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on Fri Aug 18 2017, 1:49 PM
Good article Matt. You obviously know the ground on which you are walking.
on Fri Aug 18 2017, 10:52 AM
Thank you ! I will share and pass it along
Jeff Statz
Chief Loan Officer, Mortgage Statz
on Thu Aug 17 2017, 5:05 PM
Lots of valuable material here! Thanks for the informative article, Matt.
on Thu Aug 17 2017, 4:43 PM
Great article! Something I've always been meaning to write... thank you for sharing!!
Ted Rood
Senior Loan Officer , MB Financial Bank
on Thu Aug 17 2017, 4:32 PM
Great info, Matt. This is a perfect piece to pass on to borrowers in the divorce process.
John Paul Mulchay
Sales Manager, Guaranteed Rate
on Tue Aug 8 2017, 5:36 PM
How about the Treasury let them keep their profits so they have increased capital reserves and phase out the conservatorship model?
on Wed Aug 2 2017, 6:18 PM
It was 1993 when Bill Clinton issued an Executive Order to lenders telling them to used "creative financing" including zero-down interest only ARMS, for people with poor credit and no down payment money in order to make it easier for them to buy homes, or face federal discrimination charges. Do we really want to go back to that?
Michael Gannon
Vice President, United Northern Mortgage Bankers Ltd.
on Wed Jul 26 2017, 12:52 PM
Rob what do you see most mortgage bankers grossing margin wise excluding LO comp on conventional or FHA loans?
on Wed Jul 26 2017, 10:40 AM
But investors lost their pants. Obama hoped to do same with the Banks, by giving them TARP money. if they fail to repay, put them in conservatorship, or nationalize them. Viva Socialism!
on Wed Jul 26 2017, 10:34 AM
But investors lost their pants. Obama wanted to do the same with all the banks, giving them TARP money hopping they never repay, and than put them in conservatorship, or nationalize them. Viva Socialism.
on Tue Jul 25 2017, 10:23 AM
So Ally is going to match a one man Broker Shop grossing 1.5bps per loan??? I highly doubt it
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Jul 14 2017, 1:17 PM
Agreed. I made a few edits for you. Thanks for the feedback.
on Fri Jul 14 2017, 8:49 AM
Please get competent authors or use editors before posting articles. This is full of typographical errors, incorrect language usage, and confusing sentence structure.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Wed Jun 28 2017, 12:03 AM
My pricing today didn't reflect MBS' full losses today, the real question is what tomorrow's rates will look like!
Ted Rood
Senior Loan Officer , MB Financial Bank
on Wed Jun 28 2017, 12:01 AM
I can certainly see paring off Fannie's multi-family business, but further splitting their single family portfolio sounds like a sure recipe to increase overhead. How much more would be spent on management, administration, and facilities, and how would that overhead benefit consumers?
on Tue Jun 13 2017, 4:05 PM
Why not bring the fees paid to appraisers in line with the fees paid to fellow professionals while holding appraisers to the same rigorous and strict standards that other professionals are held to and require professional organizations to police their membership, especially those whom the organizations have designated as senior members, ASA and MAI for example. RICS has its registered valuer program in which the appraiser will be disciplined and removed from membership for egregious and unprofessional behavior. The applicant to the registered valuer designation must assent to the terms and conditions of RICS oversight as a contractual obligation prior to the application being reviewed. The problem with the American organizations is that the designations have become paper certificates that are of no worth to the appraiser's clientele as there is no third-party oversight of the appraiser's behavior by the sponsoring organization. If you study the Senate Banking and Finance Committee hearings in the Mid-1980s into the Freddie Mac 41B rule you will find that the professional organizations looked the other way. You would have thought licensing would have forced them to clean up their act. It hasn't and I have first-hand knowledge of it. I have also been told by clients that designations mean nothing as there is no real difference. So, pay us properly for the work we do and do not force us into half-pay sweatshops such as MetroWest, DS Murphy, Assurant, RELS etal. In exchange, demand from us report quality as befits a professional. As for the 'cash buyer' it may behoove regulators to vett the source of the buyer's cash. Respectfully, Steven Davis MRICS, Registered Valuer
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Fri Jun 9 2017, 1:21 PM
FHA generally allows to 47% front end...not much more then the conventional at 45% front end maximum, but it is something!
on Mon Jun 5 2017, 6:04 PM
Yeah, as far as I know, 45% front-end is max with just about any program.. 50% is definitely referring to back-end ratio.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Fri Jun 2 2017, 4:27 PM
I can't help but think the 10 yr bond yield is going to stay over 2.50 for a time along with a higher mortgage rates, and in no time at all I am proven wrong! I guess we should leave the bond yield direction and speculation on short term and long term rates to you Matt!
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Fri Jun 2 2017, 4:20 PM
I always inform people "do not use Zillow''s automated estimate to determine the value of your home." It often is not on par with a proper evaluation. Perhaps they could change their system but it never was designed as a substitute for either a realtor familiar with the area's sales or an appraiser's evaluation of value. Maybe they could eliminate it altogether. You can look at recent sales comparisons on Zillow and should be able to get a better idea from those what the value of your home may be. As a mortgage advisor & loan officer I search for recent sales via Title Companies' search engine and can get pretty decent idea: usually within $50,000. As a seller you should be able to get an accurate idea of value thru an experienced realtor. It is their job to know the current sales market for your home valuation.
on Wed May 31 2017, 3:01 PM
Can we clsrify the DTI reqyirement? Is this for front end only? If so, what wilk the backend ratio be?
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Thu May 18 2017, 11:59 AM
The fact that refinancing during that time was at least as much to blame as risky purchase loans and sloppy underwriting, seems to be the forgotten part of the mortgage lending industry's share of the economic crisis of 2008. That more than 80% of fannie mae or Freddie mac refinances were cash out refinances tells part of the story of the high risk involved. That people at the top failed to notice or refused to notice what was happening is what makes most rational people who went through those times realize certain regulations need to be in place and enforced.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Thu May 4 2017, 1:10 AM
It's not April 1, but thought for a minute it might be when I read of Nationstar's, uh, "creative" strategy to rebrand to "Mr. Cooper". Are they frantically recruiting male loan officers named Cooper, to complete the transformation?
Ted Rood
Senior Loan Officer , MB Financial Bank
on Thu May 4 2017, 1:07 AM
"Tight inventories" is the key. When there's more buyers than sellers, prices rise. In this case, can add "vastly" before "more", and "rapidly" after "rise."
Ted Rood
Senior Loan Officer , MB Financial Bank
on Thu May 4 2017, 1:04 AM
Wish my clients could find houses to buy, a sentiment all loan officers and realtors likely share. Have numerous buyers, motivated, realistic, and well qualified, but they're finding multiple offers, over list price, for homes they like. Great time to be a seller, not so much a buyer.
on Tue May 2 2017, 6:27 PM
Get NJ on the band wagon. They have prevented me from buying a house because they never credited my payments for 3 months. Why ? because I did not write the loan number on the check. I have lost many properties because of their error which they refuse to admit guilt. Appraisal fees lost, application fees lost, deposits lost. They also made me sell the property way below market value because they were threatening to foreclose meanwhile sending all letters to the wrong address. I am out so much money because of them. Some one needs to get them to pay up to the people whom they ruined their lives.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Thu Apr 27 2017, 1:20 PM
Most of us who have been around for awhile know the tax reform plan is too radical for many politicians tastes. What Congress ultimately comes in to agreement with the President will seem somewhat radical in view of what we have had in place, for the most part, for many years. However, it is hard to imagine a sufficient number of republicans are going to vote for a tax plan that clearly will increase the deficit dramatically. It goes against everything they preach. Then, we have a President who clearly agreed that the very wealthiest including himself, should be taxed at a higher rate....until he got elected!
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Thu Apr 27 2017, 12:57 PM
OK, I do not know about any of you guys, but I attended a CA State University 1975 on, at $90/semester and a community college just before that for free. It is the one other thing that Bernie said, besides promoting single payer health care, I would have to agree with. I think a lot of Mellennials agree..."free stuff, yes!" Now that our government has graciously assisted thousands upon thousands of students with these student loans to pay for far higher costs than I could have imagined back in the day, do we leave them hanging with often a lifetime of debt they can never seem to pay off? I or my younger brother (who had board and room at a UC campus for an "unbelievable" price by today's standards) could never have imagined the cost in proportion to what the average parent could help out with, and a part time low paying job. Student loans were all ready being made back then, and my brother for whom Dad paid for his board and tuition. took out a student loan to cover pot, beer and miscellaneous expenses a student might have. It was small enough and decent paying jobs were plentiful enough back then that he paid the loan back in a few years time. OK, maybe free college is too far from what could ever be agreed to other than maybe community colleges, but we could lift that burden from many of our Mellennials, & others. In fact they can apply for loan consolidations and reduced payments now, though many still may end up paying on their student loans until they are old and gray. As banks have forgiven debt with offering short sales to underwater and over financially burdened homeowners, what could be wrong with working with each former student that might be struggling, and forgiving at least some portion of the debt and/or reducing payments and making the loan interest free?
on Wed Apr 26 2017, 11:08 AM
I seen this both ways in my 20 years. I have seen people with 10-15 year old student debt, but that $900 a BMW payment was more important. Many of these do have the means to pay these back. They just treat them like yesterdays leftovers. Yes, now there are some that are really in a pinch, however I think this has become more political than factual in the past few years.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Mon Apr 24 2017, 1:27 PM
The more immediate issue with tax reform is that it will (might/could) juice equities markets at the expense of bonds. Jury's out on long-term inflation risk due to money-printing. So far, not as scary as billed.
on Mon Apr 24 2017, 12:04 PM
With the level of government regulation in the industry it's amazing that this stuff is still going on and the regulators either don't care or don't know. As far as I'm concerned Ocwen malfeasance has been well known in the industry for 10 plus years - why does it take so long for the regulators to notice?
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Thu Apr 13 2017, 12:26 PM
corrected. Thanks!
x x
on Wed Apr 12 2017, 12:17 PM
typo in the 2nd word of the article.
on Mon Apr 10 2017, 10:18 AM
The fact is that on time rental and utility payments are the BEST proof of ability to maintain a mortgage as they demonstrate that the renter/buyer not only has the ability to pay but also the dedication to make it a top priority. The NACA system does not use credit scores at all and has one of the lowest default rates in the entire mortgage industry.
on Wed Apr 5 2017, 12:23 PM
Since when is this going to be in effect? Consumers should have their fingers crossed...
on Wed Apr 5 2017, 11:48 AM
This will make it so more people have lower credit if you count utility bills. Credit scores play a small part in mortgages? Since when?
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Mon Apr 3 2017, 1:48 PM
I would not want the right of private lenders to decide on their own specific overlays to be removed by the FEDs as long as it meets current legal standards, even for government insured loans. Generally federally chartered banks have always been considered to be among the most conservative of lenders and also not a bad place at all for one to have their cash reserves held. I am not sure that deregulating banks to sell insurance, investments, etc. was necessarily a good thing. However, drawing up their own lending criteria while adhering to current laws ought to continue. If it becomes a problem that every direct lender is ignoring current minimum qualifying requirements from FHA and VA then maybe a solution to the problem needs to be found. However, there are direct lenders who have more lenient underwriting requirements simply because many banks choose to keep in place overlays they feel are more in line with their underwriting philosophy and practice. It provides more opportunity for other lenders. "Lenders are assured that they will be held responsible, under their representations and warrantees, only for errors in underwriting a loan, not for whether the borrower defaults on it." It is wonderful to have a 580 minimum requirement for an FHA or VA loan, but it does not necessarily mean I do not work with borrowers to still increase their scores for a better rate & better pricing. However, sometimes they need to buy NOW, or refinance NOW for one reason or other and you originate and close a loan if you can!
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Mon Apr 3 2017, 1:18 PM
Anyone who has been originating mortgage loans successfully for a long time understands why appraisers have to go inside a house being appraised and measure it. The public records do not always accurately show the proper measurement. If there is substantially more square feet in the appraiser's measurement, then is it allowable or done without permits? Or are the measurements just inaccurately recorded in Public Records? The appraiser needs to research this or sometimes I would be asked to produce a copy of original permits from my borrower. Or maybe it gets grandfathered in. The fact that public records and the MLS seem closely matched in reporting details seems a good thing, but for reasons cited by commenter Jcarlson corrections in data needed to be addressed and corrected.
Robert Jubran
Mortgage Banker, FirstBank Mortgage
on Wed Mar 29 2017, 1:38 PM
Great info!
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Wed Mar 29 2017, 12:31 PM
Without giving up sound underwriting principles but also understanding that making homeownership possible to more lower income borrowers, second chance borrowers, and borrowers in high rent areas with minimal savings can be good for the economy. These "eager to own a home" individuals and families help strengthen communities in gaining a foothold in real estate ownership. This is a terrific report on the importance of these lending criteria for those of us who still do a fair amount of FHA loans alongside other first time buyer loans. I am aware that more and more big banks are shying away from FHA lending as much as possible. There are lenders such as ourselves that fill that void currently by doing FHA loans with no overlays and competently so. Realtors and others need to wake up and respond to requests from mortgage consultants that fill this growing void in lending. Many of us can provide down payment and closing cost assistance in as short of escrow period as a stand alone loan.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Fri Mar 17 2017, 3:00 PM
I too question the rate discrepancy pointed out between most FHA loans and ones that included down payment and sometimes closing costs assistance. In fact the rate could be better in using the Cal HFA State down payment assistance only. The rate was typically half a point higher when receiving closing cost assistance as well. However, that would often only be .250 higher then prevailing FHA rates. My experience and Michael Schwartz' experience based on his comment, covers two States. Nevertheless, I would still be surprised to see many State's in their DPA and closing cost assistance programs showing rates up to 80 BPS higher! The overall maximum debt to income ratio allowed is much lower than the maximum allowable on most standard FHA loans which makes sense since very little money has been risked by the home buyers. What ought to be considered in conjunction with qualifying factors, is how much it means for most of these borrowers to own their own home. I seriously doubt hardly any would end up foreclosing on their home loan unless they absolutely had no choice. Being of low to lower middle class incomes naturally more people will likely be affected by an economic or medical catastrophe than higher income classes. However, so far the FEDs have paid close attention and addressed FHA qualifying standards, needed adjustments to lessen risk to the insurance fund, and FHA insured lending has been successful thus far.
on Fri Mar 17 2017, 2:52 PM
These loans are at premium rates. It's time that OIG did step in to oversee these types of programs, that is a little too late. Although it's intention serves a purpose, the outcome is higher closing costs, higher interest rates and monthly payments. Affordability should not be justified by turning to these programs. The interest rate spreads are significant and I advocate for first time home buyers to look at all loan scenarios with and without the down payment assistance to encourage a longer term approach to these programs. DPA programs are the last resort and a first time homebuyer in California, should be conservative on their approach to purchase a home if down payment assistance is needed.
on Fri Mar 17 2017, 11:51 AM
I have written quite a few loans with community held seconds here in NJ and not one of them had any pricing adjustment whatsoever. The only pricing adjustment that I see for these borrowers is due to credit score but again that adjustment is made without any regard for a second or lack there of. I don't know if the OIG actually peels that layer back. Most community down payment programs that I come across are for first time buyers only and add to that the income caps which are well below the median income. That type of borrower will most typically struggle to maintain a higher credit score. I don't think the OIG realizes that.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Mon Mar 13 2017, 1:17 PM
Sales & marketing that is ok under RESPA may not be ok when it comes to buying any leads from Zillow. Of course, for many years a large dominate real estate property information and education website was nonexistent. It seems if Zillow did not have the real estate licensing then it could only be considered an educational and marketing website that can sell leads in some manner and form. "The statute has always been vague, the regulations are not much better - " In a way maybe companies like Redfin, who have been adapting to maximize proftits in real estate sales while using their own network of real estate agents and real estate agent Assistants gain the edge if deciding Zillow is not allowed to sell leads. To my way of thinking, it seems highly anti-competition to leave out a company like Zillow whose investors decided to continue working with a broad range of independent real estate agents as opposed to hiring and controlling their own. It would be more fair to rewrite regulation to clearly include the right of website educational and marketing companies like Zillow to be able to sell rights to their own company received leads to real estate agents and mortgage loan agents.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Mar 10 2017, 2:21 PM
I don't see today as an indication of a bigger-picture bounce. We're not likely to see major movement until after next week's Fed. Lock/Float thoughts discussed in greater detail on MBS Live as well (take a free trial if you haven't already).
on Fri Mar 10 2017, 2:05 PM
So what are your thoughts on waiting on locks until mid next week?

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