Mortgage News and Market Snapshot provided by:Global Home Finance Inc.: Warehousing For Brokers

http://globalhomefinance.com

There are lots of training videos out there. But there aren't many 0% down

payment programs from the government - the USDA is about it. Here is one

AE's video on the USDA program (among other topics) to his brokers:

CanYouDoUSDAinDetroit?

[http://r20.rs6.net/tn.jsp?e=001qBBPQ-CMkDUXXhtS8bIy8nO6DtQwIqCwq37NpivHy9LR

amULIXNmIhRotM_A7EnTgac8zsCAC9dWzFVYrpa4sBYeNMNLp5buEoGN603xEeQqorx_K7DFEehv

9iWrhxoZBUOkOpd8Y2EbV4w6BQ22BEPHI6O41dVjq98wKKqHMalztcqUiiO561WbI9VcnLI-GSl8

t1SpYMI=].

LOs need to stay up on things! And it is tough to keep up with the job

market. For example, we all know that there's been a slowdown in mortgage

origination that has pushed companies like Wells Fargo & Chase to announce

thousands of mortgage-related job cuts. (The MBA estimates refinancing

activity will drop 22% this year given higher interest rates, and the fact

that most people who could refinance did, which certainly influenced Wells

cutting 20% of its 11,406 LO work force.) But Wells Fargo said it will hire

about 5,500 people nationwide to support growth in its brokerage, private

banking and retirement business lines. Same skill set? Perhaps.

But today in mortgage-land we have an established regional Appraisal

Management Company seeking a Vice President. "The primary focus of the Vice

President will be to build, manage, market, retain and mentor a professional

appraisal management staff. The candidate will also be tasked with managing

the day to day operations of the AMC from appraisal coordination,

accounting, marketing, business development, QC, dispute resolution,

appraiser interaction and client relations/retention. Commencing starting

salary will be $60,000 (DOE) per annum. In addition to salary, the AMC

offers an existing staff reporting structure, robust appraisal management

software platform, per unit 'New Account' bonus opportunity, ability to

affect change in a growing organization and to prepare Vice President for

higher level executive position within the company." The candidate must be

located in or be willing to relocate to the Reno, Nevada, area. Please send

resumes to rchrisman@robchrisman.com [mailto:rchrisman@robchrisman.com]. (I

am in meetings and traveling today, so please excuse delays.)

And Florida Capital Bank Mortgage recently streamlined its Operation's and

Production areas in alignment with future market conditions expected in the

industry. These changes are designed to allow the company to offer improved

pricing to those customers who can consistently deliver quality monthly

volume. FCBM is also greatly expanding its warehouse programs to both

brokers who need to become lenders as well as to those customers who are in

need of traditional warehouse lines. At this time, FCBM is looking for

several top performing Mini-Correspondent and Warehouse Sales Executives who

can cover larger territories. Interested Sales Executives should contact

Tommy Adkins at tadkins@flcb.com [mailto:tadkins@flcb.com].

Brother, can you spare a dime? That was a song title during the Great

Depression.

But in JPMorgan Chase's case, it may take $6 billion - that is the amount

that the FHFA is seeking as it claims Chase misled Fannie & Freddie:

HelpUsRecoverTaxpayerMoney

[http://r20.rs6.net/tn.jsp?e=001qBBPQ-CMkDVsC-Qqx1Th7cH34EY6HcXFAAuRVWo9fpQn

LqIfGERk0EEKC3nxOmJL2mt4nAELZKswIs3WrNyeoQIce8gq6cO8XAA6jI1L6SZfMnEF9UYJmOLq

uafXOGaVA_f88Wk_TA-6YMmA5eQ1w8Sjto-p7y4j_vZvO2eoIplsbibZ1A5dWMyStMT3egA8GOzq

qPb5c2A=].

I'm worried the courts won't have anything to occupy their time with, once

mortgage litigation backs away from its six-year highs. In July the 8th

Circuit Court of Appeals, joined the 10th Circuit (remember there are 13

judicial circuits, in case the question ever comes up at dinner), in ruling

that "notice alone within the three-year period is insufficient to validly

exercise a right to rescind." Ballard Spahr writes, "While it held that the

borrowers had not preserved their right to rescind because their lawsuit

seeking rescission was not filed within the three-year period, the Eighth

Circuit nevertheless ruled that the borrowers had a cognizable claim for

damages based on the bank's refusal to rescind. According to the court, even

though the borrowers' right to rescind was extinguished, their failure to

rescind cause of action accrued when the borrowers requested rescission and

the bank denied their request. Since the borrowers filed their lawsuit

seeking damages within one-year of the denial, the court found their

damages claim was timely. However, the court ultimately denied the

borrowers' damages claim because they had not established TILA violations

entitling them to rescind their loan."

Speaking of lawsuits and lawsuit potential, according to an American Bankers

Association survey, at the end of June 60 percent of vendors had not told

their banker clients when they will be ready to comply with the Consumer

Financial Protection Bureau's new mortgage rules. The survey was aimed at

senior mortgage executives of ABA member banks to learn more about their

overall implementation efforts and the progress that their vendors have made

in delivering applicable technology. "This survey confirms what we've been

telling regulators and Congress all along: banks need more transition time

to implement these mortgage rules," said Robert Davis, executive vice

president of mortgage policy at ABA. "Community banks in particular have

indicated that updated software, programming and training are big concerns,

and training can't occur until systems are operational." Most banks, 79

percent, will use vendors to create software and systems that will allow the

bank to continue making mortgage loans in compliance with the rules released

earlier this year by the CFPB. Twenty-four percent of bankers said help will

not be available until November 2013 or later. Once banks receive materials

from their vendors, they will need additional time to adjust and test the

vendor product and train staff. Eighty-two percent of banks expect to take

two months or more to fully integrate the vendor's products once they are

made available to the institution. "There simply is not enough time. Without

a transition period, we will see fewer mortgage loans made available,

jeopardizing the housing and economic recovery," said Davis. Here is the

full write-up: YouCan'tSayTheABADidn'tWarnUs

[http://r20.rs6.net/tn.jsp?e=001qBBPQ-CMkDVvjuGZiPrVpQIldhbDYtcnpTqyXfbVfm1K

td_GXh1VAv1TUQcz-LMXbyVL_blzKihLsmF2eCqtOg8g_EPjuAoPy9p3J1PBaKFCBTTCdM6kLDkz

dqjXPyyYhXoBfP911HMxLJjEMpDYDzj8KOQGqKHyCZs-wvXju8Nab8W8c8Tp6ONFOm_0C1_sL4Q_

wP93igBiQQWR4SvUkWdVwnWtqPpJjKf8yGOTlsm7AZdC-mWzcg==].

Last week this commentary took a swipe at providing information on lenders

"renting"

space from real estate brokers, but there continues to be interpretations of

what the government's rules say. Teri Hodgett sums it up by saying, "Paying

higher than market rental fees in exchange for referrals is a clear

violation of Section 8 of RESPA. From the link below: 'HUD, therefore,

interprets Section 8 of RESPA and its implementing regulations to allow

payments for the rental of desk space or office space. However, if a

settlement service provider rents space from a person who is referring

settlement service business to the provider, then HUD will examine whether

the rental payments are reasonably related to the general market value of

the facilities and services actually furnished. If the rental payments

exceed the general market value of the space provided, then HUD will

consider the excess amount to be for the referral of business in violation

of Section 8(a).' More here: HUD

[http://r20.rs6.net/tn.jsp?e=001qBBPQ-CMkDWRDAhFZJ-ua7WyWVVI12pOtJtIj39sJESl

T5weRiMQK3XuE3xM91j0cDECBZGBTcl98w4YtwfLlKFpZHQUysMfFNelPPMjeTE-YvL5EvQZYj0n

yQjGIwfuBkLG2wjoaBQxwBXGm8RpzG8cees531Hm3vhreg4V56svOhNQIEwS1q8KasXs0QWDeERM

rG2w557yy3jubMmDVVmaQMNAaar6]."

Thank you Teri!

Let's move on to some bank, agency, and vendor news.

Heritage Bank USA ($978mm, KY) and Heritage and Sumner Bank & Trust of

Gallatin ($184mm, TN - where my grandfather was born!) have agreed to

terminate their merger agreement, due to Sumner's failure to meet a certain

performance requirement under the merger agreement.

But in Texas, Independent Bank ($1.8B) will buy Live Oak State Bank ($124mm)

for $20mm (50% cash and 50% stock).

KBW announced that The Boards of Directors of 1st Constitution Bancorp

(Nasdaq:

FCCY), parent company of 1st Constitution Bank, and Rumson-Fair Haven Bank

and Trust Company (OTBB: RFHB) announced that the companies have entered

into a definitive agreement and plan of merger, pursuant to which Rumson

will be merged with and into 1st Constitution Bank, with 1st Constitution as

the surviving bank holding company.

And Mercantile Bank Corporation (NASDAQ: MBWM) and Firstbank Corporation

(NASDAQ:

FBMI) jointly announced the signing of a definitive merger agreement under

which Mercantile and Firstbank will merge to create one of the largest

banking institutions headquartered in Michigan.

Accurate Group Holdings, Inc., a Cleveland-based, technology-enabled,

outsource provider of real estate transaction services to mortgage lending

and loan servicing clients, announced today it has closed on the acquisition

of Preferred Appraisal, Inc., based in Northbrook, Illinois, for undisclosed

terms. While Accurate successfully resold the Companies' products for years,

this deal provides Accurate ownership of the industry leading Desktop

Appraisal Solutions known as ValueNet, ValueNet Plus and ValueNet Ex. (Inc.

magazine has ranked Accurate Group NO. 867 on its seventh annual Inc.

500|5000, an exclusive ranking of the nation's fastest-growing private

companies. Accurate Group also ranked No. 26 of the fastest-growing private

companies in the real estate sector.)

Way out in Northern California, Luther Burbank Savings announced plans to

open a new division in Southern California that will issue mortgages

directly to home buyers. Previously, the company made home loans through a

network of independent brokers (wholesale) or concentrated on apartment

loans. The company has set a goal to originate $1 billion in loans through

the new division by its second year of operation - an amount that would be

roughly equal to the total loan business that Luther Burbank will conduct

this year, per CEO John Biggs. LBS ($3.6 billion in

assets) hired Jay Robertson, former president of First Capital Mortgage in

Los Angeles, to run the new unit. In an interesting twist, the new division

will offer not only Luther Burbank mortgage products but also arrange loans

from other companies.

Fannie Mae released its STAR servicer rankings yesterday, and to see if

you're company is on the list, here you go: GoldStarFromTheTeacher

[http://r20.rs6.net/tn.jsp?e=001qBBPQ-CMkDX3H1ySphfbn8W1MG7KzNNxGouQHNkFVn4g

H0SNKsAfeTD5H3d17vRbLrDhVSWeXJaHaYTmDECwKW2Jfjk-jobocgg5zFD2EpHVPeb_yZJw3et0

qyYYAOUOqCMo-STFCigmTy2R0FLe4exEEIWjSbSqyqBiFciwzIrmn8gUqrD6JcalV3JO7NCnaaTc

Ad2Y2vmhriXuRoRPRPzmlQqZxMIhCFTcLJGNalrBj_tJwxywQap5nI5KbtVDwIR2ZN6hjga8zv5F

qt8puiY1CTnTmikFFEGFxpuVxX-ZL7kNA_fzhw==].

On to the markets! Frequent readers of the daily commentary already know

that our cat Myrtle is a supply-side contrarian, but should note that our

other cat Gusto is an aggregate-demand Keynesian (you should hear some of

their arguments). However, they both agree on one thing: bond market

volatility is rarely economically beneficial to either discipline. So they

both lifted their heads from the food bowl when I read aloud a recent bond

market report: http://libertystreeteconomics.newyorkfed.org

[http://r20.rs6.net/tn.jsp?e=001qBBPQ-CMkDW9hCtau_P_TYv3EWkiE_8f4xOAIl5WEHYS

Q6_gR9SkVlt2wbrd3CPYsnUUPvSb4U9oRFYFXxn2dIiJFTkrSYT3PTOfuVn1sc69BpuE92gYJLQr

ey7pzMdvksP1Ea3lKKnq6HpaF_VYIg==].

Taper, taper, taper. It is already priced in to the markets? Probably, but

we may see a small shock higher when they actually do it. Right now the

smartest minds in the room think the $85 billion a month will drop by $10

billion in Treasuries and $5 billion in agency MBS. And the timing of the

scaling back isn't the most important policy decision due out of the Fed.

Instead, we should really be asking at what pace will tapering take place?

During his recent public remarks, Bernanke suggested a somewhat linear rate

of cuts wrapping up by mid-2014. The Fed clearly is watching mortgage rates

closely (this was acknowledged in the FOMC statement this week and Bernanke

has remarked on the importance of the housing rebound several

times) which is leading some to think Treasuries may be tapered first so as

to maintain the purchase pace of MBS for the time being. And is the Fed

watching loan level price adjustments, which have also contributed to higher

rates?

Yesterday morning the financial markets reacted to the risk of increased US

involvement in the conflict in Syria. (Here we go again?) The resulting

flight to safety helped MBS, and the bond market in general, and hurt

stocks. Oil prices have increased as well. The Conference Board's index of

U.S. consumer confidence increased to 81.5 in August from 81 the prior

month, better than forecast. We also had the S&P/Case-Shiller Index, with

its two-month lag, showing home prices increased in June - property values

climbed 12.1 percent from the same month in 2012 after rising 12.2 percent

in the year ended in May, the biggest gain since March 2006. In Nevada "Lost

Wages"

was up 25%!

Despite supply and demand, yesterday MBS prices could not keep up with the

Treasury rally, and near the close of business Tuesday prices on 30-year

FNMA 3s through 4.5s ranged from +.625 to +.250 (3.5% Fannie is back above

par - 100) while the 10-year Treasury note improved .75 in price. Per

Thomson Reuters, Tradeweb reported volume in mortgage-backed securities

remained below normal at 81 percent of the 30-day moving average.

Here on Hump Day, as folks gear up for the Labor Day Weekend, there isn't

much scheduled market-moving news although we have a $35 billion 5-year

T-note auction at 1PM EDT.

We'll have July's Pending Home Sales at 10AM EDT. And we'll have the MBS's

applications numbers. In the very early going, rates have moved a little

higher, and the yield on the 10-yr., which closed Tuesday at 2.72%, is back

to 2.74% which suggests MBS prices will be worse about .125.

Part 2 of 3 of YOU MIGHT LIVE IN COLORADO IF...

Having a Senator named "Nighthorse" doesn't seem strange.

A full moon has never kept you awake.

You have an $800 stereo in a $300 truck.

Knowing that Texas and California are downstream gives you a certain feeling

of satisfaction when you flush.

You carry your $3,000 mountain bike on top of your $500 car.

You have an MBA and are frying burgers at a McDonalds in Vail.

You own a big dog named Aspen, Buck, Cheyenne, Tex, or Dakota who wears a

bandana.

You think a pass does not involve a football or a woman.

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=001qBBPQ-CMkDVN8w2a7tx6N8MWXmKgA_GBfI7FWljxpzDq

e9PbOKoeS8F1dzW7H8GtacnFORCJeOKa0bl42_m1m9YjUYxz90oeD3uRph4PFQOiQ_z8lkeVMmq7

5njQek99].

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

Wednesday, August 28, 2013

Warehousing For Brokers

No comments:

Post a Comment