Freddie and Fannie Changes - Single Security Moving Forward; Upcoming Events

“It doesn’t matter if you are rich or poor, as long as you have money.” Banks are where the money is, and plenty of them are paying attention to Congress. Eliminate Dodd-Frank? No. Revise? Perhaps. The most significant effort to revise the Dodd-Frank Act has bipartisan support, and we have a co-sponsored Senate bill. The proposed legislation mostly addresses regulations on small and midsize banks – in the future community banks or credit unions with less than $10 billion in assets could offer mortgages outside the typical Qualified Mortgage rule so long as they don’t sell that mortgage but keep it in-house. By holding that mortgage on the books, it would be deemed a Qualified Mortgage.

Fannie, Freddie, Conventional Conforming Updates

There are too many for just one day – so this is Part 1. Part 2 slated for tomorrow!

Lenders shouldn’t forget that the FHFA released an update on the Single Security Initiative (SSI) and the Common Securitization Platform (CSP), saying the key objective of the update "is to emphasize the need for market participants to begin now to plan and prepare for SSI implementation." The current timeframe is for the SSI to be implemented in Q2 2019 with TBA trading potentially starting in Q1 2019. As result, "market participants need to complete preparations by year-end 2018," said the FHFA.

The High Stakes in the Looming Fannie and Freddie Overhaul. Congress is gearing up to tackle the politically thorny issue of housing finance reform in 2018. So far, the plan is shaping up as workable compromise between the competing interests of investors, mortgage lenders, taxpayers and homeowners.

The Federal Housing Finance Agency and Treasury Department announced they will allow Fannie Mae and Freddie Mac each to retain $3 billion in capital for 2018. The move required amendments to the dividend and liquidation preference provisions governing the enterprises’ sale of senior preferred stock to the Treasury. Fannie Mae and Freddie Mac have capital reserves again. As expected, the government-sponsored enterprises recently made their quarterly dividend payments to the Department of the Treasury.

Fannie Mae has announced during the weekend of January 20, Desktop Underwriter for government loans will be updated to support the VA 2018 county loan limit changes, as well as the new FHA 2018 loan limits.

Fannie Mae has updated its Selling Guide in  Announcement SEL-2017-10. For a summary of key updates in this Selling Guide Announcement, view the executive perspectives video presented by Jude Landis, Vice President, Credit Policy, and the executive overview from Carlos Perez, Chief Credit Officer for Single-Family.

Freddie Mac published a comprehensive, three-year Duty to Serve plan for working with the mortgage industry, housing groups and other stakeholders. The plan addresses some of the nation’s most persistent housing challenges, focusing on three historically underserved markets: Manufactured housing, Rural housing and Affordable housing preservation. Freddie Mac will focus on increasing liquidity and stability in these markets as well as developing new initiatives, ground-breaking research and consumer education. For more information, read Freddie’s Single-Family News Center article.

Capital Markets

Citi Correspondent Lending’s State geographic pricing adjusters will be changing for new best efforts rate locks and mandatory commitments established on/after Monday, January 15, 2018. These updates apply to various Conventional Conforming and Agency Jumbo 15- and 30-year term Fixed and ARM products.

Seems pretty quiet out there! After a mildly volatile trading day on Tuesday, the 10-year Treasury note finished yielding 2.54%, one basis point lower than Friday’s close. As equities rallied, bonds retreated, but they found support as the stock market backed off its intra-day highs amidst increased concerns of a government shutdown ahead of Friday’s deadline. The Empire State Manufacturing Survey’s general business conditions index – of secondary importance at most - declined to 17.7 in January, however this level still indications solid growth.  The report also indicated that price increases continued to accelerate with the priced paid index up seven points to 36.2 and the prices received index up 10 points to 21.7.

Moving on to today’s calendar, first up is MBS Mortgage Applications (+4.1%, purchases +3% and refis +4%), followed by Redbook same-store sales at 8:55AM, Industrial Production at 9:15AM, NAHB Housing Market Index at 10:00AM, and the Fed Beige Book at 2:00PM. For any LO who held off locking yesterday, rates versus Tuesday’s close are up a bit, with the risk-free 10-year T-Note yielding 2.56% and agency MBS prices worse .125.

Upcoming Events

nmpU's Purchase Bootcamp - a private 2-day Success Event, presented by Ron Vaimberg, nmpU's President and Head Coach - is coming back to San Diego on Thursday, February 8th through Friday, February 9th. Only 40 originators are permitted to attend. If you are committed to mastering the steps to build or elevate your production to a 100% referral based purchase business, then this is the premier event to attend. This is a high level complete step-by-step success program that takes originations to an entirely new level regardless of your current production. nmpU's Purchase Bootcamp brings together originators committed to earning six and seven figures in 2018, and is backed by the first ever industry $100,000 Income Increase Guarantee. Early registration discount expires Sunday, January 21st. For complete details visit www.PurchaseBootcamp.com.  Use Code “Chrisman” and save an additional $100.

Cybersecurity as a marketing tool to build trust and sales? Yes, it makes sense! Come join the California MBA Mortgage Technology and Marketing Committee (MTAM) on January 19 for a fascinating, fast-paced presentationcovering everything from how to gain a competitive edge with cybersecurity as a trust-builder to how to develop trust-building marketing messages to the public, your clients, and your staff (samples included!) Presented by Raymond Hutchins and Mitch Tanenbaum of CyberCecurity, and John Seroka of Seroka Brand Development.

American Mortgage Law Group’s next webinar on Tuesday, January 23rd will cover two areas of state regulation, one from California and one from Texas. If you lend in California, you must be aware of the California limitation on Per Diem Interest. If you have any questions regarding the webinar click here.

Reverse Mortgage Funding LLC is offering a free, in-person “Reverse Mortgage Jump Start” accelerated learning course — one in Miami on Wednesday, January 31 , and another in Orlando on Thursday, February 1 . Each one-day session will be from 10:00 a.m. to 2:00 p.m., with lunch included. Find out how you can easily add this missing piece to your product mix, with a team of industry-leading professionals on your side. If you’re originating mortgage refinancing, home purchase loans, and/or lines of credit and not offering reverse mortgages, you’re missing out on a huge market opportunity — homeowners and homebuyers age 62+. This is a great way to learn the ropes and how you can get started. Admission is free, but seating is limited so reserve your place today!

Join MMLA Southeast Chapter on February 8th’ for its 2018 Kick-Off Event. Lunch and mingle with your MMLA SEChapter colleagues and hear why this will be an exciting year for all. Guest speaker will be Jim Wickham, CMB, the 2018 MMLA State Board President.

Products, Employment, and Promotions

If you are an independent mortgage company or retail production team closing $2M to $50M per month and are looking for an opportunity with a nationwide company focused on growth and branch support, contact Bank of England Mortgage. “Since opening our doors in 1898 in England, Arkansas, our family-owned and FDIC insured bank provides big bank benefits with a community bank feel. We have survived the volatility of the mortgage industry for 119 years using a combination of stability, our flexible and entrepreneurial approach in helping you run your business, and focus on the success of your team. We offer an extensive range of loan products, nationwide lending, the advantage of modern technology and a distinct marketing approach to ensure your success. Tired of changing companies and looking for your forever career home? Contact your regional Bank of England Mortgage representative: West - Randolph Winston, (615) 812-5885, Midwest - Jim Lind, (913) 972-0822, Southeast - Roger Phillips, (205) 910-9339, or Northeast - Chris Copley, (717) 440-3346.

“As a leading national servicer, Carrington Mortgage Services, LLC, can provide the expertise and capacity needed to sub-service government loans with a robust compliance and risk management structure. As the 10th largest GNMA servicer, 4th largest USDA servicer, and a top Non-Performing Loan servicer, Carrington is uniquely positioned to sub-service or specialty service your agency, government, non-agency or legacy PLS deals. Carrington has been a direct master sub-servicer for GNMA since 2013 and had successfully completed over 250 servicing transfers. We provide effective and efficient sub-servicing management to maximize value for investors. Our high touch platform can lower costs, minimize risk and enable better efficiencies, all while keeping families in their homes. Your portfolio is important, and Carrington can provide both the custom attention it requires and the service your customers deserve. Carrington tops the list of sub-servicers the experts choose. Consider Carrington today and learn more by contacting Tom Huddleston or Nolan Turner.”

“Vendor Surf, the only vendor search engine for our industry, launched last month with a huge splash. With over 3,000 search filters and 82 different vendor categories across the end-to-end mortgage and credit union ecosystems, it makes finding your next vendor partner quick and easy. Firms with multiple affiliates, brands or stand-alone products can list and manage them all from a single account, at one affordable price. Vendor Surf’s slogan is, ‘If it’s happening in the mortgage or credit union space, you’ll find it on Vendor Surf.’ You can now plan your industry event travel from one place, as Vendor Surf consolidates the vast number of industry events, webinars, education and training opportunities. Click here to search for your next vendor partner. Searching is free, as is sharing your events, webinars and educational opportunities. Visit www.VendorSurf.com or contact Scott Roller or Craig Leabig for more information.

Valuation Partners, a leading national Appraisal Management Company, is looking to add a Vice President of Sales to manage the Southeast Region. “Valuation Partners ranks in the Top 10 of privately held AMC’s with a goal to be NUMBER 1. As Vice President- Regional Manager, the successful candidate will be responsible for managing and growing sales in the Southeast USA. We are seeking an individual based in Florida or Georgia with relationships throughout the Southeast territory.” Please visit its website at www.valuationpartners.com for more information. For confidential inquiries or resumes, please contact Keith Goatley.

“We at City National Bank believe that establishing and cultivating complex financial relationships will always require genuine high-touch service which produces results that exceed our discerning clients’ expectations.  Financial expertise, trust and authenticity are the basic qualities we hold in the highest regard and consistently apply to the client experience.  If you believe you qualify for the City National brand of mortgage banking, we look forward to hearing from you. With the sales team now under the direction of Josh Copeland (formerly of AIG Investments and Bank of America), we are searching for both Private Mortgage Bankers and Private Mortgage Banker Leads in New York City, Orange County/San Diego, the Bay Area and the greater Los Angeles area. Both roles call for entrepreneurial mortgage bankers who specialize in sourcing and cultivating banking relationships with high-net-worth clients, while providing City National’s extraordinary client service.” To learn more, visit CNBCareers or contact Bridget Purviance, Talent Acquisition, at 213-673-9155.

OpenClose, an industry-leading multi-channel LOS and mortgage Fintech provider, has bolstered its development, integration, and support teams with the addition of seven new hires. The new team members will drive continued innovation of the company’s open-to-close digital lending platform, develop new solutions, enhance existing products, provide excellence in customer support, and meet the increasing marketplace demand for its enterprise-level software products. OpenClose is seeking a VP of Business Development to join its growing sales and marketing team. The ideal candidate desires a cutting-edge fintech environment and has experience in mortgage technology and lending for banks, credit unions, and mid to large size mortgage bankers. Knowledge of LOS platforms and vendor management is a plus. OpenClose provides a unique, boutique-style, very hands-on approach to LOS implementations, training, and support. The company is headquartered in West Palm Beach, Florida. Visit its website for more information www.openclose.com.

And at Embrace Home Loans Kurt Noyce will lead Embrace’s expanded Financial Institution Services Division after serving as President for the last eighteen years. “During that time, he has been instrumental in helping to lead the national lender to become nearly a 1,000-employee company producing more than $3 billion annually in mortgage originations.” Dennis Hardiman will assume the role of President of Embrace and will also hold the title of CEO. Al Dussinger, Embrace’s CTO for 22 years, has been appointed to Chief Operating Officer.