Jan. 18: MI, Ops, wholesale jobs; more TRID loan rejection reasons; BankUnited withdraws from retail lending because…

Some areas of the nation are seeing this more than others, but according to the latest CUNA Mutual Group Report, in the first nine months of 2015 first mortgage loans originated by credit unions were 39 percent higher than during the same timeframe in 2014.  Auto loan balances also reached $100 billion for the first time, with loans for new vehicles rising 16.9 percent in the past year, indicating that last year was a very strong year for auto and home loans among credit unions. Total credit union membership was also up 4.3 percent, to 105.3 million members. Through October credit unions added 3.9 million new members, faster than 2.6 million that were added through October 2014.

In job news a publicly-traded mortgage industry leader and full-service seller/servicer is seeking a talented and proven sales leader to serve as retail branch manager for its Las Vegas area office. The company is committed to developing this area for both individual and team success while maintaining overall operational excellence and financial strength. Qualified candidates should send their resume to me at rchrisman@robchrisman.com. Onsite interviews will be conducted on January 19-21.

MGIC has an opening for an experienced industry professional to develop and maintain strategic relationships with mortgage industry partners, including key origination, servicing, and other mortgage technology vendors. The ideal candidate will have a fundamental understanding of the interrelationships of LOS and servicing systems within the industry, working to create mutually beneficial opportunities between providers and MGIC. Industry professionals with a strong technical acumen, but also possessing strong sales and interpersonal skills, would be a perfect fit for this role with a well-established company in the mortgage industry.” For instructions to apply or to send a resume, contact MGIC’s Talent Acquisition Partner Nancy Vang Lee.

In the wholesale arena, how time flies! “Orion Lending lifted off in 2014 and has experienced remarkable growth. The company began as an idea pioneered by mortgage executives Jeremy Stewart and Curtis Edwards and now employs 86 incredible team members, each of whom are responsible and accountable for the company’s successful voyage. Among a number of pure intrinsic disciplines is Orion Lending’s focus on organic team growth and culture. Orion Lending understands the value of the broker and borrower experience which impacts so many others exponentially throughout the lending process. For those interested in exploring positive and potential possibilities, please send confidential inquiries to info@orionlending.com. Discover, innovate, outperform.”

(While we’re on Orion Lending, management just announced the hiring of Richard Plummer, SVP of Operations. “Richard brings an arsenal of talent, aptitude and organizational proficiencies to the Orion Lending team and we are thrilled he is a part of this outstanding organization” a statement made at the 2016 ORION STAR summit by Orion Lending President Jeremy Stewart. More information on Orion Lending can be found on its website.)

In Ops news, Carrington Mortgage is now hiring in Westfield, Indiana. “Discover the opportunities with the Mortgage Lending Division Open House of Carrington Mortgage’s Westfield Indiana Operations/ Regional Sales Center on Thursday February 11^th from 12PM to 7PM.  Carrington Mortgage a dynamic and entrepreneurial Mortgage Company is expanding its footprint with its new state of the art Regional Operations/Sales Center in Westfield Indiana and we are looking for Top Talent!  If you are a Licensed Mortgage Loan Officer, DE Underwriter, Funder, Document Specialist, or Loan Processor we would love to meet you!  Enjoy some refreshments and meet our leadership team. At Carrington Mortgage Services you’ll discover an open door to opportunity. Exceptional financial strength, products and geographic scope – combined with comprehensive training programs, diversity initiatives, competitive benefits and a commitment to work/life balance we can open up a world of possibilities. We have cultivated a fun team work environment where there is opportunity to learn and develop within both the company and your career. With hard work, you’ll reap benefits both professionally and personally. TO RSVP please contact Carlos Fernandez at 949-517-7204.”

It isn’t the first, and won’t be the last… BankUnited has stopped offering retail residential mortgage loans to consumers and laid off some of its workers. South Florida’s largest locally based bank said new residential mortgages weren’t generating enough business. The channel “couldn’t generate enough volume because of compliance costs and slowing Latin American investment in Miami.” (Anyone displaced, or nervous about it, can post their resume for free at www.LenderNews.com.)

Last week this commentary contained useful information from Stearns Lending regarding TRID deficiencies. It is important to note that this information came from Stearns’ correspondent channel, and what it was seeing from its lender clients, rather than Stearns’ other channels. (“The list includes the closing disclosure was not disclosed to the borrower within 3 businesses days of the closing date, loan estimate not disclosed to the borrower within 3 days of the application date, borrowers not receiving the loan estimate within 4 days of the closing date, loan estimate reflects a pre-payment penalty, origination charge increased from loan estimate to final closing disclosure, lender needing to provide escrow waiver, lender needing to provide a fully executed copy of the final closing disclosure, and the lender needing to provide a valid change of circumstance for all subsequent loan estimates.”)

And Marx Sterbcow, Managing Attorney at the Sterbcow Law Group LLC, writes, “After speaking to clients Rich Horn and I came up with our top 10 most common reasons the secondary market investors are rejecting & refusing to purchase loans from banks/lenders right now. One of the main reasons for some of these seemingly innocuous loan rejections is because the secondary market is now worried about their future if they decide to sell the loan. Some in the secondary market appear to be concerned whether the next investor who buys the loan from them will refuse to purchase the loan or purchase the loan at a discounted price if they need to sell but can’t due to the unknown legal liability risks. The downstream investor risk is trickling back upstream. Here they are:

1. Loan Estimate & Closing Disclosure being dated the same date.  (Bank/Lender issue) 2. CD-the title fees not having “Title – “in the description.  (i.e. “Title – Settlement Agent Fee”)There have even been some issues with not having a space in between “Title” and the hyphen.  The regulatory text has a space in the “Title -“, so keep that in mind. 3. CD-All contact info not included on Page 5 (i.e. real estate agent/broker’s license number is missing).  Keep in mind that if the contact person (the individual, not the entity) is not required to have a License ID, you can leave that License ID cell blank.  Also, remember, that you should be using the License ID cell for your licenses, not the NMLS ID cell.  NMLS ID numbers are typically only obtained by lenders and brokers, so you typically should not have a reason to put your license number in the NMLS ID cells.   4. CD on refinances does not allow a place to show subordinate financing.  This is correct, for the alternative CD.  The CFPB’s Office of Regulations stated in a webinar that if the alternative CD is used, there is no place to show subordinate financing on the alternative CD, and there is no requirement to do so.  Essentially, each transaction will have its own cash to close, and the settlement agent has to figure out the “master” cash to close.  5. CD-title company “file number” not included on page 1.  The File # is the settlement agent’s file #, “for identification purposes.”  There is not a lot of guidance about this number.  The commentary only states that it “may contain any alpha-numeric characters and need not be limited to numbers.”  So, basically, use any number that you assign to the file in your own system to identify it, which can contain letters and numbers.   6. Lender/Bank sent the Loan file to the Investor with a copy of an executed 3rd party authorization to release NPPI form giving Realtor access to borrower’s CD. 7. Provide the seller’s CD.  The rule requires the settlement agent to provide a CD to the seller.  Many lenders have been reporting to me that the settlement agents they are dealing with are not providing the seller’s CD, or are providing the HUD-1 or ALTA Settlement Statement instead of it.  The HUD-1 or ASS cannot replace the CD to the seller.   8. Simultaneous Issuance.  Lenders are reporting that their settlement agents still do not understand the simultaneous issuance rules, and they are getting estimates that do not comply.   9. Optional designation.  The “(optional)” designation is not being used correctly.  It’s used for separate insurance, warranty, guarantee, or event-coverage products disclosed under the “Other” category, such as optional owner’s title insurance, credit life insurance, debt suspension coverage, debt cancellation coverage, home warranties, and similar products.   10. CD & LE: The Fee names.  The fee names essentially should be the same between the LE and CD.  If you did not provide the original estimates for the fees on the LE, then when you are selected as the title company/settlement agent, you can change the fee names, based on the changed circumstance.  But from that time, or from the original LE if you provided the fee estimates for the LE, the fee names should be the same.”

And “Know Before You Owe” changes continue to trickle in from lenders and investors. Freedom Mortgage spread the word that pre-TRID Loans (loans originated before October 3, 2015 and disclosed in compliance with the GFE RESPA/TILA rules) must comply with the following: All Pre-TRID loans must be closed no later than January 31, 2016. An exception to the January 31st requirement is available for New Construction Loans originated before October 3, 2015. All Wholesale Correspondent Pre-TRID Loans must be closed by Correspondent no later than January 31, 2016 and be purchased by Freedom no later than February 15, 2016 Refinance Loans (Broker or Wholesale Correspondent) must close by January 31, 2016 and will be allowed to fund, post rescission if applicable, in February. New Pre-TRID registrations will not be accepted. Please note, beginning February 1, 2016, our system will no longer allow any Pre-TRID loans to be registered.

To sum that up, Freedom Mortgage has provided its timeline and dates needed to close Non-TRID Refinance Loans for the month of January: FHA Refi must close by close by 1/22, Conventional and VA Refinances: Last day to close 1/25/16, all Non-TRID loans must close by 1/29.

CMG Financial has posted its most recent bulletin. Topics include Rate Sheet-Changes to Loan Level Price Adjustments, Mississippi Disaster Declaration, and Compliance- TRID Q&A.

Turning to the markets, there are none today! Yes, the markets are closed today due to it being a federal holiday, but some lenders are open. Looking back to Friday, and most of last week, the focus continued to be on China’s slowing economy, and its impact on the world, as well as the sagging price of oil. The price we’re paying at the pump continues to reflect refining & transportation costs, taxes, etc., so the impact is somewhat muted. Certainly there is no inflation, and the Fed has made it clear that it would like to see some, and Retail Sales from Friday were the weakest since 2009 – it doesn’t seem to be an economy that would warrant another rate increase by the Fed.

This week for economic news we have zip today due to the holiday. Tomorrow we’ll have the January NAHB Housing Market Index. Wednesday is the MBA Mortgage Index for the week ending 1/16 (will we be seeing the refi boom continue?), December CPI and Core CPI, and the December Housing Starts and Building Permits duo. Thursday holds Initial Jobless Claims for the week ending 1/16 and January’s Philadelphia Fed figures. We wrap up Friday with December Existing Home Sales and December Leading Indicators.

Anyone figuring on rate sheets, well, we closed the 10-yr Friday at 2.03%, and with U.S. markets closed expect secondary marketing folks to throw in some profit margin.

(Part 1 of 4 of “If you are from the northern states and planning on visiting or moving to the South, there are a few things you should know that will help you adapt to the difference in lifestyles.)

The North has sun-dried toe-mah-toes, The South has ‘mater samiches.

The North has coffee houses, The South has Waffle Houses.

The North has dating services, The South has family reunions.

The North has switchblade knives, The South has Lee Press-on Nails.

The North has double last names, The South has double first names.

The North had Ted Kennedy, The South had Jesse Helms.

The North has an ambulance, The South has an amalance.

The North has Indy car races, The South has stock car races.

The North has Cream of Wheat, The South has grits.

The North has green salads, The South has collard greens.

The North has lobsters, The South has crawdads.

The North has the rust belt, The South has the Bible Belt.

(Part 2 tomorrow.)

Rob

(Copyright 2016 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)