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If you have trouble finding something for that special person who has
everything, how about a new chia pet:
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uIvmRyj2ju-kfJwrTYj3wcWdyOLBfLyTUqrMTC10EYhQ-6ErEyC8WA5pZke77Mw4B0pJHjreb8rl
52ocHokgx6NlCFk7zv8JT0ToN22_hNlvrO4KerwY4nDKTnGUajq9Xw1JnAMEftNI2k9w==].
The old saying, "Give a man a gun and he can rob a bank; give a man a bank
and he can rob the world." This 25-year old didn't have either. "Loan
officer John Incandela, 25, of Palm Beach, was sentenced Monday to 41 months
in prison, three years of supervised release and ordered to pay more than
$1.9 million in restitution for his role in a reverse mortgage scheme, the
U.S. Department of Justice said:
-41-months-for.html
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108984463980&s=8721&e=001BaQFuy
uIvmQjuNWQBZ9YIQNfSLf785mIa31OIfwXojl1Y3tC4Id-cm3rhkm0wDwLfePOOxwEM4zP8gYl7h
vSWxZS0D_g4xEtlUBnV8PLtp7oPjvk_WtLiPPHUJcO2JBuoWTmnXdqVrnNIRfZW7ZNIhatuRAIN5
owIWpZqjgbIAPRDZTiKkpLfUgCNj64NapYEaveqmKcEEZqpNHMwLUsZGdjekxQrD08].
Our industry continues to receive black eyes like this.
Fraud in lending has no statute of limitations - just listen to some of the
repurchase stories. But not all fraud stories are from five years ago - more
is popping up all the time:
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108984463980&s=8721&e=001BaQFuy
uIvmRccJvpMe3FawpJYsoebOTSlP3KgicUZPohcWGjNwRBCZNlzwJOL46VKzkdgAuV3fdSPz1bU_
2xjEoF3Ja39NTpziENaedUSXteQrS0LA78sipLl6zcBCKaUSkY26uYcGfBw5tbW2cecgyN_HmwXm
O7vIFTjOSaxjr_wzywa6oAGg==].
Who is expected to be paying for the two-month extension of the payroll tax
cut working its way through Congress? How about, "most people who buy homes
or refinance beginning next year"? Over the weekend the Senate added a
guarantee fee increase for Ginnie Mae mortgage-backed securities to the
payroll tax bill, after experiencing heavy lobbying from the MI industry
which feared that a 10 basis point g-fee hike for Fannie Mae and Freddie Mac
MBS would tilt the market toward FHA loans. (The final bill now includes
g-fee hikes for all three: Fannie, Freddie and Ginnie.)
Things change by the day, but the extension of a payroll tax cut and
long-term unemployment benefits, estimated to cost $33 billion, will in part
be paid for by an increase in the guarantee/guarantor fee charged by the
FHA, Fannie, and Freddie. But things aren't quite that simple in Congress,
as we've all learned. Rep. Scott Garrett, R-N.J., has legislation that is
tied into things somehow that would require the FHFA to establish rules for
a privately funded mortgage finance system, repeal the risk-retention rule
under the Dodd-Frank Act, move mortgage servicing standards to the FHFA, and
prohibits any regulator from requiring servicers to commit principal
reductions. Five proposals have been introduced in both the House and Senate
that would assemble a future housing finance system and replace the GSEs at
the same time. But as I've been telling folks for quite some time, don't
look for any substantive changes for another year, or more.
But can we really afford to have government always frozen until the next
election?
A while back one reader wrote, "Continuing sitting on the sidelines is not
spurring activity beyond REO's, short sales and those that have to move. The
economy cannot recover without housing, unemployment cannot recover without
hiring, and consumers will not spend until the economy improves. It is a
vicious circle. Someone has to make a bold step and that involves banks
taking a haircut to their asset value.
(How many would shed crocodile tears for institutions that have failed their
customer
base?) Our politicians and civil servants lack the business acumen to
successfully steer us out of this and too many bad decisions were made
according to political expediency. Constantly aiming recovery efforts at
those under water or likely to foreclose will only be a band aid. We need to
boldly go where no politician has gone before and do a blanket refinance of
all borrowers who are current. Yes, all those people who WOULD spend the
$200 or so dollars they would now have over each month. Yes, it will have
consequences but what is the alternative ... more wasted billions thrown at
situation from the bottom up instead of the top down?"
Mortgage banking drama continues. MetLife Home, currently up for sale by its
insurance parent, is rumored to have two primary bidders for parts of its
company: PNC Bank and American Express. But the deal won't include Tom
Palmer, a now ex-senior executive in the correspondent lending division of
MetLife Home Loans, who jumped ship and headed over to privately held
Freedom Mortgage.
And despite Warren Buffett buying a big chunk of stock earlier this year,
investors are not enamored with Bank of America: its share price closed
Monday below $5 per share to a near three-year low. The bank's shares are
trading at about 38 per cent of tangible book value, meaning investors
either do not believe the value of BofA's assets or fear the company is
understating its liabilities, and BofA's stock is down 63% this year.
Out in California, Redwood Trust's gaze has been turned on commercial deals,
and is building a national correspondent brokerage system of 15 to 20 firms
originating loans (such as Colliers International) to fund $50 million per
quarter. This is interesting, as Standard & Poor's announced that collateral
backing industrial commercial mortgage-backed securities recently hit a
delinquency rate of 12.05%, a 22-year high. But S&P noted that "the
industrial segment is the only major CMBS property type for which
delinquencies are currently at historical highs. Next year will 'usher in'
the first major wave of maturities from the 2007 vintage, which were issued
during a frothy period at the peak of the market." Let's hope for Redwood's
sake the new stuff behaves better.
Vendors around the nation are following a new lawsuit: Nevada's Attorney
General filed civil fraud charges against Lender Processing Services and
two subsidiaries alleging the company engaged in a widespread fraud of
forging foreclosure documents.
LPS is accused of forging signatures and fraudulently notarizing up to 4,000
documents a day in an effort to quickly process foreclosures on behalf of
mortgage servicers.
Nevada claims LPS also demanded kickbacks from foreclosure law firms and
called those payments "attorney's fees" on invoices given to consumers and
submitted in courts. Remember that LPS processes more than 50% of all
foreclosures in the U.S.
I knew I should have been a lawyer.
Out on the internet, but based in Seattle, Zillow launched the "Zillow
Mortgage Marketplace" on AOL Real Estate and DailyFinance, providing tools
to research, shop for and compare mortgages. "AOL Real Estate and
DailyFinance visitors now have easy access to important home financial
information, such as mortgage calculators, real-time mortgage rates, and
Zillow's innovative mortgage shopping experience, which allows users to
compare personalized loan quotes and lender reviews, and connect directly
with lenders. Already this year, consumers have submitted nearly 5 million
loan requests in Zillow Mortgage Marketplace, receiving an average of 18
customized loan quotes per loan request." The launch, announced in October,
was scheduled for next year but accelerated to this month - one has to make
hay while the sun shines!
Real Estate Mortgage Network (REMN) introduced its wholesale FHA 203(k)
Rehabilitation Product "to remove the complexity out of the process for
independent retail lenders across the country. This new REMN Wholesale
product dramatically improves the 203(k) experience for everyone involved by
leveraging an in-house REMN team to manage the entire procedure. Visit them
online at http://www.remnwholesale.com
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108984463980&s=8721&e=001BaQFuy
uIvmQCQHLa9fTLI21LGFQ_Uj2TN98yAk_fEz7-iYDfQRvLUFUIlnHlL8QslRISNJFlXndeOTHQvd
urKxOmdWQbJNZnQFoziQTFCWCJz2MCK7v5uQ==].
Also offering a 203(k) program is M&T Bank's Mortgage Division:
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108984463980&s=8721&e=001BaQFuy
uIvmRd4jDQ5dyjXVLhrJYKloCjSfOYUa_s6BLxzJ1_cS7WB_pu1F6DTIYEg67--FeOaMn1JTPmkV
RGP5SbVM8VpOyc0m32BLxqUYAOYo1UfJt50TG_aIjEEuBg6ouKr1d0PtRMO4X8VgjNY9SDax3x0j
sBMgh51Fr1jTVezq7XG1I39A==].
Wells Fargo wholesale spread the word to brokers that the new upfront
guarantee fee for refinances for the Guaranteed Rural Housing program - also
known as Rural Development (RD) - is effective immediately, changing to the
upfront guarantee fee from 1% to 1.5%. Wells warns us that "loans may not
close/fund until the United States Department of Agriculture (USDA)
allocates funding for the Guaranteed Rural Housing (RD) program."
Jobs and housing, housing and jobs - they are both very important to the
U.S. economy.
Homebuilders are more optimistic than they've been about single-family home
sales in a year and a half according to a report released by the National
Association of Home Builders. It didn't skyrocket, but the moderate pick up
is nice to see ahead of all the housing news this week like Housing Starts &
Building Permits, Wednesday's applications and Existing Home Sales, FHFA's
home prices, and Friday's New Home Sales - all expected to have improved
marginally over previous reports.
The next two weeks are traditionally slow, and we've started off that way:
Thomson Reuters' Tradeweb reported that MBS volume came in at 81% of the
30-day average.
The rally may have kept a few folks on the sidelines with the 10-yr
improving by
.375 (and moving down to a yield of 1.81%) and agency mortgage security
prices better by about .125. Later today we'll have a $35 billion 5-yr note
auction, but we've already had Housing Starts and Building Permits for
November, up about 9% and 6% respectively, both better than expected.
Before, and after, the numbers the 10-yr is up to 1.86% and MBS prices are a
shade worse.
A priest was being honored at his retirement dinner after 25 years in the
parish.
A leading local politician and member of the congregation were chosen to
make the presentation and to give a little speech at the dinner. However, he
was delayed, so the priest decided to say his own few words while they
waited:
"I got my first impression of the parish from the first confession I heard
here.
I thought I had been assigned to a terrible place. The very first person
who entered my confessional told me he had stolen a television set and, when
questioned by the police, was able to lie his way out of it. He had stolen
money from his parents, embezzled from his employer, had an affair with his
boss's wife, taken illegal drugs, and sold his sister's jewelry to buy a
gun. I was appalled.
"But as the days went on I learned that my people were not all like that and
I had, indeed, come to a fine parish full of good and loving people...."
Just as the priest finished his talk, the politician arrived, full of
apologies at being late. He immediately began to make the presentation and
gave his talk:
"I'll never forget the first day our parish priest arrived," said the
politician.
"In fact, I had the honor of being the first person to go to him for
confession."
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=mtaak9iab.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=mtaak9iab.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=mtaak9iab.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.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Chrisman Inc. | 326 Mission Ave. | 326 Mission Ave. | San Rafael | CA |
94901
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