Some may have the perception that no MI company has ever paid a claim, which isn’t true. USMI, the trade group for the majority of MIs, states that MI companies have paid over $50 billion since Fannie & Freddie entered conservatorship, having paid roughly 97 percent of valid claims to date with the remainder due over time. Employees of MI companies will tell you that reminding lenders of this has been an ongoing challenge. (The head of Bank of America Corp. said that banks would be able to supply a bigger share of funding for home purchases if the standard down payment for buyers was cut to 10 percent from 20 percent. Huh?)

Appraisal Issues

Appraisals taking too long in your county, and thinking that it should be attributed to shortfalls in the availability of state-certified and -licensed appraisers, especially in rural areas? "Responding to concerns over the limited availability of state-certified and -licensed appraisers, particularly in rural areas, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency issued an advisory that highlights two options to help insured depository institutions and bank holding companies facilitate the timely consideration of loan applications.

"Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) requires appraisals for federally related transactions to be performed by individuals who meet certain state-certification or -licensing requirements. Today's advisory points to alternatives that may help in areas facing a shortage of appraisers.

"The first option highlighted in the advisory, temporary practice permits, allows appraisers credentialed in one state to provide their services on a temporary basis in another state experiencing a shortage of appraisers, subject to state law. The advisory also discusses reciprocity, in which one state allows appraisers that are certified or licensed in another state to obtain certification or licensing without having to meet all the state's certification or licensing standards.

"The second option, temporary waivers, sets aside requirements relating to the certification or licensing of individuals to perform appraisals under Title XI of FIRREA in states or geographic political subdivisions where certain conditions are met. Temporary waivers may be granted when it is determined that there is a scarcity of state-certified or -licensed appraisers leading to significant delays in obtaining an appraisal."

Fannie Mae has made several policy and process changes to help its customers serve condo buyers and refinancers more simply and efficiently. Fannie has reduced the fee for Streamlined Project Eligibility Review Service (PERS) reviews of established condo projects from $1,000 to $500. Lenders get the certainty of a PERS review and access to Fannie Mae experts for assistance. View the PERS Overview. Extended the maximum eligibility term for Final Project Approvals through the streamlined PERS process to 24 months (at Fannie Mae's discretion). View Announcement SEL-2017-04. Waived the condo project review requirement for most Fannie Mae-to-Fannie Mae limited cash-out refinances (maximum loan-to-value ratio 80%). This change creates a simpler, more efficient process for our customers for loans already on Fannie Mae's books. Developed a Condo Buyer's Guide that lenders and other housing professionals can provide to borrowers.

U.S. Bank reminded folks of its U.S. Bank Construction to Perm and or standalone lot financing: All-in-one close, limits up to $6 million, non-QM debt ratios up to 50%, CA LTVs to 90%, maximum loan limit $625,500, portfolio lender, owner occupied, second & vacation homes only. Interested parties can contact Mark Linton or any other Certified Construction Specialist. (Not all MLOs can do Construction at US Bank but they can refer to a Specialist)

The 2017 Income Limits for the Single Family Guaranteed Loan Program were published on May 17, 2017 through a special Procedure Notice (PN). The Guaranteed Underwriting System (GUS) and the Income Eligibility calculator in the Eligibility website have been updated to use the new income limits.

Plaza's manufactured housing guidelines have been updated to no longer allow Hawaii and Rhode Island as eligible property states. Plaza's Home Possible program guidelines have been updated to no longer allow cooperatives as an eligible property type.

Sierra Pacific has an Expanded Jumbo that allows first time homebuyers up to 1 million and an Expanded Jumbo Plus Non-QM program that will allow DTI p to 50%.

Provident Funding originates CONDOs...high rise, low rise, and detached site. (Condos in FL and NJ remain ineligible.)

Curious what appraisal fees and turn times looked like in 2016 in all 50 states? Mercury Network compiled a report to help lenders, AMCs, and appraisers with data that shows a range of appraisal fees by state, average turn times by state, relationships between fee and average turn times, and a look at the fees and turn times in top counties. 

The VA published Circular 26-17-14 clarifying VA's position on the proximity of comparable properties to the subject property in which it does not set a minimum distance. In suburban or rural communities, the appraiser should specify why the expanded area comps were used and how they compare/compete with the subject, whether extended distances are normal for that market, submit a description of the market, and indicate if any adjustments were made for locality or proximity.

Capital markets

"Steady as she goes" is the key term for bonds, and therefore rates, although we did have a little rally yesterday. Yesterday the 10-year's yield dropped below 2.20%, closing at that level, while mortgage-backed securities did their usual dance, fluctuating slightly based on coupon, security, and maturity.

This morning we've already had a spate of economic news - all jobs related. First up were the Challenger job cuts (up to nearly 52k), then ADP Employment for May (+253k, much stronger than expected), and then initial jobless claims (+13k to 248k, still close to 40 year lows). Coming up are secondary numbers gauging manufacturing from Markit and the Institute of Supply Management, along with Construction Spending for April. To start the day, we find rates higher versus last night, with the 10-year yielding 2.23% and agency MBS prices worse .125-.250.

Jobs and Announcements

"For this job, we're looking for someone responsible." "I'm your guy! On my last job, every time anything went wrong, they said I was responsible."

Congrats to National MI who has been added as an approved MI partner by the Nebraska Investment Finance Authority (NIFA). National MI can now provide mortgage insurance for HFA Preferred conventional loans originated in the NIFA program. For any questions on National MI, please contact National MI's Nebraska Account Manager, Brian Lampe at 515-250-6447.

In wholesale job news Ditech Wholesale is hiring talented experienced Account Executives in key markets across the country. "Today's Account Executive needs as many loan officer outlets as possible to grow their business.  Gone are the days of limited territory size and pigeon holing AE's into small markets.  To that end, expansion into non-delegated correspondent and small banks allows Ditech's AE's to create a large footprint into their geographic area, while not sharing with a crowded field.  We are currently looking for seasoned AE's in the Mid-Atlantic, Southeast, Rocky Mountains, Texas, and Pacific Northwest Regions, an offer a unique blend of wholesale values overlaid onto correspondent disciplines." (says Wells Constantine, National Sales Manager) Click here to review the job description and apply today or contact Owen Welch in HR with questions.

Synergy One Lending, a national retail lender offering Conventional, Government, Jumbo, Non-Prime and Non-QM programs, is seeking Regional Sales Managers that "have a proven track record of success and are currently working in the same position at a national retail lender for the following regions; Southeast, Northeast, Midwest, South, Southwest, and Northwest. We are currently licensed in 42 states and expanding, offer competitive benefits, and have significant value propositions in media and equity that our competitors can't offer. Regional Sales Manager candidates must demonstrate a successful history of building retail production for a National Lender. Synergy One Lending is looking for highly motivated individuals whom can accomplish regional sales objectives by recruiting, training, scheduling, coaching, counseling and planning. We are looking for someone who can achieve regional sales goals by preparing and completing action plans, resolving problems; identifying sales system improvements and implementing change." Qualified candidates can email their resume and cover letter to HR@S1Lending.com.

Rethink your mortgage business with Trelix. In today's evolving mortgage industry, the Trelix product suite represents an opportunity to help lenders mitigate risk and reduce costs through customized fulfillment solutions. The suite includes Processing, Underwriting, Loan Due Diligence, Quality Control and CastleLine's Certified Loan certification review. During the second half of 2017, Trelix will be launching Trelix Connect, an innovative technology platform to help improve mortgage lenders' competitive edge by providing greater transparency, improving communication mechanisms and connecting lenders to a variety of services and products. Trelix Connect will drive clients to better manage their regulatory obligations and help efficiently scale their businesses. Contact Vice President, Global Fulfillment Steve Hewins for questions or more information about Trelix.

Manufactured homes have come a long way, and these pre-built homes have literally been manufacturing a new revenue pipeline for brokers and originators. Like what we see in renovation lending, many are afraid to leverage these loans, and as a result, aren't growing their business pipeline as well as they could be. REMN Wholesale is hosting a new webinar on June 7th, sponsored by The National Real Estate Post, to help educate industry professionals on loans for manufactured housing. The webinar will provide an in-depth look into how these loans operate, advice on how to find borrowers looking to buy manufactured homes, and free marketing resources for targeting potential customers and referral sources. Interested attendees can sign up here for the free webinar. REMN Wholesale's commitment to customer service and same-day turn times, year-round, requires that the lender remain overstaffed at every level. REMN is looking to hire additional account executives across the nation dedicated to the same level of customer service for which REMN is known. Interested applicants should send their resumes to aerecruiting@remn.com.

Mortgage automation leader, Floify, has seen an overwhelming response to their dynamic online 1003 loan application since its announcement last year. The intuitive Floify 1003 allows LO's to fully customize their online loan application. Loan officers can customize the data fields (Skip the SSN? No problem), integrate prospect data with existing systems (like push to Encompass or start a loan file), and add optional automations to streamline the pre-qualification (AccountChek, Credit Plus coming soon). The fully completed 1003 is instantly uploaded to Encompass or converts to a Fannie Mae 3.2 data file for upload into your LOS). You can see more about the popular Floify 1003 and other must-have features here.