Bayview/Lakeview
continues to expand its mortgage business. Management is seeking to hire Correspondent
lending business development directors for the Northwest, Upper Midwest,
Texas (including several surrounding states) and the
Southeast. Additionally, Bayview/Lakeview is seeking to hire a wholesale
division leader and wholesale AEs in Los Angeles, the Bay Area (CA), Texas,
Upper Midwest, Northeast and Southeast. "Bayview companies are well
established in the mortgage investment and servicing industry with experience
in managing mortgage assets since 1995. Bayview/Lakeview offers a broad product
line, including non-QM portfolio loans along with conventional &
government. If you are interested in joining a great company, please send
your questions and resume to Jeff Lemieux." (Bayview
Asset Management is minority-owned by affiliates of The Blackstone Group, L.P
(NYSE: BX).)
There
have been a number of postings here recently about Vendor Management.
Compliance is inescapable and a careful read of the regulations make it fairly
clear that compliance has to be more than just collecting some limited information
and putting it in a file. Each lender is now required to have vendor management
policies and procedures that support an active monitoring and management
program. RML Advisors, headed by
Regina M. Lowrie, former MBA Chair, has developed a Vendor Management
Toolkit that enables lenders to quickly implement a compliant program. The
Toolkit is risk-based so that the full vendor management efforts are focused on
high and moderate risk vendors and a more simplistic approach is used for low
risk vendors. The kit has a practical price and the firm will support
either a Do-It-Yourself approach by the lender or will provide a turnkey
solution. If you'd like more information please contact Regina
Lowrie.
As
Managing Editor of MortgageCompliance Magazine,
Dr. Rick Roque in the September issue highlights an article written by Mitch
Kider, Managing Partner of Weiner Brodsky Kider PC on the expanding role of the
CFPB in their focus on non-depository mortgage lenders, especially as it
pertains to expanding HMDA and other compliance tools; such moves will only
increase compliance costs, legal fees, technology costs and regulatory scrutiny
for mini-correspondent and full mortgage bankers. "This is why many
origination groups - doing $2,000,000 per month or more are contacting me
looking for more stable options," says Dr. Roque, "I speak to
independent mortgage companies doing $10-$20M/mo from the west coast or smaller
retail production groups doing $2M-$4M/month in the Midwest looking for
competitive rates, service friendly underwriting and growth oriented marketing.
If loan officers and retail focused mortgage groups are looking for options in
any of the 50 states, inquiries can be directed to Dr.
Roque, or visiting MENLO's website to learn
more.
Switching
gears, here is something we sure don't see happen very often! A judge has
tossed out mortgage-backed securities litigation
brought by the Federal Deposit Insurance Corp. against Credit Suisse Group and
Deutsche Bank. The judge ruled that the FDIC had filed its action too late.
Do
you think that only a written notice is required to effectuate a right of
rescission?
Think again! The US Supreme Court will soon decide whether a lawsuit must be
filed to exercise the right of rescission within three years of a residential
mortgage loan's consummation - in order to make the rescission effective. In "TILA versus TILA: Rescission by
Notice or Lawsuit," a White Paper authored by Jonathan Foxx,
the President & Managing Director of Lenders Compliance Group, you
will read an analysis of the startling maze of conflicting court findings that
must now be resolved by the US Supreme Court. Are the courts about to be
inundated with a huge number of lawsuits by borrowers seeking rescission?
Yesterday
was a heady day in terms of reminding us of government's impact on all facets
of lending and financial services. The Federal Reserve Board, the Federal
Deposit Insurance Corporation, and the Office of the Comptroller of the
Currency finalized a rule to strengthen the liquidity positions of large
financial institutions. The rule will for the first time create a
standardized minimum liquidity requirement for large and internationally active
banking organizations. "Each institution will be required to hold high
quality, liquid assets (HQLA) such as central bank reserves and government and
corporate debt that can be converted easily and quickly into cash in an amount
equal to or greater than its projected cash outflows minus its projected cash
inflows during a 30-day stress period. The ratio of the firm's liquid assets to
its projected net cash outflow is its 'liquidity coverage ratio,' or LCR. The
LCR will apply to all banking organizations with $250 billion or more in total
consolidated assets or $10 billion or more in on-balance sheet foreign exposure
and to these banking organizations' subsidiary depository institutions that
have assets of $10 billion or more. The rule also will apply a less
stringent, modified LCR to bank holding companies and savings and loan holding
companies that do not meet these thresholds, but have $50 billion or more in
total assets. Bank holding companies and savings and loan holding companies
with substantial insurance or commercial operations are not covered by the
final rule.
Not
to be outdone, BB&T will acquire additional Texas branches from Citibank.
The acquisition includes 41 branches with $2.3 billion in deposits and $87
million in loans in the Dallas, Houston, Midland and Odessa markets (0.15
percent average cost of deposits). It is a 5.3 percent deposit premium paid on
total deposits, and this follows a 21 branch acquisition completed in June.
In
Pennsylvania Mid Penn Bancorp, Inc., headquartered in Millersburg, and Phoenix
Bancorp, Inc. headquartered in Minersville, announced the signing of a
definitive merger agreement which calls for Mid Penn to acquire Phoenix in a
transaction valued at approximately $14.5 million. The transaction expands Mid
Penn's footprint in Schuylkill County and into Luzerne County. On a pro forma
basis, the consolidated assets of the combined company will be approximately
$875 million.
Capital
Markets Cooperative, LLC (CMC) announced that its wholly owned subsidiary, CMC Funding
Inc., has been selected by the Federal Home Loan Bank of Cincinnati (FHLB
Cincinnati) and the Federal Home Loan Bank of Indianapolis (FHLBI) as its
partner for the servicing-released portion of the Mortgage Purchase Program
(MPP). "CMC shares a common philosophy and we all provide our members
outstanding value along with superb support" said Tom Millon, CEO and
President of CMC. "CMC is focused on flexibility, adaptability and service
for the MPP customers. We developed state-of-the-art technology for the
delivery of the servicing asset, and will provide liquidity and more product
options to the FHLB's community lenders."
Mortgage
insurance company United Guaranty has introduced SecureCert, a suite of
five options that allow lenders to choose the maximum rescission relief
available in the MI industry-at no added cost. The Federal Housing Finance
Agency (FHFA) is requiring all mortgage insurers to adopt new master policies,
effective October 1, to provide more uniform, industry-wide standards for
rescission relief and claims handling. SecureCert provides comprehensive
rescission relief-except in instances of first-party fraud. Also, with its Day
One Protection options, United Guaranty assumes responsibility for MI
underwriting mistakes when it reviews loan file documents. SecureCert offers
two options that provide rescission relief at 36 months and three options that
accelerate rescission relief from 36 months to 12 months with the submission of
additional documents.
AllRegs
spread the word that VA announced new appraisal requirements: VA will
now require appraisers to include the Fannie Mae Form 1004MC (Market Conditions
Addendum), in all VA appraisal reports.
Mountain
West Financial Wholesale Credit Policy Updates
include adherence to mortgage debt discharged through bankruptcy, even if a
foreclosure action is subsequently completed to reclaim the property in
satisfaction of the debt, the borrower is held to the bankruptcy waiting
periods and not the foreclosure waiting period. The Waiting Period after a
Short Sale or Deed-in-Lieu of Foreclosure and Charge Off Accounts of Mortgage
Debt are effective with applications dated on and after August 16, 2014 have
been REDUCED to a 4 year waiting period, or 2 years if extenuating circumstances
can be documented per guidelines (The 7 year waiting period for deed-in-lieu of
foreclosure and short sale has been removed). In addition the previous LTV
restrictions tied to different waiting periods for Deed-in-Lieu of Foreclosure,
Short Sale or Mortgage Account Charge-Off have been removed.
NewLeaf
Wholesale's
Jumbo Fixed and ARM guidelines have been updated. Changes include information
on payment shock, appraisal requirements, subordinate financing, residence
converted to investment property, subordinate financing, rental income, and
departing residence updates and changes.
Kinecta
Federal Credit Union Wholesale posted updates to coincide with
Fannie Mae updated Selling Guide. Additionally, Kinecta has simplified and
improved its Lender Paid Mortgage Insurance (LPMI) credit score bands and
adjustments for Conforming and Super-Conforming (Fixed and ARM) products.
AMX
Wholesale
requires following list of BROKER disclosures to be included on every loan, at
submission, and must be dated within 3 days of the initial application: Written
List of Service Providers, Intent to Proceed with Application, GFE, Servicing
Disclosure Statement, MLOA (Mortgage Loan Disclosure Statement), Anti-Steering
Disclosure (if applicable), Borrowers' Certification and Authorization, Fair
Lending Notice, Equal Credit Opportunity Act (ECOA), Privacy Policy Disclosure,
Homeownership Counseling Disclosure, Appraisal Valuation Acknowledgement and
Affiliated Business Arrangement Disclosure Statement Notice.
These
investors are sure interested in yield, and with the supply of MBS dropping, demand beat out supply
again and we had a little rally. "Little" is the operative word since
the 10-year note was higher by 2+/32s (2.41%), while prices on 30-year FNMA 3s
through 4.5s ranged from +1 tick to +2+ ticks, respectively. There was no real
market-moving news although we did have the Fed's Beige Book which told us that
barely half of the Districts reported stable or growing residential real estate
activity related to the construction of new homes and sales of existing homes,
demand for residential mortgages was less robust, and credit standards remain
generally unchanged in most Districts.
Today
we have a full menu of releases, including soup (August ADP Employment expected
+220k), salad (Initial Jobless Claims expected +300k), pasta (July
International Trade), steak (final Q2 Productivity/Unit Labor Costs), and
chocolate cake (August ISM non-manufacturing PMI). We'll enjoy a fine wine (the
ECB monetary policy decision) with an aperitif (the Treasury announcement of
next week's auctions of 3- and 10-year notes and 30-year bonds). We had a
2.41% close on the 10-year, and in the wee hours of this morning we're roughly
unchanged.
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