Under the "fun with numbers" category, several readers wrote in yesterday regarding the CFPB's semi-annual numbers: "The report noted that during the same six month period CFPB supervisory actions resulted in financial institutions providing more than $114 million in redress to over 700,000 consumers." By everyone's calculations that works out to about $163 per consumer. Speaking of which, the CFPB has posted an index to some of the various questions regarding the TILA/RESPA Integrated Disclosure (TRID) rule. Check it out if you want answers to things like, "Are creditors required to provide revised Loan Estimates on the same business day that a consumer or loan officer requests a rate lock?" "Where on the Loan Estimate form is the creditor supposed to provide the language described in 1026.19(e)(3)(iv)(F) for construction loans where settlement may be delayed?" Let's hope lenders can agree on policies, and give consistent guidance to LOs and brokers.
Here's some big bank news: BB&T Corp said it would buy National Penn Bancshares Inc. in a cash and stock deal for about $1.8 billion to expand in the U.S. Mid-Atlantic region. The deal consideration would consist of 70 percent BB&T shares and 30 percent in cash. National Penn shareholders can opt to receive 0.3206 of a BB&T share or $13 in cash for each National Penn share.
Did someone say they wanted to go to a conference or receive some training on the FHA Handbook?
In addition to death and taxes, one of the few sure things you can bet on is the changing regulations affecting the lending industry. On September 14, the changes to the FHA Single Family Housing Policy Handbook guidelines will take effect. Are you ready? In addition to their leadership in TRID education, REMN Wholesale is taking a proactive approach in helping to educate the industry on how the new FHA guidelines may impact the borrower's ability to secure mortgage financing. If that matters to you, which it should, sign up for its webinar taking place this Thursday, August 20 at 3PM EDT.
FHA is hosting a Live Webinar: The FHA Single Family Housing Policy Handbook In-Depth" Session. Click the link to register for August 20th session as well as attend. And Dial-in at (866) 233-3841, Access Code 366181. Click the link to register for August 25th session as well as attend. And Dial-in at (800) 260-0712, Access Code 366184.
Indecomm offers a free webinar: Introduction to The NEW 4000.1 FHA Handbook, Wednesday, September 2nd from 11 am to 12:30 pm Central. Click on the link or request an agenda for customized company training from Linda Bomar.
On September 15th, CoAMP is hosting understanding credit scores and what affects them webinar. The speaker, Sean Nealon, from Continental Credit, travels the west coast teaching FICO Scoring classes to Mortgage Professionals, Realtors, CPA's and Attorney's.
Are your company's LO arrangements compliant? October Research is conducting an informative webinar on September 1st, hosted by Dodd Frank update to review this topic. Compliant compensation webinar registration is available as live attendance, or by ordering the recording.
Speaking of compliance, does the National Association of Realtors discuss RESPA violations? Of course it does. Realtors and builders are often a LOs primary source of business, and yesterday we learned that homebuilder sentiment rose from 60 to 61 in July, according to the NAHB. In fact the NAHB Housing Market Index is at its highest level since November 2005.
The rent versus buy decision is becoming easier. While home prices continue to rise, rents are rising faster as vacancy rates fall. In expensive places like LA, people are spending half their income on rent. Something to point out to first time buyers who are on the fence: Buy a home and get a 30 year fixed rate mortgage, and your principal and interest payment won't increase, ever - it beats the heck out the annual negotiation with the landlord.
Americans are buying more homes and at higher prices, yet new data shows that mortgage debt is little changed. The Federal Reserve Bank of New York noted outstanding U.S. mortgage debt slipped 0.7 percent in the April-June quarter to $8.12 trillion. That is up slightly from a year ago and about the same level as three years ago when the housing market bottomed. The second quarter's decline occurred even as Americans took out more new mortgages, either to refinance old loans or to purchase homes. New mortgages totaled $466 billion in the second quarter, the most in almost two years. Those trends suggest Americans are paying down mortgage debt at roughly the same pace as new loans are made, evidence that homeowners remain wary of housing-related debt. Total mortgage debt peaked at $9.29 trillion in the third quarter of 2008.
Zillow recently analyzed how home values are impacted depending on when homes are built. Zillow's analysis includes nine cites, Atlanta, Austin, Chicago, Denver, Los Angeles, New York, Philadelphia, Phoenix and Seattle. Research indicates that Atlanta is the only city where very new homes and very old homes have the highest premiums compares to homes not new enough to be contemporary or old enough to be considered classic. Whereas Austin, Denver, New York and Seattle all show a similar pattern to one another; homes built in the first half of the 20th century are valued more than homes built in the second half since developers are not as likely to build single-family residences in high-cost neighborhoods.
There is precedent of the great 2015 market going back a ways. NAR told us that, "Home-Price Growth Slightly Accelerates in Fourth Quarter of 2014." The median existing single-family home price increased in 86 percent of measured markets, with 150 out of 1751 metropolitan statistical areas showing gains based on closings in the fourth quarter compared with the fourth quarter of 2013. Twenty-four areas (14 percent) recorded lower median prices from a year earlier. NAR chief economist said improved sales activity compared to a year ago and tightening supply contributed to faster price appreciation in the final quarter of 2014. "Home prices in metro areas throughout the country continue to show solid price growth, up 25 percent over the past three years on average," he said. "This is good news for current homeowners but remains a challenge for buyers who are seeing home prices continue to outpace their wages. Low interest rates helped preserve affordability last quarter, but it'll take stronger income gains and more housing supply to help meet the pent-up demand for buying."
And around that time Zelman and Associates came out with their January Mortgage Originator Survey revealing that credit and demand aligned for a strong start to the New Year. Purchase volumes accelerated in January and refinance applications increased 55% YoY. Survey respondents experienced a 12% YoY increase in purchase applications versus a 6% increase in December. The credit quality index declined in January to 66.2, the lowest level since mid-2012 and 29% of lenders reported incremental looser underwriting standards. The entry-level mortgage credit availability index rose to 61.1 from 59.2 in December as the loose credit environment has benefited most borrowers due to policy changes to encourage first-time home buying such as the cut in MI premiums and the new 3% down payment program. Boomerang buyers are also on the comeback, as lenders ranked the quality of these buyers at 51.9, indicating average credit profiles. This cohort has focused on repairing their balance sheets and is now able to reenter the housing market. Contact Ivy for more information on their January Mortgage Originator Survey.
Another sign showing that 2015 would be promising appeared when the MBA published its first quarter national delinquency survey, indicating that mortgage delinquencies and foreclosures have fallen. The rate for mortgage loans on one-to-four unit residential properties declined to a rate of 5.54 percent of all loans outstanding, which was the lowest level since the second quarter of 2007. The delinquency rate is down 14 basis points from the fourth quarter of 2014 and 57 basis points from a year earlier. The delinquency rate includes loans that are at a minimum, one payment past due but doesn't include loans in the foreclosure process. The share of loans in the process of foreclosure at the end of the first quarter was 2.22 percent, a drop of 5 basis points from the previous quarter. This was the lowest foreclosure inventory rate since the fourth quarter of 2007. The serious delinquency rate also dropped to 4.24 percent, a decline of 28 basis points from the first quarter.
Is the jumbo market really on fire, despite all the complaints of brokers and independent mortgage bankers who tell me the market stinks? Well, it sure doesn't stink if you're a bank...
These rates...up a little, down a little. Whenever the wind comes out of the world's economic sails, they come down. That is what happened yesterday after the Empire State manufacturing gauge showed extreme softness in New York State's economy. Later, the NAHB Housing Market Index for August came out in line with estimates, but the Treasury market had already seen all it need to see and yields held lower for the rest of the session. We wrapped up Monday with the 10-year at 2.15%.
Today, for giggles, we had the duo of July Housing Starts and Building Permits, 1.03 million (+.2%) and 1.1 million (-16%) respectively. Starts were decent, but the permits number - a sign of future activity - was poor. After these we're at 2.17% on the 10-year with agency MBS prices worse a couple ticks.
Jobs and Announcements
In job news, at Orion Lending "our approach and employee centric philosophy is firmly centered around our broker partners and talented staff whose input, collaboration and pure desire to be a part of something special has contributed to our collective success! We are extremely excited to begin a search for a select few Account Executives that want the support and a team customized around them Day 1. Orion Lending prides itself on a transparent, energetic, professional approach to the wholesale lending space and we look forward to sharing this opportunity with the right Account Executives. This is especially exciting for those that may be taking a back seat to other top performers at your current organization, or those that want a blank canvas with virtually no account overlap! For Account Executives that wish to pursue a career in sales management we look forward to hearing from you as well. Along with a solid rate and product offering our mission is to make this your last career move!! Confidential inquiries can be sent to Careers@OrionLending. com.
Yes, broker business is far from being extinct, and Bluepoint Mortgage is expanding its wholesale footprint in the West. Bluepoint is looking for prospective Wholesale Account Executives who are seeking an opportunity to join a dynamic, customer-focused organization. Management is seeking AEs in the following areas: Bakersfield/Fresno, Sacramento, Inland Empire, Southern California, Central California, Arizona, Nevada, Oregon, New Mexico, Colorado and Utah. "Bluepoint is a privately held, non-depository mortgage lender headquartered in Costa Mesa, CA. We offer an aggressive compensation plan for the right candidates. If you are interested in joining our progressive and growth oriented family please contact Phil Garcia (714.824.8085)."
REMN's commitment to same-day turn times and an overall excellent broker experience requires it to have ample staff at every level. They're currently looking to recruit experienced account executives nationwide and underwrites in both its Iselin, NJ and Woodland Hills, CA offices. Know anyone? Have them send their resumes to recruiting@remn. com.
And a quick repeat to a listing from yesterday to avoid any possible name confusion. Illinois' Inland Home Mortgage is searching for experienced commissioned loan officers in several counties in Illinois as well as CRA loan officers. Inland Home Mortgage is a division of Inland Bank and Trust and does business as a correspondent lender. Contact President Frank Binetti with confidential inquiries (630.463.7820).
Tom Neary, president & CEO of Homeowners Mortgage, announced the addition of two key executives to its management team: Chad Farmer will lead the correspondent services sales team, and Ron Simpson will join the team as SVP of Secondary Marketing.
And lenders are starting up. And Melissa Cohn launched a new Manhattan-based mortgage banking firm titled MC Home Loans. MC Home Loans will operate as a division of David Brecher's Brooklyn-based mortgage bank FM Home Loans, which will fund the loans MC Home Loans plans to originate. (Ms. Cohn founded Manhattan Mortgage about 30 years ago and sold it to Guaranteed Rate in 2012, and recently settled a wrongful termination lawsuit with GuardHill Financial & Alan Rosenbaum.)