A Small Business Administration analysis found that about 90 percent of the country’s damage costs from natural disasters happen in ZIP codes with less than 20 percent of the country’s population. If you’re in the mood to see what that looks like on a map — or want advice of where not to move — the New York Times has done yeoman’s work in compiling more than a decade of disaster data.

Flood and Disaster News

Let me be blunt – I’m jaded when it comes to Congress and the Administration doing something permanent when it comes to the flood program. It seems like every year or two the issue is punted. The National Flood Insurance Program is scheduled to expire July 31st. While I am sure Congress cares, is it going to do anything about this? Despite the industry’s best efforts, I’d say the odds of Congress, and the President, doing anything permanent about this (other than kicking the can down the road again) are nil.

But the industry can try, and the MBA, NAR, state organizations, and plenty of other special interest groups are asking members to contact their representatives and have Congress extend the program and avoid a lapse of coverage. Find your representatives (House of Representatives and US Senate) and ask them to do something!

Fannie Mae continues to support servicers with borrowers impacted by recent and future disasters, such as hurricanes and wildfires. Fannie Mae published Lender Letter LL-2018-04: Disaster Policy Reminders and Updates, reminding servicers it will reimburse for inspections required to confirm repairs on properties with an insured loss event for both current and delinquent mortgage loans. For properties inspected after the date of this Lender Letter, we will increase the maximum reimbursement limit of insured loss repair inspections from $30 to $60. It will reimburse servicers up to its existing allowable reimbursement limits for the costs to inspect properties impacted by a disaster for both current and delinquent mortgage loans when necessary to determine the extent and nature of the damage. The Fannie Mae Extend Modification for Disaster Relief (Extend Mod) and hazard loss draft proceeds disbursement policies found in Lender Letter-2017-09 remain in effect until further notice.Visit the Assistance in Disasters page for additional information and resources, including previous disaster-related Lender Letters, FAQs, and more

Freddie Mac is reminding Servicers to follow the requirements in Chapter 8404 of the Single-Family Seller/Servicer Guide (Guide) when servicing mortgages affected by eligible disasters. Also, servicers should remember that the following temporary servicing requirements for mortgages impacted by eligible disasters announced in Guide Bulletins 2017-21 and 2017-25 will remain in effect: Property inspection reimbursement, Freddie Mac Extend Modification for Disaster Relief, Changes to requirements for distribution of insurance loss settlements. Review its Industry Letter for complete details.

The Federal Emergency Management Agency (FEMA) issued Hawaii Kilauea Volcanic Eruption and Earthquake (DR-4366) covering the entire island of Hawaii. For Conventional Conforming, Non-Conforming, and Guaranteed Rural Housing (GRH) Loans on properties located in Hawaii county as defined in FEMA DR-4366, Wells Fargo Funding is allowing Sellers to use alternative methods (lava flow maps, other mapping technology, etc.) to determine that no damage to the property has occurred.  This applies to FEMA declaration DR-4366 and does not extend to any other FEMA declarations issued for the Hawaiian Islands. Sellers must still comply with Wells Fargo Funding’s representations and warranties, as well as investor requirements. There is no change to the exclusion that Wells Fargo Funding will not purchase loans on properties located in Lava Zones 1 or 2. Follow FHA and VA requirements for FHA and VA Loans on properties located in Hawaii county, as defined in FEMA DR-4366.

MBA and the National Association of Hispanic Real Estate Professionals (NAHREP) are pleased to present a Spanish version of Disaster Recovery: A Resource for Homeowners, a consumer-facing informational guide. The guide outlines homeowner disaster preparedness and steps to recovery including who to communicate with about your mortgage, how to navigate the insurance process, and what forms of aid and disaster loans are generally available. (Stand by for Mandarin, French…)

Practically every investor's disaster policies and procedures are driven off whether FEMA has declared a particular area a...disaster. And the best link is www.FEMA.com. Floods, fires, volcanoes, or earthquakes, FEMA tracks them. And most lenders & investors have disasters policies that are triggered by FEMA’s declaring a disaster in an area.

For example, counties in Hawaii have been declared by FEMA as Major Disaster Areas for the Incident Period Date of May 03, 2018 and Major Disaster Declaration Date of May 11, 2018. FEMAannounced federal disaster aid with Individual Assistance for 13 additional Indiana counties in the areas affected by Indiana Floods, DR-4363. Additional Counties in Hawaii, Honolulu county and Kauai county, have been declared by FEMA as Major Disaster Areas.

Based on forecasts from the National Oceanic and Atmospheric Administration, CoreLogic has estimated that over seven million homes are at risk of storm surge during the upcoming hurricane season. This is the same forecast number as last year, when NOAA predicted a “near- or above-normal” hurricane season.

Pacific Union Financial is monitoring the impact of severe winter storms and flooding in Massachusetts, severe storms and flooding in Maryland, the impact of wildfires in Oklahoma, and the impact of volcanic eruptions and earthquakes in Hawaii. Lending partners with questions about Pacific Union and natural disasters should submit all questions to servicingcorrsupport@loanpacific.com. A response will be provided within 24 hours. (Only lenders may contact this email address. Do not share this email address with clients.)

PUF is monitoring the impact of severe storms, flooding, landslides, and mudslides in West Virginia. Confirmation that the subject property has not been affected is required and includes borrower written certification of the condition of the property prior to clear to close by Pacific Union. FEMA has included West Virginia in its disaster declarations. Pacific Union requires certifications from Correspondents for properties in the affected county for purchase to occur.

Fifth Third Correspondent posted: the following areas have been declared a federal Disaster Area: severe storming and flooding for the Indiana counties of Carroll, Clark, Dearborn, Elkhart, Floyd, Fulton, Harrison, Jasper, Jefferson, Kosciusko, LaPorte, Lake, Marshall, Ohio, Porter, Pulaski, Spencer, St. Joseph, Starke, Switzerland, Vanderburgh and White. Tornado and severe storm in North Carolina’s Guilford and Rockingham Counties. Correspondent Lenders must adhere to Fifth Third’s Disaster Policy located in Chapter 7, Section C of the Correspondent Seller Guide Underwriting Guide and the disaster policy overlay in the Overlay Chart.

Sun West Mortgage posted an update regarding FEMA’s declaration of disaster for additional counties in Indiana.

Capital Markets

As I mentioned yesterday, rates, up a little, down a little – not much moving them. Lenders are out there working on succeeding in their business models rather than reacting to rates moving. The 10-year closed -3bps to 2.85% as U.S. Treasuries ended Thursday with gains across the curve after three days of consecutive losses. Markets were roiled as President Trump said "I'm not thrilled" about the tightening path of monetary policy in a CNBC interview that will air today. On a more positive note, the low level of initial claims reported yesterday will feed expectations for another month of strong nonfarm payrolls growth.

Today sees no major economic releases of note, and we start with rates little changed from Thursday’s close: 2.85% on the 10-year and agency MBS prices up or down a few ticks based on coupon, maturity, and type.

Lender Products

“Fintech + Your Borrowers = More Leads, More Loans with Zip POS. Originators today know fintech drives competitiveness and relevancy among consumers. By leveraging Zip® as your mobile point-of-sale, you increase prospects, efficiencies, and production. It is the only digital origination tool you can launch in minutes without a cumbersome delay or contract terms. After all, fintech shouldn’t slow you down. We power your pipeline with an expedited pre-qual, automatic verification of assets, digital doc exchange management and deliver an experience that your borrowers will love. And like you, fearless LO, we like to be first. That’s why Zip customers are ahead of the game with access to the new 2019 URLA.  Be a hero to your borrowers and gain an edge your competition can’t touch. Get a Zip demo today or join our next webinar.”

Employment and Promotions

Better Mortgage Corporation, #NMLS 330511, is seeking experienced mortgage underwriters, processors and closers in New York City and San Francisco. “We are a fast-growing, tech-driven lender looking to disrupt the mortgage industry. We’ve funded over $1B in home loans since our launch in 2016, and we’re just getting started. Come work at an amazing company with great people (4.5/5 on Glassdoor), career opportunities, and highly competitive salaries and benefits! If you’re interested, please apply directly through our careers page or submit a resume to recruiting@better.com.” Better is an Equal Opportunity Employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin or disability.

PrimeLending opened a new branch in Mesa, Arizona, a popular hot-spot for first-time homebuyers looking for an affordable Valley of the Sun neighborhood to settle into. Like the temperatures in the Phoenix-area, signs in the market are pointed up — home values are rebounding to 2006-level highs, there’s an increase in the number of active builders and continued solid job growth. Branch Manager Scott Mendez and the entire Mesa team are perfectly positioned to meet the growing demand of millennial homebuyers looking for financing options to fit their needs. Whether it’s a purchase, new construction or renovation purchase, the new Mesa branch has answered the call with more than 400 loan products, a user-friendly digital experience, streamlined loan processing, and reliable, on-time closings. When you have the products, the people, the process and the personal service, success is simple at PrimeLending. If you’re ready to dominate your local market and scorch the competition, make the move to PrimeLending. Call Sherri White (469.737.5743) to get started.

Center Street Lending is excited to announce that Joe Koroncey has joined its Sales Team as a Relationship Manager. Joe comes to Center Street Lending from New York Community Bank where he was responsible for wholesales sales in San Diego county. With over 16 years of experience in the financial industry, Joe has held account executive positions at Ethos Lending, Provident Bank and New Penn Financial. Joe earned his degree in business and marketing from Arizona State University. Center Street Lending has built a reputation as a premier private money, portfolio lender, providing business-purpose loans through wholesale and retail channels for investments in: fix and flip, fix and rent, buy and rent; buy, tear down and build; new construction, and bridge loans. Contact Joe for more information.

Caliber Home Loans, Inc. is proud to welcome back Rick Elmendorf as a Team Sales Manager and Caliber Military & VA Lending Red Team Lead in Fair Oaks, Virginia. Rick, a nationally ranked Loan Officer in the industry, is one of over 20 retail producers who have returned to Caliber in 2018! Caliber’s leadership and its suite of Portfolio Lending products are some of what he describes as the lender’s “massive competitive advantages.” Loan Consultants interested in joining Rick and the national network of producers can contact Jeremy DeRosa.