Happy St. Patrick’s Day! Irish or not, many celebrated last Saturday instead of tonight, although in honor of today Hal M. writes, “The Irish invented bagpipes…but Scotland didn’t get the joke!”
Mason-McDuffie Mortgage Corp is looking to add a Technologist to its Prime Services Group in San Ramon, CA. The Prime Services Group is the concierge support team dedicated to the success of their Loan Officers. They are responsible for innovation in the areas of Technology, Marketing, Training, Social Media, Multimedia Marketing, and On-Boarding for the company. With its roots in Silicon Valley, the group embodies the company’s “Be Different” philosophy. The successful candidate will be passionate about technology, highly creative, and be customer service focused. Mason-McDuffie Mortgage was voted top “50 Best Mortgage Companies to Work For”, “Top 100 U.S. Mortgage Companies”, and Top Work Places” by the Bay Area Newsgroup. If you are interested please contact Jason C. Frazier at firstname.lastname@example.org.
Also on the Ops side, “growing nationwide and hiring, Paramount Residential Mortgage Group, Inc. (PRMG) has been a leading privately held mortgage banker ‘built by originators for originators.’ With numerous accolades under its belt including being ranked no. 2 of the top 50 companies to work for in America PRMG is actively hiring experienced Government and Conventional Underwriters to help support the continued growth and demands of their ever-expanding national Retail, Wholesale and Correspondent divisions for the Western United States / Pacific Northwest / Mountain / Midwest / Northeast and Southeast regions. PRMG has over 800 employees nationally and is licensed in 47 states with nearly 50 branches located throughout the country! Contact HR@prmg.net for a complete job description or confidential inquiries.”
I’ve mentioned AmeriHome Mortgage numerous times over the past year as this Tier One correspondent went from opening its doors early last year to locking over $1 billion in February (and growing fast). “According to Chris Maturo, West Sales, there is no secret formula. Their approach is to earn loyal clients and gain repeat business by effectively executing on a simple yet proven business model; hire correspondent professionals throughout the company, price consistently and competitively, provide personalized service, buy loans quickly and especially in this crowded market – offer more than your competitors. To that end, they continue to develop innovative products (all part of their ‘one stop shop’ investor model) with no MI Fixed Seconds and 90% Jumbo Fixed (non-brokered) coming soon. Coverage is national with great momentum building in the East from Sales Executives Bridget Williams, Mary Rigby, Paul Rofino, Steve Lilley, and Terese Joyce. And Lori Zaloumis is joining the team later this month as an Account Executive – West.”
Continuing on with new products, “If you have to buy transcripts anyway, why not buy them at the beginning, and get a complete income analysis? For just a little more than what transcripts cost, LoanCraft adds a complete income report, which is often enough to complete the file. In other cases, more is needed, but the Self-Employed Express report now provides guidance for completing the file with ‘Research Prompts,’ which tell processors exactly what steps to take and documents to request. And the report provides a scenario chart that gives a good indicator of whether the income will qualify, based on the remaining open items. Processors can use LoanCraft’s Income Portal to add documents and generate a final report.” Contact Ron George or find information about the site at LoanCraft.
Speaking of new products, Litigation Guard, LLC and Bankers Insurance Service (BIS) announced an on-line product for lenders that will “revitalize lending in the non-QM market. Litigation Guard and BIS are providing an industry leading technology and insurance solution that is aimed at reducing lender risk by providing a valuable defense against ‘Ability-To-Repay’ claims, while also educating borrowers on the mortgage process and terms of their loans.
Litigation Guard provides third-party verification that borrowers have the ability to repay their loans. Litigation Guard uses a proprietary algorithm, along with online assessments, educational videos and other web-based tools that mortgage originators use during the underwriting approval process. This verification system, which takes only minutes for the borrower to complete, gives the mortgage originator confidence that the borrower has the ability to repay the loan and is educated on the mortgage lending process. Importantly, once the loan receives an approval from Litigation Guard and the loan closes, unique E&O insurance applies. The insurance program will be administered by BIS, cover holder at Lloyd’s, and underwritten by certain underwriters at Lloyd’s.”
New Penn is out there originating and buying loans, and Lewis Ranieri’s Shellpoint Partners, which owns New Penn, rolled out its non-QM credit repair product in October and management hopes to do their first securitization of these loans this year. They believe the agencies will demand 15% credit enhancement for AAA tranches with high quality non-QM loans, and credit enhancement of 34%-40% for the tougher stuff: 620 FICO, 50 DTI, 80 LTV loans. So the product is for borrowers who had an “event” that damaged FICOs “and now are back on their feet again.” Underwriting looks for borrowers who were previously prime, and haven’t been delinquent on debt for 12 months; qualifies based on “residual” income (amount left over after all expenses, a key to VA program). It is a product for 620-700 FICOs, loans originated so far at upper end of range, somewhat better credit than anticipated. Of course one challenge for getting non-QM volumes is that “the loan officers are very inclined to do the easy stuff,” have no “financial incentive to do anything else.”
Let’s play some catch up on some random new products and guideline changes to obtain a sense of the trends out there…
Mountain West Financial posted a new bulletin including Multiple UW Guideline Additions and Changes. To view this bulletin, click here.
NYCB Mortgage is recommending ordering IRS Transcripts earlier in the loan process via Gemstone using the most accurate and legible data possible to avoid additional rejections or delays. If your borrower filed tax return electronically, it takes about 3 weeks before a transcript becomes available. If your borrower mailed the tax return, it takes about 6 weeks. If the borrower didn’t pay all the tax owed, transcript may not be available until mid-May, or a week after the paid in the full amount was received. Refer to Transcript Availability for more information.
Peoples Bank began requiring 2014 W2s for any loan closing after January 31. Also as a reminder, when calculating income in the first 4 months of the year: W2 Wage Earner – with no overtime, bonus, or commissions: Calculate the income from the most recent paystub. Paystub must have at least 30 days of earnings. Obtain a copy of the last two years’ filed tax returns with W2s. W2 Wage Earner – with overtime, bonus, and/or commissions: Calculate the income using WVOE, W2 and tax return for the last two years in which taxes were filed. Obtain the most current paystubs, full VOE to verify income with over time and bonus, and the New Year W2 for the purpose of documenting that the income has not declined. Self-employed: Income will be calculated using the tax returns for the last two years in which taxes were filed. Obtain the recent year Profit and Loss Statement to document that the income has not declined. The Profit and Loss Statement does not have to be audited.
Sun West’s Guidelines have been Update on VA IRRRLs and FHA Streamline Refinances. Effective for loans submitted on or after January 1, 2015, Sun West will accept a mortgage only credit report in lieu of a full credit report on VA IRRRLs and FHA Streamline loans. The mortgage only credit report must be a tri-merged credit report reporting all 3 FICO scores, if available. Qualifying Credit Score is determined as follows: If the credit report provides 3 credit scores, the middle credit score will be used for each borrower, If the credit report provides 2 credit scores, the lowest credit score must be used for each borrower, If the credit report provides only 1 credit score that score must be at least 500 for each borrower.
Apex Home Loans, Inc. announced it has enhanced its risk management policies and procedures governing its mortgage lending business by requiring all settlement agents to pass independent risk evaluation, rating, monitoring and reporting in order to close their residential mortgage loans. The process will be managed for Apex by Secure Settlements Inc., the first vendor management firm to specialize in closing table risk. The company chose the SSI Closing Guard™ tool to evaluate all settlement agents who wish to close loans with Apex.
Bay Equity LLC has employed New Consumer Protection Tool by partnering with Secure Settlements in order to Manage Vendor Risk. Bay Equity chose SSI’s Quick Check, Closing Guard and Vendor Check tools to ensure all its third-party service providers pass independent risk evaluation, rating, monitoring and reporting in order to gain access to a borrower’s loan documents and mortgage proceeds.
PCG, Bay Equity Private Client Group, offers a W-2 Only Program which includes all Fannie Mae LTV’s and occupancies.
B2R Finance has made some recent program changes including: Interest Only option available up to 60% LTV, Underwriting to appraised values after 90 days seasoning rather than cost + rehab, Foreign Nationals increased to 75% LTV, and Non-Recourse with NO cash management up to 60% LTV.
Broadview Mortgage posted information regarding recent legislation enabling CalHFA to permit the subordination of existing CalHFA junior loans if homeowners meet certain eligibility requirements. The purpose of this legislation is to help existing homeowners keep their homes by allowing them to take advantage of refinancing their existing first mortgage and not be forced to pay off their existing CalHFA junior loan(s). Homeowners must have demonstrated hardship and be refinancing their first mortgage to avoid foreclosure. To be eligible, all of the following minimum requirements must be met: visit CalHFA website subordination requirements & instructions.
Broadview Mortgage will no longer require the insurance declaration, binder or quote with the loan submission. If the insurance is included, the underwriting department will not review the document. Underwriting will include a reasonable premium when rending a decision on the loan approval. For properties in projects where the master association provides all in coverage the housing expenses may be over-stated at the time of underwriting but will preclude loans being demoted back to underwriting from the closing department to evaluate increased housing expense due to increased insurance expenses.
New Home Possible Advantage 97 is available with U.S. Bank. For program details, download bulletin 15-004.
February 20th was the last day to submit case number cancellation requests to Flagstar Account Executive on FHA loans affected by MIP change. Information is outlined in Memo #15003.
NewLeaf Wholesale has enhanced the VA High Balance DTI requirements to qualify more VA borrowers who have loan limits that exceed the conforming balances. Also, escrow requirements for the NewLeaf High Ratio and NewLeaf Access products have been updated.
Peoples Bank has updated its FHA overlays. For all FHA Streamlines with a minimum FICO score of 680 or greater the requirement for income and credit qualifying is eliminated, as well as a maximum DTI. Underwriting reserves the right to require Income and Credit qualifying at its sole discretion. For all FHA Streamlines with a FICO score less than 680 the following overlays still apply: borrower must Income and Credit Qualify, maximum DTI 55%. The maximum DTI is 50% on FHA purchases regardless of AUS Findings. These updates were applicable on applications dated on or after March 1.
Prospect Mortgage, LLC announced it will implement the Secure Settlements (SSI) Closing Guard tool, which enhances risk management policies and procedures. Prospect has chosen to implement Closing Guard™ through SSI to enhance quality control processes, conduct comprehensive risk evaluations, detect and prevent fraud and report and continually monitor all closing agents handling its residential mortgage loans in all states where the company conducts its loan mortgage business.
Wells Fargo Funding’s 75-day Lock option is now available online. As a reminder, the 75-day Lock option is available on conventional Conforming, FHA, VA, and Guaranteed Rural Housing (GRH) Loans and has associated price adjusters. (Price adjusters are subject to change without notice. Please reference the most recent Wells Fargo Funding Rate Sheet for current price adjusters.) In addition, as of March 2nd, there were changes to extended lock options.
Taking a brief look at the markets, Treasury prices rose on Monday on weaker U.S. economic data suggesting a possible slowdown in the economy. The U.S. Empire Manufacturing Survey declined to a level of 6.9 from 7.8 the month prior. The yield on the “benchmark” 10-year note closed out the day at 2.10%. And U.S. Treasury bonds, and agency MBS prices, are opening higher this morning as market participants ‘patiently’ await the Fed’s decision on raising interest rates. The 10-year note is currently at 2.09% and agency MBS prices are better a shade.
Short video in honor of St. Patrick’s Day…A group of friends walking through the Irish countryside, suited up in their finest clothes, find themselves sitting on a stone wall facing a graveyard by a chapel. Singing the classic Irish folk song “A Parting Glass” they’ve come, in the rain, to say goodbye to a friend. It’s not long – do yourself a favor and watch the whole thing.
(Copyright 2015 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.)