The lender/investor/MA/vendor/training/conference updates
keep coming. As always, it is best to read the actual bulletin, but these
recent notes should give folks a flavor of the trends. Frankly, I just don’t
know how underwriters keep up with things!
First a quick correction to yesterday’s lender updates: I confused PennyMac
with PMAC on news regarding “all new DU Refi Plus loans over 125%”. This
product is not offered by PennyMac, but is offered by PMAC.
Bank’s Wholesale Group got the word out Friday, “Changes on Streamline
Refinances went into effect with Case Number Assignments issued on or after
Monday, June 11, 2012. Streamline Refinance loans that are refinancing FHA
loans endorsed on or prior to May 31, 2009 will have a reduction of the UFMIP
to .01% and the monthly MIP will be .55%.The endorsement date can be found in
the FHA Connection on the following screens: Case Query, Refinance
Authorization and Refinance Query. All other Streamline Refinance loans that
are refinancing loans endorsed after May 31, 2009 are subject to the new UFMIP
effective April 9, 2011 as well as the new annual MIP rates. U.S. Bank Home Mortgage Wholesale Division
will no longer accept any new registration or locks for FHA Streamline
Refinance loans that ARE NOT refinances
of existing USBHM FHA loans currently being serviced by U.S. Bank Effective
Friday, June 22, 2012. This applies to all CUSB, Table Fund and Purchase
On the other hand, Plaza Home Mortgage sent out, “In spite of
recent investor changes in the FHA streamline refinance program, Plaza is
continuing to accept FHA streamline’s under our current published guidelines.”
In recent MA and take-over news…
Community Bank Investors Bancorp will acquire Piraeus Bank S.A.’s
Marathon Bank for $135mm, or about 1.45x tangible book. First Virginia
Community Bank will buy 1st Commonwealth Bank of Virginia in an
all-stock transaction valued at about $3.7mm. First-Citizens Bank Trust has
sold its asset-based lending and factoring loan portfolio to Crestmark Bancorp for
an undisclosed sum. First Citizens will continue to offer these services to its
customers in partnership with Crestmark.
BNC Bancorp, parent company of Bank of North Carolina, has signed a
merger agreement with the Charlotte, NC-based First Trust Bank, which has $436
million in assets. The deal is valued at about $35 million and will add
three new branches to Bank of North Carolina in Charlotte along with $228
million in loans and $374 million in deposits. This transaction is Bank
of North Carolina’s latest in a series of strategic acquisitions, which have
expanded its reach across the Carolinas to Myrtle Beach, Asheville,
Greensville, Durham, Cary, and Chapel Hill, and was handled by Keefe, Bruyette
In another KBW deal, Chemical Bank, a subsidiary of Chemical Financial
Corporation, has agreed to purchase 21 branches from Independent Bank in
northeast Michigan and Battle Creek. The deal will comprise about $420
million in customer deposits and $40 million in loans, and Chemical Bank plans
to pay a deposit premium of 2.93% of deposits and acquire the loans at a 1.75%
Trustmark Corporation and BancTrust Financial Group, Inc. have signed a merger
of BancTrust’s 49 Alabama and Florida offices into Trustmark. The deal
will comprise $1.3 billion in loans, $1.8 billion in deposits, and $55.4
million in common stock. The transaction, another one by KBW, is expected
to close in late 2012. And Berkshire Hills Bancorp, Inc. and Beacon Federal
Bancorp, Inc. have signed a definitive merger agreement that Berkshire will
acquire Beacon for approximately $132 million. East Syracuse-based Beacon
comprises seven offices with deposits of $677 million, while Berkshire
currently has three offices in the region. Beacon’s Chelmsford, MA office
will serve as Berkshire’s first Eastern Massachusetts office.
Moving on to investor updates, GMAC has increased the charge on
Jumbo Fixed and ARM products for Cash Out and LTVs of over 75% from -0.500 to
-0.625. This took effect on June 8th.
Stearns Lending has published its updated Lock-In Policy, which went
into effect on June 4th. The policy outlines lock periods, lock changes,
the Float Down option, the Extension option, relocks, and confirmations and
provides an FAQ section. To read the policy in full, visit here.
For Portfolio DU Refi Plus and Portfolio DU Refi Plus High Balance loans,
Stearns has reduced the maximum LTV to 105%. All loans with over 105% LTV
that have an Approved status can continue as approved, and all locked pipeline
loans with over 105% LTV will be honored. Loans that are over 105% LTV
that have been registered, submitted, or received by underwriting are required
to have a Property Inspection Waiver. The requirements for CLTV and HCLTV
remain the same.
MSI is re-introducing its Conventional Jumbo product. As a
reminder, all loans must be submitted to and approved by the applicable AUS,
submitted to MSI for a full review of RESPA, and then submitted to a third
Pricing solution and product eligibility provider LoanSifter
received an Innovation Award from the Progress in Lending Association for the
LoanSifter AMRi real-time mortgage rate index. The index gets its results from
using the LoanSifter search engine, which mines the database for data from 25
major wholesale and correspondent lenders.
Mountain West Financial reminded brokers of a few summer
deadlines. In order for refinance transactions to fund in June, the full
submission package was required no later than June 14th so that initial
disclosures may be sent out. All refinance transactions should be submitted
for underwriting by 3:00PM on the14th, and all PTD conditions for refinancing
must be submitted no later than June 19th. The latter are required to be
signed off for underwriting by the afternoon of June 21st, which is necessary
for the documents to be drawn with an August 1st payment. For TILs that
must be re-disclosed due to a 1/8th variance in the APR, the borrower should
have consented to the electronic delivery of re-disclosure by email on the
19th. MWF will be taking document requests for August 1st payments on
regular refinance or purchase transactions until August 1st, while requests for
special programs should be made prior to June 27th. Refinancing
documents must be signed by June 22nd in order to fund by the 28th and then
record by the 29th; documents signed after June 23rd will not be reviewed by
MWF, resulting in the loan not closing in June. For loans whose documents
were drawn in June that don’t fund by July 6, 2012, there will be a full
MWF has updated its Annual and Up-Front Mortgage Insurance Premiums to
reflect changes to base loan amounts for FHA Jumbo loans.
In response to the Supreme Court’s ruling on RESPA Section 8(b), law firm
Ballard Spahr offers a webinar titled “The Fate of Mortgage Fee Mark-Ups
After Freeman vs. Quicken Loans” on June 18th. The role of the CFPB in
prohibiting or limiting fee mark-ups, the implications of the ruling, and the
extent of the power of state law will all be discussed. More information
and registry links can be found here.
The Colorado Mortgage Lenders Association is hosting its 39th
annual convention in Vail, CO on August 8th and 9th. Registration information
can be found at here,
while sponsors can register their interest at here.
With the July 23rd deadline fast approaching, Fannie Mae is providing
webinars on transitioning to the new ULDD. Register at
Along with its loss mitigation webinar series, the FHA’s National Servicing
Center is offering live courses in Oklahoma City, OK on August 15th and
16th. Designed for HUD-approved mortgagees, HUD-approved housing
counselors, and non-profit housing counselors, the event will cover
delinquencies, defaults, mortgage collection activities, and initiation of
foreclosure as outlined in the HUD handbook. Interested parties can
From August 13th-17th, the NeighborWorks America Training Institute will be
providing a variety of development courses for housing counselors, non-profits,
and community development professionals in Cincinnati, OH. Register here.
MGIC is hosting a number of online training events throughout
June. Appraisal training will take place on June 21st and MGIC MI basics
on the 12th and 22nd. A webinar titled Putting the Pieces Together:
Processing Mortgage Apps will take place on June 13th. Self-employed
borrower training for both the AGI method (June 26th) and SAM method (June
18th) is also available. The advanced AGI and SAM webinars will take
place on June 12th and 13th, respectively.
Everyone should know by now that FHA Streamline Refinance loans with case
numbers assigned on or after June 11th will be subject to the new mortgage
insurance premium structure. The Up-Front premium will be 0.01%,
regardless the base loan amount, while the Annual MIP will be 55 bps.
Lenders may request FHA case numbers for Streamlines with reduced MIPs from
June 11th and will be permitted to cancel existing case numbers provided that
they’re for Streamline refinance mortgages that have not yet closed and were
endorsed on or before May 31, 2009. Case number assignments are predicted
to take longer than normal due to a high volume of requests.
Previously Fannie Mae had allowed lenders a 90-day repurchase and make-whole
requirement, effective until June 30th. This extended repurchase
accommodation, in which lenders can complete a repurchase or submit any
documentation necessary to back up a formal appeal, will now be effective until
December 31, 2012. Fannie has also postponed the effective date for
implementing the new lender-placed property insurance requirements, which had
previously been set at June 1st. Communication on the new effective date
is coming soon.
New foreclosure prevention job aids are available on the Fannie website.
The Know Your Options Marketing Storefront includes free marketing materials like brochures, letters, flyers, and pocket
folders that can be customized and printed directly.
The Fannie Sellers Guide has been updated to include clarifications on flood
insurance, liability insurance on attached condos and PUDs, an update on the
Conventional PUD Questionnaire, FHA netting escrows, refi authorization, and DU
update on government loans.
The Freddie Mac Standard Modification interest rate will be lowered from 5% to
4.625% for new trial period plan evaluations conducted on July 1st and after,
and services are encouraged to begin using the new rate as soon as
possible. The fixed interest rate should be used when evaluating
borrowers to determine eligibility, the terms of a trial period plan payment,
and final modification.
Phew! That’s enough for a Saturday morning!
Quotes for Father’s Day (Part 2 of 2)
“Every mother generally hopes that her daughter will snag a better husband
than she managed to do…but she’s certain that her boy will never get as great
a wife as his father did.” Anonymous
“A king, realizing his incompetence, can either delegate or abdicate his
duties. A father can do neither. If only sons could see the paradox, they would
understand the dilemma.” Marlene Dietrich
“My father didn’t tell me how to live; he lived, and let me watch him do
it.” Clarence B. Kelland
“One father is worth more than a hundred schoolmasters.” 17th century
“Blessed indeed is the man who hears many gentle voices call him
father!” Lydia M. Child
“Sometimes the poorest man leaves his children the richest
inheritance.” Ruth E. Renkel
“You don’t have to deserve your mother’s love. You have to deserve your
father’s. He’s more particular.” Robert Frost