The frugal man walked into the house
panting and almost completely exhausted. "What happened, Honey?"
asked his wife.
"It's a great new idea I have,"
he gasped. "I ran all the way home behind the bus and saved $1.50
cents."
"That wasn't too smart," replied
his wife. "Why didn't you run behind a taxi and save ten dollars?"
Research by the Appraisal Institute finds the number of
appraisers has declined 22% since 2007 and 60% are over 50 years old. Aging?
Yes, nature bats last. Regarding the postponed MBAC conference in South
Carolina due to Category 4 Hurricane Matthew, JM asks, "Did anyone else
find the theme of the meeting 'right place, right time' ironic?" And I was
told by a few sources that the Miami Trade Show on Thursday was also cancelled
as today and tomorrow will be busy evacuation days for the Florida &
Carolina coasts.
"Fish when they're feeding. Borrowers shop for two weeks,
and it is important to be the person that gets their attention during that
time. Many borrowers rely on reviews and recommendations as well as social
media to shop; turn these conversations into customers by being on the social
platforms they are shopping on and be sure to know how to effectively use your
social pages/website in a way that will turn visitors of your page into
customers. Learn how to 'fish when they're feeding' in this complimentary
upcoming webinar from National Mortgage Professional Magazine and presented
by United Wholesale Mortgage titled 'Get Social: Marketing Tips to Reel in
Clients' tomorrow, Thursday, October 6, at 2PM ET by registering here.
If you haven't visited Richey May's free, interactive
dashboard of the newly released 2015 HMDA mortgage origination data, check
it out here. You can focus in on specific markets, lenders and
product types to uncover data that will help you with strategic planning for
the coming year. And while the dashboard is easy to use, Richey May is
hosting a couple of free webinars to show you how to get the most out of the
report, as well as to discuss trends seen in the data. Both webinars will
be held from 12:00 - 12:30 pm MDT; register here for October 11 and here for October 18.
Join attorneys Phil Schulman, Holly Spencer Bunting and
Charles Weinstein for a 60-minute webinar highlighting certain of the TRID changes
and clarifications proposed by the CFPB. This webinar will cover how the CFPB
is addressing the "black hole" for resetting tolerances, proposed
clarification regarding the sharing of borrower and seller Closing Disclosures
with parties to the transaction, updated proposed guidance on completion of the
disclosures for construction-to-permanent mortgage loans, proposed changes to
tolerances applicable to closing costs where a written list of settlement
service providers is required, and several other relevant topics.
Join MIAC and The Mortgage Collaborative for an Introduction
to Secondary Market Whole Loan Trading webinar on Thursday October 20th at 2:00 PM EST.
Wholesale Brokers should take advantage of Franklin
American Mortgage Company's variety of informative trainings. FAMC
publishes a "Monthly Customer Training Calendar" available to
its customers through the FAMC website. Partnered with industry
affiliates, FAMC is able to offer a variety of training opportunities such as
"Appraisal Review", "Analyzing Income for the Self-Employed
Borrower" and "Shut the Door on Fraud" to name a few.
These live webinars assist brokers with training needs and offer true
educational value for both new and seasoned employees.
MBA's Mortgage Action Alliance (MAA) is running their
first annual Action Week, a weeklong event dedicated to getting more
individuals involved in political advocacy that supports our industry.
Individuals can sign up to join MAA at www.mba.org/joinmaa, and receive information on running an
enrollment campaign at their office at www.mba.org/actionweek. MAA members receive alerts when
legislation affecting the real estate finance industry is being considered with
an easy way to contact their elected officials, as well as a weekly newsletter
on legislative and regulatory events affecting the industry.
Essent invites all Mortgage professionals to
participate in their on-line learning opportunities. As usual, there are
several topics to choose among. October brings a newly developed course
featuring Freddie Mac's Loan Product Advisor and its redesigned Feedback
Certificate.
I will be speaking at the Knoxville Mortgage Bankers
Association luncheon on Tuesday, November 8th at Cherokee
Country Club beginning at 11:30 am. Cost for lunch is $20 and the deadline to
register is noon on Friday, November 4th. Registration is at this site.
Sign up for the HomeBridge Renovation Training - What You Need to Know and Why on October 12th.
There is the ACI Residential Mortgage Litigation
and Regulatory Enforcement Conference in San Diego installment on Jan. 11-12. "Meet an in-house
counsel from banks and financial institutions, hear how judges interpret and
analyze evidence and arguments specifically in the Residential Mortgage
context, and learn what's happening at the government level specifically in the
Mortgage context. By attending you will hear straight from the federal and
state agencies themselves."
On Wednesday, 10/19/2016, join TMBA to hear Chuck Klein
and Troy Garris discuss Mergers and Acquisitions. Tune in to learn how changes
in the market have impacted M & A processes and activity. Click here to register.
A new FHA pre-recorded training
webinar is available. The topic is its SF Handbook Module 9: Nonprofit Approval
and Governmental Entities. This new module augments FHA's recently updated
series of SF Handbook self-paced, pre-recorded webinars.
On October 18th, California MBA is providing a
free webinar. Topics will include Duty of Care, SB 1150,
HERO/Priority Liens and more.
California MBA is accepting registration for its
Legal Issues & Regulatory Compliance Conference in Costa Mesa December 5-6th.
Details and registration information can be found here.
Speaking of legal issues, disputes between a homeowner's
association (HOA) and an owner can be particularly contentious. To resolve
these disputes, most CC&Rs have mandatory mediation provisions, stating
that the parties must first try to resolve the issue through mediation, instead
of costly litigation. The process of mediation is more collaborative and less
adversarial than the traditional litigation route -- it attempts to help the
parties arrive a settlement that is mutually beneficial and agreeable. Because
of the ubiquity of mediation provisions in HOA governing documents, and the
growing popularity of mediation as a dispute resolution technique, attorney
Simon Offord discusses the essential elements of HOA mediation in his most recent
blog article.
Moving to the big news this week (so far), PHH
announced that it had received written notice from Merrill Lynch (Bank
of America) that it would be terminating its relationship with PHH as of March
31st 2017. PHH noted that originations from Merrill will contribute about $45
million of pre-tax earnings in 2016. Merrill had earlier notified the company
that it would be removing 60% of its closing volume. In 2015, Merrill was the
company's largest source of mortgage volume and accounted for 26% of its volume.
Does it matter? Certainly there is an impact on earnings,
but from a balance sheet perspective many analysts put little or no value on
the private label contracts.
In capital market news, although not residential
mortgages, American Banker's Kevin Wack reported that, "Prosper
Marketplace is closing the secondary market for its loans, citing a lack of
demand among investors. San Francisco-based Prosper connects consumers who want
a personal loan with investors who are attracted to the yields those loans
offer. Investors in the loans include both everyday savers and large financial
institutions. Prosper's secondary market will be shut down as of Oct.
27...Unless another option emerges, retail investors who had hoped to sell the
company's three-year and five-year loans will now need to hold them until they
mature.
"As we have rebuilt and enhanced our retail investor
experience, we have found that we must focus on those areas that will provide
the broadest set of users with maximum value," the company said in a
statement. "Over time we've found that very few investors are using the
secondary market. While we've decided to wind down this service, the decision
in no way changes our commitment to the retail investor."
"Prosper's secondary market was operated through
Foliofn. That firm continues to run a secondary trading platform for Lending
Club, which is one of Prosper's top competitors. Prosper's decision to shut
down its secondary market comes three months after the company rolled out a
revamped website that was designed to appeal to retail investors. Last month,
the firm reported a $35 million quarterly loss as loan originations fell
sharply.
"Investors' inability to sell their loans easily is one
key reason why relatively few retail investors have put money into the
marketplace lending sector. However, the problem figures to be eased by the
recent launch of three funds that allow investors to invest in a swath of the
sector's loans, rather than purchasing individual credits."
Looking at Tuesday's bond market, up a little, down a
little - and yesterday prices were down. There was talk about the European
Central Bank's policy moves, or various Fed president's speeches, or animal
spirits... by the end of the day the 10-year note prices worsened about .5 to
close at a yield of 1.68%, and the 5-year T-Note and agency MBS prices worsened
between .125-.250.
This morning we've had the weekly mortgage applications
from the MBA (up nearly 3% due to refinances, which now account for 64% of all
applications). We've also had the ADP private employment report for September
(+154k with a slight August revision downward) as well as August's
international trade balance ($40.7 billion, about as expected). Later are
Markit Services PMI, August Factory Orders, and the September non-manufacturing
ISM. With all that going on we find the 10-year wallowing around 1.68% with
agency MBS prices a shade better versus Tuesday's close.
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