NMLS Updated; Compensation Survey; Appraisal News; HUD Changing Application Process
Things can be
misleading out there, and occasionally non-depository mortgage bankers
wonder about becoming licensed in other states. The best source that I
have found for figuring out requirements is this.
As of January 18 the SAFE MLO National Test with Uniform State Content
reflected the recent CFPB mortgage rules. For candidates taking the
test on or after January 18 they will need to prepare using the new
version of the outline with the Effective Date of January 18, 2014. The
Testing Page of the NMLS Resource Center includes both versions, and can
be accessed here. And they have updated the NMLS Reference Guide: Citing Sources and Regulations in Course Materials and included a one page Quick Reference Guide.
The U.S. Post Office could offer banking.
Huh? Would it be a great idea, and make life easier for consumers, or
is it only an effort to "save the struggling government agency from
bankruptcy and taxpayer-funded bailouts"? Read all about it.
anyone whose livelihood depends on residential real estate, the bad
news is that there is not much inventory out there, impacting lenders
and Realtors alike. The good news is that it may be changing.
"Rob, what's the scoop on the Wells-Ocwen deal that was blocked by a bank regulator in New York?"
I think that many agree that if the regulators continue to shoot down
these deals, the banks won't be in a hurry to expand their mortgage
lending capabilities. And when you combine that with QM, Basel III
constraints, and the cost of compliance, at some point borrowers (and
thus the housing market) are impacted. Sure, $39 billion represents less
than 2% of Wells' portfolio, and the loans had not been originated by
Wells, but still, the industry wonders if it will put a crimp in
servicing values for everyone.
of large servicing deals, it is industry scuttlebutt that some
servicers & sub-servicers have a problem in "capturing" large pools
of loans at once, indexing them, reviewing for missing or required
documents in a timely manner. Does it really take 2-6 weeks to go
through 1000+ loans? An entire cottage business has sprung up around
these transfers, with companies such as Capsilon streamlining the process. And others assist with other functions - fascinating.
According to STRATMOR Group's annual compensation survey, STRATMOR Compensation Connection, underwriter compensation increased 15% from 2011 to 2012 and we expect that 2013 will have seen even bigger increases. In this market it is critical to pay the right amount to the right employee at the right time, and the STRATMOR Compensation Connection
is "your company's link to gain valuable insights on the market as well
as provide insight into what your competitors are paying for critical
positions and how their compensation is structured. Its unique approach
to gathering and separating data into useful profiles and relevant
categories enables STRATMOR to offer surveys based on the following
modules - Executive Management, Retail Sales Retail Fulfillment,
Consumer Direct Sales, Consumer Direct Fulfillment, TPO Sales, TPO
Fulfillment - thereby allowing you to choose your level of
participation. By participating in the survey, you will receive a
comprehensive report detailing your responses versus the survey averages
as well as segmented analysis based on key company differences and
characteristics." For more information about participating in the compensation survey, visit the program website or contact Nicole Yung at email@example.com.
are still a sticky point for some. And when the acronym "AMC" makes it
to the mainstream newspapers, you know something is up.
But the overseer of Freddie & Fannie (the FHFA) shed some light on things with the release of the "FHFA's Oversight of the Enterprises' Use of Appraisal Data Before They Buy Single-Family Mortgages."
(Read More:OIG Finds GSEs Ignored Warnings about Appraisal Deficiencies)
Peter Gallo, VP of the National Association of Independent Housing Professionals,
writes, "Rob, I noticed that you have quoted many AMCs on the appraisal
issue. The bottom line is that they are trying to do what appraisers
and lenders can already do on their own. Lenders can already figure out
who the good appraisers are and include them on an in-house rotation.
Appraisers understand appraisal issues and can advise their clients on
these issues in ways that do not violate Appraisal Independence
Guidelines. Appraisers are certified experts. They understand what the
CFPB is, what the guidelines are and have the education and the license
to prove it. AMCs serve a purpose for some and many do it very well. The
bottom line is that if you want a good appraiser, go out and find one
and pay him/her their fee. An AMC is not REQUIRED to comply with any
rules that are out there."
was nearly a month ago that the officers of three contiguous, grass
root appraisal organizations met to discuss the common goals and
concerns facing the profession. Representatives of The Virginia
Coalition of Appraisal Professionals (VACAP), The South Carolina
Professional Appraisal Coalition (SCPAC) and The North Carolina Real
Estate Appraiser Association (NCREAA) met in Greensboro, North Carolina
and discussed topics ranging from Fannie Mae's activities regarding
appraisers to the focus of The Appraisal Foundation on the profession
and the day to day business of appraising.)
On Friday the MBA's Dave Stevens let the troops know that, "Some of you have been asking about the HMDA data announcement from CFPB...
today's announcement was a stage before a proposed rule. The CFPB is
convening a small business review panel to review aspects/issues they
are considering for a proposed rule. (CFPB went through a similar
exercise for the LO Compensation rule.) We have three MBA members who
will be participating in the panel sessions. Pete Mills and Steve
O'Connor will be working with other MBA staff on a plan to get our MBA
participants prepared and briefed for the panels, and Ken Markison at
MBA is our lead subject matter expert on this issue."
Mr. Stevens is discussing is the story "CFPB Begins HMDA Revision and
Expansion Process Today," and the CFPB announced the beginning of the
rulemaking process to revise the required reporting elements, and
possibly the accompanying rules, under the Home Mortgage Disclosure Act
(HMDA). Accordingly, the Bureau announced it will convene a panel in
early March under the Small Business Regulatory Enforcement Fairness Act
(SBREFA) to discuss the proposed changes and obtain their views on the
impact from small business representatives. The fact sheet found here which provides greater detail on what the CFPB is considering.
Switching over to some investor, agency, and vendor news, first a correction. Friday I noted some information about CMG's
Correspondent Lending VA IRRRL Program. The appraisal information is
not accurate and it should have been, "...the alternative to the AVM is
the 2055 appraisal form." (Not the 2075)
Donna Beinfeld writes, "I'm not sure if you've covered this issue or not, but HUD is basically shutting down their application submission process as of March 1, 2014.
This is because they are transitioning from the paper to an on-line
(electronic) application process. Their cut-off date is 3/1 for
receiving applications. Because they will be working on their system,
they will not accept or process any applications received in the mail
until their new system is in place. The date for accepting online
Applications is May 1. This means no one can submit, be approved or have
an application processed for 60 days: .
On HUD's site page above, the following statement appears: 'Lenders
currently preparing or planning to apply for FHA approval in the near
future may contact the FHA Resource Center with questions at firstname.lastname@example.org
or 1-800-225-5342. Please include the words "New Applicant" in the
subject line and include a contact person and phone number in the email
body so that a Lender Approval representative may contact you on how to
become an FHA-Approved Lender.'" Thank you Donna!
told clients, "You may have heard about or read Fannie Mae's recent
lender letter, but we wanted to take the opportunity to highlight the
good news from MGIC's point of view. Because of MGIC's improved
financial strength, we stopped issuing insurance through MGIC Indemnity
Corporation (MIC) in September of last year. MIC is a wholly owned
subsidiary of MGIC, formed to provide uninterrupted customer service if
our risk-to-capital ratio exceeded any state requirements. The good news
is that, since the first quarter of last year, MGIC has been in
compliance with all required state capital standards. We expect to
maintain compliance going forward. To be clear, MIC is no longer
listed as an eligible insurer because it is no longer needed - not
because Fannie Mae has concerns about our claim-paying ability. As
of December 31, 2013 MGIC's preliminary risk-to-capital was 15.8:1...well
below the current state requirements. MGIC remains an eligible insurer
for both Fannie Mae and Freddie Mac."
Overland Park-based CapWest Mortgage,
a division of Farmers Bank & Trust, announced it is adding fixed
second mortgages and home equity lines of credit (HELOC) to its loan
product offering for all third party origination (TPO) clients. "People
need access to cash for a variety of reasons and most would prefer not
to disturb the low fixed rate on their first mortgage," said Monte
Robbins, President & CEO of CapWest Mortgage. "That is why it's so
important for our third party origination partners to be able to offer
equity to their customers through a home equity product offering." In
addition to stand-alone fixed second mortgages, CapWest will also offer a
simultaneous fixed second up to 90 percent CLTV in conjunction with a
purchase transaction as long as the TPO client delivers the first
mortgage to CapWest. A piggyback HELOC and first mortgage product will
also be available to CapWest's TPO clients. CapWest
reminded clients that it offers bank referral, wholesale and
correspondent services, which include on-site sales and operations
training in addition to marketing consultation. To inquire about any of
these programs, please visit www.capwestmortgage.com/tpoinquiries or contact Jake Stadler, Account Executive for CapWest Mortgage, at email@example.com.
a little, down a little, so go rates. If the employment data from
Friday is any indication of the strength of the U.S. economy, maybe
rates won't be in a big hurry to head higher. Employers added far fewer
jobs (113k) than expected in January with the prior month barely revised
up. In an interesting twist, construction added the largest increase in
jobs in almost seven years indicating the recent storm may not be as
impactful as previously thought, and the private sector accounted for
all the hiring as government payrolls fell 20,000. The unemployment rate
(6.6%) is now at a five-year low as market participation increased to
63 percent. Additionally, policy makers have made it clear that they
will not be raising rates anytime soon even if the unemployment
benchmark is met.
it is a new and exciting week! Janet Yellen, the new Fed chair, will
testify before Congress on Tuesday and Thursday. Thursday we'll also
have Retail Sales & Jobless Claims, and on Friday is the Industrial
Production and Capacity Utilization duo, along with Import Prices, and
Consumer Sentiment. In addition, there will be Treasury auctions on
Tuesday, Wednesday, and Thursday. Our beloved benchmark 10-yr T-note
closed Friday with a yield of 2.67%; this morning it is sitting around 2.67% and MBS prices are roughly unchanged.
"Athlete Without Compelling Personal Drama Expelled From Olympics"
- A member of the U.S. men's ski team was disqualified from the
Olympics today when it was learned that he did not have a sufficiently
compelling human story line to exploit on the NBC telecast of the
worldwide sporting event. Tracy Klujian, the expelled skier, was not
raised by a single mother, never had a career-threatening injury, and
did not overcome a personal tragedy of any kind before making the
Olympic ski team, U.S. Olympic officials revealed today. According to
the officials, the skier had concealed the fact that he comes from an
intact, middle-class family that never lost its home to a flood, tornado
or typhoon. "We do our best to check out all of the athletes to make
sure that their backgrounds are full of riveting human drama, but we
can't catch everything," said NBC Olympics chief Gary Zenkel. "This is a
case of one bad guy exploiting the system."