Ginnie Mae Issuance in April; FHA Wholesaler with Limited Overlays ; Account Exec Job Opening; Investor Bulletins


The north Atlantic hurricane season begins
today and lasts through Nov. 30. Per the U.S. Census Bureau nearly 37 million
people in the US live in areas most threatened by Atlantic hurricanes: the
coastal portion of states stretching from North Carolina to Texas.
(Approximately 12%) of the nation’s population live in these areas.) This
compares to 14 million who lived in that hurricane path in 1960, a 163%

Can anyone out there lend
Ginnie Mae a hand in the IT department? Ginnie may want to put a few new quotes
on its issuer page, and not lead off with a glowing recommendation from
Countrywide: GinnieIssuerPage.
Regarding Fannie Freddie’s distant cousin, Ginnie Mae guaranteed more
than $26.4 billion in mortgage-backed securities in April. That compares to
about $24 billion in March and $26 in February. Remember that unlike FF, Ginnie
doesn’t buy mortgages
. Ginnie Mae, which raises capital from investors in
the global credit markets, guarantees the PI payments to investors of
MBS’s while the FHA or VA usually insure the underlying loans. And Ginnie’s
numbers, nearly $1.5 billion per day, include single-family pools, HECM MBS’s,
and multi-family.

A good portion of Pacific Union Financial’s focus is on FHA or VA loans, and it
is expanding its wholesale footprint. Pacific Union is looking for new AE’s
with an existing book of brokers in 7 Western states (AZ, CA, ID, NV, OR, WA,
TX). It “believes the market is entering a 5 year purchase cycle” and
offers to its brokers FHA, conforming, high balance, and jumbo products. 
PUF is “unique in that it doesn’t ‘overlay’ the programs extensively and
takes full advantage of the Ginnie Mae product offering, allowing purchases to borrowers
with a 560 mid score.  AEs can expect between 20 and 30 basis points
depending on production.” If you are interested, or know someone out
looking, contact Joe Stretch at

Someone who probably doesn’t care about jobs is Minnesota’s Troy David Chaika.
A jury in federal court in St. Paul has convicted him of conspiring with others
to bilk buyers and mortgage lenders out of more than $43 million. And
once again it is easy to see how the public, and Congress, continues to view
the real estate mortgage business in the press: MinnesotaFraud.

Other personnel news of interest seems to be
focused on Pennymac. The company, known for both buying older distressed
loans and also for opening up a new conduit for jumbo loans, is rumored to have
hired Doug Jones. Mr. Jones is a long-time Countrywide-Bank of America mortgage
executive. But this is a rumor only…I am usually the last to hear these

Business card printers everywhere are
thrilled… Wells Fargo told its correspondent clients that Wells Fargo Funding is now a
division of Wells Fargo Bank. Effective last week, Wells Fargo recently
executed assignments for each Loan Purchase Agreement from their former entity
(Wells Fargo Funding, Inc.) to their new entity (Wells Fargo Bank, N.A.), and
will require that contracts be re-executed under the new entity name, Wells
Fargo Bank, N.A. starting today. In addition, Wells has observed condominium interior hazard
insurance policies with inadequate replacement coverage. “As a result, we
are clarifying that walls-in or HO-6 replacement coverage must be sufficient to
repair the interior of the condominium unit, including any additions, improvements
and betterments, to its original condition in the event of a loss…when the
HOA Master Policy does not provide sufficient coverage of the interiors of the
project units, an HO-6 (or its equivalent) policy for the individual unit is
required.” “The Seller Represents, Warrants and Covenants the
following to Wells Fargo as to each Loan offered for sale under the Program
Documents: Pursuant to the terms of each Loan, hazard insurance policies
meeting Wells Fargo’s and Agency’s minimum requirements insure all buildings or
other improvements upon the Mortgaged Property…”

Wells, like other major lenders, continues to spread the word that sellers had
better prepare for the changes contained in the Uniform Mortgage Data Program
(UMDP) and its three components: Uniform Appraisal Dataset (UAD), Uniform
Collateral Data Portal (UCDPSM), and Uniform Loan Delivery Dataset. (Fannie Mae
recently published their May UMDP Yardstick to help lenders take the necessary
steps for successful implementation of the UMDP initiatives.)

Chase recently issued a “Lending Suspension” for the ZIP codes
affected by the Mississippi River flooding in Louisiana. The investor also told
correspondents that starting last week it is allowing the assignment of odd lot
AOT commitments in $1,000 increments above the minimum commitment amount. Over
in the best efforts side, starting yesterday “Chase Correspondent Lending
is revising the Verbal Verification of Employment (VVOE) policy for all
Non-Agency loans and any Agency transaction submitted through ZiPPY. This
change does not impact VVOE requirements for DU or FHA/VA transactions.”
And it is implementing “new derogatory credit policies for FHA, VA, and
Conventional transactions. These policies will be Chase overlays to derogatory
credit requirements detailed in FHA, VA, and Conventional guidelines.”

Bank of America’s correspondent group issued a disaster declaration and
update for Missouri, as are other investors, but also retired several programs
yesterday including Conforming Energy Efficient Mortgage (EEM) / Loan
Prospector® A-minus Mortgage, DU Expanded Approval (EA) 1 Fixed 15, DU EA1 5/1
ARM, DU EA1 7/1 ARM, DU EA1 10/1 ARM, MyCommunityMortgage 5/1 ARM,
MyCommunityMortgage 7/1 ARM, MyCommunityMortgage 10/1 ARM, and USDA Rural Housing
Direct. (Clients should have been well aware of these cuts prior to yesterday.)

GMAC reminded its clients that the temporary high-cost loan limits are
set to expire Sept 30, and that this will impact its suite of high balance
conventional, FHA, and VA products. GMAC also announced the addition of a 7/1
Hybrid ARM to the FHA and VA standard and High Balance product offerings, along
with the removal of numerous conforming loan underwriting guideline overlays.
Lastly, due to Section 1100F of the Dodd-Frank Act, on 7/21 it will require
that creditors disclose additional information on FCRA adverse action notices
when the creditor uses a credit score in taking adverse action

SunTrust let clients know about an update on investment property
transactions permitted outside of the borrowers primary state of residence,
announced a first-time homebuyer tax credit language removed from FHA product
description, and released an announcement on agency affordable HELOC

US Bank Home Mortgage and MGIC have teamed up to offer Webinar training
on evaluating self-employed borrowers income. There will be two sessions on
June 14, Webinars: 9:30-11:30AM or 1:30-3:30PM PST. RSVP:, or contact: Necia Manchas at
(206) 363-4009,

Flagstar Bank now has a Jumbo Fixed Program open to brokers. 
30-year fixed, loan amounts from $417,001 up to $2,000,000, manually
underwritten, maximum 40% DTI, all assets listed on the 1003 must be verified,
etc. As always, best see the actual bulletin for details. “Flag” also
improved the price adjustments on Government loans with FICO greater than or
equal to 740, changed the way its administrative fee will be assessed on
delegated loans at new levels beginning 6/10, made price adjustment changes
(improvements) to certain FICO/LTV and subordinate financing in its Freddie Mac
Relief Refi and Open Access programs. And, as with other lenders, the 5/1 and
7/1 LIBOR ARMs are being suspended in the MyCommunityMortgage Program.

Few people are complaining about rates,
although, given the low mortgage rates, there are some concerns about pull
through and having too much MBS coverage on for mortgage banks. Yesterday we
saw another improvement as the Case-Shiller index came in about as expected and
then we had disappointing prints in the Chicago PMI and Consumer Confidence. It
was a day where both stocks and bonds rallied, and traders reported seeing
“solid domestic real money buying come through the desk, focused mostly in
the front end of the curve for the month end trade.”

Today we’ve already had a fair amount of
news. The MBA reported its sample of mortgage applications fell for the first
time in five weeks as refinancing cooled, falling 4% last week. Purchases were
unchanged, but refi’s were down almost 6% and now account for less than 66% of
apps. We’ve also had the ADP Employment change, always of dubious predictive
ability for Friday’s employment data. ADP numbers only showed a gain of 38,000
jobs, with an April revision downward. We also have ISM Manufacturing and
Construction Spending at 10AM . Currently, given the poor ADP number and
(now) the declining hope for a decent number Friday, we find the 10-yr yield
at 3.002% (!) and MBS prices better by .250

(Heavy Parental Discretion Advised. Heck, any joke with a first sentence like
this one deserves a warning. And I apologize in advance…but the joke
illustrates how first assumptions are not always correct.)

The testicles of a Texas midget hurt and ached almost all the time. The midget
went to the doctor and told him about his problem. The doctor told him to drop
his pants and he would have a look.

The midget dropped his pants. The doctor stood him up onto the examining table,
and started to examine him. The doctor put one finger underneath one side and
told the midget to turn his head and cough, the usual method to check for a

“Hmm…”mumbled the doctor, and as he put his finger under the other
side he asked the midget to cough again.

“Aha!” said the doctor, and reached for his surgical scissors….

Snip-snip-snip-snip on the right side . . . then snip-snip-snip-snip on the
left side.

The midget was so scared he was afraid to look, but noted with amazement that
the snipping did not hurt. The doctor then told the midget to walk around the
examining room to see if his testicles still hurt.

The midget was absolutely delighted as he walked around and discovered his
testicles were no longer aching.

The doctor said, “How does that feel now?” The midget replied,
“Perfect Doc, and I didn’t even feel it. What did you do?”

The doctor replied, “I cut two inches off the top of your cowboy

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