It is not an issue of "if", but "when". The ABA said it suffered a cyberattack of its online shopping cart and at least 6,400 user records had been stolen and posted online (including email addresses and passwords used to make purchases or register for events). And Scottrade Financial said it suffered a cyberattack that may have exposed personal information of 4.6mm clients. Things to think about regarding your credit card information...

New programs?

"CalHFA opens all Loan Programs to Mortgage Brokers.  Previously, the Broker Community only had access to the CalHFA CHDAP product - which was recently discontinued.  However, CalHFA's Program Bulletin #2015-14 announced that CalHFA opens all Loan Programs to Mortgage Brokers.  Provident Bank Mortgage is the EXCLUSIVE wholesale lender for CalHFA.  Effective October 15, 2015, CalHFA will offer all its first mortgage and subordinate loan programs, including the brand new MyHome Assistance Program to all mortgage brokers via Provident Bank Mortgage.  Any broker who previously leveraged the CHDAP product or is looking for a competitive down payment assistant program for low-moderate income borrowers should immediately sign up with Provident Bank Mortgage.  For further information, please contact David Seaton, VP of Wholesale & Correspondent Lending (925-621-2645)."

(Yes, the reason CHDAP was eliminated was due to the $350M in funds being used up, and the "new" down payment assistance program is meant to replace it.)

Valuation Partners newly developed Market $en$e report examines in detail the reasons why an appraisal receives a high-risk score and offers solutions if the appraisal can be improved to get a better score.  Every Market $en$e report includes a complete analysis and explanation of the CU score by a licensed, certified appraiser, including a discussion of any unique property factors that made the appraisal challenging. Click the link to learn more about Market $en$e and Valuation Partners.

Guaranteed Rate, an Optimal Blue partner, founded Digital Mortgage, an online platform that will save customers time and work. The system is intended to automate a decision provided by Optimal Blue through its Product Eligibility and Pricing Engine. Guaranteed Rate provides private and secure digital document transfer allowing for customers to complete the New Digital Mortgage from application to approval within 25 minutes instead of scanning, faxing and emailing private information. Guaranteed Rate has reported that since introducing the first Digital Mortgage in June, more than 4,400 people have locked more than $1.4 billion in loans using the new technology.

A down payment can be a serious obstacle to buying a home for many borrowers. Land Home Financial Services, Inc. offers a 3% down conventional mortgage option for your borrowers. Click the above link to find out more.

Bayview Loan Servicing launched its TPO WebCenter, a new online Wholesale portal that enables clients to originate, submit, and track loans efficiently. The ease of importing files supports Encompass LOS, Desktop Underwriter, and 3.2, as well as providing an easy to access, intuitive pipeline view depicting clients' loans and statuses. Log into Bayview's website to check out its WebCenter.

House leaders just announced the Homebuyers Assistance Act (H.R. 3192) will be brought to the House floor THIS WEEK for a vote. H.R. 3192 would help ensure smooth implementation of the new TILA-RESPA Integrated Disclosures (TRID) rules by providing a temporary legal safe harbor for lenders who make a good-faith effort to comply with the regulations through February 1, 2016. (In the Senate, S. 1711 would provide a similar legal safe harbor through January 1, 2016.) "The MBA is urging MAA members to take action TODAY to contact your elected officials in support of these two bills. A temporary legal safe harbor for lenders will ensure the new requirements are implemented in an orderly manner and that consumers are not confused or, worse yet, impaired in their ability to purchase a home or refinance a loan. Please click HERE to go to the Mortgage Action Alliance (MAA) homepage and click on the 'Take Action' button to get started. If you don't have, or have forgotten your username and password, click on 'forgot password' to retrieve it. If you are not a MAA member, you will need to join MAA to take action."

Hey, how about that Wells-Fannie risk sharing deal from last week?! It was the talk of the capital markets folks I spoke with in Virginia and South Carolina last week. As we all know both Freddie and Fannie are tasked with spreading & reducing their risk, and one way to do that is through "risk sharing" in the secondary markets. Fannie recently did one with Chase, or vice versa, and now Wells has stepped up to the plate and did a private deal shedding the bottom 4% of its risk. The loans were predominately underwritten to Fannie's guidelines and the prices met internal expectations. We'll see more and more of these going forward - catch the wave!

And Matt Scully with Bloomberg wrote that, "Premium Point Investments is rolling out a new program for hybrid adjustable-rate mortgages, according to a company spokesman. 'We may not securitize the loans,' Chris Gillick, firm spokesman, wrote in an email. A whole loan sale may be preferred, Gillick said, and 'This is not a shift in strategy but growing out the product menu with our correspondent customers. The jumbo business is very much ongoing'."

FINRA recently posted a "soft publish" proposal of its margin rule changes. FINRA issued proposed changes to Rule 4210 (the Margin Rule) in early 2014. The MBA submitted comments concerning the single-family and multifamily market impacts and groups have also held several meetings with FINRA to discuss the mortgage market and the proposed rule's likely impact. The version above is now being sent to the SEC (the SEC oversees FINRA) to review and publish for notice and comment. Some notable provisions include a mortgage banker exemption to the 2% initial margin requirement, consistent with MBA's recommendations. Broker-dealers would also no longer be required to take a capital charge for exposures below the de minimis transfer amount, and would not be required to liquidate un-margined exposures until the 5th day after the exposure is incurred.

The market always seems to be wondering about the state of the private label securitization market. In technology developments Rachel Bell sent along a note saying, "I am currently consulting for a company that specializes in Private Capital lending and is standardizing the manufacturing process to ensure asset quality (source data, pre-funding compliance certs, consistent u/w tied to the pricing model for UDAAP risk mitigation etc...).  The addition of an eVault (collaborative environment) where all parties have access to data/docs according to authority (PII data security) is essential for servicing hand offs (servicing systems cannot handle data/doc requirements with audit trails) and continued access (life of loan) for the borrower, servicer, investor, securities trustee) etc... The MISMO 3.3 data spec for the LE and CD requires "off book" accounting (embedded line items in the 3.3 spec plus embedded calculations).  If these data enabled docs are not maintained properly valuable meta data could be compromised (lost audit data). An eVault is the only way to maintain in 'native' format; especially if eSigned."

Late last week Bloomberg's Dakin Campbell wrote, "JPMorgan Chase & Co. is set to pay almost a third of a $1.86 billion settlement to resolve accusations that a dozen big banks conspired to limit competition in the credit-default swaps market, according to people briefed on terms of the deal. JPMorgan is paying $595 million, with the lender's portion of the accord largely based on the plaintiffs' measure of market share...The settlement also enacts reforms making it easier for electronic-trading platforms to enter the CDS market, according to a statement Thursday from the attorneys for the plaintiffs, which include the Los Angeles County Employees Retirement Association. Morgan Stanley, Barclays Plc and Goldman Sachs Group Inc. are paying about $230 million, $175 million and $164 million, respectively, the people said.

"The accord averts a trial following years of litigation by hedge funds, pension funds, university endowments, small banks and other investors, who sued as a group. They alleged that global banks -- along with Markit Group Ltd., a market-information provider in which the banks owned stakes -- conspired to control the information about the multitrillion-dollar credit-default swap market in violation of U.S. antitrust laws. The case is In Re Credit Default Swaps Antitrust Litigation, 13-md-02476, U.S. District Court, Southern District of New York (Manhattan)."

The Federal Home Loan Bank of San Francisco has announced that the Cost of Funds Index (COFI) for August is 0.639 percent; the index was 0.643 percent in July. The COFI is calculated based upon the actual interest expenses reported for a certain month by the Arizona, California and Nevada savings institutions members. For the August report, 11 eligible institutions reported COFI data.

Up some, down some... that continued Monday as fixed-income securities sold off as investors sought to "reposition themselves for a rally in risky assets." The ISM Non-Manufacturing Index dropped more than expected for last month: just another indication that the Fed will maintain its zero interest-rate policy for longer than previously expected.

We don't have much more to chew on today. And it sure seems quiet overseas - what happened to the worries about Russia, Ukraine, Greece, China...? We've had the August Trade Balance (-$48.3 billion, higher than expected), and later is a $24 billion 3-year note auction. For anyone guessing at what the rate sheets will show we had a 2.06% closing Monday on the 10-year and this morning we're at 2.04% and agency MBS prices are a tad better.

Jobs and Announcements

One of the most dynamic, growth-oriented lenders in the country is looking for wholesale and correspondent account executives across the country. "Offering a highly competitive compensation plan, this company is primed to become one of the most prominent lenders in the nation. We are looking for individual AEs and are open to speaking with teams. Lending in more than 45 states we offer expanded guidelines, FNMA/FHLMC seller-servicer, FHA, and VA direct. Very competitive pricing and a great work environment will give you the opportunity for success you know you deserve. Are you at the top of your class?  Do you have what it takes to join this exclusive team? If so, please send your resume to me." All inquiries will be treated in absolute confidence and with utmost discretion, and please specify opportunity. 

BOK Financial Correspondent Mortgage Lending is searching for a National Operations Leader. The candidate will have responsibility for the leadership and continued growth and development of the Correspondent Lending channel's operational platform and will have oversight of all Correspondent Lending operational functions which include Loan Registration, File Intake, Loan Review and Funding. The Manager is the key stakeholder responsible for ensuring that BOK purchases high quality loans saleable in the secondary market, while also ensuring a high level of client service and satisfaction are attained.  The role will be based in Tulsa, OK.  Confidential resumes may be sent to SVP of Correspondent Lending Rob Ross.

Mortgage insurance company MGIC is seeking a candidate to join its Metro Boston sales team. "The candidate we are seeking to hire is a high energy, results driven and focused person with a successful sales history and exceptional communication and relationship building skills. Structure, organization and the ability to multitask will be necessary for this person to continue to deliver the quality service MGIC customers have come to expect. This person will need to effectively and efficiently manage existing customer relationships while expanding and growing relationships throughout the territory to meet volume and market expansion goal. The ideal candidate will have 4 plus years in the mortgage industry. Interested candidates can visit MGICJobs for additional details or may feel free to reach out directly to the hiring manager Neal McGrath.

Mixing technology and real estate investment, RealtyShares is an online marketplace transforming, through technology, the way investors invest in high-quality private real estate. Originating $100 million to-date, San Francisco's RealtyShares provides accredited investors access to a range of real estate investment options across the capital structure in both commercial and residential real estate. Realty Shares is looking to hire a seasoned Chief Credit Officer who will have responsibility for creating and managing the Firm's credit risk analysis, guidelines and framework. "If you have leadership and skills to be a senior member of a rapidly growing Firm, and have the passion and desire to take a greenfield approach to credit risk management, we want to hear about it." Please send an email to Deborah Markus.