HUD is recommending that Fannie Mae tweak upward its affordable housing goals for 2018-2020. The news prompted one industry vet to send, "Although this specifically mentions 'affordable housing,' people who don't remember history are doomed to repeat it. Don't forget what happened when the government started pushing agencies and investors to do things that resulted in going outside of their underwriting and policy comfort level just to increase ownership."

In legal news, California's Prospect Mortgage Co. has agreed to pay $4,157,000 to settle allegations that it defrauded the DE program. The alleged civil fraud was carried out against the Direct Endorsement Lender Program, which is administered by the Federal Housing Administration and U.S. Department of Housing and Urban Development. Prospect acknowledged that in two branches in Georgia and North Carolina, it endorsed for FHA insurance loans that were not originated in compliance with HUD requirements and falsely certified that the noncompliant loans were underwritten in accordance with HUD requirements. (It isn't Prospect's first settlement - back in 2011 the company had another.)

Upcoming events/training

PRMG Wholesale, who is continuing its nationwide growth and is looking for motivated and experienced outside account executives nationwide, is also holding a Career Fair 7/17/17 at their corporate location in Corona, CA for various position from Operations to Inside Account Executives. PRMG Wholesale recently released their next generation TPO Portal that now allows features such as drag and drop, enhanced Quick Pricer along with (OCR) Technology that read documents within seconds. PRMG also offers a wide-range of loan products including Conventional, FHA, VA, USDA, DPA, and 2nd liens. Voted No. 1 of the 50 Best Companies to Work for in America 2015, No. 1 Best in the Desert 2017 and TOP 25 of 100 Mortgage Companies in America! PRMG employees over 1,400 employees and licensed in 47 states. RSVP TODAY for this exciting career event! Emailcareerfairs@prmg.net or contact Michelle Evans, PRMG National Talent Acquisition (951.547.6396).

If you're near New Orleans July 10-11 (is that already just next week?), visit the Ultimate Mortgage Expo at the Hotel Monteleone. 

The VA will be in Kentucky providing training for Processors, Closers, Underwriters and Loan officers. Thanks to Mortgage Bankers Association of Kentucky (MBAKY) registration is available for the following dates and cities:July 18- Bowling Green, July 19 - Louisville and July 20 - Lexington.

On July 12th, join Jim George for a webinar and learn if your organization meets the new requirements for HMDA reporting under the final rule issued by the CFPB from former regulator's perspective.

Fannie Mae's new on-demand eLearning course, Fannie Mae Flex Modification, is now available. The course covers Flex Modification eligibility, terms, trial period plan, and how to complete a modification. It also describes the servicer's responsibilities in implementing Flex Mod and retiring Standard and Streamlined Modifications, as well as impacts to the Disaster modifications. Visit the Single-Family Training page to access this course and other resources.

July 16-19 is the NAWRB 4th Annual Conference, Women's Collaboration for the Future. The NAWRB Annual Conference will highlight actionable solutions to increase women's gender equality in the American workplace.

July 30-August 1 is the CoreLogic Risk Summit. The focus will be on innovation and transformation - all designed to provide you with the intelligence and insights you need for your business to thrive. 

State-level changes

South Carolina has enacted provisions related to mortgage lending licensing, effective September 18. The act defines a "loan correspondent" and requires a person seeking a license must, in addition to all other requirements, have satisfactorily completed pre-licensing education of at least twenty hours, including a minimum of three hours on South Carolina laws and regulations. License applicants are also subject to a national criminal record check, supported by fingerprints, by the FBI.

SC also amended Regulation 15-64 to comply with the S.A.F.E. Act and with rules issued by the CFPB, effective immediately. The NMLS&R unique identifier of the Mortgage Loan Originator must also be placed on the Promissory Note or Loan Contract and the Security Agreement as well as any other documents required by 12 CFR 1026.36(g). The Mortgage Call Report required by Section 37-22-220 now specifically must disclose "all residential mortgage origination and/or servicing activity conducted in the state of South Carolina."

Board of Financial Institutions and Department of Consumer Affairs announced that it will both implement the Uniform State Test (UST) for their state-licensed Mortgage Loan Originators (MLOs) on September 16, 2017. Accordingly, beginning on that date the BFI and DCA will no longer require a separate state-specific test to be taken by MLOs seeking licensure.

The Georgia state legislature recently passed House Bill 221, effective July 1, enacting the Uniform Power of Attorney Act. Power of attorney is defined by the regulation as "a writing or other record that grants authority to a person to act in the place of an individual, whether or not such term is used." Anyone interested in power of attorneys should read the various Articles.

The Georgia state legislature passed House Bill 143 relating to the regulation of financial institutions. The bill revises statutory provisions governing most of the entities regulated by the Department - banks, credit unions, trust companies, bank holding companies, money service businesses, and mortgage lenders and brokers - as well as certain provisions addressing the Department's general powers. It empowers the Department to issue stand-alone trust company charters; permits all trust companies that are chartered out of state to act as a fiduciary in Georgia; limits the ability of credit unions to accept uninsured deposits; eliminates the requirement that the Department approve all fixed asset investments by credit unions; enables credit unions to purchase whole loans from a financial institution; and increases the required bond amount for mortgage brokers and mortgage lenders.

Louisiana has passed Senate Bill No. 236 which amends, reenacts and sets forth several provisions relating to recording fees, recording standards, the maintenance of recorded documents, and the electronic recording of documents. 236 also amends and reenacts Code of Civil Procedure Article 258(A) authorizing recorders to adopt and implement a plan, to be published, which provides for the acceptance and filing of electronic records of any instrument which would otherwise be recordable (excepting original maps, plats, property descriptions, or photographs related to the practice of land surveying). These provisions are effective on August 1.

Arkansas modified its regulations regarding fraudulent transfers and voidable transactions. These provisions are effective on August 1 or 91 days after adjournment of the current legislative session. The term previously known as "Fraudulent Transfers" was amended to read "Uniform Voidable Transactions Act." The definitions section was updated to include a definition for electronic, meaning "relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. Under the regulation, value is given if the property is transferred, but the value does not include an underperformed promise made otherwise than in the ordinary course of the promisor's business to furnish support to the debtor. The regulation has expanded default of the debtor from not only a mortgage, but now also includes a deed of trust or a security agreement.

Capital markets

After five days of rates moving higher, in varying degrees, yesterday we had a tiny "relief rally" after May's factory order growth missed expectations, oil prices declined, and the FOMC minutes showed some indecision on the committee about the timing for unwinding the Fed's $4.5 trillion balance sheet. Yes, the big news was information from the last Federal Open Market Committee meeting. There were varying opinions about import price moves, inflation, low market volatility, and a change in reinvestment policy. (Several preferred to announce a start to the process within a couple of months while some others emphasized that deferring the decision until later in the year would permit additional time to assess the outlook for economic activity and inflation.) And so on Wednesday the 10-year note price improved .125 and closed yielding 2.33%; agency MBS prices also improved about .125.

This morning the "pro-reflation trade" is persisting, and thus the higher rates. We've had mortgage applications stats from last week (+1.4%; purchases +3%). Of more interest to rates we've also had June Challenger Job Cuts (31k, lowest of the year), the ADP employment report (158k, slowing, and below expectations), the May international trade deficit ($46.5 billion), and weekly jobless claims (+4k to 248k). Coming up are some numbers of secondary importance: Markit Services PMI and the ISM Non-Manufacturing PMI. Rates are currently higher versus last night's: the 10-year is currently yielding 2.37% and agency MBS prices are worse .125-.250.

Jobs and Announcements

Due to client demand, third party risk software and outsourced services company, Venminder, has announced the launch of a new service where it can analyze your vendors' policies to ensure they are in compliance with both the regulatory guidance and best industry practices. If you're interested in learning more about this service, email Steve Greenfield, Director of Third Party Risk. "Steve has over 20 years of experience in the mortgage banking industry, and having sat on your side of the table brings a great amount of insight on all topics vendor management related. You can also request a sample of this analysis report here. Venminder takes a very proactive approach to helping educate executives on the topic of third party risk. Every week they create fun and free educational resources, including eBooks, infographics, webinars, whitepapers and more." If you're interested in downloading some of their content, you can visit this page where they've put together a list of their Top 10 free resources.

In personnel and job news, Sierra Pacific Mortgage is excited to welcome Rick Bargioni as Vice President of National Operations. Based out of the corporate office in Folsom, CA, Mr. Bargioni will be responsible for the strategic direction and operational execution of retail, wholesale, correspondent and consumer direct operations practices. "Sierra Pacific Mortgage is a highly-respected company. Their 30+ year history is a testament to their leadership and dedication to quality service," Rick said, "I look forward to bringing my knowledge and experience to our operations teams and working to ensure a positive mortgage experience for our employees and clients!"

"Revolutionize your business with Workway On Demand. While contract underwriting is not new, our approach is dramatically different and better! Our underwriters are your underwriters! Everything about the role, work product and quality is the same as if they were your full-time employee - they work remote and you only pay for files underwritten. Utilize our ODS Underwriting talent and eliminate all the costs of a full-time employee! You assign their work and we pay them. They work in your LOS, follow your guidelines, workflow and communicate directly with you. On Demand talent offers originator's an opportunity to optimize your current operation AND improve your customer service at the same time! Cut underwriting & approval times to hours instead of days. Improve UW productivity without sacrificing quality or increasing risk. Double or triple your 'approved' file output per day without adding one new employee! Subscription plans are designed to meet your production & budget requirements. Access your pre-selected community when you need them." For additional information or a demo, please contact Dan Sussman.

PRMG Retail continues its growth path with the opening of 3 new branch locations during the month of June! Along with the drive and ambition to bring the American Dream of Homeownership to all cities across the country, PRMG has now opened its doors in Marathon, FL, Sebastian, FL, Irving, TX and Spokane Valley, WA. "PRMG is devoted to growing our retail platform and is always looking for Motivated Loan Originators to support our mission to being 'Progressively Better in All that We Do.' Voted No. 1 of the 50 Best Companies to Work for in America 2015, No. 1 Best in the Desert 2017, NMP Visionary Organization and TOP 25 of 100 Mortgage Companies in America! PRMG employs over 1,400 people!  If you're ready to join a top-tier team and company then we need to talk!" Contact Chris Sorensen at 909.262.0452.

Congrats to the group of regional hires brought on at First California Mortgage Company (First Cal), along with a new lending office in Fort Lauderdale, Florida serving the Sunshine State, Georgia and the Carolinas. First Cal's new office and regional managers include Bruce Lazarus, (branch manager, Florida), John Warnock (SE Regional Production Manager), Steve Samuelson, Regional Production Manager for the Pacific Northwest and Northern CA), Budd Malchus (Area Sales Manager, North LA), Joe Kolesar (Regional Production Manager, South Central Region), and Chris Martin (Regional Production Manager, So Cal).