Yesterday’s commentary noted that HUD Secretary Ben Carson “turned some heads by suggesting lower potential penalties for lenders, especially those financing low-income borrowers.” The news prompted R.C. Whalen with Whalen Global Advisors LLC to respond, “The folks at GNMA had to remind Dr. Carson that he does not control the DOJ. Afraid relief from False Claims will require a lot more time and effort.” Good point… Here’s another story about control: Starting today, texting while walking across a street in Honolulu is illegal due to a new law that allows police to fine pedestrians for checking their phone while crossing an intersection in the Hawaiian city and surrounding county. Is chewing gum next up?
Business opportunities, jobs, products, & promotions
Mortgage 1, Inc., a billion-dollar retail lender licensed in multiple states, is looking to add branches in Ohio, Florida and Texas. All inquiries should be directed to Rick Holcomb, President. Mortgage 1 was voted one of the top Midwest Mortgage Employers.
A top-20 correspondent investor is looking for an experienced leader to take the helm as Executive Vice President of its B2B business. The Candidate will oversee the growth of Correspondent lending. Candidate should have experience with all aspects of loan origination. If you are interested, please send your resume to me for confidential forwarding.
Floify, the enterprise-grade mortgage automation solution for top-producing lenders, has just elevated the bar when it comes to advancing mortgage workflows for big businesses. Floify’s white-labelable solution – which already features an embeddable and customizable 1003, a secure portal for document management, loan status tracking, automatic updates via email and SMS, and mobile apps for iOS and Android – has even more incredible advancements in the works. In addition to their integrations with major CRM and LOS providers, Floify’s upcoming improvements are sure to enhance the way loan origination teams process mortgages and manage the delicate lender-borrower relationship. Using Floify, countless enterprises have reported a reduction in their loan officers’ workload by up to 5 hours/loan and a significant improvement to the entire mortgage experience for their borrowers. To see how Floify can help you streamline your enterprise’s mortgage workflow and get the inside scoop on their upcoming features, request a live demo of Floify.
PrimeLending elevated Uly Kim to Regional Manager for Southern California and Hawaii Targeting New Branch Growth on West Coast. With a proven track record of developing top performers and recruiting established producers, Kim is well-positioned to lead the company’s aggressive growth initiative in the region. PrimeLending plans to continue growing market share nationally by strategically adding branches in areas with increasing demand for purchase loans. If you’re an elite producer in Southern California, Hawaii, or any thriving market in the country, PrimeLending can help you discover your best. Contact Bill Harp (469-737-5767).
As a full-service mortgage banker, Assurance Financial is seeking motivated, experienced Branch Managers and MLOs who want to take their career to the next level. As seen in Scotsman Guide, leaders who join our team enjoy our reputation of closing loans on time, with great back-office support, ready-to-use marketing and advertising tools, and a state-of-the-art CRM. Close more loans, fill your pipeline, and enjoy your career with Assurance Financial. Contact Sales Recruiting Manager Paul Peters, CMB at 225-239-7948 or visit LendTheWay.com/Careers.
Considering your business plan for 2018? Finance of America Mortgage’s Wholesale division, FirstFunding, Focus Fulfillment and FACo are teaming up to offer a series of live “B.Y.O.B Power Workshop” events around the country. Brokers and non-delegated correspondents are invited to hear about new trends in business models for the small business owner. Topics include steps to Become Your Own Banker. A bonus session will be presented on “Fix and Flip” and Portfolio rental products. Learn how you can earn residual income originating commercial loans and lines of credit. Here you go: November 7 Sacramento, CA, November 8 Glendale, CA, November 9 Santa Ana, CA, December 4 Saddle Brook, NJ, December 5 Mt. Laurel, NJ, December 6 Orlando, FL, and December 7 Fort Lauderdale, FL.
Lock policy changes
Effective September 12, for all existing active and new locks, NewLeaf Wholesale updated its Rate Lock Policy.
NewLeaf has a 180-day Extended Rate Lock with Free Float Down Option on a To Be Determined Property. Some restrictions apply but the main theme is no upfront fee, TBD, extended lock capped rate float down – 180-day lock with option to “float down” to current market rate, available on Conventional, FHA and VA 30-year term program.
Optimal Blue launched the second phase of its application programming interface (API). Originators can lock their loans faster than ever before with scenario pricing and locking, as well as functionality and enhancements built directly into its LOS platform. This expanded suite of API offerings will provide full listing search results, best execution search results and unprecedented pipeline and lock management. Users can not only create, update, and retrieve loans, but they can also seamlessly retrieve, filter, and sort pipelines.
Wells Fargo Funding is updating its unacceptable property types for Non-Conforming Loans to include A-frame homes and other atypical properties that do not conform to the neighborhood due to their unique style and limited comparable properties. Effective on Best Effort Registrations, Locks, relocks, and renegotiations on and after October 24, 2017.
Effective immediately, any Jumbo Product Energy State underwriting restrictions previously announced by Fifth Third Correspondent Lending have been eliminated. For Correspondent Connect users, all product parameter restrictions have been eliminated as well. Lenders using Correspondent Connect can follow the standard Non-Agency Jumbo product manual for all states. For LendingSpace users, the product parameter restrictions published in the Product manual are still in effect. A future announcement will be made when LendingSpace is updated to remove the product parameter restrictions. Refer to the Correspondent Underwriting Guidelines for additional information.
MGIC is simplifying its pricing of jumbo loans, loans with temporary buydowns and loans with an agency AUS response other than Approve or Accept. For MI applications received on or after December 4th, MGIC is eliminating the loan amount premium adjustment for loans > $650,000 and > $450,000. Pricing loans with temporary buydowns as Fixed when the permanent payment terms of the mortgage note meet its Fixed loan category criteria. Pricing loans with an Agency AUS response other than Approve or Accept according to the Representative Credit Score, rather than using the lowest credit score tier (see its Underwriting Guide sections 2.03.03 and 3.10.02b). These loans continue to require an MGIC MI Underwrite/Full-Doc Review.
MB Financial Bank N.A. is enhancing its current guidelines. It has remove the requirement for an Operating Income Statement on investment property transactions and will allow student loan payments as reflected on the credit report or accept a letter from the creditor stating the payment amount on Conforming loans. Its Jumbo 90 Plus will allow rental history documented to cover 12 months, down from 24 months to show no 30-day late payments.
Pacific Union adjusted the cap for Fixed Jumbo Prime JP30 (JP30PACPL) and JP15 products: Fixed max price is 102.250.
Effective 10/18/17, Weslend Jumbo ARM Transactions are limited to a max LTV of 80%.
Reduced tax amounts resulting from a tax abatement on the subject property can be used for debt ratio calculation provided the abatement will last greater than 60 months (5 years) from the Note date applicable on FTMC’s Agency and Jumbo products. If the tax amount increases over the abatement time-period, the annual tax amount at the end of the 5th after the first mortgage payment date can be used.
Flagstar Closing Services announced a product expansion for the Broker ABC program and ABC customers are now closing Jumbo loan products.
Franklin American Mortgage has updated its guideline to reflect new policies and guidelines to include ineligible DU PIW’s: transactions with a gift of equity and transactions with rental income from the subject property being used to qualify the borrower (1unit investment properties). Also, FHA Streamline Refi guidelines have been expanded to allow 1-unit investment properties for Streamline Refinance transactions on the FHA standard products. Investment property Streamlines will remain as not permitted for the FHA Jumbo product.
Condo lending trends
Looking back a ways, effective August 16, Flagstar Bank’s Project Review will no longer be reviewing Condo Projects on Delegated files to better align with the Limited and Full Condo Project review process. Project Eligibility Certification Form, Doc. #3285 will be updated to reflect the Full Project review responsibility of the Delegated Correspondent and must be provided prior to purchase. The Delegated Correspondent will be responsible for providing the required documents to support Full Project review was completed or the loan may be subject to repurchase. The Flagstar Bank approved condo list does not relieve the customer of reps and warrants, it is informational only.
Investors, of course, continue to inform clients of approved condo projects. For example, here is SunTrust’s.
On Oct. 21, Fannie Mae updated the Condo Project Manager (CPM) system to enhance the user experience through improved system navigation and functionality. To accommodate the upgrade, CPM was unavailable from Oct. 20 at 9 p.m. ET until Oct. 23 at 7 a.m. ET. For more information, review the release notes on the CPM web page.
MGIC’s latest enhancements are effective with MI applications received on or after Oct. 20, 2017. These include eliminating its Condominium Ineligible Projects List, reducing our documentation requirements for activating coverage on loans without a valid Agency AUS response. When the documentation age is > 180 up to 365 days, and adding disaster policy into its Underwriting Guide. See the Summary of Changes in its Underwriting Guide for details on these and other changes.
Events and Trainings:
As the MBA’s conference wraps up and the participants fill the trollies, trains, and cabs to the airport and back to their hometowns, there are some events coming up of note and of fun.
Join Silicon Valley CAMP for the Murder Mystery Dinner at Winchester Mystery House on November 2nd from 6-9pm. Dinner, Wine, Costume Contest, Silence Auction, Murder Mystery, self-guided tour at Winchester Mystery House and more. What a better way to network with realtors, lenders and fellow mortgage professionals.
Join MBA ST. Louis for lunch, networking, and discussion on driving profits with Craig Palubiak at Strategies to Grow Your Business on November 16th at Ces and Judy’s.
Plaza is offering a webinar entitled “MI cancelation and termination, the when and how” on October 27th, register now.
Following the CFPB’s recent consent order, title agencies want to ensure compliance to avoid getting fined. Join October Research 2-3 p.m. ET Thursday, October 26th for Redefining Relationships. Attendees of this webinar will find out how the relationships between underwriters and title agents could change and what that means for disclosing relationships.
The news driving rates (and stocks)? The press talking about Taylor’s odds of being the next Fed Chairman, general peace around the world, and the feeling that economies around the world are doing well – as indicated by the equity markets.
The MBS basis (how Fannie, Freddie, and Ginnie prices do relative to risk-free Treasury prices) closed wider as treasury yields marched higher, steepening the curve as the 10-year yield saw its highest level since mid-May, closing at nearly 2.42%. Bond traders are now counting on a slimmer spread between short- and long-term US Treasuries, regardless of who takes the reins at the Federal Reserve, as the normalization path will continue to flatten the yield curve.
Interestingly enough, the cash close was followed by more selling in the futures market, after it was reported that President Trump conducted a poll among Republican Senators to see who would be their preferred pick for next Fed Chair. John Taylor was said to be the favorite. But wait…there is more talk about Trump liking Yellen!
Today, we have the usual Weekly MBA Mortgage Index (-4.6%, -19% from a year ago, refis -3%, purchases -6% – no inventory!); last week it was up 3.6%. September Durable Orders and Orders ex-transportation were released (+2.2%, +.7% – strong), along with the August FHFA Housing Price Index, and September New Home Sales. Additionally, we have a $34 billion 5-yr note auction. We commence Hump Day with rates higher versus Tuesday’s close: the 10-year is at 2.47% and agency MBS prices are worse .250-.375 on continued decent economic news.
Moshe died. His will provided $40,000 for an elaborate funeral.
As the last guests departed the affair, his wife Sarah turned to her oldest and dearest friend. “Ah, well, Moshe would be pleased,” she said.
“You’re right,” replied Ruth, who lowered her voice and leaned in close “So, go on, how much did this really cost?”
“All of it,” said Sarah. “Forty thousand dollars.”
“Aw, no!”, Ruth exclaimed, “I mean, it was a very grand affair, but $40,000?”
Sarah answered, “The funeral was $6,500. I donated $1,000 to the Synagogue. The whiskey, wine and snacks were another $1,000. The rest went for the Memorial Stone.”
Ruth computed quickly.
“Oy Vey! For the love of God, Sarah, $31,500 for a Memorial Stone? How big is it?”
Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Will User Names and Passwords Go the Way of Thermal Fax Paper?” 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.
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2017 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.)