(Part 3
of 3 of quotes about marriage from both sides of the aisle.)
Two secrets
to keep your marriage brimming.
1.
Whenever you're wrong, admit it,
2.
Whenever you're right, shut up.
Patrick
Murray
The
most effective way to remember your wife's birthday is to forget it once....
Nash
You
know what I did before I married?
Anything
I wanted to.
Anonymous
My wife
and I were happy for twenty years.
Then we
met.
Henny
Youngman
A good
wife always forgives her husband when she's wrong.
Rodney
Dangerfield
A woman
inserted an ad in the classifieds: "Man wanted." Next day she
received a hundred letters.
They
all said the same thing: "You can have mine."
Anonymous
First
Guy (proudly): "My wife's an angel!"
Second
Guy: "You're lucky, mine's still alive."
Anonymous
"If
you want to sacrifice the admiration of many men for the criticism of one, go
ahead, get married."
Katharine
Hepburn
We've
moved through the year to today, celebrated by some as "Stars Wars
Day", especially for those with a lisp. Most people hate getting older,
but during the month of May getting older is how you get into the party. May is
Older Americans Month where it is a time to celebrate those 65 and older
through ceremonies, events and public relations. Let's hear some stats about
older Americans; should I increase the font size? Every reverse mortgage lender
knows that there are 46.2 million "older Americans" in the United
States which compromises 14.5% of the total population. And the population of
people 65 and older is projected to more than double by 2060 to 98.2 million.
On top of that, 2033 is the first year ever that the population 65 and older
would outnumber people younger than 18 in the U.S.
Silver
Hill Funding introduced its new Multifamily Streamline Program for small-balance
commercial mortgage loans from $250,000 to $1,000,000. "With no tax
returns or 4506T required, this program appeals to a historically underserved
group of credit-worthy investors who are unable to provide sufficient income
verification. Mortgage brokers looking to add new revenue streams to their
business can learn about streamline programs and other aspects of small-balance
commercial mortgage lending by registering for Silver Hill Funding's
upcoming webinar."
Parkside
Lending recently announced the release of its 95% LTV Expanded Jumbo.
This product does not require mortgage insurance and is for loans up
to $1,000,000. We are pleased to add this to our existing suite of
Jumbo products, including our Premier Jumbo, Jumbo I and Jumbo III, to
help borrowers who need loan amounts greater than $417,000 - a
particular need in some regions and markets. For more information on the 95%
LTV Expanded Jumbo or any of our other Jumbo products, contact
your Parkside Account Executive or info@parksidelending.com.
On
April 25th, Nationstar Correspondent announced two new
affordable lending products in Seller Guide Update 2016-04. The FHLMC Home Possible
and FNMA Home Ready products compliment Nationstar Correspondent's
current suite of Agency (Fannie Mae, Freddie Mac and Government) products and
are designed to help lenders confidently serve today's market of creditworthy,
low- to moderate-income borrowers, with expanded eligibility for financing homes
in designated low-income, minority, and disaster-impacted communities. Whether
you are a current client or are interested in partnering with Nationstar
Correspondent, contact your region's Sales Account Executive by
clicking on the 'Contact Us' tab of Nationstar Correspondent's website
located at www.nationstarcorrespondent.com. The Nationstar team will
also be at this year's National Secondary Market Conference & Expo in
New Yorkthis month. If you would like to schedule time to meet with
Nationstar, reach out to your region's Sales Account Executive.
Pacific Union Financial has
created a Withdrawn/Lifted Overlay matrix to reflect overlays that have been
removed due to determination to be obsolete or no longer necessary. Overlays
that will remain in place are listed on the new Overlay Matrix.
This Lender Letter introduces a
new mortgage loan modification program, the Fannie Mae Principal
Reduction Modification, at the direction of FHFA and in collaboration with
Freddie Mac. Details of this program are included in this Lender Letter. In
addition to LL-2016-02, Fannie Mae is also publishing a list of Servicer FAQ's related to this
program.
During
this weekend Fannie Mae will update Condo Project Manager to implement
Version 6.0. The following changes will enhance CPM and make it easier for
lenders to do business with Fannie Mae: Make CPM compatible with current
industry internet browsers, and enhance security and geocoder functionality.
For details, view the CPM 6.0 release notes.
CPM will be unavailable during the weekend update period.
FinTech,
and non-banks, certainly have been gaining a lot of attention. But there are a
lot of changes going on in the banking world as well. The Federal Reserve has
increasingly approved bank mergers, particularly acquisitions by midsize banks.
The central bank approved 279 mergers in 2015, compared with 190 in 2013.
"I think we're going to see the Fed OK a lot of consolidation activity up
to a particular size. After a certain size, the line gets drawn and the biggest
banks aren't going to be able to acquire any depository institutions,"
said Bert Ely, banking analyst at Ely & Co. Too small to comply?
U.S.
banks are making more mortgage loans, and keeping the jumbo loans on their
books. The share of outstanding mortgage debt held by U.S. banks is up
roughly 32% - the highest it has been since early 2009. A sizeable chunk of
this comes from Chase holding its jumbo loans in its portfolio - no need to
sell off those assets in securities at this point. Heck, many banks have plenty
of deposits looking to be put to work, and the credit risk profile of jumbo
loans currently fits in well.
Regional
banks are likely to benefit from the Basel Committee on Banking Supervision's
decision to abandon its internal-models approach for capitalizing credit
valuation adjustment risk, as the creation of internal models would have proven
too expensive for smaller institutions. Standardized risk models provide a
simpler framework but do not provide nuanced risk assessments, experts say.
CNBC
reports big banks have ramped up plans to modify and eliminate branches in
their networks. Among some of the changes: Bank of America has launched
digital bars at branches (to teach customers how to use digital offerings and
free up staff to sell more lucrative products); JPMorgan is closing branches
(the bank reports teller transactions in branches have declined by more than
100mm over the past 3Ys); and Citibank has reduced branch sizes to 600sf from
1,200 prior.
Thank
you to Ken S. who passed along this story from The Atlantic titled, "Who Can Go After Banks for the Foreclosure Crisis?"
Some might ask, "Why not sure the former homeowner? If fraud was involved,
like occupancy misrepresentation, the former owner should be held responsible -
blaming only the banks is very unfortunate." Cities are arguing that they,
too, were damaged by risky loans, and that they should be able to take the
lenders to court to regain their losses.
How
many banks are there in the United States? Roughly 6,000, down almost 1,500
banks, or about 19%, from 2010. Regulators have approved only 2 new banks since
2011 (versus about 100 average every year since 1990). But there is hope: the
FDIC recently announced it will change the de novo period from 7 years (post
crisis) back to 3 years (pre-crisis).
Global
Market Intelligence analysis finds there were a net 289 bank and thrift branch
closures in Q1, taking the total count down to 92,639 nationwide. This compares
to -323; -589 and -436 net closures respectively for the prior 3 quarters. For
the second time this year a credit union has announced a bank purchase:
Royal Credit Union ($1.8B, WI) will acquire Capital Bank ($36mm, MN). KeyBank
($93B, OH) will sell 18 NY branches to Northwest Bank ($9.0B, PA) for a 4.5%
deposit premium. Northwest captures $1.7B in deposits and $511mm in loans as part
of the deal and Key took the action to resolve antitrust concerns around its
First Niagara acquisition.
Your
Community Bankshares, Inc. (New Albany, IN) has agreed to merge with WesBanco,
Inc. (Wheeling, WV). In Montana Glacier Bank ($9.1B) will acquire Treasure
State Bank ($71mm) for about $12.9mm in cash and stock, or roughly 1.3x
tangible book. In Florida Stonegate Bank ($2.4B) will acquire Regent Bank
($362mm) for about $40mm in stock (100%) or about 1.4x tangible book. In
Illinois the Federal Savings Bank ($285mm) will acquire mortgage servicing firm
ICC Mortgage Services, and First Mid-Illinois Bank & Trust ($2.1B) will
acquire First Clover Leaf Bank ($655mm) for about $90mm in cash (25%) and stock
(75%). Pacific Continental Bank ($1.9B, OR) will acquire Foundation Bank
($443mm, WA) for about $67.1mm in cash and stock. Bank of the Cascades ($2.5B,
OR) will acquire Prime Pacific Bank ($120mm, WA) for about $17.1mm in stock.
In
Indiana State Bank of Lizton ($363mm) will acquire Indiana Business Bank
($68mm) for about $12.5mm in cash. Texas' Citizens State Bank ($780mm) will
acquire First Bank & Trust Co ($39mm). In Nebraska Security State Bank
($193mm) will acquire loan broker Metropolitan Building and Loan Association.
The industry learned that in California Mechanics Bank ($3.6B) will acquire
California Republic Bank ($1.7B) for about $329mm in stock, and Central Valley
Community Bank ($1.3B) will acquire Sierra Vista Bank ($156mm) for about $24mm
in cash (46%) and stock (54%) or about 1.23x tangible book.
But
all is not vows and wedding bells in the banking world. Old National Bank
($11.9B, IN) said it will exit its insurance business and sell the operations
to national insurance distribution platform player Prime Risk Partners (GA) for
a reported $93mm. And Trust Company Bank, Memphis, Tennessee, $20.7 million in
assets, was closed by the Tennessee Department of Financial Institutions and a
nod was given to The Bank of Fayette County, Piperton, Tennessee, with $374
million in assets, to assume all of the deposits.
Up
a little, down a little, so go rates. As noted yesterday, using the yield on
the U.S. 10-year T-note as a proxy, for much of 2016 its yield has ranged
between 1.98% (early March) and a low of 1.70% set in late February - very
stable. The usual suspects have been supplying agency mortgage-backed
securities into the market, and the usual suspects have been buying them.
Steady as she goes. But yesterday was quite a rally, and on no real news in the
US although we saw weakening Chinese manufacturing data, rate cuts in
Australia, and negative European growth outlooks. The 10-year note ended the
day better by over .5 to yield 1.80%, and agency MBS prices were better by
about .250.
Today
we have more news upon which to chew. (That doesn't sound right, but it is
grammatically correct.) The MBA told us what retail applications did last week.
(The overall index for last week was -3.4% following a drop of 4.1% the week
prior. Refis were -6.0% while purchase apps were -0.1%. The refi share of loans
fell to about 53%.) The April ADP report came out +156k, worse than expected.
Not that it directly impacts interest rates but we also had the March
international trade balance was $40.4 billion - will GDP be revised higher? Q1
labor productivity was -1.0% and unit labor costs rose. Markit Services PMI
will be released at 9:45AM EDT followed by April ISM non-manufacturing PMI at
10AM EDT. March factory orders will also be released at 10AM. We're at 1.78%
on the 10-year versus 1.80% last night, and agency MBS prices are a shade
better.
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