Someone is always upset when they are left off of some list, but
Owners.com, a national brokerage, has published the top 25 metro areas by home
price changes from August-September 2014 compared with August-September 2015.
The data found that the price for a three-bedroom single-family home in Denver,
CO increased nearly 12%, followed by Orlando, FL and Miami, FL at 11.6 percent
and 11 percent, respectively. (Contrast that with the price for a three-bedroom
family home in the New York metropolitan area into New Jersey and Pennsylvania
dropping 6.7 percent.) Other metro areas that round out the top ten in price
increases include Washington-Arlington-Alexandria DC-VA-MD-WV,
Boston-Cambridge, MA, Portland, OR, Pittsburg, PA, Nashville, TN and Tampa, FL.
(Don't ask me what happened to San Francisco.)
Originators or aggregators are usually looking for new products
to expand their repertoire. SG Capital
Partners, a rapidly growing investor with significant assets under
management, has seen growing traction with its diverse range of products in the
Non-Agency/Non-QM and Non-Prime space. SGCP recently redesigned its "Investor Access"
product which is a simplified product for real estate investors focused on LTV
and borrower credit. Guides allow for loan amounts up to $2 million at 75%
LTV, with 3/1 & 5/1 options available. SG's products permit loan
amounts designed to capture MSAs throughout the country. To learn more about
this product or SG Capital's other offerings, please contact: SGCPConduitSales.
Have you ever heard of Caivers? Me neither, but thanks
to Nick S. for passing along the name of the company that is the reporting
agency the FHA or VA would report to when they file a claim for payment - and
that is when the clock starts ticking.
What About the FHA Loan Limits? The FHA's
"floor" and "high cost" loan limits are based on the
baseline loan limit for the GSEs. Specifically, the FHA's conforming loan limit
"floor" and "high cost ceiling" are 65% and 150%,
respectively, of the GSE baseline loan limit. We expect the FHA to announce its
2016 loan limit decision in December, which will include some county-level
differences, but will remain within the same bands as 2015.
The MBA's Chart of the Week for November 13th
showcased VA purchase loan share and loan size. The chart suggests an
increase in the VA's share of purchase loan application in 2015. Starting in
March of this year, VA's share of purchase applications grew from 10 percent to
roughly 12 percent, maintaining that average throughout the rest of the year.
The average loan size for a VA purchase loan was $247,000 in 2015, up from
$232,000 in 2014.
FHA has added temporary approval provisions for condominium
project approval, effective immediately. The mortgagee letter provides a
revised calculation for FHA required owner-occupancy percentage, to allow units
that are not investor-owned to be considered owner occupied for the purpose of
Condo approval. For multi-phased projects, the owner-occupancy percentage is
calculated on the total number of units in the first declared phase and
cumulatively on subsequent phases or for single-phase condominium project
approval requests, all units are used in the denominator when calculating
required owner-occupancy percentage. The mortgagee letter also identifies the
expansion of eligible insurance coverage, as the HOA is required to maintain
adequate "master" or "blanket" property insurance in an
amount equal to 100% of current replacement cost of the condominium exclusive
of land, foundation, excavation and other items normally excluded from
coverage. Additionally, the mortgagee letter addresses the requirements for
obtaining condominium project recertification.
The latest Black
Knight Mortgage Monitor is out, and it takes a look at the high LTV loan universe. FHA
has become the go-to high LTV loan product, and their high LTV loans account
for 77% of FHA / VA origination. Fannie and Freddie did about 1% in high LTV
loans. So it appears that the government sponsored enterprises'' (GSEs)
introduction of 97 percent loan-to-value (LTV) mortgages, implemented by Fannie
Mae' in late 2014 and by Freddie Mac in the spring of 2015, has apparently done
little damage to the government guarantee sector's dominance in that market
place. Low down payment lending, that is mortgages with a 95 percent or
higher LTV ratio, were up 20 percent in the third quarter of 2015 compared to
the same period in 2014 while the overall purchase market expanded by only 13
percent.
VA's November circular states effective immediately,
lenders may accept a Veteran's assertion of spousal status when a Veteran is
applying for home loan benefits. Read the details
here.
The VALERI Servicer newsflash for December 4, 2015 contains
information regarding, New Net Value. New Maximum Allowable Foreclosure
Timeframes, Circular 26-15-30, Title Documentation of HOA Matters in Florida,
Pre-Approval Procedures, VALERI Reports, Deficiency Waiver Letter and
development updates for VALERI 3.7 manifest release scheduled for Saturday,
December 12, 2015. To view the information, click the Servicer
Newsflash December 4, 2015.pdf.
VA has increased its appraisal fees as of December 1st.
Use this link to view current fee
schedules.
Click on a particular State and it will take you to the supporting Regional
Loan Center, where you can obtain maximum allowable fees for the appraisal type
and the number of days allowed for completion.
VA has provided a newsflash containing information on the
Federal Register - Maximum Allowable Attorney Fees, Servicer Calls, New HUD-1 Settlement
Statement Disclosure and Report Name Change. Details are available on the VALERI Servicer
Newsflash for November 6, 2015.pdf
California's Land Home Financial spread the word
that LHFS Wholesale has the FHA Streamline program. This product offering
includes no employment verification, and the Existing subordinate financing may
remain in place up to 125% CLTV.
First Community Mortgage has posted its November
bulletin outlining guideline changes. Changes include ineligibility of repair escrow cash-out on VA,
FHA and conventional transactions.
NewLeaf announced enhancements to its VA guidelines
that are effective immediately. Collection accounts no longer need to be paid
off by closing. Additional
enhancements to both IRRL and VA cash-out have been posted.
M
& T Bank has updated information regarding VA
loans, VA
Staff Appraisal Reviewers are reminded of the five-day requirement to review a
VA Appraisal and issue a Notice of Value. VA has confirmed that the
five-day limit is measured in business days (not calendar days), and that
federal holidays are excluded from the count. Also, The VA has simplified its
earlier guidance on determining Spousal Status. The VA product pages have
been updated to state: Determination of Spousal Status - The marriage is
recognized by the VA if: The borrowers select "Married" as their
marital status on the 1003, and The borrowers check off "Veteran &
Spouse" on the HUD/VA Addendum. The borrowers signature on the 1003 and on
the HUD/VA Addendum to Uniform Residential Loan Application (VA Form 26-1802a),
is all that is required to satisfy these requirements, the VA Underwriter does
not have to do anything more.
Effective immediately for all applications and loans in
process, per VA Circular 26-15-29 issued November 5th, 2015, USBHM
will no longer be required to submit income documentation to VA for same sex
married applicants. A Supreme Court ruling regarding same sex marriages allows
VA to recognize all marriages without regard to a Veteran's state of residence.
VA will accept the applicants assertion that he or she is married on the VA
Form 26-1802a, HUD/VA Addendum to Uniform Residential Loan Application to
establish spousal status. All married applicants will be processed in the same
manner without any additional scrutiny or development.
Of course the bulk of FHA & VA loans go into GNMA
securities, and Ginnie Mae announced it is enhancing the
disclosure
of Ginnie II program information by providing Multiple Issuer Pools (MIP) in
the MBS Daily (Loan Level) file.
Michael Ehrlich with ThomsonReuters penned, "I
would like to provide a bit more clarity regarding GNMA disclosures specific
to Broker-sourced loans. When an issuer reports pool issuance data to GNMA,
they are required to identify whether the loan was Broker, Correspondent or
Retail. Upon further analysis of GNMA reporting requirements and field
definitions, I was able to determine that this reporting field for 'Third-Party
Origination Type' actually specifies 'the type of party that participated in
the origination process, specifically
taking in the loan application.' Hence, a loan will show up broker if a broker took in the
loan application. This would still hold true even if a mortgage bank closed and
funded the loan and sold it correspondent to Chase, Nationstar,
Pennymac....etc. The Broker/Wholesale volumes would then include Correspondent
acquired loans that were sold to the issuing investor from another mortgage
bank who acquired the loan from an originator who originated it as a broker
(would that be 4th Party TPO?!). Several large correspondent shops reached out
to me to tell me they did not originate ANYTHING via a wholesale channel;
contradicting the volume numbers under 'broker' that appeared for their company
in the rankings. This would explain why broker volumes are reported. (Note, the
GNMA issuer reports these fields directly to GNMA).
While we're talking about securities, up some, down some,
so go the markets. On no real news of substance the U.S. Treasury market ended
mostly higher Wednesday as equities fell sharply and oil ended modestly lower.
Aside from some forgettable inventory numbers the only event was a $21 billion
10-year Treasury note auction was met with strong demand.
Today we've had Initial Jobless Claims for the week ending 12/05
and Continuing Jobless Claims for the week ending 11/29 (+13k from 269k and
2.16 to 2.24 million, respectively), and November Export Prices ex-ag and
Import Prices ex-oil (import prices -.4%), along with the Treasury auctioning
off $13 billion in 30-year T-bonds. We closed Wednesday with the 10-year at
2.22%, the same place it's been much of 2015, and after this initial spate of
news we're pretty much unchanged from Wednesday's closing levels.
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