Lender Appraisal Requirement Changes; New Digital Mortgage Services
NAR wrote a white paper detailing the barriers to homeownership and many of the reasons are well-known. Of course, real estate agents wish there were no underwriting or appraisal criteria whatsoever. (The biggest constraints are tighter mortgage lending, student loan debt, affordability issues, and a lack of supply.) And we have QM and ATR rules, and NAR concludes that these rules are hurting mortgage availability when they were intended to ease the burden on lenders.
During the weekend of Dec. 9, Fannie Mae will implement Collateral Underwriter (CU) 4.2, which will add advanced functionality currently available only in classic CU to the new layout of the CU web application. This includes a new Advanced Search page, Market Trend page, and the ability to edit the subject and appraiser-provided comparable sales property characteristics. View the release notes for more details on the enhancements.
For loans purchased on or after October 17th, Wells Fargo Funding removed its appraisal and appraisal review overlays for Prior Approval Super Underwritten Conforming mortgage loans and will follow Freddie Mac requirements. Continue to follow Section 805.07: Freddie Mac Loan Product Advisor for delegated underwritten Super Conforming Mortgage Loans. Also noted in its Newsflash, there are two changes in the HMDA final rule that will specifically impact how you deliver and sell Loans to Wells Fargo Funding: New universal loan identifier (ULI) - required on delegated Loans only and Expanded borrower demographic information - required on all Loans.
PennyMac posted information regarding FNMA Property Inspection Waivers and FHMLC Appraisal Waivers.
In California as of October 17 the Canyon 2 Fire was 100% contained. For all loans except FHA, Flagstar Bank closings and fundings may now resume for properties located in specified counties/zip codes once a satisfactory reinspection has been obtained. FHA inspections are not permitted until FEMA issues an incident end date. Loans that have already been issued a Final Approval Clear to Close status will be placed in an Approved with Conditions status until a re-inspection is performed. Please note that appraisal re-inspections are not required to be completed by the original appraiser; however, a Flagstar Bank eligible appraiser must be utilized.
Weslend posted the following FEMA update: DR - 4337 Florida: Incident Close Date 10/18/17; DR - 4346 South Carolina: Incident Close Date 09/13/17; and EM - 3392 Louisiana: Incident Close Date 10/08/17. Re-inspection requirements are expected to remain in place for all properties with appraisal dates prior to the incident end date or for at least 120 days following the incident end date for loan transactions where an appraisal inspection is not otherwise required unless otherwise announced by Lenox/WesLend.
Accurate Group, a leading provider of real estate appraisal, title and compliance services, announced the launch of its new NotaryWorks electronic notary solution. NotaryWorks enables lenders to offer a full spectrum of real estate e-closing options to accelerate loan closings and better serve borrower needs. NotaryWorks provides a complete, in-home notary experience that offers multiple options including remote online notarization as well as mobile notaries for borrowers who prefer a more traditional approach. All notaries are certified and pre-screened by Accurate Group. NotaryWorks combines electronic documents, process flows, secure e-signature and e-notarization technology in an easy-to-use platform. The solution is compliant with the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-Sign Act). NotaryWorks can be combined with the Accurate eSign solution to deliver a complete e-closing experience.
Consolidated Analytics, an appraisal management company and full-service mortgage advisory firm, announced the acquisition of PCA Appraisal Management, Inc., which provides real estate appraisal services. PCA CEO Jim Reno will join Consolidated Analytics as vice president of business development and training, and his popular mortgage appraisal education seminars will be given a national platform at Consolidated Analytics.
Capital Markets
Everyone saw plenty of price improvements yesterday. The 10 year goes up until it doesn't - investors finally saw a good opportunity to buy and yields went back down. Remember, we are still a long way from March's 2.67% that has been the high this year (it was as low as 1.32% in July of 2016). Nothing much has changed in the bigger picture to merit higher yields as inflation remains below the Federal Reserve's target and the Trump administration has yet to usher in the fiscal stimulus it promised.
It is nearly impossible to claim that the U.S. economy is doing poorly enough to warrant lower rates. Data out Wednesday showed New Home Sales in September rose by 19%, the highest since 2007, as sales clearly accelerated after Hurricanes Harvey and Irma. The supply was unchanged, continuing the inventory shortage. Additionally, U.S. orders for business equipment increased more than forecast in September, pointing toward economic growth for the quarter.
Turning to today, the European Central Bank extended the program but cut the size of its monthly bond buying at its policy meeting, the biggest scheduled event for markets this week. We also had U.S. jobless claims (233k, darned low), retail and wholesale inventories, pending home sales, and a plethora of corporate earnings. We commence Thursday with the 10-year yielding 2.43% and agency MBS prices better a tad versus last night's close.
Opportunities, Products, Employment
Did you know that up to 50% of LOs don't use software that has been purchased at the enterprise-level, and that mortgage companies could be losing a whopping $90,000/year in lost revenue opportunities for every 10 loan officers who fail to implement it? A new white paper out titled, "Eight Ways to Improve User Adoption of CRM and Other Technologies" contains invaluable insights if you and your team are thinking of implementing a new CRM or if you're struggling with poor user adoption of an existing enterprise-wide software solution. Christy Soukhamneut, SVP of National Sales Performance for Certainty Home Loans, and Gibran Nicholas, CEO of CMPS Institute, share eight lessons they've learned from their recent CRM implementation experience where they achieved 70%+ user adoption rates as defined by users who are logging in to the system at least weekly. You can contact Gibran by emailing him directly.
Congrats to Phil Grossfield who has joined the team as the Western Regional Sales Manager of New Penn's dedicated Non-QM channel. With over 25 years of sales and leadership experience, Phil's focus is to build the Non-QM sales force. Phil has an economic degree from the University of Wisconsin-Madison and a law degree from the William Mitchell School of Law. He has extensive experience in the industry as a record-breaking salesperson for a top-ten national lender and has managed a national top-producing wholesale branch operation and sales division. New Penn Financial is a leading nationwide lender offering extremely attractive compensation packages, competitive rates and a broad portfolio of mortgage products. Founded in 2008, New Penn was recognized by Inc. Magazine as one of the fastest growing private companies and by Mortgage Executive Magazine as one of the 50 best companies to work for. Contact Phil to find out about sales opportunities in New Penn's dedicated Non-QM product channel.
Priming for its next wave of growth, Angel Oak Mortgage Solutions is continuing to add Wholesale Account Executives in markets across the country, specifically in San Francisco, San Antonio, Los Angeles and New Orleans. To continue to deliver an extraordinary customer experience while realizing record monthly volumes, it is also hiring underwriters and other operations positions in its Atlanta headquarters. As more companies realize the benefits of offering non-QM products, it only makes sense to work with the leader in this space. Visit JoinAngelOak.com or learn more about what it's like to work for Angel Oak by watching the Top Mortgage Employer's interview from the Mortgage News Network.
For MiMutual Mortgage retail managers, the status quo isn't enough. MiMutual Mortgage's focus on continuous improvement and best practices is like your GPS navigation system always looking for the most efficient route. When there's traffic ahead is there anyone to redirect your files for an on-time arrival at the closing table? In today's purchase market having an average time from app to CTC in 21 days and knowing 95% of past clients say they'll refer friends and family, is vital to growing your business. And that doesn't happen without an intense focus by the entire company on the most efficient path to closing loans. Agency-direct, the training you need, the support you deserve and the marketing you want. Retail Branch Managers producing $4mm/mo+ seeking the most efficient path to greater success should contact Daniel Jacobs, EVP of Retail Lending (1-888-994-6698), or just click here for instant information.
Lenders One has announced two new Altisource verification offerings for members: TRV® Services (4506-T tax return verification) and SSV (SSA-89 social security verification). Powered by NCS (National Credit-reporting System, Inc.) - an industry-leading consumer-reporting agency, these verification services, bundled with the Altisource Flood Certification service, may enable increased cost savings to your organization. A pilot member for this offering has already calculated significant potential savings. Members can contact their Solution Director to get started. Interested in joining Lenders One? Contact Michael Kuentz for more information.
In wholesale job news Ditech Wholesale is hiring talented experienced Account Executives in key markets across the country. "Today's AE needs as many loan officer outlets as possible to grow their business. Gone are the days of limited territory size and pigeon holing AEs into small markets. Expansion into non-delegated correspondent and small banks allows Ditech's Wholesale AEs to create a large footprint into their geographic area, while not sharing with a crowded field. We are currently looking for seasoned AE's and offer a unique blend of wholesale values overlaid onto correspondent disciplines," says Wells Constantine, National Sales Manager. "We are focusing on NC/SC, VA and Tampa, Orlando, Miami, FL for the Eastern Seaboard, led by Tony Petronio; CO, NV and Houston, TX for the Southwest, led by Zeenat Zonte; UT, MO, ID/WY/MT and Sacramento, CA for the Northwest, led by Michelle Thiebaud." Click here to review the job description and apply today or contact Cari Watkins in HR with questions.
"There are some very unique opportunities in the market for existing production teams with more than $5 million per month in production. Opportunities to have control over process and procedure, to help determine corporate pricing and to share in corporate profits. If you have an experienced production team, there has never been a better time to look at what is available to you in opportunities with growing companies who want to take market share from those who treat you like a number. I can introduce you to these opportunities confidentially. Contact Ron at 480-204-1812 with confidential inquiries or questions."
When leaving a job, some folks give a few hours' notice, some give a couple weeks. But an entire year? Mortgage Bankers Association (MBA) President and CEO, Dave Stevens, announced his plans to retire on September 30, 2018. Just try to keep him away from next year's national conference in Washington, DC three weeks later. Stevens will continue to lead MBA until that time. A MBA member search committee has been created to begin the nationwide search for a successor. Whose foot will fit in the glass slipper? And no, don't send me your resume.