There is a lot of continued controversy and focus over
the various
compensation plans for loan officers and regulatory
audits. Obviously,
these comp plans must
eventually go through a company's HR department and
in-house legal counsel. The MBA is hosting a 1.5 day Human Resources
Roundtable for those in charge of incentive plan design
and those who must
approve and administer plans and/or ensure compliance
with the regulations.
Top law firms such as Weiner Brodsky and Ballard Spahr
will be
participating, and attendance is limited to ensure
adequate Q&A
opportunities.
Here is the agenda
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2RmC9evbNhxXTP5b2Eu97jn9rsqyp7fYqJm
eeEIq4attBGiogrCXbsI7Cibnn7b0lZ_gUkXxbdrjvsQcOg8ESu7zV9Xn426VKyO9becFcpT6k0G
ARXEzDRnBFfLZtb05zfMuQdpgiQUy5BXjtau-8iKyxKcIeHTDlRFdpxWggP5fDbuHJ_HSQS-].
This roundtable is offered primarily to companies that
participate in the
Mortgage Banking Compensation Survey Program, but here is
the registration
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2RMANFAORJPZ2oMD5fPQ5PCCIu52G_8uD3g
aN4HAxZDwGaRi5F7NFo8MqOSy8FxASIOqibrHQvxYxwp7PWmSY4xr9X37h2JRBYN-BYmD-c0vQ0v
AQNoAoQv9cpLnO3aaOdLtoi896fE7hdzOltVuFKEA59vZ_qQdAR_DIHroYws6oadFqmJsd-dJO32
xpl3Bdc=].
Direct Valuation Solutions, Inc. (DVS), a provider of
cloud-based valuation
fulfillment software, is looking to expand its sales
force by recruiting
regionally for the position of Director, Business
Development. Regions
presently include the South, Southwest, Southern
California and Pacific
Northwest. The DVS
Platform provides an efficient,
compliant, cost
effective and profitable way for lenders to reclaim their
own appraiser
panel and automate the appraisal assignment, workflow
tracking, quality
control, payment processing, UCDP upload and borrower delivery
of the
completed appraisal.
The ideal candidate should have strong relationships
developed through mortgage banking and correspondent
channels and be a
self-motivated professional.
For immediate
consideration, interested candidates should send their resume
I have been asked to assist a well-established lender in
its search for a
head of Secondary Marketing. The company, a retail lender
in the Washington
DC Metro area, currently has production volume above $40
million a month
with a growth rate of almost 100% in 2013. Candidates should have a minimum
of 3 years' experience with mandatory, best efforts,
product development,
direct sales to Fannie and Freddie; securitization
experience is a plus. The
company offers a great compensation package with matching
401K, and its
origination staff is knowledgeable and seasoned. The position is an
executive level position at its corporate office.
Interested applicants
should email me at rchrisman@robchrisman.com
(please excuse any delays in response as I am traveling
in Indiana and
Illinois today).
A week ago this commentary noted, "Rob, I keep
hearing about Fannie Mae and
Freddie Mac, i.e., the FHFA, wanting to encourage
'private money' coming
back into lending.
How are they doing that?" And I wrote, "There
are two major tools at their
disposal:
guarantee or guarantor fee (gfee) and loan amount. It is
widely anticipated
that a gfee
increase announcement will happen before too long, probably
giving lenders a few months to prepare. And the general
feeling is that the
agencies will increase gfees to the point where they
think private capital
would have to be compensated to assume more risk. But loan amount changes
could also be in the cards. Taken to an extreme, if
F&F lower loan limits to
$100k nationwide, think of what that would do to
residential lending! No
group is going to be in favor of that, mind you, but it
is an option." I
continue to receive questions about potential gfee
increases, loan amount
decreases, loan level price adjustment changes, and the
relentless adverse
market fee of .250. Ask your Fannie and Freddie rep about
the certainty of
these things, as I don't claim to have any inside
knowledge. But I do know
that F&F announced some major upcoming changes
regarding QM (ability to
repay) polices to procedures, and I explain those a few
paragraphs down in
the investor section.
There is a big swing toward retail origination, although
many argue that the
death of the mortgage broker has been greatly
exaggerated. I would tend to
agree, and many look at the mortgage broker as a strong
model to build their
business on and use this model to reach consumers.
Certainly there are
non-bank wholesale shops anxious to pick up market share
vacated by larger
lenders. That being said, mortgage brokers that use table
funding saw their
production market share fall to 9.7 percent in the second
quarter, matching
the yearly low established in 2011, according to a new analysis and ranking
by Inside Mortgage Finance. Per the study the retail share reached an
all-time high of 64.6 percent in 2Q, with correspondent
coming in at 25.7
percent, one of the lowest shares in several years.
"The surge in retail
production appears largely tied to ongoing strength in
refinance activity.
But lenders that are turning their attention to the
purchase-mortgage market
should consider
that correspondents (34.8 percent) and brokers (22.0
percent) had higher concentrations of purchase loans than
retail producers
(19.3 percent) during the second quarter, based on Fannie
Mae/Freddie Mac
figures compiled by IMF." I don't have a
subscription, but here is the story
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2QJYGGEJ2xYmxctckKCxHBucrjZuXHU6xp4
sZMLo_mrqKuHW6dbwPkJAykEB6lokk4ZcRS-zpcyqnnCcnQRRPfHWSOEeyWiXY56md42opTTyB8P
q9LqRnEtGflGeti2Wvm9dALD5zI9A-Ly7Tkg5U-UJTliJvFx-PJQgs4cOPF1CWbFly2I0ERTw2-T
94sX0dI4wlV1h9N2Scqd3olN8bwpiUHJPJzV3_zojpmKPlT1Ac2TWO5tec1KA9XL6pHDnONB6UrM
XuSvnePICqiPPWx298bgd1ELGK9mdv5TN3oXKjWyT_JkLbOUkcMZQhMeBzzC8mhDZx0t6UwGlxfI
81tkasTeKjz7q9hUEXhaAazLqr-74o-EHPsW636fcjb7Pp8=].
Hey, if you have $3-4 billion, how about helping
Weyerhaeuser out and buy
its home building unit? Yes, with builders on the upswing
it will be
interesting to see where it trades
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2QQbyIzTaNtdorU5Avoka0YMJwB930r0jL_
zwcBHBlt-JhKEuiJRvMCJ6yPK2wSPqJxmCEKqwGDLAHWcmVC87FANS-qVH4Y5DD7Z-zIgJ92uKgI
zVCgpXYoK1QudGGkjnaHCDJu5LEErUFvsclYv-WlSUiopndsnrCsddOU3e0ZA6ZFRAiBEETb].
Let's continue on with investor, vendor, training, and
agency updates!
Fannie recently noted that as the lending market turns
its attention to
adjustable rate mortgages, and more specifically to cap
structure, it is
important to note that Fannie Mae accepts delivery of
both 2/2/5 and 5/2/5
cap structures on 5/1 ARM's.
However, in the mortgage-backed securities market, 5/1's
with the same
coupon but different cap structures trade differently. A
5/1 with a 2/2/5
cap structure generally trades behind a 5/1 with a 5/2/5
cap structure due
to the potential for the investor to forgo yield when
interest rates rise.
According to Fannie Mae's trading desk, currently 5/1s with a 2/2/5 cap
structure are priced back 20/32nds (or -.625 pt.) vs.
same coupon 5/1s with
a 5/2/5 cap structure. FNMA believe an increase in 5/1
(2/2/5) issuance
will lead to more liquidity in the product which may
improve pricing levels vs. the 5/2/5 structure. Since 2012,
issuance of FNMA
5/1s has been nearly $13B, with almost all the
production, 99%, being in a
5/2/5. This is mainly attributable to the fact that, when
rates rise, a
lender who wishes to make the same return may need to
offer a higher rate on
a 2/2/5 vs. a 5/2/5, given the pricing differences that
exist in the
marketplace today.
Vantage Production, LLC, the mortgage industry's premier
provider of
customer relationship management (CRM) solution that
delivers superior
marketing, sales and content, announced that GSF, a
leading wholesale,
retail and consumer direct lender, has selected Vantage's
Integrated
Production (VIP) to improve the effectiveness and
efficiency of sales and
marketing across all of its businesses.
The Ohio Mortgage Bankers Association will be presenting
a regulatory
training class for non-depository LOs entitled
"Comprehensive Loan
Origination under the CFPB"
in Cincinnati, OH on September 4th. Loan officers will
get a review of
compensation, Truth in Lending, RESPA, ECOA, HMDA, the
Safe Act, advertising
rules, and Fair Credit Reporting Act. The same training
will also be
available in Cleveland on October 2nd. Contact omba@ohiomba.com
[mailto:omba@ohiomba.com]
for more details and registration info.
The New Mexico Mortgage Lenders Association, in
conjunction with Fowler
Financial Education and Consulting, is presenting its
SAFE Comprehensive
Continuing Education day on September 19th in
Albuquerque, NM. This
eight-hour course satisfies all CE requirements for New
Mexico loan
originators and includes a 90-minute training session for
the Uniform State
Exam. More information can be found on the NMLSA's
website.
This year's New England Mortgage Bankers Conference is
scheduled for
September 18-20th in Newport, RI. Along with training
with reps from the
GSEs, a wide variety of topics will be covered, including
servicing released
products, consumer advocacy, responsible lending, state
banking audits, top
fair lending concerns for the coming year, and realtor
partnerships. For
more information and registration links, reach out to any
of the
participating state MBAs.
The Washington Association of Mortgage Professionals is
holding its annual
Business and Humanitarian Leadership Awards night on
October 18th in
Seattle, for which nominations are still open. To submit
nominations, go to
PikePlace
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2QxXAKkUY06qJVEA4PYwhdwMwS8yZdHirKX
vkZ2JWUjQYnRqT2kcU3fSgOVi09hLfc3XqCNASTnPXYVJPkCGPZOW4ZOXJDU8U2Sif80qdQ85ytH
xF096bAJtbuzGDVxLIwixYvljITsH_MDDh85Q358GnTP0W8tzzAGMboJYKUUbQ8CyIWlVUVUX-Az
lC8cQ9SNjt7MWxQqTi9k7WpKVva9bb8gLKTBMcS6D0LXd3zdX8UkyI5GifEDMmnZFEOutXScIB4B
rxYk0V3me6_Oi1ln].
The Texas Mortgage Bankers Association will be hosting
its annual Education
Seminar and Marketplace in Dallas, TX on November 12th
and 13th. This year
the program, which includes both separate sessions for
operations and sales
as well as general sessions on technology and compliance,
will focus on
improving the efficiency of internal processes and features a best
practice
forum of prominent Texas CEOs.
To register, see LongHorn
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2Qc8nhhH2TVNcffYIblZPKUFrzW6btnirEq
flw2GdEaFZzOPqaghWayeCnet7sH3KiLGsYBVxz6uw6-TSs7Byxvn7zzTqG1nX4hn9xb3kOGJVZZ
UAjju5xQRhCzzaAKMGo=].
Marketing opportunities are available as well; refer to
the sponsorship form
at MoreLongHorn
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2TVPbm_zYPQaLnTy87dhXNFJ3pJ_Pu9m559
3CCp6wGdC7KUx0n0Mq3FKmideh83utlSjJ0MObwkR8DdTX8smwksQSUBfYTHlanO8ELt9H03ObQu
8H1ToVSB_yl_1vgrnf3J52RUMG7lurg14CxpR0cI4hAyHYgkeKA=].
A quick note on Mortgage Harmony. In Saturday's edition
it was noted that
"Mortgage Harmony and Denver-based LenderLive have
entered into an agreement
whereby the former will begin servicing the latter's
loans. In addition,
LenderLive will offer the
HarmonyLoan product, a consumer-initiated
interest rate-resetting mortgage with a recurring LO comp structure, to its
borrowers." The "former" and "latter"
were backwards, and LenderLive will be
servicing HarmonyLoans.
Yesterday Fannie and Freddie announced
updates/refinements to their policies
and procedures
dealing with QM. Here is Freddie's bulletin, for example:
"To help you prepare for the Consumer Financial
Protection Bureau's (CFPB)
final rule implementing the ability to repay (ATR)
provisions under the
Truth-in-Lending Act, we are announcing updated mortgage
eligibility
requirements in today's Single-Family Seller/Servicer
Guide (Guide) Bulletin
2013-16. The Guide Bulletin supports the announcements
we made in our May
6, 2013, and July 2, 2013, Industry Letters. With these
changes we are
supporting your success in today's housing market by
providing further
clarity of Freddie Mac's mortgage eligibility criteria.
"Review today's Guide Bulletin and the applicable
Guide chapters for
complete details on our revised requirements summarized
below. Effective for
mortgages with Application Received Dates on or after
January 10, 2014:
Mortgages with original maturities exceeding 30 years
will not be eligible
for sale to Freddie Mac. Prepayment Penalty Mortgages
will not be eligible
for sale to Freddie Mac. We are introducing new points
and fees thresholds
for mortgages to replace the existing Freddie Mac five
percent points and
fees threshold. For higher-priced mortgage loans, we are
updating our
requirements for Freddie Mac Relief Refinance Mortgages
and adjustable rate
mortgages that have initial periods of seven or 10 years.
Mortgages with
original maturities in excess of 30 years and Prepayment
Penalty Mortgages
must have a Freddie Mac Settlement Date on or before July
31, 2014.
"It is important to note that while Freddie Mac has
established our own
mortgage
eligibility requirements in response to the CFPB's final rule,
Freddie Mac will
not make the determination if a mortgage is exempt from,
or complies with, the CFPB final rule or whether a
Seller's designation of
the status of a mortgage under the CFPB final rule is
correct. These
determinations of compliance with the CFPB final rule and other applicable
laws are the Seller's responsibility. Please review
today's Guide Bulletin
for other important information and reminders,
including, but not limited
to: ATR covered and ATR exempt mortgages, treatment of
Freddie Mac delivery
fees, mortgages evaluated through LP, application of the
representation and
warranty framework on the new mortgage eligibility
requirements, purchase of
government mortgages, uniform Loan Delivery Dataset
requirements, and
changes to negotiated provisions." Here is the
bulletin
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2SHIDfPeGhWgUJ2ZDT_n50gZUBsqbTaXqAQ
ao4-LvlsA9Z0h4bEyBoAZSiTNuna5zl78eS6ilVvf0_vV9Sx0FN90NnKeW0xtm47OCJMgaBvNPB3
9icbkfzXuZO5Q-eP1BTl8-X4qPPGOCYR6mo_If1fwy5f9QWAeSKpQZezpW2zvQ==].
Fannie issued its own announcement
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2SI2WiKt1PkzkzsU9hlc9ZPdM17ZkZhMgGM
EGuIYsSxAS4ZD_qsiDgEHwBa9CV6r-_6bAWXhmYGugnMSUPyh1KAqHwOb7olONTNMdr7WQgdHJRF
9nJd6Wzh7__3N6KjYUQDvdd99yVayKZ1hkyg6EE9yN1j8H1ZdBY=]
(yes, they're still separate companies).
Fannie Mae will be upgrading its test environment for
loan delivery on
September 10th,
the changes to which will allow users to log in using loan
delivery production user IDs and passwords and test with
DU and Appraisal
Doc File ID test data.
For those interested in learning more about reverse
mortgages, Fannie has
published a new job aid to its Know Your Options website
that specifically
addresses the needs of seniors. A variety of educational
information and
recourse are now available at http://knowyouroptions.com/reverse
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2StH1qmTvnf3TvaYqlNHkF9V5WlZuOS3gf3
8o1q2-qWReDwQZDO3-2ypGLgbF16Op53pL0jqm57c2Xzrqq6T1CKoVNyJ7TYkozwIoiP6PGPY6VP
dVkW2zQ70Wvmlwg2Oq0=].
The market goes up some, down some. Fortunately yesterday
rates were down
some, basically evening out Monday's price and rate
movement. Higher yield
levels attracted investor interest, until they don't, and
there was also a
bid for quality as emerging market growth risks are
increasing, until the
market decides to focus on something else. Interestingly,
selling production
picked up, although I remain to be convinced that lock
desks are terribly
busy. In fact, there are plenty of rumors of cutbacks
around the residential
lending world - so maybe remaining personnel are busy.
Anyway, the yield on
the 10-yr went back down to 2.81% and current coupon
agency mortgage-backed
securities improved about .625.
But now it is Wednesday, and this week's main risk event
is at 11AM PDT with
the release of the
FOMC minutes. A September start to the Fed's tapering of
its asset purchases is seen as largely priced in and so
further indications
that it is likely to be the case should have a limited
impact. There will be
a lot of jawboning about the whole release of the
minutes, but it will be
interesting to see if the Fed lets on about cutting back
on Treasury
purchases or MBS purchases. We'll also have the Mortgage
Bankers
Association's release of its weekly report on mortgage
applications; later
is July's Existing Home Sales (5.15 million expected from
5.08 million
last).
The 10-yr closed Tuesday at 2.81%, and in the very early
going this morning
it is trading at 2.83% with agency MBS worse a shade.
We want new blood in the real estate and lending
business, and the
government demands perfection in lending. But check out
this 40 second clip
on how, apparently, some of our kids are being educated:
RightToBeWrong
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2SN7JBfiJkv4qtqzA2hCWy6tgNa4QVLEKOU
w_pYN2CNuSLO1_Ks_lk1jD2Md2dl36uspPMpo6rexQTtOUl0_Zz4kSj7vN3dSCY9NsWlkNVUxf-f
sRn0EsST4YOLs4nAAQCJBhGAYJK0luhaNznwt8Ct].
I don't think I'd want any of these students involved in
administering
life-saving drugs to me, or doing my underwriting...
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=001iauAZlijn2RaInE4CPn7q6Kf--alSQvMsgrzvOSLnGP2
EfGtmXxu2_pxfw1rfdeujxZyct0RJpKssrT5JqNWJ6NtQj-_QofakYeUtjAFJlGyHop2yoDbNu1d
ydVBk143].
The current blog is, "A Little Primer on Reverse
Mortgages"." 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?e=001iauAZlijn2SAV6hrDLUgB-cC1y4yQIkq8_WbYPcAbV_Y
Nimo3JmMRt-BcH-0wTe-wCdUIr7_yLy6xJEpdIhmQYMyEA3_jKnSGD-GHZa1hB9QAT3EORvE-Fyy
l5LGAD_lQVochnAY-T-a_Hy4E5aXvIlettGR2vsTSLiAMq__4VMQhpBYJLlFPQ==]
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2SUwgXmdu8JT7N40c4nybs8Aygo_xsz4iEq
s5S1wpim7dto91AVCV-QzTZ1Id4kuHW9TLmTOtVvGltOvcEFqQRisxPGtmehaMk_EHqZOIK8Bvsg
64AsaP44WaDCX3_lia1ICYFP_qafebjMV3MKk_Kb].
For archived commentaries or to subscribe, go to www.robchrisman.com
[http://r20.rs6.net/tn.jsp?e=001iauAZlijn2QV4Tw8WrjHYphHm3f2nqZljM6YVdMUM5Fz
UCklL8IPVcXHeSYB9HoIBWbatfxJ-vA9etooq7MC0eXDKWvODh9K59WqpWLcjg1KsBB_wp2QcDBJ
E0eNMJfu].
No comments:
Post a Comment