With news swirling of US Bank’s mortgage reorganization last week, let’s not forget the regulator that touches every residential lender: the CFPB. There is industry chatter that it is skipping TRID-related presentations at conferences, which hopefully is not true as we all are looking for firm guidance and rules on the topic seven months into it. And there is also the PHH/CFPB situation. But Director Richard Cordray, whose term is due up in 2018, is also watching other court cases in establishing exactly what the bureau can and can’t do. For example, the CFPB was dealt a setback last week. "A federal judge struck a blow to the Consumer Financial Protection Bureau's recent foray into college accreditation, ruling that the bureau lacks the authority to investigate how accreditors approve for-profit colleges."

How about changes in how underwriters view credit?

According to the TransUnion Q4 2015 Industry Insights Report, as more consumers, and more nonprime consumers, are receiving auto loan and credit card access, delinquency levels for these credit products have only risen slightly and remain at relatively low levels. Both mortgages and personal loans experienced yearly drops in their delinquency levels, with mortgages dropping nearly 30% in the last year. This report states the mortgage delinquency rate declined from 3.29% in Q4 2014 to 2.37% in Q4 2015. While delinquencies dropped, mortgage debt per borrower increased from $187,139 in Q4 2014 to $189,707 in Q4 2015. The rapid decline in delinquency but increase in debt is a positive sign for the residential mortgage market, per TransUnion. TransUnion data show that at the conclusion of 2015 there were 1.26 million more subprime borrowers with credit card accounts showing a balance, and 1.21 million additional subprime consumers with auto loan accounts, compared to the end of 2014. The share of subprime accounts compared to other risk tiers also rose slightly in the last year. TransUnion's report includes auto loan, credit card as well as mortgage loan statistics.

Zelman and Associates published its Mortgage Originator Survey indicating a continuation of a solid purchase market. Survey respondents reported a 19 percent YoY increase in purchase applications in February, compared to a 15 percent average in 2015. Applicant credit quality index reached 62.3 in February, slightly down from 62.5 the prior month. The drop in the index is largely due to a greater share in first time home-buyers and the recession-impacted consumers. Underwriting criteria also dropped to 61.8 in February from 62.4 a month earlier as lenders have reduced credit overlays, particularly on LTV and credit score restrictions. Entry-level mortgage credit availability rose to 66 from 65.7 last month and private mortgage insurance index decreased to 72.3 in February due to less availability of LPMI. Refinance applications increased 3 percent YoY compared to a 24 percent decline in January.  As TRID has been underway for five months, most of the industry has adjusted to the new guidelines, but post-closing loan sale challenges remain. For more information regarding the Mortgage Originator Survey, contact Ivy Zelman. 

And lenders are reacting. For example, "To improve transparency and to help clients better understand how a borrower's credit is reviewed during the manual underwriting process, Sun West has updated its manual underwriting guidelines specifically for the review of a borrower's credit. The updated guidelines include additional information on how various risk factors associated with a borrower's credit are analyzed during a manual underwriting review."

With all this going on in the industry, at least things are relatively quiet in the capital markets arena although it is still "up a little, down a little." Monday U.S. Treasuries, and agency MBS prices, declined slightly for no real reason. In fact, the only news, in theory, should have moved rates lower: new home sales were slightly soft in March, following a bad miss on housing starts and building permits data reported last week. The $26 billion 2-year Treasury auction was met with moderate demand.

For news today we'll have Durable Goods - always volatile depending on things like aircraft orders, and also the S&P/Case Shiller series of numbers if you want to find out housing prices in February. And let's not forget Consumer Confidence. We closed the 10-year Monday at a yield of 1.90% and this morning, in the very early going, it has improved slightly to 1.89% - one would expect agency MBS prices to be slightly better but not enough to impact rate sheets for borrowers. That may change as the economic news comes out.


Upcoming events

Ever had an agent say to you "I am already working with another loan officer"? Ever been used as the lender of last resort? The challenges of winning agents over and avoiding being relegated to the lender who gets the loans that others won't approve are one of the toughest challenges when trying to increase purchase volume. Successful agent relationships develop when you know exactly what to say and how to say it. National Mortgage Professional Magazine hosts a FREE webinar presented by Ron Vaimberg, President of Ron Vaimberg International and Executive Director of NMP University titled "How to Deliver the Ultimate Agent Presentation" this Thursday, April 28 at 2PM EDT/11AM PDT.

The origination of construction loans can be complex to say the least. How does TRID factor in? BankWebinars is offering a 2-hour webinar, "TRID for Construction Loans". This webinar is designed to fill the void from the lack of regulatory guidance for construction loans. This webinar will explain coverage and exemption rules, provide section-by-section guidance on completing the Loan Estimate and the Closing Disclosure for common construction loan options, and answer the many questions you have regarding proper disclosure of construction loans. Click here to register for the Wednesday, April 27th webinar, the cost is $265. There is also the option to both register and receive CD recording for $395.00, click here.

May 5th is the date to join Maryland Mortgage Bankers Association (MMBA) for its Annual Conference featuring fabled MBA Chief Economist Mike Fratantoni.

Join Michigan Mortgage Lenders Association (MMLA) and MORBANPAC for its luncheon May 11th in East Lansing. Learn about legislative and regulatory issues. on the state and national level. You will also be helping MORBANPAC, the MMLA's Political Action Committee. Please take a moment to click on the video to watch this message from MMLA Immediate Past President and Legislative/MORBANPAC Chairman, Andy Baker. Strength in number helps the MMLA press forward on the many issues that are impacting our industry. Click here to register.

Join Washington Association of Mortgage Professionals (WAMP) in Tacoma on Thursday, May 19th, 11-2PM, for the 2nd installment of its popular Coaching for Success series. Details and registration are availableon this link.

Taxes were due a little over a week ago, and plenty of lenders released 4506-T and other tax-related changes.

First Community Mortgage posted new 4506T form requirements.

Beginning March 25, 2016, all 4506T forms submitted to Freedom Mortgage Wholesale for processing by the IRS must be completed on the revised form dated 09-2015 and have the attestation box marked. If the wrong form is completed or the correct form without the attestation box marked it will be returned for correction and will delay the processing of the tax transcripts/W2s.

LHFS Wholesale issued a reminder regarding policy as it relates to 4506T transcripts and Extension requirements. For transactions after April 15th, 2016 and an extension was filed, the following must be provided: Copy of the extension (IRS Form 4868), If money is due on the extension, include a copy of the cancelled check for the IRS tax payment. 4506T results must show "No Results Found" for 2015. If the borrower has filed their 2015 tax return and the tax transcript is unavailable, the following must be provided: A copy of their 2015 tax return. 4506T results must show "No Results Found" for 2015. Evidence the refund for 2015 has been received or a copy of the cancelled check for the IRS tax payment.

Jobs and Announcements

In job news a fast growing, independent Consumer Direct mortgage banker in Dallas, TX, is hiring staff for its new Call Center operation to support retention of a growing servicing portfolio.  The new, seasoned CD lead executive must now add experienced LOs, processors, underwriters, and closers. LOs will enjoy an innovative automated sales cycle that will drive high lead conversion. Sales and operations staff will appreciate the familiar Ellie Mae Encompass LOS system. Limited manager positions also available. The company has deep capital, and all Agency approvals, including Fannie, Freddie and Ginnie Mae. Knowledge of Ellie Mae Encompass a plus for all positions. Interested parties can send confidential resumes to me; please specify opportunity. (And please excuse any delays in response due to travel in NC and KS.)

In wholesale personnel news & expansion UHM Wholesale welcomes two new members to its Wholesale Production team. "Welcome to Joshua Navarro as Regional Director of North Central U.S and Larry Fontaine as Account Executive in the Midwest. Joshua Navarro comes to UHM with 13 years of industry experience and as Regional Director of North Central U.S. he will be growing TPO business with brokers and emerging bankers in Illinois and Northwest Indiana. In addition, he will also assist in recruiting experienced AEs in Wisconsin, Minnesota, and Iowa. UHM Wholesale also welcomes Larry Fontaine as Midwest Account Executive. Larry will be responsible for signing up brokers, teaching them the UHM process system, and furthermore developing long term relationships with owners and loan officers. Larry will grow his broker base while working towards expanding our Midwest Region. We continue to grow and are looking to aggressively add AE's in multiple states around the country. Feel free to connect with Jim Wickham, CMB to learn more."

And congratulations to Pete Clancy who recently joined national lender Caliber Home Loans as Regional Vice President for the Retail Division. Pete joins Peter Carney who is RVP managing Caliber's Southern New England region (CT, RI, and NY). "Caliber's recruiters are rolling up their sleeves and working hard to spread the word as the national lender maintains its aggressive regional growth strategy. Caliber continues to impress with its expansion, recording a 186.2% increase in volume from the previous year, and are now up to #2 on the list of best companies to work for per Mortgage Executive magazine. Caliber Home Loans is actively looking for talented Branch Managers, Loan Consultants and Operation's Staff throughout New England and New York. To learn more about Caliber Home Loans and opportunities in this market, please contact Retail Expansion Manager Larry Eisenstat directly at 917-979-3950.  If you are interested in learning more about Caliber in other regions, please visit www.joincalibernow. com."

Altisource Portfolio Solutions S.A., a provider of real estate, mortgage and technology services announced Jon W. Gerretsen has joined the company as President of Altisource Origination Services. "AOS provides a broad range of mortgage origination solutions that help to lower costs, gain efficiency and manage risk for lenders. Since 2014, Altisource has reviewed loans totaling more than $17 billion."

And Norman Scott has joined Virginia's First Guaranty Mortgage Corp., which provides correspondent, wholesale and retail residential loan origination channels, as a relationship manager in the warehouse lending division.