Recently a routine police patrol parked
outside a bar in Austin, Texas. After last call the officer noticed a man
leaving the bar so apparently intoxicated that he could barely walk.
The man stumbled around the parking lot for
a few minutes, with the officer quietly observing.
After what seemed an eternity in which he
tried his keys on five different vehicles, the man
managed to find his car and fall into it.
He sat there for a few minutes as several
other patrons left the bar and drove off.
Finally, he started the car, switched the
wipers on and off--it was a fine, dry summer night, flicked the blinkers on and
off a couple of times, honked the horn and then switched on the lights.
He moved the vehicle forward a few inches,
reversed a little and then remained still for a few more minutes as some more
of the other patrons' vehicles left.
At last, when his was the only car left in
the parking lot, he pulled out and drove slowly down the road.
The police officer, having waited patiently
all this time, now started up his patrol car, put on the flashing lights,
promptly pulled the man over and administered a breathalyzer test.
To his amazement, the breathalyzer
indicated no evidence that the man had consumed any alcohol at all!
Dumbfounded, the officer said, I'll have to
ask you to accompany me to the police station. This breathalyzer equipment must
be broken.'
"I doubt it", said the truly
proud Redneck. "Tonight, I'm the designated decoy."
Recent weather has renewed the disaster declarations from
lenders. As always many take their cue from FEMA's disaster declaration site. Here is a smattering of
updates.
In response to the wildfires in Tennessee and in response to a
Federal Disaster Declaration, M&T Bank will enforce the Disaster
Re-Inspection Policy for all properties located in the affected parishes in the
counties of Sevier.
Federal disaster aid with individual assistance has been
made available to counties in the State of Georgia to supplement individual,
state, and local recovery efforts in the areas affected by Severe Storms,
Tornadoes, and Straight-line Winds beginning January 2. Current active disaster
declarations in Georgia includes Baker, Calhoun, Dougherty, Early, Mitchell,
Turner, and Worth counties. Prior to closing and funding, ResMac, Inc.
will require a property inspection for any loan secured by a property in the
affected area. If the subject property is in one of the impacted counties and
the appraisal was completed prior to the incident period end date, ResMac will
require a post disaster inspection confirming the property was not adversely
affected by the disaster.
AmeriHome re-inspection requirements are in effect
for 4 counties in the state of Mississippi affected by severe storms and
tornadoes January 20-21, 2017.
With the bond market shifting, companies are tweaking
their fee and loan level price adjustment schedules, and in some cases, lock
policies. And even the way money is handled. As an example...
To maintain proper disbursement schedules and data uploads
for determination of payment due dates and calculations, Pacific Union
has revised the window for prepaid collections and final settlement
payment. Specifically, Correspondents are now required to collect or
verify payment of any unpaid tax disbursements that will be due and payable
within 60 days of the loan closing or 30 days from the Pacific Union
Purchase Date.
LDWholesale has done away with escrow waiver fees
for all conforming Fannie Mae and Freddie Mac products. Program Highlights are available on its website.
For new Best Effort commitments taken on or
after Monday, January 23rd, PennyMac will reduce the minimum
extension term to one (1) calendar day. Correspondents will be permitted to
extend the commitment delivery due date of a Best Efforts commitment for the
maximum cumulative term of the lesser of thirty (30) calendar days or the
original (or relock) commitment term. PennyMac will reduce
the commitment price by the extension fees as noted in its announcement.
Effective
Monday, January 23rd, PennyMac will be making changes to
values in select LLPA grids. No structural changes are being made at this
time. Sample rate sheets highlighting the changes were placed onto
PennyMac's Portal on Wednesday, January 18th, at approximately 6 PM
PST. Clients should have reviewed the sample rate sheets, and notify their
pricing vendor of the changes.
Effective immediately, Flagstar
Bank's Marketing Department is now able to lock loans that are in
underwriting, at an increased interest rate, without sending the loan to an
underwriter for approval first.
As the industry know, the MIP change was temporarily
suspended. Mountain West Financial published that its management foresaw
that, and that the most recent MIP reduction (as published in HUD Mortgagee
Letter 2017-01) would be rolled back. "This change will likely be
effective immediately, and could create significant operational challenges for
lenders and their customers. Given this information, if this reversal is
implemented, Mountain West Financial, Inc wants its customers to know that we
are preparing the contingency steps necessary to unwind recent changes due to
the reduced MIP rates."
U.S. Bank has updated its portfolio interest only
ARM notes and riders to reflect a lifetime floor rate equal to the margin. The
new loan documents may be used immediately and are mandatory for U.S. Bank
interest only ARM loans with notes and riders dated on or after February 1,
2017. The updated product forms are available in its Seller Guide.
Flagstar posted updates regarding The USDA has
clarification that a Realtor Administrative Fee is an unallowable fee for the
borrower to pay at closing. The fee may be paid by the seller and/or
lender credits may be used to offset this fee and must be reflected in the Paid
by Others column on the CD. Also, noted, Pro-rations reflected in Section L
cannot be utilized towards the borrower's investment.
Penny Mac has updated requirements regarding Trailing documents and Unmatched data fees.
What about changes in appraisal
requirements and evaluating collateral?
A recent Citibank bulletin referenced general credit policy
updates that include Age of Appraisals, Citibank Assessment Areas,
Detached / Site Condominiums: Limited Project Review Requirements, Property
Inspection Waivers, Condominium Projects: Mixed Use Space. Clarifications
include: Proof of TILA Error Corrections, Self-Employed Business income,
Verifying Assets and Student Loans.
Wells Fargo Funding will no longer require a
project review on site condominiums that meet Fannie Mae requirements and
secure conventional Conforming Loans underwritten by Fannie Mae Desktop
Underwriter® (DU®) effective for loans purchased on or after January 24th.
Nationstar Mortgage posted the continuation of
Appraisal oriented deficiencies trending within the loan submissions received. In this best practice, Nationstar's focus is on its
Appraisal Review process and provide top trends, tools and resources that are
available.
Capital markets & rates
Hunt Mortgage Group, a leader in financing
commercial real estate throughout the United States, announced it provided a
Fannie Mae loan facility in the amount of $5.3 million to enable the
acquisition of a manufactured housing community located in San Andreas,
California. The final loan covered approximately 75% of acquisition costs.
Oak Shadows Mobile Home Park is comprised of one, one-story community building
and 105 pads. The property was developed in 1977, is situated on a 17.8acre
parcel and offers 230 parking spaces. It is age-restricted to 55 and older and
is 100% occupied. Property amenities include the leasing office and
clubhouse with a kitchen and fitness room. Outdoor recreational activities
include a swimming pool and spa. All the pads at Oak Shadows are
double-wide. Some of which can accommodate "triple-wide" homes.
Yesterday morning the bond market started off with losses
but then recovered after we saw a plunge in new home sales for December and
solid demand for the 7-year Treasury auction. On top of that, Initial Jobless
Claims reportedly rose more than expected last week (but the absolute level of
claims remains near historic lows and unemployment is a lagging indicator
anyway), but the job market remains quite healthy. By the end of the day agency
MBS closed higher in price (about .125) and spreads to risk-free Treasury
securities mostly tighter, and the 10-year's yield at 2.51%.
This
morning we've seen the first look at Q4 Gross Domestic Product (+1.9% but there
are always revisions the next two months) and final sales (+.9%), and Durable
Goods (-.4%, ex-transportation +.5%). Coming up is January's Michigan
Sentiment. After the GDP and Durable Goods data, which are very complicated
numbers, we find the 10-year's yield wandering around 2.51% with agency MBS
prices better by a smidge versus Thursday's close.
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