA case numbers;
etc."
CNN tells the public about the
impact of a government shutdown here.
And on Friday Dave Stevens,
president of the MBA, wrote, "As Congress continues to negotiate
legislation to fund the federal government in FY2014, federal agencies are
preparing for the possibility of a government shutdown when the current
continuing resolution expires at midnight on Monday, September 30, 2013. If
the House and Senate are unable to resolve their differences by the midnight
deadline, there will be a shutdown that will furlough certain federal
employees and cause a significant curtailment of operations at several
federal agencies. It is difficult to quantify all of the impacts of a
government shutdown. However, lenders processing loans that need tax
transcripts, social security number verification, or FHA loans, should
anticipate delays and reduced functionality from HUD, IRS, and the Social
Security Administration. A shutdown lasting a few days would slightly
inconvenience lenders in processing loans; however a longer delay would have
more serious impacts. Purchase loan volume could shrink and impede the
recovery of the housing market. Additionally, long-term furloughs may disrupt
time-sensitive mortgage transaction deals by interfering with borrower lock
agreements and causing interest rate disparities from the time of closing to
the time the loan is securitized. MBA has prepared a detailed analysis of how we
expect many government agencies and other entities integral to real estate
finance may be affected by a shutdown. MBA will keep you informed in the days
ahead during this fluid situation. Please don't hesitate to contact me with
any questions."
But we do have some news this
week! Today we'll have the Chicago PMI, tomorrow an ISM Manufacturing Index
number, Thursday is the usual Jobless Claims, and on Friday are the
unemployment numbers. For now, rates are pretty quiet with the 10-yr sitting
around 2.60%.
The American Medical
Association weighs in on ObamaCARE!
The American Medical
Association has weighed in on Obama's new health care package. The Allergists
were in favor of scratching it, but the Dermatologists advised not to make
any rash moves. The Gastroenterologists had sort of a gut feeling about it,
but the Neurologists thought the Administration had a lot of nerve.
Meanwhile, Obstetricians felt certain everyone was laboring under a
misconception, while the Ophthalmologists considered the idea shortsighted.
Pathologists yelled, "Over my dead body!" while the Pediatricians
said, "Oh, grow up!" The Psychiatrists thought the whole idea was
madness, while the Radiologists could see right through it. Surgeons decided
to wash their hands of the whole thing and the Internists claimed it would
indeed be a bitter pill to swallow. The Plastic Surgeons opined that this
proposal would "put a whole new face on the matter". The
Podiatrists thought it was a step forward, but the Urologists were pissed off
at the whole idea. Anesthesiologists thought the whole idea was a gas, and
those lofty Cardiologists didn't have the heart to say no. In the end, the
Proctologists won out, leaving the entire decision up to the a****es in
Washington.
If you're interested, visit my
twice-a-month blog at the STRATMOR Group web site located at www.stratmorgroup.com. The current blog is,
"Reverse Mortgages: Companies Need to Know What is Changing". 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 (Check out http://www.mortgagenewsdaily.com/channels/pipelinepress/default.aspx or www.TheBasisPoint.com/category/daily-basis. For archived commentaries or to subscribe, go to www.robchrisman.com. Copyright 2013 Chrisman LLC. All rights reserved. Occasional paid job listings 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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Global Home Finance Inc is saving Texas One Home Owner At a Time. We offer Conventional, FHA, VA, Jumbo, and USDA Rural Development products to help refinance or purchase a home. Visit us online: http://globalhomefinance.com
Monday, September 30, 2013
Mortgage Jobs and Oppurtunities
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