Opening today’s note with something non-business related, before the commentary comes out Wednesday (tomorrow) morning, we’ll have a full lunar eclipse. No glasses needed! Those on the East coast will only see it briefly before sunrise. For Midwesterners the best time will be between 6 and 6:30 CT. Mountain states: 6:30-7AM. West coast: 4:45-6AM. Best time for Hawai’i: 4-6AM and Alaska 4:30AM.
FHA, VA, Ginnie, and HUD Program Changes
Ginnie Mae is considering accelerating the month end investor reporting cycle to include a monthly reporting cut-off date no later than the last business day of the month, with RFS pool/loan investor reporting files due the 1st business day and corrections by the 3rd business day. The reason for this potential change is so that the loan level data disclosure and MBS factor files that are distributed to the investor community can be accelerated from the 6th business day to the 4th business day, so should “better align with investor expectations and to align with the schedule of data disclosed by the GSE’s.” The MBA weighed in for its members on the changes.
“Ginnie Mae realizes that this accelerated investor reporting schedule would impact servicing operations, especially for those issuers who currently cut-off on the 1st business day of the month in respect to the posting of loan payoffs and the early removal of loans greater than 90 days delinquent. We recognize that there could be other impacts and Ginnie Mae will be asking for feedback from the major Service Bureaus and servicing software vendors as well. Structured engagements to collect issuer feedback are being scheduled to occur over the next several months, including at the MBA’s National Mortgage Servicing Conference & Expo 2018.
If you are attending the MBA Servicing Conference and have questions or are interested in providing feedback, please send an email to GinnieMaeOperations@hud.gov before noon Friday, February 2nd to schedule a time to meet with a Ginnie Mae representative at the conference.”
(Hopefully we won’t need to remember this on 2/8, but during any lapse in government funding, Ginnie Mae will reduce staffing to essential personnel levels but continue to remit timely payment of principal and interest to investors. The Agency said there would be no disruption of essential functions like the granting of commitment authority and support for continued issuance of Ginnie Mae-guaranteed Mortgage Backed Securities (MBS) and REMICs.
HUD announced a top-to-bottom review of its manufactured housing rules as part of a broader effort to identify regulations that may be ineffective, overly burdensome, or excessively costly given the critical need for affordable housing. “HUD is accepting public comments to identify existing or planned manufactured housing regulatory actions to assess their actual and potential compliance costs and whether those costs are justified against the backdrop of the nation’s shortage of affordable housing.”
Recall that VA has provided clarification in VA Circular 26-17-43 indicating it will accept a verification from a third-party vendor verifying a borrower’s income employment and asset information used to determine if a borrower qualifies for a VA guarantee home loan during the underwriting process, specific requirements apply. M&T will audit to ensure requirements are met. Lenders may not charge to a Veteran the cost of obtaining third party verification of borrower income, employment and asset information.
The VA does not impose a maximum amount that an eligible veteran may borrow; however, M&T may have a maximum loan amount (check product page), AND published loan limits establish the maximum possible guaranty on a loan. M&T will always require 25% guaranty, as this is required to sell a VA loan to any investor. The maximum guaranty amount (available for loans over $144,000) is 25% of the 2018 VA Loan Limits. A veteran with full entitlement may borrow up to the 2018 VA Limit and the VA will guarantee 25% of the loan amount.
ditech Approved Correspondent Clients: Risk Advisory, Volume 1, Issue 3 contains the following highlights: The Top 5 Post-Fund Material Defects. VA Loan Transactions Frequently Asked Questions. On the Horizon. Manufactured Homes Spotlight. Fannie Mae Site. Condominium Project Recap.
To ensure best execution and meet Ginnie Mae’s requirements, Wells Fargo Funding is adding the following policy, applicable for FHA Streamline, FHA cash-out, and all VA refinance transactions when the loan to be paid off is a government loan: The first payment due date of the new Loan cannot occur earlier than 210 days after the first payment due date of the loan being paid off. The borrower must have made at least six consecutive monthly payments on the loan being paid off, beginning with the payment made on the first due date.
Effective for loans delivered to AmeriHome on or after Friday, 3/2/2018, new Ginnie Mae seasoning requirements will apply to government streamlined and cash-out refinance transactions when the loan being refinanced is FHA, VA, or USDA.
Mortgage Solutions Financial posted information regarding 6 Month Seasoning Requirement on VA Cash Out.
FormFree announced that its AccountChek® automated asset verification reports meet all underwriting guidelines established by the U.S. Department of Veterans Affairs. The announcement follows the VA’s December 29, 2017, release of Circular 26-17-43, a response to increasing lender interest in automated verification of borrower assets for VA loans. The circular clarifies that the VA permits lender use of third-party providers for automated asset, income and employment verification.
Treasuries continued their slide as overnight selling put pressure on yields before Monday’s session began. The move followed a slide by European debt and opened at the day’s lows before trimming losses and by the end of the day the 10-yr Treasury note was yielding 2.70 percent, the highest level since April 2014. There was no major headline that could be called the catalyst for Monday’s selloff, just continued months of decent economic news – despite several Fed rate hikes. The current trend has been higher as market participants adjust expectations relating to reductions in global sovereign bond purchases, global economic expansion and potential resulting inflation as well as the need for the US government to increase Treasury issuance to fund recently enacted policies. The factors could lead to an increasing supply of US Treasuries which in-turn will require higher yields to be absorbed by the market.
Today’s calendar sees Rebook same-store sales, Case-Shiller home prices for November, and consumer confidence. We start Tuesday with the 10-year yielding 2.71% and 30-year agency MBS prices down/worse nearly .125.
Products, Jobs, and Personnel Moves
Silvergate Bank continues to grow its Non-QM correspondent lending channel and is seeking an experienced correspondent operations manager to manage its fast-growing production as well as help grow the infrastructure to support our growth. This position is located at Silvergate’s headquarters in La Jolla, California. The candidate must be experienced in correspondent operations and vendor management and have a solid understanding of compliance rules. Please direct your inquires to Patrick Gilmore or (858) 200-8539.
“Our founder, Glenn Stearns, has overcome obstacles and achieved extraordinary success through determination and grit. Rising from the challenges of his early years, Stearns has gone on to lead our company through 29 years of success. He understands innovation, leading by example and a commitment to service. Highly-regarded as an entrepreneur, mentor and philanthropist, Glenn supports the success of those around him by providing opportunities to achieve the American dream, for both his employees and their customers. ‘Our innovative and strategic leadership in Stearns Wholesale, as well our dedicated Account Executives and Operations Team, are committed to finding the right purchase or refinance solution for every customer.’ With an expansive product line, experienced professionals and millions invested in technology, Glenn believes Stearns Wholesale Lending, backed by its tremendous leadership team, is well-positioned for 2018—and many years to come.”
According to the most recent ARMCO Mortgage QC Trends Report, purchase transactions continued to outpace mortgage refinance originations in Q2 2017, with an increase of over 9% from Q1. The critical defect rate continued its upward trend, reaching 1.76% in Q2 2017, while the leading critical defect categories for Q2 2017 were Borrower and Mortgage Eligibility, Credit, and Income/Employment. Purchase transactions continued to dominate the percentage of loan originations, and defects associated with underwriting and eligibility made up the majority of critical defects.
Floify, the mortgage automation app for top-producing LOs, has doubled down on the success of its most significant update ever – custom fields, layouts, and business rules! Used by more than 270,000 LOs and borrowers from around the world, Floify has made additional investments in these popular features, which have proven to be incredibly useful in making loan workflows more efficient. Floify’s custom fields empower LOs to create unique layouts that store and display valuable information for their borrowers and teams. And business rules allow LOs to utilize conditional logic that can dynamically swap layouts on-the-fly, reveal new fields, or even post loan data to other platforms. With these powerful new features, and more on the way, Floify has helped LOs close loans an average of 8x faster and increase annual loan volume by more than 11%. To see Floify in action and lock in a 25% discount, request a live demo.
Vendor Surf is a search engine dedicated to the advancement of premium vendors and guiding buyers to make wise decisions across the mortgage and credit union ecosystems. With over 80 categories of vendors and 3,000+ search filters, Vendor Surf quickly and efficiently matches buyers to vendors that best meet their needs. Vendor Surf also provides value-added services for loan officers. You can find and promote events, trade shows, webinars and trainings. Vendor Surf is comprehensive - showcasing vendors across the entire mortgage loan lifecycle, from originations all the way through secondary markets, and is quickly growing the number of vendors and site visitors. They recently added these vendor partners: Agility 360, LendingQB, MereSecure, Mortech, Professional Notary Services and TENA Companies. If you are a professional looking for new vendor partners search Vendor Surf for FREE by visiting www.VendorSurf.com or contacting Scott Rolleror Craig Leabig for more information.
As the market continues to shift towards home purchases, the borrower experience is the key to success. Here is a free paper for you to read, if you have not already. “Happy Borrowers: Achieving Financial Success with Customer Satisfaction” explores new research that highlights the three driving factors of borrower satisfaction and how it is linked to financial return. A great read for all mortgage leaders and their teams. Download your Free Copy Here.
“4506-Transcripts.com’s mission is to support our clients in closing loans fast! We do this by providing fast turnaround times, data security through our ISO 27001 Certification, and customer service with a human touch from 5AM - 5PM PST! We are proud to announce that 4506-Transcripts.com is now an approved report supplier for the Desktop Underwriter® (DU®) validation service. Fannie Mae’s Day 1 Certainty™ gives lenders freedom from representations and warranties plus greater speed and simplicity and enables an improved borrower experience. With this integration, 4506-Transcripts.com makes it possible for lenders to request tax transcripts and protects lenders from related buyback risk through Day 1 Certainty. We are also excited to share that we are integrated with Ellie Mae’s Encompass, Black Knight, Inc., and Ventures+. If you are using any of these platforms, please contact us today at (925) 927-3333 or email us at sales@4506-Transcripts.com to get started!”
Congrats to Michael DeVito who has been named head of Wells Fargo Home Lending, a role he has held on an interim basis since November 2017. DeVito will report to Mary Mack, head of Community Banking and Consumer Lending.
And over at JPMorgan Chase & Co., Daniel Pinto, Chief Executive Officer of its Corporate & Investment Bank, and Gordon Smith, Chief Executive Officer of Consumer & Community Banking, have been appointed Co-Presidents and Co-Chief Operating Officers of the company, continuing to report to Jamie Dimon, Chairman and CEO. “Gordon Smith leads America's leading consumer and community banking business, with 140,000 employees serving 61 million households and four million small businesses.” The Chase businesses he manages includes home lending.
Home Point Financial Corporation, a national, multi-channel mortgage originator and servicer announced today that it has named Richard Bradfield Enterprise Chief Financial Officer (ECFO) and Bill Shuler Chief Information Officer (CIO). Both will report directly to Willie Newman, Home Point Financial President and CEO.
AmCap Mortgage Ltd. is proud to announce that A.W. Pickel, III, a Division President, has been elected to the MBA’s Residential Board of Governors (RESBOG). RESBOG is a committee of industry leaders who set the priority of issues for the MBA in the coming year. As one of 31 voting members of RESBOG, Pickel will help shape the MBA’s position on various issues that impact the mortgage industry. Congratulations A.W!