Any time I see "Jodie Foster," "housing scheme," "estranged father "and,
"cargo containers" in one sentence, I scramble for the latest edition of
People Magazine.
Here it is on Yahoo: HowIsYourFatherClarice?
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108951489685&s=8721&e=001AqeQyJ
ZE7bUDaMh_MITSARAHhr45Z2bQ707nUWJHXpxNh4UkVgwfvUdP3Vqsr5POCSNQAKSqLr82j_k5ez
AKWNPJ3q_XydMSjqZNov8sGids47Pa_S7lgc6zvUrvNFV6lWP70tC_hQtTD5dzWwTGnA3mYdBt_E
QZyjy1kUBfUT_8hW5OSNFYBdvPr10yRrbq]
Some companies in the industry continue to expand, some larger than others.
TMSFunding Wholesale Lending (part of Total Mortgage Services -
headquartered in Connecticut) is seeking wholesale AE's in 21 states ranging
from California to Maine through North Carolina, Texas, Florida, Michigan,
Vermont, and fourteen others (GA, IL, MA, MD, MS, NH, NJ, NY, PA, RI, SC,
TN, VA, and DC) . The preferred AE candidate has an existing broker base
funding traditional, FHA, USDA, and jumbo loans. The company's website can
be found at TMS
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108951489685&s=8721&e=001AqeQyJ
ZE7bWdfSP87oFJ7t2BoCG5KglV-kNzkaw1zBm4hlm01lA4V5BvCJlbCCh2IFhhKKNGwV_oRzIyo4
E7PjcOzI3ohIqPAD0vBIEopkprGB4MnicAFA==],
and all resumes should be sent to wholesale@tmsfunding.com
Any company servicing loans in Las Vegas should note that, "Banks that own
vacant, dilapidated properties in Las Vegas could face fines or jail time
under a city ordinance approved Wednesday. The City Council voted
unanimously for an ordinance that requires banks to list empty, foreclosed
properties on a registry and contains misdemeanor penalties for allowing a
property to fall into disrepair:" VivaLasVegas
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108951489685&s=8721&e=001AqeQyJ
ZE7bUwgwPiiBe2Es8_BsLDwVFGCoF9PPB33YhF69GfPPgmkVQ8JJc_RL6UtWDfQdK9-bUMzjqGxj
w6xc36qK7ZQXzknhu1oENMXbBCkC0CwLaFjMJXI5OEBhVQ4Ys-NeotPw1HpLuO_GNJk9wpdkwYoV
XiMSqANtxLfQ0WlgV70B_szIvfljI5ARJzO81Ox7LCVmkUaquFRGZA3SME3VlFMKW5].
Is John Stumpf or Jamie Dimon going to do time in the Big House? Probably
not, although there is a maximum $1,000, six months in jail penalty.
The "why do borrowers walk away from house loans and not car loans?"
conversation continued into the weekend. Ray W. observed, "You can sleep in
your car but you can't drive your home." Karin B. writes, "It is more
expensive to rent a car than to buy one. Then, most people tend to lease a
car, and never own one. Or a car loan is 3-5 years, often with no interest
or 1% interest. The house they are walking away from is at 6% for 30 years
- it is a simple business decision to cut losses on an under-performing
investment. Those that walked in 2007 and kept their credit intact, except
for the mortgage, can now get back into the market and buy the same house
they left for 50% less (in some markets) at 2% lower interest rate than they
had. They money they did not pay on high interest mortgage was saved, and
now they have nice down payment."
Keith L. reminds us, "And does anyone ever take into consideration that the
mortgage payment is tax deductible whilst rent is not? LO's should help
borrowers calculate the net cost vs. renting first before dumping the
house."
Joe M. writes, "If I spent $500K on a stock based on say a 10 year outlook,
and in year two that stock was now worth $100K, am I expected to cry to the
government and/or my neighbors to "help" me out since I can't get my
original $500K back? Or, since I invested for the long term, should I wait
to see if all or some of it will come back by year 10. I think what most
folks forget about is that, at its core, buying a home is an investment.
Investments can go both up and down. Not only that, but these investments
were all paid for basically on "margin" with a bank's money used as the
investment capital - in most cases these were 30 year loans.
Because your investment is down in year 2 or 3, you should bail without the
penalty of the margin call? Just because they got caught up with competing
with their family/neighbors on buying the biggest house on the block we
should not have to bail them out when it turns out that they can't afford
it? They take the loss on their investment and move on: it's called
renting."
Steve T. wrote, among other things, "Why would borrowers continue to make
car loan payments when they know that as soon as they drive it off the lot
it is worth less than the loan and not make payments on home loans? Because
they are constantly barraged with useful idiots blaming 'greedy bankers' and
evil mortgage brokers for making profits and 'causing the housing bubble.'
They are not willing to look in the mirror and say, 'I screwed up when I
signed for that pay option ARM,' or, 'maybe I should not have done that 100%
Stated loan on my rental.' And regarding the comment on the predominance of
short sales, I'm calling 'B.S.' here. This line of reasoning
is equivalent to a teenager saying 'everyone else is doing it.' Just
because 'everyone
else' is defaulting on their obligation, does not mean we need to condone or
encourage it?"
In a blurb from American Banker, it reports, "Perhaps the future for loan
brokers isn't so bleak after all. Wholesale lenders table funded almost $33
billion of loans in the third quarter, giving the channel a 9.2% market
share, according to new figures compiled by National Mortgage News and the
Quarterly Data Report. In the first and second quarters of this year brokers
had market shares of 6.8% and 7.9%, respectively.
The 6.8% figure marked an all-time low for the industry. Three years ago
they had a 19% share."
Many mortgage banks use ViewPoint as a warehouse lender. Late last week
ViewPoint Financial Group and Highlands Bancshares announced that they have
entered into a "definitive merger agreement whereby ViewPoint will acquire
Highlands and its subsidiary bank, the First National Bank of Jacksboro
(which operates in the Dallas marketplace as Highlands Bank), in a
stock-for-stock transaction. This strategic acquisition increases
ViewPoint's footprint in the Dallas marketplace while maintaining
ViewPoint's strong capital position. (The deal) has an aggregate implied
value of approximately
$71.0 million in ViewPoint common shares. Highlands is a privately owned
commercial bank headquartered near Dallas.
Wells Fargo Wholesale Lending told brokers it will implement new Fannie DU
Refi Plus and Freddie Mac Relief Refinance Mortgage price adjusters starting
today.
Stearns Lending rolled out a new extension policy. "Extensions are available
for programs and rates currently posted on our rate sheet only. Requests
for extensions on Jumbo loans, ARM loans or Specialty Products will be
looked at on a case-by-case basis. Requests for extensions can be made no
earlier than 5 days prior to the lock expiration but must be made before the
lock expires. Free Extensions - (1st
extension) Available for loans locked with an original term of 21 days will
receive a one-time 3 calendar day extension. For loans locked with an
original term of
30 days or greater, a one-time 7 calendar day extension will be given, if
requested, at no cost within 5 days of expiration. A free extension is not
applicable if initial lock term was 14 days. Extensions at a Cost - (2nd
extension or if initial lock term was a 14 day term) Extensions are
available at a cost of 2.5 bps pts. per day
(.025%) up to 30 days, without regard to market condition (better or worse).
All extension requests must be made prior to the lock expiring. Relocks (up
to two):
If the lock has expired and current market pricing is the same or better:
you may relock for 10 days for .125 pt. cost or 20 days for .25 pt. cost. If
the lock has expired and current market pricing is worse, you will use worse
case pricing from the lock term you originally locked with (i.e. 14, 21, 30,
45 or 60 day) plus the relock fee. You can relock for 10 days at .125 pt.
cost or 20 days at .25 pt. cost."
(See the lock policy for full details by product type).
How about these rates!? No one in the mortgage business is complaining about
them
- but what trends are developing? Our fixed income markets are "caught
between the opposing forces of strengthening U.S. economic data and the
must-be-a-crisis-somewhere Eurodebacle." So reports Paul Jacob with Banc of
Manhattan. "But several trends have caught our attention that, collectively,
suggest a potential range break to higher yields." Mr. Jacob sums up that
U.S. data has been on a solid run especially on the consumer side, stocks
are "hanging tough," and volatility has decreased on various levels. , the
lock-step stock-bond correlation has been weakening. And if the bond market
is not quite so crisis-obsessed, yields have to be justified in the context
of economic fundamentals and a 2% 10-year isn't compatible with 4% nominal
GDP growth.
For economic news this week we have zip today, aside from continued
gyrations from Europe (which will be with us for months and years). Tomorrow
we can look forward to Retail Sales, if that is the correct term, and
Wednesday is some import/export price data. Thursday is Jobless Claims,
Personal Income and Consumption, the Producer Price Index (remember in the
old days when inflation mattered?) and an Empire State Manufacturing number.
Friday is the Consumer Price Index. (Things will be pretty quiet after that
with many heading off for holiday vacations.) Rates are a shade better today
with the 10-yr down to 2.02% and MBS prices about .125 better.
(This tale is meant for entertainment only, and may or may not reflect the
views of the editor.) An economics professor at a local college made a
statement that he had never failed a single student before, but had recently
failed an entire class. That class had insisted that Obama's socialism
worked and that no one would be poor and no one would be rich, a great
equalizer.
The professor then said, "OK, we will have an experiment in this class on
Obama's plan". All grades will be averaged and everyone will receive the
same grade so no one will fail and no one will receive an A (substituting
grades for dollars - something closer to home and more readily understood by
all).
After the first test, the grades were averaged and everyone got a B. The
students who studied hard were upset and the students who studied little
were happy. As the second test rolled around, the students who studied
little had studied even less and the ones who studied hard decided they
wanted a free ride too so they studied little.
The second test average was a D! No one was happy.
When the 3rd test rolled around, the average was an F.
As the tests proceeded, the scores never increased as bickering, blame and
name-calling all resulted in hard feelings and no one would study for the
benefit of anyone else.
To their great surprise, ALL FAILED and the professor told them that
socialism would also ultimately fail because when the reward is great, the
effort to succeed is great, but when government takes all the reward away,
no one will try or want to succeed.
It could not be any simpler than that.
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 discusses the time frames for borrowers returning to
A-paper status after a short sale or foreclosure. 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=vexrkziab.0.epg7qedab.zy6u9cdab.8
721&ts=S0708&p=http%3A%2F%2Fwww.mortgagenewsdaily.com%2Fchannels%2Fpipelinep
ress%2Fdefault.aspx]
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&t=vexrkziab.0.v7uif6dab.zy6u9cdab.8
721&ts=S0708&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=vexrkziab.0.fpg7qedab.zy6u9cdab.8
721&ts=S0708&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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