Zelman & Associates
invites readers to join them for an informative conference call to
discuss their outlook on the housing market and mortgage environment TODAY, Monday, March 3rd at 2:00 pm EST.
Ivy Zelman and her team deliver unique and data-intensive research
across housing and have been consistently recognized for their
industry-leading analysis. Join Zelman on their upcoming call to gain an
insightful view on what is happening in housing and the implications
for the mortgage landscape, including a discussion of demographics, the
outlook for new construction, home prices and much more, as well as
learn how to receive their research free of charge. Notably, with the
mortgage market's shift to purchase dominance, Zelman's focus on
homebuilding and related sectors provides a valuable perspective for
lenders. The conference call can be accessed by dialing 1-877-234-0285 with the passcode 139842. The presentation for today's call can be accessed by clicking here.
In Maryland, the mortgage bankers spread the word to about joining its panel presentation on "Getting the Pulse on Compliance" on Thursday, March 6th
at the GBBR Office in Timonium, MD from 3-5PM. Moderated by Judy Blank
of Apex Home Loans, she will be joined by Laurie Bennington of 1st
Mariner Mortgage, Margie Corwin of Gordon Feinblatt, and Ari Karen of
Offit Kurman to discuss topics related to the implementation of QM, CFPB
enforcement and liability, Surprises and Nuances, and Futurescape of
compliance." Register here.
commentary had a quote, "Every day, excess capacity is being wrung out
of the system, and every day will bring us closer to a balance of supply
and demand in the mortgage industry." I received this note: "In a fair
and balance world (that comment) is absolutely correct. But when the
government intervenes to develop a disparately imbalanced system that
favors the larger well capitalized institutions over the smaller
industry competition, it is not market forces causing the wringing out
of capacity, but is instead the government."
are a little (or a lot) farther removed from being able to be used to
pay for mortgages, or anything, now. The exchange in Tokyo filed for
a note echoing a lot of thinking out there: "Hi Rob, if one considers
the recent headache/concerns from the government regulators regarding
the rapidly-increasing size of the big non-bank servicers, combined with
seeming to be a bit of a drag on Fortress's PE portfolio of late, would
it be reading too much between the lines to think that Fortress might
be getting close to exiting its Nationstar Mortgage investment? If
that happened, would we see the most likely scenario being something
along the lines of them dividing the company into pieces and selling
them off to other players?" I can definitely see that happening IF there
is an alternative that earns more of a return for the venture capital
funds. And it might mean the individual portions thrive. As long as the
expected return is greater than the perceived risk, they'll stick
around. I am certainly hearing of funds slicing and dicing, based on
their interest in certain portions of a business - Wall Street has a
sizeable reputation doing exactly that: taking a company and splitting
it up if the corresponding portions are worth more than the original
entity. Here is more on Fortress.
Speaking of "worth", last week Freddie Mac reported $8.6 billion in net income for the fourth quarter and a $48.7 billion profit for 2013.
The mortgage company is poised to send $10.4 billion to the Treasury
Department this month. Freddie Mac CEO Donald Layton warned observers,
however, not to expect the firm's income to remain on this path. "These
levels of income are not sustainable. Several legacy items were very
strongly favorable in 2013, but it is our expectation that the peak of
recoveries from the recession has now been passed," Layton said. But
still...remind me why Congress would want to dish off the gravy train?
A quick note about appraisals and ECOA:
"We've heard from many lenders and AMCs with concerns about compliance
with the new ECOA Valuations Rule that took effect on January 18th. The
industry has focused on the "when" of sending those appraisals to
borrowers, but we've seen several companies make a critical mistake on
the "HOW" of that mandate. If the lender or AMC is sending the report
electronically, they have to get some acknowledgements from the borrower
before they send the appraisal for download. We've just published a white paper
that describes this pretty succinctly, and we have a tool to automate
that process for any lender or AMC at only 50 cents a throw. Here's the
link to the white paper anyone can download for free that gives a good
overview of the regulations and how to comply."
Turning to recent investor & lenders...
is one of the hottest times for home purchasing and
remodeling/renovation. The FHA 203(k) renovation mortgage is a great
program for the purchase market and a fantastic opportunity to increase
Realtor business. Freedom Mortgage can show you how to help
Realtors sell more homes utilizing the FHA 203(k) program. Freedom's
Renovation Lending Division is a highly trained and experienced group
that specializes in the 203(k) program; providing personalized, in-depth
training and support in all phases of renovation lending.
Correspondent DE lenders have the "Freedom to Choose" their draw
processing option with the MVP program. To find out more about how to
enter this lucrative market and offer a sound program to serve your
Realtor base, contact Freedom's Renovation Lending Division at firstname.lastname@example.org.
Provident Funding will be allowing decreases to the current uniform broker compensation level as of March 1st and will be accepting change requests until the end of business on February 27th.
Brokers who wish to decrease their uniform comp level should open a
case to the branch and request their new lower comp level, specify which
state the change applies to, and stipulate a March 1st effective date.
Glen Corso, National MI's
General Counsel, published an article recently titled "New GSE
Requirements for Private MI's" on National Mortgage News blog and he
explained the benefit the new Master Policies will provide to lenders.
has announced that three firms recently joined the company (via asset
purchases): Arizona's Sun State Home Loans, Nationwide Direct Mortgage
in California, and Arbor Mortgage in Michigan. The three firms have more
than 50 employees combined and represent more than $500 million in
annual loan production volume.
Redwood Trust has
made a number of underwriting updates, including raising the maximum
LTV/CLTV for all ARM and 15-year amortized products from 75 to 80% and
allowing second home purchases, rate/term refinances, and cash-out
refinances of co-ops. With regard to risk assessment, borrowers who do
not meet the three trade line requirement will be considered eligible if
they have six months additional reserves and the loan has a DTI below
35, LTV below 65%, or FICO above740; and first-time homebuyers' payment
shock may not exceed 250% when deposits and gifts are verified with the
borrower. The additional LTV requirements for multiple financed
properties have been removed, and condo projects with less than 10 units
will be permitted provided that they are typical for the area and the
appraisal shows similar comparables. Hobby farms will also be permitted
if the property has between 10 and 20 acres, does not have any
income-producing attributes, and has a land to value ratio of 35% or
FirstBank Mortgage Partners rolled out a scholarship program for its borrowers.
Fifth Third has
improved its float down pricing adjustment from -.625 to -.500 for
standard lock options of 15-75 days and will be requiring an upfront fee
for all extended locks, effective immediately.
immediately for both new applications and those in the pipeline, Fifth
Third is requiring that all individual condo transactions in Special
Flood Hazard Areas be covered by a master flood insurance policy that is
maintained by the HOA. The coverage must protect the interest of the
individual borrowers holding titles as well as the common areas of the
project. For attached units, the master flood insurance policy should
be at least 80% of the replacement cost or the maximum insurance
available from the NFIP standard of $250k per unit, while the components
coverage should equal 100% of the insurable value of all contents owned
in common by HOA members. Detached projects may follow the guidelines
for 1-4 unit properties.
The U.S. economy continues to gradually move forward.
Hey, if it went too fast, rates would shoot up, and who wants that?
Friday we learned that consumer's confidence in the U.S. improved in
February from a month earlier as more consumers grew optimistic about
the outlook for the economy. Pending home sales were essentially
unchanged in January, according to the National Association of Realtors.
And Gross Domestic Product (GDP) grew at a revised 2.4% rate in 4Q2013,
compared with the 3.2% preliminary rate released a month ago. GDP grew
at a 4.1% rate in 3Q2013. The ISM Chicago business barometer was up
slightly in February.
week offers up a full menu of freshly baked economic releases. Today
will be Personal Income and Consumption/Spending, Construction Spending,
along with a series of Personal Consumption Expenditure numbers.
Tomorrow is ISM; Wednesday will be the usual ADP numbers ahead of
unemployment Friday. On Thursday are Jobless Claims, a Challenger Job
Cuts figure, and Factory Orders. On Friday we'll have the trade balance
figures which will be outshined by all the employment data: unemployment
rate, nonfarm payrolls, and hourly earnings. On a relative basis,
Friday the 10-yr closed at a yield of 2.66% and in
the early going today we're at 2.60% (MBS prices appear better by .250
to .375) due to tension in Ukraine causing a flight to quality.
Spend about 60 seconds learning about the newest refi plan - it's a classic. Hey, no gnarly closing costs!