"Jesus Loves You."
Nice to hear in church, but not for a guy
in a Mexican prison.
Products
"'Best of the Worst.' Does this describe your subservicing
experience? That just about sums up the reason why The Money Source (TMS) brought their servicing in-house in
2015. By doing so, they saw their delinquencies improve by more than 50% and
customer service levels have been at all-time highs. TMS is now offering
state-of-the art subservicing for those of you tired of dealing with the 'Best
of the Worst.' To learn more, visit www.getSIME.com."
Use Mastermind to UNIFY your Business! "We'll be there... Will
you?" Unify has been an Enterprise solution for the
Mortgage Industry since 2009. "With our enhanced platform 'any' sized
organization can leverage the END to END solution. Unify will help loan
officers build, track and manage all aspects of their business and increase
productivity by 20% or more. Unify continues to add revolutionary features
like our Mobile App, Mortgage Inquiry Alerts and RainMaker to meet the demands
of its clients. Schedule your UNIFY DEMO at Mastermind now! Contact
Scott Benson (651.288.7510) or Matt Zabbo (618.610.5868).
State-level lending changesWe continue to be reminded of the cost, and difficulty, of lending in multiple states.
Washington State enacted the Revised Uniform Law on Notarial Acts, which applies to a notarial act performed on or after July 1, 2018. The bill specifies that a notarial officer has the authority to perform a notarial act, subject to certain requirements. The bill requires that a notarial officer determine that the individual has the identity claimed or that the signature being verified is the signature of the individual. The bill specified requirements for applicant for a commission, details for the official seal or stamp and responsibility of the director to maintain an electronic database of notaries public.
Iowa has modified several minor provisions under the
Consumer Credit Code. These provisions are effective as of July 1, 2017. The first amended provision is Section 524.213. This section modifies the
rule that directors shall not be paid an interest rate on deposits by a state
bank of which he or she is a director by adding that any waiver of customary
charges related to deposit accounts shall not violate this restriction.
Montana
amended its provisions to correct erroneous references in material that include
updates regarding notaries, taxation, and mortgage servicer prohibitions. These
provisions are effective on October 1, 2017. Other updates include provisions
regarding disabled veterans, invoices of distributors and aviation fuel
dealers, accreditation of schools, language programs, firearms, and license
plates. The full text is
available here.
Vermont modified multiple provisions through House Bill 182 that includes amendments regarding licensed
lenders and loan servicers. Provisions in this bill range from effective
immediately to effective on July 1, 2017; unless noted otherwise. Amendments
affect pre-licensing education requirements for loan originator
applications. Financial responsibility of money
servicers, debt adjusters and loan servicers and how the Commissioner might
evaluate such financial responsibility. The bill defines the term "virtual
currency" and added new definitions for "lead generation" and
"loan solicitation". Provisions have been added for individuals
engaging in the financial services regarding suspension, revocation, and
nonrenewal receivership.
Vermont also enacted provisions, effective on July 1, 2017,
through House Bill 35. Sec. 1. 9 V.S.A. chapter 57 Subchapter 1 is now titled "Voidable Transactions" rather than
"Fraudulent Transfers." Amendments were made to § 2285 to make
minor changes to many of the definitions in the section. Also, an
amendment was made relating to insolvency, burden of proof regarding the
elements of the claim for relief by a preponderance of the evidence to a
creditor making a claim for relief under the applicable subsection and the
rules used to determine a debtor's location.Vermont House Bill 152 revises the Vermont Revised Uniform Fiduciary Access to Digital Assets Act by adding Sec. 1. 14 V.S.A. chapter 125. The act clarifies the law regarding access to digital assets in the case of death or incapacitation and grants fiduciaries access to a user's online accounts, correspondences, and other computer files, if specified in his or her will, trust, or similar agreement. These provisions are effective on July 1, 2017.
Nebraska amended its provisions relating to fees for recording and the filing of certain documents through House Bill 152. These provisions are effective on September 1, 2017 (or 3 months following adjournment of the current legislative session). Allocations for a portion of the recording fee designates to preserving and maintaining public records and for modernization and technology needs relating to such records. The update further provides that the funds allocated under this subsection shall not be substituted for other allocations of county general funds to the register of deeds office or any other county office.
The General Assembly of North Carolina has enacted Senate Law 2017-10, which streamlines mortgage notice requirements, effective immediately. The Senate Law modifies North Carolina G.S. § 45-91 to state that the servicer shall not be required to send such a statement if the fee is included in a periodic statement sent to the borrower that complies with paragraphs (b), (c), and (d) of 12 C.F.R. § 1026.41, or if the fee "results from a service that is affirmatively requested by the borrower, is paid for by the borrower at the time the service is provided, and is not charged to the borrower's loan account."
Servicing
news
Contrary to
expectations about growing mortgage lending volumes, current industry trends
suggest a gradual reduction in capacity for both lending and servicing that should
alarm policymakers. Christopher Walen sent this piece out in September warning the industry. Servicing can influence rate sheet pricing just as much as the MBS market: what investor is going to pay a premium for loans in a state that tends to pay-off earlier than other states? MountainView Financial Solutions' Matt Mauer sent out a nice chart on state-specific prepayment graphs.
Phoenix Capital is offering up, with bids due June 7th, a pool of $158 million Ginnie Mae servicing rights. Write to Steve Fleming if you'd like more information. 71% FHA, 15% VA, 13% USDA (by loan count), >99% Fixed 30, <1% Fixed 15, 1.7% DQ; 0.6% FC, 1.2% BKs, 3.937% (F30) Note Rate, 4.040% (F15) Note Rate, 0.366% wAvg Net Service Fee, Avg Bal $211K, 99% CA, <1% TX, <1% AZ (by ln ct.), wAvg orig FICO 680; wAvg Orig LTV 92%, wAvg Age 27 months, 89% Single Family Detached Properties, 100% Owner Occupied properties, 80% Purchase Originations 83% Retail Originations, 8% FHA Streamline, 1% VA IRRRL.
I have seen two Incenter
Mortgage Advisor MSR packages recently. The first is a $2.1 billion, 7,800
loan, FNMA & FHLMC pool. The package has a WAC of 3.837%, $275k average
loan size, 766 WaFICO, 72% WaLTV, 90% OO, 64% SFR, 21% PUD, 42% RT Refi, 40%
Purchase, 16% C/O with state concentration: California (41%), and NJ/CO/MI 6%.
The second package: $1.4 Billion GNMA, 3.87% WAC, $216k average loan size, 691
WaFICO, 94.8% WaLTV, 99.9% OO, 97% SFR, 95% Purchase, with Texas (47%),
Colorado (16%), Oklahoma (12%) and Washington (7%) as the top state. Next up
for IMAC is a $10 Million "Fix & Flip." The 33-loan portfolio has
a 12% WAC, 685 WaFICO, 4/2018 Maturity Date, As Is LTV 79.8%, After Repair
Value 59%, with properties exclusively in New York and New Jersey.
Phoenix Capital's Project Fiji: $585 Million Fannie
Mae and Freddie Mac bulk servicing rights offering, 60% FNMA A/A, 40% FHLMC
Gold, 88% Fixed 30, 12% Fixed 15, 4.029% (F30) Note Rate; 3.379% (F15) Note
Rate, Avg Bal $269K, 100% of loans are located in Washington, 753 WaFICO, 79%
WaLTV, 91% Single Family/PUD Properties, 91% Owner Occupied Properties, 65%
Purchase Originations, 100% Retail Originations, 4% HARP loans; Project Alpine:
$4.7 Billion Fannie Mae, Freddie Mac and Ginnie Mae bulk: 94% FNMA , 6% FHLMC,
67% Fixed 30, 33% Fixed 15, 3.663% (F30) Note Rate, 3.052% (F15) Note Rate, Avg
Bal $214K, geography: 23% CA, 7% GA, 6% MA, 769 WaFICO, 58% WaLTV, 95% Single
Family/PUD Properties, 88% Owner Occupied Properties, 91% Cash-Out Refinances,
80% Retail Originations....Prestwick Mortgage Group had a $1 billion Massachusetts FNMA A/A package. Total portfolio characteristics were as follows: $263,677 average unpaid principal balance, 3.764% WAC, 68% WaLTV, 100% retail (of Seller or an affiliate of Seller), approximately 93.5% of the loans are on properties in Massachusetts 0.209% delinquency ratio (30+), with no loans in foreclosure or bankruptcy as of the data date.
Incenter Mortgage Advisors, sent out two
servicing deals this week. A Ginnie Mae package for $1.4 billion includes
mortgages originated exclusively through the retail channel with a weighted
average interest rate of 3.57 percent and delinquencies of 2.27 percent based
on number of loans. The loans are spread out across the U.S. Bids are due June
7. The second is tied to Fannie Mae loans. The Fannie portfolio has no
delinquencies whatsoever. The average interest rate is 4.33 percent. Bids are
due June 6.
Capital marketsWe're on Tuesday already, but looking back to Friday U.S. Treasuries and agency MBS prices hardly changed versus Thursday's close (only a few 32nds up or down) despite an upward revision to the official estimate for Q1 U.S. GDP growth. And durable goods orders for April missed expectations but March's numbers were revised up. The 10-year note closed a shade better yielding 2.25% and MBS prices roughly unchanged.
Rates are down a shade this morning in the U.S. Why? Mostly news and nervousness from Europe. Eurozone equities are under mild pressure due to ongoing Italian election worries, some Greek debt worries, soft regional inflation numbers in Germany & Spain, and dovish remarks from Mario Draghi are undercutting reflation sentiments in Europe.
This morning we've already had April's Personal Income and
Personal Consumption/Spending (both +.4%, as expected), and April PCE prices.
Coming up are the S&P/Case-Shiller Home Price Index for March, along with
Consumer Confidence. Tomorrow is the MBA's read on last week's apps, as well as
May Chicago PMI, April Pending Home Sales, and the May Fed Beige Book. Thursday
are May Challenger Job Cuts, May ADP Employment Change, Q1 Productivity and
Unit Labor Costs, Initial Jobless Claims, April Construction Spending, and May
ISM Manufacturing Index. Friday, we can look forward to the May employment data
and April trade balance
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