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I didn't make it to the gym
today. That makes five years in a row.
Speaking of five years, WAMU's
failure - the largest commercial bank failure in US history, took place on
9/25/08. For those of you who work for companies that have $5 or a $10
million in the bank, Washington Mutual had assets of $328 billion at the time
it failed. And for all of you who like tying up your entire 401K in your
company's stock, well, this was another lesson not to...
Yes, volumes are down, but
hiring continues. New Penn Financial is actively seeking production
opportunities. "New Penn, one of the largest and most
well-capitalized independent mortgage bankers in the country, was founded in
2008 and is nationally licensed and originates agency & non-agency loan
programs, providing opportunities for a wide spectrum of qualified borrowers. The
company is looking to add to its distributed retail network through
acquisition, merger or joint venture. If you are a high performing
retail business, we should talk." For more information, visit NewPenn or email Brian
Simon, COO at bsimon@newpennfinancial.com.
All inquiries will be kept confidential.
In an effort to expand their
growing retail branching network, Gold Star Mortgage Financial Group is
seeking to fill positions for Regional Retail Account Executives capable of
recruiting and developing retail branches in AL, CA, CO, CT, FL, IL, IN, MA,
MD, MI, MN, NC, NJ, OH, OR, PA, TN, TX, VA, WA, WI. Based in Ann Arbor,
MI and founded in 2000, Gold Star has
become one of the fastest growing mortgage companies and top 50 lenders in
the nation. As an Inc. 500 & Inc. 5000 company it has been recognized 4
consecutive years as a Michigan Top Work Place and more recently recognized
by Mortgage Technology Magazine as one of the nation's Top Tech-Savvy
Lenders. Gold Star is currently licensed to do business in 21 states. The
position calls for very experienced, self-motivated individuals with deeply
rooted relationships in the industry throughout the respective regions. To learn
more, submit resumes and inquiries to Daniel Milstein at dmilstein@goldstarfinancial.com.
Here's a nifty periodical put
out by our government, or more specifically HUD. "Lender
Insight" is meant for any serious lender doing FHA or VA loans.
"The goal is to offer insight to FHA lenders about what we see behind
the scenes in lender approval, recertification, monitoring and compliance,
and enforcement actions. Each issue will contain core information
designed to help our lenders better understand the trends we are seeing. The
newsletter will be distributed to readers via FHA's Single Family Housing
Industry Email List. If you would like to receive the newsletter, but are not
on the list, please visit http://bit.ly/FHARCPage to subscribe."
Here is another link: LenderInsight.
Hey, are companies on the
hook for fraud perpetuated by their employees? It sure seems that way -
just ask TD Bank: SeriousDucats.
Years after residential loan
originator compensation was supposedly set and regulated, it is still up
in the air - especially with regard to how branch managers can be paid. I
received this note from a respected attorney: "By making it illegal to
incentivize salespeople based on profitability, we in mortgage industry have
watched while our government legitimized the 'revolutionary' idea that the
most fundamental law of supply and demand (the profit motive) is somehow a
bad thing."
The question, apparently still
somewhat up in the air, is whether or not branch managers can obtain
profit compensation on the loans that the branch manager originates as an
LO, or is there an exception if the manager originates less than 10 loans,
and if so does the manager qualify for the 10 or less exception? There is a
school of thought out there that believes the LO Comp rule expressly permits
branch managers who originate 10 or less loans per year to be paid on
profitability (just not on any of the 10 loans). For that matter, you can pay
lots of people based on mortgage profits or overrides (including the C-Suite
execs) because LO comp doesn't apply to any employee or manager that is not
an LO (as defined by the rule). A branch manager, underwriter or
secondary markets guy who only deals with other employees and doesn't
interact with consumers can definitely be paid on profits, override or
whatever, because they aren't subject to the rule. Producing managers,
however, (with more than 10 loans per year) are definitely prohibited from
getting paid on net profits, but an override would be permitted.
Other attorneys, however,
believe that the definition of "origination" &
"originator" has changed such that a non-producing branch manager
is now an originator. Hence the 10 loan limit does not
safeguard them from the rules. That being said, they are as much an
originator as someone covered by the rules as a loan officer. And an
originator cannot be paid on terms of multiple loans by multiple originators.
That all being said, it is best to speak to your firm's attorney on their
interpretation of the QM final rule amendments and what will happen in
January.
Regarding the HUD
information on maternity and paternity leaves, and the requirement for a
paystub, the General Counsel of a well-known lender wrote and said, "I
wanted to comment on the maternity leave issue you commented on in this
morning's blog as there is another side to the story. I agree with you that
ECOA and the FHA do not allow lenders to single out maternity or paternity
leave. However, it is perfectly acceptable, and perfectly prudent as a
lender, to require anyone on a temporary leave of absence from work due to
disability or family leave to demonstrate their intent to return to work
following the leave of absence. The key here is that this must apply to
all instances of such leave and must not single out mothers on maternity
leave. Employees must be properly trained to know the fair lending
implications of the appropriate credit overlays and be able to effectively
communicate them to a borrower. If you don't educate you can end up with
complaints just due to the way your loan officers or underwriters are
communicating these decisions to the borrower."
A check of the Fannie
guidelines suggests that both yesterday's commentary and today's is correct.
For example, west coast Pinnacle Financial's underwriting interpretation of
Fannie's shows that for "Temporary Leave Income (can be included if the
lender has the) Borrower's written confirmation of his or her intent to
return to work, no evidence or information from the borrower's employer
indicating that the borrower does not have the right to return to work after
the leave period. And as long as they call it disability leave, then it would
be acceptable for requiring a paystub showing they went back to work.
Regardless of the date of return, the amount of the 'regular employment
income' the borrower received prior to the temporary leave must be used to
qualify."
On the MI side, a look at
MGIC's information, on page
55 & 56, for example, also reflects this.
Let's continue playing catch-up
on vendor, investor, and agency updates!
Pricing engine Optimal Blue
released its "Real Time Compliance Management" product to its
clients. Pretty snazzy.
Investment
banker KBW announced that in the Northwest the holding company for Banner
Bank the holding company for Home Federal Bank announced the
signing of a definitive merger agreement pursuant to which
Banner will acquire Home. The combined company will have approximately
$5.2 billion in assets and will be the fourth largest Pacific Northwest
headquartered bank as ranked by assets. It also will have a top 10
deposit market share position in Washington, Idaho and Oregon with an
established platform for growth and continued operational improvement
throughout the Pacific Northwest.
Per the recently published
Mortgagee Letter 13-27, the FHA will be updating the Home Equity
Conversion Mortgage program requirements to revise mortgage insurance premium
and principal limit factors, restrict the amount of HECM funds allowed to be
disbursed at closing and over the first 12 months following closing, require
all HECM mortgagors to complete a Financial Assessment, and require that a
portion of the loans proceeds is set aside or a portion of the line of credit
withheld for the purposes of paying property taxes and insurance.
Mortgagee Letter 13-28 follows up on this and provides additional details on
the parameters for the required financial assessment that must be submitted
before the FHA will approve all insured HECM transactions.
As part of the resources
offered to assist lenders in their data delivery, Fannie Mae has
published a defect categories list based off its post-purchase review of its
acquired loans. The list can be viewed in
full via the Loan Quality section of the Fannie website.
Fannie will be making several
changes to the servicing reports issued via Message Manager, including
modifying the Pool Deficiency report that is currently distributed. Cancelled
Modifications, Highest Paydown, Loan Re-add, Loan Removal, Paid Off Pools, Pool
Out-of-Tolerance, and Pool Pass-Through Rate Discrepancy reports, which are
presently emailed by Fannie Mae Investor Reporting to applicable servicers,
will also be added to Message Manager. The changes go into effect on
October 4th.
HomeBridge Mortgage is
offering the FHA Back to Work Program.
Freddie Mac failed
to refer nearly 58,000 foreclosed mortgages with about $4.6 billion in
shortfalls to vendors who assess borrowers' ability to repay and are
responsible to collect mortgage payments, thus foregoing a chance to recover
dues from homeowners who had the ability to repay, according to an audit report from the
Federal Housing Finance Agency's Office of Inspector General, or OIG, in
Washington.
Ginnie Mae's MBS
New Issuance Monthly Loan Level-Disclosure File for the month of August is
now available on the Data Disclosure Download page.
Franklin American is no
longer offering a 5/2/5 on its 5/1 Conventional ARM product; this has been
replaced with a 2/2/5 structure and affects both Conforming and high balance
loans. When selecting a plan in DU, underwriters should continue to use
the Generic ARM Plan.
FAMC has improved its pricing
on 20-year Government loans by 75bps, reducing the previous -1.00 hit to
-.25.
PHH will be
locking all new Conforming 5/1 ARM registrations with a 2/2/5 cap structure
and officially retiring the old 2/2/6 structure beginning on October 4th.
Loans in the pipeline with the 2/2/6 caps must be sent for review and in
"In Underwriting" status (Tier 6) by December 5th,
closed and in "In Post Closing" status by January 2, 2014, and
purchased by January 15, 2014. Eligibility requirements will remain the
same, as will the cap structures for Non-Conforming and Interest Only 5/1 ARM
products.
PennyMac is now
issuing invoices for trailing documents that are outstanding for more than
240 days from the date of purchase. The $100 per trailing document fee will
be reversed if the documents are submitted within the 30 day grace period
provided following receipt of the invoice, and as a reminder, sellers may be
required to repurchase loans with any trailing docs outstanding more than 270
days from the purchase date.
Mountain West Financial has
announced that it is now paying for all second appraisals required by program
guidelines for all loan types on Conventional, FHA, and VA
transactions. Orders should continue to be placed through WebTrac, in
which originators should select the "Net 30" option under the
payment dropdown tab and include second the appropriate notes in the sections
for additional comments and instructions.
M&T Bank has
changed the state tier adjustment for 30-year fixed Government loans on
properties in Florida and Georgia from 0 to +.125, effective
immediately. For financed mortgage insurance on Conventional loans, the
previous -.25 hit has been reduced to 0.
Moving over into the markets,
fixed-income securities had a nice rally Tuesday. Why? For one thing, New
York Fed's William Dudley "Do-Right" said that the debt ceiling
issue is creating a cloud of uncertainty and it could have a negative effect
on the economy. "Mr. Dudley went on to say that the Fed won't rule out tapering
this year, but is it driven by economic data, not by a timeframe" per
MMG. The two-month old Case-Sheller numbers came out, showing that the
20-city Home Price Index for July rose by 12.4% compared to July of 2012 to
the fastest annual pace since 2006. However, from June to July there
was a 1.8% increase, the smallest monthly gain since March, as 15 of the 20
cities saw slower growth (although Phoenix has had 22 months of positive
returns!). Obviously, the recent rise in rates has slowed down originations.
But perhaps most importantly, Consumer Confidence for September came in at
79.7, the lowest reading since May.
But bond prices, and
practically every other commodity, are determined by supply and demand. And
with mortgage banker production down (with many companies by 50%), buying
from the Fed, overseas, bond funds, and hedge funds was strong and steady. By
the close Fannie, Freddie, and Ginnie securities were better by .375-.625
(whether that is fully priced in to rate sheets remains to be seen) and the
10-yr closed at 2.65%.
Here in Kansas, in the very
early going, rates are basically unchanged from Tuesday's close, so we
may see rate sheets catch up a little. We'll have the MBA's application
index, the always volatile Durable Goods (expected up slightly), New Home
Sales for August (expected up slightly), and a $35 billion 5-year Treasury
note auction at noon CST.
Time has a way of moving
quickly - just ask anyone with kids. But it is important knowing what time it
is, as shown in this short clip: TheLifeOfAShephard.
If you're interested, visit my
twice-a-month blog at the STRATMOR Group web site located at www.stratmorgroup.com. The current blog is,
"Reverse Mortgages: Companies Need to Know What is Changing". 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://www.mortgagenewsdaily.com/channels/pipelinepress/default.aspx or www.TheBasisPoint.com/category/daily-basis. For archived commentaries or to subscribe, go to www.robchrisman.com. Copyright 2013 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
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Global Home Finance Inc is saving Texas One Home Owner At a Time. We offer Conventional, FHA, VA, Jumbo, and USDA Rural Development products to help refinance or purchase a home. Visit us online: http://globalhomefinance.com
Wednesday, September 25, 2013
Mortgage Jobs and Rate Changes
http://globalhomefinance.com
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