Although
Bismarck, ND is a fine city, it did not make Zillow's Best Places to Buy a Vacation
Home list. I read many articles during the course of the week but
this one is pretty interesting and managed to capture my attention away from
Tetris for a while. Zillow created an index, known as the Second Home Index
(SHI) in order to surface U.S. cities near popular vacation destinations
that are also good locations to buy a second home for seasonal use. This is an
interesting index, one which may have merit, as they identified vacation cities
near popular destinations, then ordered those cities according to their
investment and rental income potential. Spoiler Alert: homes in a number of
prices ranges, within five miles of a golf course, appear to only be located in
Florida. Go figure.
Will
a new HARP ride in and save the refinance business? Probably not, as
borrowers seem kind of "tapped out" on the program, but the public
relations efforts have been renewed. This week FHFA Director Watt spoke at a
town hall meeting in Chicago to publicize the Home Affordable Refinance Program
(HARP). The FHFA estimates that as of the end of 2013 there were roughly
676,000 loans still eligible for HARP refinancing. Notably, Director Watt did
not use this event to announce an extension of the HARP's current expiration
date. Following the event, Director Watt was asked about the extension issue
and stated: "It's not even something that I'm looking at right now because
we are in 2014 and the existing HARP program doesn't end until the end of
December 2015."
As
we prepare for the last round of World Cup Soccer, I would like to refer you to
my colleague Garth Graham who recently wrote about comparisons
between our industry and the world's favorite game.
As
many know, reverse mortgages are available to homeowners 62 years old and older
with significant home equity. They are designed to enable retirees to borrow
against the equity in their homes without having to make monthly payments as is
required with a traditional "forward" mortgage or home equity loan.
Under a reverse mortgage, funds are advanced to the borrower and interest
accrues, but the outstanding balance is not due until the last borrower leaves
the home, sells, or passes away. Borrowers may draw down funds as a lump sum at
loan origination, establish a line of credit or request fixed monthly payments
for as long as they continue to live in the home. According to the National
Reverse Mortgage Lenders Association, senior home equity has reached $3.60
Trillion (its highest level since 1Q'08) and there are currently more than
575,000 senior households using a reverse mortgage to help meet their financial
needs...it's also estimated that there are at least 575,000 children who may be
surprised when the will is eventually read.
Huh?
We're being told now that last year Nationstar was restricted
by adding Fannie & Freddie servicing? I'm always the last to hear.....
So
you're in the market for a little servicing, uh? Well here ya go...MIAC
has two offerings; the first a $3 Billion FNMA/GNMA mortgage
servicing portfolio. The portfolio is being offered by a mortgage
company that originates loans with a national geographic concentration. The
Seller will be providing full reps and warrants for the package: $170,406
Average Loan Size, 95% fixed and 5% hybrid loans, 14% Fannie A/A, 33% Fannie
MBS, 18% GNMA I and, 35.14% GNMA II loans; Weighted average interest rate of
4.254%, 21% retail and 79% wholesale, with bids due by July 14th...the second,
a $50 Million per month concurrent flow
mortgage servicing offering. The flow servicing is being offered by
a "well-capitalized" bank that originates nationally. The seller will
be providing full reps and warrants for offering: $245k average loan size, 100%
fixed rate loans, GNMA - 53.94%, FNMA A/A - 42.66%, Freddie ARC- 3.40%, 100%
retail, national state distribution, and average FICO score of 752, with bids
due today.
The
only two sure things in life are death and taxes, right? The CFPB issued
an interpretive rule to
clarify that "when a borrower dies, the name of the borrower's heir
generally may be added to the mortgage without triggering the Ability-to-Repay
rule. This clarification will help surviving family members who acquire title
to a property to take over their loved one's mortgage and to be considered for
a loan workout, if necessary, to keep their home.
For some quick investor & agency news...
As
a reminder, on June 18th, Freddie introduced the Freddie Mac MyCity
Modification, a temporary offering within the city of Detroit, Michigan, to
assist struggling homeowners by providing a loan modification option that may
offer significant payment relief. The goal is to help provide eligible
borrowers with more affordable terms so they can stay in their homes. Only
Servicers with loans in the eligible Detroit ZIP codes, or those who may
acquire servicing of applicable loans in those ZIP codes in the near future,
will be impacted by the requirements described in Guide Bulletin 2014-11,
related to the MyCity Modification. These specific ZIP codes are listed in
today's Guide Bulletin. Servicers must follow the MyCity Modification
guidelines and submit their recommendations for borrowers on and after
September 1, 2014. For complete information: Bulletin 2014-11.
Mortgage
Master, Inc.
announced it has become the first non-depository lender to join the
Massachusetts Home Ownership Compact to provide affordable mortgage solutions
to lower income first-time home buyers. As a signatory of the Home Ownership
Compact, Mortgage Master has committed to make a good faith effort to provide
Mass Housing mortgage loans to borrowers below the median household income in
2014.
Cole
Taylor Mortgage announced its offering of LPMI High Balance Fixed Products:
30-year fixed, 20-year fixed and 15-year fixed. The current rate sheet reflects
the applicable rate adjustment and is effective for all loans locked on or after
June 16th.
ABA
Community Bank Mortgage LLC has selected First Community Mortgage (FCM) as a
secondary market investor. With this selection, ABA Community Bank Mortgage LLC owner
banks can sell agency-eligible loans on a servicing-released basis to FCM and
access their full line of products.
And
it has also selected Five Oaks Investment Corporation as its newest secondary
market investor, a move that will allow owner banks to sell non-conforming
jumbo loans on a servicing-released or servicing-retained basis to Five Oaks
and access their full line of fixed rate and ARM products. Five Oaks is also
announcing a private label servicing solution for owner banks. ("Co-owned
by the Corporation for American Banking, an ABA subsidiary, and community banks,
the ABA Community Bank Mortgage LLC leverages the power of joint ownership for
better execution on loans sold into the secondary market. By aggregating
volume, the LLC is able to leverage the quality and total volume of the owner
banks' loan production.")
Bayview
Correspondent Lending has updated its Non-QM Portfolio Products.
The summary includes **Standard loan amounts up to $1,500,000, Non-Warrantable
Condos to 70% LTV on Primary Residences. Primary Residence, Second Homes and
Non-Owner Occupied properties Single Family Attached/Detached,
condominiums, Planned Unit Developments, Leaseholds and standard agency Rural
Properties: Maximum 80% loan-to-value (LTV) on all products (LTV reductions may
apply for Second homes, Investment properties and jumbo loan sizes).
Fifth
Third has
clarified eligibility and asset requirements on all Fannie Mae products. These
clarifications include but are not limited to the following: delayed financing,
continuity of obligation and multiple financed propertied for the same
borrower. Asset requirement including business assets, life insurance funds,
and VOD requirements are also updated. Contact your Sales Representative for
complete update information.
Penny
Mac is
aligning with recent Freddie Mac changes as outlined in Freddie's 14-12
bulletin in its announcement 14-36. These changes include large
deposits, monthly debt payment-to-income ratio requirement, Open Access and
Power of Attorney. Penny Mac announcement 14-35 aligns to Fannie
Mae's recent updates regarding Cash-out transactions, Continuity of obligation,
multiple financed properties, POA, and other Asset Policies. Announcement
14-34 from Penny Mac discusses availability of employment beginning after
close allowed on conforming LP loans. To view these Penny Mac
announcements, visit: gopennymac or contact your
representative for complete details.
The
markets did not do much yesterday, but overnight saw quite a move. Wednesday
morning was quiet, but we saw some movement after a weak 10-yr T-note auction
("lukewarm demand as the issue tailed by 1.2bps at 2.597%. Stats were weak
with 39.6% awarded to indirects, 13.9% directs and a 2.57 bid to cover").
We also had the minutes from the June Fed meeting, indicating that the final QE
taper will be $15Bln in October if the economic outlook holds. And of great
interest is that discussions are still occurring as to what/how tools will be
used to raise rates. So as expected, the FOMC minutes included discussion on
the Fed's exit strategy and there is support for continuing reinvestment
purchases past the first rate hike. "Many participants agreed that ending
reinvestments at or after the time of liftoff would be best, with most of these
participants preferring to end them after liftoff."
That
is yesterday's news. In the early going we're seeing a nice
rally/improvement in rates. There are a host of "reasons" but
this all still feels like a bout of consolidation/digestion in an environment
of very thin liquidity and no news. Sentiment began deteriorating earlier in
the week although the fundamental landscape hasn't shifted much. There were a
few "negative" headlines (China's exports were a touch below
estimates, industrial production in France & Italy were light, Portugal
worries continue to reverberate through Europe, Japan machinery orders plunged,
etc.).
Here
in the U.S. we've seen Initial Claims (expected at +312k from +315k, it was
-11k to 304k, with the 4-week moving average -3,500). The Treasury concludes
its latest round of coupon auctions with $13 billion reopened 30-year bonds at
1PM EST. In the early going the 10-yr. is better by .5 and down to a yield
of 2.50% after closing Wednesday at 2.55%, and agency MBS prices are better by
about .250.
http://globalhomefinance.blogspot.com
No comments:
Post a Comment