I have an aging dog, and was asked if I was going to buy
joint medication
for her old hips. I replied that I didn't think she would
qualify for a
medical marijuana card. That has nothing to do with
anything, aside from
finishing up the string of Colorado humor this week at
the bottom.
Speaking of "finishing up", Radian announced it
has entered into an
agreement with Freddie Mac on a pool of delinquent loans
which eliminates
credit risk on 9,756 delinquent loans, 12.6% of
delinquent inventory. RDN
paid $255 million to Freddie Mac and deposited $205
million in a collateral
account. The latter amount, less any offset related to
successful rescission
and denial activity, will be paid to Freddie Mac. The agreement relates to
a pool of 25,760 loans that were delinquent as of
December 31, 2011. The
agreement eliminates credit risk on 9,756 loans that were
delinquent as of
July 31, 2013 and on 4,586 "re-performing"
loans. The settlement reduced the
company's delinquent inventory by 12.6%.
Before all the folks out there working on other settlements
start
calculating percentages, remember that Radian had
previously paid $370
million of claims on this pool of loans. As part of this
agreement, the
company paid $255 million to Freddie Mac and deposited
$205 million in a
collateral account. The latter amount, less any offset
related to successful
rescission and denial activity, will be paid to Freddie
Mac.
As of July 31st, Radian had completed $10 million of loss
mitigation
activity that was deemed final under the agreement.
Another $140 million of
claims had been rescinded, denied, or curtailed but were
not considered
final under the agreement.
And residential lenders have a little less money to
settle buybacks. The MBA
released figures from its study showing that in basis
points, the average
production profit (net production income) was 75 basis
points in the second
quarter, compared to 86 basis points in the first
quarter. So volumes are
down, and lenders are making less on it. Secondary
marketing income declined
to 263 basis points in the second quarter, compared to
274 basis points in
the first quarter. One last thing before you click on the
site: total loan
production expenses (commissions, compensation,
occupancy, equipment, and
other production expenses and corporate allocations)
increased to
$5,818 per loan in
the second quarter, from $5,779 in the first quarter.
Here you
go: ReadItAndWeep
[http://r20.rs6.net/tn.jsp?e=001WDTh6q6defqbA8N56WghKY8fFOyyb2X67EuyLnZ_fRPj
MFLT26IkKy73KiyaaVYiBAes5NQE48iKLuz4jk5NFcrcwfxv_2fqXqDpQEGolI15MeMoVzEidQtT
GZ25Stl99osLmrzJrzhFTnRvHqPIGpatdtcxVAIVVbgN2PJ1eBY69-J2q3CKog==].
With their eye on margins, companies are very focused on
paying the right
amount to the
right employee, at the right time. This is fundamental to
ensuring that your organization hires and retains the
best talent while
simultaneously controlling costs and justifying
compensation to your
stakeholders. Did you miss participating in STRATMOR's
Compensation Survey
earlier this year? By popular request, STRATMOR has added
a TPO Sales module
and is reopening all of the original modules (Retail
Sales, Retail
Fulfillment, Executive Management) for a second round of
evaluation.
Be armed with compensation data from 40+ participant
companies as you head
into budget season.
The results will be cumulative from both rounds. For
full details, visit the 2013 STRATMOR Compensation Survey
[http://r20.rs6.net/tn.jsp?e=001WDTh6q6defp8LTawcgbRyE_pT-ouuidvgcuMTMigNVmL
n_Nm2s2i4cFZKFFb5AnrV9ZpVOAQaNy0zEPsQiLA0Q4doV5Ny-G4KLJ0P3dX8o18P5FRcigz81GY
Qobo6z6a]
website or email nicole.yung@stratmorgroup.com
for more details.
Another thing that is not helping the lending industry is
the continued
proof that all-cash purchases are on the upswing:
CashIsKing
[http://r20.rs6.net/tn.jsp?e=001WDTh6q6defod0DqePpQsOlsnRw63iGTbr4YhmQx9KYDF
7lkYKbIjvSte-kwou41PlesVFPLruRNa1-bPEmIj0jvtutHzlDeOmb9Q4h9mXWGlUWxoB1O1Te_L
zXDy6EwtuEEgFmWa78hxHQnuKiD2zSU0q0sh417Iw-PI_BQvDJnt59re3rY4U8XADDlhaTQsyXRR
Bbq-2M_fFHt22E9Ch4y0Bg7lVByXMIBjMzBCLnWwOOmoTYcmYw==].
Yes, cash purchases are very high, but how long does it
take to save up a
30% down payment, on average? Someone sent me an ad,
which I can't verify
the accuracy of, with a photo of a house with a
handicapped ramp and rail
leading up to the porch
with the caption, "With a 30% down payment and
taking 25.2 years to accumulate a down payment, we will
have to have grab
bars and ramps in first time homebuyer homes."
And in spite of more and more home buyers not having
monthly payments, there
are still
trillions of dollars of servicing out there, and pieces are
bought and sold all the time. But servicing doesn't
always trade in large
blocks - some investors want smaller, bit-size pieces in
the form of flow
deals. For example, "as exclusive representative for
Seller, Phoenix
Capital, Inc. (PCI) is pleased to present the following $50-75
million/month Fannie Mae flow servicing offering for your
consideration.
Seller is a well-positioned independent mortgage banker.
Seller is
interested in
entering into a forward commitment to sell and transfer a
portion of their production on a monthly basis, with
opportunity for future
growth. Characteristics of the portfolio include (all figures
are
approximate): $50-75 million per month, 100% Fixed, Wavg
FICO 763, Wavg LTV
75.2%, Average Balance $265-275k, Top States: CA (56.4%);
WA (14.9%); OR
(11.8%), 85% Owner Occupied, 76% Retail originations, 45%
Purchase loans
(55% in July). Obviously these numbers are for past
production. The written
bids are due
Wednesday, September 4, 2013 by 2:00pm EST - contact Brady
Dupuis at PhoenixCapital
[http://r20.rs6.net/tn.jsp?e=001WDTh6q6defrzG4D-nNnawdBJ9VNuVSuTsleFjjWHNMPb
HhMoJsQM1L-B7pII65I5XxI4VXweKYPtOEs3XryO0jBm9uX-w-31zBSAQV4EVZRFEfrVr4KAsA==
].)
Do you wonder what happens to ex-CFPB folks? In this case
legal firm
Morrison & Foerster LLP picked up Leonard Chanin
(former Deputy Director for
rulemaking at CFPB), and he has been joined by Tom Noto
(formerly Associate
GC at BofA for mortgage and before that GC of Ameriquest)
and Don Lampe
(ex-Dykema) in M&F's Mortgage and Fair Lending Team
with about a dozen other
attorneys. Here is the release for more
information: Talent
[http://r20.rs6.net/tn.jsp?e=001WDTh6q6defo0EVIhpZh2Kl-lCo71TMOWHMer9QYIS78F
Eidy0C6sNzSTtj_t6IVFTxhrzLUXQ6TBWEawVKxNg7EuxDtohATcRlkfzjs8sFeY0at1cwakXrSX
5LnHYQE4XlaImY7mI3U0DbjZCWedfsf9MTz4URmlyv2d3s6i81UyAHNK0A9YHgmEUKIsAuFcopG-
_W3ZsVZl8X23AGZKCBwT235FqbogDlbvzJAv1ptXUKW7RD-lOw==].
How about some upcoming events, lender & investor
news, and agency news?
The Mid-Atlantic Lender Conference is coming up, hosted
by the Mortgage
Bankers Association of Metropolitan Washington, on
October 9. If you're in
the DC area, you should check it out
[http://r20.rs6.net/tn.jsp?e=001WDTh6q6defpdAxCuFsC7soQBfakC9i3V3l2SCXZ4Apsx
98SzqtB9eYn1wYIg7rWiT_1nvestP2ybbwzJHQodkXc-tZBgp13yL74c_4qz4JUkUDQMWdQjjQ==
].
Premier Nationwide Lending (PNL) rolled out its
"Lock and Shop" program
through its retail origination channel. CEO Brad Sullivan
stated, "With the
'Lock and Shop'
program, we will credit approve a home buyer and lock in
their interest rate
before they find the property they want to call
'Home.'" With the "Lock and
Shop" program from PNL, if rates go up, the borrower
is protected. If
mortgage rates decrease,
the homebuyer will have an option to 'float down'
to the lower rates. John H. P Hudson, Production Manager and Vice-President
of Regulatory Affairs for PNL, said, "The threat of
increasing interest
rates stripping away a borrower's loan approval is
removed from the
equation. This means less fallout and a greater
opportunity to deliver
excellent service to our borrowers and referral partners.
In addition, loan
professionals want to work for a company that offers
these types of
innovative programs. Prospective employees are drawn to
the ability to offer
the 'Lock and Shop' program." (To learn more about
Premier Nationwide
Lending or the new "Lock and Shop" program, visit Premier
[http://r20.rs6.net/tn.jsp?e=001WDTh6q6defoCUpd8OXWCLK-AGbGY3t86R68RgWxesSQa
dxAaW-vpZg_S-wjL-1tvRvFXRSFMeUuv_JypaHj75ugwXi0E7P6aRx-onV5TPoPYihFinMhjNqKg
XlVvIuUC].)
Turning to jumbo loans, Keith L. did some digging, and
found as lenders
release Jumbo products, some will NOT allow you to use
them if an Agency
High Balance loan is available - even if the agency jumbo
is priced higher
than the true jumbo. "Investors that allow HB loans
to ran as Jumbos in
counties that qualify for HB: Wells Fargo will not allow
- must use Agency
HB if fits; Chase will not allow - must use Agency HB if
fits; US Bank - you
may use Jumbo in HB Counties as long as it qualifies;
Flagstar - you may use
Jumbo in HB Counties as long as it qualifies; SunTrust -
you may use Jumbo
in HB Counties as long as it qualifies." Thank you
Keith!
Prosperity Bancshares, Inc. (NYSE: PB), the parent
company of Prosperity
Bank, announced the signing of a definitive merger
agreement with F&M
Bancorporation Inc. (OTC:
FMBC) and its wholly owned subsidiary F&M Bank &
Trust Company ("F&M Bank")
headquartered in Tulsa, Oklahoma, whereby F&M Bank
will be merged with and
into Prosperity Bank.
Congrats KBW.
The Fannie Mae Lender Record Information application
(Form 582) has been
published on the website and is now available 24 hours a
day, as is an
updated accompanying job aid. As a reminder, lenders that
submitted their
fiscal year on June 30, 2013 are required to submit their
annual
certification via this form, along with their audited
financial statements,
by September 30th. A new REOgram job aid is also
available on the FNMA
business portal, which provides guidance on entering a
REOgram as well as
manual and bulk uploads; see the "Job Aids"
section of the Servicing
Learning Center
for access.
US Bank is now pricing its Home Possible products using
the standard
Conforming 30-Year Fixed pricing, with no additional hits
for LTV or credit
score. As a reminder, Freddie has reduced the Home
Possible delivery fee
from 150bps to 75bps on 1-unit primary residence purchase
transactions.
Per additional MI disclosure requirements, Fifth Third
has restricted the
maximum LTV for second homes and investment properties on
all products to
80%. All relevant loans with LTVs over 80% will be
required to fund by
December 1, 2013. As a general MI reminder, Fifth Third
guidelines state
that the coverage must be the more restrictive of the AUS
findings and the
applicable product guide, and reduced coverage mortgage
insurance is not
permitted.
PennyMac will be updating its pricing grid for the USDA
Guaranteed Rural
Housing program
and an LLPA for the 203(k) product, neither of which will
be available to lock as of August 26th due to the fact
that they are still
in the process of development. These will be launched at
a later date; in
the meantime, lenders are encouraged to monitor the
updates in anticipation
of the release.
Effective immediately, PennyMac has aligned its
assumability requirements
for the Freddie Mac 3/1 ARM product with those of Fannie
Mae, which allow
for an assumption during the life of the loan after the
initial fixed
period.
Franklin American has announced that, effective
immediately, when locking
Conventional FHLMC loans where LP is selected as the
underwriting type, the
system will require that the DTI ratio be entered in
order to proceed.
FAMC has updated its principal reduction guidelines such
that loans where
the compensation is paid by the borrower on a brokered
transaction, the
reduction result in a loan modification, or the reduction
is not applied
before the documented first payment due date are not
eligible for purchase.
FHA and VA loans must comply with the requirements of
their corresponding
agencies, while Conventional and USDA loans must meet
the FAMC requirements
(USDA loans are also subject to the Rural Development
guidelines).
For loans on properties in Texas, state law allows
principal reductions for
the amount of closing costs paid outside of closing up to
$1000. All loans
need to have the HUD-1 Settlement Statement reflect the
reason for the
principal reduction and amount, and in cases where the
reduction is applied
after closing but before the first payment is due, must be accompanied by
a
pay history disclosing as much.
Rates go up a little, down a little - yesterday bond
prices improved and
rates dropped slightly. But right before Labor Day, does
anyone care about
rates...is anyone going to lock in a loan and lose three
days? Maybe... we
all know rates have gone, and the Fed's weekly release of its QE3 purchase
stats confirmed that: for the week ending August 28 there was no buying in
30-year 3% securities for the first time since it began
purchases in that
coupon in February 2012, while 4.5s put in their first
appearance at $1.7
billion, or 11.6 percent, since QE1. Meanwhile,
30-year 3.5s made up 21.6
percent and 4s 51.4 percent of total purchases.
This morning we have a new batch of economic chowder.
There is no official
early securities
market close, but I wouldn't want to try selling an MBS
for a pipeline hedge after noon PST. We've had Personal
Income and
Consumption, expected +.2% and
+.3% respectively, and were +.1% and +.1% - slightly less
than expected.
+Later we'll
see the Chicago PMI and Consumer Sentiment. Thursday the
10-yr closed at
2.75% and in the early going is sitting around 2.76% -
don't look for much
change on the MBS prices that help set rate sheets.
Part 4 of 4 of YOU MIGHT LIVE IN COLORADO IF...
Your bridal registry is at REI.
The pet dogs eat better than their owners.
You are still mourning the loss of the Broncos/Ravens
playoff game and some
are still trying to thaw out from being at the game (and
actually hate Joe
Flacco more than Tom Brady).
Stores offer His and Hers matching bike or ski outfits.
Every mountain town has its own Micro Brewery.
Formal is a collared shirt.
Red rocks amphitheater does not allow beer to be brought
in to the stadium
yet pot venders go up and down the aisles.
In Colorado there is an additional season: "Road
Construction."
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=001WDTh6q6defrZSLKl-0RG8ruMC52Kb2oLgoC2ItkUNIcN
PNZmZUWhARxDAwZBy8ePAUJ4SUdcvL_TsSiwSZrzQbkvyrPuNIT2zO5k3I95GEP_qNJzyYbPwHlQ
tL688hQr].
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=001WDTh6q6defrjDlY03_ZYyMafwstXZrqvn8qObv_Eg-Sa
sbBFQ5pL1dP6-WD0jefHt6uPTfiFN-j-oOaQfThf9sgUCb-nQ48tJv-HVhW7iLYt8J1BDIEEDnSE
5w-Ep5hZLj4d5QnJkDVZkpHwPg9C8dXJYd6kkmB0YG2h04o7nkkGt9k5uzle9Q==]
[http://r20.rs6.net/tn.jsp?e=001WDTh6q6defpBCfVLJ9DjwDAl6CtitaPTPa5dOnY30z2F
IvV5fNcS_Ey3rpaS_KafRlbbroKz6SGewpx876Y3O4TH614YyYY9NML4pHlLt0ABNDPH6RF659-A
VEK08HV7mE9UBqNGY8JEd6SAH0dATh9rNkB5IQq1].
For archived commentaries or to subscribe, go to www.robchrisman.com
[http://r20.rs6.net/tn.jsp?e=001WDTh6q6defqFSs-07Hmw5YtjNVQ-XUcWjMvrXWYRI64X
oV5iFKnutn5GNChw8hkAjIfHoJFWhnJH71GWq8vt165jLk_AU-b6V4LFw-RGrzdlrXx50tZHqAF1
DuewgYst].
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