Most
people in the mortgage industry tend to look to the future. But sometimes aging
mortgage folks get together and play the "Whatever happened to..."
game - often at conferences when they run into people they haven't seen in
year. This website, in its May 1 post,
may answer several of those questions regarding IndyMac, Mike Perry, OneWest,
etc..
The
wholesale market is alive and well. Steve Samuelson (steve@nrpros.com) from Network
Recruiters writes, "We have been surprised by the number of
wholesalers in the market and the increased hiring activity on the employer
side. Wholesalers offering all three channels are highly sought after by
seasoned AEs, and they are telling us what we all assumed: straight wholesale
accounts are dwindling, mini-corr and especially delegated correspondent
accounts are the future for AEs. AE volume is down nationwide and $5
million per month seems to be a good number right now." (In response,
Network Recruiters has
recently expanded its Wholesale Recruiting Platform by adding new wholesale
recruiting contracts and offering our clients more career options. We are
proud to work with many of the top Wholesale Mortgage Banks in the country.
Since 1997, Network Recruiters has helped candidates find their first AE
positions, upgrade and ultimately reach sales management & executive
positions in the industry. Network is hunting for candidates for wholesale
positions in Northern California, Northwest Regional Manager, Texas
Regional Manager, Area Sales Manager positions available in the Northeast,
Midwest and Southwest, and Mini Correspondent, Correspondent and Wholesale
Account Executive positions nationwide.)
What
does Mel Watt have to say about the FHFA's core mission? Here you go: OverAndAboveMerelyStayingInBusiness. It
is worth a skim, and perhaps some can read between the lines about his opinion
of Freddie & Fannie.
The mission of the Agencies is
very important, and impacts the entire nation, but what unfortunately grabbed
headlines was that Richard Hornsby - the chief operating officer of the Federal
Housing Finance Agency - might face a felony charge after he allegedly
threatened Ed DeMarco - the former acting director - last week. Per the WSJ, he
"was charged last Wednesday with one felony count of threatening to kidnap
or injure a person, according to court records. He was ordered to stay away
from the FHFA and from former FHFA acting director Edward DeMarco, who retired
from the agency last week, according to court records. Apparently Mr. Hornsby
didn't like his job performance ratings. Okay, let's move along - nothing to
see here (I hope).
Let's
keep on with some investor and agency updates. But first, there sure is a
lot of chatter about 3% down payment loans. I guess with housing
appreciating, no one worries about 97% down payment loans anymore? TD
Ameritrade is out there with its program for low- and moderate-income borrowers
via its Right Step program, per the WSJ. (The program is reserved for borrowers
who earn up to 80% of the median area income as determined by HUD, doesn't
require private mortgage insurance, it is a portfolio product, and the 3%
supposedly can come in the form of a gift from family or a non-profit. What the
heck?) Arlington Community Federal Credit Union in Virginia is rumored to be
next, and let's not forget Wells Fargo's retail program that requires a five
percent minimum down payment for primary residential purchases but allows up to
two percent of that to come in the form of a gift from relatives. But before
every LO out there is calling their Capital Markets folks, remember that the
prices are higher, and underwriting tougher, for all of these.
Carrington has
expanded its Government guidelines to permit FICOs down to 550 on FHA, VA, and
USDA. On FHA purchases, 90% LTVs will be allowed for FICOs as low as 550
and 96.5% LTVs will be allowed for scores down to 580. FHA cash-out refis
are available for LTVs up to 85% on FICOs down to 550 as well.
United Guaranty is now
considering loans with gifts/grants that satisfy the minimum borrower
contribution and property flips where the seller has owned the property for
less than 180 days to be eligible for RAP submission. Guidance on ARM
interest rate adjustment periods, ARM caps, Balloons, and Bi-weekly mortgages
has also been added to allow for Non-Agency products to be submitted as
well. Requirements for condo investor concentration, construction-to-permanent
loans, and renovation mortgages have been revised to align with Agency
guidelines, and the UG guide now includes a clarification of DU and LP
tolerance.
Cole Taylor Mortgage (CTM)
announced their position on tax returns and 4506T requirements. For non-self-employed
borrower's 2013 tax returns when the 4506T shows no record found, as long as
the borrower(s) W-2s and paystub(s), with current year-to-date earnings, and
the income is consistent with prior year earnings, no additional information
will be needed. CTM will require the most recent two (2) years of tax
transcripts available. For all self-employed borrowers, CTM will require either
their 2013 tax returns or evidence of their extension.
HUD
Secretary Shaun Donovan announced last week that HUD will speed federal disaster assistance to the state of
Arkansas and provide support to homeowners and low-income renters
forced from their homes following severe storms, tornadoes and flooding. HUD is
offering the State of Arkansas the ability to re-allocate existing federal resources
toward disaster relief; granting immediate foreclosure relief; making mortgage
insurance available; making insurance available for home rehabilitation; and
offering Section 108 loan guarantee assistance.
Tuesday was an exciting day.
Okay, maybe not that exciting. But we had a little rally (the 10-yr T-note
improved about .125, and agency current coupon MBS improved a shade more) which
is fine. It continues to be of great interest to many that the forecasters
pretty much agreed that rates were heading higher this year. Rates are down on
the year - but that could change in a matter of days. The Fed's tapering off
of its asset purchases is already priced into the market; what are not priced
in are events overseas and indications here in the States that our economy is
merely grinding along.
Today
we'll have testimony from Federal Reserve Chair Yellen on "The Economic
Outlook" before the Joint Economic Committee beginning at 10AM EST. Maybe
we'll learn more about what the Fed might do when it stops buying MBS and
Treasuries. And let's all chip together and buy a chunk of the $24 billion
10-year Treasury note auction at 1PM EST. Ahead of that, in the early morning
we'll have the MBA's app numbers as well as preliminary Q1 Productivity (-1.0
expected) and Unit Labor Costs (+2.5). Yesterday the 10-yr closed at 2.60%
and in the early going we're at 2.58% and agency MBS prices are a hair better.
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