DPA, Non-QM Products; Deficits, Debt, The Yield Curve, and Mortgage Rates

Posted To: Pipeline Press

Some international rates have gone through 0 percent and are now negative. The low rates and high volumes have caused lenders to focus less on long-term planning and more on closing loans. Who can blame them? How would U.S. mortgage rates near 0 percent impact the future refi market for lenders? Here’s a piece worth a skim on why mortgage rates probably won’t hit 0% Mortgage Rates: Thinking the Unthinkable .” The yield on the 10-year Treasury note has fallen below the two-year yield for the first time since the financial crisis, causing a sell-off in the stock market. The 30-year yield is at an all-time low. An inverted yield curve has preceded every recession since 1950 by seven to 24 months. But former Federal Reserve Chair Janet Yellen says the latest inversion of the yield…(read more)

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DPA, Non-QM Products; Deficits, Debt, The Yield Curve, and Mortgage Rates
DPA, Non-QM Products; Deficits, Debt, The Yield Curve, and Mortgage Rates

Digital, Reno Products; Originator Survey; FHA Condo Update

Posted To: Pipeline Press

Plenty of economists watch builder activity and mood swings as early indicators of future economic health. Builder confidence in the single-family 55+ housing market continued in positive territory in the second quarter of 2018, according to the HMI . We’ve been hearing about skilled labor shortages, lack of buildable land, raw material price volatility, and permit & regulatory costs for years, but aging Baby Boomers are downsizing, many into condominiums. The 55+ multifamily condo HMI is the second-highest reading since the inception of the index in 2008. I bring this up because of the FHA condo announcement yesterday, spelled out below and good news for many. Lender Products and Services OpenClose ® has added industry technology veteran Allen Pollack as the company’s new…(read more)

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Digital, Reno Products; Originator Survey; FHA Condo Update
Digital, Reno Products; Originator Survey; FHA Condo Update

Broker, Non-QM Products; Policy and Procedure Trends

Posted To: Pipeline Press

Data compiled by the American Bar Association shows that average lawyer pay has nearly doubled since 1997! Mortgage loan originators enjoy comparing themselves to attorneys, despite the formal educational differences, the time involved with case work stretching out years, and the initial expense of law school most attorneys attend after college. And then there’s the bar exam with its “not a sure thing” passing rate . How about an exam for homebuyers before a sale can be approved? Spain has one . Also known as the Housing Credit Law, “it should greatly diversify what is on offer for homebuyers while providing better protections.” How about an exam for borrowers, the first question being, “Do you know that you must pay back a loan?” Okay, I’ll stop…(read more)

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Broker, Non-QM Products; Policy and Procedure Trends
Broker, Non-QM Products; Policy and Procedure Trends

Broker, DPA Products; August Events; Mortgage Rates Slow to Drop – Why?

Posted To: Pipeline Press

As we digest the news that CIT is buying Mutual of Omaha Bank , others are looking at demographics. Families moving create jobs, right? From 2017 to 2018, roughly 32 million Americans moved. The reasons include family, work, and housing reasons, obviously. The five most common reasons ? 5.3 million moved because they wanted to move to a better house or apartment, 4.1 million moved to start a family, 3.6 million for a miscellaneous family reason, 3.3 million for a new job, and 2.6 million because they wanted cheaper housing. Hundreds of thousands moved to attend or leave college, wanted a change of climate, millions wanted to buy, not rent, or wanted an easier commute. And they are moving into smaller houses. After rising for a decade, average new home sizes are falling as builders pivot away…(read more)

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Broker, DPA Products; August Events; Mortgage Rates Slow to Drop – Why?
Broker, DPA Products; August Events; Mortgage Rates Slow to Drop – Why?

Broker, Credit, Subservicer Products; CRM Survey and Vendor News

Posted To: Pipeline Press

While the world is watching 0% or-.5% interest rates in Denmark , in this country Zillow is competing with lenders, real estate agents, and mom & pop fix & flippers. In its last quarter, $248.9 million of the data company’s $599.6 million in revenue came from buying and selling homes directly . The company bought 1,525 homes from April to June in 15 markets, and sold 768 homes (supposedly losing $71 million doing that) with plans to be in 26 housing markets by the middle of 2020 . The number of homes it bought is higher than the number it sold, leading to conjecture about flipping houses, buying up properties and investing in repairs and then selling them. Can humans looking for value compete with Zillow’s algorithm designed to exploit inefficiencies? Perhaps not. And Julian…(read more)

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Broker, Credit, Subservicer Products; CRM Survey and Vendor News
Broker, Credit, Subservicer Products; CRM Survey and Vendor News

DPA, Analytic products; Jumbo and Non-Conforming News

Posted To: Pipeline Press

Critics of the “new and improved” 1003, aka URLA, for loan applications must be quite pleased with the indefinite delay of its required rollout announced yesterday. “The Federal Housing Finance Agency (FHFA) has completed its review of the redesigned Uniform Residential Loan Application (URLA) and has directed Freddie Mac and Fannie Mae to make specific modifications to the URLA form. To allow industry participants time to make the necessary changes, the implementation deadlines will be extended . This means the mandatory use of the redesigned URLA form will no longer begin on February 1, 2020. More details will follow over the next several weeks as we continue to assess the impact of these changes on the timeline with Fannie Mae and FHFA.” Lender Services and Products…(read more)

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DPA, Analytic products; Jumbo and Non-Conforming News
DPA, Analytic products; Jumbo and Non-Conforming News

Credit Products; Vendors Raising Money and Offering Free Appraisals

Posted To: Pipeline Press

Are there “non-profit” lenders and/or real estate companies in the private sector? (I’m talking business model, not tax status.) Sure there are. Here’s a quick example: Homewise in New Mexico . But in my talks with lenders around the nation, profit is the name of the game, and non-bank lenders are always watching bank and credit union activity in residential lending. Market share is always shifting . There are lots of smart folks who will tell you that banks are no longer as attracted to the current legal and regulatory “resi” environment, nor the volatility in volumes and profits, and that perhaps the residential borrower is not viewed as the cornerstone of banking that they once were. Change is a constant! Lender Products and Services THE COMPLIANCE NEWSHUB…(read more)

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Credit Products; Vendors Raising Money and Offering Free Appraisals
Credit Products; Vendors Raising Money and Offering Free Appraisals

CRM, Broker Products; 2nd Mortgage and Conv. Conforming Trends

Posted To: Pipeline Press

For me the first three weeks in August includes time in California, Washington, Nevada, Tennessee, and Michigan. Did you know that roughly 80% of new houses being built are in the South or West? Freddie and Fannie know a lot about lending on new homes, and lending to first time home buyers. Recall that a piece of their gfees goes from the borrower to the government, and their profits go to the government as well through “dividend sweeps.” What are the Agencies talking about these days in meetings with clients? Appraisal modernization, Fannie’s servicing marketplace , and data validation top the list. And fine if you want to ask them about the QM patch, but they will do what regulators and the FHFA tell them to do about it and that won’t be known for quite some time….(read more)

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CRM, Broker Products; 2nd Mortgage and Conv. Conforming Trends
CRM, Broker Products; 2nd Mortgage and Conv. Conforming Trends

Sales, Retention, Broker Products; Business is Great, But What's a Margin Call?

Posted To: Pipeline Press

With this downward move in rates lenders across the nation are girding their loins for margin calls from broker/dealers on mortgage-backed security positions. (What’s a margin call? Answer in the capital markets section.) And everyone’s stock investments are being pummeled – let’s hope someone thought to move those monies for future down payments from potential borrowers to cash instead of keeping them in stocks. Speaking of things that many don’t think about, as highways switch to electronic toll payment systems, the number of toll collectors are dwindling . That’s okay unless a) you have a problem in Lane 2, or b) you’re a kid and your parent is a toll collector. The Port Authority of New York and New Jersey employed 450 toll collectors in 1997 and…(read more)

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Sales, Retention, Broker Products; Business is Great, But What's a Margin Call?
Sales, Retention, Broker Products; Business is Great, But What's a Margin Call?

Warehouse, Broker Products; FHA and Ginnie News; CFPB and DOJ Fair Lending Investigation?

Posted To: Pipeline Press

Blame mental health. Blame gun control. Blame “the system” or background check procedures. There’s plenty of blame to go around when it comes to the terrible mass shootings, and shootings in general. One would think politicians are weary of saying, “Our thoughts and prayers go out to…” Meanwhile, states wait for the next one. Are U.S. states at least putting money into housing construction? Yes! Speaking of the United States, several readers wrote to me regarding my post Saturday about the significant strides that Hispanics have made in obtaining financing to purchase homes, and more specifically to tell me that the United States as no official language . Lender Products and Services “ Using the Right Tools and Team: When asked, lenders like yourself…(read more)

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Warehouse, Broker Products; FHA and Ginnie News; CFPB and DOJ Fair Lending Investigation?
Warehouse, Broker Products; FHA and Ginnie News; CFPB and DOJ Fair Lending Investigation?