Be careful with your advertising! HUD announced today that it is charging Facebook with violating the Fair Housing Act by encouraging, enabling, and causing housing discrimination through the company’s advertising platform. Not a happy situation. Are you happy? Does “happiness” depend on what state you live in (geographically, not emotionally) or do happy people gravitate toward certain states? Thanks to Brian B. for sending along a map of the U.S. based on the happiness of 115,000 survey respondents. (Frankly, I’m happier when I don’t have to answer surveys.) Happiness is pretty subjective, and one reason for language, besides to gossip, is to clear up confusion.

Lender Products and Services

Don’t miss out! There is still time to register for the American Pacific Mortgage Spring Sales Summit.  The jam-packed agenda and breakout sessions are designed to provide you with inspiration and strategies to elevate you and grow your production by creating experiences that matter. Discover first-hand how APM operates and commits to supporting Originators. The Summit still has dates in Concord, California and Seattle/Bellevue Washington, so you can choose the city most convenient for you. For qualified candidates that want to take a serious look, we will cover the cost to get you there!  Click here to register or contact Dustin Block (303.378.3166).

Appraisal promotion extended! NewRez Wholesale is extending its free appraisal promotion through April. Choose one of NewRez’s Smart products or a NewRez FHA loan and NewRez will reimburse your borrower’s appraisal fee. Contact your AE today to learn more about how you can get an appraisal fee credit for your borrower’s loan closing. Exclusions and restrictions apply. Max appraisal value reimbursement for Smart Series is up to $650 and FHA up to $550. This offer is available for all new locks through April 30th.

Housing Policy, Freddie and Fannie

Readers should remember that “housing policy” includes a plethora of things besides Fannie and Freddie. But “housing policy” was in the news yesterday. President Trump has signed a presidential memorandum to initiate reform of the housing finance system. A presidential memorandum, not quite an executive order, is “a type of directive issued by the President of the United States to manage and govern the actions, practices, and policies of the various departments and agencies found under the executive branch of the United States government.”

LOs should know that this topic is officially on the Administration’s radar screen. The traditional 30- year mortgage is expected to be safe. According to the White House release, the relevant agencies are to develop reforms that would end conservatorship of the GSEs, improve regulatory oversight, and promote competition. It also directs Treasury to prepare a reform plan for Fannie Mae and Freddie Mac as well as for HUD to prepare a reform plan for the housing finance agencies it oversees. The White House push on taking the mortgage giants out of conservatorship is expected to intensify upon the expected Senate confirmation of Mark Calabria to lead the Federal Housing Finance Agency.

FNMA came out with an official policy on non-citizen borrowers, thus shifting some of the burden away from the lender (who had to determine if the borrower is lawfully present). It specifically mentions DACA borrowers and state they are eligible. Large investors are reviewing their policy given this change Rumor (and I stress rumor) has Mr. Cooper soon following Fannie and will send out an updated overlay matrix.

Fannie Mae updated its position on DACA. Although its policy has not changed, Fannie Mae is providing guidance to help lenders determine eligibility for non-U.S. citizen borrowers.  This additional guidance explains what acceptable documentation is to support that a borrower is “legally present” and clarify that a repurchase is not eminent solely based on a borrower’s immigration status after closing.

The Freddie Mac Guide Bulletin 2019-6 announced the following information: The Freddie Mac Servicer Honors and Rewards Program (SHARP)SM. Updates to its Servicer requirements for REO properties. Changes to the Servicer Success Scorecard. Updates to the Investor Reporting Change Initiative.

Fannie Mae was set to release an update to Desktop Underwriter® (DU®) 10.3 that would roll out simplified and consolidated DU validation service messages. An issue was discovered during implementation, however, delaying some updates to its validation services enhancements. Find out details in its release notes.

Wells Fargo Funding has removed its overlay for Affordable Loan ULDD Data Collection Form. This form, (Form 11) is no longer required for any affordable loan purchased on or after March 12th regardless of the underwriting type or delivery date. Wells also noted beginning March 18th, UMBS will replace FNMA and FHLMC as the loan product listed on Mandatory Commitments registered for June or later pools.

Mountain West Financial issued its Wholesale Bulletin 19W-023 outlining the Desktop Underwriter Desktop Originator Release Notes DU Version 10.3 now in effect.

PennyMac posted various updates aligning with Fannie Mae’s announcement SEL-2018-09 and its Correspondent Group posted the following announcements: Updates to Conventional LLPAs.

(Recall that PennyMac has discontinued its Home Possible Advantage product line(s). The Home Possible & Home Possible Advantage LTV/CLTV/HCLTV have now been combined into one product offering. As a result, these products will no longer be offered in the Optimal Blue system. Customers utilizing this content for proprietary products have six months from 10/31/18 to reconfigure eligibility/adjustment sourcing.)

Click here for the loanDepot weekly announcement covering the following topics:  Co-op combined matrix, Home Possible combined matrix, HomeStyle Renovation and Non-Arm’s length transactions.

US Bank clarified that its expansion of Non-Permanent Resident Alien (NPRA) Credit Policy for Agency loans is also applicable to HFA for loans underwritten by US Bank.

Gateway has discontinued its DU Refi Plus and Home Possible Advantage product line(s). As a result, these products will no longer be offered in the Optimal Blue system. Customers utilizing this content for proprietary products have six months from 2/27/19 to reconfigure eligibility/adjustment sourcing.

Capital Markets

Fannie Mae has issued a Selling Notice to provide guidance on forward trading of Uniform Mortgage-Backed Securities (UMBS™).

Freddie Mac announced it is set to issue the first Freddie Mac 55-day payment delay, TBA-eligible Uniform Mortgage-Backed SecurityTM (UMBSTM) on June 3, 2019. This announcement follows the recent update to the Securities Industry and Financial Markets Association’s (SIFMA) good delivery guidelines to enable trading of UMBS issued by Freddie Mac and Fannie Mae in the TBA market. As a reminder, Freddie Mac will no longer issue new Gold Participation Certificates (PCs) with a 45-day payment delay after May 31, 2019.

U.S. Treasuries, with agency MBS prices tagging along, extended their recent rally yesterday. In this country the new Federal Reserve's Board of Governors nominee Stephen Moore said the Fed should immediately cut rates by 50 basis points and President Trump signed a memorandum to initiate reform of the housing finance system with Treasury and HUD tasked with GSE reform. Overseas the Reserve Bank of New Zealand acted dovishly, leaving its official cash rate at 1.75% and indicting that the next move in rates is most likely to be a cut, while European Central Bank President Mario Draghi said the ECB may maintain its ultra-accommodative stance for even longer. Draghi’s comments helped drive the 10-year bund back below zero.

MBS traders & investors are reacting. The rally has caused holders of mortgage-backed securities to look for ways to improve convexity and re-position for a more dovish Fed. Hedge ratios have been shortening more quickly, and while we haven’t seen a dramatic amount of under-performance within mortgages yet, watch for renewed interest in specified pools that are less likely to pay off early.

Today’s data started with 4th quarter GDP (revised -.4% to 2.2%, weak but old news) and weekly jobless claims (211k, strong). The Pending Homes Sales Index for February is the next release and precedes March KC Fed manufacturing figures and several Fed speakers, including Governor Quarles, Vice Chair Clarida, Governor Bowman, Atlanta’s Bostic, New York’s Williams, and St. Louis Bullard. Also today, U.S. / China trade talks will resume when USTR Lighthizer and Treasury Secretary Mnuchin travel to Beijing. The day starts with the 10-year yielding 2.36% and agency MBS prices roughly unchanged versus Wednesday’s close.

Jobs

Cardinal Financial Wholesale is looking to hire highly motivated and passionate Inside Account Executives in Charlotte, NC, and Chandler, AZ, and Outside Account Executives in the Southeast, Southwest, West Coast, and Midwest markets. “In this unpredictable industry, we don’t just ‘ride it out.’ We operate in the mindset that ‘this is the new norm,’ whatever it might be that day. How? With open-minded, eager professionals on our team who are backed by the industry’s most accurate LOS. We saw the pain points in mortgage lending and decided to build a platform that would help us deliver the best mortgage experience possible. With Octane®, we give you more control over the process than any other lender can offer. We believe that more control results in a better experience. Contact our Director of Recruiting Erik Skalstad (407-792-9096)!”

“An extremely proven, veteran group of Correspondent Sales Executives (with over 95 years in collective experience) looking to place our talents with an established and/or up and coming mortgage banking firm. Our group offers established counterparty relationships nationwide, $2.4 billion in monthly tape opportunity along with Co-Issue structure abilities. The proposed mortgage banker firm should be financially stable, tech-ready from Day 1, customer service excellence driven, and display a strong desire to build-out retained MSR holdings. We offer a true ‘plug & play’ solution. Interested parties should contact Cindi; principals only please, and please specify the opportunity.”

“How many consecutive years has PrimeLending been ranked a Top 10 Best Workplace in Financial Services and Insurance? Five! That’s why we’re excited and proud to announce our #6 placement on the 2019 Great Place to Work® and Fortune list. So, how do we continue to be a perennial award-winning company year after year? We’re committed to giving our employees the best tools, the best environment, the best processes and the best teammates in the industry to help them thrive on a daily basis. PrimeLending isn’t just a great plaBrian Miller for a chat about what’s possible for you and your career at PrimeLending.”

A $10,000 Underwriting Guarantee and other innovative service offerings set Summit Mortgage Corporation apart from its competitors and give referral partners the confidence their loans will close. Summit continues to expand nationwide and is looking for Top Sales and Sales Leadership talent. Summit is a privately-held, well capitalized, retail lender headquartered in Minneapolis, MN. Since 1992, Summit has been helping originators meet their client's needs by providing all of the advantages of a large company with the entrepreneurial spirit of a startup. We are lean on layers and deep in capabilities; including full technology and marketing suites. Originators have direct access to in-house support teams which enable them to exceed client expectations and build their businesses. If you are a loan officer, branch manager or sales leader looking to work with an agile team that will execute on your behalf, contact HR@Summit-Mortgage.com or visit Summit’s Career Site.

There’s a big shake-up going on in the mortgage industry. Wholesale brokers are picking up momentum, gaining market share, and simply dominating the mortgage space. Find out what it takes to make the switch from retail to independent at BeAMortgageBroker.com. We can help you take the next steps toward opening your own mortgage broker shop or help match you with an independent mortgage broker in your area. Call us for a free, confidential consultation and continued support throughout the process at 800.229.6342 or learn more at BeAMortgageBroker.com.

John Burns has joined ClearEdge Lending (Aliso Viejo, CA & Atlanta, GA) as VP of Sales to lead the company in its next phase of growth into the Southeast region. John brings 25 years of experience in the wholesale and correspondent mortgage lending channels in sales, sales management, and operations management with a long history of creating growth and profitability. “We are excited to enter the Southeast marketplace and provide brokers an excellent way to expand into Non-QM lending by offering a full service, local branch to support credit and customer service needs.”And Don Brenneman will support the branch as Sr. Underwriter. With 31 years mortgage experience, Don looks forward to help shape ClearEdge’s advantage in the Non-QM space in the Southeast. As Non-QM origination volume continues to grow at a robust pace, ClearEdge Lending is committed to helping the industry continue its upward trajectory with their streamlined guidelines and team support. Those interested in a growth-oriented career with ClearEdge Lending should email John Burns for outside sales positions in GA, FL, NC, SC, TN.