does the penalty money that the CFPB collects go? And is it correctly
disbursed? The Office of the Inspector General (OIG) has some thoughts on whether or not the flow of funds is being handled correctly.
In other news, things are movin' and shakin' in the MI business. United Guaranty's
spinoff from American International Group will result in changes to its
capital structure that could shake up the competitive landscape in the
private mortgage insurance market.
National MI saw Moody's report that it, "NMIC's Ba2 financial strength rating reflects the view that the company has yet to attain scale and will require growth and additional capital
to reach that point. While Moody's believes that additional funding and
growth can be attained, it sees significant uncertainties related to
both, in part due to NMIC's late entry into a crowded mortgage insurance
The Arch MI
earnings call is next week. The MI biz reports up through to the
mortgage segment which has been profitable since it first got acquired
(mostly underwriting profit) but its contribution to that segment is
expected to be positive last quarter. The Private Mortgage Insurer
Eligibility Requirements (PMIERs) are now in effect for loans insured
with lender-paid mortgage insurance (LPMI) and originated on or after
January 1st, 2016. Arch MI is filing updated LPMI rates that meet the new PMIERs requirements with state insurance agencies. Pending state approvals, its new LPMI rates will go into effect nationwide on March 1st, 2016. A
subsequent reminder will be sent to you on the effective date,
providing specific details and requesting that you update your systems
and notify your staff.
WestStar Mortgage, effective immediately, has approved Radian, Arch and MGIC using Delegated Authority. This
process will eliminate the need for any prior approval from the above
MI partners. With the submission directly through Encompass, which
provides instant feedback, loan decisions for Mortgage Insurance will be
less cumbersome and allow for a quicker loan decision.
USBHM has changed two
LPMI products, effective for new locks taken on or after 1/12: USBHM
10/1 Jumbo ARM 85.01% - 90% LTV and USBHM Non-Conforming Fixed 85.01% -
And the flood and disaster bulletins, unfortunately, continue to come out.
Wells Fargo is aligning its flood policy with that of agency requirements for loans purchased on or after January 25th. In
response to the severe storms, tornadoes, winds, and flooding in Texas,
Wells Fargo Funding will require Sellers to follow its standard
Disaster Policy for all impacted properties, effective immediately.
First Community Mortgage has posted an update to FEMA declared disaster counties.
is now offering the Fannie Mae HomeReady Program. The program
incorporates a general income limit of 80% of area median income (AMI)
and provides for properties located in low-income census tracts with no
borrower income limits and up to 100% of AMI for properties located in
high minority census tracts or designated disaster areas. Log into its website for program details.
January 6, 2016, the Governor of California proclaimed a State of
Emergency for the Porter Ranch area of Los Angeles County due to ongoing
issues with the Aliso Canyon gas leak. Effective immediately and until
further notice, NewLeaf Wholesale
temporarily suspends lending on properties located in the 91326 zip
code. NewLeaf will not proceed with new originations in the 91326 zip
code until the Aliso Canyon gas leak is resolved and the Governor's
Disaster Declaration is lifted. Properties in the adjacent zip codes
(91311 and 91344) may be impacted as well.
Fifth Third Mortgage Correspondent
will no longer assess and deduct from the amount wired a Flood
Certification or Tax Service fee. This effort to simplify its fee
structure will become effective with loans purchased on or after Monday,
With this change the Delegated Funding Fee will increase to $399. There
is no change to the Non-Delegated Funding Fee; it remains $499.
Effective with loans closing on or after January 1, Weststar Mortgage
now requires flood insurance escrows, regardless of the LTV, for loans
secured by residential improved real estate or a mobile home located in a
special flood hazard area for the life of the loan. All loans being
sold to Weststar Mortgage must be in full compliance with the new rules.
Consumers can still elect to pay the .25% fee to waive the collection
of property taxes and hazard insurance in the escrow account when the
loan meets required escrow waiver guidelines; however, flood is not
included in this waiver and must still be escrowed by the lender to meet
the new regulation requirements.
Appraisal news? Of course!
Due to the contaminated water supply in Genesee County, including Flint, Michigan, Penny Mac posted appraisal requirements due to the current health and safety hazard.
FHFA released the 2016 GSE Scorecard;
it calls for a potential change to appraisals, a new high LTV refi
program, a broadening of the CRT mandate, and implementation of the
Single Security within three years.
industry is still mulling over the news from nearly a month ago when
CoreLogic (CLGX) announced that it has acquired full ownership of RELS.
CLGX had previously owned 50.1% of RELS while Wells Fargo owned 49.9%.
The purchase price is $65 million and will be funded using cash on hand.
(If you're trying to value your own appraisal biz, analysts estimate
that CLGX paid approximately a 3x-4x multiple on EBITDA.) RELS provides
real estate asset valuation and appraisal solutions, including access to
experienced professionals, electronic property appraisal ordering,
tracking and fulfillment services - but the primary customer of RELS is
Wells Fargo at 80-90% of revenues.
Franklin American Mortgage
announced the removal of the overlay requirement for the Appraisal
Valuation Acknowledgement. Instead, lenders may use alternative
documentation - written or electronic - to evidence compliance with
Regulation B. To satisfy the evidence requirement, documentation should
be maintained in the closed loan file to show that all appraisals or
valuations used in connection with the loan application were delivered
to the borrower at least three days prior to the loan closing, or that
the borrower waived the three-day timing requirement. If the borrower
waives the review period, it must be evidenced they did so a minimum of
three days before the loan closed.
A while back, according to Land Home Financial Wholesale, it can have your borrower's loan ready to close in 21 Days or will credit the borrower the cost of their appraisal.
a la mode's Community Partnerships Program, it is able to connect with
even more appraisers, and help appraiser advocacy groups along the way
in new and better ways. With
financially sponsoring Community Partner events (annual meetings,
speaking events, etc.), all orders taken at a Community Partner event
are attributed to your organization's "give back code." That means we
donate a portion of every purchase directly back to the Partner group. Click here to learn more about a la mode's Community Partnerships Program.
Effective January 11 Mountain West Financial
Jumbo R Product is now requiring a Collateral Desk Analysis (CDA) along
with MLS Sheets to support the appraised value on all MWF Jumbo R
loans. Effective January 11, 2016, MWF Jumbo R Product will now require a
Collateral Desk Analysis (CDA) along with MLS Sheets to support the
appraised value on all MWF Jumbo R loans.
Platinum Data Solutions,
a provider of valuation data and analytics solutions, has launched RS3,
the industry's first automated appraisal compliance review tool that
evaluates appraisals for compliance with USPAP (Uniform Standards of
Professional Appraisal Practice) Standard 3 guidelines. Several states
have adopted regulations that require appraisal management companies
(AMCs) to review a percentage or portion of the appraisals they transact
in compliance with USPAP's Standard 3. "RS3 helps AMCs comply with
state appraisal review regulations in moments, and for a fraction of the
price that they'd pay to conduct these reviews manually," said Phil
Huff, Platinum Data's CEO. RS3 is built on Platinum Data's RealView
appraisal quality platform. It can review an appraisal report for
compliance with USPAP's Standard 3 and relay its findings in a matter of
seconds. The RS3 report is designed to help users immediately identify
the most important findings. It uses visual cues like color and object
placement to differentiate findings such as compliance violations,
inconsistencies, errors and outliers.
Platinum Data Solutions
reported that in the third quarter of 2015, 39% of appraisals contained
property quality or condition ratings that conflicted with previous
ratings on the same property. These-and other-appraisal inconsistencies
are a primary cause of underwriting delays. They can result from a
number of factors and apply to work completed by the same appraiser as
well as that of another appraiser. Platinum Data analyzed its database of over 300,000 appraisals.
These were evaluated by RealView, its appraisal quality technology, in
Q3 2015. Conflicting property condition and quality ratings cause
delays. "More than one in three appraisals contains inconsistencies in
property ratings," said Phil Huff, president and CEO of Platinum Data
Solutions. "Causes aren't easy to determine, so they need to be
investigated. Doing this after UCDP submission opens lenders up to
numerous issues. Costly delays are just one of them."
Shifting gears to the bond market and interest rates, we did have a fair amount of news Monday. Personal
Income rose 0.3% in December, which was a little better than expected,
although that money wasn't spent. Personal Spending was flat in
December, which means the Great American Deleveraging continues to take
place. Inflation remains nowhere to be found, with the PCE Deflator
negative in December on a month-over-month basis and up 0.6% YOY. The
core PCE was flat in December and up 1.4% YOY. The ISM Manufacturing
Index fell to 52.4 from 52.7 last month, while the ISM Manufacturing
Index rose slightly to 48.2 from 48. And Construction Spending rose 0.1%
in December after falling 0.6% in November.
of this caused the U.S. Treasury market to lose some ground despite a
sharp decline in oil prices. What's ahead for today? Aside from vehicle
sales figures (that don't typically move rates) not much although the
political analysts will be ruminating on the Cruz-Clinton Iowa results.
On to New Hampshire? On Monday the 10-year settled at 1.97% and this morning in the very early going it is sitting around 1.92% with agency MBS prices better by .125.
Jobs and Announcements
retail job news, "Are you a successful Loan Officer or Branch Sales
Manager looking for a new opportunity? As a well-established,
privately-held company, Network Funding has
the opportunities and the support structure for you to reach your
goals. We are looking to expand our footprint in the upper eastern
states. Our growth is focused in CT, MA, RI, PA & MD but we have opportunities all over the country." Learn more about Network at join.nflp. com or contact Executive VP Brett Snortland (832.545.4653) or VP of Sales/Branch Ops Richard Jefferson (480.370.3600) for more information.
Also in retail news, "A successful and growing company is hiring Loan Officers and Branch Managers throughout the US. All Western Mortgage is 100%
retail and knows that the key to success in today's mortgage
environment is the resources it provides its Sales Team. We combine
excellent service and operational support with direct access to those
who make the decisions. Our roll-up-the-sleeves approach to the business
will help you achieve the success you are striving for. Established in
1985, we are licensed in 17 states from California to Florida and
empower our Sales Team with a full menu of competitive products and
state of the art marketing support. Confidential inquiries and resumes
can be directed to our Recruiting Manager Charlotte Buchanan (702-947-0624).
gears to wholesale, "Looking to make a career change or break into the
wholesale industry? Freedom Mortgage's continued growth presents a
unique opportunity for non-industry professionals or those currently in
operations seeking to transition to sales. Freedom
Mortgage is offering an intensive mortgage training program and is
looking to hire inside sales reps for their new Regional Account
Executive position in their Phoenix, AZ fulfillment center. Send resumes or contact Karl Benjamin. Founded in 1990, Freedom Mortgage
is a privately held, full service residential mortgage lender, licensed
in all 50 states, Washington D.C., Puerto Rico and the Virgin Islands.
We are one of the largest and fastest-growing privately held mortgage
companies in the country. This is a great time to join Freedom."
What are you going to pay these folks? Richey May & Co.,
an accounting firm recognized as a leader in providing audit, tax,
compliance and oversight services within the industry, has launched its
annual Independent Mortgage Lender Compensation Survey.
This survey program offers participants the opportunity to evaluate
their compensation strategies and metrics in relation to their peers for
over 50 positions specific to mortgage banking companies. Reports
include compensation data for all mortgage banking positions,
departments and channels, and reports are customizable to your region,
state, or MSA. Unlike many compensation surveys, there are no long
questionnaires to fill out - send your company's data files from your
payroll and loan origination systems and Richey May will extract all
necessary information to conduct the analysis. To participate in the
survey, contact Tyler House.