What happened yesterday? Donald Rumsfeld (remember him?) sent his annual letter to the IRS, telling the agency that, because of the complexity of the tax code, he has no idea if he paid his taxes correctly.
AmeriSave Wholesale & Correspondent Lending is looking for a few good men and women! AmeriSave is recruiting AEs for its West, East and Midwest Regions. "At
AmeriSave, we support local lending. We pair technological innovation
with sensible risk management in mortgage lending in order to provide
wholesale and correspondent lending to mortgage bankers, mortgage
brokers, community banks and credit unions. Add to this formula
integrity, efficiency, competitive rates and excellent customer service,
the mortgage experience becomes our motto: Safe. Simple. Mortgages. Our
technological innovations and unique processing services provide the
local lender a much-needed avenue into high performance, high volume
mortgage lending on a local level. Our mission is to be accessible and
open in our communication with our customers. AmeriSave's loan
performance is outstanding. This exceptional performance is the basis
for pricing advantages with investors and mortgage insurance companies.
It also translates into a no-risk advantage for our lending partners.
AmeriSave has a full range of secondary market mortgage products, is a
Fannie/Freddie and Ginnie approved lender and a national Full Eagle
Direct Endorsement with FHA. A sales background in wholesale/correspondent lending, mortgage insurance, or agency work is preferable. Qualified individuals should submit their resume to resumes@amerisave. com.
"utilizes the most advanced technology to maintain its extraordinary
level of customer satisfaction while adhering to its mission to process
loans from application to closing in 30 days or less. How does this set
Supreme apart? Supreme
combines its innovative web based paperless process and automated
underwriting systems with a team of IT individuals passionate about
thinking outside of the box to create unique software solutions. This
coupled with an atmosphere of proactive teamwork and communication,
allows for the consistent delivery of its best-in-class service to both
customers and associates alike. The Company's dedication to technology,
high quality customer care, and unbeatable support are often cited by
tenured Branch Managers and Loan Officers as key ingredients for their
enduring success in the marketplace." Learn more about Supreme Lending's Retail Branch opportunities and become part of this dynamic forward thinking team here, or e-mail recruiting@supremelending. com.
And to meet growing demand in its licensed states, Stonegate Mortgage is hiring established retail Mortgage Advisors and Managers to build territories. Please follow the link to read more about the positions and about Stonegate Mortgage. Stonegate
Mortgage originates, finances, and services agency and non-agency
residential mortgages through its network of retail offices and approved
third party originators. It also provides financing through its fully
integrated warehouse lending platform, NattyMac. "Operational
excellence, financial strength and commitment to customer service and
technology have positioned the firm as a leading provider in the
emerging housing finance market." Interested applicants should apply
through the Stonegate Mortgage Careers Page.
People who study mortgage lending and trends continue to ruminate on the Wells Fargo and Chase numbers from Friday.
JPM's mortgage origination volume was down 27% QOQ and 68% YOY and
mortgage application volume was down 17% QOQ and 57% YOY. Both closings
and application volume came in somewhat weaker than expected. One
positive point of note is that retail applications were down 7.6% but
correspondent was down 26%, so it looks like the company was giving up
some share in the correspondent channel. Wells Fargo's QOQ mortgage
volume was down 28% but applications were down 7.7%.
gain-on-sale margin came in at 172 basis points, down from 212 bp last
quarter. Wells Fargo's gain-on-sale margin was down somewhat more
modestly to 1.61% from 1.77%, a 9% decline - probably closer to the
overall industry. The value of the JPM's MSR (mortgage servicing rights)
declined to 106 bp which was 2.86x the servicing fee from 118 bp which
was 3.11x the servicing fee at the end of 4Q. The equivalent numbers for
WFC were 85 bp of 3.15x the servicing fee compared to 88 bp or 3.26x in
4Q. What does it all tell us? Nothing that the smallest lender isn't
seeing: residential lending volume is down, margins are slimmer, it is
tougher to make a loan, and lenders may not be able to count on
servicing to beef up their balance sheets. Are we having fun yet?
today's MBA applications numbers for last week will help them a little.
Apps were up 4.3%, with refis up 7% and purchases +1%. Refis accounted
for 52% of apps, and ARMs are still 8%.
Borrowers in Hawaii, unfortunately, woke up to a story that many of them may have been a victim in yet another scam.
what we need: more advocacy groups to track. Here's the latest on
special interest groups taking sides over the still breathing, and
relatively healthy, corpus of Fannie and Freddie.
Yesterday the commentary contained some information on the differences between "business purpose" and "consumer purpose."
("...There are roughly five primary factors that must be considered in
order to determine business purpose from consumer purpose...") I received a
well-thought out not from Julia Wei, an attorney with Peter N. Brewer.
"We have litigated this issue frequently on behalf of private lenders
in defending against borrower claims that the loan was a 'consumer' loan
and they should have received a TIL disclosure, along with other
alleged violations of consumer statutes. As defined by Title15 of the
United States Code Section 1602(h), "consumer" refers to transactions
where the loan proceeds are used primarily for personal, family or household
purposes. The code section further goes on to state in Section 1603(1)
that extensions of credit for primarily business, commercial or
agricultural purposes are exempt from TILA. [See also Regulation Z §
226.3 (a)(1).] The Ninth Circuit had applied a multi-factor test, which
was derived from Federal Reserve Board interpretation of 12.C.F.R.
Section 226.3(a)(1)(1983). [Thorns v. Sundance Properties (9th Cir. 1984) 726 F.2d 1417.] The Ninth Circuit considered all five of the factors you noted in your column."
Ms. Wei's note continued. "The most on point case in California applying the Thorns factors is that of Weber v. Langholz.
In this 1995 case, the borrower, Ms. Weber, was a 89 year old widow
living on Social Security and investments. She borrowed $160,000 and
secured the loan with her primary residence. She then used the proceeds
to buy coins. When she defaulted on the loan, she sued her lender
claiming that the lender had violated TILA and failed to give her the
notice of the right to rescind. The lender argued that TILA did not
apply because the investment of the loan proceeds in coins was not
'primarily for personal, family, or household purposes.' The Weber Court evaluated the factors enumerated in Thorns
and noted that the borrower had invested nearly $600k in coins, that
the loan amount of $160,000 was very large and she personally managed
her investment funds. The Weber Court held the Truth in Lending Act did not apply because the loan was for a business purpose and exempt. [Weber v. Langholz
(1995) 39 Cal. App. 4th 1578, 1583-1584.]" Thanks Julia! If you'd like
to reach her at The Law Offices of Peter N. Brewer, write to Julia@brewerfirm. com or read the company's blog.
the Tri-State mortgage conference last week I had the opportunity to
spend some time with Jennifer Squillante, a client manager with B2R
Finance L.P. out of Manhattan. It turns out that B2R, besides being hard to type, will offer loans to individuals who have dozens, or hundreds, of properties. "We lend primarily upon the value and cash flow of the underlying collateral. We do not review the personal debt to income ratios of our applicants." I am not going in to all the details - you can contact Jennifer directly at jsquillante@b2rfinance. com
- but once again we are seeing capital in search of yield going around
or outside the QM box for loans and borrowers that make sense.
Continuing on with some relatively recent lender and investor updates...
Mountain West Financial has
aligned its guidelines on a number of topics with that of the Agencies,
including not considering divorce as a Qualifying Event for FHA Back to
Work, calculating stocks/bonds used as reserves as 70% of the vested
value, and not allowing real estate agents to provide closing cost
other guidelines have been updated as well; LTVs of up to 125% are now
allowed under DU Refi Plus, LTVS of up to 80% will be permitted for
Conventional cash-out ARMs, and the 10% borrower cash investment
requirement for VA manufactured home transactions has been removed.
has rolled out a new procedure that allows transactions to be
underwritten and receive a full Credit Approval without the borrower
having chosen a property, which is available for purchase transactions
under all products, programs, and occupancy types. Brokers
can create a file to submit to underwriting that lists the address as
"123 No Property" and then, once a property has been selected, submit a
new 1003 with the address and updated Details of Transaction.
for all Conventional, FHA, and VA transactions that use ConformX
through DocuTech, MWF is allowing the submission of electronically
signed Initial Disclosure packages. Lenders
are reminded that investor restrictions prohibit electronic signatures
on the Final 1003/Uniform Residential Loan Applications, and originators
are still required to wet sign.
Impac is now licensed and accepting loans in the state of Vermont.
In order to keep its correspondents up to date on CFPB regulatory changes, PHH has published an FAQ document in the CFPB Resources section of the SOAR website. The most recent version of the document can be accessed here.
is now allowing late fees to be included in the new loan amount for
FNMA DU Refi Plus HARP transactions on the condition that they appear on
the payoff statement for the original loan. These
are the only fees associated with the existing loan that may be
included in the new loan amount, as FNMA does not allow the inclusion of
unpaid returned payment charges, escrow shortages, or recoverable
are reminded that Freddie does not permit late fees to be included in
the new loan amount for Relief Refi Open Access transactions.
At New Penn Financial,
a foreign national does not need a social security number. A valid
passport and visa are required with no minimum length of stay. Visa
Waiver programs are acceptable too.
are some stats proving that markets sometimes tend to move more on
surprises versus expectations than on economic trends. The Fed announced
the 1st reduction to its asset-buying program (i.e., quantitative
easing - QE) on 12/18/13. The $10 billion reduction in monthly purchases
(from $85 billion to $75 billion) was widely expected to result in
higher interest rates. The yield on the 10-year Treasury note closed at 2.83% on 12/17/13. The
yield on the 10-year Treasury note closed at 2.62% last Friday on
4/11/14. Rates have actually dropped this year in spite of QE being
National Association of Home Builders Housing Market Index was below
expectations at 47 in April versus a projected 50. While builders were
"expecting sales prospects to improve in the months ahead" said NAHB
Chairman Kevin Kelly, Chief Economist David Crowe observed there were
headwinds facing both potential buyers and home builders: ongoing tight
credit conditions and limited availability of lots and labor.
market didn't do much Tuesday, so I won't waste your time discussing
small moves in MBS prices or the 10-yr. yield (which closed at 2.63%).
We should keep in mind, however, that global events overseas certainly trump any kind of minor economic news that is scheduled for the U.S.
But there is some news out today: mortgage applications (noted above,
up about 4%), March Housing Starts and Building Permits, March
Industrial Production and Capacity Utilization, and the 2PM EST release
of the Fed's Beige Book (with riveting economic anecdotes from the 12
Districts in preparation for the April 29-30 meeting). In the early going today the 10-yr is sitting around 2.65%, and agency MBS prices are worse a shade.