Uniform Mortgage Data Program and Appraisals; Bank MBS Holdings; Obtaining IRS Tax Transcripts;

News

Do boom
and bust cycles in real estate only happen in the United States? Of course not: BoomBust

Here’s a campaign hitting the public: Zillow Mortgage Marketplace
is giving out Lowe’s gift cards to borrowers who contact them for a quote
between 4/28 and 5/4 and the loan closes before 7/5. The cards are worth up to
$1,000 for SFH, primary residence, $250-417k, FICO greater than 720, LTV less
than 80%, in certain states. Here you go: LowesZillow

Is it my imagination, or does the public’s memory last only a few weeks? Or is it
just because the financial press is on to the next shiny object? I mention this
because I noticed the news yesterday that the Japanese stock market index
(Nikkei) hits highest level since the earthquake
. Remember the earthquake
in Japan, right? Heck, remember hurricane-ravaged New Orleans, or the havoc
wreaked by the tsunami in Indonesia?

When you’re hunkered down over that tall cool one this weekend at the bocce
ball tourney, ask the person standing next to you, “In the first quarter
of 2011, how many housing units are there in the US?” The answer is 131
million
. Of those, about 86% are occupied, 57% by owners, 29% by renters,
and 14% (nearly 19 million units) are vacant. In this country the home
ownership rate is about 66%, down slightly from the previous quarter and year.
The Census Bureau reports that the homeownership rates were highest for those
householders ages 65 years and over (81%) and lowest for those under 35 years
of age (38%) – no surprise there. Lastly, the homeownership rate for non-Hispanic
Whites was highest at 74%, while “Black Alone householders” was
lowest at 45%. CensusHouseholds

Yesterday I discussed hedging cost, and received this from a grizzled
industry vet: “Well you mention a lot of pipeline management items in your
hedge cost and unfortunately that falls under the secondary guy. It is up to
him or her to track their pull through by broker, LO, and retail office,
establish the lock and renegotiation policies and monitor these activities, and
operational efficiencies of the loan flow through the pipeline and upon
delivery of the final product. This part of the job is not glamorous, but
extremely important to remain profitable. Since it is under the secondary
marketing’s PL, they have to make sure all the gears are in sync to ensure
profitability. Nice ‘pin cushion’ position!”

LO’s know that borrowers can
obtain their IRS Transcripts within minutes
, many times before they are
available to lender.  They can just call 800-908-9946, press (1) for English
(assuming you’re reading this), give their social security number when
prompted, and give the street numbers of their address on their tax
returns.  The borrower should then listen to the automated message and
when it prompts to submit an order by pressing (1) don’t – the borrower should
hit zero (0) until it brings them to the operator. At that time the borrower
can verbally request a faxed copy of the years’ transcripts needed, but
remember that the borrower will be asked personal questions for all people on
returns will be asked such as: what form they filed, address, SSN’s, names,
number of people on returns, whether it is a business or personal fax, and so
on – almost as much as standing in line at the post office.

Although one conference in New York is fast approaching, there is another one
that is on many folks’ radar screens: the Texas Mortgage Bankers Association
Convention
(their 95th) May 22-25 in Austin. The marketing material notes,
“We have been fortunate to line up a level of speakers that rivals any
national event: David Stevens (transitioning from FHA to the MBA), Barbara
Desoer (President of Bank of America Mortgage), Pat Sheehy (runs Chase’s
Correspondent and Rural Housing groups), Vicki Bott (Deputy Assistant Secretary
for Single Family Housing at HUD), Mitch Kider (Chairman of Weiner Brodsky
Sidman Kider PC), Steve O’Connor (SVP, Government Affairs at the MBA),”
and so forth.  Over 500 are expected to attend this event in The Great
State of Texas, and they promise not to talk about seceding from the US during
the conference: TexasMBA

You’ll be hearing a lot about this, but come September the days of, “I’ll
fax you the appraisal” will be history. To illustrate, Wells Fargo’s
correspondents recently received a Newsflash with topics that included,
“FHFA’s Uniform Mortgage Data Program, GSE Required Uniform Appraisal
Dataset, GSE Uniform Collateral Data Portal, and GSE Uniform Loan Delivery
Dataset.” “(Last year) FHFA announced that under its direction Fannie
Mae and Freddie Mac are working together to develop and implement the Uniform
Mortgage Data Program (UMDP)
to provide uniform appraisal and other Loan
delivery data standards, as well as a joint appraisal data delivery system for
conventional conforming Loans. UMDP is intended to drive quality by collecting
and evaluating standardized loan-level data from lenders.” Wells’ goes on
to address their specific updates related to this program, but notes that the
Uniform Appraisal Dataset includes all required data points for a complete appraisal
report form and standardizes key appraisal data for a subset of fields on the
Fannie Mae and Freddie Mac uniform residential appraisal report forms, and the
GSE’s will be requiring appraisals to conform after 9/1.

In fact, Wells Fargo Funding will expect all conventional conforming loans
submitted for purchase to comply with the effective Agency UAD requirements.
Get used to it – sellers across the nation will be expected to review and
update their internal processes and procedures to accommodate the implementation
of new GSE electronic appraisal data requirements
.

Speaking of which, business is springing up regarding the Uniform Collateral
Data Portal (UCDP) and Uniform Mortgage Delivery Program (UMDP).  For
example, the Mercury Network’s support of MISMO formats provides
Mortgage Lenders, AMC’s and your appraisers the ability to stay pace with these
GSE’s requirements.  a la mode is the company behind the Mercury Network,
the nation’s premier vendor management platform for Mortgage Lenders and AMC’s
to manage appraisals.  The Mercury Network allows your appraiser’s to
deliver you appraisal’s today in both a PDF and MISMO XML data format. And no,
this is not a paid announcement, but apparently they have over 10,000
appraisals going through the Mercury Network daily.  For more information
contact Marty Richardson at martyrichardson@sbcglobal.net.

Who has been buying securities backed by mortgages? Over the three week
period ending on April 13, domestic bank holdings of agency MBS have increased
by $26 billion (from $1,093bn to $1,119bn). This sharp rise occurred after bank
holdings of agency MBS remained nearly flat for about 3-4 months. In addition,
a major portion of the recent spike in bank holdings of agency MBS can be
attributed to the purchases of large banks instead of small banks (large bank
holdings are up $21.5bn over the three week period ending on 4/13). This is
unlike with the prior 3-4 months when agency MBS holdings of small banks
continued to increase while those of large banks remained flat or
even declined. It is also apparent that domestic banks that were
aggressively growing their Treasury holdings (and agency debt) instead of
agency MBS holdings in 2009 and 1H’10 are preferring agency MBS over Treasuries
over the past several months.

Things seem pretty slow out there, with a light day in Asia, Europe wrapped up
with the wedding holiday today and Bank Day coming up on Monday, and the
devastation in the South from the tornadoes. 170 tornadoes through 6 states!
(Japan’s markets were closed today, and next Tuesday through Thursday as the
Golden Week holidays begin.)

Yesterday rates improved as
Initial Jobless Claims jumped 25K last week with continuing claims posting a
decrease. Pending Home Sales for March came in much stronger than expected,
possibly due to buying ahead of the FHA MIP change. The 1st quarter
GDP printed worse than expectations at +1.8% (is the economy slowing back down,
or did it pick up in the first place?), and a weak 7-yr auction. The 10-year
note closed higher by 14+/32s (3.314%) and rate-sheet MBS prices were better by
about .250-.375.

 

Special Terror Announcement (especially for the French):

The English are feeling the pinch in relation to recent terrorist threats and
have therefore raised their security level from “Miffed” to
“Peeved.”

Soon, though, security levels may be raised yet again to “Irritated”
or even “A Bit Cross.” The English have not been “A Bit
Cross” since the blitz in 1940 when tea supplies nearly ran out.

Terrorists have been re-categorized from “Tiresome” to “A Bloody
Nuisance.” The last time the British issued a “Bloody Nuisance”
warning level was in 1588, when threatened by the Spanish Armada.

The Scots have raised their threat level from “Pissed Off” to
“Let’s get the B–stards.” They don’t have any other levels. This is
the reason they have been used on the front line of the British army for the
last 300 years.

The French government announced yesterday that it has raised its terror alert
level from “Run” to “Hide.” The only two higher levels in
France are “Collaborate” and “Surrender.” The rise was
precipitated by a recent fire that destroyed France’s white flag factory,
effectively paralyzing the country’s military capability.

Italy has increased the alert level from “Shout loudly and excitedly”
to “Elaborate Military Posturing.” Two more levels remain:
“Ineffective Combat Operations” and “Change Sides.”

The Germans have increased their alert state from “Disdainful
Arrogance” to “Dress in Uniform and Sing Marching Songs.” They
also have two higher levels: “Invade a Neighbor” and
“Lose.”

Belgians, on the other hand, are all on holiday as usual; the only threat they
are worried about is NATO pulling out of Brussels.

The Spanish are all excited to see their new submarines ready to deploy. These
beautifully designed subs have glass bottoms so the new Spanish navy can get a
really good look at the old Spanish navy.

Australia, meanwhile, has raised its security level from “No worries”
to “She’ll be alright, Mate.” Three more escalation levels remain:
“Crikey!”; “I think we’ll need to cancel the Barbie this
weekend”; and “The Barbie is canceled.” “The Barbie is canceled” has never been reached

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