The next time you hoist yourself onto that copy machine after hours, make sure that you don't have any identifying tattoos: CopyingIsForever

Six Federal agencies have to sign off on the QRM provisions, and apparently the first will be early next week. Early next week the FDIC opines on, "What counts as a "Qualified Residential Mortgage (QRM)?" as it scheduled a meeting of its Board of Directors for next Tuesday to vote on the issue. A draft of the proposed rule will be made available to the public at that time. Industry folks believe that the FDIC will move first on the rule, followed by (in random order) the OCC, the Fed, HUD, SEC and the FHFA -- will be approving the rule in the days following the FDIC's notice. Once all six agencies have approved the proposed rule it will be published in the Federal Register, and the comment period will begin. Don't be shy about voicing your opinion! For more information visit CMBP.

PHH has been very busy. About a month ago, PHH told its brokers that "PHH plans to comply by having brokers compensated by the borrower. You may charge up to 3.25% to the borrower as per today's maximum compensation guidelines. Any above par pricing will appear as premium pricing and will be a direct credit to the borrower. Premium Pricing amounts can only be applied to third party fees" and so forth. But a short time after that PHH stated, "Please note that PHH Mortgage has revised its policy regarding Regulation Z as previously indicated. PHH Mortgage will support loan originator compensation directly by the Lender only-not by the borrower. Based on further clarification of the Federal Reserve Board's final rule on loan originator compensation, which will be effective for applications received by creditors on or after April 1, 2011, there are additional restrictions on transactions where the borrower compensates the loan originator.

"Because of this, PHH Mortgage has revised its direction and will now support loan originator compensation directly by the Lender only-not by the borrower. PHH plans to comply by compensating brokers through the lender paid option for all loans registered after" yesterday. "Your compensation from PHH will be a flat percentage based on the loan amount. PHH intends to offer multiple flat compensation rates, ranging from 1 to 2 points in .25 pt increments, allowing you to choose the one that meets your company's goals. Any pricing below par will appear as discount points on the rate sheet and will be a direct charge to the borrower and any above par pricing will appear as premium pricing on the rate sheet and will be a direct credit to the borrower. Premium pricing amounts can only be applied to third party fees. This excludes origination charges and any seller paid closing costs on behalf of the borrower. Should the lender contribution exceed the out of pocket third party costs, the interest rate will need to be lowered...Clients will have a one-time opportunity to change their compensation option by April 22, 2011, which will be effective on April 29, 2011. Changes to your broker compensation will be completed once a quarter on the last Friday of the quarter. Change requests must be received at least seven days prior to the last Friday of the quarter.

"PHH Mortgage will require the fully executed Broker Disclosure Acknowledgment to be included in all initial submission packages effective April 1, 2011. Packages that do not include the acknowledgement signed by the client will not be submitted to underwritten until the condition is fulfilled." In addition PHH will be implementing EarlyCheck mid-April 2011. (EarlyCheck is a data validation tool offered by Fannie Mae to help lenders identify potential issues that may make a loan unsalable. It enables discrepancies to be identified early in the loan process allowing time to correct prior to the loan closing.) On the Freddie side, PHH told brokers that "the maximum LTV/CLTV for MyCommunity Mortgage/Homepossible mortgages will be 95% when scored though LP starting last Friday. Loans scored through DU or DO will continue to allow LTV/CLTV above 95%. Yesterday PHH announced more comp training in sessions today and tomorrow.

But wait - there's more! Not only was Essent Guaranty recently approved as an MI company in certain situations, but PHH is now doing FHA loans in Hawaii. PHH systems will be updated to apply the new annual MIP amounts to FHA loans with case numbers assigned on or after April 18, 2011, and is also rolling out the 5/1 P&I CMT ARM which mirrors FHA fixed products in regard to guidelines and "has a 30-year term and is fixed for the first 62, 63 or 64 months, depending on closing date, and adjusts yearly thereafter based on the 1-year CMT index. And the maximum allowable DTI will be increased to 45% for certain conventional, conforming loan scenarios when PHH orders the MI commitment.

There are indeed some positive signs out there. For example, ClearPoint Funding was acquired a few months ago by Gleacher and Co., and is now operating its wholesale platform for brokers in all 50 states. And ClearPoint Funding is hiring AE's, per the release noting, "CPF will continue its sales culture on high touch broker centric solutions for the needs of today borrowers offering government, conforming and super jumbo products." "Currently there are career openings for wholesale AE's in CA, OR, UT, AZ, NV, IL, MN, CO, TX, ME, NH, OH, DC, MD, DE, FL, GA and Regional Sales managers in many regions across the country." For more information Contact Pat Taylor Director of Human Resources at or Keith Bilodeau at

In "the Heartland," Equitable Mortgage, a mortgage banker in MO, AR, and KS, has carved out their niche with community banks and credit unions by making access to the secondary market easy.  The company has been around 15 years and, although it certainly does conventional lending, also specializes in helping its community bank clients do rural, large acreage lending. Its president, Tom Mullen, noted, "We have found that many of our community banks and credit unions  that don't have well developed secondary market departments like the extra help and in-house underwriting that we offer". Check out EquitableRetail or Equitable Wholesale.

Yesterday I noted that SunTrust has a new fellow - Jerome Lienhard - running its mortgage business. I received this note. "So the new guy at SunTrust mortgage is 'Lienhard'? Really? Lienhard? Is this a joke?"

Yes, the jumbo market is attracting interest. Provident Funding, a growing force in the wholesale market, announced its jumbo program going up to $3 million.

Freddie Mac notified its servicers of some changes to its servicing requirements that should be noted. The changes are numerous but include, "Permitting Servicers to postpone foreclosure sales handled by designated counsel as long as the newly scheduled foreclosure sale date is within Freddie Mac's State foreclosure time lines" and "Eliminating the option to foreclose in the name of Mortgage Electronic Registration Systems Inc. (MERS)." Best to check out the bulletin: Freddie.

Home Savings of America will be explaining its comp plan tomorrow at 9AM PST. Go to HSOA.

Yesterday EverBank rolled out its VA Interest Rate Reduction Refinance Loan program through its wholesale and retail channels. It's a streamline refinance program, where a VA-guaranteed loan is made to refinance an existing VA-guaranteed loan. It is not subject to EverBank's declining market policies, but there are other criteria and restrictions such as a minimum 620 FICO. Check the bulletin precise information. The company is also coming out with more comp training. To register go to EverBank and the meeting will be held at Meeting, Teleconference Number: 1-866-846-3997, Participant Passcode: 520374.

Wells Fargo... laying off. 'Nuff said. SanAntonio.

Earlier this week Caliber Funding told brokers of some enhancements. Namely, for conventional conforming fixed & ARM products with an MI enhancement, it will do a 680 FICO up to 90% LTV for purchase & rate/term refinances on primary single family residences where the DTI is 41% or less. Check the bulletin for details. And starting tomorrow Caliber will begin accepting loan submissions for properties and households that are eligible for USDA Rural Development Fixed Rate Program from Business Partners who have been approved for sponsorship. Offered only in rural areas, a USDA Guaranteed Loan is a Government insured, 100% LTV purchase loan.

Anyone looking for a rebound in the housing market did not find it in yesterday's release of New Home Sales for February. Anyone in the market for a home is asking, "Why buy a new one when there are so many others around?" And indeed, New Home Sales were down nearly 17%, and are at their lowest level since 1970, and following NAR's Existing Home Sales drop of 10% announced earlier this week. Most analysts are not looking for any rebound this year. MND points out New Home Sales followed Building Permits lower and called attention to a large standard error that made the survey data "Statistically Insignificant".

It was the third monthly decline in a row and far below the 700,000-a-year pace that economists view as healthy, with the median sales price dropping to $202k.

In terms of interest rates, Treasuries opened higher (rates lower) on more flight-to-safety (European sovereign debt, Libya and Japan issues continue) but then tailed off during the day. The 10-yr closed nearly unchanged at 3.35%. MBS prices and spreads ended mixed with lower coupons mostly "lower and wider", while higher coupons were "higher and tighter".


Levels of stress for a guy:

You pick up a hitchhiker, a beautiful girl. Suddenly she faints inside your car and you take her to hospital. Now that's stressful!

But at the hospital they say she is pregnant & congratulate you that you are going to be a father. You say that you are not the father, but the girl says you are. This is getting very stressful!

So request a DNA test to prove that you are not the father. After the tests are completed, the doctor says that you are infertile, and probably have been since birth. You are extremely stressed, but relieved.

On your way back home, you think about your 3 kids at home.