Lead Generator Bank Settle Suits; Agency Updates; Fed Week


Lead generator Intermundo Media, LLC has agreed to pay $500,000
to settle charges by the Federal Trade Commission (FTC) that it falsely
advertised free mortgage refinancing
services online. Intermundo Media
used the name “Delta Prime Refinance” in ads that claimed homeowners
could refinance their mortgages for free to attract leads it then sold
to refinancing companies. How would $500k impact your balance sheet? How
about $550 million? The U.S. division of HSBC has agreed to pay $550 million (out of its $289 billion) to the FHFA
to resolve claims that it made false representations when it sold
mortgage bonds to Freddie and Fannie between 2005 and 2007: $374 million
to Freddie and $176 million to Fannie. The FHFA filed lawsuits against
18 banks in 2011 to recoup losses, and has now reached settlements with
all but two of the banks. That helps the Agency’s earnings. HSBC denied the allegation and, as part of its agreement, has not admitted wrongdoing.

As a reminder, the FHA
announced an extension of the condominium project approval guidelines
issued in ML 2012-18, dated September 13, 2012. These guidelines, which
were set to expire on August 31, 2014, have been extended through August
31, 2016. The extension provisions
is effective for all condominium project approvals, recertifications,
annexations or reconsiderations submitted for review as of the date of
this directive.

FHA published two final rules in the Federal Register: Handling Prepayments: Eliminating Post-Payment Interest Charges Docket No. FR-5360-F-02,
and Federal Housing Administration (FHA): Adjustable Rate Mortgage
Notification Requirements and Look-Back Period for FHA-Insured Single
Family Mortgages Docket No. FR-5744-F-02.
Collectively, these final rules provide consistent protections for
mortgagors (borrowers) with FHA-insured mortgages, while supporting
FHA’s efforts to ensure borrowers have early access to information when
making decisions about their FHA mortgages. The rules are responsive to
the regulations implementing the Truth in Lending Act, as recently
revised by the CFPB.

Fannie Mae posted a Lender Letter
reminding lenders that if a mortgage loan is selected by Fannie Mae for
an anti-predatory lending and HOEPA compliance review, the lender must
provide requested information regarding that loan’s points and fees and
other relevant information. To assist lenders in providing this
information, Fannie Mae has prepared an optional worksheet
that may be completed and submitted with the loan file or on request by
Fannie Mae. Servicers interested in identifying and proactively
contacting active duty service members who may be eligible for Fannie
Mae military indulgence relief benefits can review how to use dmdc. Additionally, FNMA Announcement
reports that the following updates have been made: References to loans
with terms greater than 30 years, interest-only, growing-equity
mortgages, and loans with prepayment penalties that were previously
announced. The Standard ARM Plan Matrix, Loan-Level Price Adjustment Matrix and Adverse Market Delivery Charge Information and the Refi Plus Mortgages Matrix
were also updated (as applicable) as a result of these changes.
Implementation of Suspended Counterparty Program (SCP) established by
FHFA. Clarification of Fannie Mae’s policies with regard to the
allowable age of credit documents and requirements pertaining to lender
review of disputed tradelines.

Freddie Mac’s Loan Prospector Liabilities Enhancements is scheduled for October 19, 2014. Details on how LP liability changes
may impact your loan submission are available for reference. Freddie
Mac is encouraging participation in the initiative announced by the
White House, the new Servicemembers Civil Relief Act (SCRA) initiative.
This initiative was created so service members can maximize all of the
protections under SCRA, including the six percent interest rate cap. To
facilitate SCRA relief, Servicers are now able to accept alternative
documentation to verify an eligible service member’s military status.
Lenders can search the online Defense Manpower Database Center
(DMDC) on a quarterly basis to find service members in their portfolio
that have Note Rates greater than six percent. More information
regarding the initiative can be found on both the White House blog and Freddie Mac’s Single-Family News Center article.

This Notice, Fannie Mae’s
list of approved mortgage insurance forms for each mortgage insurance
provider, now includes the state-required variation endorsements that
have been approved to date by the respective states. See Fannie Mae’s
Business Portal for the current version of Approved Mortgage Insurance Forms.
Implementation updates to Desktop Underwriter® (DU®) for government
loans are scheduled over the weekend of Oct. 18, 2014. The changes
include the retirement of a DU for government loans version, an update
to data entry guidance for FHA Gift Funds, a change to Mortgage
Insurance Premium information sent to FHA, updates based on HUD
Mortgagee Letters 13-24 and 13-25, and miscellaneous FHA and VA
calculation and message updates. Review the DU for Government Loans October 2014 Release Notes for additional information.

terms of interest rates, boy oh boy there’s a lot of stuff going on
this week. And that is merely here in the United States for scheduled
news – who knows who might attack who this week? Today we have Empire
Manufacturing and the Industrial
Production Capacity Utilization duo. Tomorrow is the Producer
Price Index (measuring inflation at the producer level – of course
inflation has not been an issue in several years). Wednesday, 9/17,
brings us the Consumer Price Index (CPI) with its change in the average
price level of a fixed basket of goods and services purchased at the
consumer level, and the NAHB Housing Market Index.

more importantly, Wednesday brings us the Federal Open Market Committee
meeting announcement with its policy decisions and brief comments on
the FOMC’s view of the economy and how FOMC members voted. This will
move the market. On Thursday September 18th
we have Housing Starts Building Permits, along with the
Philadelphia Fed Survey, Leading Economic Indicators, and the usual
Thursday Jobless Claims.

For numbers, since most folks in this biz are quantitative, we
had a 2.61% close on Friday on the 10-yr. and that is pretty much where
we are this morning with agency MBS prices roughly unchanged.


Jobs, Opportunities, and Announcements

In jobs news, HeritageBank Mortgage,
a boutique mortgage lending institution serving Colorado and the
Southeast, has been in the banking business for nearly 60 years. The
bank’s Mortgage Division is growing rapidly with production volume over $100 million/month and a heavy emphasis on purchase business. Management
has developed a solid presence in Southern Colorado and Denver and is
looking for serious and seasoned originators to fill only eight more
“The Colorado Mortgage Division is truly changing the game for
originators looking to dominate in their market. HeritageBank (Nasdaq:
HBOS) is a direct lender and servicer with Fannie Mae and Freddie Mac.
Headquartered in Atlanta and supported by a 5-Star Bauer Financial Rated
bank with close to $2B in assets, HeritageBank Mortgage is an
exceptional career option for the experienced originator. If you’re
ready to take your origination business to a whole new level while
working at a State Chartered Bank, email Jeff Garman, head of Business Development. NMLS #412081. Equal Housing Lender. Member FDIC.

On Q Financial, one of the top 50 mortgage companies in the United States is seeking a strong Operations Manager
at its headquarters location in Scottsdale to lead the overall loan
process for the Western US. This position is responsible for ensuring
that all service level agreements as set by the company are maintained,
while efficiency, quality and productivity goals are met. The individual
in this position will also work to facilitate a positive, dependable,
team-oriented environment among Operations and Sales staff. Requirements
include a bachelor’s degree or equivalent work experience, a minimum 5
years of ops management and a proven track record in mentoring and
leadership. On Q Financial has over 400 employees, 50 branches in 11
states, and has increased closed loan volume every year from $70 million
in 2005 to nearly $2 billion in 2013. Contact Betty Nay for a complete job description or confidential inquiries.

has recently announced that it is now a “No Fee Lender” and continuing
to gain market share with its “Serving the Underserved” loan products
with FICO’s down to 550. Continued growth and expansion are a priority
for Carrington who was also recently named master sub servicer by Ginnie
Mae, expanded its Jacksonville Operations Center and as a result is adding
experienced Wholesale Account Executives in the following markets:
Northern California, Oregon, Washington, Texas, Oklahoma, Missouri,
Kansas, and Utah. If you are interested please send your confidential resume to John Cervantes.

Dr. Rick Roque is teaching a course at Bakhtar University in Kabul, Afghanistan
on Banking/ Financial Leadership (amidst other things); he writes: 
“Rob, thankfully my American cell phone works perfectly as I am getting a
number of calls from small to mid-sized mortgage banks (or brokers)
looking to explore other options. In Afghanistan there are no
regulations on lending, and as a result there is little investor
confidence in the assets governed by the small amount of mortgage
lending that exists (anyone
like 60% down, 40% pay off in 3 year terms at 24%?  Ohh, I forgot to
mention, if you don’t repay, it is punishable by death- and who needs a
functioning title when you can just take the property by Military Coup).  Anyhow, I am amused with the image of having dozens of calls per day with the back drop of war all around – it
gives me a remarkable perspective on the status of our industry and the
opportunities that do exist provided people remain realistic as to
their choices. I
spoke to one woman from Florida who runs a decent sized mortgage
production team (30 Loan Officers) for a mortgage lender that is having
difficulties; and the biggest challenge she is having is taking the time
to investigate other options – she says, ‘Dr. Roque, I am struggling
because I don’t know what to ask for, and I cannot make the wrong
mistake for my team’.  This is at the heart of the issue, and the value
that my firm brings to mortgage brokers and mortgage banks across the
U.S. Regardless of your production size, in any state, if you want to
understand options that may improve your competitive position today, email me.”  For more information you can also visit MENLO’s website.

of the Community Home Lenders Association (CHLA) convened in Washington
on September 8-9 for their Annual Legislative Conference.
CHLA members heard from GNMA President Ted Tozer and convened panels
with representatives of other associations representing small and
mid-sized lenders, as well as consumer organizations. The conference is
part of CHLA’s ongoing effort to grow its membership base and advocate
on behalf of the distinct perspective of community based mortgage
lenders. In fact, the CHLA
is the only national trade association exclusively representing
non-bank lenders. CHLA members met with senior Administration officials
at the White House and senior staff from both sides of the aisle from
the Senate Banking Committee and the House Financial Services Committee.
Scott Olson, Executive Director of CHLA and former Housing Policy
Director of the House Financial Services Committee, called the
conference a success, saying, “This week’s CHLA conference gives
Washington policy makers the opportunity to hear from community lenders
who the ones out there are actually making the loans. And our members
get access and the chance to provide input on critical issues like FHA,
SAFE Act parity, and GSE reform.”  To inquire about membership please
e-mail Scott Olson.

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