The Wall Street Journal reports banks are beefing up cybersecurity defenses
by taking actions that include banning employees from using USB drives,
not allowing employees to use work emails for personal use, warning
employees not to post out-of-office replies on email, to be careful what
they post on social media, and not to click on links in questionable
emails from unknown sources. And a survey by The Economist on cyber incident readiness
by businesses finds the top things executives think would assist their
company to be better prepared for a cyber incident are: better
understanding the potential threats, raising awareness of existing
preparations across the company, and testing existing preparations for
In response to lender feedback, Fannie Mae will implement expanded whole loan committing grids
on Monday, February 1, 2016, providing greater transparency and
enhanced certainty of execution for 15-year and 30-year commitments.
This change will give our whole loan sellers the transparency of the
specified market that has historically been available through an MBS
execution. View the infographic to learn more.
has updated its Conventional high-balance product guidelines with the
new LTV matrix to coincide with Fannie Mae's aligned Loan-to-Value (LTV)
eligibility requirements for high-balance conventional mortgages with
LTV eligibility requirements for standard conventional mortgages.
Stearns has expanded Fannie Mae guideline options as of December 12th. Visit Stearns website for details.
Peoples Bank is only offering Fannie Mae's HomeReady product for Purchase Transactions. The new loan product became available effective 12/21/2015.
is providing Best Practices of the scope of additional information
needed with an appraisal in order to make informed decisions regarding
the eligibility, or ineligibility of un-permitted additions as guidance
from both Fannie Mae and Freddie Mac is slightly vague and may not
provide as much detail as needed for the complete review of un-permitted
has updated its guidelines per Fannie Mae's expanded policy for age
restricted properties which now permit all occupancy types for purchase
or refinance transactions. Eligible Property Types (including eligible
condo projects and PUDs) 1 or 2-Unit Primary Residence or Investment
Property 1-Unit Second Homes. Occupant aged 55 and older may be a
non-borrower or a tenant. Refer to Fifth Third's Correspondent
Underwriting Guidelines for additional information.
Freddie Mac's retirement asset updates, Fifth Third Mortgage removed
the limitation that no more than 70% of the retirement account's value
may be used. 100% of the vested balance or percentage vested may be used
as reserves and will no longer require evidence of liquidation for down
payment or closing cost if the combined value is at least 20% more than
the amount needed. Note: Proof of liquidation remains a requirement if
required to complete transaction and required excess percentage.
Investment properties were removed from Kinecta FCU's Super-Conforming ARM product.
Any news or studies on those Millennials
that the entire industry is intrigued about? Sure there is! And by the
way, interest in this age group is not confined to lending: retiring
workers are increasing in nearly every occupation and industries are
wondering how they're going to "lure" younger workers to fill their
spaces. When was the last time you saw a 20-something welder or plumber?
long will everyone take to realize that Millennials - per our Census
Bureau those born between 1982 and 2000 - are in no hurry to marry, have
kids, or save up enough money and then finance a house? It will happen
eventually. Still it doesn't stop the fascination with their every move
but the ones that I talk to aren't too excited about constantly being
under the microscope.
millennial generation is moving out of the basement of their parents'
homes," says Steve Rick, chief economist of CUNA Mutual Group, which
sells insurance and investments to credit union members. Yes, and Fannie Mae Says Millennials Are Finally Leaving Their Parents' Basements. Homeownership
has been delayed but not forgotten. According to the ACS (Census
Bureau's American Community Survey), the number of homeowners aged 25-34
fell by more than 250,000 in each year between 2007 and 2012, but has
declined by less than 100,000 annually since then," Fannie Mae said. "In
fact, the decline between 2013 and 2014 was statistically
insignificant, the first indication of stability in the number of young
homeowners since the onset of the Great Recession." So while the number
of homeowners in that age range is still on the decline, the trend looks
poised for a reversal, and Fannie Mae said it won't take much to see
positive growth in millennial homeownership in the near future.
Census Bureau projects there are 75 million Millennials, 66 million Gen
X, and 75 million Boomers in the US today. But that is changing.
Nielsen projects the US population will be about 322mm
next year with a median age of 38 years old (and a median household
income of $55,551). By age, the population next year should be: 65Y+
(15%), 45-64Y (26%), 35-44Y (13%), 18-34Y (23%), <17Y (23%). In the
next 10 years millennials will be 75% of the workforce. And according to
the Census Bureau, the number of people age 65Ys+ will triple over the
next 25 years and reach about 80 million.
94% of young renters eventually want to buy a home,
according to the NAR. If wage inflation returns, 2016 could be the year
that this pent-up demand for housing begins to be felt in the industry.
by UBS finds millennials will go to the following sources most
frequently when seeking financial advice: spouse/partner (62%); parents
(41%); friends (26%); other family members (15%); a financial advisor
Deloitte survey of millennials (I wonder if they are growing weary of
being asked questions) finds 73% believe businesses have a positive
impact on wider society. Further, when asked what businesses should try
to achieve, millennials flagged "job creation" and "profit generation"
right alongside "improving society." The survey also found that when
asked to identify the personality traits of true leaders, millennials
most often cited: strategic thinking (39%), being inspirational (37%),
having strong interpersonal skills (34%), vision (31%), passion and
enthusiasm (30%) and being decisive (30%). That doesn't sound very
different from other generations at the same age in business and is in
line with how many in other generations still think.
the good news front for community banks, the Deloitte survey also found
that millennials in developed markets prefer to work for large
well-known businesses (35%) almost as much as they want to work for
medium-sized less well-known businesses (32%). Differentiating your bank
in this area could draw in more millennials over time perhaps. Also of
interesting note though, only 11% wanted to own their own start-up
business and the same percentage wanted to work for a small start-up.
firm CEB found millennials are very competitive with 59% saying
competition is what gets them up in the morning and 58% compare their
performance against peers. Both of these percentages are 8 to 10
percentage points higher than the respective levels for boomers, so that
too is a good sign of hunger and drive among millennials. Finally, we
look at that social thing and a need for constant contact with others
and kudos from bosses. Yes, this group is highly connected, but that
doesn't mean they believe everything they read or see. In fact, the CEB
survey found 37% of millennials don't trust peer input at work vs. 26%
for other generations. Further, 41% of millennials say employees should
do what their manager tells them vs. 30% of boomers.
Switching gears to legal matters, JPMorgan Chase will pay an additional $48 million to settle remaining issues stemming from missteps in its handling of mortgage servicing accounts.
And the Washington, D.C.-based watchdog organization Campaign for Accountability "has called on the Department of Justice to investigate three former members of the Obama administration
for revolving door practices related to the future of Fannie Mae and
Freddie Mac. In a Dec. 15 letter to the Justice Department, CFA
Executive Director Anne Weismann asked for an investigation into the
post-government activities of Mortgage Bankers Association President/CEO
David Stevens, the former Assistant Secretary of Housing and Federal
Housing Commissioner at HUD; Michael Berman, the former advisor to HUD
Secretary Shaun Donovan; and Jim Parrott, the former adviser to
was nothing to move bonds, and thus rates, on Tuesday, or any really
intriguing capital markets tales, so I won't waste your time. In fact we
closed the bond markets pretty much where they were at the end of
Monday. Today is a different story, however. We've already had the MBA's
weekly mortgage applications figures. To no surprise to lock desks, the
MBA reported that applications fell 27% even when adjusted for the
holidays. Refis were down 37% during the last two weeks and purchases
were down 15% (but are still higher than a year ago by 22%).
up is the December ADP report, at 7:15AM CST, is expected to show job
gains of 210k vs. 217k previously. The November trade deficit, at 7:30AM
CST, is expected to improve slightly to $43.0bn vs. $43.9bn previously.
The December Markit Services PMI (final) and ISM Non-manufacturing PMI,
mid-morning, are expected to be mixed vs. prior reports at 53.9 and
56.0, respectively. November factory orders, at 10:00am, is expected to
decline 0.4% vs. rising 1.5% in October. In the afternoon will be the
minutes from December's FOMC meeting. And as mentioned above we saw
2.25% on the 10-year at the end of Tuesday, exactly where we were Monday
afternoon. But in the very early going this morning we're down to 2.18% and agency MBS prices are better by .250-.375.
Jobs and Announcements
Can you believe that Envoy Mortgage Company doubled its headcount in 2015? "Our Correspondent Lending Division (CLD) played a huge role in that growth and has recently completed Envoy's team of Regional Account Managers with the addition of Wendy Lovett who will be responsible for developing the Southwest region. As Envoy CLD continues its growth throughout the country, new sales positions have been created: four AVP - Business Development positions have been created that will focus 100% of their efforts on developing new business partnerships in strategic areas (Carolina's and Central US to name a couple), and an East and West Division Manager
will be hired to help manage this growth for their respective
divisions. The theme for Envoy's recent internal sales summit meeting
was 'No Growth, No Glory!' Envoy is definitely on pace to achieve that
glory in 2016." Qualified candidates that are interested can forward
their resume in confidence to Todd Potter, SVP & National Sales Manager.
one of the industry's largest private Mortgage Insurance companies, is
growing its sales team and "has an excellent opportunity for a seasoned
The Regional Director, New Business Development is responsible for
pursuing and closing key sales opportunities in the South West
market. We are looking for a dynamic individual who has experience in
Mortgage Insurance and/or Correspondent Lending Sales. If you are
interested in joining the Radian team we would welcome the opportunity
to speak with you. Please send your confidential inquiry/resume to Sarah Keene."