your HP 12c - here's some math magic. Take 259, multiply it by your
age, and then multiply that by 39. You'll see an interesting result.
(Kids, an HP 12c is an iPhone-sized thing that does calculations and is
HP's longest and best-selling product - but you had to punch in the
numbers yourself rather than say them out loud.) While we're on the
topic of numbers, a CNBC survey of CFOs at major companies finds cybersecurity actions
they have taken compared to Feb 2015 include: audited or tested
existing infrastructure (92%); replaced or upgraded existing hardware or
software (85%); initiated new IT protocols (81%); increased size of IT
staff (73%); developed or amended corporate response plans (46%); and
purchased cyber insurance coverage (42%).
have four more days to close loans in 2015, most which are TRID loans.
So some of them will be closed in January 2016 as lenders, fearing the
worst regarding fines, unsaleable loans, and vague UDAAP violations that
will appear years from now, do what they can to adhere to the correct
procedures at the expense of customer service.
and Fannie find themselves in the thick of this, of course. As a
reminder both have put out notices on the TILA-RESPA changes (Fannie, Freddie), and remember that FHA does as well. (If you have questions about whether or not correspondent investors are also going along with this, ask them.)
But what garnered the most attention in recent weeks was the FHFA's release of its 2016 scorecard for the GSEs
(Government Sponsored Enterprises - namely F&F) and Common
Securitization Solutions (CSS) - especially since their activities will
impact rate sheets.
new scorecard mandates that the GSEs prepare for the expiration of HARP
(end of 2016) by creating a new high-LTV refinance program that will be
implemented in January 2017. (Yes, over a year away - but these things
take time.) They are also being instructed in implementing "Release 1"
of the Single-Security Initiative in 2016. Freddie Mac will start to
utilize the Common Securitization Platform (CSP) to perform activities
related to its single-class, fixed-rate securities. No Single Securities
will be issued under this phase of the program.
2018 we can expect to see "Release 2" of the Single-Security Initiative
implemented. Both Fannie Mae and Freddie Mac will start to issue Single
Securities and commingled re-securitizations.)
are also expected to transfer the credit risk on at least 90% of the
UPB of single-family mortgages acquired in 2016 for 30y fixed-rate,
non-HARP loans with LTVs greater than 60% (so-called "targeted loans")
and explore ways to transfer credit risk on other types of single-family
mortgages outside of this "targeted loans" category. Along those lines
Freddie & Fannie will explore ways to expand the investor base for
credit-risk transfer transactions.
FHFA is requiring that the GSEs further increase access to credit for
borrowers by removing impediments that may be preventing qualified
borrowers from obtaining a loan. Supporting this objective, the GSEs are
to enhance their rep and warranty frameworks by completing an
independent dispute resolution process for lenders who do not believe
that their loans have breached the GSEs' rep and warranty policies, as
well as provide lenders with feedback on the quality of their loan
originations shortly after the loans have been sold to the GSEs.
markets folks are most interested in the single security news. "Release
1" is scheduled for 2016 and "Release 2" (the actual introduction of
the Single Security) is scheduled for 2018. The scorecard requires that
the market be notified of the precise implementation date of the Single
Security at least 12 months in advance so that stakeholders can prepare
for the change. The FHFA will also develop a process to evaluate new or
updated GSE policies that may affect prepayments and buyouts on TBA
mortgages, as well as monitor issuance and prepayments between the two
agencies to alleviate concerns by some investors that with the
introduction of a Single Security and the ability to deliver either
Freddie or Fannie pools into the same TBA deliverable.
response to the Federal Housing Finance Agency (FHFA)'s 2016 Scorecard
for Fannie, Freddie, and Common Securitization Solutions, U.S.
Mortgage Insurers (USMI) has said it will continue to be committed to
working with FHFA and the GSEs on steps to increase the amount and
levels of credit risk transferred
and to take greater advantage of the benefits of front-end risk
sharing. Lindsey Johnson, President and Executive Director of USMI
stated, "After three years of largely back end risk sharing
transactions, the time is right to move forward with a more balanced
The American Bankers Association has renewed its endorsement of Freddie Mac's secondary mortgage market solutions.
ABA's partnership with Freddie Mac will allow member banks to utilize
solutions that provide improved access to credit and enhanced pricing
and mortgage products. Bryan Luke, chairman of ABA's Endorsed Solutions
Banker Advisory Council stated "for more than decade, our alliance with
ABA has helped its members create more opportunities for borrowers and
realize new possibilities for their businesses."
in December Fannie Mae updated its Servicing Management Default
Underwriter (SMDU) tool to support a recently announced policy change
that helps its servicers provide foreclosure prevention help to
additional borrowers. Read the news release to learn more.
What have top lenders and investors been doing in the conforming conventional channel recently?
Flagstar Correspondent has suspended its My Community Mortgage product line(s).
Wells Fargo has suspended its MyCommunity product line(s).
My Community products are no longer offered in various pricing engines
but, for example, in the Optimal Blue system will be available for 90
days for secondary users.
Freedom Mortgage is offering the Fannie Mae HomeReady Mortgage Program (Fannie Mae HomeReady program replaces the MyCommunityMortgage program which is no longer being offered). The Fannie Mae HomeReady Mortgage Program gives qualified Borrowers with low to moderate income more options to obtain an affordable mortgage.
The Fannie Mae trading desk spread the word that HomeReady is available for committing and delivery.
Lenders can commingle standard and HomeReady loans into MBS pools and
whole loan commitments. HomeReady has no separate whole loan committing
product/pricing grids. Refer to the HomeReady product matrix for more information.
Effective Dec. 10, Plaza will accept locks and loan submissions for Fannie Mae's HomeStyle program. Refer to Plaza's HomeStyle Program Guidelines
for complete requirements. In the coming weeks Plaza will be providing
training for the HomeStyle Program. Plaza has also added Fannie Mae's
HomeReady program to its product line. In addition to HomeReady, Plaza's
programs have been updated to incorporate the enhancements offered in
DU 9.3. These changes are effective immediately for loans approved under
DU 9.3 on or after Dec. 14, 2015.
Pacific Union Financial
has updated numerous guidelines. For instance, due to Fannie Mae
delivery requirements, loans using the higher LTV/(H)CLTV limits may not
close prior to December 21, 2015. Adjustments to its Jumbo Series O
include cash-out proceeds to be received at closing are not an eligible
source of funds. Rate-Term Refinance Guidelines were updated to reflect
that the property value for the transaction is based on the current
appraised value, regardless of length of ownership. Freddie Mac's
announced enhancements effective with submissions or resubmissions to
Loan Prospector (LP) on or after December 14, 2015: the
occupying borrower will no longer be required to contribute at least 5%
of the down payment from their own funds when the LTV exceeds 80%. All
funds for the transaction, including reserves, may come from the
occupying borrower and/or non-occupying co-borrower.
Fannie Mae High Balance 95% LTV is available at HomeBridge Wholesale. Recent updates include 1 year of tax return to qualify.
As of December 12, 2015, Caliber Wholesale
has adjusted their LTV/CLTV/HLCTV requirements to 95% for high-balance
loans underwritten through DU. This is a result of Fannie Mae's recent
decision to revise high-balance overlays and replace them with a new
policy that requires all high-balance loans to be underwritten through
Caliber Home Loans announced its LPMI adjustments for loan amounts over
$417,000 have been reduced to 0.000. In addition, beginning Saturday,
December 12 will adjust its LTV/CLTV/HLCTV requirements to 95% for
high-balance loans underwritten through DU. Click here to view more information on Caliber's products.
conventional matrices have been updated to reflect the changes with the
Fannie Mae DU 9.3 release the weekend of December 12, 2015. The changes
impact High Balance eligibility requirements, Non-Occupant Co-Borrower
policy changes and the new HomeReady product that will replace My
Community Mortgage which is being eliminated.
Effective immediately for conforming LP approved loans, PennyMac is aligning with Freddie Mac updates announced in Bulletin 2015-20. The highlights of the announcement are here.
As of Monday, December 14, Arch MI's
EZ Decisioning and Standard programs was updated to reflect its
alignment with recent Fannie Mae announcements regarding Fannie Mae's
HomeReady affordable program. A summary of the changes is available on
its Credit Risk Bulletin #3-15-NR.
based on FNMA's announcement to postpone the implementation of the new
policies on qualifying income for self-employed borrowers, is postponing
the implementation of the corresponding underwriting requirements
announced in the lender alert dated March 20, 2015 until further notice.
Sun West will continue to monitor and provide further notification
regarding the new underwriting requirements.
Based on the 2016 loan limits increase in some counties for both FNMA/FHLMC loans as well as FHA, NewLeaf Wholesale
will accept applications at the higher loan limits for FNMA/FHLMC
products effective immediately. A manual lock process will be required
until January 1, 2016.
our collective gaze to rates, does anyone remember, or care, what the
bond market did last Thursday morning? As expected not much has happened
to yields after the well-forecast Fed tweak of short term rates, and we
closed the 10-year at 2.24% on Christmas Eve. And frankly there isn't
much else to move rates this week in the U.S. There is no scheduled news
today; tomorrow will be the Trade Balance numbers, October Case-Shiller
20-City Index, December Consumer Confidence, and a 5-year T-note
auction. Wednesday will be November Pending Home Sales & a 7-year
Treasury auction. Thursday - New Year's Eve, will have Initial Jobless
Claims and the December Chicago PMI.
has been pretty quiet, market-wise, around the world during the last 72
hours. (Of course here in the U.S. we've seen the terrible toll from
the weather in many parts of the nation.) As mentioned we had a 2.24%
close on the 10-year Thursday and this morning we're unchanged on it and close to unchanged on agency MBS prices.
With the holidays upon us, I would like to share a personal experience with my friends about drinking and driving.
you know, some of us have been known to have brushes with the
authorities from time to time, often on the way home after a "social
session" with family or friends.
two days ago, this happened to me. I was out for an evening with
friends and had more than several whiskies followed by a couple of
bottles of rather nice red wine and vodka shots. Although relaxed, I
still had the common sense to know I was slightly over the limit.
when I did something I've never done before - I took a bus home! Sure
enough on the way there was a police roadblock, but since it was a bus
they waved it past and I arrived home safely without incident.
was a real surprise to me, because I had never driven a bus before. I
don't know where I got it, and now that it's in my garage I don't know
what to do with it. So, anyway, if you want to borrow it give me a call.
Jobs and Announcements
Jordan Capital Finance is hiring a Senior Vice President, Business Development.
The primary focus will be generating business from third party
channels, with an emphasis on mortgage bankers and brokers. "JCF
provides private money financing for investors who buy, renovate, sell,
and rent residential real estate.
We offer lines of credit up to $7.5M and lend in 40 states. We do not
lend to home owners. JCF is extremely well funded by Garrison Partners, a
premier New York private equity firm, and is on an aggressive growth
path. We are a top 5 lender in our industry and we've closed $150
billion in mortgage volume. The SVP must have at least 7 years'
experience and must have a proven track record of exceptional sales
success and relationships with mortgage bankers. The position requires a
very strong work ethic and travel; college degree preferred. The SVP
will receive a competitive salary, but a very substantial portion of
compensation will be incentive based. Chicago based candidates
preferred, but East Coast and Texas will be considered. The candidate
reports to the CEO. Questions and resumes can be sent to Magdalena Pyclik."