The Federal Housing Administration (FHA) announced a a package of incentives to encourage multi-family property owners to invest in thousands of neighborhoods located in Opportunity Zones across the nation. Think reduced application fees paid by property owners applying for certain multifamily mortgage insurance programs for development or rehabbing apartment units located, or proposed to be located, in Opportunity Zones. And designated teams of senior underwriters to review these applications to ensure the most attentive and timely processing. Opportunity Zones are intended to stimulate economic development and job creation in distressed low-income communities by incentivizing long-term capital investment. There is capital gains tax relief to those who invest in these targeted distressed areas. This program is anticipated to spur approximately $100 billion of private capital investment in more than 8,700 census tracts. Lots more FHA news below.

Lender Products and Services

Low rates not only have a positive impact on origination pipelines, they also translate into improved bids on Scratch and Dent loans. Mid America Mortgage’s Whole Loan Trade Desk continues to help lenders with liquidity issues through the purchase of these more challenging loans. In 2018, Mid America purchased more than $100 million of Scratch and Dent loans and is on track to have another record year in 2019. Notably, guaranteed VA loans that do not meet GNMA’s pooling requirements have been especially active. To hear more, please join the Whole Loan Trading session at the MBA’s National Secondary Market Conference in New York City. Mid America’s Managing Director Michael Lima will be on the panel which is scheduled Tuesday May 21 at 1:45 pm EST. To book individual meetings at the show or to submit a loan scenario, please contact

Angel Oak Mortgage Solutions is enhancing its correspondent lending channel with new technology, infrastructure and high-level talent that reflect its stunning growth in the non-QM marketplace. Andy Steben has joined Angel Oak to head up this initiative as SVP of Correspondent Lending with Dan Bayer joining him as VP of Correspondent Sales. Andy, Dan, and Sean Marr will be at the MBA’s National Secondary Market Conference in NYC later this month. Schedule some time to speak with us about how you can become a correspondent lender with Angel Oak by emailing

Innovating how real estate is bought and paid-for has been the goal for CMG Mortgage Inc. with its development of the All In One Loan™ (AIO). Similar to Offset-Mortgages sold around the world, the AIO helps Borrowers reduce their principal faster, saving them thousands in total interest payments while keeping their home’s equity dollars flexibly liquid for use over 30 years. Key features now include a 10% Down-Payment option, Investment Property financing, Asset Depletion and Loans to $2 Million. This powerful product is changing the way Americans

think about both mortgages and their money and is now available to Correspondent Sellers to originate. CMG Mortgage Inc. Correspondent Lending is hosting two training opportunities at the MBA New York Secondary Conference. Presentations are scheduled for May 20th at 10AM and at 2PM in the Company’s Meeting Suite located at the Marriott Marquis. RSVP, to Gina Paola.

FHA, VA, and Ginnie: Always Shifting

“The Federal Housing Administration (FHA), in an effort to provide additional clarity and streamline FHA program requirements while continuing to fulfill its duty to protect the Mutual Mortgage Insurance Fund (MMIF), is seeking public feedback on proposed changes to its loan-level certifications, annual lender certifications, and the Defect Taxonomy.”

And thus began the release yesterday attempting to streamline the certification statements while continuing to hold lenders accountable for compliance with all HUD eligibility and approval requirements. You can read all about it at the Single Family Housing Drafting Table (Drafting Table) on More detail on each document is provided below.

The FHA is proposing significant revisions to the Addendum to Uniform Residential Loan Application (Form 92900-A), and the proposed Form 92900-A is posted on the Drafting Table for a 30-day feedback period from May 9, 2019, until June 8, 2019.

Also open to debate is possible changes to its annual lender certifications “to better align them with National Housing Act standards while continuing to hold lenders accountable for compliance with HUD eligibility requirements. The proposed annual lender certification is posted on the Drafting Table for a 30-day feedback period from May 9, 2019, until June 8, 2019. Drafting Table shows the current certification statements and proposed changes side-by-side.

Lastly, the FHA is posting a draft of the Defect Taxonomy Version 2 for stakeholder review and feedback. The Defect Taxonomy was created in 2015 and implemented through the Loan Review System in 2017. Version 2 will provide more clarity and transparency into FHA’s existing loan-level quality assurance processes. The proposed Defect Taxonomy Version 2 is posted on the Drafting Table for a 30-day feedback period from May 9, 2019, until June 8, 2019.

FHA published a notice in the Federal Register (FR) (Docket No. (FR-6163-N-01) of all completed administrative actions taken by the U.S. Department of Housing and Urban Development’s (HUD) Mortgagee Review Board during the period from October 1, 2017, through November 14, 2018. The FR Notice provides a description of, and the cause for, the Mortgagee Review Board’s administrative actions against HUD-approved mortgagees in 17 fact-based cases and 31 annual recertification violations.

Ginnie Mae published a Request for Input (RFI) as it considers making changes to the parameters governing loan eligibility for pooling of mortgages into its security. This RFI is a part of the agency’s continuing effort to monitor and support the market performance of the Ginnie Mae mortgage-backed securities (MBS). The publication of the RFI follows policy changes already implemented by Ginnie Mae and the Department of Veterans Affairs (VA) to address abnormal prepayment patterns in some mortgages pooled in Ginnie Mae MBS that negatively affect MBS pricing, to the detriment of home mortgage loan affordability. All responses to the RFI are to be submitted to Ginnie Mae by May 22, 2019.

Ditech Financial LLC Approved Correspondent Clients should note its Conforming, FHA and VA underwriting guidelines are being updated. Reference the Client Guide and product matrices for complete guideline requirements. The minimum credit score for VA Interest Rate Reduction Refinance Loans (IRRRL) has been decreased from 660 to 620. Refer to the ditech VA Refinance Product Summary for complete IRRRL eligibility requirements. In addition, ditech eligibility and underwriting guidelines for the Piggyback Closed End Second EE products have been revised to more closely follow Fannie Mae DU underwriting guidelines, with exceptions noted on the product matrix.

Carrington Wholesale offers VA IRRRL products which include no minimum FICO, no appraisal and no income documentation.

Mortgage Solutions Financial issued Announcement 10-19W regarding the VA IRRRL Updates and Changes.

With Mortgagee Letter 2019-01, FHA revised its requirement for employment, income, and asset accounts to permit the use of TPV services. MWF Wholesale will follow the guidance per the FHA revisions effective immediately and will accept third party verification services. Read the MWF wholesale bulletin for details.

Freedom Mortgage Wholesale has implemented new loan registration and disclosure instructions on VA Cash-Out Refinance Loans for Table Funding Brokers effective immediately. The new VA cash-out Refinance Disclosure is now included with Freedom Mortgage’s electronic LE disclosure packages. Brokers are cautioned to input accurate data in these new data fields. These data fields do not include any logic that will auto correct typos or other data errors. Discrepancies between data used in the new disclosure and in the system may result in delays.

Ditech Financial has revised appraisal and LTV guidelines for VA Interest Rate Reduction Refinance Loans (IRRRL). Appraisals are now only required for IRRRLs that refinance a VA fixed rate mortgage into a VA Adjustable Rate Mortgage (ARM). LTV limits based on whether discount points are charged will apply only to fixed rate to ARM IRRRLS. Appraisal reports for fixed rate to ARM IRRRLs must not be ordered through WebLGY. Reports may be exterior-only or full appraisals and repairs do not have to be completed prior to closing. Contact ditech for LTV requirements applicable to fixed rate to ARM IRRRLS when discount points are charged.

NewDay USA’s Operation Home works with brokers across the country to help military first-time homebuyers not only use their VA loans for no money down and no PMI but to arrange seller concessions so that VA borrowers can purchase a home and not take $1 in closing costs out of their pockets at the settlement table. Operation Home is for all VA borrowers, not just first-time military homebuyers.

All VA loan transactions delivered to AmeriHome must be eligible for VA guaranty. Therefore, VA Cash-Out Refinance transactions now must comply with The Economic Growth, Regulatory Relief, and Consumer Protection Act and the interim final rule (AQ42).

Capital Markets

Do yield curve moves cause expansions or recessions? Of course not. Some will tell you that an inverted yield curve indicates the coming of the Apocalypse, or at least a recession. Hardly. U.S. Treasuries experienced a slight yield curve flattening during their rally Wednesday (agency MBS prices were nearly unchanged) as weakness in global equities poor credit creation in China had markets worrying the impact of stimulus is diminishing. Additionally, Spain’s Industrial Production in March posted a negative figure well below expectations. President Trump said he received a letter from China's President Xi Jinping, and the two will have a phone conversation soon, indicating lines of communication remain open despite today’s tariff hike.

Besides another round of U.S./Chinese trade war, this morning we’ve had the April Consumer Price Index report (+.3%, core +.1%). And there’s some Fed speak, with Fed Governor Brainard, Atlanta Fed President Bostic, New York’s Williams all taking the stage. With China news grabbing the headlines we begin today with Agency MBS prices up .125 and the 10-year yielding 2.43%.


Employment and Personnel Moves

Fourth time is a charm! Evergreen Home Loans™ is proud to announce that for the fourth year in a row it has been named a Best Workplace in the Financial Service and Insurance industry by Great Place to Work® and Fortune magazine. Evergreen ranked #3 in the medium size business category, with business size determined by the number of employees. The rankings are determined by anonymous associate surveys conducted by Great Place to Work® Institute Inc. In the survey, 96% of associates said they’re proud to tell others they work at Evergreen. Offering a range of financing solutions, Evergreen helps more customers find home and more loan officers grow their business and is always seeking new talent to join Evergreen’s family: Information can be found on the careers page. Great Place to Work® is a registered trademark of Great Place to Work® Institute Inc.

Franklin American Mortgage Wholesale Lending, our Account Executives are the heart and soul of what we do, providing best in class industry knowledge and a hands-on approach to developing relationships as we grow with our valued business partners. A division of Citizens Bank, N.A., we provide the tools and support that our AEs need to make an impact in today’s competitive marketplace. We are looking for Account Executives in Austin/San Antonio, TX; UT; OK; WA; OR; Los Angeles, CA; CO; and Chicago, IL to join our team and take their careers to the next level. If you’re ready to join a team that’s focused on your success and the success of our business partners, please email Jennifer Rader, VP, Head of Talent Acquisition – Home Mortgage to get started today.”

Are you looking to grow your career? NewRez, formally New Penn Financial, is a national lender backed by a well-capitalized publicly traded parent company seeking multiple operations and underwriting positions to support growth: seasoned underwriters, underwriter team leads, condo project review analysts, wholesale credit analysts, wholesale processors, closing managers, closers, wholesale loan setup & disclosure analysts, wholesale operation managers, team leads, and client relations representatives. Positions are available in Concord, CA, Milwaukee, WI, Atlanta, GA, Mt. Laurel, NJ and Plymouth Meeting, PA. “It is an exciting time to join NewRez,” says Dena Kwaschyn, Chief Fulfillment Officer. “We have implemented cutting-edge technology with a focus on automation and improved processes, heightening our productivity – and taking your career to the next level.” Signing bonuses available for the right candidates in certain roles. Contact Vince Daino, VP of Recruiting to “Rise with NewRez!”

PRMG Retail continues to expand its national footprint by opening 3 new branches during the month of April!  Along with the drive and ambition to bring the American Dream of Homeownership to all cities across the country, PRMG has now opened its doors in Towson, MD; FL and Moreno Valley, CA! Ranked No. 1 for mortgage companies employing over 500 employees by Mortgage Professional America (MPA), Voted TOP 5 of the 50 Best Companies to Work for in America, NMP Visionary Organization 2017, CAMP Corporate Affiliate of the Year 2017, TOP 25 of 100 Mortgage Companies in America, Top 25 Companies to Work for Minorities and Women by NAMMBA and MORE! PRMG is Built by Originators for OriginatorsTM and is devoted to continuously growing their retail platform. If you are a Motivated Loan Originator who wants to be Progressively Better, contact Chris Sorensen (909.262.0452).

Northpointe Bank, a top performing bank in the nation, has hired a senior vice president to lead its capital markets and other key residential lending functions. Bryan Neitzelt has been named as Senior Vice President, Capital Markets. In this leadership role, Neitzelt is responsible for enterprise-level financial risk management of Northpointe’s nationwide residential lending business; including interest rate risk hedging, securitization, portfolio asset management and investor relations. Previously, Neitzelt was VP of secondary marketing for The Huntington National Bank. Over the past 22 years, he has been responsible for mortgage loan risk management. Neitzelt holds a BA in business administration/finance as well as a master’s degree in business administration from Otterbein College. Member FDIC. Equal Housing Lender.

MQMR has hired Jeff Christensen as VP of Sales responsible for leading sales, driving new business opportunities and expanding awareness of the MQMR brand in the market. Congrats!