Broker, Fraud, Credit, and Hedging Products; Lenders Adjust to FHA Changes

Posted To: Pipeline Press

Here’s a little trivia for you. What does San Francisco have six of that Manhattan has none of? Dirt roads ! I don’t know if the cost of maintaining a dirt road is more than that of maintaining a paved road, but I do know that the industry is buzzing about Citi being smacked with a $30 million fine by the Office of the Comptroller of the Currency stemming from violations in relation to the holding period of other real estate owned. Yes, apparently there is a two-year limit on banks maintaining possession of a foreclosed property unless the bank applies for an annual exemption for five years. Past five years and the bank is supposed to sell the property back into the market to prevent available housing inventory from being kept away from would-be homebuyers. I received a few notes…(read more)

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Broker, Fraud, Credit, and Hedging Products; Lenders Adjust to FHA Changes
Broker, Fraud, Credit, and Hedging Products; Lenders Adjust to FHA Changes

Correspondent, Home Equity Products; Warehouse Facility For Sale; HUD and Flood Programs

Posted To: Pipeline Press

52% of Agency biz (e.g., Freddie and Fannie) is first-time home buyers. Over at HUD, according to the Mortgage Bankers Association (MBA), first-time home buyers account for more than 75 percent of FHA home purchases. FHA & VA continue to evolve – more below. Lender Services and Products “New! Freedom Mortgage Wholesale’s FHA Condo Single Unit Approval program allows for approvals of individual condo units meeting certain eligibility requirements even if the condo project is not FHA approved! Freedom Mortgage Wholesale is the right choice for a fast and easy FHA Condo approval. Relax – we coordinate the collection of all condo project information for you. Additionally, Freedom Mortgage will absorb any fees associated with Condo Questionnaire requests. Join us for FHA Condo…(read more)

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Correspondent, Home Equity Products; Warehouse Facility For Sale; HUD and Flood Programs
Correspondent, Home Equity Products; Warehouse Facility For Sale; HUD and Flood Programs

Broker, LOS, Warehouse Products; Nationwide Events and Free Training

Posted To: Pipeline Press

Sen. Patrick Moynihan once said, “Everyone is entitled to their own opinions, but not their own facts.” In a question guaranteed to generate opinions, there is, “Rob, do you ever think that the mortgage industry will be like the gasoline business, dominated by a very few huge companies?” No, I don’t think so. The cost and barriers to entry are too low. I very much doubt that a few lenders will ever dominate the mortgage origination sector. Looking back over a few decades concentration among the top 30 lenders has been very fluid. The top 30 lenders had a 92% market share in 2008, but that has dropped to 57% in 2018. Over the last ten years, 23 of those top 30 lenders are newly in this elite group which means that only seven have been able to sustain their leadership…(read more)

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Broker, LOS, Warehouse Products; Nationwide Events and Free Training
Broker, LOS, Warehouse Products; Nationwide Events and Free Training

Marketing, POS, Appraisal Products; Non-QM Company and Product News

Posted To: Pipeline Press

Scholars disagree on how much sleep we need, what time is the best time to wake up, and what time to go to work. But then again, scholars disagree on everything. Being a capital markets person on the West Coast is not easy, with most rising between 4 and 5AM and at their desks by 5 or 6 AM. This was really a convoluted way of working in the news that in California the Governor has signed a law mandating a later (8AM) start time at public elementary schools, 8:30 for high schools. What the heck? “Shifting to a later start time will improve academic performance and save lives because it helps our children be healthier.” Couldn’t they just go to bed a little earlier? Speaking of nocturnal patterns, most of the U.S. doesn’t change their clocks back an hour until November…(read more)

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Marketing, POS, Appraisal Products; Non-QM Company and Product News
Marketing, POS, Appraisal Products; Non-QM Company and Product News

Corresp. Jobs; Marketing, Pricing, DPA, 2nd Lien Products; New Vendor Offerings

Posted To: Pipeline Press

Fun with HMDA! Compliance folks everywhere know that yesterday the CFPB (“educate through education rather than enforcement”) issued a final rule amending Regulation C to extend the current temporary threshold of 500 open-end lines of credit to January 1, 2022. The final rule also incorporates into Regulation C the interpretations and procedures from the interpretive and procedural rule issued by the Bureau in August 2018, and further implements the amendments made to the Home Mortgage Disclosure Act by the Economic Growth, Regulatory Relief, and Consumer Protection Act. You can access the final rule here. The Bureau has also posted a summary of the final rule and an unofficial, informal redline reflecting changes to Regulation C to assist industry and other stakeholders. Lender…(read more)

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Corresp. Jobs; Marketing, Pricing, DPA, 2nd Lien Products; New Vendor Offerings
Corresp. Jobs; Marketing, Pricing, DPA, 2nd Lien Products; New Vendor Offerings

DPA, Pricing, Digital Products; Vendor News; Lenders Managing Capacity

Posted To: Pipeline Press

I am in Chicago with the FHLBank Chicago, and, despite the congestion and energy on the streets, the numbers tell us that the local economy is slowing. (In local news, for his work on batteries, University of Chicago alum John Goodenough – try growing up with that one – became the oldest Nobel Prize winner at 97!) Traditionally, U.S. downturns have been homegrown and household-led, sparked by spikes in interest rates and Wall Street run amok, but that’s arguably not the case this time. Instead, what’s driving recessionary fears in investors, and if we keep talking about it, it will happen, is a global, geopolitical shock to business sentiment from President Donald Trump’s trade war on China and Britain’s potential pullout from the European Union. That’s why…(read more)

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DPA, Pricing, Digital Products; Vendor News; Lenders Managing Capacity
DPA, Pricing, Digital Products; Vendor News; Lenders Managing Capacity

Broker, Non-QM, Digital Products; Changes at Freddie; USDA Primer

Posted To: Pipeline Press

What’s your price hit for a non-owner-occupied loan? Currently, there are 12 million single-family homes being rented in the United States, 35 percent of all rental housing around the country, worth $2.3 trillion. Historically, single-family homes were rented out by owners or small real estate companies, but as we know that’s changing as large corporations have increased their ownership share . It is estimated that the homeownership rate decline, from 67% to 63%, from 2007 to 2014 means that about 1.5 million households shifted from owning their home to renting it. That’s $220 billion in housing wealth transferred from once-homeowners directly to larger corporations. Think Invitation Homes, American Homes 4 Rent, Progress Residential, Main Street Renewal, and Tricon American…(read more)

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Broker, Non-QM, Digital Products; Changes at Freddie; USDA Primer
Broker, Non-QM, Digital Products; Changes at Freddie; USDA Primer

Digital, Correspondent, and Broker Products; HUD, FHA, VA Information

Posted To: Pipeline Press

As Treasury yields head toward the lows of September, and Monday’s bond market holiday, let’s start Tuesday with some “trivia.” Did you know that one of the handful of original Cabinet members who are still in Donald Trump’s Cabinet is Secretary of HUD , Dr. Ben Carson. He has an impressive list of qualifications, and the evidence on his walls to back them up. The United States Department of Housing and Urban Development, with over 8,000 employees, oversees federal programs designed to help Americans meet their housing needs, seeks to increase homeownership, support community development, increase access to affordable housing free from discrimination, and dozens of other functions. It sells houses , oversees Ginnie Mae and the FHA programs, and has Brian Montgomery…(read more)

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Digital, Correspondent, and Broker Products; HUD, FHA, VA Information
Digital, Correspondent, and Broker Products; HUD, FHA, VA Information

LO Pricing/Research Products; Training and Events

Posted To: Pipeline Press

Remember those futuristic movies where humans battle machines? Are we really that far off? Here’s one development: artificial intelligence is transforming drones from picture takers into action takers. “One example of machine learning in drone inspection is Neurala’s Brains for Bots. The software helps drone companies apply machine learning to data collected by drones and organize it.” Appraisers running a team of drones instead of visiting properties? Already happening . (Did I mention that I now use AI to write this commentary every day? No I didn’t; it’ll never happen.) Switching gears, how about The Seattle Times reporting how some lenders are now considering the potential future value of Amazon stock as a qualifying factor for a home loan? This is a change in policy since lenders…(read more)

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LO Pricing/Research Products; Training and Events
LO Pricing/Research Products; Training and Events

Broker, Correspondent Products; Non-Agency, Expanded Credit Product News

Posted To: Pipeline Press

We’re entering the forecasting season, where thousands of managers have to come up with figures for 2020 regarding volumes, margins, and profits for CEOs and owners. Good luck. (Yesterday I told my cat Myrtle that she needed to provide me with 2020 forecasts for kibble expenses, litter use, and mouse & lizard consumption. The look of disdain she gave me was the equivalent of giving me the “middle claw.”) But if you’re looking for guidance, the Mortgage Bankers Association is a great place to start. In 2018 we did $1.64 trillion in originations, and the MBA predicts that in 2019 we’ll clock in with $1.94 trillion, and in 2020 $1.73 trillion, down about 10%. Dr. Michael Fratantoni noted that, “We are closely watching app volume to determine whether we will…(read more)

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Broker, Correspondent Products; Non-Agency, Expanded Credit Product News
Broker, Correspondent Products; Non-Agency, Expanded Credit Product News