State-Level Changes; Upcoming Events and Training

In compensation news, Merrill Lynch's wealth management unit will discontinue signing bonuses for experienced brokers beginning June 1, instead focusing recruitment efforts on attracting and training young professionals. The move is calculated to attract young talent in an aging industry. 

Company & legal news

Analysts continue to react to Impac Holding's quarterly numbers. Trevor Cranston with JMP Securities LLC penned, "It was a down quarter as expected, but non-agency loan growth was encouraging; we reiterate our Market Outperform rating. Impac reported adjusted operating income per share of $0.12, slightly below our $0.20 estimate and down from $0.60 in the year- ago quarter and $1.37 in 4Q16. We had expected first quarter earnings to be down meaningfully due to the typical seasonality of mortgage originations as well as the spike in interest rates that occurred in 4Q16 and we view the reported $0.12 number as in line with our $0.20 estimate given the relatively large magnitude of variation between quarterly earnings that Impac has reported over the last few quarters, ranging from a high of $3.29 in 3Q16 to a low of $0.12 this quarter. While quarterly origination volume was lower than we had expected at $1.6B, down 49% sequentially and 33% year-over-year due to a significant decline in refinancing volume, this was largely offset by a much better than expected gain on sale margin, which came in at 2.36%, compared to our 1.90% estimate as the company's product mix shifted more toward higher-margin non-agency and government loans..."

Anyone can sue anyone else at any time, but the latest filing is the City of Brotherly Love suing Wells Fargo accusing Wells of intentionally steering minority borrowers into higher-cost home loans than it offered white borrowers. The lawsuit accused Wells Fargo of violating the federal Fair Housing Act, and seeks a variety of damages.

State-level rules and regulations

Wouldn't it be nice if all the states had all the same rules and regulations, or that they all adhered to the Federal-level rules and regulations? No such luck, and such differences merely add to the cost of doing business for lenders and thus for borrowers.

Washington has adopted an act which adds a new chapter to Title 1 RCW, which may be known and cited as the Uniform Electronic Legal Material Act ("the Act"). Effective January 1, 2018, it provides requirements for preservation, security, authentication, and public access of "all legal material in an electronic record that is designated as official under section 4" of the Act. For further details, read the full text of Senate Bill 5039.

The General Assembly of Arkansas has recently amended Arkansas Code section 26-60-110, which relates to the recordation of deeds for purposes of the real property transfer tax. These updates will become effective on August 18, 2017. These provisions outline the circumstances under which a county recorder in Arkansas may record a deed after real property is transferred.

Arkansas also has recently enacted House Bill 1801 to amend the Fair Mortgage Lending Act (FMLA). This provision is effective on August 18, 2017. The FMLA sets out the requirements for becoming licensed as a mortgage banker, mortgage broker, or mortgage servicer in Arkansas as well as the surety bond requirements for becoming licensed in Arkansas. The bill describes several duties of licensees in the state. One such example is that a licensee must make reasonable efforts with lenders with whom a mortgage broker regularly does business to secure a loan that is reasonably advantageous to the borrower.

Kansas amended multiple provisions under its Mortgage Business Act, effective July 1, 2017. Topics amended include the application for a mortgage license Sec. 6. 2016, Supp. 9-509. Specifically, rules pertaining to license expiration, nonrefundable fees, and failure to complete renewal application as well as engaging in the business of selling, issuing or delivering its payment instrument.

Effective as of May 8, 2017, Utah amended several provisions of the Notaries Public Reform Act. The updated law discusses the process and requirements for becoming a notary public in Utah. To be eligible for a notarial commission, an applicant must be at least eighteen years old, and must be a legal resident of the state for at least 30 days prior to his or her application.  He or she must be able read, write, and understand English, and be a United States citizen or have permanent resident status under the Immigration and Nationality Act.

Recently, North Dakota enacted several provisions of the Uniform Fiduciary Access to Digital Assets (UFDAA). The provisions enacted permit individuals serving in certain fiduciary roles to access digital information of a user; specifically fiduciaries acting under a will or power of attorney, a decedent's personal representative, a guardianship, a trustee and a custodian. Notably, the provisions exclude employers from the breadth of coverage.

Tennessee has amended provisions of its Residential Lending, Brokerage and Servicing Act affecting the licensing of certain non-depository financial institutions. The amendments set deadlines for applicants for a certificate of registration, licensees and license holders (collectively referred to hereinafter as "applicants") to renew their respective licenses to operate. These Lending, Brokerage and Servicing provisions become effective at different times ranging from July 1, 2017 to April 1, 2019.

Tennessee also amended several residential mortgage related provisions. Effective as of April 17, 2017, Tennessee amended the application process for home equity conversion mortgages. In sum, they repealed the requirement of having to provide a copy of the most recent federal tax return for each of the applicant's executive officers. The other previous requirements were left intact.  Effective immediately, Tennessee amended the rate of interest charged by certain industrial loan and thrift registrants by increasing the rate at which a registrant may charge. The increases occur in a step ladder manner. Also, effective immediately, an amendment was made to the provisions of the sales of execution and the judicial or trust sales to extend the times between which these foreclosure sales are permitted.

Iowa enacted provisions regarding its Uniform Fiduciary Access to Digital Assets, an electronic record in which an individual has a right or interest. (It does not include an underlying asset or liability and does not include health information or individually identifiable health information). The act clarifies the law regarding access to digital assets in the case of death or incapacitation and grants fiduciaries access to a user's online accounts, correspondences, and other computer files, if specified in his or her will, trust, or similar agreement. These provisions are effective on July 1, 2017.

Effective July 1, 2018, Indiana has amended its provisions regarding notaries, adding Section 12.IC 33-42-0.5 to its Code. Also, added, Section 18.IC 33-49-9, which first clarifies that the governor may appoint notaries public if doing so promotes the public interest. Click this link to view the full text of Indiana's amended provisions.

Capital markets

We saw a little steepening of the yield curve to start the week yesterday with the 2-yr note steady but 10-year and 30-year rates inching up minutely. Fortunately, "MBS spreads ended tighter to treasuries" so there was minimal impact to borrower rate sheets. MBS volume was somewhat light with Tradeweb telling us that volume was just over 70% of the 30-day moving average.

The economy is driven by housing and jobs, and this morning we've had April housing starts and building permits (-2.6% & -2.5%, respectively - both weak). Coming up is the Industrial Production & Capacity Utilization duo. We find the 10-year yielding 2.35% and agency MBS prices worse a shade versus Monday's close.

Events & webinars

Live Training with Unify CRM - In addition to live support, Unify offers live training via webinar and on site trainings. Spearheading the training department is Earl McLain who has trained loan officers and corporations in sales, communication and company culture for over 20 years and personally conducts many of the trainings. "We are committed to our clients' success. The tools we build into Unify make our loan officers money! That's the bottom line!" Scott Lidberg, President of Unify. Real time integration with Loan Originating Software systems, marketing automation, complete marketing library, data mining tools and a commercial printing facility on site are just a few of the reasons national lenders are choosing Unify to meet all of their needs. To learn more, Schedule a DEMO today or contact Scott Benson (651.288.7510).

Get your complimentary recording of "From Loan Officer to Rainmaker: Breakthrough Strategies to Take Production to Record Heights." In this webinar from XINNIX, VP of Mortgage Financial Services John Hudson outlines the tactics and strategies he uses that took a 3-person team to 90 applications in 5 weeks! Learn from John and XINNIX CEO Casey Cunningham as they teach you the defining factors that will empower your sales team to reach their fullest potential and the vital role you play in their success. Get ready to see immediate success in bigger and better ways than your team ever thought possible! Click here to receive your free recording today!

For appraisers, register for the webinar, "Insider's Guide to Successful Valuations" on May 18th at 11AM PDT.

Join the MBA Compliance Essentials program on June 14th to learn about the increasing scrutiny by regulators and application of statutory and regulatory Vendor Management requirements regarding Mortgage Finance. Learn how to approach risk management - regulatory, compliance, and reputational - with the adoption of and adherence to strong, clear policies and procedures. Please note, this webinar is complimentary for purchasers of the Compliance Essentials Vendor Management Resource Guide. Please contact Lisa Volb for your complimentary access.

Jobs and Announcements

Carrington's Spring Streamline Special with reduced LLPAs on FICO < 600 on government Streamlines (FHA and VA IRRRLS) ends this month, available for all loans locked through May 31st. "Be a hero to your clients and Carrington can help by closing loans that others can't, both government and conventional. Your tough loans lender with reduced or removed overlays to help your clients. Visit www.CarringtonWholesale.com for a current rate sheet or to become a broker call 866.453.2400." 

"As he considered the value proposition for loan officers at Guaranteed Rate, it was too much for Tim Sorenson, the company's new SVP/Regional Manager based in Southern California, to pass up. It came down to two simple questions: 'As a loan originator, do you want to spend countless hours laboring through a long and complex process? Or would you rather rely on technology and a team dedicated to processing loans?' Guaranteed Rate, the nation's 8th largest retail mortgage lender, created the world's first digital mortgage and a POD proprietary business model to achieve a process that is fast, easy and transparent for all involved. After all, time is money, especially in the mortgage industry. Guaranteed Rate is currently looking to boost its presence in Southern California - if you're a loan officer who is driven to be the best of the best, contact Tim directly (949.359.7114) or visit www.JoinGRnow.com for more information."

Orange Coast Title Company, an industry leader since 1974 and one of the largest independently owned title insurance companies, is growing again and has an excellent opportunity for a National Sales Executive. As our National Sales Executive, you will acquire, build, and maintain strong, long-lasting client relationships with the top mortgage lenders in the country. The ideal candidate will possess a broad knowledge of the loan origination and servicing space, have sales experience with a proven track record of exceeding goals, and be self-motivated to succeed in a fast-paced, competitive environment. Interested candidates should send their resumes to Tim Curtis, National Sales Manager.

"How efficient are your closing and post-closing processes? As the housing economy transitions to a purchase market, working efficiently with settlement agents should become an increasingly urgent priority for lenders. In a purchase market, lenders have less control over settlement selection, and therefore, less control over the loan manufacturing and closing and post-closing processes. Research shows that as purchase volume share increases, it takes more time to close fewer loans. If you missed David Lykken's live broadcast from MBA Secondary last week earlier this month, listen to the podcast recording to hear award-winning industry thought leader Nancy Alley explore how automating settlement agent collaboration throughout the origination process can deliver almost immediate ROI to lenders in the form of better TRID compliance, more efficient UCD delivery, reduced post-closing costs and a superior consumer experience. Simplifile's technology connects lenders with a network of more than 17,000 settlement service providers and more than 1,600 county recording offices for the industry's most efficient collaboration and post-closing experience."

Word had leaked out well before the announcement, making the actual press release a little anti-climactic that it was evident the company wanted a change in leadership, but Brian Hale is no longer the CEO of Stearns Lending, LLC. Congrats to David Schneider who is the new CEO and a member of its Board of Managers effective... yesterday. Stunning how fast things can happen with a private equity firm. (Blackstone's Stearns' growth has been amazing under Brian, and averaged a little over $2 billion a month last year through its channels.)