(Thanks to Brian M. for this one.)
An Arab Sheikh was admitted to a hospital
for heart surgery, but prior to the surgery, the doctors needed to have some of
his blood type stored in case the need arose.
As the gentleman had an extremely rare type
of blood that couldn't be found locally, the call went out around the world.
Finally, a Scotsman was located who had the
same rare blood type. After some coaxing, the Scot donated his blood for the
Arab.
After the surgery, the Arab sent the
Scotsman a new BMW, a diamond necklace for his wife, and $100,000 U.S. dollars
in appreciation for the blood donation.
A few months later, the Arab had to undergo
a corrective surgery procedure.
Once again, his doctor telephoned the
Scotsman who this time was more than happy to donate his blood.
After the second surgery, the Arab sent the
Scotsman a thank-you card and a box of Sees chocolates.
The Scotsman was shocked that the Arab did
not reciprocate his kind gesture as he had anticipated. He phoned the Arab and
asked him, "I thought you would be more generous than that...last time you
sent me a BMW, diamonds and money, but this time you only sent me a lousy
thank-you card and a lousy box of chocolates?"
To this the Arab replied: "Aye laddie,
but I now have Scottish blood in me veins"
Economists, like royal children, are not punished for their
errors. Data revision can be a career strategy for some, and certainly some
companies wish they could revise data occasionally - especially lenders in the
first quarter. Given recent data, here's one analyst who believes it will be tough sledding for Impac, for example.
In other news, many in the industry are watching Congress'
moves. Recently H.R. 10, the Financial CHOICE Act introduced by House
Financial Services Committee Chairman Jeb Hensarling, R-Texas, obtained enough
votes to move the bill on to the House of Representatives floor. The Act seeks
to rollback or modify many of the regulatory and supervisory
requirements imposed by the Dodd-Frank Act.
New government products and pricing
JMAC Lending is offering a .25% price improvement
on all FHA and VA loan products for wholesale and correspondent business. The
rate must lock by June 30, 2017. Borrowers need a 620 FICO to qualify for
the price improvement (JMAC does go down to 580 FICO). "JMAC's government
lending features manual underwriting, fast closing (15-days or faster), plus
the opportunity to talk directly to the underwriter. Visit www.JMACLending.com for more info."
NYCB Mortgage has posted an updated FHA Case Number
Assignment form for its Table Funding Clients. This updated version of the form
is required when requesting new FHA Case Numbers and FHA Case Number Transfers.
This form is required for NYCB to initiate the underwriting of an FHA loan, so
be sure to upload the form along with other required underwriting documentation
(asset documentation as required by AU Findings, income documentation as
required by AU Findings, 1003, and Purchase Agreement if applicable).
Royal Pacific Funding has reduced its
Non-California Lender fee to $795.00. It has also added 600 FICO High Balance
availability on FHA/VA including Cash Out.
FHA launched its improved lender list search
capability from a new HUD Lender List Search web page on HUD.gov. From this page,
the public can search for HUD-approved Single Family and/or Multifamily
lenders, using a variety of criteria. The new HUD Lender List Search page
replaces the previous Lender List lookup page on HUD.gov. While search criteria
have not changed, users will notice improved performance and quicker response
times when using the new search capability.
If you're a broker and have you been looking for a jumbo
80/10/10 product, contact Sierra Pacific's AE Kelly Brown for details.
NewLeaf Wholesale updated its NewLeaf Asset
Depletion, Residual Income and Jumbo 90% LTV No MI Product Matrices.
Speaking of which, what is the news out there in down
payment and LTV land?
Down payment assistance programs are helping middle class
families buy homes in hot markets. Mortgage credit certificates become more
popular and imaginary barriers hold back buyers. The February Down Payment Report, covering news and data on
residential down payments, is now available.
Pacific Union Financial announced the launch
of PacificPlus, the latest nationwide mortgage program with +Plus down payment protection by ValueInsured embedded directly into the mortgage loan. With
PacificPlus, homebuyers can safeguard their down payment and buy with
confidence. Even if they need to move and real estate market values are down
when they sell, up to the full amount of their down payment may be covered and,
if all program requirements are met, any potential loss would be reimbursed.
Atlanta-based Down Payment Resource (DPR), the nationwide databank for homebuyer programs, and
the New York State Association of Realtors announced a new down payment
program search tool for NYSAR members. "The online resource will allow
New York State's Realtors to search and review eligibility and benefit details
of all homeownership programs in New York, helping connect their buyers with
available programs. Down Payment Resource's database uses a proprietary rules
engine that automates the process of matching eligible borrowers with
affordable lending programs, including down payment assistance, grants,
Mortgage Credit Certificates and more. DPR tracks 2,400 programs nationwide,
including 100 programs spanning New York City to central and western New
York."
Per FAMC National Correspondent's recent update,
properties that have been listed for sale must be taken off the market on or
before the disbursement date of the new loan and follow the applicable program
LTV/CLTV/HCLTV ratios. The previous requirement was 6 months before the
disbursement date of the new loan and limited the LTV/CLTV/HCLTV to the lesser
of the program requirement or 70%. In addition, all outstanding student loans
require a monthly payment to be included in the borrower's monthly debt
obligation, regardless of repayment status. The monthly payment reflected on
the credit report may be utilized for qualifying purposes. If there is no
payment indicated for the student loan, or if the credit report shows $0 as the
monthly payment, the qualifying payment MUST be calculated using one of the
following options: 1% of the outstanding student loan balance (even if this
amount is lower than the actual fully amortizing payment), OR A fully
amortizing payment using the documented loan repayment terms.
Capital markets
Yield curve update? As Treasury yields rose after the
election, then fell again, and have recently moved slightly higher, the gap
between two- and 10-year notes has settled to pre-election levels of 1.04
percentage points as the market's expectations for economic growth and
inflation drop.
Looking back to Friday, the bond markets were certainly
influenced by the weak Retail Sales and Consumer Price Index reports for
April... does our economy need, or can it absorb, two more rate hikes this
year? Especially if they're combined with a tapering of the Fed buying MBS?
Consumer spending, however, is clearly on a path toward being a much better
contributor to second quarter real GDP growth than it was in the first quarter.
And consumer inflation pressures moderated a bit in April. (That won't change
the thinking that the Fed will raise rates at its June meeting, yet it will
temper concerns about the Fed possibly needing to be more aggressive with its
rate hikes.) Rates headed lower with the 10-year's yield hitting 2.32% although
it closed at 2.33% and its price improving nearly .625 better than Thursday's
close. As usual, the 5-year T-note and agency MBS prices lagged somewhat,
improving .250-.375 depending on coupon, security, and maturity.
Overseas fun? Early last week the financial markets were
breathing a big sigh of relief with the results from the French elections,
which produced a lopsided victory for the establishment (i.e., pro-European
Union) candidate, Emmanuel Macron, versus the extreme right candidate, Marine
Le Pen. One less thing to worry about.
Looking at this week... there isn't much at which to look
for scheduled news. And who knows what will come out of the White House? Expect
volatility to remain low - which is fine with most folks. This morning we'll
have the Empire State Manufacturing Survey (May) at 8:30am ET, along with the
NAHB Housing Market Index for May. Tuesday are Housing Starts & Building
Permits for April and Industrial Production and Capacity Utilization for April.
Wednesday is only the MBA's Mortgage Applications Index. Thursday are Initial
Jobless Claims, the Philadelphia Fed Index, and Leading Economic Indicators.
Friday is zip.
The Comey fallout continues although the narrative around
the Trump/Ryan pro-growth agenda isn't changing dramatically. In the early
going, pre-numbers, we find the 10-year yielding 2.33% and agency MBS prices
roughly unchanged versus Friday night, so rates haven't done much since the end
of last week.
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