people in the mortgage industry tend to look to the future. But
sometimes aging mortgage folks get together and play the "Whatever
happened to..." game - often at conferences when they run into people they
haven't seen in year. This website, in its May 1 post, may answer
several of those questions regarding IndyMac, Mike Perry, OneWest, etc.
Turning to something a little more forward-looking, as Franklin
American Mortgage celebrates its 20th anniversary the company is
looking for licensed mortgage loan originators and branch managers
who exemplify its mission of providing the unparalleled service that
has made Franklin American Mortgage an industry-leader. With branches in
23 states and growing, Franklin American Mortgage provides an excellent
opportunity for seasoned loan originators to become even more
successful. Please visit whyfamc.com or e-mail Jennifer Rader at jrader@franklinamerican. com for
more information. Franklin American Mortgage is FHA Direct Endorsed
(DE), VA Automatic and LAPP Approved, FNMA/FHLMC and GNMA approved
And on the products side, Advantage Credit is excited to announce that it can now offer Advantage's Undisclosed Debt Notification (UDN) service from all three credit bureaus. This
service is designed to monitor a borrower's credit profile throughout
the entire closing process helping to ensure a smooth
closing. Undisclosed Debt Notification is an invaluable tool in
complying with the Fannie Mae policy update (announcement SEL-2010-01, Selling Guide Updates for the Loan Quality Initiative)
as well as preventing those last minute surprises on a borrower's
credit profile. Now, with the ability to provide these notifications
from all three bureaus no credit dings will slip through to hinder the
closing process. When turned on, the Undisclosed Debt Notification
service will be available for up to 120 days with a 60 day look back
period to see if anything has changed in the borrower's credit profile.
This service coupled with Advantage Credit's Comparison Report, which is pulled the day before closing, will help safeguard against any last minute issues. To learn more, contact sales@advcredit. com.
The wholesale market is alive and well. Steve Samuelson (steve@nrpros. com) from Network Recruiters
writes, "We have been surprised by the number of wholesalers in the
market and the increased hiring activity on the employer
side. Wholesalers offering all three channels are highly sought after by
seasoned AEs, and they are telling us what we all assumed: straight
wholesale accounts are dwindling, mini-corr and especially delegated
correspondent accounts are the future for AEs. AE volume is down
nationwide and $5 million per month seems to be a good number right
now." (In response, Network Recruiters
has recently expanded its Wholesale Recruiting Platform by adding new
wholesale recruiting contracts and offering our clients more career
options. We are proud to work with many of the top Wholesale Mortgage
Banks in the country. Since 1997, Network Recruiters has helped
candidates find their first AE positions, upgrade and ultimately reach
sales management & executive positions in the industry. Network is hunting for candidates for wholesale positions
in Northern California, Northwest Regional Manager, Texas Regional
Manager, Area Sales Manager positions available in the Northeast,
Midwest and Southwest, and Mini Correspondent, Correspondent and
Wholesale Account Executive positions nationwide.)
Group not only reported its net income for the quarter ended March 31,
2014, of $202.8 million (compared to a net loss for the quarter ended
March 31, 2013, of $187.5 million), but threw in a little "bonus treat"
for good measure. Radian also announced that it has entered into a
purchase agreement to acquire Clayton Holdings, a provider of
"outsourced solutions" to the mortgage industry. (I am not smart enough
to know exactly what that means, but I bet it sounds catchy talking to
someone at the bar.) Radian Group will pay aggregate cash consideration
of $305 million, which includes repayment of Clayton's outstanding debt.
Seriously, with 700 employees Clayton is no slouch: last year it had
revenue of $135 million and net income of $9.1 million. (Darned
expenses.) After the transaction is complete, Clayton will become a
subsidiary of Radian Group, therefore cash flows from Clayton are
expected to provide an unregulated source of funds to Radian Group: http://www.clayton. com/.
What does Mel Watt have to say about the FHFA's core mission? Here you go. It is worth a skim, and perhaps some can read between the lines about his opinion of Freddie & Fannie.
mission of the Agencies is very important, and impacts the entire
nation, but what unfortunately grabbed headlines was that Richard
Hornsby - the chief operating officer of the Federal Housing Finance
Agency - might face a felony charge after he allegedly threatened Ed
DeMarco - the former acting director - last week. Per the WSJ, he "was
charged last Wednesday with one felony count of threatening to kidnap or
injure a person, according to court records. He was ordered to stay
away from the FHFA and from former FHFA acting director Edward DeMarco,
who retired from the agency last week, according to court records.
Apparently Mr. Hornsby didn't like his job performance ratings. Okay,
let's move along - nothing to see here (I hope).
Let's keep on with some investor and agency updates. But first, there sure is a lot of chatter about 3% down payment loans.
I guess with housing appreciating, no one worries about 97% down
payment loans anymore? TD Ameritrade is out there with its program for
low- and moderate-income borrowers via its Right Step program, per the
WSJ. (The program is reserved for borrowers who earn up to 80% of the
median area income as determined by HUD, doesn't require private
mortgage insurance, it is a portfolio product, and the 3% supposedly can
come in the form of a gift from family or a non-profit. What the heck?)
Arlington Community Federal Credit Union in Virginia is rumored to be
next, and let's not forget Wells Fargo's retail program that requires a
five percent minimum down payment for primary residential purchases but
allows up to two percent of that to come in the form of a gift from
before every LO out there is calling their Capital Markets folks,
remember that the prices are higher, and underwriting tougher, for all
And Vanguard Funding
is offering "common sense lending" for commercial loans $500k-$5MM for
multifamily, multiple properties, non-owner occupied, small mixed use,
and commercial properties nationwide. "Prior foreclosure, bankruptcy,
behind in taxes, are all workable, as well as claims of liberal cash
out, reasonableness about asset and reserve requirements and options for
30-year amortization to help with debt service ratios." For information
on the company visit www.vanguardfunding. net or contact Stephen Schoffman at sschoffman@vanguardfunding .net.
The recently launched correspondent channel of AmeriHome Mortgage Company, LLC
continues to grow and is preparing to roll out two unique loan programs
available only through AmeriHome; Core Jumbo ( 5 year ARM with I/O
option up $2.5 million) and Expanded Guidelines (maximum LTV 83%, 600
credit scores, loan amounts to $1 million). AmeriHome offers Agency
products with minimal overlays, competitive pricing, delegated
underwriting, a very experienced, client focused operations team and a
streamlined loan acquisition process. Interested correspondent lenders
can contact Chris Maturo at chris.maturo@amerihomemortgage. com or John Hill at john.hill@amerihomemortgage. com or visit the AmeriHome website to learn more.
expanded its Government guidelines to permit FICOs down to 550 on FHA,
VA, and USDA. On FHA purchases, 90% LTVs will be allowed for FICOs as
low as 550 and 96.5% LTVs will be allowed for scores down to 580. FHA
cash-out refis are available for LTVs up to 85% on FICOs down to 550 as
has expanded their eligibility requirements on Fannie and Freddie
products. All standard conventional loan programs will now allow
LTV/CLTV's up to the agency maximum limit(s) with a minimum 620 FICO and
AUS Approval. They have also released Freddie Mac Arms: 5/1 (2-2-5);
7/1 (5-2-5); 10/1 (5-2-5).
Penn has launched state based pricing for both Wholesale and
Mini-Correspondent transactions. 11 zones are currently capable of
announcing state specific pricing promotions and regional trends. You
can check out rates for California, Florida, Illinois, Maryland, New
Jersey, Nevada, New York, Pennsylvania, Virginia, Washington, and all
other states. For additional clarification, contact your Account
United Guaranty is
now considering loans with gifts/grants that satisfy the minimum
borrower contribution and property flips where the seller has owned the
property for less than 180 days to be eligible for RAP submission.
Guidance on ARM interest rate adjustment periods, ARM caps, Balloons,
and Bi-weekly mortgages has also been added to allow for Non-Agency
products to be submitted as well. Requirements for condo investor
concentration, construction-to-permanent loans, and renovation mortgages
have been revised to align with Agency guidelines, and the UG guide now
includes a clarification of DU and LP tolerance.
Cole Taylor Mortgage (CTM)
announced their position on tax returns and 4506T requirements. For
non-self-employed borrower's 2013 tax returns when the 4506T shows no
record found, as long as the borrower(s) W-2s and paystub(s), with
current year-to-date earnings, and the income is consistent with prior
year earnings, no additional information will be needed. CTM will
require the most recent two (2) years of tax transcripts available. For
all self-employed borrowers, CTM will require either their 2013 tax
returns or evidence of their extension.
HUD Secretary Shaun Donovan announced last week that HUD will speed federal disaster assistance to the state of Arkansas
and provide support to homeowners and low-income renters forced from
their homes following severe storms, tornadoes and flooding. HUD
is offering the State of Arkansas the ability to re-allocate existing
federal resources toward disaster relief; granting immediate foreclosure
relief; making mortgage insurance available; making insurance available
for home rehabilitation; and offering Section 108 loan guarantee
First Community Mortgage has
clarified its credit guidelines for Conventional transactions to
consider single or aggregated non-payroll deposits or VOD variances in
amounts that exceed 25% of the borrower's gross monthly income to be
large non-payroll deposits. For self-employed borrowers, the monthly
qualifying income will be used for gross monthly income. For FHA and VA
transactions, single or multiple aggregated non-payroll deposits or VOD
variances that total more than 2% of the purchase price will be
considered large non-payroll deposits, while any non-payroll deposits
and/or VOD variances above $100 will require documentation and an
explanation for all THDA and RD loans.
was an exciting day. Okay, maybe not that exciting. But we had a little
rally (the 10-yr T-note improved about .125, and agency current coupon
MBS improved a shade more) which is fine. It continues to be of great
interest to many that the forecasters pretty much agreed that rates were
heading higher this year. Rates are down on the year - but that could
change in a matter of days. The
Fed's tapering off of its asset purchases is already priced into the
market; what are not priced in are events overseas and indications here
in the States that our economy is merely grinding along.
we'll have testimony from Federal Reserve Chair Yellen on "The Economic
Outlook" before the Joint Economic Committee beginning at 10AM EST.
Maybe we'll learn more about what the Fed might do when it stops buying
MBS and Treasuries. And let's all chip together and buy a chunk of the
$24 billion 10-year Treasury note auction at 1PM EST. Ahead of that, in
the early morning we'll have the MBA's app numbers as well as
preliminary Q1 Productivity (-1.0 expected) and Unit Labor Costs (+2.5).
Yesterday the 10-yr closed at 2.60% and in the early going we're at 2.58% and agency MBS prices are a hair better.