(The NFL season commences soon after
Labor Day in three weeks. This is part 3 of football quotes & jokes
guaranteed to insult practically every team. Please, no complaints - you can
change the team to whoever you like.)
"I could have been a
Rhodes Scholar except for my grades." - Duffy Daugherty / Michigan
State
"Always remember Goliath
was a 40-point favorite over David." - Shug Jordan /
Auburn
"I asked Darrell Royal,
the coach of the Texas Longhorns, why he didn't recruit me. He replied, 'Well,
Walt, we took a look at you, and you weren't any good.'" -
Walt Garrison / Oklahoma State
"Son, you've got a good
engine, but your hands aren't on the steering wheel." - Bobby
Bowden / Florida State
"Football is NOT a contact
sport, it is a collision sport. Dancing IS a contact sport."
- Duffy Daugherty / Michigan State
After USC lost 51-0 to Notre
Dame, his post-game message to his team was, "All those who need showers,
take them." - John McKay / USC
Switching gears to legal
issues...What's this? Lawyers giving lawyers a bad name relating to mortgages?
Only in Chicago!
The industry took notice
of a recent ruling that showed the foreclosure of Nevada HOA "Super
Lien" cannot extinguish a mortgage lender's security interest.
(In other HOA news, Wells
Fargo expanded it Homeowners Association Certification Review for
condominiums under the Non-Conforming Program. Under the Wells Fargo HOA
Certification Review, at least 50% of the units sold must be sold to owner
occupants for use as primary residences or second homes.)
Did PricewaterhouseCoopers
fail to spot, for seven years, a multibillion dollar fraud that led to the demise of
Taylor Bean & Whitaker Mortgage Corp.? A lawyer for the lender's bankruptcy
trustee told a Miami judge that is exactly what happened. TBW went belly up
exactly seven years ago, and shows that the industry finds it hard to move forward
while focused on the past. And how did poor Mr. Waterhouse wind up with his
name un-capitalized?
And don't forget that the
Supreme Court of the State of New York ruled in favor of Barclays Bank PLC
in a breach of contract action by granting a motion to dismiss in Federal
Housing Finance Agency v. Equifirst Corporation. This is good news for
lenders and brokers as a whole who are facing claims against Lehman Brother's
Holdings, Inc. ("LBHI") in New York.
Barclays was alleged to
be the successor and alter ego of EquiFirst, both of whom were sued by the
Trustee U.S. Bank National Association ("US Bank"). Barclays filed a
motion to dismiss based on a New York statute contending that the claims for
breach of contract, anticipatory breach, and breach of the implied covenant of
good faith and fair dealing were time barred. The Court, basing its decision on
Ace Securities as well as some of the Court's previous rulings, found in
Barclays' favor that the claims were in fact time barred.
In its description of what
happened the American Mortgage Law Group wrote, "In making its ruling, the
Supreme Court rejected U.S. Bank's contention that its claims for breach of
representations and warranties were timely under an accrual clause in the
applicable Flow Mortgage Loan Purchase Agreement ("Flow LPA"). The
loans at issue were sold to Lehman Brother's Bank, FSB ("LBB"). Thus,
applying the reasoning in Ace, the Court found that U.S. Bank's claim
accrued not when Barclays failed to comply with a repurchase demand, but rather
on the securitization closing date in February 2007 as the operative
representations and warranties were made on the closing date of the
securitization. The Trustee then sought the opportunity to re-plead the matter,
which the Court likewise denied.
"For AMLG clients
facing claims against LBHI, this adds further support to the contention that
LBHI's claims, which we contend are based on and derivative of breaches of
representations and warranties, are time barred."
There was a HUD
settlement/agreement with the City of Richmond, Virginia to resolve 14
discrimination complaints filed against the City by Hispanic residents. The
complaints alleged that the City of Richmond selectively enforced its code
requirements against residents of the City's mobile home parks, who are
predominantly Hispanic. Of course the Fair Housing Act prohibits discrimination
in housing because of national origin, including discriminating against persons
because of their national origin when enforcing local housing codes.
The complainants, who are
current or former residents of mobile home parks in Richmond, alleged that, due
to their national origin, the City imposed unreasonable and legally unjustified
requirements that they had to meet to avoid condemnation of their homes;
intimidated and harassed them by conducting intrusive inspections with armed
police escorts and threatening criminal court action and large monetary fines;
and failed to provide meaningful access to residents who have limited English
proficiency.
Discrimination is wrong,
regardless of the alleged target. The interesting thing, of course, is the
large percentage of first-time home buyers who are minorities. In many parts of
the nation Hispanic buyers represent an undeniable segment of the buying
population, and lenders are hiring originators truly based on the ethnic
makeup of the area. L. Maria Zywiciel, president of NAHREP Consulting,
came out with a new blog that addresses this topic: "5 Things to Know When Working with Hispanic Clients."
Hispanic or not,
Millennial or not, plenty of lenders are courting first-time home buyers. Where is the most expensive place to buy a starter home? Honolulu,
where the income required to buy a starter home is over 6 figures and the
median income is somewhere around $75k. Unsurprisingly, the West Coast
dominates the unaffordable area. On the other side of the coin, if you make
just over minimum wage, you can afford a starter home in Pittsburgh.
San Francisco aint cheap. Metrostudy has released
the results of their 1Q16 survey of the new home market in the San Francisco
Bay Area, and the results show continued strong demand even as the market reaches
affordability limits. Some of Regional Director Greg Gross' findings
include: 1Q16 Annual New Home Starts Up 17% YoY; Quarterly Starts Up 6% over
1Q15, 1Q16 Quarterly New Home Closings Up 6% YoY; Quarterly Closings Up 8% from
1Q16, and start activity increased significantly in the higher price ranges;
the average "offer to build" price increased 10% YoY to $856K; 22% of
starts priced over $1 million. If you would like to
read the full report, click here.
Baby Boomers like lists, and here are the top 20 hottest real estate markets in
July this year, according to Realtor.com. There's everything from the West
Coast swath to Rust Belt pockets of note.
Whether its title,
mortgage, or flood, there are changes and trends in the insurance side of
residential lending.
Genworth Mortgage
Insurance today announced an expansion of its Homebuyer Privileges program to include discounts for
nearly 300,000 retailers nationwide, including Target, Costco, Sears Commercial
and ADT, among others. The program allows homebuyers to save up to $7,500
through a variety of retailer coupons. Loan Officers can extend these savings
to homebuyers regardless of whether or not their loan includes private mortgage
insurance from Genworth Mortgage Insurance. Homebuyers have up to 12 months to
enroll in the program, and up to 12 months after enrolling to utilize the
discounts. With a mobile app expected to follow by early next month, this
Genworth Mortgage Insurance service has no limits on how many discounts a
homebuyer can use during their 12-month eligibility period.
Effective August 10, FHA's Mortgagee Letter
2016-12 203(k)
Rehabilitation Mortgage Insurance Program: 203(k) Consultant Draw Inspection
Fee permits 203(k)
Consultants to charge a Draw Inspection Fee that is reasonable and customary
for work performed in the area where the property is located, provided the fee
does not exceed a maximum of $350. The previous fee limit was $100.
Wells
Fargo is updating its flood insurance deductible requirements for
conventional Non-Conforming Loans to allow private flood insurance deductible
amounts exceeding the National Flood Insurance Program (NFIP)
requirement. For private (non-NFIP) policies, the Cooperative Project
Approval Team (CPAT) may accept a higher deductible than that permitted by
NFIP, currently $10,000* on any one building when specified conditions are met.
U.S.
Bank posted two enhancements to its flood insurance policies for
determining the full insurable value when using the hazard insurance policy.
The first is the ability to assume the foundation is included in the insurable
value shown on the hazard insurance policy. The second is regarding the actual
percentage of the replacement cost value if it is not reflected on the hazard
insurance policy. Lenders may assume, unless otherwise stated in the insurance
policy, that the insurable value shown on the policy provides coverage at % of
the RCV.
The big event for the
markets today will be the release of the Federal Open Market Committee minutes
from its last meeting in late July. ("Who was supposed to bring the
donuts? Let the minutes reflect that, once again, Ms. Yellen was too busy to
stop by Dunkin' Donuts on the way in.") But looking back to yesterday
New York Fed President Dudley indicated that the Fed is closer to hiking rates
and that the Treasury market's current high valuations are
"concerning." We also had some better-than-expected housing starts
and industrial production data. The core consumer price index grew slightly
slower than expected - inflation hasn't been an issue for decades.
Besides the Fed meeting
we have no other scheduled economic news on tap. We've already had the MBA's
application data. It doesn't move rates, but gives MBS investors a sense of
supply eventually coming their way. Apps were -4% with both purchase &
refis -4 percent.
While we wait for the 2PM
ET Fed minutes, to see if any squabble broke out about who sat in which seat at
the table, for those quantitatively inclined, yesterday the 10-year worsened
.250 in price and closed at 1.58%, and the 5-year T-note and agency MBS prices
sold off .125. This morning the 10-year is pretty much unchanged from
Tuesday's close as are agency MBS prices.
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