Arrgghh… I read in Pirate Quarterly that you could take the entire human population of the earth, put it inside of Texas, and it would still be less crowded than New Yorrrrk City. (So I checked. NYC is 469 square miles, 8.3 million people, so 17,700 people per square mile! Texas is 268,820 square miles, which at 17,700 people per square mile would accommodate 4.75 billion people.) But there are 7.2 billion of us. Fortunately Alaska is twice the area of Texas, so at least we can say one state would hold the earth’s population at the same density as Manhattan. For something a little more relevant, check out this cool mortgage map. It shows lending trends over the last several years here in the United States (click on “interactive map” in the text to watch it).
Here is something a little off the beaten path for someone good at sales but is a little weary of mortgages. Due to continued growth, Inheritance Funding Company, Inc. is looking to hire an additional Funding Officer for its San Francisco Financial District home office. Inheritance Funding Company, Inc. (IFC) has provided heirs waiting for their inheritance distribution with capital advances for over 20 years. “With over $100M advanced to heirs in all 50 states, IFC is the oldest and largest purveyor of inheritance advances in the country. With continued growth in this lucrative sector, IFC is looking to hire the right talent to catch up with increased demand. Inheritance/Probate experience is neither expected nor required though some understanding of legal process is a plus. The right candidate will showcase a blend of sales expertise, analytical reasoning, and strong client communication skills. Competitive base salary and uncapped incentive pay for strong performers.” Send all resumes and inquiries to Eric Holdsworth, VP of Marketing.
And along traditional lender lines, REMN Wholesale had a very successful showing at the 2014 NAMB with a packed booth on the show floor and more than 1,200 people registering to attend their 25th anniversary celebration at LAX. To keep up with demand, REMN Wholesale is looking to hire experienced account executives across the country, especially in California, Colorado, Louisiana, New York, Texas and Virginia. Know anyone? Resumes can be sent to REMN Wholesale at [email protected]. “REMN Wholesale is a full service lender dedicated to providing brokers and bankers with the best customer experience possible, which includes same day turn times on new files. In addition to their leadership in renovation lending, REMN Wholesale offers government and conventional products, including high-balance, FHA, VA and USDA loans. For more information visit REMN Wholesale.”
Congratulations are in order for John Adams who has joined Stearns Lending as Executive Vice President, National Head of Retail Lending. Mr. Adams has been brought on to continue Stearns’ nationwide growth of retail channel. Prior to joining Stearns, Adam served as the Northeast Sales Executive for Bank of America, and spent 14 years leading and building sales teams throughout the Eastern United States for Wells Fargo Home Mortgage.
In 2002 I remember looking out my office’s window and seeing employees of another mortgage company taking boxes of loan files out to the dumpster without being shredded. The situation was corrected, but it appears that people are still capable of doing these things – and thus comes a similar tale from Colorado and Centennial Mortgage.
“Who will regulate the regulator?” The CFPB once again turned some heads Wednesday, this time addressing nonbank car lenders. “The CFPB is proposing to oversee larger nonbank auto finance companies for the first time at the federal level. The Bureau also released a supervision report that details the auto-lending discrimination that the Bureau has uncovered at banks. The report highlights that the Bureau’s supervisory actions against banks will result in about $56 million in redress for up to 190,000 consumers harmed by discriminatory practices…Currently, the Bureau supervises large banks making auto loans, but not nonbank auto finance companies. Today the CFPB is proposing to extend its supervision authority to the larger participants of the nonbank auto finance market. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), the CFPB has authority to supervise certain nonbanks the Bureau defines through rulemaking as “larger participants” in a market. Today’s proposed rule would generally allow the Bureau to supervise nonbank auto finance companies that make, acquire, or refinance 10,000 or more loans or leases in a year. The Bureau would be supervising them to ensure they are complying with federal consumer financial law. The Bureau estimates that about 38 auto finance companies would be subject to this new oversight. These companies originate around 90 percent of nonbank auto loans and leases, and in 2013 provided financing to approximately 6.8 million consumers.” Let’s face it – the critics are gaining momentum saying that possibly every fiscal transaction involving a consumer will be eventually overseen by the CFPB.
While we’re on the CFPB, nearly a month ago news broke of Flagstar’s “eminent” settlement with this bureau. I haven’t seen any settlement, but it bears repeating & clarification that this information is a result of Flagstar’s servicing operation, and has nothing to do with channel issues such as mini-correspondent. Flagstar’s Form 8-K states, “Flagstar Bancorp, Inc., the holding company of Flagstar Bank, FSB (the “Bank”), announced today that the Bank has commenced discussions with the Consumer Financial Protection Bureau, or CFPB, related to alleged violations of various federal consumer financial laws arising from the Bank’s loss mitigation practices and default servicing operations dating back to 2011. The Bank previously provided the CFPB with documents and other information concerning the Bank’s loss mitigation practices and default servicing operations in response to Civil Investigative Demands received from the CFPB. While the Bank intends to vigorously defend against any enforcement action that may be brought, it has commenced discussions with the CFPB staff to determine if a settlement can be achieved. Those discussions are ongoing.”
Returning to bank news, is $8 trillion in loans on the books of banks, a good thing, or a bad thing? I guess, like most things in life, it’s all relevant. My answer would be: sometimes good, sometimes bad. The American Bankers Association’s Chief Economist, James Chessen, writes, “Banks reached a historic milestone in the second quarter, holding more than $8 trillion in loans on their books for the first time ever. The double-digit increase in business lending reflects increasing confidence, with businesses more likely to consider expansion in an improving economy. We’re seeing the natural link between businesses being willing to borrow and a growth in job creation, with around 210,000 new jobs created each month. There has never been a better time for businesses that want to borrow and expand their operations. Rates are low, and a highly competitive marketplace ensures banks will offer a broad menu of options when it comes to structuring loans.” While bank assets grow, residential lending continues to under-perform, as Mr. Chessen points out, “total lending is up $377 billion year-over-year, residential mortgage lending remains weak. New regulatory requirements on mortgage lending are not helping, and will continue to dampen a key economic driver. First-time homebuyers are feeling the pinch most intensely.”
I head off to the Mortgage Bankers Association of the Carolinas annual conference tomorrow, which made me realize that there are a lot of upcoming events – many of them free and educational. So in no particular order…
In compliance news: Mortgage technology innovator Mortgage Coach and renowned compliance expert Mitch Kider (Mitch is Chairman and Managing Partner of Weiner Brodsky Kider PC and represents his clients in investigative and enforcement matters before the CFPB, the Department of Housing and Urban Development, the DoJ, FTC, Ginnie Mae, Fannie Mae, Freddie Mac, and more) are hosting an online Sales and Marketing Compliance Clinic Tuesday 11AM PST. “Mitch will be covering topics like cooperative marketing with Realtors, disparate treatment, MSAs and desk rentals, how loan officers can best protect themselves, the vital importance of transparency and consistent borrower rate quoting to both the CFPB and states and much more. This call will be attended by the industry’s best; from top C-Suite execs to dedicated loan officers. Join the call and learn how to change compliance from a weakness to a competitive advantage. Click here to register.
The MBA/MW’s Mid-Atlantic Lender Conference is coming up on Thursday, October 9. It will be held at Waterford at Fair Oaks (in Fairfax, VA), and anyone interested should register (https://s08.123signup.com/servlet/SignUpMember?PG=1529710182300&P=15297101911427697200&Info) by October 2 for the early bird rate. Lunch and happy hour are included at no extra cost. Click on the link above to download pdf with speaker details. Hey, it includes a trade show and happy hour!
All Regs has scheduled school of mortgage compliance November 3rd-5th. The three-day, interactive classroom experience is designed to give compliance professionals an advanced understanding of the federal regulations governing the mortgage industry.
In Oklahoma, the OMBA Conference on October 3rd will be presented by Bricker & Eckler LLP and INCompliance. This one-day conference covers the most critical regulatory, compliance and litigation issues facing the industry. Event details include agenda and registration information.
Get ready for a jam packed agenda on mortgage compliance next steps and latest best practices at the Mortgage Regulatory Forum taking place September 22-23, at the Westin Arlington Gateway, Arlington, VA.
On Wednesday, September 24, join WAUSAU Financial Services and Treasury Strategies in a webinar discussing key reasons why paperless onboarding should be on every bank’s 2015 project list.
Late November in Washington D.C., American Conference Institute is offering a 2-day conference. Register by September 23rd and join the mortgage servicing compliance summit, topics include MSR transfer risks and much more.
Save the date: Colorado Mortgage Lenders Association 24th Annual Rocky Mountain Mortgage Lenders Expo on April 9th, 2015, more information to follow in the coming months.
Social Media Bootcamp: OC C.A.M.P. registration scheduled on October 1st, Katie Wagner will discuss what not to do with social media for your business. Speaking of Orange County, CA, the 2nd Annual Orange County C.A.M.P Golf Tournament supporting worthwhile organizations is scheduled for October 6th.
Turning to the markets, jobs and housing are keystones of any economic recovery, and yesterday we had updates on both. Housing Starts fell 14.4% in August (following hitting its highest level in seven years) to a 956,000 annualized rate following July’s revised 1.12 million pace. And Building Permits for future projects dropped 5.6% to a 998,000 pace in August from a 1.06 million rate the prior month. But Jobless Claims fell 36,000 in the latest week, and are down near post-recession lows. The four-week moving average of claims, which smooth out weekly volatility, was down 4,750 to 299,500.
Thursday saw the standard buying by the Fed, helping the demand side of the supply & demand equation. Supply from mortgage bankers wasn’t anything to be excited about. And thus we find ourselves today not much different from rates during the entire week with the only scheduled economic news being the 10AM data with August’s Index of Leading Indicators. The 10-yr’s yield, which closed Thursday at 2.63%, is back to 2.60% and agency MBS prices are better nearly .125.
(Even though it is Talk like a Pirate Day, in honor of Scotland voting to remain tied to Britain…)
An extraordinarily handsome Scotsman decided he had the responsibility to marry the perfect woman so they could produce beautiful children beyond compare. With that as his mission he began searching for the perfect woman.
Shortly thereafter he met a farmer who had three stunning, gorgeous daughters that positively took his breath away. So he explained his mission to the farmer, asking for permission to marry one of them.
The farmer simply replied, “They’re lookin’ to get married, so you came to the right place. Look ’em over and pick the one you want.”
The man dated the first daughter.
The next day the farmer asked for the man’s opinion.
“Well,” said the man, “she’s just a weeeeee bit, not that you can hardly notice…pigeon-toed.”
The farmer nodded and suggested the man date one of the other girls; so the man went out with the second daughter.
The next day, the farmer again asked how things went.
“Well,” the man replied, “she’s just a weeeeee bit, not that you can hardly tell…cross-eyed.”
The farmer nodded and suggested he date the third girl to see if things might be better. So he did.
The next morning the man rushed in exclaiming, “She’s perfect, just perfect! She’s the one I want to marry.”
So they were wed right away.
Months later the baby was born.
When the man visited the nursery he was horrified: the baby was the ugliest, most pathetic human you can imagine.
He rushed to his father-in-law asking how such a thing could happen considering the beauty of the parents.
“Well,” explained the farmer, “She was just a weeeeee bit, not that you could hardly tell…
pregnant when you met her.”
(Copyright 2014 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.)