Harvard research finds that Americans will spend $316B remodeling their homes in 2017 vs. $296B in 2016. This also compares to a low of $222B (in 2009) and a high of $334B in 2006 (and adjusted for inflation). And many lenders have products to help!
Documentation and Policy Changes
Before I forget, and to clear up any confusion regarding yesterday's note about Pacific Union Financial...The company is eliminating the current Stand Alone Down Payment Assistance (DPA) Policy and replacing it with a new DPA Approval Policy. The updated policy allows Pacific Union Underwriters to approve DPAs that meet the following requirements: No outlay of funds by Pacific Union is required, lender approval to participate is not required, and all documents and disclosures are provided by the DPA provider. This policy is not applicable to Delegated Correspondents. When submitting a loan in which a DPA is utilized, the Seller must represent and warrant that the DPA meets the requirements for the applicable loan program.
A while back Mountain West Financial told everyone that the Golden State Finance Authority (GSFA) Platinum Grant Program locks will be available for 30-day lock periods only. "It is highly recommended that Platinum files be approved prior to locking. As a reminder, Platinum programs are not eligible for MWF's standard extension and relock policies. If an extension is needed, please contact the lock desk for eligibility and pricing. The option to extend is determined by GSFA and may not be available for all loans."
As of June 30th, ordering Flagstar closing documents for second mortgages was updated. Closing documents for Broker Transactions must be ordered through Web-Based Closing Documents (WBCD) and will close with the same closing name as the first mortgage loan. Correspondent Transactions Closing documents may be ordered through Flagstar's Web-Based Closing Docs (WBCD) service available in Loantrac, or they may be prepared through the document vendor of your choice. For documents obtained outside of WBCD, Correspondents are fully responsible for ensuring closing documents are valid and legally enforceable in the jurisdiction where the property is located. All second mortgage loans will close in the name of the correspondent.
PennyMac's announcement explains its update to Principal Balance Purchased - Payment Amortization Policy.
Mortgage Solutions Financials' conditions@mortgagesolutions.net email box was deactivated. All conditions communications should be routed directly to the assigned TPO Processor's (FKA CAM) personal email.
The "Online Doc Order Form" from Plaza has been enhanced to allow users to save data and return to the form later time to complete and submit.
Check out the NYCB Mortgage Banking rate sheets to view LLPA improvements and updates, effective for loans locked on or after 07.07.17, for Jumbo Fixed 30 Year and Jumbo Standard ARM products.
Effective with new loan applications dated on or after July 2, 2017, fees charged to the Veteran must be listed in the "Borrower Paid" column of the CD. Seller credits must be entered in the "Seller Paid" column. Lender credits are to be listed in the "Paid by Others" column. Borrower closing costs, paid for by either the seller or lender should be placed in either the "seller paid" or "paid by others" column as appropriate. A separate addendum list will not be permitted. M&T will audit all close loan packages for compliance.
FAMC's Loan Delivery Transmittal has been updated and should be used as a guide for delivering closed loans to FAMC. The transmittal is not considered an all-encompassing list of required documentation. Also, as published in the TILA- Ability to Repay and Qualified Mortgage chapter of the Correspondent manual, FAMC policy requires the entire amount of borrower-paid, single premium mortgage insurance to be included in the Points and Fees test.
The AmeriHome Mortgage seller guide has been updated with the following MERS clarification: Non-MOM Mortgage Loans must be registered with MERS prior to purchase by AmeriHome and in accordance with MERS requirements (as set forth in the MERS Procedure Manual), including that a Non-MOM loan must be registered no later than seven (7) calendar days after the Assignment to MERS (or UCC-3) was executed. In addition, the seller guide has been updated to add a new section regarding remote notarization as well as a new section for servicer related reimbursement requirements.
Upcoming Events
Don't miss the California MBA MTAM Committee's next free webinar on August 10th: "Crush your lead sourcing and management strategies." At 11AM next Thursday the webinar features Adam Stein, CEO, LoanTek, LLC and Chris Backe, Director of Business Development with Velocify.
American Mortgage Law Group (AMLG) in collaboration with the Community Mortgage Lenders Association (CMLA), co-hosted "HMDA 2018 Changes: Are Ready" and have provided a copy of the webinar. To access a recording of the webinar click here.
In addition, American Mortgage Law Group (AMLG) in collaboration with the Community Mortgage Lenders Association (CMLA), has provided its highly popular webinar "The Loan Originator Compensation Rule in 2017: Updates and Developments". To access a recording of the webinar click here.
SunWest Mortgage Company released its webinar schedule for August. Register for: What is a reverse mortgage and how do they work on August 8th, FHA Guideline training August 14th, USDA information and training on August 24th, The VA loan program and guidelines on August 25th.
The July 29 release of Desktop Underwriter® (DU®) 10.1 provided new enhancements. Validated income and employment for borrowers with both self-employment and base, bonus, overtime, and/or commission income when using the DU validation service. Eligibility for Property Inspection Waivers (PIWs) for Desktop Originator® (DO®) loan casefiles underwritten using Preliminary Findings and updated PIW eligibility messages. Allowable LTV, CLTV, and HCLTV ratios for adjustable-rate mortgage (ARM) loans will be aligned with fixed-rate mortgage ratios up to a maximum of 95%. For more details on the DU 10.1 release, review the Release Notes and register for an upcoming webinar.
Capital Markets
Freddie Mac announced that beginning August 28 it will release updated disclosures providing standardized loan-level and pool-level data for all its PCs. The GSE said the disclosures are being implemented in connection to the Single Security Initiative and in preparation for the launch of the uniformed mortgage-backed security (UMBS) which is expected in Q2 2019. In the press release, Freddie Mac said "Securities dealers, investors and data vendors should review the new disclosures to understand whether they need to make changes to their systems, software and/or processes."
Jumbo deals? They're out there! Flagstar Bancorp, Inc. has closed its securitization of $444 million of residential mortgage-backed certificates (RMBS) issued by Flagstar Mortgage Trust 2017-1 (FSMT 2017-1). The certificates are supported by 668 jumbo prime (75%) and high-balance conforming (25%) loans. The pool comprises loans Flagstar originated through its retail, broker and correspondent channels. Among other attributes, the collateral pool consists of high balance conforming and jumbo fixed-rate Safe Harbor Qualified Mortgage loans. The pool has a weighted average FICO score of 771 and an original combined loan-to-value ratio of 63.5%.
Certainly, pricing and demand in the secondary markets impact pricing to borrowers in the primary markets. The MBA concludes that its proposed plan for housing going forward, overall, will have little impact on consumer borrowing costs. The biggest change would cement the explicit guarantee for GSE MBS by the government. This will push down rates and increase demand, if bank regulatory capital requirements will treat the new GSE MBS the same as GNMA MBS. In other words, banks can treat GNMA MBS as Treasuries and require no capital against them. FNMA MBS have a 20% hit.
On the other side of the coin, there will be additional fees earmarked for affordable housing and possibly increased guaranty fees to protect the taxpayer. There will have to be a debate over how big the credit box will be, and affordable housing types will argue it should be bigger while taxpayer advocates will want it smaller. Overall, MBA thinks it will be a wash when it comes to mortgage pricing.
For bonds - well, Thursday saw another rally as debt markets seem to remain unconvinced that our economy deserves higher rates. In fact, the 10-year T-note yield is back to where it was in June! No LO complains about rates - they're focused on down payments, programs, and wondering if there are any properties for their pre-approved borrowers to buy. That aside, the 10-year closed at 2.23% due to a dovish monetary policy statement including downgrades to growth and inflation outlooks from the Bank of England, and agency MBS prices tagged along and improved about .125.
This morning, however, we've had the Bureau of Labor Statistics' initial employment numbers for July. Nonfarm payrolls, expected +180k, was +209k, with a June revision higher. The unemployment rate was expected to drop to 4.3% and came in there. And average hourly earnings were expected to increase slightly, which it did at +.3%, with the average work week holding unchanged at 34.5 hours. We also had some trade numbers - always lost in the shuffle - that showed the June trade deficit narrowed. After this volley of numbers we find rates higher versus yesterday's close: the 10-year is yielding 2.25% and agency MBS prices are worse .125-.250.
Jobs and Products
Down Payment Resource reports that, "We've had calls expressing concerns about the potential impact of Freddie Mac killing 1% down payment programs. This announcement only affects the proprietary grant programs developed by specific lenders such as the ones listed in the story. Lenders who participate in the roughly 2500 DPAs, grants, MCCs and other affordable lending programs offered by local and state HFAs and nonprofits can still offer grants and down payment assistance programs provided by Housing Finance Agencies and nonprofits. As always, the assistance program must meet the guidelines set forth by whoever they plan to sell the underlying first mortgage product to whether Freddie, Fannie, FHA, VA, or USDA. In other words, it's business as usual for 99% of the programs found at DownPaymentResource.com."
Loan Vision creators, Bestborn Business Solutions, have been inducted into the Microsoft Dynamics Inner Circle, an elite group of Microsoft partners recognized for outstanding achievement in innovation, sales, and superior commitment to service. The mortgage accounting technology firm has earned membership for the 2017-2018 year and is recognized as one of only 60 Microsoft Dynamics partners, globally, to earn the award. "Early access to Microsoft's functionality launches and latest updates gives us a highly competitive edge," said Igor Pchelnikov, CTO at Loan Vision. "This membership creates even more opportunities for our team to leverage technology to better serve the mortgage industry." Loan Vision offers enterprise level accounting and business management functionality in one industry focused solution. For more information contact Carl Wooloff at (724) 216-5266.
The good word is spreading about Inlanta Mortgage, Inc., as the company has experienced significant growth adding 7 new branches since the first of the year with 6 new branches coming on board in the last quarter alone. Inlanta has expanded their presence across the U.S. with new locations in Indiana, Florida, Texas, Colorado, Illinois, and Wisconsin. SVP of Business Development, Chad Gomoll, says "We are excited to have the level of talented people that have joined us this year. The expansion of our company is not for the sake of just growing, but to find inspired, talented individuals that can thrive in our company culture and see the value we offer". If you are interested in growing your career with Inlanta, contact Chad directly (262.439.4260), our RVP, Brian Jensen (630.927.0380) for opportunities in the Midwest, our RVP, David Williams (303.947.1960) for opportunities in Texas & Colorado, or, our Regional Production Manager, Kevin Laffey(913.645.4647) for opportunities in the KS, MO, and IA markets.
PRMG Retail continues on a path of growth with the opening of 4 new branch locations during the month of July! 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 Camarillo, CA; Roseville, CA; New Haven, CT; and Revere, MA. PRMG is devoted to growing our retail platform and is always looking for Motivated Loan Originators to support our mission to being "Progressively Better in All that We Do". Voted No. 1 of the 50 Best Companies to Work for in America 2015, No. 1 Best in the Desert 2017, NMP Visionary Organization and TOP 25 of 100 Mortgage Companies in America! PRMG employs over 1,400 people! If you're ready to join a top-tier team and company then we need to talk! Contact Chris Sorensen at 909.262.0452.
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