In reviewing Fannie MORA and Freddie CORE reviews it's clear that seller/servicers continue to struggle with establishing and implementing an internal audit program. Mortgage Quality Management and Research, LLC (MQMR) works with lenders to complete three key components: 1. Initial risk assessment of the seller/servicer's organization as a whole, 2. An internal audit charter (policy and procedure and acceptance by the Board of Directors), and 3. Minimum 12-month calendar for performing ongoing audits of various departments, functions, and processes. Implementing these three activities is difficult to manage internally without having to hire a cadre of individuals with broad and deep subject matter expertise in areas such as compliance, originations, operations, quality control, vendor management, servicing, IT, HR, and many more. MQMR's internal audit division has been assisting seller/servicers in meeting their internal audit requirements whether fully outsourced, or supplementing the existing program that is in place. For more information on internal audit programs contact Britt Haven (818-940-1200 x104). MQMR will be attending the upcoming ABA Regulatory Compliance Conference in San Diego and the Mortgage Bankers Association of Florida Conference in Delray Beach, FL if you'd like to meet in person.
Isaac Boltansky with Compass Point Research & Trading reports, "There have been three notable GSE shareholder developments recently. On May 31 a number of trade and consumer groups sent a letter [see a few paragraphs down] to FHFA Director Mel Watt stating that they are 'deeply concerned' by the ongoing reduction in the GSE capital buffers mandated by the Third Preferred Stock Purchase Agreement (PSPA). The letter - which was signed by a group including CMLA, CRL, and NAACP - calls on Director Watt to 'suspend GSE dividend payments to Treasury, and require the GSEs to develop and implement capital restoration plans so they have enough capital to safely manage their business and to support America's housing finance system.'
"Second, on June 1 a group of 32 House Democrats sent a letter to FHFA Director Watt and Treasury Secretary Lew expressing their 'concern' with the capital buffer reduction at the heart of the Third PSPA and urges a reassessment of the arrangement. Although we do not believe administrative action altering the Third PSPA is imminent, these letters support our view that the policy conversation in D.C. is steadily moving toward a consideration of GSE capital retention.
"Third, on June 2 a multidistrict litigation panel denied the U.S. government's request to consolidate four GSE shareholder cases in a D.C. federal court. We view this development as a procedural positive for GSE shareholders as it lessens the downside risk of the upcoming Court of Appeals decision by preserving numerous alternative legal avenues and prevents the worrisome potential of Judge Lamberth hearing a consolidated set of cases. A decision in the Court of Appeals case is expected by August."
So yes, a joint letter from a collection of trade associations, such as the CMLA and CHLA, representing small lenders and affordable lending advocacy groups to FHFA Director Mel Watt. The letter urged Director Watt to order a suspension of the dividends that Fannie and Freddie are paying on the senior preferred stock held by the U.S. Treasury in order to permit the GSEs to rebuild their capital. "Our organizations are deeply concerned that under the Preferred Stock Purchase Agreements with the Treasury Department, the capital buffers of Fannie Mae and Freddie Mac will be completely eliminated by the end of 2017. This course of action is likely to destabilize the housing economy, undermine efforts to make housing finance more accessible and affordable, and drive up the costs of homeownership... Accordingly, we urge you to suspend GSE dividend payments to Treasury, and require the GSEs to develop and implement capital restoration plans so they have enough capital to safely manage their business and to support America's housing finance system."
Fannie Mae announced plans to release historical data in July on a portion of the company's loans modified due to delinquency (700,000 loans modified between 2010 and 2015). This data release provides the market with greater ability to analyze the performance of modified loans in support of the previously announced re-performing loans securitization program. "The market for Agency RPL securities is relatively new, and we are providing this information so that the industry can get an in-depth view of the underlying loan performance," said Bob Ives, Head of Retained Portfolio Asset Management, Fannie Mae. "This historical data release should allow for a greater understanding of these loans and enable better modeling which in turn should foster greater liquidity for these securities."
And Fannie recently announced a new business-to-business integration platform. This platform enables a standardized connection to Fannie Mae's technology applications, offering direct integrators and technology solution providers a simple, efficient, and reliable integration. The first service available on the platform will enable direct integration for submitting the Uniform Closing Dataset (UCD). A new UCD collection service will also launch in September 2016 to collect UCD files through a web-based user interface, providing a simple and streamlined delivery experience.
With all this going on, who needs rate volatility? Fortunately, after Friday's employment data fireworks, effectively removing a Fed rate increase this month from the table, it has been quiet. In fact, Tuesday, aside from a little intra-coupon and intra-security shifting, not much happened - although the price of oil is sliding higher. So I won't waste your time. At the close, the 10-year note was about .125 in price better (yield 1.71%) and agency MBS prices were a shade better.
Today we've already had last week's mortgage application stats from the MBA (up over 9% with refis +7% and purchase apps +12%). Ahead of us is the JOLTS April job opening numbers, and then a $20 billion 10-year note auction. Do you feel like tying up your money for 10 years and earning 1.71% the whole time? This morning the 10-year is at 1.72% with agency MBS prices nearly unchanged.
Training and Events
On Wednesday, June 15th at 1:00 PM EST, learn everything you need to know about LO Compensation, MSAs, and RESPA in a free webinar presented by XINNIX, The Mortgage Academy.The webinar will feature the mortgage regulation expert, Mitch Kider, Managing Partner of Weiner Brodsky Kider PC. This live webinar is complimentary, but registration is required. Click here to learn more and register.
Alight and the California MBA are inviting CFOs and senior finance executives to a networking event at the Ritz Carlton Laguna Niguel in Dana Point on June 23rd. This event kicks off the newly-formed CFO & Senior Finance Working Group that Alight and the California MBA collaborated on to elevate CFOs and their teams. Participants in this invitation-only group will share best practices, collaborate to find solutions for shared problems and challenges, and provide a unique and confidential sounding board for fellow members. This purpose-driven, content-rich working group is the first of its kind and will work to significantly raise awareness of the absolute criticality of CFOs and their teams in the successful, forward-thinking mortgage banking firm. To get your personal invitation to the event at the Ritz, contact Sandee McCready (415.813.1842).
The California MBA is presenting a webinar on...appropriately, earthquakes. The webinar, set for June 9, was developed under a collaboration between Blackstone Consulting LLC and AEI Consultants.
The New Mexico Mortgage Lenders Association's June 9th Luncheon is still available for registration.
Plaza Home Mortgage is offering a free webinar on Monday, June 13th in which you will be able to watch the tactical and information-rich webinar for how to effectively source, train, and assimilate Millennials into your business, so you can also begin to freshen up your sales team. (Interested in more Plaza webinars? Click here to view its June Calendar.)
Registration is now open for The Mortgage Collaborative's Summer Lender Member Conference, which will take place August 21-23 at the Four Seasons Hotel & Resort in Denver, CO. The conference will feature a powerful agenda filled with presentations from top industry leaders, relevant educational breakout tracks, and a series of peer-to peer networking sessions and events. For more information, contact Rich Swerbinsky.
Jobs and Announcements
Strategic Compliance Partners, LLC is seeking an experienced national sales consultant to meet the demand of its rapidly expanding business. SCP is a leader in mortgage compliance consulting, offering financial institutions full-service outsourced, attorney-driven, compliance management at an affordable fixed price. The consultant will enjoy unrestricted, uncapped sales potential, a generous compensation and benefits package and will work remotely from anywhere with the support of a collaborative, innovative team, and should have a successful sales track-record and relationships in the mortgage industry, a strong understanding of financial compliance, perform well in an entrepreneurial setting and possess a passion for new concepts that improve the businesses and lives of those we serve. Contact Annie Hager.
In lender operations job news, Ditech is expanding in Ft. Washington, PA, St. Louis, MO and downtown Jacksonville, Florida areas. Ditech, "one of the largest lenders is in the industry is looking for Processors, Closers, Underwriters, and Call Center Loan Officers (both incoming and outgoing - we provide the leads!) to join our fast growing team. Ditech is building a world-class culture that promotes, diversity, career growth and leadership development. In short, Ditech is ready to take the industry in a new direction. Please reach out to our Recruiter Carmen Mohan for more information on opportunities or go ahead and apply today at www.ditech.com and the team will be in touch!"
AmeriHome Mortgage LLC is pleased to announce Amanda Lewis is its Account Executive for the North Central Region (Colorado, Kansas, Missouri, Nebraska, Iowa, Montana, Wyoming, North and South Dakota). Amanda has been with AmeriHome Mortgage, a top 5 national correspondent lender, for almost a year focusing on building lasting client relationships with her deep knowledge and commitment to outstanding service. AmeriHome's rapid growth and overall customer satisfaction is the result of management's consist pricing, industry leading service levels and focus on true partnerships. For more information on setting up a relationship, please contact Amanda directly or call AmeriHome (888.469.0810).
In wholesale job news, Impac Mortgage Corp. Wholesale Division is ready to expand its team of Account Executives & Sales Managers. "If you want to offer a full line of products, from Govies to non-QM, be supported by exceptional underwriters, and be a part of a company that just celebrated 20 years in the industry, it could be a good fit. If you work smart, and know which details make all the difference to your clients, it could be a great fit. Where are you? MN, IL, TX, WI? The Carolinas? Georgia, New York/New Jersey, Florida? West Coast, Right Coast or in between, we'd like to hear from you. And, Todd Kesterson is all ears if you want to bring in your entire team, or have a great idea to pitch. And, word on the street is they'll be making some interesting non-QM product announcements soon."
On the retail side, Fairway Independent Mortgage Corporation has appointed Paul Fein, a seasoned leader in the mortgage industry, to serve as Vice President of Business Development for the Mid-Atlantic Region. Fein will work to establish a presence and grow retail mortgage production for Fairway throughout the region. "I chose to come to Fairway because of the philosophy that drives their sales team and is engrained in the company's culture," says Fein. "It is my goal to establish new branches that reflect Fairway's core values of respect, humility and a commitment to serve." Fein, along with the Fairway team, will work to hire branch managers and loan officers who are passionate about providing others with the dream of home ownership. New branches are planned to be established throughout New Jersey, New York, Virginia, Pennsylvania and Maryland. "Fairway is ready to grow and welcome new members to the family," says Kimberly Grim, Vice President of Fairway's Mid-Atlantic Region. "It is our hope that with Fein's expertise, we will be able to accomplish this."