Rob Chrisman

Daily News & Commentary

  • Daily Mortgage News & Commentary
  • About
    • Rob Chrisman
    • Marie Chrisman
    • Robbie Chrisman
    • Anjelica Nixt
    • Ed Rosenthal
  • Archives
    • Calendar of Posts by Month or Week
    • June 2013 to Current
    • Prior to June 2013
  • Advertise
    • Advertise on Rob Chrisman – Banners & Commentary
    • Podcast Sponsorship
    • Pay Pre-existing Invoice
    • Sample Overviews in Reporting/ & Analytics
  • Subscribe
  • Help
    • Request for analytics

Oct. 29: Wholesale & UW jobs vs. BofA & Deutsche layoffs; big week for bank M&A; fee changes & price adjustment trends

October 29, 2015 by Rob Chrisman

About Rob Chrisman

Rob Chrisman began his career in mortgage banking – primarily capital markets – 35 years ago in 1985 with First California Mortgage, assisting in Secondary Marketing until 1988, when he joined Tuttle & Co., a leading mortgage pipeline risk management firm. He was an account manager and partner at Tuttle & Co. until 1996, when he moved to Scotland with his family for 9 months. Read more...

Let’s start with something non-mortgage related but that may be of interest to some. Who doesn’t go faster than the posted speed limit on a freeway? Certainly not Sammy “I Can’t Drive 55” Hagar. Nor Google. Google’s driverless cars will exceed legal speed limits so they can keep up with other drivers. Google’s self-driving cars will be designed to exceed maximum speed limits, in a move to “improve safety.” The lead engineer for the project has revealed the vehicles will go 10mph (16km) faster than the speed limit. I am not clever enough to think of a correlation in residential lending and the CFPB using enforcement actions to govern instead of published rules…

 

Indecomm, a leading provider of mortgage technology, training, and outsourcing services, is seeking experienced underwriters. The successful candidate will provide a high level of customer service, communicating well with loan officers, brokers, and processors, and have the ability to review regulatory compliance with disclosures, validate data used by an automated underwriting system to decision loans, and perform a comprehensive review of the appraisal report. Other responsibilities include determining if the loan meets underwriting guidelines, product guidelines, investor requirements, and eligibility requirements. Candidates can be located in St. Paul, MN, Charlotte, NC, or remote. The ideal candidate should have 5 years of continuous active underwriting experience. An active NMLS license is preferred. Interested candidates should send their resume to HR Manager Candy Mechels.

 

In wholesale news New Penn Financial is hiring talented, experienced Wholesale Account Executives immediately in Massachusetts, New York, and Pittsburgh, PA. New Penn “is a dynamic and rapidly growing mortgage lender with over 1,600 employees nationwide. Founded in 2008 and licensed in 48 states, New Penn Financial is a part of the Shellpoint Partners family of companies. Its reputation has grown substantially under the guidance of a management team with years of experience in the mortgage industry. New Penn Financial has been recognized in the top 20 Third Party Originations Lenders and was recently voted as being a great mortgage lender to work for by sales professionals. To apply, please submit confidential resumes to Senior Corporate Recruiter Aubrie Cusumano.

 

On the flip side Deutsche Bank announced that it would slash as many as 35,000 jobs over the next two years through internal cuts and sale of businesses in order to simplify and overhaul the company. And Bank of America also announced some cuts in Charlotte as its bad loan load diminishes. (Anyone displaced can post their resume for free at www.LenderNews.com.)

 

In other lender-specific news Bose George with KBW observed that LoanDepot filed an S-1 registration statement. The company was the 11th largest mortgage lender during the first half of 2015 and the filings showed that “the company remained solidly profitably in 1H15 with a net profit margin of 14%.”

 

Bose goes on. “LoanDepot is a technology-enabled lender that originated $14.3 billion of mortgages in 1H15. Fifty-nine percent of LoanDepot’s product in 1H15 was done through the GSEs while 29% was through FHA/VA. The company is primarily a retail originator; in 1H15 41% of its volume came from its direct-to-consumer channel, 48% through its distributed retail channel, and 10% through its wholesale channel. The company generated a gain-on-sale margin of 2.98% in 1H15 and a 1.47% gain-on-sale margin for full year 2014. The company’s net profit margin was 14% in 1H15 and 4% in 2014. The company generated an ROE of 69.7% in 1H15 and 18.0% in 2014.

 

Continuing with the “sector” theme, banks continued to be winnowed out. Okay, that is not quite the term since bank closings are down dramatically versus prior years. But bank M&A rolls onward. Just this morning we learned that New York Community Bancorp Inc., the parent company for New York Community Bank and New York Commercial Bank, and Astoria Financial Corp., the parent company for Astoria Bank, announced the signing of a definitive agreement under which the two companies will combine in a strategic merger. The transaction is valued at approximately $2.0 billion.

 

In just the last week it was announced that multi-bank holding company Heartland Financial ($6.7B, IA) will acquire Centennial Bank ($722mm, CO) for about $84mm in cash (20%) and stock (80%). Alerus Financial ($1.6B, ND) will acquire retirement plan provider Alliance Benefit Group North Central States Inc. (Located in Kansas, Alliance provides recordkeeping and administration for 900 retirement plans, 75,000 participants and $6B in plan assets.) In Arkansas Anstaff Bank ($430mm) will acquire Twin Lakes Community Bank ($109mm). In Pennsylvania Beneficial Bank ($4.7B) will acquire Conestoga Bank ($719mm) for 1.6x tangible book value but not to exceed $105mm.

 

Southern Bank and Trust Co ($2.2B, NC) will acquire Heritage Bank ($324mm, VA) for about 1.45x tangible book (100% cash). Here in Michigan Level One Bank ($905mm) will acquire Bank of Michigan ($108mm) for $17 per share in cash. In Joisey Regal Bank ($373mm) will acquire Community First Bank ($99mm) for $9.7mm in cash (10%) and stock (90%). In Maryland Revere Bank ($749mm) will acquire BlueRidge Bank ($205mm) for about $20mm in stock. Bank of the Ozarks ($8.7B, AR) will acquire Community & Southern Bank ($3.8B, GA) for just under $800mm or about 2.0x tangible book. Renasant Bank ($5.9B, MS) will acquire KeyWorth Bank ($389mm, GA) for about $58.7mmm in stock.

 

Have there been any changes recently to lender and investor fees & price adjustments? You bet there have. In no particular order, but to give you a sense of the trends…

 

Sun West Mortgage provided clarification on how the 7-day waiting period for reverse mortgage applications for properties in the state of California should be implemented.  A lender shall NOT accept a final and complete reverse mortgage application and assess any fees until 7 calendar days from the date of loan counseling. In other words, while an initial application may be taken within 7 days of the counseling completion date, the closing may not happen until 7 calendar days after the counseling has been completed.

 

M&T Bank’s recent product bulletin referenced USDA’s announcement that the Upfront Guarantee Fee will increase from 2.0% to 2.75% for loans approved by the USDA on or after October 1st. The USDA regional turn times are currently running 10 to 14 business days. These turn times will only get longer as the October 1st deadline approaches. Lenders are reminded to submit complete packages to the USDA for their approval, incomplete packages slow down the process and extend turn times.

 

Recent and upcoming changes for LDWholesale clients include information regarding state specific disclosures, private transfer fee policy, and ARM qualifying rate. Click here to view LDWholesale’s “What’s New” weekly newsletter.

 

What about those USDA loans? Lenders are reminding folk of the USDA upfront guarantee fee increase, effective for all new Conditional Commitments issued on or after October 1, 2015. USDA will be increasing the Upfront Guarantee Fee to 2.75% from 2.50%. The annual fee is unchanged and will remain at .50%.

 

Finance of America Mortgage addressed recent USDA changes on guaranteed loans approved/CC issued beginning October 1 which are subject to a 2.75 percent upfront guarantee fee (2.00 percent prior) and a 0.50 percent annual fee (unchanged) as well as the temporary lapse of funding procedures and impact for lenders and borrowers. As per usual, Conditional Commitments will be issued “subject to the availability of commitment authority”. As of October 1, 2015, GUS applications in a “Final Submission” status, with an upfront guarantee fee of 2 percent that were not issued a conditional commitment by RD prior to the close of business on September 30, 2015 will be subject to a conversion process.

 

Effective as of September 15th, Pinnacle Capital Mortgage adjusted its Lender Fees as follows: $995 Admin Fee for all states with the exception of AZ, NM, CO, & UT with admin fee of $895. Streamlines & IRRRLs refinances will require a $495 Admin Fee.

 

The RD fee increase affected FCMKC procedures as of October 1st. Click the link for specific instructions regarding Rural Development submissions.

 

Back in mid-September PennyMac implemented updates to the ‘Govt LLPAs’ tab on all rate sheets.  Click the link to view the sections specifically updated.

 

Beginning October 5 MB Financial Bank’s Mortgage Division increased the Lender Administration Fee by $45. This fee increase applies to any Loan Estimate that is disclosed by MB for mortgage loan applications taken on or after October 3 and is applicable to all loan types where MB currently charges the admin fee.

 

Per Mountain West Wholesale requirements, in order for a borrower to pay an appraisal fee, the Notice of Intent to Proceed date must be provided at the time of appraisal order. In addition, it is MWF’s policy, as the Lender, to issue any and all versions of the Borrower’s Closing Disclosure required by TRID.  The Settlement Agent will be responsible for issuing accurate Seller’s version and any other Settlement Statements required by TRID and/or their own agency, state and federal governance.

 

To ensure compliance with new TRID requirements, CoesterVMS released a disclosure calculator that produces fee quotes based on property complexity and product selection. The calculator uses a multi-factor approach, which considers the following when providing an estimate: Mean appraiser fee for selected product in property market, Finished square footage, Lot size and estimated value. Following calculation, users have the option to place an order or save the quote for later use. The My Quotes menu allows users to manage, print and place orders from saved quotes. The system will populate all information directly into the order form for orders placed from quotes, including the quoted fee.

 

Wells Fargo Funding is updating its Non-Conforming policy, effective November 16th, to include the requirements for the use of premium financing. The funds derived from premium pricing, are allowed only to pay the borrower’s typical Closing costs and/or prepaid expenses. CFIRC may not be used to pay any portion of the borrower’s down payment, personal debts (e.g., revolving debt), collection accounts, judgments, escrow shortages, or any other item that is not considered a typical prepaid item or typical closing cost paid by the borrower as listed above. Clients should read its News Flash for full details.

 

Moving on to rates, using the yield on the 10-year T-note as a proxy for “interest rates”, its yield has ranged between 2.00-2.50% for most of 2015. We’re still there, although most of the e-mails I received yesterday were from lenders raising their rates after the Federal Open Market Committee statement was released. The FOMC statement said that the committee will determine “whether it will be appropriate to raise the target range at its next meeting.” That means December. But the FOMC left the Fed funds target unchanged at 0-0.25%, as was almost unanimously expected, and Yellen & Crew said that the economy continued to expand at a “moderate pace”. This shouldn’t be stunning news to anyone. But the Fed went out of its way, relative to the September statement, to put a December hike back on the table.

 

For never-ending excitement today we’ve already had Initial Jobless Claims (+1k to 260k, continuing claims -37k) and Q3 GDP (+1.5% vs. +3.9% for the 2nd quarter). Ahead of us will be September Pending Home Sales and a $29 billion 7-year note auction. We closed the 10-year at 2.09% Wednesday and we’re at 2.12% this morning; agency MBS prices are worse nearly .125.

 

 

Christian One liners (part 1 of 2)

People are funny: they want the front of the bus, middle of the road, and back of the church.

Don’t let your worries get the best of you; Remember, Moses started out as a basket case.

Some people are kind, polite, and sweet-spirited until you try to sit in their pews.

Many folks want to serve God, but only as advisers.

It is easier to preach ten sermons than it is to live one.

When you get to your wit’s end, you’ll find God lives there.

Opportunity may knock once, but temptation bangs on the front door forever.

Quit griping about your church; if it was perfect, you couldn’t belong.

If a church wants a better pastor, it only needs to pray for the one it has.

We’re called to be witnesses, not lawyers or judges.

The good Lord didn’t create anything without a purpose, but mosquitoes come close.

 

 

Rob

 

(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.)

Filed Under: Daily Mortgage News

Knock Careers

Service 1st

Service 1st

Private Lending

Constructive Loans

Richey May

Capacity

Capacity

Future of Real Estate Summit

FBC Mortgage, LLC

The Mortgage Link

Loan Depot

FlexClose

FlexClose

PacRes Mortgage

Hartford Funding

Matic

Evolve Mortgage Services

TENA

TENA

OpenClose

OpenClose loan origination software

GSFA

GSFA

Mr. Cooper Correspondent

Mr Cooper Correspondent

Point Mortgage

ReadyPrice

Edumarketing

LodaSoft

Richey May

Specialized Mortgage Services

Specialized Mortgage Services
​

ICE Mortgage Technology

LenderLogix

MGIC

MGIC

Purchase Bootcamp Virtual Private Event – RON VAIMBERG

University Lending Group

Omega

A&D Mortgage

ADMortgage

Baker Tilly

Open Mortgage

American Financial Network

Harrison National Employment

Harrison National Employment

Churchill Mortgage

NAN

Directors Mortgage

First International Bank & Trust

LoanStream Mortgage

Vice Capital

Armco

Phoenix

TotalExpert

AAG

SitusAMC

CHLA

Myvolly

FormFree

ActiveComply

Advancial Federal Credit Union

Verity

LoanCraft

FundingShield

LD Wholesale

Incenter

GHMC

ACT Appraisal

Sprout Mortgage

Western Alliance Bank

Experience.com

Stewart

ACES Quality Management

Black Knight

XINNIX

The Money Source

Nomis

Mortgage Capital Management

Supreme Lending

SimpleNexus

See Your Company Ad Here

See Your Banner Ad Here

American Pacific Mortgage

Quorumfcu

Recent Posts

June 23: Title, lead conversion, MSR, POS, QC products; STRATMOR piece on tech adoption; Wholesalers & TPO investors on the move

June 22: Analyst, MLO, AE jobs; PPE, U/W, lead purchase products; Events, training, & webinars through July

June 21: AE, MLO jobs; pricing, broker, jumbo, fee collection products; STRATMOR on connecting with borrowers; investor ARM news

June 20: FHA jobs; POS, LO survey, processing, servicing, non-QM products; Freddie & Fannie ceaseless changes

June 18: Letters on housing & the economy (allowing gazumping!) and cutting costs, vendor news: Saturday Spotlight: Change Wholesale

June 17: Hedging, MLO jobs; insurance, eVault, defect rate, warehouse products; easy-to-understand basis risk primer

June 16: MLO jobs; company webinars, non-Agency, compliance, DPA products; USDA & Ginnie news; rates smack housing starts & permits

June 15: Analyst job; non-Agency, appraisal, loan delivery products; June & July events; expect a 75 bp move higher from the Fed

June 14: Compliance, MLO jobs; AMC, lender wanted; sales, compliance, non-QM, processing tools; VA program primer

June 13: MLO, reverse jobs; u/w automation, valuation, pre-approval tools; inflation drives 10-year yield toward 3.30 percent

June 11: Letters on the Equifax situation, Black Knight & ICE, all cash programs, combatting fraud; Saturday Spotlight: Denim Social

June 10: Bank & IMB LO jobs; productivity, pre-qual, non-Agency products; Freddie & Fannie changes; consumer price index: painful

View the Posts by Month or Week

Subscription Service

Click Here to Sign Up for Daily Commentary
You should begin receiving the commentary within 24 hours. If not, filtering may be taking place; attempt sending request from an alternative e-mail address. Email Rob at Email Having trouble receiving commentary? Please check our help section.

Handcrafted with by HSS. Powered by the Higher Source Sites. Get in Touch.

© 2008 - 2022 · Rob Chrisman · All Rights Reserved