Wanna save money? Let our professionals show you the benefits of refinancing today! Apply http://globalhomefinance.com/apply.php !
If you have a few minutes, and want to learn more about our economy ("One
recent survey found that one out of every three Americans would not be able
to make a mortgage or rent payment next month if they suddenly lost their
current job," for
example) check out:
azy-believe
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108989420782&s=8721&e=0019nlWdO
Ro7F_YiMMWnC3jmBEL6_JrwD3Wep31D80yWx2U3k8J7NZqSrOerqtT0Re_5ldCUfH4MPRnxJ2Nrm
ZXK0V7CgbVgnLwxP0cJBUlp4gQFHqAL7fUx_VTpaqEyNJ92axpHvxCl_cAiw_c-Fm9GMDR01VoMf
AJeNGarHBDE5G-YjjKthsPyPwQh-W5R7efLbeUYhFEq7M=].
Here's an interesting debate question one industry vet asked: "How many
non-depository mortgage bankers are still giving partial lender credits to
borrowers?" I think you will find that depository lenders do not allow
this practice as it is a violation of Fair Lending and Desperate Impact.
Loan Originators are not allowed to provide anything to one borrower that is
not equally available to another, yet loan originators continually increase
interest rates and give lender credits as a means to compete.
I guess MLO Comp missed that one."
The end of the year is a good time to clean things up, which includes
cancelling Case Numbers. HUD reminded lenders that, "Case Number
assignments eligible for cancellation where the borrower and property remain
the same: Lenders may request a case number cancellation only for loans that
have not yet closed. Lenders must submit their request to the
jurisdictional Homeownership Center (HOC) via the relevant electronic
mailbox below. Fax requests are no longer accepted by FHA. Denver:
Send request to email box: denhocinsure@hud.gov
Santa
Ana: Send request to email box: snahocinsure@hud.gov
Your request must include in the subject line of the electronic mail: type
of request (i.e. case number cancellation), and case number that you wish to
cancel."
Another thing that usually happens at the end of the year is a drop off in
mortgage
applications: I guess trying to figure out whether to make pumpkin pie or
the chocolate-peppermint parfait takes precedence over locking in a rate.
The MBA reported that last week's apps dropped 2.6%. Michael Fratantoni,
MBA's vice president of research and economics, wisely noted, "Remarkably
low rates are not enough, as many homeowners continue to hold back due to
lack of equity in their properties, poor credit and a weak job market."
Refi's are now nearly 81% of apps!
Speaking of the MBA, they and STRATMOR Group have conducted the Peer Group
Survey and Roundtable Program since 1998. This program creates a forum for
participating mortgage banking companies to review their financial results
and operating practices in relation to their peers: benchmarking. This
program is widely regarded not only for its detailed benchmarking outputs by
production channel, but also for its 1.5-day roundtable meetings. The
meetings allow companies to network and share ideas and issues with peers.
Peer groupings are flexible and change over time, but include:
mid-size retail independents, mid-size multi-channel independents, mid-size
bank-owned institutions and large lenders typically originating over $5
billion annually. For each group meeting, the MBA/STRATMOR team compiles a
detailed presentation of historical trends and analyses of the most current
data series. If you would like to participate in MBA's upcoming Spring 2012
peer group survey (data as of December 31, 2011) or would like additional
information, please contact Marina Walsh in MBA's research and economics
or Jim Cameron at STRATMOR Group at jim.cameron@stratmorgroup.com
The CFPB wants more input on alternative mortgage disclosure forms:
e-disclosure-that-is/
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108989420782&s=8721&e=0019nlWdO
Ro7F_yQlApkux5HY0PknuU9i8gmcmTUhc19ekl30nt0EXWCE83v4MgCNCFzA1KTaIvIzfR8gHdZ-
cA7V59xvS_FJa-mR810BL8pCuDJ4eo9x3baFQilRYbhflsf9QyanidHh7wzOxXcmKfxFPQ2DAqyU
MnLB7xpsjkY9DfLKjNzK45T61L5xKDVDRkhS-5Cl8v4HOVNEIj4ix3UQ==].
It is also looking for comments on its plan to collect information related
to the implementation of certain mortgage servicing rules, specifically the
reset of hybrid adjustable rate mortgages, periodic mortgage loan
statements, and force-placed insurance disclosures. The CFPB plans to
implement those requirements in part through model forms and disclosures:
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1108989420782&s=8721&e=0019nlWdO
Ro7F8RgLgdgmbwvhehUNzZhl5Nc6iOShgynXYzdL0_i63wKRyWX99r9RrSVl46cX9mDdrZ5arMNE
cOQUARa2nPblK_ty9EuPUoMmITSzEELoHa6I79n7-4Sr917CzxP1N_7UJx53YWzSYcPGZr-5w3Zp
pn].
Last week I wrote about recent fraud statistics, reported by Housing Wire.
Fraud risk is one of area lenders may be able to reduce the exposure but
never eliminate it. If a borrower wants to misrepresent information or
their intentions they can likely get away with it. The statistics from last
week would lead one to believe
that is fact. Fannie Mae indicates that undisclosed debt (27%) and
occupancy
fraud (21%) are two of the bigger culprits on new originations. Many have
turned to technology to assist in the detection and so have the investors.
Take for example occupancy. Many portfolio lenders now have the ability to
compare utility bills to borrower. If they don't match does that mean
there is occupancy fraud? It leads one to believe, and we've seen signs,
that the new repurchases will likely be triggered earlier in the process,
perhaps in advance of default or even foreclosure loss. There are insurance
solutions that can provide cost effective protection from
these risks. If you have interest in learning about the solutions contact
Justin
J. Gallagher
(NYSE: AJG).
Honestly, I lose track of who is suing who. California's Attorney General
filed lawsuits against mortgage giants Fannie Mae and Freddie Mac on
Tuesday, demanding that the companies that own some 60 percent of the
state's mortgages respond to questions in a state investigation. Silly me -
I thought that California was already involved in a lawsuit with the
agencies. Anyway, CA is investigating Freddie and Fannie's involvement in
12,000 foreclosed properties in California where they served as landlords.
The AG also wants to find out what role the companies played in selling or
marketing mortgage-backed securities, is calling on Fannie and Freddie to
identify all the California homes on which they foreclosed, and want the
mortgage firms to reveal whether they have information on the decreased
value of those homes due to drug dealing or prostitution, as well as
explosives and weapons found on those vacant properties.
Remembering back to your U.S. government class, the Supreme Court decides to
hear certain cases, and then actually hears the arguments months later. In
mortgage news, the Supreme Court has decided to hear a fair housing case
that could upend a legal theory that the Department of Justice, banking
regulators and private attorneys use to show mortgage lenders have
discriminated against minority borrowers. Most fair lending cases against
lenders these days are based on a "disparate impact"
legal theory where the government or other plaintiffs rely on data and maps
to show discriminatory lending practices. Prior to the Obama administration,
the Justice Department and banking regulators adhered to a "disparate
treatment" standard where they had to go beyond statistics and prove intent
to discriminate. "Under the disparate impact theory, they rely exclusively
on statistics," according to Andrew Sandler, a partner at the Washington law
firm BuckleySandler. "There is some likelihood that the Supreme Court will
significantly narrow or eliminate the use of disparate impact under the Fair
Housing Act in fair lending cases." Basically the government should find
evidence of intent to discriminate before filing cases against lenders.
Watch for "Magner v. Gallagher" coming to a theater near you early next
year.
Here is a note from a reader on a plan: "If you can short sale a home, you
should be able to refinance your home on the same premise as a short sale.
This will get the lenders to adjust their valuation systems since suddenly
values take a dramatic leap because lenders will use the better comps versus
looking for the worst comps and remove some of the uncertainty around
values. The loan program would be for primary residences only, 100% of
determined value. The DU Refi Plus to 125% or higher nonsense needs to stop
and lenders need to take a stand - we are kicking the can down the road. The
borrower would pay a slightly higher rate of 50 to 75 bps higher than
market rates. The loan should have a prepayment penalty but Congress will
never buy that, and there is no interest tax deduction going forward for
that home for a certain period of time. The lender takes out a life
insurance policy on the borrower, paid for by the higher rate, for the
balance owed and is paid in full upon their death. And the program could
apply to all loans where the borrower owes more than it is worth, not just
Fannie/Freddie loans since many people are in Alt A and Subprime loans are
not being offered the same opportunity as a Fannie borrower. We need to get
rid of the band aid lending policies and end this. I call this the Homeowner
Stabilization Act. For thoughts write to Mark Weber at mweber89@cox.net
"European Union officials suggested that working out the details of an
agreement on fiscal integration between the many EU countries may take
months." I saw this headline, and wondered, "Is this a surprise to anyone?"
But yesterday the markets were moved by events here in the United States as
investors moved money out of fixed-income, "risk-free" markets and into
stocks. The Housing Starts and Building Permits numbers helped, and
investors tended to shrug off news that Congress remained unable to reach an
agreement to extend the payroll-tax (which, one could argue, could create
potential risks to economic growth). Treasury 10-year notes lost nearly one
point in price and rose to 1.92%, and rate-sheet MBS prices fell/worsened by
about .250
- a nice "tightening."
But once again, we find ourselves watching the bickering in Washington, but
note that without Congressional action, payroll taxes will go up
significantly in 2012 which would add materially to fiscal drag. That may
help rates - but most originators would rather have a better economy than
lower rates.
For economic news, later this morning we have Existing Home Sales for
November which is projected higher by 1.6% to 5.05 million. And the Treasury
concludes its latest round of auctions with $29 billion 7-year notes at 1PM
EST. Rates are currently unchanged with the 10-yr at 1.91% and MBS prices
unchanged from Tuesday afternoon.
Exercise?
My grandpa started walking five miles a day when he was 60. Now he's 97
years old and we have no idea where the heck he is!
I like long walks, especially when they are taken by people who annoy me.
The only reason I would take up walking is so that I could hear heavy
breathing again.
I have to walk early in the morning, before my brain figures out what I'm
doing.
I do have flabby thighs, but fortunately my stomach covers them.
The advantage of exercising every day is so when you die, they'll say,
"Well, he looks good, doesn't he."
If you are going to try cross-country skiing, start with a small country.
I know I got a lot of exercise the last few years - just getting over the
hill.
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=ohjxo9iab.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=ohjxo9iab.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=ohjxo9iab.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
No comments:
Post a Comment