Winter Will Bring a Flurry of Activity to the Housing Market

In the second half of this year, the housing market surged with activity. Today, real estate experts are looking ahead to the winter season and the forecast is anything but chilly. As Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), notes:

“It will be one of the best winter sales years ever.”

The typical winter slowdown in the housing market is simply not on the radar. Here’s why.

While today’s historically low mortgage rates are expected to remain low, they won’t be this low for much longer. This could be the last chance for homebuyers to secure such low rates, and they’re ready to take action. In a recent article, Bankrate explained:

“If you’re looking to buy a home…expect mortgage rates to remain low into 2021. However, the possibility of rates falling to 2.5 percent or lower has faded as the U.S. economy has rebounded.”

As long as we continue to see low interest rates, we’ll see hopeful buyers on the hunt for their dream homes. Yun confirmed:

“The demand for home buying remains super strong…And we’re still likely to end the year with more homes sold overall in 2020 than in 2019…With persistent low mortgage rates and some degree of a continuing jobs recovery, more contract signings are expected in the near future.”

The challenge, however, is the lack of homes available for sale. With that in mind, all eyes are on homeowners to see if they’ll sell this winter or wait until spring. Danielle Hale, Chief Economist for realtor.com, says it’s best for sellers to capitalize on this moment sooner rather than later:

“We currently see buyers sticking around in the housing market much later than we usually do this fall. If that trend continues, we will see more buyers in the market this winter, too. So, this winter is likely to be a good time to sell.”

With buyers ready to stay active this winter, sellers who want to close a deal on the best possible terms shouldn’t wait until spring to put their homes on the market.

Bottom Line

Experts agree the winter housing market could potentially be bigger than ever. Whether you’re ready to buy or sell, contact a local real estate professional today so you can be in your dream home by the new year.

The post Winter Will Bring a Flurry of Activity to the Housing Market appeared first on Keeping Current Matters.

Veteran’s Day: Correspondent, MLO jobs; transitions rampant; broker, AMC, marketing products; Freddie & Fannie in the news

The 11^th hour of the 11^th day of the 11^th month… Do the veterans in your life a favor by forwarding them this list of discounts around the nation. Speaking of the military, for those of you who say that you never learn anything from this daily commentary, did you know that George Washington is protected from being outranked by any other military officer, by law, even now. If we ever have a 6th star general, Washington would posthumously be promoted to a 7th star general to maintain the top rank. American Public Law 94-479 posthumously promoted Washington to “General of the Armies of the United States” which scholars say means that Washington might be considered America’s only six-star general, since the army has had five-star generals throughout history. How does this tie into residential lending? It doesn’t, but ever heard of Lincoln Military Housing, which owns 36,000 military family homes across the nation? It is an affiliate of Lincoln Property Company, out of Dallas, which has quite a history.

Employment & transitions

Citibank, N.A. is excited to announce the hiring of Kat Cunningham as the Correspondent Lending Account Executive covering Alaska, Northern California, Pacific Northwest and the Mountain Region. Kat is an industry veteran of over 30 years, possessing an impressive track record of driving territory growth through a client centric, solution-based approach. The addition of Kat is just the latest example of how Citi’s Correspondent Channel is focused on creating a best in class seller experience. With a 2021 implementation roadmap of new products and programs supported by technology designed to make loan delivery simple and efficient, Citi Correspondent is looking to build on the past 18 months of channel expansion. Learn how to be a part of this exciting growth through developing a correspondent relationship with Citi by contacting our National Client Services Team at 800-967-2205 or completing the Prospective Mortgage Correspondent Questionnaire

Hamilton for Heroes: Hamilton Home Loans, a residential mortgage lender headquartered in South Florida, provides home financing assistance to military members, nurses, police officers, firefighters, EMTs and physician assistants through its Hamilton for Heroes program where Active and retired Heroes who are eligible for the program receive a no lender fee offer with savings up to $1,590 on their purchase or refinance transaction. Howard Vernick, SVP National Production, stated, “Hamilton for Heroes helps us give back to the Heroes who make our country and communities safer and healthier places to live. We believe it’s important to make home financing more affordable for these Heroes.” Eligible Heroes also receive dedicated guidance from the Hamilton team throughout the mortgage process. To learn more about Hamilton for Heroes or other products, services and opportunities offered by Hamilton Home Loans, contact Anna Beltran or Ashlee Cragun.

MISMO^® announced that Seth Daniel Appleton is its new president. Appleton currently serves as the Assistant Secretary, Policy Development and Research, for HUD and as the Principal EVP of Ginnie Mae. He will join MISMO on December 1.

Bell Bank has hired Jesse Schwab as executive vice president/chief risk officer, with oversight of all non-credit related risk management for Bell Bank and its divisions. He will implement additional risk management processes and policies, important as Bell approaches the $10 billion asset threshold.

Terry Lindsey, currently Chase’s National Sales Manager, has been named Head of Correspondent Lending for Chase and will have responsibility for the channel including Sales, Operations and Underwriting.

Planet Home Lending, LLC has tapped Michele Kryczkowski as SVP, national fulfillment, responsible for expanding the growth of Planet’s fulfillment unit supporting distributed retail sales channels.

Congratulations to Dave Gottfried, at BondXN. BondXN allows mortgage bankers to more efficiently streamline and auction specified pool lists.

 

Nashville’s Guaranty Home Mortgage Corp. hired Charles Hoving as its new chief compliance officer.

Interfirst Mortgage announced three key new executive hires. Kendall Berry is its new VP of Wholesale Operations responsible for overseeing Interfirst’s management of its mortgage broker relationships. Nadina Bradescu is the new VP of Retail Operations managing all aspects of retail operations from origination to closing with a focus on strengthening the retail channel loan quality and reducing origination costs to the benefit of customers and investors. And Russ Therrell is the new VP of Underwriting overseeing all aspects of the underwriting process and managing a team of 30+ underwriters.

Lender services and products

In honor of those who have served, AFR Wholesale will donate $100 for each VA loan closed in the month of November to the Children of Fallen Patriots Foundation. The mission of this foundation is to provide college scholarships and educational counseling to military children who have lost a parent in the line of duty. VA loans offer up to 100% financing to qualified veterans, active service members, and surviving spouses. AFR offers a variety of VA loan products, from Renovation and Refinance options, to One-Time Close and financing for Manufactured Housing. VA IRRRLs provide an efficient, fast approval refinance from one VA loan to another to lower monthly payments; no appraisal or credit underwriting package required. Plus, AFR pays the required VA Sponsorship fees for brokers and correspondents on all AFR-related VA Loan submissions! For more information about becoming a partner, go to www.afrwholesale.com, email sales@afrwholesale.com or call 1-800-375-6071.

If populating your marketing and sales automation system with quality content seems like a daunting task, it doesn’t have to be. Seroka’s team of strategists and copywriters specialize in creating content that is customized and branded – definitely not cookie cutter. And because its niche is the mortgage industry, Seroka understands your target audiences and can help you ramp up your content quickly. Check out this video to learn more. For more information about how Seroka can help you develop compelling, quality content for your marketing and sales automation systems, reach out today!

 

An appraisal is not just an appraisal. There are a wide variety of appraisals available to provide flexibility given the challenges of this year, and some appraisals can even be waived. In addition to traditional, exterior-only and desktop appraisals, there’s a veritable alphabet soup of flexible offerings available, ranging from AVM (Automated Valuation Model) to BPO (Broker Price Opinion) to MACR (Marketing Analysis & Condition Report). To find out more, visit Triserv or contact Triserv Appraisal Management Solutions: learnmore@triservllc.com. Triserv is a 50-state AMC that has client-specific, dedicated teams on both coasts offering high-touch, personalized service.

Lower rates (plus lower payments) for the win! Becoming or joining an independent mortgage broker lets you offer borrowers the lowest rates possible. With multiple lenders at your disposal competing to get your business, you can bring your customers ultra-low rates in the 2s. Plus, lower interest rates mean smaller payments, making homeownership more affordable for your customers. They won’t forget it, and they’ll tell their friends, too. To learn more about what wholesale lending can do for you and your clients, visit BeAMortgageBroker.com/Contact.

Whether someone is starting a family, growing a family, or looking for some extra space; these milestones require jumbo loans! At Stearns Wholesale Lending, the Gold Select 80 Jumbo Loans can cover these special life moments. These loan amounts go up to $1.5 million for experienced homeowners and require 80% LTV, 720+ credit scores, and DTI which includes 40% for wage earners and 35% for self-employed borrowers. As is the case with all of Stearns jumbo programs, borrowers will experience timely decisions and a streamlined process when they apply. If you want to learn more about the benefits of these jumbo programs, or partner with Stearns, click here to be contacted.

Freddie and Fannie’s Ripples Around Our Biz

Fanns of Fannie (like that one?) learned yesterday that, effective March 1, 2021, “only the new IRS Form 4506-C will be accepted through the Income Verification Express Service (IVES) to provide tax transcripts to third parties. This means mortgage lenders will need to have borrowers sign Form 4506-C to give permission for obtaining their tax transcripts.” Stay tuned for Fannie’s December Selling Guide for more news.

And “Fannie Mae has performed the required assessments for the Classic FICO credit score model, and Fannie Mae and the Federal Housing Finance Agency have approved it for continued use. This is an incremental step while Fannie Mae continues to assess additional credit score model applications.”

Fannie Mae updated Automatic Reclassification of Delinquent MBS Mortgage Loans with Lender Letter (LL-2020-13) to provide process requirement details for servicers related to the 24 month delinquent MBS loan reclassification that will be effective January 2021.

Don’t forget that in late September the Financial Stability Oversight Council, which is chaired by Treasury Secretary Steven Mnuchin, voted unanimously to endorse Calabria’s plan to recapitalize and release the GSEs by executive action – with the caveat that even more capital may be required than the FHFA has called for.

Ed DeMarco, who ran the FHFA until 2014 – six years ago, had some thoughts on the Financial Stability Oversight Council’s comments on the Federal Housing Finance Agency’s proposed capital rule. “The Financial Stability Oversight Council’s recent comments on the Federal Housing Finance Agency’s proposed capital rule for Fannie Mae and Freddie Mac reinforced aspects of the proposed rule but left market participants uncertain about key issues.

“For instance, FSOC’s endorsement of FHFA’s use of bank-like regulatory capital definitions and structure suggests that this approach will be retained in the final rule. FSOC also observed that the capital ‘buffers’ in the proposed risk-based framework should be risk-based, as they are in the bank framework (a point made by many market participants).

“However, elements of FSOC’s statement raise questions for market participants trying to anticipate a post-conservatorship secondary mortgage market, should the incoming Biden Administration’s FHFA go through with the GSEs’ exit from governmental control. Three stand out.

“First, market participants are concerned with FHFA’s and FSOC’s intentions with credit risk transfer, a critical housing finance reform made in conservatorship. By selling credit risk to investors, CRT diversifies the sources of private capital and broadens the universe of investors that absorb credit losses. CRT investors monitor and assess mortgage credit risk so the financial system is not solely reliant upon the risk management judgments of the GSEs. Further, CRT permits pricing transparency previously absent in the GSE market… CRT can reduce both systemic risk and the amount of common equity to be raised while expanding the investor base focused on mortgage credit risk. It should also lower the GSEs’ overall cost of capital, thereby lowering mortgage rates for homebuyers.” (More on this in my usual Saturday commentary.)

“Second, FSOC’s statements on the leverage requirement sent mixed signals. Consistent with current bank capital policy, FSOC poses that the leverage requirement should be a “credible backstop” to the risk-based requirements. Yet FSOC also noted that the final leverage and risk-based requirements should not be ‘materially less than those contemplated by the proposed rule.’

“The conflict arises because leverage is the binding, not backstop, capital requirement in FHFA’s proposal. Such a result creates adverse incentives for risk-taking. Solutions could include aligning the leverage capital buffer – an add-on component of the requirement – more with the bank framework or allowing CRT to count toward the buffer.

“Finally, FSOC notes that the risk-based capital charge for mortgage credit risk in the FHFA proposal is lower than banks face, creating an advantage for the GSEs that ‘could maintain significant concentration of risk with the Enterprises.’ This leads FSOC to ‘encourage FHFA and other regulatory agencies to coordinate and take other appropriate action…’

“Should market participants conclude that FHFA, across two very different Directors and after extensive modeling of mortgage credit risk, is under-estimating mortgage credit risk? Or are the current bank risk-based capital requirements excessive? Does this portend an increase in the GSEs’ risk-based requirements relative to the proposal?

“The Treasury’s 2019 report on housing finance reform stressed that “similar credit risks generally should have similar credit risk capital charges across market participants.” The Housing Policy Council agrees and believes that bank regulators and FHFA should seek parity in the treatment of mortgage credit risk.”

And Dave Stevens of Mountain Lake Consulting has some pertinent, comprehensive thoughts on the election’s impact on GSE reform, as well as why the GSE adverse market fee, already priced into rate sheets around the nation, is unwarranted.

Meanwhile, lenders and investors make Agency changes in the primary markets.

loanDepot’s Weekly Announcement MGIC COVID-19 update and FHA COVID-19 guidance updates.

U.S. Bank issued SEL-2020-078: Government Extension of Temporary Flexibilities Related to COVID-19.

Effective October 30 Flagstar Bank reinstated some products that were temporarily suspended earlier this year. View Memo 20109 for product details.

Plaza’s new Agency Express streamlined submission option offers brokers best-in-class initial turn times on eligible Fannie Mae® and Freddie Mac programs, and allows for closing in as little as 10-15 days.

PRMG posted numerous updates in its Resource Center. Topics include Eastern Region Underwriter Team Assignments, Lender Certification Form, VA Cash Out Refinance and IRRRL Worksheet, and Disaster Notices. QC updates include the addition of Multiple Loans for Same Borrower Questionnaire, Minimum Items Required Addenda for Multiple Loans for Same Borrower, Multiple Loans for the Same Borrower Information Sheet, Doc Order Forms (Wholesale), and Corona California Fulfillment Center Doc Order Form.

Capital markets

U.S. Treasuries didn’t muster any rebound yesterday following Monday’s large selloff. Money continued to pour into the stock market, helping to push MBS prices lower, tightening versus Treasury yields that moved marginally higher on the day. Market movement this week has revolved around expectations for improved economic activity in 2021 driven by the arrival of approved COVID vaccines/treatments, though I would caution you that the recent surge in coronavirus cases, continued lack of fiscal stimulus, and the uncertainty surrounding the transition of power to President-elect Biden are all reasons for Treasury yields to rally and rates drop going forward. In terms of economic releases yesterday, the October NFIB Small Business Optimism Index was unchanged from September, while September JOLTS – Job Openings were roughly unchanged as well.

The bond market is closed today, so question any rate sheets produced. We did learn, however, that mortgage applications decreased 0.5 percent from one week earlier, according to data from the MBA’s Weekly Mortgage Applications Survey for the week ending November 6. With the bond market closed, we begin today with no updates on Agency MBS prices or the 10-year yield after it closed yesterday at 0.96%.

The Empty Chair Guinness Commercial salutes those who serve and while they might be out of sight they are not out of mind. (Warning: tissues may be required.) If you are ever looking for an easy way to pay respect to someone that serves in the military or community just buy them a beer or pay for their meal in a restaurant. They will be very grateful for your kind gesture and recognition of their service.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

 

Veteran’s Day: Correspondent, MLO jobs; transitions rampant; broker, AMC, marketing products; Freddie & Fannie in the news

The 11^th hour of the 11^th day of the 11^th month… Do the veterans in your life a favor by forwarding them this list of discounts around the nation. Speaking of the military, for those of you who say that you never learn anything from this daily commentary, did you know that George Washington is protected from being outranked by any other military officer, by law, even now. If we ever have a 6th star general, Washington would posthumously be promoted to a 7th star general to maintain the top rank. American Public Law 94-479 posthumously promoted Washington to “General of the Armies of the United States” which scholars say means that Washington might be considered America’s only six-star general, since the army has had five-star generals throughout history. How does this tie into residential lending? It doesn’t, but ever heard of Lincoln Military Housing, which owns 36,000 military family homes across the nation? It is an affiliate of Lincoln Property Company, out of Dallas, which has quite a history.

Employment & transitions

Citibank, N.A. is excited to announce the hiring of Kat Cunningham as the Correspondent Lending Account Executive covering Alaska, Northern California, Pacific Northwest and the Mountain Region. Kat is an industry veteran of over 30 years, possessing an impressive track record of driving territory growth through a client centric, solution-based approach. The addition of Kat is just the latest example of how Citi’s Correspondent Channel is focused on creating a best in class seller experience. With a 2021 implementation roadmap of new products and programs supported by technology designed to make loan delivery simple and efficient, Citi Correspondent is looking to build on the past 18 months of channel expansion. Learn how to be a part of this exciting growth through developing a correspondent relationship with Citi by contacting our National Client Services Team at 800-967-2205 or completing the Prospective Mortgage Correspondent Questionnaire

Hamilton for Heroes: Hamilton Home Loans, a residential mortgage lender headquartered in South Florida, provides home financing assistance to military members, nurses, police officers, firefighters, EMTs and physician assistants through its Hamilton for Heroes program where Active and retired Heroes who are eligible for the program receive a no lender fee offer with savings up to $1,590 on their purchase or refinance transaction. Howard Vernick, SVP National Production, stated, “Hamilton for Heroes helps us give back to the Heroes who make our country and communities safer and healthier places to live. We believe it’s important to make home financing more affordable for these Heroes.” Eligible Heroes also receive dedicated guidance from the Hamilton team throughout the mortgage process. To learn more about Hamilton for Heroes or other products, services and opportunities offered by Hamilton Home Loans, contact Anna Beltran or Ashlee Cragun.

MISMO^® announced that Seth Daniel Appleton is its new president. Appleton currently serves as the Assistant Secretary, Policy Development and Research, for HUD and as the Principal EVP of Ginnie Mae. He will join MISMO on December 1.

Bell Bank has hired Jesse Schwab as executive vice president/chief risk officer, with oversight of all non-credit related risk management for Bell Bank and its divisions. He will implement additional risk management processes and policies, important as Bell approaches the $10 billion asset threshold.

Terry Lindsey, currently Chase’s National Sales Manager, has been named Head of Correspondent Lending for Chase and will have responsibility for the channel including Sales, Operations and Underwriting.

Planet Home Lending, LLC has tapped Michele Kryczkowski as SVP, national fulfillment, responsible for expanding the growth of Planet’s fulfillment unit supporting distributed retail sales channels.

Congratulations to Dave Gottfried, at BondXN. BondXN allows mortgage bankers to more efficiently streamline and auction specified pool lists.

 

Nashville’s Guaranty Home Mortgage Corp. hired Charles Hoving as its new chief compliance officer.

Interfirst Mortgage announced three key new executive hires. Kendall Berry is its new VP of Wholesale Operations responsible for overseeing Interfirst’s management of its mortgage broker relationships. Nadina Bradescu is the new VP of Retail Operations managing all aspects of retail operations from origination to closing with a focus on strengthening the retail channel loan quality and reducing origination costs to the benefit of customers and investors. And Russ Therrell is the new VP of Underwriting overseeing all aspects of the underwriting process and managing a team of 30+ underwriters.

Lender services and products

In honor of those who have served, AFR Wholesale will donate $100 for each VA loan closed in the month of November to the Children of Fallen Patriots Foundation. The mission of this foundation is to provide college scholarships and educational counseling to military children who have lost a parent in the line of duty. VA loans offer up to 100% financing to qualified veterans, active service members, and surviving spouses. AFR offers a variety of VA loan products, from Renovation and Refinance options, to One-Time Close and financing for Manufactured Housing. VA IRRRLs provide an efficient, fast approval refinance from one VA loan to another to lower monthly payments; no appraisal or credit underwriting package required. Plus, AFR pays the required VA Sponsorship fees for brokers and correspondents on all AFR-related VA Loan submissions! For more information about becoming a partner, go to www.afrwholesale.com, email sales@afrwholesale.com or call 1-800-375-6071.

If populating your marketing and sales automation system with quality content seems like a daunting task, it doesn’t have to be. Seroka’s team of strategists and copywriters specialize in creating content that is customized and branded – definitely not cookie cutter. And because its niche is the mortgage industry, Seroka understands your target audiences and can help you ramp up your content quickly. Check out this video to learn more. For more information about how Seroka can help you develop compelling, quality content for your marketing and sales automation systems, reach out today!

 

An appraisal is not just an appraisal. There are a wide variety of appraisals available to provide flexibility given the challenges of this year, and some appraisals can even be waived. In addition to traditional, exterior-only and desktop appraisals, there’s a veritable alphabet soup of flexible offerings available, ranging from AVM (Automated Valuation Model) to BPO (Broker Price Opinion) to MACR (Marketing Analysis & Condition Report). To find out more, visit Triserv or contact Triserv Appraisal Management Solutions: learnmore@triservllc.com. Triserv is a 50-state AMC that has client-specific, dedicated teams on both coasts offering high-touch, personalized service.

Lower rates (plus lower payments) for the win! Becoming or joining an independent mortgage broker lets you offer borrowers the lowest rates possible. With multiple lenders at your disposal competing to get your business, you can bring your customers ultra-low rates in the 2s. Plus, lower interest rates mean smaller payments, making homeownership more affordable for your customers. They won’t forget it, and they’ll tell their friends, too. To learn more about what wholesale lending can do for you and your clients, visit BeAMortgageBroker.com/Contact.

Whether someone is starting a family, growing a family, or looking for some extra space; these milestones require jumbo loans! At Stearns Wholesale Lending, the Gold Select 80 Jumbo Loans can cover these special life moments. These loan amounts go up to $1.5 million for experienced homeowners and require 80% LTV, 720+ credit scores, and DTI which includes 40% for wage earners and 35% for self-employed borrowers. As is the case with all of Stearns jumbo programs, borrowers will experience timely decisions and a streamlined process when they apply. If you want to learn more about the benefits of these jumbo programs, or partner with Stearns, click here to be contacted.

Freddie and Fannie’s Ripples Around Our Biz

Fanns of Fannie (like that one?) learned yesterday that, effective March 1, 2021, “only the new IRS Form 4506-C will be accepted through the Income Verification Express Service (IVES) to provide tax transcripts to third parties. This means mortgage lenders will need to have borrowers sign Form 4506-C to give permission for obtaining their tax transcripts.” Stay tuned for Fannie’s December Selling Guide for more news.

And “Fannie Mae has performed the required assessments for the Classic FICO credit score model, and Fannie Mae and the Federal Housing Finance Agency have approved it for continued use. This is an incremental step while Fannie Mae continues to assess additional credit score model applications.”

Fannie Mae updated Automatic Reclassification of Delinquent MBS Mortgage Loans with Lender Letter (LL-2020-13) to provide process requirement details for servicers related to the 24 month delinquent MBS loan reclassification that will be effective January 2021.

Don’t forget that in late September the Financial Stability Oversight Council, which is chaired by Treasury Secretary Steven Mnuchin, voted unanimously to endorse Calabria’s plan to recapitalize and release the GSEs by executive action – with the caveat that even more capital may be required than the FHFA has called for.

Ed DeMarco, who ran the FHFA until 2014 – six years ago, had some thoughts on the Financial Stability Oversight Council’s comments on the Federal Housing Finance Agency’s proposed capital rule. “The Financial Stability Oversight Council’s recent comments on the Federal Housing Finance Agency’s proposed capital rule for Fannie Mae and Freddie Mac reinforced aspects of the proposed rule but left market participants uncertain about key issues.

“For instance, FSOC’s endorsement of FHFA’s use of bank-like regulatory capital definitions and structure suggests that this approach will be retained in the final rule. FSOC also observed that the capital ‘buffers’ in the proposed risk-based framework should be risk-based, as they are in the bank framework (a point made by many market participants).

“However, elements of FSOC’s statement raise questions for market participants trying to anticipate a post-conservatorship secondary mortgage market, should the incoming Biden Administration’s FHFA go through with the GSEs’ exit from governmental control. Three stand out.

“First, market participants are concerned with FHFA’s and FSOC’s intentions with credit risk transfer, a critical housing finance reform made in conservatorship. By selling credit risk to investors, CRT diversifies the sources of private capital and broadens the universe of investors that absorb credit losses. CRT investors monitor and assess mortgage credit risk so the financial system is not solely reliant upon the risk management judgments of the GSEs. Further, CRT permits pricing transparency previously absent in the GSE market… CRT can reduce both systemic risk and the amount of common equity to be raised while expanding the investor base focused on mortgage credit risk. It should also lower the GSEs’ overall cost of capital, thereby lowering mortgage rates for homebuyers.” (More on this in my usual Saturday commentary.)

“Second, FSOC’s statements on the leverage requirement sent mixed signals. Consistent with current bank capital policy, FSOC poses that the leverage requirement should be a “credible backstop” to the risk-based requirements. Yet FSOC also noted that the final leverage and risk-based requirements should not be ‘materially less than those contemplated by the proposed rule.’

“The conflict arises because leverage is the binding, not backstop, capital requirement in FHFA’s proposal. Such a result creates adverse incentives for risk-taking. Solutions could include aligning the leverage capital buffer – an add-on component of the requirement – more with the bank framework or allowing CRT to count toward the buffer.

“Finally, FSOC notes that the risk-based capital charge for mortgage credit risk in the FHFA proposal is lower than banks face, creating an advantage for the GSEs that ‘could maintain significant concentration of risk with the Enterprises.’ This leads FSOC to ‘encourage FHFA and other regulatory agencies to coordinate and take other appropriate action…’

“Should market participants conclude that FHFA, across two very different Directors and after extensive modeling of mortgage credit risk, is under-estimating mortgage credit risk? Or are the current bank risk-based capital requirements excessive? Does this portend an increase in the GSEs’ risk-based requirements relative to the proposal?

“The Treasury’s 2019 report on housing finance reform stressed that “similar credit risks generally should have similar credit risk capital charges across market participants.” The Housing Policy Council agrees and believes that bank regulators and FHFA should seek parity in the treatment of mortgage credit risk.”

And Dave Stevens of Mountain Lake Consulting has some pertinent, comprehensive thoughts on the election’s impact on GSE reform, as well as why the GSE adverse market fee, already priced into rate sheets around the nation, is unwarranted.

Meanwhile, lenders and investors make Agency changes in the primary markets.

loanDepot’s Weekly Announcement MGIC COVID-19 update and FHA COVID-19 guidance updates.

U.S. Bank issued SEL-2020-078: Government Extension of Temporary Flexibilities Related to COVID-19.

Effective October 30 Flagstar Bank reinstated some products that were temporarily suspended earlier this year. View Memo 20109 for product details.

Plaza’s new Agency Express streamlined submission option offers brokers best-in-class initial turn times on eligible Fannie Mae® and Freddie Mac programs, and allows for closing in as little as 10-15 days.

PRMG posted numerous updates in its Resource Center. Topics include Eastern Region Underwriter Team Assignments, Lender Certification Form, VA Cash Out Refinance and IRRRL Worksheet, and Disaster Notices. QC updates include the addition of Multiple Loans for Same Borrower Questionnaire, Minimum Items Required Addenda for Multiple Loans for Same Borrower, Multiple Loans for the Same Borrower Information Sheet, Doc Order Forms (Wholesale), and Corona California Fulfillment Center Doc Order Form.

Capital markets

U.S. Treasuries didn’t muster any rebound yesterday following Monday’s large selloff. Money continued to pour into the stock market, helping to push MBS prices lower, tightening versus Treasury yields that moved marginally higher on the day. Market movement this week has revolved around expectations for improved economic activity in 2021 driven by the arrival of approved COVID vaccines/treatments, though I would caution you that the recent surge in coronavirus cases, continued lack of fiscal stimulus, and the uncertainty surrounding the transition of power to President-elect Biden are all reasons for Treasury yields to rally and rates drop going forward. In terms of economic releases yesterday, the October NFIB Small Business Optimism Index was unchanged from September, while September JOLTS – Job Openings were roughly unchanged as well.

The bond market is closed today, so question any rate sheets produced. We did learn, however, that mortgage applications decreased 0.5 percent from one week earlier, according to data from the MBA’s Weekly Mortgage Applications Survey for the week ending November 6. With the bond market closed, we begin today with no updates on Agency MBS prices or the 10-year yield after it closed yesterday at 0.96%.

The Empty Chair Guinness Commercial salutes those who serve and while they might be out of sight they are not out of mind. (Warning: tissues may be required.) If you are ever looking for an easy way to pay respect to someone that serves in the military or community just buy them a beer or pay for their meal in a restaurant. They will be very grateful for your kind gesture and recognition of their service.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

 

from Mortgage News https://ift.tt/2UjJ1eO
via IFTTT

VA Home Loans: Helping Heroes Find a Home

Today, on Veterans Day, we honor those who have served our country and thank them for their continued dedication to our nation. In the United States, there are many valuable benefits available to Veterans, including VA home loans. For over 75 years, VA home loans have provided millions of Veterans and their families the opportunity to purchase their own homes.

As we consider the full impact of VA home loans, it’s important to both understand these great options for Veterans and to share them with those we know who may be able to benefit most. For a variety of different reasons, many Veterans don’t use their VA home loan options, so being knowledgeable about what’s available and how they work may be a game-changer for many.

Facts about 2019 VA Home Loans (most current data):

• 624,546 home loans were guaranteed by the Veterans Administration.
• 306,879 VA home loans were made without a down payment.
• 2,055 grants totaling $118 million were provided to help seriously disabled Veterans purchase, modify, or construct a home to meet their needs.

VA Home Loans Often Offer:

• No down payment options as long as the sales price isn’t higher than the home’s appraised value.
• Better terms and interest rates than loans from other lenders.
• Fewer closing costs, which may be paid by the seller.

Bottom Line

The best thing you can do today to celebrate Veterans Day is to share this information with those who can potentially benefit from these loan options. For more information, contact a local real estate professional who can assist you in the process. Thank you for your service.

The post VA Home Loans: Helping Heroes Find a Home appeared first on Keeping Current Matters.

VA Home Loans: Helping Heroes Find a Home

Today, on Veterans Day, we honor those who have served our country and thank them for their continued dedication to our nation. In the United States, there are many valuable benefits available to Veterans, including VA home loans. For over 75 years, VA home loans have provided millions of Veterans and their families the opportunity to purchase their own homes.

As we consider the full impact of VA home loans, it’s important to both understand these great options for Veterans and to share them with those we know who may be able to benefit most. For a variety of different reasons, many Veterans don’t use their VA home loan options, so being knowledgeable about what’s available and how they work may be a game-changer for many.

Facts about 2019 VA Home Loans (most current data):

• 624,546 home loans were guaranteed by the Veterans Administration.
• 306,879 VA home loans were made without a down payment.
• 2,055 grants totaling $118 million were provided to help seriously disabled Veterans purchase, modify, or construct a home to meet their needs.

VA Home Loans Often Offer:

• No down payment options as long as the sales price isn’t higher than the home’s appraised value.
• Better terms and interest rates than loans from other lenders.
• Fewer closing costs, which may be paid by the seller.

Bottom Line

The best thing you can do today to celebrate Veterans Day is to share this information with those who can potentially benefit from these loan options. For more information, contact a local real estate professional who can assist you in the process. Thank you for your service.

The post VA Home Loans: Helping Heroes Find a Home appeared first on Keeping Current Matters.

from Mortgage News https://ift.tt/3kkne18
via IFTTT

Nov. 10: Sales mgt., MLO jobs; digital, marketing, correspondent, ROI tools; disaster updates; collateral valuation trends

The headlines continue to blare and attract attention. HUD Secretary Ben Carson tested positive for coronavirus? True. Some foreign leaders not congratulating Joe Biden? Correct. President Trump fired the Secretary of Defense Mark Esper? Yup. In the builder and demographic world, replacing the term “Baby Boomer” with “Baby Chaser” is attracting attention. Labeling generations has not stopped, unfortunately, and now Boomers (the 73 million in the U.S. born between 1946 and 1964) seem to be following their Millennial kids (1981-1996) to new places so they’ll be near their grandkids. And builders are catering to them. Do Boomers think that they’re that indispensable? Lastly, don’t forget that tomorrow is Veteran’s Day (which is different than Memorial Day) and the bond markets are closed.

Employment 

Norcom Mortgage is seeking a New York Area Manager. The east-coast based lender who continues to break sales records is expanding their retail sales footprint throughout the Empire State. For more information, please send inquiries/resumes to Chrisman LLC’s Anjelica Nixt.

“When we say #TeamPrimeLending is full of superstars, we mean it, and our 17,000+ 5-star Zillow Reviews, 96% customer satisfaction rating and 4.8 overall national star rating through October is proof. Through unprecedented volume in 2020, our loan officers and operations staff have worked relentlessly to deliver service beyond expectations to all of our borrowers and business partners, and our customers have been sharing their positive experiences like never before. We’ve actually seen a YoY increase of 351.45% in reviews received from October 2019 through October 2020. It’s been an outstanding display of agility, consistency, and excellent service at every phase of the mortgage process. If you’re a branch manager, loan officer or in operations and you want to be a part of our star-studded team, contact Nic Hartke today.”

Broker & lender products & services

The mortgage industry continues to grow as a true community of professionals, which is incredibly valuable, especially for loan officers that are new to the wholesale space and choosing lending partners. Take it from Thomas Mancuso of NEXA Mortgage, who recently mentioned Home Point Financial as a favorite in that area, saying: “One big thing I notice in the broker community is who helps give back to brokers, not just calling them for deals, but actually participates in the community. Home Point was brought up several times, so that made me eager to find out what it was all about.” If you’re a mortgage broker or correspondent that still needs to sign up with Home Point, visit its website.

This holiday season, TMS is putting the CARE in CAREspondent Lending. For every new lender that partners with TMS before the end of the year, TMS will donate $500 to Family Reach, a national non-profit dedicated to alleviating the financial burden of cancer. Sign up here to get started.

How many homeowners do you think are thankful for their loan officer this year? Probably a lot. During uncertain economic times, you’ve helped your clients maximize their wealth by making informed home finance decisions. In fact, in the last three months, more than 20,000 homeowners have reached out to their LO about refi options through Homebot alone. How are you staying in touch with your clients as we move into 2021?

As we close out a record-breaking year, the opportunity to develop lifetime relationships with your customers has never been greater. Join Total Expert’s webinar on Nov. 18 at 1PM CT with guests from Cornerstone Advisors as they share expert tips to engage customers beyond the close. They’ll share insight from the latest research and equip you with everything you need to know deliver the optimal borrower experience. RSVP here or sign up to receive the recording. Walk away with new strategies to master borrower touchpoints and set the stage for a successful 2021.

SimpleNexus has used the results of a third-party study conducted by independent advisory firm MarketWise Advisors to develop an ROI calculator that quantifies lenders’ expected return on investment in the SimpleNexus digital mortgage platform. According to the study, on average SimpleNexus customers enjoy improved application conversion rates (13.61%), increased inbound leads/referrals (12.85%), additional loans closed per year (6.32/LO) and noteworthy operational savings ($258.36/loan). But since no two organizations are the same, SimpleNexus invites you to take a run at the calculator yourself. If you want to see firsthand how SimpleNexus can turbocharge your business goals, save the date for the company’s third annual user conference.SNUG21 takes place wherever you are February 22-24.

Back in March, a free one-pager from Top of Mind explaining why mortgage rates aren’t zero even if fed rates were, was downloaded hundreds of times. And it makes sense. Mortgage lenders are strapped for time and need resources on hand that explain borrowers’ most relevant (and repetitive) questions. Well, in the spirit of giving back, this month Top of Mind wants to take you on a content tour throughout the entire month of November. Sign up and get a free sampler of its most popular content delivered to your inbox once a week for the next four weeks.

End of year HomeBinder offer! HomeBinder’s Alec Ahee has a special offer for you in his latest video Wood Stove Sessions with Alec. This promotion ensures that you retain that heavy influx of clients this year, setting your business up for success for years to come. See the video and get the offer from HomeBinder. (Offer ends November 30th)

“Giving is the highest form of living,” writes in FormFree Founder and CEO Brent Chandler. Kudos to FormFree on the success of its recent #HeroesGolfClassic charity golf tournament. Because of generous donations from individuals and corporate sponsors, FormFree was able to raise nearly $30,000 for the American Red Cross to fund critical disaster relief efforts and support local veterans. Speaking of Brent Chandler, you can catch him on air today at #NEXTDC20, the virtual housing policy summit for executives. Hear his 5-minute take on the essentials executives need to know about the future of digital mortgage at 9:45 am ET this morning. Registration is free, so sign up now.

Disasters

The United States of America has its share wildfires, hurricanes, acts of terrorism, earthquakes, and floods. Lenders and investors keep an eye on the FEMA announcements which determine policies and procedures for analyzing collateral and local economic conditions. Few companies want to lend money on an unhabitable house.

Flagstar is allowing loan closings and funding to resume for some California properties affected by the California Wildfires once a satisfactory re-inspection has been obtained.

PennyMac Correspondent Group posted 20-73: Government Loan Seasoning and Disasters.

Collateral changes

The appraisal industry has adapted to the COVID precautions. Full communication with the owner or occupant of the property, gloves, masks, all doors unlocked/open, and other procedures are accomplished. The Agencies have published guidance (here is Freddie’s). Meanwhile, investors and lenders continue to change the states that they will lend in, and what types of properties they will accept.

It’s a myth that comparable sales used in an appraisal report must be within one mile of the subject property. See how the myth has been vanquished by the Noble Appraiser, who is spreading the word that the best comparables are chosen using facts and data. Watch Fannie Mae’s One-Mile Myth video.

Making condo loans? Learn about Fannie Mae’s project insurance requirements through a video series. It uses hypothetical scenarios to highlight our requirements for property, fidelity/crime, flood, and project liability insurance. Also, get answers to frequently asked questions in our project insurance requirements FAQs.

AD Mortgage will no longer accept manufactured homes for submission for all products starting 10/12/2020.

The Plaza Home Mortgage® Reverse Jumbo program has expanded again and is now available in Washington state. The program allows senior borrowers in higher value homes to tap into up to $4M of their home’s equity, with no MI! Reverse Jumbo is now available in these 16 states: AZ, CA, CO, CT, FL, GA, HI, IL, NJ, NM, NV, OR, PA, TX, UT, and WA.

Mountain West Financial posted, effective immediately, single wide manufactured homes have been removed as an eligible property type for HomeReady and Home Possible programs.

AmeriHome Correspondent provided updates to temporary measures addressing the impacts of COVID-19. Notably, in ML 2020-37 FHA made changes to FHA’s Appraisal Protocols including the discontinuing the use of Desktop-Only Appraisal inspection scope of work option. Also, the extension of re-verification of employment guidance to include cases closed on or before December 31, 2020. Following suit, VA’s temporary exceptions pertaining to appraisals, repair inspections and income verifications have been extended until 12/31/2020.

Mountain West Financial Wholesale issued Bulletin 20W-130 informing clients that FHA is eliminating the option for an Exterior Only or a Desk Only appraisal. FHA appraisals ordered on or after 11/1/2020 will require a full interior and exterior appraisal. View the MWF Website to review this and other Bulletins.

United Farm Mortgage provides a variety of agricultural loans including Farm and Hobby Farm Loans. Check out its Website to discover all the options available.

Land Home Financial posted a bulletin to announce that HUD has extended the re-verification of employment guidance in ML 2020-05; and, an updated Appraisal scope of work inspection option providing for Exterior-Only Appraisal, which limits face-to-face contact for certain transactions affected by COVID-19. Updates in the announcement are temporary and will not be incorporated into the Single-Family Housing Policy Handbook 4000.1

Franklin American reversed the policy announced in National Correspondent Bulletin 2020-22. Bulletin 2020-22, in response to regulation 3NYCRR 419.12. Effective immediately, FAMC will purchase loans in the state of New York at a reduced principal balance when payments are scheduled to be collected by the Lender. The reversal of this policy does create a new requirement, however, on any loan that is purchased at a reduced balance. In those instances, a current pay history will be required to be delivered to the Agency Delivery department via email once the borrower’s first payment has been received and posted.

Today, Tuesday, November 10^th, Arch MI will release its quarterly Housing and Mortgage Market Review (HaMMR) report diving into new housing data and COVID-19’s impact on the overall industry.

Capital markets

Recent economic data continues to support ongoing but moderating real GDP growth in the fourth quarter, as shown by last week’s reports. Nonfarm payrolls were higher than expected and the unemployment rate dipped to 6.88 percent for October, a level last seen in November 2013. Total employment remains 7 percent below its peak this past February. Officially there are roughly 11 million people counted as unemployed, however data from the most recent jobless claim report shows 21.5 million individuals were collecting some form of unemployment benefit for the week ending October 17. The ISM Services Index fell while the ISM Manufacturing Index rose in October, potentially due to the continued shift in consumer spending from services to goods. Private residential construction increased 2.8 in September, reflecting the strong housing market. Mortgage refinance apps rose while purchase apps fell during the final week in October. While mortgage rates remain low and there are still many people that may benefit from refinancing, limited housing supply may be holding back purchase applications. The Federal Reserve indicated it continues to watch the trajectory of the coronavirus pandemic and made no policy changes at its last meeting.

Although drugs have many more hurdles to go over, yesterday’s big news was Pfizer and BioNTech announcing that their prospective coronavirus vaccine was successful in Phase 3 trials, which drove a massive risk-on trade to start the week. Though experts warn that this particular vaccine still has many hurdles yet to clear, U.S. Treasuries were sold across the board yesterday, driving prices down and yields up as some of the coronavirus/growth risk premium was taken out of the market and investors weighed the likelihood of a “return to normalcy” sometime next year.

The start of the record-sized $122 billion Quarterly Refunding stumbled out of the starting blocks with a mediocre $41 billion 3-year note auction. The day saw increased supply, focused in 2.0% MBS being used to hedge pipelines. The MBS basis ended tighter, led by 2.5%, as treasuries sold off sharply with the yield on the 10-year closing at its highest since March. It was up 10 bps on the day while the 30-year was up 15 bps.

There is plenty of contention, but Joe Biden being declared the winner over the weekend in the U.S. presidential election. This aided the selloff, with investors viewing his inauguration as the start of potentially better global trade. Biden may usher in a wave of policy rollbacks and reversals, though, if Congress remains divided, few changes in tax or regulatory policies are expected in the coming years. Mortgage bankers generally prefer gridlock in Washington since it means certainty. Namely, interest rates should remain lower for longer with the continuation of the Fed’s MBS purchases and fading hopes for a big stimulus package.

Late yesterday, the MBA’s latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 16 bps to 5.67% of servicer’s portfolio volume as of November 1. Today’s calendar is light on economic releases but makes up for it with large supply and multiple Fed appearances. We only have two second-tier economic releases: NFIB Business Optimism Index for October and the September Job Openings and Labor Turnover Survey. The Treasury will conduct the second leg of its Quarterly Refunding when it auctions a record $41 billion 10-year notes. Dallas Fed President Kaplan, Boston President Rosengren, Vice Chair for Supervision Quarles, and Governor Brainard are all set to speak. The NY Fed will buy up to $5.3 billion over three operations today: $975 million UMBS15 1.5% and 2.5%, $2.9 billion UMBS30 1.5% and 2.0%, and $1.5 billion GNII 2.0% and 2.5%. We begin the day with Agency MBS prices unchanged and the 10-year yielding .95 after closing yesterday at 0.96%.

This Thanksgiving air travel will be a fraction of what it normally is. But that doesn’t mean you shouldn’t be safe. Do yourself and family a favor and watch this FACTUAL airline safety message. Nope, no joke.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Do Lenders Care About Forecasts or Predictions?”

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Nov. 10: Sales mgt., MLO jobs; digital, marketing, correspondent, ROI tools; disaster updates; collateral valuation trends

The headlines continue to blare and attract attention. HUD Secretary Ben Carson tested positive for coronavirus? True. Some foreign leaders not congratulating Joe Biden? Correct. President Trump fired the Secretary of Defense Mark Esper? Yup. In the builder and demographic world, replacing the term “Baby Boomer” with “Baby Chaser” is attracting attention. Labeling generations has not stopped, unfortunately, and now Boomers (the 73 million in the U.S. born between 1946 and 1964) seem to be following their Millennial kids (1981-1996) to new places so they’ll be near their grandkids. And builders are catering to them. Do Boomers think that they’re that indispensable? Lastly, don’t forget that tomorrow is Veteran’s Day (which is different than Memorial Day) and the bond markets are closed.

Employment 

Norcom Mortgage is seeking a New York Area Manager. The east-coast based lender who continues to break sales records is expanding their retail sales footprint throughout the Empire State. For more information, please send inquiries/resumes to Chrisman LLC’s Anjelica Nixt.

“When we say #TeamPrimeLending is full of superstars, we mean it, and our 17,000+ 5-star Zillow Reviews, 96% customer satisfaction rating and 4.8 overall national star rating through October is proof. Through unprecedented volume in 2020, our loan officers and operations staff have worked relentlessly to deliver service beyond expectations to all of our borrowers and business partners, and our customers have been sharing their positive experiences like never before. We’ve actually seen a YoY increase of 351.45% in reviews received from October 2019 through October 2020. It’s been an outstanding display of agility, consistency, and excellent service at every phase of the mortgage process. If you’re a branch manager, loan officer or in operations and you want to be a part of our star-studded team, contact Nic Hartke today.”

Broker & lender products & services

The mortgage industry continues to grow as a true community of professionals, which is incredibly valuable, especially for loan officers that are new to the wholesale space and choosing lending partners. Take it from Thomas Mancuso of NEXA Mortgage, who recently mentioned Home Point Financial as a favorite in that area, saying: “One big thing I notice in the broker community is who helps give back to brokers, not just calling them for deals, but actually participates in the community. Home Point was brought up several times, so that made me eager to find out what it was all about.” If you’re a mortgage broker or correspondent that still needs to sign up with Home Point, visit its website.

This holiday season, TMS is putting the CARE in CAREspondent Lending. For every new lender that partners with TMS before the end of the year, TMS will donate $500 to Family Reach, a national non-profit dedicated to alleviating the financial burden of cancer. Sign up here to get started.

How many homeowners do you think are thankful for their loan officer this year? Probably a lot. During uncertain economic times, you’ve helped your clients maximize their wealth by making informed home finance decisions. In fact, in the last three months, more than 20,000 homeowners have reached out to their LO about refi options through Homebot alone. How are you staying in touch with your clients as we move into 2021?

As we close out a record-breaking year, the opportunity to develop lifetime relationships with your customers has never been greater. Join Total Expert’s webinar on Nov. 18 at 1PM CT with guests from Cornerstone Advisors as they share expert tips to engage customers beyond the close. They’ll share insight from the latest research and equip you with everything you need to know deliver the optimal borrower experience. RSVP here or sign up to receive the recording. Walk away with new strategies to master borrower touchpoints and set the stage for a successful 2021.

SimpleNexus has used the results of a third-party study conducted by independent advisory firm MarketWise Advisors to develop an ROI calculator that quantifies lenders’ expected return on investment in the SimpleNexus digital mortgage platform. According to the study, on average SimpleNexus customers enjoy improved application conversion rates (13.61%), increased inbound leads/referrals (12.85%), additional loans closed per year (6.32/LO) and noteworthy operational savings ($258.36/loan). But since no two organizations are the same, SimpleNexus invites you to take a run at the calculator yourself. If you want to see firsthand how SimpleNexus can turbocharge your business goals, save the date for the company’s third annual user conference.SNUG21 takes place wherever you are February 22-24.

Back in March, a free one-pager from Top of Mind explaining why mortgage rates aren’t zero even if fed rates were, was downloaded hundreds of times. And it makes sense. Mortgage lenders are strapped for time and need resources on hand that explain borrowers’ most relevant (and repetitive) questions. Well, in the spirit of giving back, this month Top of Mind wants to take you on a content tour throughout the entire month of November. Sign up and get a free sampler of its most popular content delivered to your inbox once a week for the next four weeks.

End of year HomeBinder offer! HomeBinder’s Alec Ahee has a special offer for you in his latest video Wood Stove Sessions with Alec. This promotion ensures that you retain that heavy influx of clients this year, setting your business up for success for years to come. See the video and get the offer from HomeBinder. (Offer ends November 30th)

“Giving is the highest form of living,” writes in FormFree Founder and CEO Brent Chandler. Kudos to FormFree on the success of its recent #HeroesGolfClassic charity golf tournament. Because of generous donations from individuals and corporate sponsors, FormFree was able to raise nearly $30,000 for the American Red Cross to fund critical disaster relief efforts and support local veterans. Speaking of Brent Chandler, you can catch him on air today at #NEXTDC20, the virtual housing policy summit for executives. Hear his 5-minute take on the essentials executives need to know about the future of digital mortgage at 9:45 am ET this morning. Registration is free, so sign up now.

Disasters

The United States of America has its share wildfires, hurricanes, acts of terrorism, earthquakes, and floods. Lenders and investors keep an eye on the FEMA announcements which determine policies and procedures for analyzing collateral and local economic conditions. Few companies want to lend money on an unhabitable house.

Flagstar is allowing loan closings and funding to resume for some California properties affected by the California Wildfires once a satisfactory re-inspection has been obtained.

PennyMac Correspondent Group posted 20-73: Government Loan Seasoning and Disasters.

Collateral changes

The appraisal industry has adapted to the COVID precautions. Full communication with the owner or occupant of the property, gloves, masks, all doors unlocked/open, and other procedures are accomplished. The Agencies have published guidance (here is Freddie’s). Meanwhile, investors and lenders continue to change the states that they will lend in, and what types of properties they will accept.

It’s a myth that comparable sales used in an appraisal report must be within one mile of the subject property. See how the myth has been vanquished by the Noble Appraiser, who is spreading the word that the best comparables are chosen using facts and data. Watch Fannie Mae’s One-Mile Myth video.

Making condo loans? Learn about Fannie Mae’s project insurance requirements through a video series. It uses hypothetical scenarios to highlight our requirements for property, fidelity/crime, flood, and project liability insurance. Also, get answers to frequently asked questions in our project insurance requirements FAQs.

AD Mortgage will no longer accept manufactured homes for submission for all products starting 10/12/2020.

The Plaza Home Mortgage® Reverse Jumbo program has expanded again and is now available in Washington state. The program allows senior borrowers in higher value homes to tap into up to $4M of their home’s equity, with no MI! Reverse Jumbo is now available in these 16 states: AZ, CA, CO, CT, FL, GA, HI, IL, NJ, NM, NV, OR, PA, TX, UT, and WA.

Mountain West Financial posted, effective immediately, single wide manufactured homes have been removed as an eligible property type for HomeReady and Home Possible programs.

AmeriHome Correspondent provided updates to temporary measures addressing the impacts of COVID-19. Notably, in ML 2020-37 FHA made changes to FHA’s Appraisal Protocols including the discontinuing the use of Desktop-Only Appraisal inspection scope of work option. Also, the extension of re-verification of employment guidance to include cases closed on or before December 31, 2020. Following suit, VA’s temporary exceptions pertaining to appraisals, repair inspections and income verifications have been extended until 12/31/2020.

Mountain West Financial Wholesale issued Bulletin 20W-130 informing clients that FHA is eliminating the option for an Exterior Only or a Desk Only appraisal. FHA appraisals ordered on or after 11/1/2020 will require a full interior and exterior appraisal. View the MWF Website to review this and other Bulletins.

United Farm Mortgage provides a variety of agricultural loans including Farm and Hobby Farm Loans. Check out its Website to discover all the options available.

Land Home Financial posted a bulletin to announce that HUD has extended the re-verification of employment guidance in ML 2020-05; and, an updated Appraisal scope of work inspection option providing for Exterior-Only Appraisal, which limits face-to-face contact for certain transactions affected by COVID-19. Updates in the announcement are temporary and will not be incorporated into the Single-Family Housing Policy Handbook 4000.1

Franklin American reversed the policy announced in National Correspondent Bulletin 2020-22. Bulletin 2020-22, in response to regulation 3NYCRR 419.12. Effective immediately, FAMC will purchase loans in the state of New York at a reduced principal balance when payments are scheduled to be collected by the Lender. The reversal of this policy does create a new requirement, however, on any loan that is purchased at a reduced balance. In those instances, a current pay history will be required to be delivered to the Agency Delivery department via email once the borrower’s first payment has been received and posted.

Today, Tuesday, November 10^th, Arch MI will release its quarterly Housing and Mortgage Market Review (HaMMR) report diving into new housing data and COVID-19’s impact on the overall industry.

Capital markets

Recent economic data continues to support ongoing but moderating real GDP growth in the fourth quarter, as shown by last week’s reports. Nonfarm payrolls were higher than expected and the unemployment rate dipped to 6.88 percent for October, a level last seen in November 2013. Total employment remains 7 percent below its peak this past February. Officially there are roughly 11 million people counted as unemployed, however data from the most recent jobless claim report shows 21.5 million individuals were collecting some form of unemployment benefit for the week ending October 17. The ISM Services Index fell while the ISM Manufacturing Index rose in October, potentially due to the continued shift in consumer spending from services to goods. Private residential construction increased 2.8 in September, reflecting the strong housing market. Mortgage refinance apps rose while purchase apps fell during the final week in October. While mortgage rates remain low and there are still many people that may benefit from refinancing, limited housing supply may be holding back purchase applications. The Federal Reserve indicated it continues to watch the trajectory of the coronavirus pandemic and made no policy changes at its last meeting.

Although drugs have many more hurdles to go over, yesterday’s big news was Pfizer and BioNTech announcing that their prospective coronavirus vaccine was successful in Phase 3 trials, which drove a massive risk-on trade to start the week. Though experts warn that this particular vaccine still has many hurdles yet to clear, U.S. Treasuries were sold across the board yesterday, driving prices down and yields up as some of the coronavirus/growth risk premium was taken out of the market and investors weighed the likelihood of a “return to normalcy” sometime next year.

The start of the record-sized $122 billion Quarterly Refunding stumbled out of the starting blocks with a mediocre $41 billion 3-year note auction. The day saw increased supply, focused in 2.0% MBS being used to hedge pipelines. The MBS basis ended tighter, led by 2.5%, as treasuries sold off sharply with the yield on the 10-year closing at its highest since March. It was up 10 bps on the day while the 30-year was up 15 bps.

There is plenty of contention, but Joe Biden being declared the winner over the weekend in the U.S. presidential election. This aided the selloff, with investors viewing his inauguration as the start of potentially better global trade. Biden may usher in a wave of policy rollbacks and reversals, though, if Congress remains divided, few changes in tax or regulatory policies are expected in the coming years. Mortgage bankers generally prefer gridlock in Washington since it means certainty. Namely, interest rates should remain lower for longer with the continuation of the Fed’s MBS purchases and fading hopes for a big stimulus package.

Late yesterday, the MBA’s latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 16 bps to 5.67% of servicer’s portfolio volume as of November 1. Today’s calendar is light on economic releases but makes up for it with large supply and multiple Fed appearances. We only have two second-tier economic releases: NFIB Business Optimism Index for October and the September Job Openings and Labor Turnover Survey. The Treasury will conduct the second leg of its Quarterly Refunding when it auctions a record $41 billion 10-year notes. Dallas Fed President Kaplan, Boston President Rosengren, Vice Chair for Supervision Quarles, and Governor Brainard are all set to speak. The NY Fed will buy up to $5.3 billion over three operations today: $975 million UMBS15 1.5% and 2.5%, $2.9 billion UMBS30 1.5% and 2.0%, and $1.5 billion GNII 2.0% and 2.5%. We begin the day with Agency MBS prices unchanged and the 10-year yielding .95 after closing yesterday at 0.96%.

This Thanksgiving air travel will be a fraction of what it normally is. But that doesn’t mean you shouldn’t be safe. Do yourself and family a favor and watch this FACTUAL airline safety message. Nope, no joke.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Do Lenders Care About Forecasts or Predictions?”

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

from Mortgage News https://ift.tt/2IfanjT
via IFTTT