For me this week and last includes time in Knoxville, Las Vegas, Portland, Northern California, Colorado, and Salt Lake City. The mood? Besides plenty of lenders wondering if they should hit their broker-dealers up for margin calls given the 3-point sell off this month (the opposite of Brexit), in general lender management is watching the potential regulatory changes, the potential of the CFPB’s methods being fixed, and the double whammy of higher rates going into the winter. The mood is good, but cautious, as lenders continue to help their clients. And loan officers are viewing “digital mortgages” (precise definition vague) as a tool rather than a threat.

Turning to program news, yes, Ginnie Mae's security issuance has passed Freddie Mac. This week's FHA Actuarial Report is expected to show continued improvement in the capital ratio of the Mutual Mortgage Insurance Fund which could result in a further cut to MIPs (mortgage insurance premiums) ... or not. We'll see! Regardless, despite some big players vacating the FHA lending space, others have certainly welcomed the increased FHA market share with open arms. And these lenders & investors continue to make changes to both FHA and VA programs.

PennyMac posted new requirements regarding Six Month Payment History for All VA IRRRL Transactions.

Mountain West Financials' FHA and VA transactions will be required to be priced under the "direct" product, when a PACE/HERO loan is being subordinated.

FHA made changes to the FHA Calculator which resulted in a change to the calculation of the Loan LTV (not the MIP LTV). The use of the FHA 203(k) online calculator is required with case numbers ordered on or after October 31^st. Review the M&T Product Page(s) for guidance.

The following eligibility clarification for VA Loans underwritten by ditech under the Agent - Sponsoring Lender relationship have been posted. VA joint loans are not eligible. A loan is considered a joint loan in any of the following circumstances: The veteran and one or more non-veterans (who is not the veteran's spouse). The veteran and one or more veterans (who is not the veteran's spouse) who will not be using their entitlement. The veteran and one or more veterans (who is not the veteran's spouse), all of whom will use their entitlement (e.g., two unmarried veterans). The veteran and the veteran's spouse (who is also a veteran) and both entitlements to be used. The veteran and the veteran's spouse will not be treated as a joint loan if the spouse is not a veteran or is a veteran who will not be using his/her entitlement on the loan.  ditech also expanded eligible loan terms for VA fixed rate loans. Previously restricted to five year increments, loan terms from 10 to 30 years in annual increments are now available.

Plaza now accepts Manufactured Housing on most of its Conforming Balance Conventional, FHA, VA, and USDA programs. All homes must meet all applicable agency guidelines and Plaza's Manufactured housing guidelines.

Pacific Union Financial, LLC is updating the seasoning requirements for FHA, VA, and USDA streamline refinance transactions in response to the recent GNMA memorandum (APM 16-05) regarding new pooling requirements for loans seasoned with less than six consecutive monthly payments. Effective with loans locked on or after November 8, 2016. A minimum seasoning requirement of six consecutive monthly payments prior to the application date will be required for the following streamlined refinance transactions: FHA Streamlined Refinance (Simple Refinance, Credit Qualifying and Non-Credit Qualifying), VA Interest Rate Reduction Refinance Loans (IRRRL), USDA Streamlined Refinance (including Streamlined-Assist.  

Effective for all VA IRRRL loans submitted to SunWest after November 4th, 2016, the following requirements must be met. Mortgage must have a minimum of six consecutive months of mortgage payments without any late payment. Payment cannot be prepaid to meet the seasoning requirement. Maximum recoupment period is 120 months for ALL VA IRRRL products. Minimum FICO of 620 remains unchanged. Lock extensions and re-locks are not allowed if the loan does not fund by December 31st, 2016.

HUD issued formal guidance to Public Housing Authorities (PHAs) and others participating in the Department's Rental Assistance Demonstration (RAD)  on how to meet their fair housing, civil rights and relocation obligations during all phases of RAD's conversion process.  Read HUD's notice.

Flagstar's recent announcement focused on the recent Ginnie Mae change to pooling requirements. All VA IRRRLs must meet VA's Interim QM Rule. Accordingly, credit qualification loans where the borrower has not made a minimum of six consecutive monthly payments on the VA loan being refinanced are no longer eligible. The borrower cannot prepay payments to satisfy the six consecutive monthly payments requirement.

Looking at the bond markets, fixed-income securities took sharp losses Monday - on no new news aside from what we had last week. It now looks likely that Steven Mnuchin will be nominated to be the next secretary of the Treasury. The various presidents of the Federal Reserve districts continue to talk about a rate increase next month - what else is new?

Cash treasury prices began the day lower (worse) following the selloff in futures on Friday, and ended Monday nearly 1 point worse than Thursday's official close.  We had, as a proxy for the general interest rate environment, the 10- and 30-year year yields to yields of 2.30% and 3.07%, respectively, both just below the 1-year highs of last December. Current coupon Fannie 3% securities are off/worse 3 points in the last two weeks. 

But this morning we've already had some non-election news, and the numbers show a strengthening economy: October Retail Sales and Retail Sales ex-auto (+.8%, much higher than expected), October Export Prices ex-ag. and Import Price ex-oil (+.2%, +.5%), and November Empire Manufacturing (+7.7). Coming up are September Business Inventories. We closed Monday with the 10-year yielding 2.22% and after the initial round of news, despite the strength, it is at 2.21% with agency MBS prices better than Monday evening by roughly .250.

Vendor News

Lendsnap was selected among leading mortgage technology providers to demo their unique platform live at the Digital Mortgage Conference in San Francisco on December 8th. Lendsnap will be on stage showing a live demonstration of their unique account aggregation technology that retrieves borrower documentation during mortgage application (W2s, pay stubs, bank statements, and tax returns). As the only service to automatically gather asset and income data and authentic qualifying documents (not just VOD's), Lendsnap offers account aggregation technology that fits how you originate and enhances your portfolio liquidity. The Lendsnap solution is lightweight, easy to implement with existing processes and procedures, and has passed the rigorous SOC I Type II auditing process for 2016. We are live with lenders across the nation, and please contact Mike Romano to learn more.

United Wholesale Mortgage has introduced an automated suite of tools that bypass submitting hard copies of documentation needed for loan approval. Following an automated income verification tool that was released less than one month ago, this latest platform includes automated asset verification and tax returns, further enhancing the doc-less loan experience provided by UWM. Aimed at creating a greener, hassle-free process for brokers to make sure their borrowers no longer need to chase down pay stubs, tax returns, or bank statements. All of that will be done behind the scenes and verified by UWM. It is a system that seamlessly and securely links to existing databases to automatically verify income, assets and tax returns. The doc-less movement pairs with UWM's already available e-sign technology to eliminate the need for borrowers to wet sign documents. This will significantly change the way that loan officers and processors do business - taking what previously took days will now take minutes.

Fannie Mae named AccountChek by FormFree its first designated vendor for asset verification, extending reps and warrants relief to lenders who use AccountChek through Fannie's Desktop Underwriter Validation Service. Guild Mortgage has chosen its AccountChek asset verification service for automated borrower asset review and decision support. AccountChek eliminates the hassle of collecting bank statements and other asset documents for loans by empowering borrowers to submit their financial data directly to lenders in minutes using a secure app.  

Seroka, a brand development, digital and strategic communications agency, and NAHREP Consulting Services (NCS), the consulting arm of the National Association of Hispanic Real Estate Professionals, have formed a professional alliance whereby both firms' services will be made available to each other's clients and the mortgage industry. It will help the industry meet minority compliance requirements and reach Hispanics, the country's largest demographic of new homeowners. The alliance was formed, in part, as a tacit acknowledgement of the industry's minority compliance requirements, and to help the mortgage industry reach Hispanics, the country's largest growing demographic of new homeowners. Hispanics have made significant homeownership gains: last year they accounted for 69 percent of the total net growth in U.S. homeownership; and they were the only major racial group to increase their homeownership rate in 2015.

Jobs and Announcements

As featured in Mortgage Banking Magazine, XINNIX's "Profile of Today's New Originator" reveals valuable information for where you can find your next rookie Loan Officer. We surveyed 800 of our alums from the new Loan Officer training program, ORIGINATOR, to ask questions such as "How did you enter the industry?" and "How can managers better recruit rookies?" Download your complimentary copy today!

Many lenders have expressed a need for information around the best and most efficient ways to train their employees. To address these questions from lenders, STRATMOR has launched their November Spotlight Survey: Lender Training Programs and Practices. The survey will address methods used to train employees and how often training is offered by topic and method. The survey will also include information on the expenses involved, how effective training programs are for employees and more. This survey was launched on November 10th and will remain open through December 16th. If training is top of mind for you too, please click here to participate in this survey.

CalyxSoftware "connects loan officers and processors to borrowers, lenders, and service providers, using technology which allows all parties to exchange data easily. This seamless interaction, coupled with the robust features in the Calyx product line, increases efficiency and maximizes profitability by enabling more loans to close more quickly. Currently, we are searching for a new Marketing Director in our Dallas office." Learn more about Calyx and the opportunities; confidential inquiries can be addressed to Jo Baker.

CMG Financial continues its Retail expansion with the addition of two new sales managers. Michael Pancoast joins as the Area Sales Manager of the Mid-Atlantic Region to facilitate further growth in Pennsylvania, New Jersey, and Delaware. "He has developed strong relationships in the mortgage lending industry and plans to bring those connections to CMG Financial. Michael Muffoletto joins as the Southeastern Regional Manager to facilitate CMG's growth in Georgia, North Carolina, and South Carolina. Previously, he owned and operated his own branch office and has also held positions as a regional manager and as a national director.

CMG welcomes Michael Pancoast and Michael Muffaletto to our Retail sales management team and we look forward to assisting their growth efforts. If you are interested in joining the growing Eastern Division team, please contact recruiting@cmgfi.com."

What's the number one reason loan officers and branch managers consider leaving their current lender? "It isn't compensation," says Assurance Financial. "It's lack of support from the home office, and the most important part of that support is closing loans on time." Assurance Financial is committed to making sure each of its LOs and branch managers succeeds through superior technology, an excellent CRM program, corporate marketing dollars allocated per branch, ongoing training resources and the best back office support in the business. The company is selectively seeking Producing Branch Managers and Experienced Mortgage Loan Originators. If you'd like more information, reach out to Paul Peters, CMB (225-239-7948) or visit lendtheway.com/careers.