I read in Pirate Quarterly that you could take the entire human
population of the earth, put it inside of Texas, and it would still be
less crowded than New Yorrrrk City. (So I checked. NYC is 469 square
miles, 8.3 million people, so 17,700 people per square mile! Texas is
268,820 square miles, which at 17,700 people per square mile would
accommodate 4.75 billion people.) But there are 7.2 billion of us.
Fortunately Alaska is twice the area of Texas, so at least we can say
one state would hold the earth’s population at the same density as
Manhattan. For something a little more relevant, check out this cool mortgage map. It shows lending trends over the last several years here in the United States (click on “interactive map” in the text to watch it).
2002 I remember looking out my office’s window and seeing employees of
another mortgage company taking boxes of loan files out to the dumpster
without being shredded. The situation was corrected, but it appears that
people are still capable of doing these things – and thus comes a similar tale from Colorado and Centennial Mortgage.
“Who will regulate the regulator?” The CFPB once again turned some heads Wednesday, this time addressing nonbank car lenders. “The CFPB is proposing to oversee larger nonbank auto finance companies for the first time at the federal level.
The Bureau also released a supervision report that details the
auto-lending discrimination that the Bureau has uncovered at banks. The
report highlights that the Bureau’s supervisory actions against banks
will result in about $56 million in redress for up to 190,000 consumers
harmed by discriminatory practices…Currently, the Bureau supervises
large banks making auto loans, but not nonbank auto finance companies.
Today the CFPB is proposing to extend its supervision authority to the
larger participants of the nonbank auto finance market. Under the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
(Dodd-Frank Act), the CFPB has authority to supervise certain nonbanks
the Bureau defines through rulemaking as “larger participants” in a
market. Today’s proposed rule would generally allow the Bureau to
supervise nonbank auto finance companies that make, acquire, or
refinance 10,000 or more loans or leases in a year. The Bureau would be
supervising them to ensure they are complying with federal consumer
financial law. The Bureau estimates that about 38 auto finance companies
would be subject to this new oversight. These companies originate
around 90 percent of nonbank auto loans and leases, and in 2013 provided
financing to approximately 6.8 million consumers.” Let’s
face it – the critics are gaining momentum saying that possibly every
fiscal transaction involving a consumer will be eventually overseen by
While we’re on the CFPB, nearly a month ago news broke of Flagstar’s “eminent” settlement with this bureau. I haven’t seen any settlement, but it bears repeating clarification that this information is a result of Flagstar’s servicing operation, and has nothing to do with channel issues such as mini-correspondent.
Flagstar’s Form 8-K states, “Flagstar Bancorp, Inc., the holding
company of Flagstar Bank, FSB (the “Bank”), announced today that the
Bank has commenced discussions with the Consumer Financial Protection
Bureau, or CFPB, related to alleged violations of various federal
consumer financial laws arising from the Bank’s loss mitigation
practices and default servicing operations dating back to 2011. The Bank
previously provided the CFPB with documents and other information
concerning the Bank’s loss mitigation practices and default servicing
operations in response to Civil Investigative Demands received from the
CFPB. While the Bank intends to vigorously defend against any
enforcement action that may be brought, it has commenced discussions
with the CFPB staff to determine if a settlement can be achieved. Those
discussions are ongoing.”
to bank news, is $8 trillion in loans on the books of banks, a good
thing, or a bad thing? I guess, like most things in life, it’s all
relevant. My answer would be: sometimes good, sometimes bad. The
American Bankers Association’s Chief Economist, James Chessen, writes, “Banks
reached a historic milestone in the second quarter, holding more than
$8 trillion in loans on their books for the first time ever. The
double-digit increase in business lending reflects increasing
confidence, with businesses more likely to consider expansion in an
improving economy. We’re seeing the natural link between businesses
being willing to borrow and a growth in job creation, with around
210,000 new jobs created each month. There has never been a better time
for businesses that want to borrow and expand their operations. Rates
are low, and a highly competitive marketplace ensures banks will offer a
broad menu of options when it comes to structuring loans.” While bank assets grow, residential lending continues to under-perform, as Mr. Chessen points out, “total
lending is up $377 billion year-over-year, residential mortgage lending
remains weak. New regulatory requirements on mortgage lending are not
helping, and will continue to dampen a key economic driver. First-time
homebuyers are feeling the pinch most intensely.”
I head off to the Mortgage Bankers Association of the Carolinas annual conference
tomorrow, which made me realize that there are a lot of upcoming events
– many of them free and educational. So in no particular order…
The MBA/MW’s Mid-Atlantic Lender Conference
is coming up on Thursday, October 9. It will be held at Waterford at
Fair Oaks (in Fairfax, VA), and anyone interested should register by October 2 for the early bird rate. Lunch and happy hour are included at no extra cost. Click on the link above to download pdf with speaker details. Hey, it includes a trade show and happy hour!
All Regs has scheduled school of mortgage compliance
November 3rd-5th. The three-day, interactive classroom experience is
designed to give compliance professionals an advanced understanding of
the federal regulations governing the mortgage industry.
In Oklahoma, the OMBA Conference
on October 3rd will be presented by Bricker Eckler LLP and
INCompliance. This one-day conference covers the most critical
regulatory, compliance and litigation issues facing the industry. Event details include agenda and registration information.
Get ready for a jam packed agenda on mortgage compliance next steps and latest best practices at the Mortgage Regulatory Forum taking place September 22-23, at the Westin Arlington Gateway, Arlington, VA.
On Wednesday, September 24, join WAUSAU Financial Services and Treasury Strategies in a webinar discussing key reasons why paperless onboarding should be on every bank’s 2015 project list.
Late November in Washington D.C., American Conference Institute is offering a 2-day conference. Register by September 23rd and join the mortgage servicing compliance summit, topics include MSR transfer risks and much more.
Save the date: Colorado Mortgage Lenders Association 24th Annual Rocky Mountain Mortgage Lenders Expo on April 9th, 2015, more information to follow in the coming months.
Social Media Bootcamp: OC C.A.M.P. registration
scheduled on October 1st, Katie Wagner will discuss what not to do with
social media for your business. Speaking of Orange County, CA, the 2nd
Annual Orange County C.A.M.P Golf Tournament supporting worthwhile organizations is scheduled for October 6th.
to the markets, jobs and housing are keystones of any economic
recovery, and yesterday we had updates on both. Housing Starts fell
14.4% in August (following hitting its highest level in seven years) to a
956,000 annualized rate following July’s revised 1.12 million pace. And
Building Permits for future projects dropped 5.6% to a 998,000 pace in
August from a 1.06 million rate the prior month. But Jobless Claims fell
36,000 in the latest week, and are down near post-recession lows. The four-week moving average of claims, which smooth out weekly volatility, was down 4,750 to 299,500.
saw the standard buying by the Fed, helping the demand side of the
supply demand equation. Supply from mortgage bankers wasn’t
anything to be excited about. And thus we find ourselves today not much
different from rates during the entire week with the only scheduled
economic news being the 10AM data with August’s Index of Leading Indicators. The 10-yr’s yield, which closed Thursday at 2.63%, is back to 2.60% and agency MBS prices are better nearly .125.
Jobs and Announcements
Here is something a little off the beaten path for someone good at sales but is a little weary of mortgages. Due
to continued growth, Inheritance Funding Company, Inc. is looking to
hire an additional Funding Officer for its San Francisco Financial
District home office. Inheritance Funding Company, Inc.
(IFC) has provided heirs waiting for their inheritance distribution
with capital advances for over 20 years. “With over $100M advanced to
heirs in all 50 states, IFC is the oldest and largest purveyor of
inheritance advances in the country. With continued growth in this
lucrative sector, IFC is looking to hire the right talent to catch up
with increased demand. Inheritance/Probate experience is neither
expected nor required though some understanding of legal process is a
plus. The right candidate will showcase a blend of sales expertise,
analytical reasoning, and strong client communication skills.
Competitive base salary and uncapped incentive pay for strong
performers.” Send all resumes and inquiries to Eric Holdsworth, VP of Marketing.
along traditional lender lines, REMN Wholesale had a very successful
showing at the 2014 NAMB with a packed booth on the show floor and more
than 1,200 people registering to attend their 25th anniversary
celebration at LAX. To keep up with demand, REMN
Wholesale is looking to hire experienced account executives across the
country, especially in California, Colorado, Louisiana, New York, Texas
and Virginia. Know anyone? Resumes can be sent to REMN Wholesale at aerecruiting@REMN.com.
“REMN Wholesale is a full service lender dedicated to providing brokers
and bankers with the best customer experience possible, which includes
same day turn times on new files. In addition to their leadership in
renovation lending, REMN Wholesale offers government and conventional
products, including high-balance, FHA, VA and USDA loans. For more
information visit REMN Wholesale.”
Congratulations are in order for John Adams who has joined Stearns Lending
as Executive Vice President, National Head of Retail Lending. Mr. Adams
has been brought on to continue Stearns’ nationwide growth of retail
channel. Prior to joining Stearns, Adam served as the Northeast Sales
Executive for Bank of America, and spent 14 years leading and building sales teams throughout the Eastern United States for Wells Fargo Home Mortgage.