Economists call it "wage source". In a nutshell, it's how you obtain your cash. Many work in order to fill their bank accounts; however, in the coming years, as more and more Americans migrate from baby boomers into retired baby boomers, that source of income will change. As Wells Fargo's Economics Group write, "Wages and salaries remain the primary source of income for households, but the share has shrunk in recent decades amid a changing economy, demographics, and legislation. In 1980, wage and salary disbursements accounted for 59 percent of personal income, but that share has fallen to 51 percent today." So over the last thirty years 8% less Americans are deriving their income from working? There's no doubt a sociological study is contained somewhere in Wells Fargo's paper...and probably a few arguments as well.

It is hard to be a residential lender without a) having in-house legal counsel, or b) outside retained legal counsel, and c) following legal events around the nation. The FDIC recently released a list of orders of administrative enforcement actions taken against banks and individuals in April. The FDIC issued a total of 31 orders and one notice. The orders included: two consent orders; two prompt corrective action directives; eight removal and prohibition orders; three section 19 orders; one civil money penalty; one order amending order to pay; 14 orders terminating consent orders and cease and desist orders; and one notice. Everyone can take their much needed summer vacation this month however, the FDIC has announced that no administrative hearings are scheduled in June.

Yesterday the U.S. Supreme Court has agreed to weigh a dispute over whether mortgage loan officers are exempt from minimum wage and overtime pay regulations.

Disparate impact; the term is starting to become a cliché of itself, as nothing gets resolved and we continue to ebb and flow in the litigious king tides of the U.S. Court system. Now, the U.S. Supreme Court could have a third opportunity to hear a disparate impact case since 2012, which would provide clarity with respect to disparate impact claims under the Fair Housing Act and the Equal Credit Opportunity Act. Ballard Spahr writes, "...two prior cases raising that issue, were both settled before oral argument was held in the Supreme Court. The case, Inclusive Communities Project v. Texas Dep't of Housing, involves a FHA challenge to the allocation of low-income housing tax credits. On appeal, the Fifth Circuit adopted the burden-shifting approach found in HUD's disparate impact rule adopted in February 2013 that formalized HUD's use of disparate impact liability under the FHA." Let's hope a 'third time is the charm', as much in the industry hinges upon a future court ruling.


Regional and local training and events

The Mortgage Bankers Association of Kansas City is offering a 2014 VA Home Loan Seminar with the help of its event sponsor Stonegate Mortgage. "Representatives from St. Paul Regional Loan Center will address updates & changes, appraisal issues, overview of the VA home loan program, getting the guaranty/post-guaranty issues, etc. It is Wednesday, June 18th, at the KU Edwards Campus, BEST Building Room 230 (12604 Quivira, Overland Park) from 8:30 through noon, and at a cost of $90 for members and $105 for non-members. For more information, contact Dana Shawgo.

(As a quick aside, demand for loans guaranteed by the Department of Veterans Affairs has sparked a "bidding war" for VA underwriters. Many VA underwriters work as contractors and will jump to another shop when offered higher pay, and lenders are training its FHA and conventional loan underwriters to do VA loans. Certainly we've seen lenders and investors such as Wells, Citi and others easing underwriting standards and overlays on VA loans.

TILA/RESPA Integrated Disclosure coming soon... CFPB is addressing the new rules today, June 17 at 2PM EST with a webinar on the TILA-RESPA Integrated Disclosure rule. The webinar will be hosted by the Federal Reserve. Topics of discussion will be an overview of the final rule and the new disclosures and address some basic compliance questions. This will be the first in a series of webinars to address the new rule as creditors, mortgage brokers, settlement agents, software developers, and other stakeholders work to implement it over the next year.

(Read More: Lenders Invited to Webinar on GFE/TIL Changes)

On June 18 Ginnie Mae invites its Investor Community to participate in a 2PM EST conference call to discuss recent and upcoming Ginnie Mae Data Disclosure topics.

Prospect is offering a series of REAL Live! sessions featuring to real estate agents offering tips to LOs. There is one Thursday in San Diego from 9-12 at the DoubleTree by Hilton San Diego - Mission Valley, 7450 Hazard Center Dr., for example. "Prospect's Real Estate Agent Learning program (REAL) invites Agents to these live events featuring top Agents giving their advice and strategies for building multi-million dollar real estate businesses. Todd Duncan, NY Times best-selling author, will interview the panel and will speak on supercharging your productivity. Seats are limited to the first 250 Agents per event." They will also be in Phoenix on June 24 (JW Marriott Scottsdale Camelback Inn Resort), Los Angeles on June 26th (Skirball Cultural Center, 2701 N. Sepulveda Blvd.), Tuesday, August 5 in Chicago (at The Carlisle, 435 E Butterfield Rd., Lombard).

Plaza Home Mortgage is hosting a Complimentary Webinar - Appraisal Review: Analyzing the 1004, presented by Essent Guaranty, Wednesday, June 18, 2014.

"Did you know many affiliated title companies and mortgage companies are operating in violation RESPA? Not knowing the rules is no excuse! Learn how to do it legally. Dos and Don'ts of RESPA Section 8. Examples of RESPA violations are: Paying, providing or receiving free continuing education to/from real estate agents, lenders, attorneys, title companies and MI reps. Sending flowers to a real estate agent, attorney, lender, MI rep or title company rep, thanking them for a referral, paying for or receiving free golf, sporting event tickets and raffle tickets, paying for a real estate agent's marketing/advertising costs, renting a closing room, office or desk by the hour or on a per deal basis. Join the OMBA for its exciting speaker today from 1-3PM in Columbus. Washington DC attorney, Phil Schulman, K&L Gates, is a nationwide expert on Section 8 of RESPA. Phil is the former Assistant General Counsel of the Inspector General for the U.S. Department of Housing and Urban Development. Phil makes this 2 hour training fun and interesting. Register online: Online registration.

Colorado Mortgage Lenders Association is offering a Complimentary ATR/QM Webinar - MBA Compliance Essentials FREE Webinar on Thursday, June 19, 2014 at 2-3PM EST. "Learn how you can train your full staff on the new ATR/QM rule in just 90 minutes at a low cost. MBA Vice President and Regulatory Counsel, Ken Markison, Esq., and MBA Education's Director of Business Development, Mike Wheeden will discuss the new MBA Compliance Essentials ATR/QM Rule Web Course, which is the perfect way to get your team up to speed (with proof of training) on this important rule. Registration information: Free Webinar."

Yup, not much going on with rates - we have enough other stuff going on, right? Yesterday we had a set of "2nd tier" numbers that showed the U.S. economy continues to grind higher. The Empire State Manufacturing Survey improved significantly for a second consecutive month. Industrial Production and Capacity Utilization both improved. And the Home Builders' Confidence Index came in at 49, its first gain since December.  "After several months of little fluctuation, a four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry," said NAHB Chairman Kevin Kelly.

Mortgage rates are pretty much determined by supply and demand, and Monday the demand for agency MBS outpaced the supply of agency MBS. (Thanks to QE, the Fed is in every day to the tune of $2-2.5 billion. If you'd like to do your own research visit the Fed.

Today, traders and capital markets folks will concern themselves with May's Consumer Price Index (expected flat to slightly lower), and the May Housing Starts and Building Permits duo. In the very early going, the 10-yr T-note is basically unchanged (at 2.60%) as are MBS prices.


For lenders looking for a new correspondent investor, AmeriHome Mortgage Company, LLC, an emerging full service player in the correspondent market is positioned to go live with its second market expanding non-agency product in as many months. In addition to the recently announced Expanded Program (key features include 600 and above credit scores, up to 83% LTV, and requires only 2 years out of bankruptcy or foreclosure), management is planning to release in July their new Core Jumbo Program (up to $2.5 million, max 80% LTV and min 680 FICO) offered as a 5/1 ARM with an interest-only option: yes, that is correct - a non-broker Jumbo I/O product.  John Hedlund, AmeriHome's Head of Correspondent Lending, recognizes the current state of the market and the need to provide borrowers and Mortgage Bankers with more options. "At AmeriHome our objective is to become a trusted and valued partner to our clients. Part of that commitment, in addition to being fast and easy to do business with, is developing additional products for originators to grow their market potential and revenue opportunities". For more information on these products and how to become an approved client with AmeriHome, please reach out to AmeriHome's Sales Executives Chris Maturo or John Hill

Here is something a little off the beaten path for someone good at sales but is a little weary of mortgages. Due to continued growth, Inheritance Funding Company, Inc. is looking to hire an additional Funding Officer for its San Francisco Financial District home office. Inheritance Funding Company, Inc. (IFC) has provided heirs waiting for their inheritance distribution with capital advances for over 20 years. "With over $100M advanced to heirs in all 50 states, IFC is the oldest and largest purveyor of inheritance advances in the country. With continued growth in this lucrative sector, IFC is looking to hire the right talent to catch up with increased demand. Inheritance/Probate experience is neither expected nor required though some understanding of legal process is a plus. The right candidate will showcase a blend of sales expertise, analytical reasoning, and strong client communication skills. Competitive base salary and uncapped incentive pay for strong performers." Send all resumes and inquiries to Eric Holdsworth, VP of Marketing at eholdsworth@inheritancefunding. com.