COFI Primer; Agency Stock Drama; Upcoming Events Including Bowling and Breakfasts
Any lender that is closing more loans than a year ago, or has a larger pipeline, should be proud of themselves.
The Mortgage Bankers Association said its seasonally adjusted index of
mortgage application activity fell 3.1 percent in the week ended May 30.
The MBA's seasonally adjusted index of refinancing applications fell
2.9 percent and the purchase number dropped 3.6 percent.
(Read More: Mortgage Applications Slightly Lower; Possible Holiday Effects)
The drama of Freddie and Fannie continues.
Sure, GSE reform is pretty much dead as far as Congress is concerned
due to political gridlock, but there is plenty of excitement about who
owns their stock. Activist investor Carl Icahn acquired about $51
million in the common shares of mortgage financiers Fannie Mae and
Freddie Mac from mutual fund manager Fairholme Funds in March. Icahn is
known for taking big stakes in companies and pushing for management
change, and now owns 6.8 million common shares of Fannie Mae and 5.7
million common shares of Freddie Mac. He joins the Pershing Square hedge
fund, run by another activist investor, Bill Ackman, which invested
half a billion dollars to acquire stakes of nearly 10 percent each in
Freddie and Fannie. Fannie Mae and Freddie Mac posted profits of $5.3
billion and $4.0 billion, respectively, for the three months that ended
March 31 - but much of that was from income from lawsuit settlements.
speaking of money to be made from settlements, the US government is
alive and well and its activities are best summed up in the WSJ story
about it pursuing money from companies.
"U.S. housing officials, fresh off billion-dollar settlements with bank
giants, are zeroing in on smaller lenders...Now, they are probing smaller
banks' mortgage lending and loan servicing in the run-up to the
financial crisis, the government official said. Specifically, as part of
continuing civil investigations detailed in banks' public filings,
federal agencies are looking at whether several lenders submitted to the
Federal Housing Administration loans that failed to meet underwriting
standards. The FHA is the government mortgage-insurance agency that
absorbs losses when borrowers default."
and warrants certainly influence who might owe what. Who likes stagnant
agency reps and warrants? Not me, ask anyone, they'll tell you. So it
was with much joy on May 12th that I read an email informing me that Freddie Mac, along with Fannie Mae, announced in Single Family Seller/Service Bulletin 2014-8
that it is making a number of significant enhancements to the selling
representation and warranty framework introduced in 2012. The recent
enhancements include: relaxing
the acceptable payment history requirement for determining when a
Mortgage is eligible for relief from the selling representations and
sellers with written notice of mortgages that have met the eligibility
requirements for relief from the selling representations and warranties,
introducing an additional path for eligible Mortgages to obtain relief
from the selling representations and warranties. In addition to the
payment history path, Sellers will also obtain relief from the selling
representations and warranties if there is a satisfactory conclusion of a
Freddie Mac quality control review of the mortgage. Version
1 of the framework is effective for Mortgages with Freddie Mac
Settlement Dates on and after January 1, 2013 and before July 1, 2014.
Version 2 of the framework is announced in this Bulletin.
And to continue with Agency catch-up, on May 16th Fannie Mae updated their delinquency management and default prevention policies. The announcement, in Servicing Guide Announcement SVC-2014-07, states that for a borrower who submits a completed Borrower Response Package (BRP)
or incomplete documentation 37 days or less prior to a foreclosure
sale, the servicer must explain its plans for evaluating the borrower
for a workout option and suspending the foreclosure sale in the BRP
acknowledgement notice. Also, the servicer is encouraged to work with
borrowers who submit incomplete documentation to obtain a complete BRP
but is not required to send an Incomplete Information Notice. Fannie Mae
is eliminating all Servicing Guide requirements related to a
substantially complete BRP, and thus servicers need no longer postpone
foreclosure due to the receipt of a substantially complete BRP.
The Minnesota Mortgage Association has its June breakfast meeting on the 17th - check it out! You never know who might show up...
Integration is around the corner. Learn what you need to know about RESPA-TILA integration in Los Angeles on July 23. MBA is offering this deep dive,
led by industry experts, is designed to help you master and implement
new requirements and accompanying forms, going into effect on August 1,
2015. These courses are filling up fast, so register today to reserve
your spot. Early registration, before June 21st, MBA member fee $500. Standard registration member fee after the June 21st registration date is $650. Nonmember fee is $1250.00.
The OMBA will be conducting a 3-part, in-depth class, to give your staff the knowledge and training needed to effectively understand, underwrite, originate and process VA loans. VA Loan Underwriting Training Webinar
scheduled for June 6, 13 & 20, 2014, 12:00 pm - 3:30pm. The cost is
as follows: OMBA Members $449 per person and Non-members $499 per
In Maryland, dust off your bowling shoes and get ready for Happy Hour! MMBA is hosting its 1st Annual Bowling Social on June 12th.
Get your team together, or just come bowl individually! We will have
snacks and sodas, cash bar all night. Happy Hour followed by a fun
evening of bowling! MMBA Members - $25 individual or $115 team of up to five, Bring a guest at the member rate. Future/Non-Members - $35 individual or $125 team of up to five. For more information Email: info@mdmba. org.
Near San Francisco, Real Live is coming to the Greater East Bay. Real Estate Agents are invited to this FREE live event hosted by Todd Duncan, NY Times best-selling author. This event will be held Thursday, June 12th from 9:00am - 12:30pm at San Ramon Marriott in San Ramon; CA. Seats are limited to the first 250 agents.
Registration for the 2014 Housing Summit on September 15th and 16th
in Washington D.C. is here. This 2-day event will focus an in-depth
look at the key challenges in housing and explore solutions. Hundreds of
private sector experts, elected officials, academics, and housing
practitioners from across the country will be gathering with the
nation's leaders in housing policy to contribute to the center of
housing policy debates. Cost to attend both days is $495.
For companies originating ARM loans, how about a little primer on COFI?
With 30-yr rates around 4% and the percentage of adjustable rate
mortgage applications running at less than 10%, we're not in an ARM
market quite yet. But indices continue to change, the most recent being
COFI. Last week the Federal Home Loan Bank of San Francisco announced
that the 11th District Monthly Weighted Average Cost of Funds Index
("COFI") for April 2014 is 0.682%. The index for March 2014 was 0.701%.
"The COFI is computed from the actual interest expense reported for a
given month by the Arizona, California, and Nevada savings institutions
members of the Bank that satisfy the Bank's criteria for inclusion in
the COFI. For April 2014, 14 eligible institutions reported COFI data.
Changes in interest rates on adjustable rate mortgage loans offered by
many financial institutions are tied to changes in the COFI."
a nice caveat. "Although the Bank makes a good faith effort to be
accurate in the calculation and publication of the COFI, the Bank does
not warrant, confirm, or guarantee the accuracy of the data it receives
from its COFI Reporting Members, the accuracy of the COFI calculation,
or the accuracy of the COFI as published. The Bank does not examine the
books and records of its COFI Reporting Members for the purpose of
confirming the accuracy of the data they deliver to the Bank used to
calculate the COFI, and the Bank expressly disclaims all liability that
may arise from any use of the COFI or the use of inaccurate data
received from its COFI Reporting Members in calculating the COFI. In
addition, the Bank expressly disclaims any liability to any person for
any inaccuracy in the COFI, regardless of the cause, or for any
resulting damages." "For additional information and disclosures about
the calculation of the COFI, removal of a COFI Reporting Member, and
other matters concerning the COFI, visit the Bank's website."
Which was is the economy going? It seems to be grinding along - but yesterday's auto and truck numbers from the last period showed sales hit a 9 year high!
That must indicate something. Factory Orders were up .7% in April. And
sure enough, Treasuries sold off, as did agency MBS, again Tuesday, and
the signs of a slight pick-up in those parts of the economy. The 10-year
Treasury note was down/worse .5 in price, closing at 2.59%, and prices
on agency MBS worsened about .250-.375 on average.
is a new day, of course, with all kinds of economic numbers including
ADP for May (a measure of employment not including government
hiring/firing - it was up 179k, below forecasts), preliminary Q1
Productivity (-2.6) and Final Sales (+4.8) at 8:30 AM, May ISM
Non-Manufacturing (55.5) at 10 AM, and 2PM's Fed release of the Beige
Book in preparation for the June 17-18 FOMC meeting. Soon after the ADP
number the 10-yr is at 2.58% and agency MBS prices are a shade better.
In the retail LO hiring sector, Aspire is expanding. "Tired of working to fund executives' luxury cars and second homes? Aspire Lending
turns that paradigm on its head. 'It's not about 50 people reporting to
me,' says Steve Barton, Aspire's EVP of Production. 'The way I look at
it, I report to them.
As a leader at Aspire Lending, it's my job to earn the loyalty of our
associates every day.' If you're looking for an organization that puts
you first, it's time to join the Aspire Revolution." Email Steve at firstname.lastname@example.org for more information.
Private Mortgage Insurance company Genworth Financial is seeking an experienced Account Manager in its Dallas Texas territory.
Candidates should have exceptional customer interaction skills as well
as a proven track record of sales execution and leadership. The person
hired will be expected to provide the highest level of internal and
external customer service, manage customer relationships and develop
growth strategies for assigned accounts, develop calling plans to cover
all assigned accounts, monitor branch volume and calling activity and
take necessary actions to achieve account volume goals. The ideal
candidate will have 4+ years of experience in a regional or territorial
sales role, have a college degree or equivalent industry/sales
experience, great presentation and communication skills, and have the
ability to work flexible hours with occasional overnight travel.
Candidates should contact Kristin Miller at Kristin.Miller@genworth.com for a complete job description and/or visit Genworth.
And "are you ready for your optimal career? Join us." SaaS provider Optimal
Blue is expanding its sales team and is currently looking for
successful Business Development Managers in the following regions
Southeast, Northeast and Mid-West States.
Positions are available for Optimal Blue Enterprise Lending Services,
Product Eligibility. Business Development Managers are responsible for
developing new customers and accounts in the designated market/region.
The ideal candidates will have a proven track record of business
development (ideally B2B) in the mortgage or technology industries. Optimal Blue
is a cloud-based provider of managed-content, product eligibility,
pricing (PPE), secondary marketing, point-of-sale and compliance
technology and services. Based in Plano, Texas, Optimal Blue has
developed an enterprise class suite of products and services designed to
automate a lender's complex processes, improving efficiency and
profitability while gaining a competitive advantage. For a complete job
description, or to send your confidential resume, contact email@example.com.