Mortgage News and Market Snapshot provided by:Global Home Finance Inc.: July 2013

http://globalhomefinance.com

I used to look at my dog and think, "If you were a little smarter, you could

tell me what you were thinking." And she'd look at me like she was saying,

"If you were a little smarter, I wouldn't have to." There are plenty of

smart people who do lending in banks - not all of it on residential or

commercial real estate. SNL Financial reports that the top 10 largest bank

auto lenders as of Q1 (loans outstanding) were, in billions: Ally Financial

($60), Wells Fargo ($47), JPMorgan Chase ($40), Capital One Financial ($28),

Bank of America ($27), TD Bank US ($15), US Bancorp ($12), Fifth Third

($11), SunTrust Banks ($10) and USAA ($10). That is a heckuva lot of car

loans outstanding!

(And a quick note about banks. Who knew, way back when Norwest Mortgage

bought Wells Fargo, but kept the name due to brand identity, and five years

after Wells purchased Wachovia, it would become the world's most valuable

bank. San Francisco-based Wells passed the Industrial & Commercial Bank of

China as the largest bank in the world by market capitalization. Wells

Fargo's market cap hit $237 billion as of last week, surpassing ICBC's $225

billion market cap. It is hard for Wells to tell the world it is a regional

bank with those kinds of stats.)

ClearVision Funding is actively recruiting a Sales Manager to join its

Inside Sales Team located in Charlotte North Carolina. All candidates should

have call center experience. Additionally as CVF expands its East Coast

Operations Center in Charlotte NC, it is hiring Account Executives, Account

Managers and Underwriters. ClearVision is a full service Wholesale Mortgage

Bankers that specializes in closing FNMA, FHLMC, VA & FHA loans. In

addition, CVF will soon release its "Emerging Banker" correspondent program,

where it will provide warehouse lines to qualified brokers. CVF has

flourished in recent years as a result of their centrally located, sales

oriented operations teams whose focus is providing support to both the

Broker and Sales staff. Email resumes to careers@clearfundings.com

[mailto:careers@clearfundings.com] for consideration, and for more

information on the company go to ClearVision

[http://r20.rs6.net/tn.jsp?e=001JNq4zDlQq-ViyFfdzGwxKEKSAvHLzTqRqDiNyZtHDFTT

eFDwaHh8U8BsY0AnOV-1myBw6BIGZJsXRQ0reSzk9FI6x-PgFZgl_GPhCUYME6605bQ0fP9sZsgU

KnQgZesGOfCLtDKF96I=].

Supreme Lending, with headquarters in Dallas, TX, and a Top 30 mortgage

originator with 75+ branches, is seeking additional branches in the Midwest,

West Coast and East Coast. Management's vision is "To become the best

mortgage banking company in America." Measuring this by hearing from their

own employees, the Dallas Business Journal listed Supreme as one of the 'Top

Companies to Work.' They hear from their customers, receiving 95%

satisfaction score. Lastly the growth will confirm this which Supreme has

experience over 300% growth and is listed on the INC. as one of the fastest

growing privately held company in the US. To learn more about becoming a

branch with Supreme Lending visit Supreme

[http://r20.rs6.net/tn.jsp?e=001JNq4zDlQq-XAZxsZS9VcxtCOcAWYZCJfihhJVr5YC5aS

WYQFp5qMHzRTsSvWTHUB920x8H2CYxcE_T-5WL647e05vhvC22u-m5T4Cva_XfVEhfSexWeQvT23

S_hqF5eV]

or email at recruiting@supremelending.com

[mailto:recruiting@supremelending.com].

And PMAC Lending Services, Inc. is continuing to expand its Wholesale and

Mini-Correspondent business with great success. It has "all the right tools

for success including products, pricing and technology. We invite the Sales

Staff at Everbank" to contact Dorene Garrett at dgarrett@pmac.com

[mailto:dgarrett@pmac.com].

Well, the hopes any LO had that HARP 3 would be right around the corner,

with a new cut-off date, were dashed when it was announced that Mel Watt's

Senate vote would not happen until September. Mr. Watt is up for

confirmation to replace Ed DeMarco has the head of the FHFA, which oversees

Freddie and Fannie: MeetMeInSeptember

[http://r20.rs6.net/tn.jsp?e=001JNq4zDlQq-Us38QWYzaw1HRydoKA4_DFxHxqlSxBVLvI

YmfW7EeWCfLFyEoyt_caWO-laK6FZ_QJOe2ZnIDYffW35OV0--_wxF5dxl5JMy3Cu_eQpKkSc7F5

15p74P-ulAEU-Bqhscuq_ytFKtkt2BveKW-2hob5dctsz5WBDoN9cZwiIypy9gcJRYblpHEqdZCL

nk1DLu3_gLcYVBm4jtjBc7vGwyR7uLgMX8FdEnc=].

Opponents of eminent domain were dealt a blow this week as Richmond,

California embraced the plan. From The New York Times: "A City Invokes

Seizure Laws to Save Homes" "With recent gains in home prices doing little

for some blighted neighborhoods, Richmond, Calif., is about to become the

first city in the nation to try a novel way to stop foreclosures." Here you

go: DoesNotBodeWell

[http://r20.rs6.net/tn.jsp?e=001JNq4zDlQq-V9Bfwhoc4MgChZTJHo6X5af1-KQbzvNQyA

FCJhVz8NuU7IT6Cn-TKjAGs7LyTILjMzj8SOYrKsBM5oto1jnbZzTgmtNq8OHWRM2GjXY3uOD1XB

DH6Cwa01PmQZAZAFJ0Z9KwPUaK8YcIja1SqURIxpoUkwE_Wgvuy_BVHKnKiYmR8pEUjjWVK9BWIn

vUi9VKfqk5RYyw73WCiL9ZqwdWRksbkgGC_n14E=].

And here's an interesting set of lawsuits: cities suing banks over

manipulating Libor. (I remember when it was "LIBOR", but I guess that is too

hard to type.) Philadelphia has sued nine banks, including Deutsche Bank,

Royal Bank of Scotland and UBS, regarding losses incurred because of

possible manipulation of the London Interbank Offered Rate. Houston and

other US municipalities have taken similar action: StreetsOfPhiladelphia

[http://r20.rs6.net/tn.jsp?e=001JNq4zDlQq-Uu36s3a9dcYbDoYKDK5avtkYOfIPpKbPMm

iCjVHl7S5FaD4FMOWGfhkSGKKnclODV3k3sIkZOSF5iKrfG7493VUqjKc4G3ysyHPAtoNR14wyRo

_Oz70jb2dTE9o3XnTidhfmchlfSdXlNqRd0KlFoAsR1KwESlV7hw0Bp3467Z7vmtddZOSJRfDC-1

LiFdFhkEd5Io7u5wDqaOpk-HkWW7].

Let's keep going on some recent investor, M&A, and agency updates.

PHH has updated the maximum acceptable DTI for both Conventional Conforming

products, both fixed rate and ARMs, to allow ratios of up to 45% for loans

with an LTV over 80%. This replaces the current guideline, which caps DTI at

41% and only allows 45% with additional FICO, occupancy, transaction type,

and AUS findings restrictions, and will go into effect for all new

registrations on and after July 12th.

Wilmington Savings Fund Society, FSB ($4.3B, DE) will buy residential

mortgage banking company Array Financial Group and a related entity, Arrow

Land Transfer Company (an abstract and title company) for an undisclosed

sum. Array originated $150mm in mortgage loans in 2012. And I am sure

Wilmington is watching any QM-related affiliate news.

Mountain West Financial is now requiring that all Power of Attorneys be

reviewed and approved by the Closing Manager/designee before any of the

documents are executed.

Once prepared by escrow, the POA must be submitted to MWF for approval, at

which point the borrower can execute the documents and have them notarized

so long as fewer than 90 days elapse before funding. All files will be

conditioned accordingly by underwriting.

MWF has released the full wholesale product guides and underwriting manuals

for its Conforming and High Balance Conventional, FHA, VA, DU Refi Plus,

HASP Open Access, HomePath, MyCommunity Mortgage, and USDA Rural Housing

programs. These can all be found at MWF

[http://r20.rs6.net/tn.jsp?e=001JNq4zDlQq-W6c3XBtE8R9H4RF3yZZUeAbp31QVYaAoKg

PvkJCc-66noW6AEVz3010Jazv_M0MPWqbQHuTYZzSXZ52PM-ZbSTY-E6M7rJA1EiD_OYSwxxpHk7

ElZFRfMS4seO313JI3JmPUvgaGbnHWkQr7tGMPQejwU_9aDB4Su4_eiwlJqysB1bz6azERP7eezo

4jARpV04Ldn72G6b7-McLhnO4BJ80erEoQGOGFG3Spe9FL6f3Q==].

Franklin American has opened up the same rates for its GNMA II products as

for its FHA/VA 15-year product.

Per FEMA's recent announcement that disaster aid is available for certain

counties in Illinois following the storms and flooding in late April, M&T's

disaster policy is in effect for Brown, Bureau, Calhoun, Cook, Crawford,

DeKalb, Douglas, DuPage, Fulton, Grundy, Henderson, Henry, Kane, Kendal,

Knox, LaSalle, Lake, Livingston, Marshal, Mason, McDonough, McHenry,

Peoria, Pike, Rock Island, Schuyler, Stark, Tazewell, Whiteside, Will,

Winnebago, and Woodford Counties. All properties with appraisals dated May

5th or before must be re-inspected by the original appraiser.

FHA, VA, and SONYMA products all require interior and exterior

re-inspections (apart from FHA Streamlines without an appraisal, which

require a borrower or lender cert), while FNMA, FHLMC, HASP Open Access, and

HARP DU Refi Plus only require an exterior re-inspection.

M&T's disaster policy is also in effect for Forest and Lamar Counties in

Mississippi following the storms, tornadoes and storms from last February

and applies to all loans where the subject property was appraised on or

before February 13th. Following the announcement that disaster aid is

available in Atoka, Canadian, Cleveland, Coal, Hughes, Latimer, Lincoln,

McCain, Nowata, Okfuskee, Oklahoma, Okmulgee, Pittsburg, Pottawatomie,

Pushmataha, and Seminole Counties in Oklahoma for the effects of the

tornadoes and storms in late May, M&T is also requiring properties in this

counties to be re-inspected accordingly if their appraisals are dated June

2nd or before.

PennyMac has announced that it will no longer be emailing rate sheets (both

Best Efforts and Mandatory) but instead posting them to its online portal,

where they are now available to download. Lenders should ensure that their

web admin is aware of the change and configures user logins accordingly by

August 5th.

PennyMac has expanded its ARM offerings and is now purchasing FNMA and FHLMC

LIBOR, FNMA High Balance LIBOR, FHLMC Super Conforming LIBOR, FHA 2038 CMT,

FHA Streamline CMT, VA CMT, and VA IRRRL CMT transactions with a variety of

cap structures, the full details of which can be accessed through the Penny

website.

Pinnacle Capital has lowered the minimum FICO requirements for its

Conforming High Balance products and now allows credit scores as low as 660

for 1-unit purchase and rate/term refinance transactions with an

LTV/CLTV/HCLTV up to 80, 2-4 unit purchases and rate/term refinances with

LTVs up to 75, and cash-out refinances with LTVs up to 60. The 660 credit

requirement changes also affect second homes and investment properties,

which are eligible with LTVs up to 60 and 65, respectively. Expanded

underwriting options are also available for High Balance ARMs; see

http://pcmwholesale.com/serveannouncements.aspx?id=322

[http://r20.rs6.net/tn.jsp?e=001JNq4zDlQq-XAN9peeaGZvV_n7Ci3Hj3Ir5bl1W4QEPSQ

7ZfUvTPYcsmP05WXK19m_U413Vh7spcqjHJIng4GBYnIquvvFN1mZItPBEt34hE5luvAYxJLVPYX

_Y-mJICeWlNDnX8TLck5ZSsfuF7mGpbt6uMbTnO9ALkQGBm05mA=]

for the full matrix.

Pinnacle is no longer mandating that the mortgage insurance required for

Conforming loans with LTV/CLTVs of 95.01-97% be obtained through a

non-delegated process and has removed guidance stating that loans that fall

within this LTV range are ineligible for lender-paid mortgage insurance. The

Genworth delegated underwriting requirement has also been removed.

Effective immediately, Pinnacle is now allowing loan amounts up to $2.5

million on its Mammoth Jumbo program.

Capitalizing on the pickup we're seeing in the Jumbo market, Denver-based

Titan Capital Solutions has rolled out a new 10/1 ARM product and raised

their maximum allowable loan amount to $2.5 million and maximum cash out to

$300,000. Credit guidelines have been expanded to allow FICO scores down to

700 on owner-occupied loans, and the seasoning requirement for paying off

subordinate finance has been reduced to six months, which allows refinance

transactions to qualify as rate/term when the borrower is paying off

non-purchase money subordinate liens that are at least six months old.

WesLend Wholesale has updated its Market Classification List for

Non-Conforming Jumbo transactions, the changes to which are now in effect.

The economic news continues to be mixed - not such a bad thing if one wants

lower rates. (If all the news was great, rates would be moving higher.)

Yesterday we learned that the May S&P/ Case-Shiller 20-city home price index

rose 2.4% from April. It was 12.2% higher than one year ago, which was the

largest annual increase since March 2006. But confidence among U.S.

consumers declined more than forecast in July after reaching a five-year

high a month earlier as Americans grew more pessimistic about the outlook

for the economy and employment. "Consumers' views of the economy dimmed as

Americans paid more at the gas pump this month than last and as higher

mortgage rates threatened to slow momentum in the housing market. At the

same time, increased wealth tied to higher property values and stock

portfolios are helping sustain household spending." Lastly, on the

foreclosure front, Corelogic reported that completed foreclosures fell by

nearly 20% from June of 2012 (68,000) to June of 2013 (55,000). Before

2007, completed foreclosures averaged 21,000 per month.

In addition, there were approximately 1 million homes across the nation in

some type of foreclosure, down from 1.4 million a year ago. Using this

metric, the housing market continues to improve.

The markets really didn't do too much yesterday, with current coupon prices

off slightly and the 10-yr T-note worsening .125 and its yield closing at

2.60%. The Fed's QE3 program easily absorbed the mortgage banker MBS

supply. Today we'll have some potentially market-moving news. First up is

the MBA's weekly report on mortgage applications for last week - not a

market mover but informative nonetheless. At

8:15 EST is July's ADP Employment index (+180k expected versus +188k

previously), the Chicago PMI for July at 9:45 EST, and then of course the

results of the FOMC meeting. Don't look for a change in rates, but everyone

will be looking for any kind of change to the language of the announcement.

THREE COHENS

It was a sweltering August day when the Cohen brothers entered the posh

Dearborn, Michigan, offices of Henry Ford (an infamous anti-Semite), the car

maker.

"Mr. Ford," announced Norman Cohen, the eldest of the three, "we have a

remarkable invention that will revolutionize the automobile industry."

Ford looked skeptical, but their threat to offer it to the competition kept

his interest piqued.

"We would like to demonstrate it to you in person."

After a little cajoling, they brought Mr. Ford outside and asked him to

enter a black automobile parked in front of the building. Hyman Cohen, the

middle brother,

opened the door of the car. "Please step inside, Mr. Ford."

"What!" shouted the tycoon, "Are you crazy? It must be a hundred degrees in

that car!"

"It is," smiled the youngest brother Max, "but sit down, Mr. Ford, and push

the white button."

Intrigued, Ford pushed the button. All of a sudden a whoosh of freezing air

started blowing from vents all around the car, and within seconds the

automobile was not only comfortable, it was quite cool.

"This is amazing!" exclaimed Ford. "How much do you want for the patent?"

One of the brothers spoke up, "The price is one million dollars." Then he

paused.

"And there is something else. The name 'Cohen Brothers Air-conditioning'

must be stamped right next to the Ford logo!"

"Money is no problem," retorted Ford, "but there is no way will I have a

Jewish name next to my logo on my cars!"

They haggled back and forth for a while and finally they settled. Five

million dollars, but the Cohens' name would be left off. The first names of

the Cohen brothers, however, would be forever emblazoned upon the console of

every Ford air conditioning system.

And that is why even today, whenever you enter a Ford vehicle, you will see

those three names clearly printed on the air conditioning control panel:

NORM, HI, and MAX.

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?e=001JNq4zDlQq-XGA9scbaG-o1FzMm2TKyQsMaMx-9iSrtG6

j9e--P8Vw_0VVlnWcZ7ZYB_oWM_gXmeD4-eN1yffpwgKhRV8VnNPztiNdtwQj0zGk8vXqQKlxWch

07zawfTC].

The current blog is, "A Little Technical Knowledge About REITs." 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

Wednesday, July 31, 2013

Funded Loans

Lenders and Banks

Tuesday, July 30, 2013

What Happened Yesterday...

Monday, July 29, 2013

Recap Last Week