At Sunday
School they were teaching how God created everything, including human beings.
Little
Johnny seemed especially intent when they told him how Eve was created out of
one of Adam's ribs.
Later
in the week his mother noticed him lying down as though he were ill, and she
asked, "Johnny, what is the matter?"
Little
Johnny responded, "I have pain in my side. I think I'm going to have a
wife."
There
is an ever growing problem about women in the workforce. Women make around 80%
of what men make in the same job. Another scary fact is that the construction
industry consists of only 9% women. Construction has always been perceived as a
"male job" but women are a growing force in the construction
industry. While the national wage average for women is 82% of what their male
counterparts make, in the construction industry, women make 93.4% of what males
make. BuilderOnline notes that, "The roles females typically fill in the
industry tend to be more focused around project management, operations, and
business development. We also still see a lot of women in the industry filing
administrative roles like assistant or project coordinator." Obviously the
role of women in mortgage banking can't be underestimated, and let's hope it
continues to grow in managment.
Over at
STRATMOR, Senior Partner Dr. Matt Lind tells us that STRATMOR has just
launched another Spotlight Survey, this time addressing Retail Loan Originator
Ramp-Up Practices and Experiences. According to Dr. Matt, this latest
survey focuses on both the recruitment, training and compensation of new retail
loan originators and the volume expectations over time that lenders have for
new LO hires, and compares the performances of experienced originators and
so-called "newbies." Importantly, survey results should indicate both
what works and what doesn't as measured by the percentage of new hires that
fail to meet minimum expectations. With the mortgage industry experiencing slow
growth, it would seem important for lenders to learn about what their peers are
doing to grow their retail sales force and with what success. The survey will
remain open until May 15th with results expected to be available around June
1st. As with all Spotlight surveys, there is no up-front charge to take the
survey and those who participate can purchase results when they come available
for a modest fee.. Click here if you are interested in taking this important
15-minute survey.
Citing
the rapid growth of MSR portfolios held by nonbanks in recent years, the
Government Accountability Office issued a report last month in which it called
on the FHFA and CFPB to provide more oversight of nonbank mortgage servicers.
With more and more companies retaining servicing, effective oversight is not
only required by the regulators and the CFPB, but is a prudent control to
ensure that risks to a company's assets are minimized. Richey May & Co,
an accounting firm recognized as a leader in providing audit, tax, compliance
and oversight services within the industry, is heading out to Cenlar in May
to conduct a comprehensive subservicer oversight review that includes
loan-level testing and a thorough review of Cenlar's policies and procedures
and internal controls. If you are an agency seller/servicer, or GNMA issuer,
you are fully responsible for monitoring and overseeing your subservicer's
performance as required by the CFPB and other regulators. For more information
about the upcoming Cenlar review, or to participate in the Dovenmuehle
review conducted earlier this year, please contact Kurt Blohm.
Switching
to banking news, the announced mergers & acquisitions quieted down slightly
this last week: in Michigan West Shore Bank ($390mm) will acquire West Michigan
Bank & Trust ($40mm) for about $8.3mm in cash, and in Tennessee Citizens
Tri-County Bank ($692mm) will acquire Franklin County United Bank ($78mm).
"Rob,
are correspondent investors like Chase offering clients its delegated
non-agency program?" Yes they are - but you should ask your local reps
about programs. (Plenty of banks are keeping their jumbo originations in their
portfolios.) Remember that some lenders ("some" perhaps being an
understatement) have had operational issues ("issues" perhaps being
an understatement) with purchase times with Chase - but many tell me that the
process has improved. And word has it that Chase jumbo delegation must be
QM-Safe Harbor or QM-Rebuttable presumption - Delegated Non-Agency amortizing
transactions with a Non-QM designation are not eligible. But correspondents
like Chase believe it gives the client more control over the loan process.
Continuing
along with the Chase program, as an example, the letter clients normally
receive goes something like, "You have been chosen by Chase to participate
in our Delegated Non-Agency Underwriting Program. Your Delegated
Non-Agency Underwriting authority allows you to underwrite Non-Agency
transactions within the approved delegated authority, Rep and Warrant
transactions secured by condominium and PUD properties, Rep and Warrant
revocable trusts, and submit some Non-Agency transactions within your Delegated
Non-Agency authority for Chase Underwriting for a fee of $750."
But
it isn't a matter of just flipping a switch. With Chase, "Your Delegated
Non-Agency Underwriting authority is contingent upon the successful completion
of the underwriting test case evaluation phase ('Evaluation Phase'), and
receipt and acceptance of your completed and signed Chase Delegated Non-Agency
Underwriting Addendum to the Correspondent Origination and Sales Agreement
('Addendum'), and issuance of your approval letter by Chase.
"To
ensure loan salability and compliance with Chase credit, appraisal, and product
requirements, we will perform a quality review on a minimum of 10 Non-Agency
files prior to allowing submission of Delegated Non-Agency transactions. The
loans selected should be representative of your Non-Agency production and in
clear-to-close condition."
As
a reminder I am merely using Chase as an example, but in its program clients
can still have Chase do the underwriting. "This enhanced program will
allow you to submit some Non-Agency transactions within your Delegated
Non-Agency Underwriting authority for Chase Underwriting for a fee of $750. The
maximum number of Non-Agency loans allowed to be submitted to Chase for
underwriting during any calendar quarter is the greater of 1 loan or 10% of
your Non-Agency loans delivered to Chase in that calendar quarter. The number
of Non-Agency loans allowed for Chase Underwriting will be calculated at the
end of each calendar quarter based on Non-Agency loans received (number of
Non-Agency loans underwritten by Chase as a percentage of total number of
Non-Agency closed loan packages delivered for purchase by Chase)."
While
we're on this topic, Wells Fargo Funding rolled out process enhancements
for Non-Conforming Loans. Beginning April 4 Sellers have the ability to: Order
Direct - Order appraisal products for Non-Conforming Loans directly from
any Wells Fargo Funding-authorized appraisal management company (AMC): Clear
Capital, PCV MurcorTM (NEW! Authorized AMC beginning April 4), Rels Valuation
(*Rels Valuation's Share with Investor function will be retired in May 2016)
and ServiceLink. Deliver Direct - Deliver the first-generation Adobe PDF
and industry-standard XML for your final appraisals on Non-Conforming Loans
directly via its Wells Fargo Funding website utilizing its new appraisal upload
feature. Clients should read the Newsflash for full details.
And
while we're on appraisals...
CMG Financial
(CMG)has streamlined the
management of its appraisal process from start to finish using Global DMS' eTrac platform. This has enabled CMG to work
with its AMC providers that have disparate systems through a single interface
with eTrac. As a result, processors and brokers no longer have to log into each
AMC's system to place appraisal orders. From within eTrac, CMG users can order and assign appraisals, track them
with real-time status, review appraisals, and they are then automatically
delivered to the Uniform Collateral Data Portal (UCDP) in full compliance and
without errors or missing data.
As
an additional clarification to existing Sun West guidelines regarding
HECM-to-HECM Refinances, Sun West will accept a HECM-to-HECM Refinance only if
it meets the seasoning requirement. There must be an 18 month waiting period
after the closing of the prior HECM loan before it can be refinanced to a new
HECM loan. If the HECM-to-HECM refinance does not meet the seasoning
requirement, Sun West will only accept the loan if there is no increase in the
appraised value and the new loan passes both Closing Cost1 and Loan Proceeds2
tests.
In
a topic related to appraised values, all states' have current
Homestead laws that are directly related to the original Federal
Homestead Act of 1862 which promoted our country's expansion in the mid to
late 1800s. The great state of Florida offers
some of the broadest and most generous protection compared to homestead
laws of other states. The main reason is that there is NO limit to the
value of property that can be identified as a resident's permanent homestead.
The
Homestead Exemption applies to those who make a Florida property their
permanent primary residence.For LOs in Florida this is a great reason to get in
touch with all their buyers from last year and be sure they know
about Florida's Homestead Exemption. Sending a reminder now is
a great way to follow up and maybe get a new referral or two. Even
when they were Second Home or Investment buyers, they'll appreciate knowing
about this. They had until March 1 to file and receive the property
tax break for all of 2016. If they had homestead status on a previous
home, they'll need to establish their new one as homestead. Florida's
Constitution and Statutes extend 3 different types of protection under
Homestead Laws: Partial exemption from property taxes, Protection from forced
sale, and preserving full value. Safeguards for surviving spouse and/or
minor children. Homestead Exemption for property taxes is NOT
automatic. Property owners seeking the partial tax break must qualify and
apply to the Property Appraiser's Office in the county where the property
is located. Filing for the exemption can be made up to March 1, though
proof of residency must be dated before January 1st in order to receive
the tax break for the upcoming year. Additional information can be viewed here.
And
speaking of Florida, it has reduced the time limit for a mortgagee to cancel
a mortgage after satisfaction from 60 to 45 days, unless the mortgage is an
open end mortgage. The new provision will be in effect July 1st.
An open end mortgage is one that can increase, pending the request from the
borrower. To cancel an open end mortgage, the borrower has to provide a written
notice of the intent to close the mortgage and then 45 days after receiving the
notice, the mortgagee will cancel the open end mortgage.
The
bond market broke out of the narrow range we've been in for a couple weeks
yesterday ahead of today's ECB (European Central Bank) meeting. Frankly I did
not hear a solid reason, other than "rates were tired of staying the same
so decided to move higher." Some thought it was due to stock market
strength, others suggested, "jiggering of hedges and concerns about
extension risk." Needless to say, the same buyers were buying MBS, and the
same sellers were selling, but by the close the 10-year note was .625 worse in
price while current coupon agency MBS prices were worse about .250.
Today
is a new day, and we have already learned that the ECB, as expected, left its
rates unchanged. (Recall that the March statement also expanded QE to 80
billion euros per month, added corporate bonds to the mix, and announced TLTRO
II.) In this country we've had weekly Jobless Claims (-6k to 274k) and the
April Philadelphia Fed Business Outlook (-14 to -1.6 - not good). Later is
Leading Economic Indicators for March (at 10AM EDT), is expected to rise 0.4%
vs. +0.1% in February. We closed the 10-year at a yield of 1.85% and this
morning it is at 1.87% with agency MBS prices worse less than .125.
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