The House of Representatives voted to roll back some of the main regulations contained in the 2010 Dodd-Frank law. It was an almost perfect party-line vote, 233-186. Among members who voted on the legislation, all 185 Democrats were opposed and all but one Republican was in favor. On to the Senate!
Rates slid higher Thursday for the second-straight session despite declining government bond yields in the eurozone – probably because in our country U.S. initial jobless claims have been moving up from recent lows but remain indicative of a robust labor market. The European Central Bank (ECB) left rates alone, and with that out of the way the pundits will be talking about U.K. election and next Wednesday’s virtually guaranteed rate hike by the Federal Reserve. The ECB statement, by the way, dropped language about lowering rates further. Thursday the 10-year note price worsened .125 (to yield 2.19%) but the 5-year Treasury and agency MBS prices only dropped 1-2 ticks (32nds).
For today there is no scheduled news of any importance here in the United States so the chatter is focused on the results of Thursday’s general election in the United Kingdom (England, Scotland, Wales and Northern Ireland). British Prime Minister Theresa May experienced an election upset that saw her Conservative Party lose its parliamentary majority days before talks on Britain’s EU departure are due to begin. The complex talks on Britain’s divorce from the EU (British Exit, or “Brexit”) are due to start in 10 days, it was unclear what their direction would now be and if the so-called “Hard Brexit” taking Britain out of a single market could still be pursued. The election upset meant a possible delay in the start of Brexit talks and an increased risk that negotiations would fail.
A “hung” parliament was the worst outcome from a markets perspective since it creates another layer of uncertainty ahead of the Brexit negotiations and chips away at what is already a short timeline to secure a deal for Britain. Stateside we begin the day with rates slightly higher than Thursday’s close. The 10-year is currently yielding 2.21% and agency MBS prices are worse a smidge versus yesterday.
Are You Making Money?
The MBA’s 2017 Quarterly Mortgage Bankers Performance Report for Q1 was released this week and reported that independent mortgage banks were having a rough start in the first quarter of 2017. Per loan, gains and production costs are down, resulting in lower net profits. Independent mortgage banks and mortgage subsidiaries of chartered banks reported a net gain of only $224 on each loan they originated in the first quarter. “The drop in overall production volume in the first quarter of 2017 resulted in the highest per-loan production expenses reported since inception of our study (in 2008),” said MBA Vice President of Industry Analysis Marina Walsh. “While higher production revenues mitigated a portion of the cost increase, production profitability nonetheless declined by more than half the previous quarter. For those mortgage bankers holding mortgage servicing rights, an increase in mortgage interest rates resulted in MSR valuation gains and helped overall profitability.”
Changes to Pricing and Fees
According to one source, the CFPB is apparently looking into reports that Wells Fargo improperly charged fees to customers from Los Angeles to Oregon. Meanwhile, the bank is conducting its own inquiry.
For a limited time only, effective with U.S. Bank Home Mortgage new locks taken on or after today, Tuesday, May 23rd, an escrow waiver fee will not be charged on properties in the state of California.
U.S. Bank Home Mortgage has enhanced its Extended Lock Program effective May 30, 2017. Enhancements include: increased the eight-month (240 day) lock period to a nine-month (270 day) lock period, added ARM programs to the 270-day lock period and removed interest only programs.
Citibank Correspondent is offering Community Reinvestment Act (CRA) Premiums on eligible loans. The premiums offered for these MSAs will change effective with locks on/after Thursday, June 1, 2017. View a complete grid of current MSAs eligible for CRA Premiums.
Mortgage Solutions Financial has improved its 501 Non-Conforming price adjusters, effective with loan locked on or after June 6th.
Premier Reverse Closings has updated its PRC Fee Calculator site and have added additional security measures for your protection. Please replace any old links.
Flagstar Bank will longer list specific survey fees within the product descriptions. Each construction and renovation product description will reference Construction Renovation Surveys, Doc. #4211, and Flagstar Disclosure Management will use the fees on that document when preparing all Loan Estimates for those products. Also, noteworthy, effective May 26th, A lock is not transferrable for a property address change on an existing commitment. When a new property address is established a new loan will need to be registered by Flagstar’s Marketing Department (866) 945-9872. A new loan number in a floating status will be assigned. Any new rate lock will be based on the current market at the time of re-commitment.
Trends and News about eNotes
Mid America Mortgage has purchased the eNote from North Carolina’s first eMortgage transaction. The transaction, which was completed entirely electronically, was a refinance for a property in Winston-Salem and was executed by Hickory-based North State Bank. Upon completion of the closing, Mid America could purchase the resulting eNote within one business day after receiving the final loan package. North Carolina Secretary of State Elaine F. Marshall noted, “This was our first North Carolina eClosing. It is not our last. We want this to become a regular option for lenders and their customers because of the many advantages eClosing offers versus the slower, traditional paper-based system.”
MERSCORP Holdings, Inc. released an educational video explaining the benefits of transitioning from an all paper mortgage process to electronic mortgages (eMortgages) and electronic notes (eNotes). The video illustrates the eMortgage process and highlights the benefits for borrowers, lenders, warehouse lenders, servicers, document custodians and investors. The company also updated the MERS® eRegistry webpage with helpful documents and links to places where mortgage industry participants can go learn more about becoming eReady.
Simplifile has expanded its e-recording network to include 15 additional recording jurisdictions across the Western and Midwestern United States. As members of the Simplifile e-recording network, settlement agents in these jurisdictions can now electronically submit documents directly to the county recording office via Simplifile’s secure e-recording service. Within minutes, the county recorder is also able to review, stamp, record, and return documents electronically through the Simplifile system. The secure platform also reduces errors and eliminates check-writing costs by allowing settlement agents to electronically pay recording fees and other associated expenses.
Hiring, Personnel, Products
In wholesale job news, Homeward Residential is “continuing its nationwide wholesale growth and is very excited to welcome Gary Scarsella as our California Regional Sales Manager. With over 25 years of senior sales management experience in the mortgage industry, primarily in the wholesale channel, Gary is rapidly growing our California sales team. In addition to large territories and competitive compensation/ benefit packages, Homeward’s exceptional operations staff and culture of Service Excellence give our AE’s an advantage in the market place. ‘Our people make all the difference,’ says Michael Moorhouse, SVP. ‘It’s a great opportunity for top AEs to work with a team of service-first professionals, all working towards the same goal of delivering excellence for our clients.’ Homeward is currently hiring experienced account executives nationwide. To learn more, contact Craig Drouin (561-682-7145) for a confidential consultation.
What is the difference between the status quo and experiencing great service? In most businesses, the inches separating the two are the difference between great profitability and losing money. Great businesses generally control no more than 7% of the market share while controlling 70% of a given industries profitability. In 2015, The Money Source (TMS) decided to break away from the status quo of the subservicing world and bring their servicing in-house. What was the result? Lower delinquencies, increased servicing income, creating a world class technology to aid in servicing oversight, and much more. TMS is now offering the fruits of their labor to the entire market place. Tired of dealing with subservicers who treat you like they are doing you a favor providing “status quo” service, with 1990’s technology to boot? Come and see what TMS Subservicing offers. Visit www.getSIME.com for more details.
American Eagle Mortgage, an established and growing national mortgage banker, is looking to fill operations positions, for underwriters, closers, post-closers, and processors for Operations Centers in Ohio, Florida and Georgia. “On pace for another record year of closings, and with locks at an all-time high, we are looking to hire great people to support growth and maintain service. AEM is the #1 First Time Homebuyer lender in Ohio, nationally recognized for Top Originators on the team, and consistently awarded for being one of the fastest growing, privately held, companies in the country. AEM also utilizes state of the art technology to support efficiency across all positions and is continually upgrading to stay ahead of the curve. If you are ready to join the best team in the industry, email Shannon Murphy so we can discuss the opportunities available, and check us out at www.aemc.cc.”
“A rapidly growing direct to consumer mortgage bank with top tier tech talent is looking to hire a Vice President of Sales for our Consumer Direct division. Our business became serious about building proprietary technology to prepare for the current market and market conditions ahead and our new technology has increased originations and an opportunity in sales leadership has become available. Our ideal candidate will onboard with a minimum of 10 existing Loan Officers that are licensed in 10+ states and have experience working online (aggregator) leads. We currently have 3 direct to consumer call centers and are looking to add 2 more. We are open to any state that promotes opportunity inside the US. The company is licensed in almost all 50 states and is a Fannie Mae, Freddie Mac, Ginnie Mae approved originator. Interested candidates can submit their resumes via email: firstname.lastname@example.org.”
Michigan Mutual, Inc. is pleased to announce its newest operating center in Orange County, CA! Its Orange County Wholesale Team will be staffed with Operations and Account Executives to better service the West Coast. “Our commitment to the West Coast mortgage business makes this move a natural progression of the Michigan Mutual business strategy. We believe California represents a perfect alignment of the Michigan Mutual product offering and the needs of the Broker.” said President and CEO, Bruce Carr. Michigan Mutual is currently searching for a Closer to join the team in Orange County, as well as established Wholesale AEs and Level III Remote Underwriters, nationwide. “If you are a successful mortgage professional seeking an opportunity to join a thriving company, please contact National Director of Wholesale Lending, Greg Campbell (810.334.1643) or HR Specialist, Karley Warwick (248.286.9490). Visit our careers page to learn more! Michigan Mutual is an agency direct/seller/servicer/issuer established in 1992 and based in Port Huron, Michigan.”
Franklin American Mortgage Retail Lending is seeking highly-motivated, experienced sales professionals to capitalize on amazing growth potential. Looking for those who exemplify our mission of providing unparalleled service that has made Franklin American Mortgage an industry-leader. The company is specifically looking for a seasoned area manager for the entire state of Colorado and branch manager in Colorado Springs along with branch managers and loan originators in the following states: Alabama; Georgia; New Jersey; North Carolina; and Pennsylvania. For more information on these positions and to apply online, please visit http://franklinamerican.prevueaps.com/jobs or e-mail Jennifer Rader for more information. Franklin American Mortgage is FHA Direct Endorsed (DE), VA Automatic and LAPP Approved, FNMA/FHLMC and GNMA approved seller servicer.