The MBA tells us that independent mortgage banks and mortgage subsidiaries of chartered banks "average production volume totaled $417 million per company in the fourth quarter of 2014, down from $437 million per company in the third quarter, but up from $367 million per company a year ago." The fabled MBA Vice President of Industry Analysis Marina Walsh stated that these companies reported a net gain of $744 on each loan they originated in the fourth quarter, down from $897 per loan in the third quarter, but keep things in perspective: we saw $150 per loan (9 basis points) a year ago. And once again LOs are suggesting that companies should instead break even and pass along any potential profit in the form of lower margins and more aggressive rate sheet pricing. But that is a failed argument for another time...

For a quick smattering of relatively recent lender changes...

United Wholesale Mortgage announced the release of Elite ARM, a new loan product that has been added to its Elite and Elite High Balance program. UWM's Elite family of products includes conventional fixed, conventional high balance fixed, and now ARMs. In addition, its 5/1 ARM will be offered with a lower cap of 2/2/5.

Mountain West Financial will allow W2 transcripts for borrowers who only use W-2 income to qualify for a loan approved by Desktop Underwriter (DU). For Borrowers whose income used to decision the loan is made up exclusively from W-2 income, the originator must follow DU guidance when requesting documentation from the borrower to include in the loan file. To view details, review bulletin 15W-021.

NYCB Mortgage, for 30 and 15-year Conforming Fixed High Balance loans, the High Balance LLPA changed from -.750 to -1.000. And table-funded loans, Conforming Fixed High Balance Loans are eSign eligible. 

Flagstar Bank will no longer require the Undisclosed Debt Acknowledgement, Doc. #3270 form to be submitted with new loan files. As such, this form has been removed from its Sellers Guide. In lieu of this form, a signed letter of explanation for all credit inquiries found during the loan process will be required.

As a reminder, when delivering loans to PennyMac, Lenders rep and warrant that individual loans comply with all applicable laws, including any local, state or federal law. When there is a federal law that is more restrictive than a state law, the federal law must be adhered to. If the income or asset source is not acceptable under all laws, such as income generated through marijuana sales, then the loan is ineligible for PennyMac; this includes both self-employed borrowers and wage earners working for a company.  Likewise, all use of the subject property must be in compliance with all laws.  Properties that have mixed-use that do not meet all local, state or federal laws are ineligible for purchase by PennyMac.

Freddie Mac made it possible to submit expense claims on all loan modifications for recordation fees, title costs, notary fees, and Home Value Explorer (HVE) costs in the Freddie Mac Reimbursement System. Freddie first announced this update in Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-16 with an effective date of March 1 but was able to make this system update earlier than expected. This means you can start using the recordation fees, title costs, notary fees, and HVE codes now, even though it's not required until March 1. Beginning February 9, 2015, Freddie will no longer accept any Home Affordable Modification Program (HAMP^®) claim requests that are submitted using the process outlined in Guide Section C65.8. This is an update from the original announcement in Guide Bulletin 2014-16.

United Wholesale Mortgage announced the availability of Freddie Mac's new Home Possible Mortgage program.

Wells Fargo has posted its Newsflash covering updates and changes such as Overlay Removal and Policy Expansion: Condominium Requirements - Conforming, Prior Approval and Non-Conforming Loans, Overlay Removal: Residual Income Evaluation Eliminated for VA Loans and Updated Homeowners' Association Certification Review Forms.

I think of Greece as the proverbial wedding crasher who showed up to the polygamous economic wedding between a handful of stronger economies. "Who's that by the shrimp platter?" "He says he's Aunt Edna's oldest child." "Who's Aunt Edna?" Greece will probably perform as well as a vintage '07 SISA loan in 2015; however, there are still some important questions to answer with the sharks circling the EU gyro stand, for instance, who and what have taken on the biggest default risk? Wells Fargo writes, "Data from the World Bank show that the external debt of Greece, which comprises the amount of debt that the Greek household, business and public sectors owe to foreign creditors, totaled $520 billion at the end of Q3-2014. Although the amount of Greek external debt has slowly receded from nearly $600 billion in early 2009, the composition of that debt has changed markedly over the past six years." According to WF, the Bank for International Settlements data shows that foreign bank exposure to Greece has plunged from more than $300 billion in 2Q08 to only $46 billion as of the start of 2015. German and British banks each have about $13 billion on the hook to Greece and exposure among American banks totals about $10 billion.

How about this bond market!? The world knows that the Fed is going to raise short term rates later this year, yet yields are just as low as they've ever been! We did have a slew of news Wednesday: Construction Spending fell .1% in February (and January was revised lower), the ISM Manufacturing Index fell in March (down five months in a row), private payrolls increased by 189k in March (according to ADP), the MBA told us that mortgage applications were up 4.6% last week,

(Speaking of mortgage applications, do the numbers tell us we're entering the "home buying season? The MBA tells us that there was a broad based increase in mortgage applications last week relative to the week prior. The increase in purchase volume was led by a nearly 6 percent increase in both conventional and government markets, perhaps signaling that households are finally ready to begin the home-buying season...the refinance share decreased to 60% from 61%, and the ARM share decreased to 5.6 %.)

(Read More: MBA Notes "Broad Increase" in Applications)

So perhaps the U.S. economy is not doing well enough for the Fed to raise short term rates in two months, and instead wait until later in 2015. Wednesday everyone was talking about how money has been moving out of stocks and into a flight to quality in bonds. Certainly earnings estimates for the S&P 500 have been coming down for a while due to lower oil prices. By the way analysts are predicting that tomorrow's jobs report will show an increase of 245k. Note that the government will be open on Good Friday however the stock markets will be closed and bonds will have an early close. We could see some volatility in bonds if the payroll data is unusually weak or wage inflation in unusually high.

For numbers we had a 1.86% close on the 10-yr Wednesday and this morning we're at 1.85% with agency MBS prices a shade better.

Jobs and Announcements

On the jobs & expansion front, Broadview Mortgage Corp, a family owned business based in Orange, California, continues to grow and is seeking Wholesale Account Executives to expand its TPO Lending Platform in California (including the Central Coast, Central Valley, San Francisco, San Diego, far Northern California, and East Bay) and Utah. Since 1988 Broadview Mortgage has provided residential loan programs to serve all of California. "We strive to distinguish ourselves through honest, transparent, business relationships with preferred client brokers, loyalty to our employees and commitment to empowering and educating the communities we serve. Broadview Mortgage offers a wide range of products including 1st time homebuyer programs, State Housing Authorities, USDA and a proprietary Investment Property Finance, unlimited properties owned, and program including non-warrantable condos/condotels. If you are an experienced AE who's looking for a company that will represent you well, with little or no conflicts with existing accounts, Broadview Mortgage may be an excellent career choice." For more information contact Director of Wholesale Business Development Howard Hoyt.

On the retail side, SecurityNational Mortgage Company, licensed in 48 states, has tripled in size over the last 18 months. "'We are expanding our branches in all areas and currently looking to fill sales positions in the Texas markets. We are looking to grow our Loan Officer & Branch Manager base in Austin, Dallas, El Paso, Fort Worth, Houston, San Antonio, & The Valley. Join a reputable, publicly traded company, dedicated to fully supporting your sales efforts through state of the art technology, marketing & CRM, local operations team, aggressive compensation plan, medical/dental/vision and matching 401K.' SNMC's 22 year history in the mortgage sector demonstrates established power and security within this ever evolving industry. Furthermore, great leadership and an active role in RESBOG for the MBA have landed its President, Lynn Beckstead, as one of the Top 100 Mortgage Executives in the United States." For a confidential interview, please contact The Director of Business Development Kristin Clardy. Co. NMLS #3116.

In Florida a multi-billion dollar full agency direct mortgage lender is expanding its geographic footprint and is searching for very select, purchase driven mortgage branches. "As our branch partner in this one-of-a-kind model, we will provide each of your MLO's with multiple PRE-QUALIFIED, PRESET, IN-PERSON customer appointments every week.  These borrowers are highly motivated and actively seeking to purchase a home in the next 30 days. This model offers your MLOs the opportunity to generate more personal referral business by introducing these fully approved buyers to their favorite real estate agent.  For added convenience, complete fulfillment is done right here in Florida. As a direct seller to all agencies, we offer our partners a comprehensive suite of products with virtually no overlays.  Qualified candidates in search of benefiting from 100% branch credits and full margin / MLO comp control are encouraged" to submit a letter of interest and/or resume to me at rchrisman@robchrisman. com.

Lastly in correspondent news, "BOK Financial Correspondent Mortgage Services, whose relationship-based approach on banks and credit unions put us in the Top 25 Correspondent lenders in 2014, is pleased to announce we now purchase Loans that utilize Fannie Mae's reduced MI feature. Eligible Loans are limited to our FNMA Conforming Fixed Rate Product and Loans with LTVs of 95.01% - 97%. The Loan Level Price Adjustment ("LLPA") to utilize this MI option is on our rate sheet. In addition, understanding the appropriate year for tax returns is important.  When executing the 4506-T, lenders must consider documentation delays. The IRS typically takes 8 weeks to add new/corrected filings. Requesting a 2014 transcript post deadline might yield no results. In this instance, pull the transcript for the prior year and place in the closed loan file.  Also include the 2014 transcript to confirm the return was not yet available." For more information on BOKF Correspondent Mortgage Lending, contact Client Relations at ClientRelations@bokf. com or 855.890.1485.