It is well documented that “women spend more time wondering what men are thinking than men spend thinking.” Lemon Drops move over! (For those of you who don’t know, the Lemon Drops are an informal group of mortgage gals that meet up at conferences to network.) Women in the real estate financing sector have a new opportunity to connect with others in their field and to access and exchange information about the industry. The Mortgage Bankers Association (MBA) announced the launch of mPower,
a professional networking platform that aims to create "a strong, diverse
network of women" in the real estate financial industry.
Reminding us that builders, real estate brokers, and lenders can own and operate those same companies, Colorado-based real estate company Re/Max Holdings Inc. said it's starting up a mortgage company: Motto Mortgage. It will open mortgage franchises throughout the U.S. Ward Morrison, most recently Re/Max/s vice president, region operations and business opportunities, is the president of Motto Mortgage.
Switching gears to old fashioned
M&A, another day, another
merger of financial institutions. In this case Access National Corporation
(NASDAQ: ANCX) ("Access National") and Middleburg Financial
Corporation (NASDAQ: MBRG) ("Middleburg") are proposing to hook up
and create Access National Corporation. If/when it goes through the company
will rank 5th in deposit market share among
Virginia-based banks under $10 billion in assets. "The new company
projects 14.0% annual cost savings of the combined expense base, to be fully
realized in 2018, allowing for significant operating leverage in today's highly
regulated environment."
Community Bank ($8.7B, NY)
will acquire Merchants Bank ($1.9B, VT) for about $304mm in cash (30%) and
stock (70%). In Massachusetts Rockland Trust Co ($7.4B) will acquire The
Edgartown National Bank ($187mm) for about $24.5mm in cash (20%) and stock
(80%) or roughly 1.52x tangible book. In Kansas Equity Bank ($1.6B) will
acquire State Bank ($149mm) for about $24.5mm in cash (50%) and stock (50%) or
about 1.40x tangible book. The First ($1.2B, MS) will acquire Iberville Bank ($259mm,
LA) and Gulf Coast Community Bank ($133mm, FL) for about $31.1mm in cash (1.19x
tangible book) and $2.3mm in stock (0.40x tangible book), respectively. Access
National Bank ($1.3B, VA) will merge with The Middleburg Bank ($1.3B, VA).
Of course, M&A
is not confined to banks. Wilmington Savings Fund Society ($5.8B, DE) will
acquire wealth management firm West Capital Management (PA) for an undisclosed
sum in cash (100%). And we learned that WestStar Bank ($1.2B, TX) will acquire certain assets
(construction and residential divisions) from Cimarron Mortgage Capital.
Plenty of lenders are still
doing FHA & VA loans despite the moves that HUD and the
Department of Justice have made in penalizing lenders from past business
practices. Depository banks still dominate home lending, but nonbank market
share is at an all-time high. Nonbank lenders dominate the origination of
mortgages insured by the Federal Housing Administration (FHA) and by the
Veterans Administration (VA), the riskier corner of housing lending due to no
down payment or low down payment loans and poor-credit buyers. Purchase
origination loans backed by the FHA and VA have been progressively getting
higher, growing from 6 percent of all purchase loans in 2006 to 30 percent in
Q3 2016, according to ATTOM Data Solutions. Let's see what's new in that sector
of lending.
The industry
is split on FHA insurance-premium cuts. A
nonbank mortgage trade association renewed calls this week for the government
to cut insurance premiums on FHA loans, but the president of the nation's
largest trade group, the Mortgage Bankers Association, says that would be a bad
idea.
The September 30th FHA SF
Handbook update contains technical changes for consistency and clarity, and
several policy updates. All stakeholders in FHA transactions should review the
changes to the SF Handbook in the September 30thTransmittal available in
FHA's Online
Housing Policy Library. For a detailed summary of
today's SF Handbook update, read FHA's online
article.
AllRegs is offering a series of
training in the FHA world. Fundamentals of
FHA Underwriting - Begins Nov.1st and Dec.6th.
Fundamentals of FHA Underwriting consists of underwriting basics specific to
FHA, such as: borrower eligibility, property eligibility, loan limits,
mortgage transactions, mortgage insurance premiums, FHA programs and more. The
target audience would include processors, underwriters, quality control staff,
and anyone who wants to better understand the underwriting process for FHA
loans. Advanced
FHA Underwriting - Begins Nov. 1st and
Dec. 6th. The FHA continues to
evaluate their guidelines and make changes to many of their policies. Staying
up-to-date is important - in all aspects of the underwriting process. Advanced
FHA Underwriting can help you expand your knowledge and get you up to speed
quickly on FHA loans.
Intermediate
FHA Underwriting - Begins Nov.2nd and
Dec. 7th. Are you ready for the next
step in FHA underwriting? Intermediate FHA Underwriting will enhance your
underwriting knowledge and abilities by taking a deeper dive into FHA TOTAL
Scorecard requirements, and those scenarios in which a manual downgrade is
required. This course will consist of scenarios that address challenges present
in today's market. It will also include the "Red Flags" as identified by FHA.Analyzing
Alternative Income - Begins Nov. 3rd.
During this course case studies will be analyzed using the Fannie Mae form 1084
method to calculate self-employed income for Sole Proprietors, Partnerships and
Corporation owners. Class time will also be spent analyzing rental income,
pension income and income derived from retirement funds. And Underwriting
VA Loans - Begins Dec. 1st.
VA underwriting needs are on the rise. There's never been a better time to
become knowledgeable of the unique requirements and disclosures specific to VA
loans. Underwriting VA Loans provides clear instruction for those looking to
ramp up their product knowledge of VA loans.
Freedom
Mortgage Corporation "is seeing a significant
boost in its expanded correspondent program. Further gains are expected
following the addition of the Ginnie Mae PIT program to Freedom's co-issue
correspondent program, which also includes Fannie Mae and Freddie Mac. The
company's co-issue program provides another option to small and mid-tier
lenders to fit the unique needs of their business."
Ditech Correspondent Clients
should note that the requirements pertaining to the processing of the IRS
4506-T Request for Tax Transcripts have been updated. This change applies to
all Conforming, DU Refi Plus, FHA, VA products. For non-delegated clients, the
4506-T must continue to be signed and processed prior to underwriting for each
borrower whose income is documented with tax returns and is used for
qualification for the loan (self-employment, rental income, income earned from
commission, etc.). For delegated clients, the 4506-T must continue to be signed
and processed prior to closing.
Properties that contain 2 - 4
units and located in a PUD project are now eligible with Ditech. This property type is
permitted for all Conforming, DU Refi Plus, FHA and VA products that permit 2-4
unit properties.
Mortgagees are being reminded
of FHA's mandated
requirement regarding the use of the 203K calculator within the FHA Connection
(FHAC) system. The calculator must be utilized prior to endorsement for all
Standard and Limited 203(k) transactions with case numbers assigned on or after October 31st.
Plaza is updating its Wholesale
FHA Appraisal Transfer Policy. Plaza is now requiring the XML, as well as the
PDF format of the appraisal.
Ditech clients should note that
the housing payment history guidelines for FHA Credit Qualifying Streamline
Refinances have been revised.
FHA published a proposed rule
in the Federal Register to solicit public comments on proposed
requirements for condominium project approvals. The proposed rule, Project Approval for Single-Family
Condominiums (Docket
No. FR-5715-P-01), proposes requirements for
condominium project approvals that FHA believes would be more flexible, less
prescriptive, and more reflective of the current market. While the public
comment period is open for 60 days, FHA encourages all interested parties to
fully review the proposed rule and submit comments as soon as feasible.
Comments must be submitted through the formal methods detailed in the proposed
rule.
M&T Bank announced it will offer an
option to Correspondent accounts to sell VA loans without requiring prefunding
underwriting review. Instead a standard documentation audit through its loan
review team is now available.
M&T Bank rolled out VA
Delegated delivery for its correspondents. M&T still offers its
pre-purchase review for clients as well "but the Delegated option will greatly
speed up our purchase turn times."
Turning to the bond markets,
Rates aren't doing much which is fine for the folks heading home from the MBA's
conference on the East Coast. Sure there was the usual intra-day movement
between coupons and securities, but not enough to impact rate sheets and the
10-year T-note note closed 1+ higher to yield 1.76%; 5-yr notes and agency MBS
prices are pretty much unchanged from Monday's close.
This morning the staff of the
MBA rushed back to tell us the apps numbers for last week: -4%, with purchase
apps falling 7% and refis down 2%. At 8:30AM we'll have updates on advanced
goods trade and inventories, both retail and wholesale, for September. The
preliminary Markit Service PMI for October will be released at 9:45AM and then
September New Home Sales at 10AM ET. Early on we find the 10-year chopping around 1.77% in
yield and agency MBS prices roughly unchanged versus last night.
Jobs and Announcements
In job news Indecomm Global Services, a leading provider of mortgage technology, training, and outsourcing services is seeking an Assistant Director of Loan Processing/Closing. Indecomm clients include prominent top tier, mid-tier lenders, and regional lenders The Assistant Director of loan processing /closing will assist in overseeing management of the Processing/ Closing division. This position is in Charlotte, NC. The applicant must have prior managerial experience and be comfortable working in high volume and fast paced environment. Interested candidates should send their resume to HR Manager Candy Mechels.
In product news, Arizona-based AmeriFirst Financial just rolled out LOsocialbot to its entire production staff. The system runs beside their existing CRMs and other marketing systems. Rich Flanagan, VP of Sales and Marketing at AmeriFirst, noted, "We're already a proven leader when it comes to offering real-world business building tools proven by the fact that our average LO closes over 4 loans per month, nearly twice the industry average. We view this as a tool to allow LOs to deliver industry relevant content to their partners and clients thru all their social media channels with a 'set and forget it; application. For once, LO's are excited about a marketing system geared toward full compliance with their personal social media. We're already on track for over 4MM potential impressions next year making this thing a huge win for AmeriFirst." LOsocialbot auto-posts pre-scrubbed content for LO's on Facebook, Twitter google+, Pinterest and Linkedin. Contact Jason Lutz for corporate social solutions.
On the wholesale side, Home Point Financial is a national lender with an ever-expanding footprint and is looking for AEs in Virginia & Maryland, Texas, Ohio, and Southern California. "We are a mortgage banker with traditional values that have never gone away. Simply stated, it is a belief in people working with people to get the job done, which is a solid solution for AEs looking for the right fit but who haven't been able to find it! Our cultural philosophy is summed up in one phrase: 'We Care.' We care about each other, our customers, our communities, the industry and most importantly, results! We listen, collaborate, reinvent and help each other succeed. If you believe the model for success was never broken - i.e. you and your brokers thrive on communication, and a voice at the end of the phone - we would love to open a dialogue with you." Contact Paul Wyner 847-226-0179 for more details.
An established National Mortgage Bank is looking for a Call Center Manager to recruit and lead a call center team for the Consumer Direct channel. The Company is both a FNMA & FHLMC Seller/Servicer, GNMA I&II Issuer, and jumbo and non-QM lender across the United States. The ideal candidate will have 3-5 years of a call center experience with a proven track record in sales management, strategic leadership, recruitment, and cost management. All geographic locations will be considered, based upon individual candidates. Please send confidential inquires & resumes to me at rchrisman@robchrisman.com and excuse any delays in response due to travel.