Who says that everything on the web is spellchecked? One glance at this website will tell you otherwise - those mortgage brokers had better fix it. Mortgage people may need to start our own club, complete with special handshakes, something which says 'hey, I know the difference between a 1003 and a 1008,' maybe even work on a secret motto...it appears to be a growing trend with big investment firms.

The Community Reinvestment Act is certainly full of policies and procedures, and you might have a new set of them to contemplate. Using the Federal Register, the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), and Federal Deposit Insurance Corporation (FDIC) published proposed revisions to their "Interagency Questions and Answers Regarding Community Reinvestment," which provides guidance on the above federal agencies' (collectively the Agencies) regulations implementing the CRA. The Agencies also requested public comment on the proposed revisions. Titled "79 FR 53838", the proposed revisions seek to revise three questions and answers that address (i) alternative systems for delivering retail banking services and (ii) additional examples of innovative or flexible lending practices, revise three questions and answers addressing community development-related issues, including economic development, community development loans, and activities that are considered to revitalize or stabilize an underserved nonmetropolitan middle-income geography, and add four new questions and answers, two of which address community development services, and two of which provide general guidance on responsiveness and innovativeness. Lenders interested in commenting on the proposed revisions must submit comments to one or more of the Agencies in the manner set out on page 53838 of the September 10, 2014 Federal Register, and they must be received on or before November 10, 2014. Read about it straight from the horse's mouth.

I recently received a note from a mortgage vet asking if I had seen Ocwen's restatement of 1Q14 and 2013 earnings. Yes, I had, and note that this also pertained to Home Loan Servicing Solutions, too. For those who don't know, on August 12, 2014, Ocwen filed a restatement of earnings with the SEC, in part it read, "fter consultation with Deloitte & Touche LLP, the Company's independent registered public accounting firm, determined that the Company's financial statements for the fiscal year ended December 31, 2013 and the quarter ended March 31, 2014 can no longer be relied upon as being in compliance with generally accepted accounting principles ("GAAP"). Accordingly, the Company will restate such financial statements. Similarly, related press releases, Deloitte & Touche's reports on the financial statements, including the effectiveness of internal control over financial reporting, and shareholder communications describing the Company's financial statements for these periods should no longer be relied upon. The decisions of the Board of Directors and Audit Committee to restate these financial statements follows a recommendation by management."

Ocwen's restatement relates to the sale of mortgage servicing rights to Home Loan Solutions and the subsequent financing transaction, which are comprised of MSRs pledged in connection with certain rights to receive servicing fees, excluding ancillary income. The amount of the liability on the books of Ocwen was $634.4 million, or approximately 10% of total liabilities. An asset of similar size was booked by Home Loan and valued using the same accounting methodology, and a restatement was submitted to the SEC on the same day. Both parties have indicated in their public filings that the restatements came about because of a change in accounting treatment for the MSR transaction. Kroll Bond Rating Agency writes, "We believe that the restatement came about because of a change in the advice provided to OCN by Deloitte & Touche, not because of any actions or omissions by either OCN or HLSS. Based on our review of the public information from both OCN and HLSS, we see two significant changes in the treatment of the MSR transaction: (1) First, both OCN and HLSS are restating their financial statements for Q1 2014 and 2013, specifically changing the valuation of the MSR transaction in these periods. Both OCN and HLSS indicate that they do not expect any change in reported income as a result of these restatements, and (2) both OCN and HLSS are changing the methodology for valuing this transaction, apparently upon the advice of Deloitte & Touche. The change will require both OCN and HLSS to adjust the valuation of the MSR position based upon "the best available estimate of fair value, in accordance with GAAP"

Let's play catch up with some lender, investor, and agency updates to see any trends out there. As always it is best to read the actual bulletin for complete details.

Flagstar announced its annual recertification for all Non-Delegated Brokers and Correspondents began on Monday, August 18.

Given the impact lender repurchase anxiety is having in the market, Freddie just upgraded a tool designed for managers who want a better way to track loan quality trends. Quality Control Information Manager is the name of the tool and the new function is called Management Reporting.  Management Reporting expands a manager's ability to analyze QC trends, track underwriting deficiencies and spot and fix possible loan manufacturing process problems.  It also makes it easier for customers to exchange important information with Freddie on loan remedies and loan quality trend analyses. Managers can customize date ranges depending on their particular needs and interest in zeroing in on QC trends during particular periods.

AFR Wholesale is now offering Fannie Mae HomeStyle® Renovation Mortgage Program.

AmeriHome has expanded program pricing options and various guideline updates. Programs include limited overlays and the following portfolio product highlights: 89.9% LTV with no MI to $1.5M, Interest Only option at 80% to $2M for OO properties, $500K Cash out options available, and 2nd Homes purchase or cash out.

First Community Mortgage Wholesale posted NMLS-Company Identifiers regarding NMLS requirements in Delaware and Missouri.

Citimortgage posted tips to avoid most common errors specifically on bank or brokerage statements.

The Data and Analytics division of Black Knight Financial Services has formed a new Advisory Services Group to provide clients with custom solutions for specific issues clients need to resolve. The group's primary offerings will include advisory consulting services, research and strategic insights, and configurable data and analytics. The full article outlines Black Knight's goals and services.

PennyMac is aligning with Fannie Mae's guidelines significant derogatory credit events. Changes include waiting periods for mortgage debt discharged through bankruptcy, waiting periods following a preforeclosure sale (short sale) or deed-in-lieu of foreclosure, and Charge-offs of mortgage accounts.

EverBank retail offers up a 365-day rate lock with a float down option. I am sure it is priced accordingly... (The bulletin I saw came from Dave.Taormina@EverBank. com so he would have more information.)

For VA applications and VA loans in process, U.S. Bank Home Mortgage is removing the VA Guaranty requirement of 30% on VA loan amounts of $650,001 to $1,000,000. The standard 25% Guaranty consisting of Eligibility and/or down payment will be required on all VA loans. In addition, new FHA applications and FHA loans in process, is removing the additional reserve requirement on FHA loans when a borrower is vacating the primary residence and converting it to an investment property. The current requirement of 6 months PITIA reserves for both properties is being reduced to follow the current FHA requirement of 3 months PITIA reserves for both properties.

US Mortgage Insurers, a trade association composed of multiple private mortgage insurance companies, submitted its response letter regarding the Federal Housing Finance Agency (FHFA) request for input (RFI) regarding the guarantee fees (g-fees) that Freddie Mac and Fannie Mae charge to lenders.

Turning to the markets (zzzzz), mortgage-backed securities made some technical moves yesterday, but nothing so dramatic as to impact rate sheets. Much of the focus has shifted from this week, with very little news or overseas drama, to next week and the Fed meeting. Any Fed levels of Treasury and agency MBS purchases now is expected to drop further and the actual announcement comes out next Wednesday. But not so fast...we had Import & Export Prices and Retail Sales this morning. Retail Sales came in stronger than expected at +.6% (although only up .3% ex-auto) and Import Prices were -.9%/Export Prices were -.5%. For numbers, we had a 2.53% close on the 10-yr T-note Thursday and this morning we're at 2.58% and agency MBS prices are worse .250-.375.

Jobs and Announcements

On the jobs & recruiting side, "if you are reading this job posting, you know every mortgage company in the US is hiring loan officers. What you may not know is that Network Recruiters has more options for loan officers than any other company in the industry.  Now is the time to look at all your options and to make your next move, the right move. Most loan officers have never worked with a recruiter. Our job is very similar to yours: find the best mortgage platform for our clients. LOs have multiple lenders and investors they shop to find the best loan for their clients.  We represent many of the top mortgage banks in the industry, to provide more options for our loan officer clients. Network Recruiters is a mortgage only recruiting firm. We provide loan officers with market intel, real time information that saves you time, protects your confidentiality and that will ultimately help you understand what makes each company unique. Unlike employment boards and industry websites, at Network Recruiters you work directly with one of our professional recruiters. Our process starts with a confidential consultation, which helps us uncover your goals and needs.  Then we schedule multiple interviews, conduct post interview debriefings and help negotiate the terms of your new position. Contact Steve Samuelson with confidential inquiries.

And congrats to Michael Sheffield. Allied Mortgage Group, a leading wholesale mortgage banker on the east coast, has announced his addition to the wholesale division and the increase in AE hiring up and down the East Coast. "I joined Allied Mortgage Group because of their deep industry experience, solid reputation and commitment to wholesale lending. Our goal is to build relationships one at a time and provide the best service available. Allied Mortgage Group has been serving wholesale clients for more than 20 years and I am excited to be part of this team." Allied Mortgage Group is growing and is currently seeking experienced Wholesale Account Executives in NJ, CT, MA, NC, SC, GA & FL. Send confidential inquires to Michael Sheffield. Allied Mortgage Group has been serving mortgage brokers and financial institutions for over 20 years and is licensed in 28 states. For more information on wholesale lending visit GoAllied.

And I received this note for compliance folks. "Hey Rob, We just received approval from the American Bankers Association for our compliance policy writing boot camp to count towards 20.75 clock hours of CRCM (Certified Residential Compliance Manager) continuing education. I know, it sounds really exciting! The boot camp is a collaborative event where 10 compliance officers work together for 3 1/2 days polishing every compliance policy the CFPB cares about. The CFPB has made it clear that generic template policies are not the best way to create and maintain a compliant company. You need to write policies that actually apply to your company and make sense for the reader. That's what we do for 3 1/2 days. We still have space in our next event in Maui from November 4-7. We have reserved ocean view rooms and spend our days with our laptops open in front of the beach where we have reserved the entire patio of Japengo restaurant at the Hyatt Regency Maui Resort and Spa. If you are going to write policies all day you might as well be in a gorgeous setting! Attendees can contact Ken Perry for pricing and additional details.