|This email was sent to you by:|
Mortgage News Daily
Email alerts, such as this one, are a free service
provided by Mortgage News Daily. If you would like to receive an alert when important news breaks
please register to join our community
PHH Sells Fleet Business; New Reverse Mortgage Program for Correspondents; Caliber's Non-Agency Rollout
How's it going with "private money" and mortgage-backed securities? Not so hot.
The creation of MBS is down, as one would expect, and of course cash
purchases don't create MBS, and in fact retire them. Cash deals account
for 29% of all sales, according to Bloomberg.
Retiring baby boomers are choosing to own homes outright, as opposed to
having a mortgage. Historically that number has been closer to 20%, but
heck, given the current paperwork and underwriting burden, why would
anyone go through the mortgage process if they didn't have to?
On the jobs front, Crescent
Mortgage Company is seeking Account Executives in North Texas,
Oklahoma, and Virginia as well as an inside sales representative
domiciled in Atlanta, GA. Founded in 1993, Crescent Mortgage Company is a top national wholesale and correspondent lender, and is a wholly owned subsidiary of CresCom Bank
(OTC BB: CARO). Crescent's primary customers include over 1,000
community banks, credit unions, and high quality mortgage brokerages
throughout the country, and product offerings including Fannie Mae,
Freddie Mac, FHA, VA, USDA Rural Development, and portfolio jumbo
options. Crescent also offers financial institution-specific products
such as its One-Time Close, and Two-Time Close construction to permanent
programs as well as optional contract processing services to its
partners. If you are interested in joining the Crescent Mortgage Family
and working with high quality financial institutions, please send resume
and cover letter to Fowler Williams, CMB, President, at fwilliams@crescentmortgage. net.
And Homeowner's Mortgage (HME) based out of Colombia, S.C. (a subsidiary of CoastalStates Bank) is expanding. HME
recently hired two seasoned mortgage professionals to join its team:
congrats to Tommy Adkins, who will run production for the entire
mortgage company, and Tim Haug, who has been hired to manage and grow
the Warehouse Lending program. As a result of these additions, HME is currently adding a select group of Mini-Correspondents/"Brokers to Bankers" to this Warehouse Lending program.
HME offers very competitive financing terms, rapid fundings off of the
line for many different product types, and a wide range of investors on
its Approved Take-Out list. Interested companies should contact Tim Haug
at thaug@coastalstatesbank. com. HME
is also hiring qualified state and retail branch managers as well as
Regional Wholesale/Mini-Correspondent AEs throughout the Southwest,
Southeast and Mid-Atlantic states. Those interested in any of the above production opportunities should contact Tommy Adkins at tadkins@homeownersmtg. com.
Mortgage Solutions (RMS) has recently hired Steven Klein to help larger
institutional lenders add the Reverse Mortgage product to their product
offering on a Correspondent basis. The
reverse mortgage program - specifically the reverse for purchase and
the line of credit for long-term financial planning objectives - is
highly under-utilized. More and more traditional lenders are adding this
product to not only help their customers, but to retain and attract top
Loan Officers and to decrease the cost per loan to originate. As one of
the largest reverse mortgage players in the industry - RMS can help
banks, mortgage bankers and credit unions launch this program through
their expertise in training, marketing assistance, and ongoing support.
Steve can be reached at steven.klein@rmsnav. com and you can visit RMS for more information as well.
Speaking of reverse mortgages, Reverse Mortgage Daily reports that "Reverse
mortgage stakeholders are working together to delay the impact of
Massachusetts legislation that will require face-to-face counseling for
some reverse mortgage borrowers beginning August 1, and could deter
lenders from conducting business in the state. During 2010, an amendment
to a bill was passed into law that included the mandatory provision for
certain low income seniors. Since then, the industry has worked toward
postponing the mandate-succeeding in that effort twice. It is now
scheduled to take effect August 1, following the end of the current
fiscal year in Massachusetts. While the face to face counseling would be
required only of those deemed qualifying as low income, lenders have
said one of two outcomes would take place as a result of the mandate:
either all borrowers in Massachusetts would need to receive the
counseling in person or lenders would cease lending in the state. 'There
are housebound seniors, transportation issues, language issues and a
host of restrictions,' says George Downey, founder of Harbor Mortgage
Solutions in Braintree, Mass., noting a past brief face to face
counseling mandate in Massachusetts that brought wait times for
borrowers to two to four months. 'The bottom line is it effectively will
shut down reverse mortgage lending as we have known it in
the issue is pressing currently in Massachusetts, it could have
implications for other states, like California, that have also seen
legislation introduced-though not passed-including similar requirements.
Currently, North Carolina has mandatory face-to-face counseling, but
also has some state funding available to help agencies bear the costs
Let's keep going with some specific product, investor, lender, vendor news. I don't know how folks keep up with all this!
The WSJ reports that Wells Fargo
is "overhauling its offerings of home-equity lines of credit so that
most new customers will be required to pay principal and interest over
the life of the loan, a significant shift by the nation's largest
home-equity lender. By restructuring the product, Wells eliminates the
prospect of future payment-shock issues. Wells says that it will
continue to offer interest-only HELOCs only for customers with
significant assets. While the vast majority of homeowners today take out
first-lien mortgages that are fully amortizing, most HELOCs allow
borrowers to make only interest payments typically for 10 years."
(Read More: No More Interest-only HELOCs for Wells Borrowers)
Mountain West Financial's
wholesale bulletin outlines DU REFI PLUS credit requirements specifying
a payoff demand is required in the file to document the current
servicer, all Borrowers must have a FICO Score, existing mortgage must
be current and 0 X 60 day late payments in most recent 12 months and
borrower must meet the requirements for FNMA DU underwritten loans,
including mortgage delinquency, bankruptcy and foreclosure requirements.
History was made last month when Mortgage Harmony,
home of the HarmonyLoan and Loan Retention Software, facilitated the
first HarmonyLoan origination by a correspondent lender for sale to a
credit union. Jeff
Richards, loan officer with First Home Mortgage originated the
HarmonyLoan for sale to Coastal Federal Credit Union out of North
Carolina. "Coastal recognizes the value of leveraging the correspondent
army to originate loans and First Home Mortgage is pleased to have an
outlet for the HarmonyLoan that differentiates them from the rest of
their competition. It is nice to witness industry innovation in the
And under the "tools lenders can use", Vidverify reminded users of its platform that enables lenders to provide the borrower and loan officer with a series of videos that automatically deliver a clear, concise and consistent message throughout the loan process. "Vidverify
allows banks and mortgage banks to get in front of potential regulatory
issues by educating borrowers as to the mortgage process providing
clear explanations of their paperwork, and definitions of all relevant
mortgage terms. The system contains a complete video library which also
allows for customization for your company. Additionally, you can track
the status of each video to confirm it has been viewed by your
borrower." Contact Laura Hopkins at lhopkins@vidverify. com with any questions.
Citibank Correspondent Lending
has updated general credit policies including pooled funds and
calculating rental income. Loan specific, FHA fixed rate transactions
regarding rebuttable presumptions and safe harbor policies have been
updated as well. Contact your account executive for the most recent bulletin enhancements to Citibank products.
Conforming guideline updates have been posted by Cole Taylor Mortgage.
Effective immediately, conventional, conforming products will allow
100% gift funds with DU automated approval. Additionally, revolving debt
payoff to qualify on both DU and LP is also available. For the complete
details, contact your area representative.
Franklin American's wholesale channel
alerted brokers to the ECOA counteroffer clause. "The Equal Credit
Opportunity Act (ECOA) allows financial institutions to make
counteroffers to the applicant when original terms requested would
result in an adverse action. Notification of the counteroffer is
required within thirty (30) days of a completed application (Wholesale
utilizes the underwriting received date to start the 30 day clock) in
which underwriting has received all necessary documentation to evaluate
the application for the amount and type of credit requested. This is the
same notification requirement for a credit decision made on a completed
application. Examples of counteroffers may include: (1) a debt‐to‐income
(DTI) ratio that exceeds agency guidelines and FAMC counters with
lowering the rate to reduce the DTI; (2) the appraised value is too low
and FAMC counters to reduce the loan amount; or (3) if the applicant
cannot meet loan program criteria, then FAMC may counter with an
alternative loan program (a new loan number is required if switching
loan types). NOTE: Counteroffers may include adding a borrower to
qualify, but removing a borrower is not an acceptable counteroffer. If
the applicant does not accept or respond to the counteroffer, the
applicant must be provided an adverse action (notice) based on the
original loan terms requested.
broker from New Jersey wrote, saying that this is interesting.
"Mortgage brokers and bankers are actually required to accept all
mortgage applications, or they could have issues. I am not a compliance
expert, but I believe that if a broker accepts and submits a purchase
application and it is not denied but counter-offered, it could force the
purchase of a home to proceed with a transaction that may not fiscally
be in the borrower's interest. Many brokers believe that the loan should
always be denied and then a counter offer given. This affords the
borrower all options not just what might be in the lenders interest.")
PHH and Element Financial
announced the signing of a definitive agreement for PHH to sell its
fleet business to Element for approximately $1.4 billion in cash, with
PHH receiving proceeds of $750 million to $800 million after taxes and
transaction expenses. PHH plans to use the cash to reinvest in its
business, return capital to shareholders, and reduce unsecured debt
levels. And it appears that the mortgage group will benefit.
Caliber Home Loans Inc.
has announced the launch of its new Non-Agency Mortgage Program which
adds four new products to the company's product line-up. Caliber's new
Non-Agency Mortgage Program focuses on the needs of four types of
borrowers. It includes Caliber's "Fresh Start" Program (a credit
re-establishment program is for borrowers who may have experienced a
credit event, but cannot find a program in the marketplace that meets
their needs as they re-establish a strong credit history), a Foreign
Nationals program that offers greater flexibility to qualified borrowers
who are not citizens of the United States and whose mortgage needs are
not being met by the market's current offerings, a Non-Warrantable
Condos program for borrowers who currently have limited options because
they are looking to finance condos in projects that are not currently
eligible for loans backed by the government sponsored agencies, and a
Non-Agency alternative that offers expanded guidelines and qualifying
considerations for asset depletion to eligible, qualified borrowers,
including expanded debt-to-income ratios, an interest-only option and no
to the markets, in terms of the "benchmark" 10-yr T-Note yield, Friday
we closed at 2.46%, and Monday at 2.53%. And sure enough, prices on
agency MBS prices worsened .250-.375, depending on coupon. But there wasn't much in the way of market-moving news, so I won't waste your time over-analyzing things. There isn't much today either. At 10AM EST is April Factory Orders, which are seen lower from the prior +0.9% results. So maybe we'll see a quiet day. In the very early going the 10-yr is at 2.56% versus its 2.53% close Monday, and agency MBS prices are down/worse about .125.
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.