(This is making its way around internet, but there is nothing whatsoever to suggest that this really happened. It's fun nonetheless, however.)
When Gandhi was studying law at University College, London, a Caucasian professor, whose last name was Peters, disliked him intensely and always displayed prejudice and animosity towards him. Also, because Gandhi never lowered his head when addressing him, as he expected, there were always arguments and confrontations.
One day, Mr. Peters was having lunch at the dining room of the University, and Gandhi came along with his tray and sat next to the professor. The professor said, "Mr. Gandhi, you do not understand. A pig and a bird do not sit together to eat."
Gandhi looked at him as a parent would a rude child and calmly replied, "You do not worry professor. I'll fly away," and he went and sat at another table. Mr. Peters, reddened with rage, decided to take revenge on the next test paper, but Gandhi responded brilliantly to all questions.
Mr. Peters, unhappy and frustrated, asked him the following question. "Mr. Gandhi, if you were walking down the street and found a package, and within was a bag of wisdom and another bag with a lot of money, which one would you take?"
Without hesitating, Gandhi responded, "The one with the money, of course."
Mr. Peters, smiling sarcastically, said, "I, in your place, would have taken wisdom, don't you think?"
Gandhi shrugged indifferently and responded, "Each one takes what he doesn't have."
Mr. Peters, by this time was beside himself and so great was his anger that he wrote on Gandhi's exam sheet the word "idiot" and gave it to Gandhi. Gandhi took the exam sheet and sat down at his desk trying very hard to remain calm while he contemplated his next move.
A few minutes later, Gandhi got up, went to the professor and said to him in a dignified but sarcastically polite tone, "Mr. Peters, you signed the sheet, but you did not give me the grade."
Wit always wins over anger.
I recently heard a CEO say, "I am fine competing on
product, price, and service. But we shouldn't have to compete on subjective
interpretations of rules, regulations, and compliance issues." While
residential lenders wait for another "instructive" public enforcement
action (plenty of them are negotiated privately with no fanfare), you can
always see past publicized actions here or for something meatier and
useful here are the CFPB's Supervisory Highlights. (For example, pages 5, 6, &
7 address underwriting borrowers on assets & down payment size and not
income under the ATR rules.)
FHA & VA trends & program changes
from around the industrySome originators will say that the FHA program is the "new" subprime channel - certainly the program appeals to lenders who like the profit margins, and it appeals to borrowers new to home ownership and who may not have the necessary down payment for other programs. Good LOs have a sense of demographics & population trends, and as it turns out, for the first time in a decade, more new U.S. households in the first quarter chose to buy homes than to rent, suggesting a long-term decline in home-ownership rates might be coming to an end
Following the Office of Management and Budget (OMB) approval received April 6, 2017, the Federal Housing Administration's Office of Single Family Housing issued updated forms in HUD's Client Information Policy Systems (HUDCLIPS)Form Library on HUD.gov that support its Claims and Disposition policy located in the FHA Single Family Housing Policy Handbook 4000.1 (SF Handbook), Section IV.B.2. The following list of forms, which expire April 30, 2020, are for immediate use: The forms were listed in HUD's 30-Day Notice of Proposed Information Collection (FR-5997-N-05) published in the Federal Register on February 1, 2017. The forms, which expire April 30, 2020, are posted on the Forms Resource pages on HUD.gov.
Beginning today, May 22nd, M&T Bank is changing its FHA and VA FICO adjustment in the Correspondent Channel. Also, M&T is increasing the FHA Best Effort Special from .200 to +.250 for all eligible loans above $250,000. The Best Effort special will also be extended to VA loans apart from VA IRRRLs.
Royal Pacific Funding has expanded its High Balance Government Loans down to a 580 FICO. Available for single-family, condos, PUDs & multi-family homes. Maximum loan amounts vary by county, call for full details.
Mountain West Financial announced the rollout of the Golden State Finance Authority (GSFA) Platinum Grant program for its wholesale customers. This is available for both conventional and FHA loans in the State of California. Some of the great features of this program are: a non-repayable grant for down payment and/or closing costs up to 5% of the first mortgage loan amount; not limited to first time home buyers; minimum FICO of 640, and is available for refinancing too. The home must be a primary residence and income restrictions do apply.
Sun West has Streamlined Underwriting and Expanded Policies for FHA Loans with FICOs Below 640. It has created a set of Comprehensive Credit Review Guidelines to assist in the substantive review of these borrowers. If the loan has a DU Approval or an LPA Accept (i.e. FHA Total Score Card), Sun West will continue to rely upon the automated approval along with the Comprehensive Credit Review Guidelines to evaluate the borrower's special circumstances.
Capital markets
Things were quiet on Friday, apparently warming up for this week, so I won't waste your time writing too much about the bond market. In fact, the 10-year yield spent the whole New York session confined to a 2.5bp range with the modest flattening of the yield curve at the open pared by the close. And there were some slight movements between coupons, securities, and maturities - but nothing to write home about. By the close of business on Friday the 10-year & 5-year Treasuries, along with agency MBS prices, had worsened a few ticks - certainly less than .125.
While the press is focused on President Trump's first official overseas trip since his inauguration starting in Saudi Arabia, this week's economic calendar includes a central bank decision from the Bank of Canada and the minutes from the Fed's May 3 decision. Today we had the Chicago Fed's National Activity Index for April (.49, higher than expected) - not a big market mover.
Things pick up a little tomorrow with New Home Sales. Wednesday, we can look forward to the MBA's survey numbers for applications last week, the FHFA House Price Index, some Markit manufacturing numbers - whatever they are, Existing Home Sales, and the FOMC minutes from the 5/3 meeting. Thursday are some trade numbers, the usual initial jobless claims. Friday, ahead of the holiday weekend, are GDP, Personal Consumption Expenditures, and a volley of University of Michigan numbers. We start the week with rates a smidge higher compared to Friday afternoon with the 10-year yielding 2.25% and MBS prices worse a few ticks (32nds).
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