PHH joins FHA Streamline Movement; FHA Purchase Program; TBW CFO Heading for the Slammer
Don't do the crime if you can't do the time. Another ex-exec (the CFO) at
Taylor Bean Whittaker is now going to prison for five years.
Rates are great, and many indices show that home prices continue to
turn the corner. Recently the CoreLogic housing index jumped 2.4% in April,
following the upwardly revised 1.1% gain in March. This gain was the strongest
monthly return since 1976. And companies continue to try to grab market share with
BofA's, MetLife's, GMAC's, and ING's scaling back.
In Southern California Americash is looking for experienced retail loan
officers. With volume in excess of $100 million per month, the national
mortgage banker, headquartered in Costa Mesa, is looking for LO's that have an
NMLS license as well as a minimum of 2 active MLO state licenses. Americash was
established in 1998, is licensed in 19 states, has direct Fannie approval and
underwrites to DU findings with no investor overlays including HARP 2.0 (Fannie
& Freddie). Americash provides heavy internet marketing, direct mail and
exclusive inbound leads to it's LO's, combined with "advanced technology and
tremendous operations support" for it's LO's. If you know someone interested,
they should fax their resume to 866-275-9644 or e-mail it to gstrunz@americashloans .com. You
can also visit them online at www.americashloans .com.
And for something a little off the beaten path, an experienced,
well-financed mortgage-banking group is actively pursuing opportunities to
purchase controlling or full interest in an established mortgage bank with
current annual production in the $50 million to $300 million range. "Our group
will provide a minimum of $5 million injection of equity. We will provide a
strong forward and reverse origination strategy to build a national platform
with the right firm. The mortgage-banking firm MUST have minimum of a New York
state license - multi-state license is preferred - and must be DE FHA lender
and preferably have seller/servicer approval from Fannie and/or Freddie. We
would like Chase and/or Wells (preferably both) to be current approved
investors; of course other investors are also a positive. Our offer will be
based on the number of state licenses held as well as other criteria mentioned
above. All inquiries will be kept strictly confidential." Please contact Mr.
Kalin at mk@buildaforce .com or call
1-800-283-6950 to discuss further.
And, of course, we can't avoid CFPB chatter - I received this note: "The
US Chamber of Commerce held a round table. It seems that practically every
financial sector is very nervous about the CFPB. At first, under Warren we were
apprehensive but understood her vision and where they (the Agency) were going. But,
in late 2011, there was a radical climate change at CFPB as the cultures
clashed when CFPB brought over the folks from other agencies, FRP, HUD etc. The
willingness to work with industry and the respect the industry had for the
original vision of CFPB had been radically diminished in the recent months.
Cordray needs to make a radical diversion from the current course or the next
few years are going to become very adversarial and unproductive for the US
economy." Stay tuned!
joined the ranks of national lenders changing FHA Streamline policies. "Effective
immediately, PHH will no longer accept new registrations of non-PHH Serviced
FHA Streamline Refinances*. FHA Streamlined Refinance on PHH Serviced loans
will continue to be allowed. Non-PHH Serviced FHA Streamline Refinances registered prior to June 16 must
adhere to the following timelines in order to remain eligible. Tier 3: The loan
must be submitted for underwriting ('In Underwriting' status) by Monday, June
25, and it must be closed and disbursed by Wednesday, August 15. Tier 6: Loans
must be submitted for underwriting ('In Underwriting' status) by Monday, June
25. In addition, loans must also be delivered to PHH ('In Post Closing' status)
by Tuesday, July 31, and the loan must be funded/purchased by PHH on or before
Wednesday, August 15. Tier 7: Loans must also be delivered to PHH ('In Post
Closing' status) by Tuesday, July 31 and the loan must be funded/purchased by
PHH on or before Wednesday, August 15. *A non-PHH Serviced FHA Streamline
Refinance loan is defined as a refinance that is paying off a loan which is not
currently in the PHH Servicing Portfolio."
This change, and others, prompted the president of one West Coast investor to
write, "Several of our mortgage banker clients selling us FHA Streamline
products asked me what I know that the big boys don't. Rob, it is
absolutely concerning to me that our industry has truly forgotten its roots
and culture and has allowed big bank overlays to influence better decision
making. The same irrational thought parallels yesterday's commentary
on the encroaching CFPB's employment of socialistic compensation tactics.
What concerns me is the more time these things manifest, the more they're
legitimized. We need to push back on these things, hard."
In an attempt to help the liquidity of our markets, recently FHA and
HUD jointly announced the Distressed Asset Stabilization Program, allowing
private investors to purchase pools of mortgages headed for foreclosure with
the hope of bringing the loan out of default. Thousands of borrowers
severely delinquent on loans insured by the Federal Housing Administration will
be aided under an enhanced government note sale program. With this, loans
available for purchase could increase by as much as 10 times, making it easier
for borrowers to avoid foreclosure. Bringing these loans out of default helps
both the borrower and the neighborhood avoid the disinvestment and decline in
value that accompanies a distressed property. This note sales program was
originally launched by the FHA as a pilot in 2010, resulting in the purchase of
more than 2,100 single family loans to date. But what loans are eligible to
enter the pool? The borrower must be at least six months delinquent on
their mortgage; the servicer has exhausted all steps in the FHA loss mitigation
process; the servicer has initiated foreclosure proceedings; and the borrower
is not in bankruptcy. Under this program, FHA-insured notes are sold at a
market-determined price usually below the outstanding principal balance. When
the note is purchased, foreclosure is delayed for a minimum of six additional
months as the borrower gets direct help from their servicer to help to find an
affordable solution to avoid foreclosure. The investor purchases the loan at a
discount and then takes additional steps to help the borrower avoid default,
whether through modifying their loan terms or helping them through a short
sale, in order to maximize the return on the sale. The FHA's goal is to help
mitigate the negative effects of the foreclosure process as part of the
Administration's broader commitment to community stabilization. FHA eventually
hopes have the number of loans available for purchase at a quarterly rate of up
to 5,000, and add a new neighborhood stabilization pool to encourage investment
in communities hardest hit by the foreclosure crisis. And HUD will require that
no more than 50% of the loans within a purchased pool become real-estate owned
(REO) properties and that the servicer hold the loan for at least three years
if unable to bring the loan out of default. With FHA's inventory of REO
properties available for sale is at its lowest level since 2009, it is hoped
that many neighborhoods still fighting to recover from the housing crisis will
potentially avoid foreclosures and homes going into the REO portfolio.
Well, we had another Greek election Sunday. It was hoped that the outcome
will help reduce some of the uncertainty in Europe. The election featured a
conservative party which supports the EU bailout package against a radical
leftist party which opposes the bailout plan, and as polling indicated, it was
a close race. (Prior to the election, analysts said that if the leftist
candidate wins, it likely will destabilize the country and call into question
whether Greece will remain in the EU.) Given the small size of Greece, its exit
from the EU would not have a major impact on economic activity in the region.
The major concern is that once one country leaves the EU, it could open the
door for other countries to follow, which could have a destabilizing effect on
economies around the world. European issues will be with us for years.
As it turns out, Greece's center-right New Democracy won, and the party
will try to form a coalition on Monday to back the country's international
bailout after its narrow victory. As the market breathes a collective sigh of
relief, no one should get too carried away with euphoric feelings. "Greece is a
highly divided, highly volatile and deeply troubled country. A coalition
government is by no means a done deal and anything that does get formed, will
likely break quickly," as one Wall Street analyst put it.
The Federal Reserve kicks off a two-day meeting tomorrow, and the
situation in Europe likely will have a strong influence on it. With slow
economic growth in the US, a prolonged period of economic weakness likely in
Europe, and slowing growth in most emerging economies, the Fed may be more
willing to provide additional stimulus. And as we've seen, bond purchases are
one form of stimulus, which has certainly helped mortgage rates.
For the second consecutive week an ostensibly "game-changing" weekend
development in Europe has been quickly dismissed by investors (Spain's banks
and now Greece's elections). Here, besides the Fed meeting, with no change
to overnight Fed Funds expected, this week is pretty dry for news out of the
U.S. Tomorrow we'll have Housing Starts and Building Permits; Thursday we have Existing
Home Sales. Our benchmark 10-yr T-note, which closed Friday at 1.59%, this
morning is at 1.57%, and MBS prices are a shade better.
Men are like... (Parental discretion advised; Part 1 of 2)
1. Men are like weather. Nothing can be done to change them.
2. Men are like blenders. You need one, but you're not quite sure why.
3. Men are like laxatives. They irritate the cr-p out of you.
4. Men are like bananas. The older they get, the less firm they are.
5. Men are like chocolate bars. Sweet, smooth, & they usually head right
for your hips.
6. Men are like commercials. You can't believe a word they say.
(Part 2 tomorrow.)