Product News, Training & Events, Bank News & Underwriting Changes

By rchrisman@robchrisman.com

What did the famous musician say the moment he was born?

"I'LL BE BACH!"

Happy 121416, by the way, in the United States. Plenty of potential home buyers are still paying rent. You're probably working in an office where the landlord earns rent from your company. When I play Monopoly and I land on someone's property, I owe them rent. My cat Myrtle often demands I pay rent, even though she's not on title. As it turns out, even when a plane from one country flies over another country, it owes rent! But of more interest to lenders and real estate agents is that for a typical family 28 percent of income goes towards rent as of 2014.

 And in product news FormFree and Floify announced a partnership that integrates FormFree's AccountChek asset verification solution with Floify's mortgage automation technology platform. The partnership enables lenders to request, analyze and certify a borrower's financial data directly from their Floify account. Automated asset verification streamlines the mortgage underwriting process for both borrowers and lenders, who together make up Floify's 90,000 registered users. Fannie Mae recently named AccountChek by FormFree its first designated vendor for asset verification, and the software is the only patented, third-party solution approved by leading investors to deliver automated asset verification data and reports. "Lenders rely on us to help them scale loan production from origination to close and deliver that ability with the highest level of security and compliance," stated Dave Sims, Floify's founder and CEO. "The partnership with FormFree reflects our commitment to innovative products that help build trust between lenders and borrowers."

 There are some upcoming events of note.

 Your borrowers spend a lot of time on Facebook, yet most MLOs lack the skills to turn Facebook into a lead machine. Join National Mortgage Professional Magazine and Jason Lutz from TBWS Group for a complimentary NMP Webinar where you can learn How to Get Referrals from Facebook Without Begging or Annoying Your Friends and Followers. This takes place on Thursday, December 15, at 2PM ET, 11AM PT. "During this webinar, we'll show you proven strategies to get social media referrals without selling. Nothing worse than that guy on Facebook that is constantly selling their product or service. I know you've got one of those friends. Sign-up for this free webinar here."

 Colorado's Peoples National Bank is hosting its 3^rd annual sales summit for loan originators and real estate agents: the 2017 Colorado Mortgage & Real Estate Summit. "Understand the issues, changing laws, economic housing and interest rate forecasts affecting the real estate and residential lending industry in Colorado and at the national level. Learn innovative strategies and tactics to increase your business in 2017." Join speakers Eliot Eisenberg, Sue Woodard, Steve Richman, and myself on Wednesday, January 18^th, in Glendale, CO. Admission is free but you must pre-register here.

 U.S. Bank posted a lender operation update in reference to SAFE Act reminders. U.S. Bank Home Mortgage is allowing its non-delegated correspondent clients to order their own MI certs prior to submission for underwriting. Clients are required to submit file documents to the preferred MI provider rather than use the MI Delegation. The MI Cert must be ordered using the clients specific Master Policy or Agreement with the chosen MI provider. The MI compliance underwriting decision and Commitment/Certificate must be in the UW package delivered to USBHM for full review. USBHM underwriting will determine if coverage is acceptable based on its underwriting guidelines.

 Fifth Third Correspondent Lending posted that The Interest Credit Limitation has been increased from 5 to 7 days. Regarding Incomplete Improvements, if there is no cost of the incomplete improvement(s) provided (e.g. sales contract or new construction change orders), value of the incomplete improvement(s) may be documented with one of the following: Invoices or contractual bids for material and/or installation OR Builder provided cost if improvement(s) were included.

 Flagstar's Lending Service Center aids with Flagstar's Wholesale Technologies as well as act as the liaison between the sales staff, wholesale customers, and other departments within the bank.

 From December 1st--December 28th, NYCB Table Funding Clients may submit a change to their Lender Paid Compensation Election Percentage on file with NYCB's Client Management Department. 

 NYCB Mortgage has updated its Mortgagee Clause for property & flood insurance effective immediately. If the certificate and/or mortgagee clause does not read as below, the Client must include a copy of the letter requesting the change in mortgagee. (All States except Texas: New York Community Bank Its Successors And/Or Assigns, Insurance Center, P.O. Box 5932, Troy, MI 48007-5932 Re: Loan Number XXXXXX. And in Texas: New York Community Bank Insurance Center, P.O. Box 5932, Troy, MI 48007-5932 Re: Loan Number XXXXXX.)

 Citi loans locked on or after December 9^th, are subject to updates to its Community Reinvestment Act (CRA) Premium Schedule, resulting in the elimination of CRA Premiums for some MSAs. The complete updated CRA Premium Schedule is shown on page 8 of its Rate Sheet and is also posted on Agentsite under the Resources tab.

 Wells Fargo Funding will now allow individual (borrower-maintained) flood insurance policies for Non-Conforming Loans secured by 2- to 4-unit, horizontal (non-stacked), condominiums.; and has expanded its current Home Opportunities eligibility for ARM Loans to include 3- to 4- unit properties.

 U.S. Bank Home Mortgage spread the word that its Project Approval Department (PAD) has three types of condominium project reviews for portfolio loans. The three project review options are: #1: The project is currently listed as approved on the Reviewed Project List published on the Seller Guide. #2: A full review of the project documentation has been submitted to the Project Approval Department (PAD). PAD will determine eligibility and place the project on the Reviewed Project List. #3: The project has an expedited or streamlined review. The current process has been updated to address bank requirements when the project is not on the Reviewed Project List as approved (option 1) or a full review is not submitted (option 2).

 Turning to the bond markets, the U.S. Treasury yield curve flattened Tuesday. That means that either short term rates went up, long term rates went down, or some combination offered. In this case, long term rates dropped a little as the 30-year bond auction came in better than expected. As a proxy for interest rates everywhere, the 10-year's yield declined to 2.44% but then bounced a little higher and ended the day unchanged at 2.48%.

 That was all so... yesterday. Today we've had the MBA's weekly mortgage application survey from last week (-4%, purchases -3%), the Producer Price Index (+.4%, core +.4%, high), and Retail Sales (+.1%, ex-auto +.2%, lower than expected). Coming up is the Industrial Production and Capacity Utilization duo for November, along with Business Inventories. In the early going the 10-year is yielding 2.44% and agency MBS prices are better by .125-.250 versus yesterday's close.

 But the big news is the announcement from the FOMC (Federal Open Market Committee) followed by 2:30PM ET's Chair Yellen post-meeting press conference. At this point the market will be stunned if the Fed does not raise Fed Funds to a target range to 50bp to 75bp. But everyone will be looking at the statement to see if there are any changes.