For bank closures on Friday, and I am simplifying things, in NC the
depositors of
Blue Ridge Savings Bank were warmly embraced by Bank of North Carolina,
First State
Bank (NJ) became part of Northfield Bank (NY), and the depositors of Country
Bank
(IL) will receive new checks with Blackhawk Bank & Trust on them. And down
in Georgia
Piedmont Community Bank is now part State Bank and Trust Company. Six banks
were
closed by the FDIC in September for a total of 74 in the year to date
according
to information released today by Trepp, which provides CMBS and commercial
mortgage
information, to the financial services industry. At the current pace 100
will be
closed this year, better than the 160 banks the FDIC closed due to
insolvency in
2010 or the 139 that failed in 2009. According to Trepp, loans tied to real
estate
were virtually the sole source of the failures: commercial real estate loans
accounted
for 82% of the nonperforming loans at the failed banks.
An expanding mortgage bank with a nationwide footprint is searching for
Senior Vice
President to head up National Production. The lender is 12 years old and is
licensed
in states coast to coast. The Denver-based company seeks qualified,
experienced,
candidates will have demonstrated a history of building production, and
have strong
knowledge of product, underwriting, financials, and marketing. The banker
has a
very good reputation among investors and originators - if you know of
anyone out
looking or if you're a branch looking for a quality company, send me your
resume:
Anyone with flood insurance questions may want to scan the document put out
by several
federal agencies that updates the Interagency Questions and Answers
Regarding Flood
Insurance. "The guidance finalizes two questions and answers that had been
previously
proposed. The first relates to insurable value. The second relates to force
placement
of flood insurance. The agencies withdrew another question regarding
insurable value."
See it at: HellorHighWater
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108173732951&s=8721&e=001fxHH-0
9gZjarW7AZXAFC25YHcAwfAX7810nMnyD9amRzQM-XydqMcVCjOS9eIoux6KfwfsceiJTIJYyALB
Tr5hCjNFrP5dcRNi4nj2umps1EeAFDq0B3zKLz8Zoeiyvf4_rq3zdkVSqueKk392buPL7AkhOxXq
8TRi_pGDPbAK4pCX7LkqAVVg==].
RealtyTrac has released its U.S. Foreclosure Market Report for the third
quarter
of 2011, which shows foreclosure filings-default notices, scheduled
auctions and
real estate-owned (REO) properties-were reported on 610,337 properties in
the third
quarter, an increase of less than 1% from the previous quarter and a
decrease of
34% from the third quarter of 2010. The report shows one in every 213 U.S.
housing
units with a foreclosure filing during the quarter. Before you break out the
party
hats, "U.S. foreclosure activity has been mired down since October of last
year,
when the robo-signing controversy sparked a flurry of investigations into
lender
foreclosure procedures and paperwork," said James Saccacio, CEO of
RealtyTrac. "While
foreclosure activity in September and the third quarter continued to
register well
below levels from a year ago, there is evidence that this temporary downward
trend
is about to change direction, with foreclosure activity slowly beginning to
ramp
back up."
Folks wonder why servicing values are higher in one state than another. U.S.
properties
foreclosed in the third quarter took an average of 336 days to complete the
foreclosure
process, up from 318 days in the second quarter and the highest number of
days going
back to the first quarter of 2007. New York properties foreclosed in the
third quarter
took an average of 986 days to complete the foreclosure process. The second
longest
average foreclosure process was in New Jersey, at 974 days, and the third
longest
average foreclosure process was in Florida, at 749 days. The Great State of
Texas,
who has not threatened to secede yet this week, had the shortest average
foreclosure
process of any state, at 86 days.
Do away with the U.S. Government backing mortgage securities? "Think again,"
said
trade groups and investors before a House subcommittee. Proponents of
private money,
however, believe that the U.S. mortgage market would not lose funding from
foreign
investors if the government stops backing mortgage bonds:
PrivateMoneySavetheDay?
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108173732951&s=8721&e=001fxHH-0
9gZjZdMSOc85GNANpA_kmQYerOQOC6u9cy31MmHXLxe5UggoPTDaPg1TlDzWFCjBsp5EbFALGhdO
8zHkwLy8CJvteJ4smmwzYCxecTVIQH7brVQn_PqLabP7XluyF41He310ADtGNeORydCF5cxlEO3R
2CRXdUhQ-0973OO31Xbdc-Rl4SduM68gm8b0-TElWG3pHxstiX3KbTdqZVhNyHJeC7]
Government officials of various shapes and sizes are considering a program
to draw
private investment back into the mortgage market by having Fannie Mae and
Freddie
Mac sell slices of securities that wouldn't carry a federal guarantee but
would
pay a higher interest rate than current mortgage-backed bonds. The cost of
the higher
rate, of course, will be borne by the borrower. 5% or 10% of a bond issued
by Fannie
or Freddie would be sold without a federal guarantee. Not such a bad idea
and investors
in this "first loss" position would take on an additional risk of absorbing
losses
but would receive a higher interest rate. But don't look for too much
exciting from
Congress in this area ahead of the election 13 months from now - but FHFA
may do
a little pilot program on its own.
By the way, if you want to see what kind of mortgage-backed securities the
Fed is
buying, go to: NYFedMBS
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108173732951&s=8721&e=001fxHH-0
9gZjYXsRIaHu2YmJ-eGp51JVdTQSk48yGBSEGEf9VL1auhiSx4pPxiO-1Uc4vW9WC9o4HqC8cGVE
SSMM5LZGCRM5D5dgFoqL9kcy0qaRHMqqNpqHNlBP_sVswqHEkNkdZf52A=].
Its activities directly impact the demand for mortgages, which impact rate
sheets
across the nation. The Fed released its weekly report on MBS purchases made
over
the past week. From October 6 through 12, the Fed bought $5.2 billion in
Agency
MBS, which equates to a daily average of $1.3 billion. Over this same
period, mortgage
banker supply averaged $1.8 billion per day indicating the Fed covered 72%
of the
supply. This is improved from the first period where the Fed bought $3.95
billion
while supply totaled $7 billion.
Are all the appraisers and AMC's out there ready for the updated data
requirements?
Maybe not, given the marketing efforts by wholesale lenders to waive the
appraisal
entirely. Or maybe, operationally, everyone is backed up. Some of the
programs appear
to be those that never needed an appraisal to begin with - so why not remind
everyone
of them? United Wholesale Mortgage wrote, "Appraisals on Conventional Loans?
Not
at UWM! How can you close conventional loans without an appraisal? Log onto
our
system, only run DU at our website. Higher FICO's and lower LTV's have
better chances
of getting appraisal waivers. Limit your DU runs! Run once or twice on our
system
and don't run them on any other DO or DU engine." SunTrust reps are sending
similar
notices, as is Wells Fargo. "Looking for an appraisal Waiver? Look no
further -
Wells Fargo will honor Property Inspection Waiver from Fannie Mae (DU
Findings)!"
(Certain restrictions apply.)
CitiMortgage sent the word out to clients that, "A key component of the UMDP
is
the Uniform Loan Delivery Dataset (ULDD), which identifies the data elements
and
the data delivery format required in connection with the delivery of loans
to each
Agency. The agencies will not be requiring data in this format until
December; however,
in preparation for compliance with the upcoming delivery requirements, Citi
will
implement upgrades to our Correspondent website registration screen
effective October
22...a new applicable Building Style description must be used (based on
whatever
Property Type is selected)." (Editor's note: It mentions log homes, but I
didn't
see any mention of other building styles like dome homes, manufactured
homes, or
yurts... I am sure I missed them.)
SunTrust issued a reminder to clients that for condominiums, it monitors
project
exposure and removes projects when they reach the maximum allowable
exposure. The
updated review said for both condominiums and PUD's, SunTrust Mortgage
performs
due diligence when the expiration date of a project is near. The investor
also issued
a list of settlement agents who are ineligible to close (and asked that
clients
confirm their agent is eligible), and issued a review guidance stating
Suntrust
Trust Mortgage requires special consideration in the underwriting and
appraisal
review process for rural properties or suburban properties with rural
characteristics.
"Outbuildings may not represent more than 5% of the appraised value. Pasture
and
cropland may not exceed 35% of the property's land size, including all
excess acreage
regardless of current use. At least 50% of the appraised value must
represent improvements."
It wasn't done. SunTrust reduced asset verification for the Key Loan
Program. It
now requires two months bank statements that show beginning and ending
balances
to verify assets for the program, but will no longer accept loans
originated on
properties located in the state of Florida under the Key Loan Program.
GMAC issued revised guidelines for Rate and Term Refinances: "The interest
rate
of the new loan must be lower than the rate on the existing loan to be
refinanced
and the interest rate of the new loan must be a fixed rate," reminded
clients of
the inspection requirements for properties located in Federally Declared
Disaster
Areas, and Correspondent Funding announced enhanced Jumbo guidelines on
appraisal
requirements, acreage and second home DTI's. Lastly, it told clients that
the Texas
Equity LIBOR ARM Products are not eligible for submission to LP. (As a
reminder
the Texas Equity Fixed Rate Products are still eligible for submission to
Loan Prospector.)
Flagstar warned brokers that October 21st is the last day to close FHA, VA,
& USDA
loans with credit scores between 600-619.
Kinecta announced it has "partnered with FNC, a leading web-based appraisal
management
organization, to provide an automated system that will enable you to request
and
track appraisals online and in real time."
News on the economy is continuing to show it is muddling along. Friday the
University
of Michigan preliminary index of consumer sentiment unexpectedly fell to
57.5 this
month from 59.4 in September, weaker than the median estimate of 60.2. But
Friday's
strong Retail Sales number was enough to nudge rates higher, with the 10-yr
closing
at 2.23%. The good news for mortgage rates is that the Fed is indeed in
buying agency
mortgage-backed securities as its own mortgage portfolio prepays.
Looking at this week, today we'll have the Empire State Manufacturing Index,
and
Industrial Production & Capacity Utilization, tomorrow the Producer Price
Index,
Wednesday the CPI, Housing Starts, and the Fed's Beige Book, Thursday
Existing Home
Sales, Philly Fed, and Leading Economic Indicators. So far this morning the
market's
appear to be roughly unchanged from Friday's closing levels.
My first job was working in an orange juice factory, but I got canned -
couldn't
concentrate.
Then I worked in the woods as a lumberjack, but just couldn't hack it, so
they gave
me the axe.
After that, I tried being a tailor, but wasn't suited for it - mainly
because it
was a sew-sew job.
Next, I tried working in a muffler factory, but that was too exhausting.
Then, tried being a chef - figured it would add a little spice to my life,
but just
didn't have the thyme.
Later, I attempted being a deli worker, but any way I sliced it, couldn't
cut the
mustard.
My best job was a musician, but eventually found I wasn't noteworthy.
If you're interested, visit my twice-a-month blog at the STRATMOR Group web
site
located at www.stratmorgroup.com
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106435366068&s=4179&e=001SVt-lj
bp53436QjxD9vbwURtIPPjV05jEcEKyBN3SjS2forXe0C_foO8RjEV-Uye0N7Z_Sh1il0SRXPx6P
jQauayNXQjni-Hc9Sseu-hhZcR1ujeZyAEpw==]
. The current blog takes a look at Fannie & Freddie & the FHFA, and the
changes
they have in the hopper. 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://r20.rs6.net/tn.jsp?llr=zy6u9cdab&t=xcp9eciab.0.epg7qedab.zy6u9cdab.8
721&ts=S0684&p=http%3A%2F%2Fwww.mortgagenewsdaily.com%2Fchannels%2Fpipelinep
ress%2Fdefault.aspx]
or
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&t=xcp9eciab.0.v7uif6dab.zy6u9cdab.8
721&ts=S0684&p=http%3A%2F%2Fwww.thebasispoint.com%2Fcategory%2Fdaily-basis].
For archived commentaries, go to www.robchrisman.com
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&t=xcp9eciab.0.fpg7qedab.zy6u9cdab.8
721&ts=S0684&p=http%3A%2F%2Fwww.robchrisman.com%2F].
Copyright 2011 Rob Chrisman. All rights reserved. Occasional paid notices
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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