"ADT Security left a business card in my door. Their marketing would be much more effective if I found it inside my house." As I continue my time at the MBA and STRATMOR Peer Group Roundtables, learning what is effective, the increase in rents is of great interest to lenders, big and small. Zelman and Associates' Single Family Rental Survey indicated that in January, tenant turnover was lower than normal and renter demand moderated year over year, with pricing power and occupancy still strong. Overall rent growth accelerated YoY to 3.2% (renewal growth increasing 2.9% and new move-in growth increasing 3.8%). Leasing speeds recently were better than expected and demand was strongest in the Arizona, Texas, and California markets. Vacant rental supply fell slightly in January and leasable occupancy reached 95.6%. For more information, contact Ivy at ivy@zelmanassociates.com.

On the flip side are Wells Fargo's layoffs/transfers - darned improving delinquencies.

MBA's Single-family Rental Finance Summit is coming up April 1 in Washington. Key sessions and speakers will provide the latest on what opportunities lay ahead. Topics to be discussed include: Sizing the Opportunity, Leadership Perspectives, Where's Washington, Capital Markets, -Operations and Seizing the Opportunity.

The National Reverse Mortgage Lender's Association's Eastern Regional Meeting, is being held now through the 27th in New York, N.Y., to discuss financial assessment in greater detail, and to talk about priorities for 2015. NRMLA will welcome Karin Hill, Senior Policy Advisor to the U.S. Department of Housing and Urban Development (HUD as well as other representatives from HUD to give attendees a comprehensive update on the HECM, and to discuss the evolution of HECM policy over the past few years. This event will explore the changing reverse mortgage market resulting from changes to the HECM program.

Join the Greater Sacramento CAMP Chapter on March 26th in welcoming Ken Bates to its "lunch and learn." After Ken's 12 years of active duty, his naval career landed their family in San Diego where he and his wife, Karen Bates, found their life's passion: helping other military families use their VA benefits to purchase one of the biggest pieces of the American dream - their own home. Ken doesn't just teach VA loans, he funds them!! Over $25,000,000 funded VA business in 2014. He will be your will be your guide to creating a successful VA purchase.  Register Here.

On Tuesday, March 31 at 11AM EST, join GARP (Global Association of Risk Professionals) for its webcast to discuss the risks posed by derivatives, both cleared and un-cleared, in the context of the current, still evolving regulatory landscape.

Maximum Acceleration, The Professional's Coaching Company, is bringing you its Texas Mortgage Roundup on Thursday, April 2, at the Hyatt Regency Riverwak in San Antonio (with a bonus 8-hour NMLS class on Wednesday, April 1!). Enter the code: MATXRDP on the registration form.

MBA's Second Annual Strategic Markets and Diversity Summit is taking place June 24-25 in Washington DC will deliver the strategies needed to thrive in the market of tomorrow. Attend and be a part of building a stronger and more inclusive marketplace for future generations. To learn more about the summit and to register, please visit the event web site.

The 24th Rocky Mountain Mortgage Lenders Expo, the region's largest mortgage lending conference and expo, is coming April 9th. It includes educational programming, networking events, and an expo hall featuring wholesale and correspondent lenders, marketing and advertising firms, technology providers, and support services, just to name a few. This year's Expo is expected to attract over 1,000 industry professionals including business owners, company executives, sales managers, loan originators, and operations and compliance staff.

As lenders across the nation have removed underwriting overlays, thus coming close to pure agency guidelines, the news from Freddie and Fannie has continued unabated. It's hard for F&F to catch a break. A report for the Inspector General of the FHFA stated "The enterprises have cautioned that income growth from guarantee fees may not completely offset the loss in income from the retained portfolios,".... "Absent Congressional action, or a change in FHFA's current strategy, the conservatorships will go on indefinitely. The enterprises' future status is beyond their control. At present, it appears that Congressional action will be needed to define what role, if any, the enterprises play in the housing finance system," the IG wrote.

"Rob, is the Home Possible Advantage an option for borrowers in non-rural areas where USDA Rural Development loans are not available?" To the best of my knowledge income limits are not applicable in underserved areas, including rural areas, of course. You can determine if the house is located in one using this on-line tool - just enter the state.

Fannie announced some important news to any changes in the way self-employed income is considered. Sure enough, the folks on Wisconsin Avenue (soon to be 15th St.) issued a Notice that clarified its recently-updated Self Employed Income Policy. As a reminder, last December Fannie Mae issued Selling Guide Announcement SEL-2014-16, listing a number of topics that were updated in the Selling Guide, including Self Employed Income.  The updates were originally to take effect April 1, 2015. In the Guide Fannie announced a number of changes and clarifications to the policy that pertained to underwriting self-employed borrowers. In addition, the Cash Flow Analysis (Form 1084) was also updated to reflect the policy updates and align with IRS tax forms and terminology.

"All Plans Are Great Until The First Shot Is Fired." Fortunately no shots were fired, but Fannie Mae received a number of questions from lenders about business income reported on Schedule K-1. The new Notice addresses two of these policies: Fannie Mae is clarifying that for borrowers with business income reported on Schedule K-1 who own less than 25% of the business, the lender is not required to consider business losses in the evaluation of income. And the update included a clarification that business income may be used in qualifying the borrower only when there is a history of income distribution to the borrower consistent with the level being used to qualify. This clarification applied to business income reported on Schedule K-1 and the use of the lesser of ordinary income or distributions in qualifying the borrower.

In light of the questions on Item #2 above, Fannie Mae is delaying the mandatory implementation of the self- employed income policies while Fannie Mae re-evaluates the treatment of business income reported on Schedule K-1. At their discretion, lenders may choose to move forward with implementation of some or all of the self-employed income policies announced in SEL-2014-16, many of which provided additional clarity and flexibility for borrowers; however, they are not required to do so until further notice. In addition, the prior version of Form 1084 (dated 10/01) has been reposted on Fannie Mae's website for lenders that choose to use this version of the form in the meantime.

If you have questions check with your rep. But Fannie plans to announce changes or clarifications to the policy and the mandatory effective date in the future.

Freddie Mac recently released selling and servicing updates including a new requirement that seller/services review the FHFA Suspended Counterparty Program list to confirm that no person or entity whose name is on the list was involved in certain activities related to a Freddie Mac mortgage. Freddie Mac has revised the notification requirement for bankruptcy cramdowns, including new Form 1155, Bankruptcy Cramdown Pre-Confirmation Proposal for Settlement Terms. Updates to the reporting and remittance requirements for properties purchased by third parties at foreclosure sale, including new Form 1160, Third-Party Sale Transmittal Worksheet are discussed in the announcement. Freddie has also updated rollback reporting requirements, insurance loss settlement requirements and has provided clarification related to bankruptcy filing after a foreclosure sale. Furthermore, the updates include changes concerning when a modification agreement is required for modifications resulting from partial principal curtailments. For further information regarding Freddie's recent updates, click here.

Turning to the markets since we will continue with the Freddie & Fannie news tomorrow...

The U.S. economic news has not been strong lately, including Durable Goods yesterday. In fact Paul Jacob with Wunderlich Securities writes, "The durable goods report was weak, both in the headline and the major 'core' orders readings. This is going to be the pattern for 2015: The manufacturing sector is simply facing too many headwinds right now (strong dollar, shaky overseas demand, weakening exports, pullback in energy services). The takeaway is that U.S. growth in 2015 will have to be led by domestic consumption."

Yet both bond prices and equities tumbled Wednesday. Without much to blame it on, one source sagely observed, "Traders and investors booked profits from a 13-day rally and a 5-year auction met with lackluster demand." Is that the best they can do? Apparently - I could find nothing substantive. (On the trading desk we'd say, "The market just wanted to go lower.") Remember, IF there is peace and stability overseas, and IF our economy is doing decently, eventually rates will grind higher.


Jobs and Announcements

Congrats! Envoy's Correspondent Lending Division is pleased to announce the addition of Lisa Thomas. (Lisa is a ten year industry vet and will develop the Upper Midwest/Chicago market.) But to complete the nationwide sales team Envoy is looking for a few more seasoned Correspondent Regional Account Managers in the following areas: Northeast, Southeast, Texas, the Southwest, and Southern California. If you like succeeding - be a part of a champion lending team and experience the difference at Envoy by forwarding your resume to Todd Potter, CMB. Envoy CLD offers Best Effort, SLM and Bulk execution and is a FNMA, FHLMC and GNMA seller/servicer.

In wholesale, LDWholesale continues to make an impact on the wholesale space. After its inception in April, 2014, the company ended the year with an astounding 473% growth and continue to surpass projections month over month. Management is currently seeking a Director of Compliance to join in on LDWholesale's success. The person in this role will serve as a resource for regulatory matters and compliance related initiatives, specific to Wholesale Lending in all 50 states, supporting branches in Southern CA and Plano, TX. "An ideal candidate will be a natural leader with the ability to work on a loan level and strategic basis, and share LDW's Rock Star Mentality and Motto: We do what's right, the right way, at the right time." If this sounds like a fit for you or someone you know well, please contact Walter Mar, LDW's corporate recruiter, or click here to learn more.

And last but not least in retail, MB Financial Bank is looking for new branch locations and loan officers to join its national team. MB Financial Bank is currently seeking new Retail Branches and Loan Officers to fulfill opportunities in 45 states and who are interested in becoming part of "a strong, nationally-chartered bank with a dedicated, customer service focus. MB provides competitive compensation, quality benefits, servicing portfolio leads, and generous tiered commission compensation plans to promote success and growth. Individuals who are looking to join a successful bank with a robust product offering, competitive pricing, and significant income potential" should contact Mark Mazzenga, Mortgage SVP and National Sales Manager. MB Financial Inc. is the Chicago-based holding company for MB Financial Bank, N.A., which has approximately $16 billion in assets and a 110-year history of building deep and lasting relationships with middle-market companies and individuals. Equal Housing Lender and Member FDIC. NMLS#401467.