Hats
off to Texas, which threatens to secede from the Union from
time to time. Texas had eight of the 15 most rapidly
growing large cities between Census Day (April 1, 2010)
and July 1, 2011, per the Census Bureau. It continues the
growth seen between 2000 and 2010. But among cities with
populations of 100,000 or more in 2010, New Orleans, still
rebounding from the effects of Hurricane Katrina in 2005,
ranked first, growing by 4.9 percent to 360,740. This puts the
city’s population at 79.2 percent of the pre-Katrina July 1,
2005, estimate of 455,188. Looking at the highest numerical
growth, New York topped the list, adding nearly 70,000 people
since the 2010 Census. Again, Texas was well-represented, with
six cities among the top 15, including Houston, San Antonio
and Austin, which ranked second, third and fourth,
respectively. California checked in with three cities,
including Los Angeles, San Diego and San Jose; Phoenix;
Denver; Charlotte, N.C.; New Orleans; and Washington also made
the list.
In
terms of total population, New York continued to be the
nation’s most populous city by a large margin, with 8.2
million residents in 2011, followed by Los Angeles and
Chicago. The 15 most populous cities remained unchanged
since the 2010 Census. However, Austin, Texas, moved up from
14th to 13th in total population, supplanting San Francisco.
Per the Census Bureau, more than three in every five people
living in the United States (62 percent or 194.4 million
people) lived in incorporated places, commonly thought of as
cities. More than a third of the nation’s population (37
percent or 116.2 million people) lived in cities with
populations of more than 50,000.
Aside
from my dog, no one has ever considered me a VIP. So it is
interesting to see how they're treated in the lending world. "How
Countrywide
Used its VIP Loan Program To Influence Washington
Policymakers" has had a lot of publicity, and I've
received many requests for the actual document. Here you go: http://oversight.house.gov/wp-content/uploads/2012/07/Countrywide-112th-Report-7.3.12-1207-PM.pdf
As a quick example, pages 105 &106 focus on Clinton Jones
- the person reportedly responsible for keeping NAIHP &
NAMB out of the Appraisal and Mortgage Disclosure Hearings.
Here
are some somewhat recent M&A/investor/lender updates,
providing a flavor for the environment. They just don’t stop.
As always, it is best to read the actual bulletin, but these
will give you a sense of direction for the mortgage market.
Lending
Processing
Services announced that it has acquired LendingSpace,
a provider of mortgage loan origination software solutions.
The LendingSpace technology platform is expected to boost LPS’
origination technology solutions, including Empower and
PCLender, programs used by mortgage lenders, credit unions,
and community banks. The LendingSpace product suite features a
lending platform that includes full web-enabled capabilities
to enhance collaboration between retail originators and their
lending partners.
Following recent adjustments to its simultaneous transaction
fixed rate pricing, Wells Fargo Wholesale has lowered
several Home Equity rates for simultaneous and standalone
transactions. Home Equity pricing has been consolidated into
a 3 x 2 grid, replacing the old grid of four tiers of credit
scores and three tiers of CLTVs. With regards to Home Equity
credit, Wells’ policy has changed such that non-continuous
income sources (note, trust, 401k, retirement, alimony, or
public assistance income, for example) should only be factored
in if they are expected to continue for at least for five
years and have been verified. Section 900.06 of the WFHE
Broker Guide have been revised to include the full updated
verification requirements for retirement, Social Security,
disability, note, trust, IRA, 401k, Keogh, alimony, child
support, foreign, benefits, and public assistance income.
Wholesale clients are reminded that failure to fill out the
IRS Form 4506-T leads accurately and completely leads to
delays in the loan application process and that the IRS will
reject any alterations, additions, or corrections made to the
form after submission.
The updated non-branded Consumer Handbook on Adjustable Rate
Mortgages/ARM disclosure is now available in the Client Tools
area of the Broker’s First website as well as the Business
Forms and Documents section of the Broker Guide.
Citibank Correspondent has published its new turn
times, and clients can expect a decision to be made about
their loan between four and ten business days after the
complete package has been received. Suspense condition review
has been listed at two to four days. In order to keep things
moving along, clients should ensure that they are familiar
with the relevant loan manufacturing processing controls, as
failure to comply will result in loans being suspended. When
verifying a borrower’s business, third party documentation and
a phone listing are both needed. Credit enquiries from the
past 120 days and large deposits both require Letters of
Explanation. Other faults that will result in a loan being
suspended are improper income categorization, lack of a Paid
and Closure Letter where necessary, an incomplete Name
Affidavit, and address discrepancies.
US Bank rolled out numerous changes to its products and
processes, including 90% LTV purchases up to $750,000 with no
mortgage insurance; combo refinances, purchases, and cash-out
refinances of up to $1.5 million; cash-out transactions up to
$500,000; short sale and foreclosure purchases up to 90% LTV;
and vacation home loan amounts up to $1 million.
The revised application submission checklist now requires an
updated version of a company-specific submission form, Title
Company Fee Sheet, Fannie 1003 application, Borrower’s
Authorization Form, completed Mortgage Loan Origination
Agreement, and Anti-Steering Disclosure. The Title Company
Fee Sheet and Anti-Steering Disclosure aren’t necessary for
HELOCs.
Flagstar recently announced that its Underwriting
Support Desk would be handling all communications concerning
conventional underwriting; however, underwriters are once
again available to offer assistance on existing files.
Clients are asked to use either email or voicemail to contact
the underwriters (not both) with questions specific to loans
that have been submitted and reviewed or to declined loans and
should provide the loan number and borrower name upon making
an enquiry.
At present, Flagstar clients can expect a 72-hour turn time
for condo reviews and are reminded that rush requests will not
be accepted. The best way to ensure a quick review turn time
is to search the wholesale website for documentation
requirements and submission protocol, review the condo
questionnaire before submission, and send in all the necessary
documentation at once. Flagstar requests that the condo
review staff not be contacted unless three full business days
have passed since the submission.
Flagstar has clarified its flood insurance policy for
refinance transactions. In situations where an existing
policy is being used, the policy should have at least 30 days
remaining before it expires or needs to be renewed from the
date of closing and funding or purchase. Clients are reminded
that all borrowers with property in a flood zone are required
to be furnished with a Notice to Borrower of Property in a
Special Flood Area (Flagstar Document 3214) at least five days
before closing. The recently updated version of the notice
should be used for loans with application dates of June 18,
2012 and later; all Notices should be signed by the borrower
and include the necessary flood community information.
Properties in the SFHA (per FEMA) with multiple residential
buildings are required to have separate policies for each
building.
Though sending prefunding documents to the Flagstar Funding
email box (Funding@flagstar.com)
is a viable option, Flagstar has issued a reminder that
uploading documents to the Paperless File Manager or sending
them via fax (248-312-2423) can often be faster.
Jumbo fixed rate products that are locked with Franklin
American on or after July 1st will be subject to revised
guidelines, which dictate that non-purchase money subordinate
liens be seasoned 12 months to be considered a rate/term
refinance and that additional documentation is necessary in
cases where the borrower has been receiving a distribution of
assets from a retirement asset account. The maximum
percentage of vested value of retirement accounts has been
raised from 50% to 60%, and the maximum amount of collections
that must be paid off has been raised from $250 to $1,000. In
addition, a written explanation from the borrower with regards
to credit inquiries is required if these inquiries have been
in the past 120 days, increased from the previous 90-day
timeline..
Mountain West Financial has been approved to add its
newest division, an in-house AMC called Mortgage Works,
LLC that went live on July 1st. As a result, the
Appraisal Fee and Mortgage Works Appraisal Administration Fee
are required to be disclosed on both the GFE and Final HUD-1,
the former on which they cannot be combined. And MWF has
changed the price adjuster for Government High Balance and VA
loans; as of June 20th, the adjuster for FICO scores of
640-679 is 0.500.
Stearns Lending has rolled out an updated VA loan
program that allows for 100% purchases with a FICO score of
620 and 90% purchases with a FICO score of 640 for primary
residences. Gift Funds and 4% seller concessions are allowed
as well.
In response to record levels of submissions, SunWest
Mortgage has offered to extend all locks that expired on
or before July 15, 2012 by 10 days for no charge. It has also
published extended review times in underwriting that may be
viewed at http://trk.cpro30.com/Tracking/t.c?SsqZ-VE1s-jpGOo5.
Freedom Mortgage reminds clients that all locks or
application received on or after June 25th for FHA Streamline
Refinances will require a minimum FICO score of 650. Locks or
applications for DU Refi Plus products will be subject to a
maximum LTV of 115% and a PIW requirement in the DU Findings.
Investors Bancorp, Inc. has agreed to a merger in which it
will acquire Marathon Banking Corporation, parent
corporation of Marathon National Bank of New York, a deal
valued at $135 million. Investor Bancorp will acquire 13
branches in the New York metropolitan area, $738 million in
deposits, and $902 million in assets, increasing its presence
in the area to 22 branches and its deposits to $1.3 billion.
The merge, orchestrated by KBW, is expected to close towards
the end of the year.
June 15th saw FEMA announce that New Hampshire
residents who were affected by the storms and flooding in
Cheshire at the end of May are eligible for disaster aid. As
such, M&T Bank requires that properties whose
appraisals were completed before May 29, 2012 be re-inspected
as per FHLMC Form 442/Fannie Form 1004D by the original
appraiser. The appraisal should include an exterior photo as
proof of damage and a description of any negative conditions
that may impact marketability. In cases where there is no
damage, the appraiser should certify that the property is in
the same condition as before May 29th, and the re-inspection
should be submitted to an M&T underwriter for review
before closing.
Clients are reminded that, when registering non-M&T FHA
Streamline transactions to M&T, the original
appraised value on the existing loan should be entered in
MEME, which allows the system to correctly calculate the
underwriting LTV. The “current” LTV must be calculated
manually outside of MEME.
IT'S
SO HOT in Indiana (Part 1 of 3)
.....the birds have to use potholders to pull the worms out
of the ground.
.....the trees are whistling for the dogs.
.....the best parking place is determined by shade instead of
distance
.....hot water comes from both taps.
.....you can make sun tea instantly.
.....you learn that a seat belt buckle makes a pretty good
branding iron.
If
you're interested, visit my twice-a-month blog at the STRATMOR
Group web site located at www.stratmorgroup.com.
The current blog discusses the issue of the Freddie Mac &
Bank of America buybacks, and its potential impact on the
industry. If you have both the time and inclination, make a
comment on what I have written, or on other comments so that
folks can learn what's going on out there from the other
readers.
