The Will
In Annapolis, Mr. Wilson is on his deathbed
and knows the end is near. The nurse, his wife, daughter, and two sons are with
him.
He asks that two witnesses be present and a
camcorder in place to record his last wishes, and when all is ready he begins
to speak:
"To my son, James, I want you to take
the Cedarwood Cove houses."
"My daughter Ellen, you take the
apartments in Highland Beach."
"My son, Joe, I want you to take the
offices over in the City Center.
"Sarah, my dear wife, please take all
the residential buildings in Edgewater."
The nurse and witnesses are blown away as
they did not realize the extent of his real estate holdings, and as Mr. Wilson
slips away, the nurse says, "Mrs. Wilson, your husband must have worked
very hard to have accumulated so much property."
To which the wife replied, "My husband
had a paper route."
For me this week includes Maryland, Utah, Wyoming, and California. There are all kinds of rumors
out there, ranging from Donald Trump naming Brian Montgomery as the next
FHA commissioner to US Bank re-thinking its role in the HFA administration
business. Stay tuned. The mood out there is somewhat mixed, depending on what a
given lender spent 2016 doing: making reinvesting in personnel &
infrastructure a priority, or not. We'll see how 2017 rates for the latter
group. It turns out states have underrated places, and since plenty of
people like lists someone posted their opinion of each state's most underrated place.
Products
What is the "right" number of compensation plans
for Originators? Lenders often talk about streamlining their compensation
plans, but that plan goes out the window when recruiting big producers. According
to STRATMOR Compensation Connection, in 2015 the average Retail Lender offered
17 unique compensation plans to Loan Originators and that number is expected to
increase with a pick-up in recruiting. How do your plans compare to
peers? Participate in the 2017 STRATMOR Compensation Connection to find out.
"This year we're digging deeper into benefits to look closer at PTO, Healthcare,
401K, and Educational Assistance offerings by lenders. The deadline has been
extended to May 15, so don't miss out on your chance to find out how your
compensation, compensation plans and benefits compare to industry standards and
peers. To participate, visit our site. For questions regarding this program,
please contact us at compconnection@stratmorgroup.com."
Mortgage Automation Software provider, Floify, announced the launch of their new Disclosure Desk,
which allows lenders and compliance teams to streamline the entire disclosure
process. The process of requesting, collecting, tracking, and securing borrower
disclosures has remained a very manual process, often requiring
dedicated teams to ensure strict compliance. Floify's Disclosure Desk
simplifies the disclosure workflow between the borrower and lender, saving
hours per loan and providing an elegant, modern experience for the disclosure
desk associates and borrowers. Lenders can track their disclosure doc
requests in their disclosure desk, get time-stamps on all borrower
communications and signatures, and can easily see the disclosure status of all
loans in their pipeline. Once approved, disclosure packages are securely
integrated with the lender's LOS. Lenders and their teams can get more information and a demo of the Floify Disclosure Desk
here.
D+H's MortgagebotMobile - an exciting new feature of MortgagebotPOS™
- is a web-based solution that allows financial institutions to take accurate,
qualified applications through smartphones and tablets. You might ask, who
would fill out a mortgage applications on their mobile device? Or is this a
necessary channel? Early adopters of MortgagebotMobile are seeing upwards of
20-50% of all mortgage applications being started, worked-on or completed in
the mobile channel, most coming from non-Millennials. Can
you afford to miss out on that volume? Click here to find out how you can increase your competitive advantage by partnering
with D+H
Legal & compliance
The question out there in the industry is if standardized
federal regulations would lower costs. Plenty of smart folks wonder if moves to
federally de-regulate will cause "blue-state" legislatures to
essentially amend state regulations to comply with previously rescinded federal
regulations. Having differing regulations across different states would
certainly drive up compliance costs for any mortgage company doing business
across state lines.
Trump's review of Dodd-Frank won't be complete by June as originally targeted
due to staffing shortages and instead will be done in stages. The Treasury
Department will first report back on what banking rules could be changed,
including capital requirements, restrictions on leverage and speculative
trading.
The U.S. Department of Housing and Urban Development (HUD)
announced an agreement between Wescom Central Credit Union,
based in Pasadena, California, and a married couple, resolving allegations the
company denied the couple's mortgage loan application because the wife was on
maternity leave.
Thank you to PrimeLending's Mark Raskin who sent me
an update on Texas home equity news. Namely, the Texas State House
passed SJR 60 (companion House Bill was HJR 99) meaning a proposed amendment to
Section 50(A)6 of the Texas Constitution will be on the ballot this
November. The TMBA has been championing this for several legislative
sessions. Key provisions of the proposed amendment include: removing the
"once a home equity loan, always a home equity loan" provision
currently in place, providing consumers an option to refinance a seasoned home
equity loan into a non-home equity product, lowering the cap on fees from 3% to
2% BUT excluding title premium, appraisal and survey expenses from the fee cap
which will allow lenders to make smaller loan amounts to consumers, allowing
farm and ranch property owners the ability to obtain a home equity loan while
maintaining their agricultural valuation on their properties (currently only
available to farm and ranch owners that have active dairy farms), and several
other technical changes, updating out-of-date terminology, etc.
The California Department of Business Oversight
(DBO) released updated information regarding compliance with
Financial Code section 50204, subdivision (o) and Civil Code section 2948.5 (per
diem interest). The California MBA has been working for quite some time on
the issue, and is "pleased to see the Department making progress in
helping our members comply with the applicable laws.
Clayton Holdings LLC, announced that it has
developed an enhanced internal audit services program. The program is
designed to help bank and lender clients develop, manage and enhance their
internal risks and controls programs and comply with new government-sponsored
enterprise (GSE) and Consumer Financial Protection Bureau (CFPB) requirements.
There is only one week remaining before the implementation
of FHA's Loan Review System (LRS). When LRS goes live on May 15th,
lenders will use the system for all new post-endorsement loan reviews and other
quality control functions for Single Family Title II mortgages. During this
final week before implementation, lenders are encouraged to check FHAC access
and assign user roles. All users access LRS through FHAC, and must maintain a
valid FHAC user ID. Each lender's FHAC Application Coordinator will need to
register new users and reactivate expired user IDs for any individual that
requires LRS access. For information on registering users in FHAC, refer to the FHA
Connection Guide. Also, lenders should review documentation and prepare for
transition. A new LRS Fact Sheet has been posted.
Lenders Compliance Group, the nationwide risk management firm,
announced a unique, cost-effective review of a financial institution's
Compliance Management System. The product is its due diligence service, the CMS
Tune-up! "CMS Tune-up! is a hands-on, cost-effective, due diligence
review of a financial institution's Compliance Management System. The unique
review is conducted by the firm's Directors and Subject Matter Experts and
includes a full review, subject matter experts, executive summary,
recommendations, and a risk rating. An effective Compliance Management System
is comprised of three interdependent elements: Board and/or Management
Oversight, Compliance Program, and Compliance Audit. Until this introduction of
CMS Tune-up!, there really has been no cost-effective way to obtain an overview
of how well a financial institution is complying with the regulatory mandates
set forth by the Consumer Financial Protection Bureau and the prudential
regulators for implementing a Compliance Management System." (For more
information email LCG.)
Today, May 11, from 2:00 - 3:00 pm EDT, Buckley Sandler
will host the complimentary second of its five-part series of webcasts focused on state regulatory and enforcement
issues and trends. This session will focus on current trends in the
mortgage licensing and regulation space, such as the re-emerging wholesale mortgage
broker channel, understanding the third-party loan fulfillment space, recent
shifts in regulatory treatment of master servicers, and increased activity in
the reverse mortgage lenders/servicer space. (Registration required. No
outside law firms, government agency personnel, consulting firms, or media.)
Another webinar, this one not complimentary, covers, "Financial
Institution Sales Practices and Incentive Compensation Arrangements in the Wake
of Wells Fargo: What Can We Expect from the CFPB?" The presenter is
Chrys D. Lemon and takes place on Friday, May 26, for an hour. "'Tools and
Techniques to Develop Sales Practices and Incentive Compensation that Minimize
Regulatory Risk and Avoid UDAAP Violations.' Chrys Lemon will provide you with
tools and techniques to develop sales practices and incentive compensation
arrangements that are designed to minimize regulatory risk. Chrys will talk
about how an incentive compensation program can create UDAAP problems, if it is
not properly structured."
Miami in late September is a fine place to be, and the MBA
is offering RMQA17, divided into four session tracks to "provide
you with timely, valuable and critical industry information. It is the one
place to get best practices and the latest updates impacting risk, quality
control, underwriting and fraud prevention." The tracks are "Fraud
Prevention," "Loan Quality Assurance," "Risk Management and
Valuation," and "Underwriting and Compliance."
Capital markets
Rates: up some, down some. Wednesday was a smidge lower
and "wider" (compared to Treasuries) after a scattering of news and
then a disappointing 10-year T-note auction. (The NY Fed released its tentative
MBS reinvestments covering the May 11 to June 12 period in addition to the
latest FedTrade schedule covering the May 11 to 24 period. MBS reinvestments
over the coming four-week period are estimated at $24 billion - a little
over $1 billion a day. Fewer loans are paying off early.) For Wednesday's
session, the 10-year note closed yielding 2.41%.
This morning we've had jobless claims (-2k to 236k -
strong) and, as a measure of inflation, the Producer Price Index for April
(+.5%, core +.4% - higher than expected). We commence Thursday with rates
not changing much: the 10-year yielding 2.41% and agency MBS prices down a few
ticks.
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