Wells Fargo Addresses RESPA-TILA; Reverse Mortgage Changes; NMLS Numbers on Lenders

“You
can tell a lot about a woman’s mood just by her hands. If they are
holding a gun, she’s probably ticked-off.” Here’s another observation,
besides it being “ugly sweater day”. What do Arizona, Arkansas,
Connecticut, Louisiana, Maine, Michigan, Minnesota, Missouri, New
Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma,
Pennsylvania, Texas, Washington, and Wisconsin have in common? Heck,
while we’re at it let’s throw Colorado and Nevada into the mix –
especially Nevada. Legal and compliance sessions at mortgage conferences
all over the U.S. are talking about super liens and their impact on
lending. What is a super lien?
Basically, if a borrower doesn’t pay their home owner or condo dues
(yes, condos are not the only properties affected) a foreclosure can
take place which wipes out whatever lender was in first place. Like I
said, it is a hot topic, and here’s a decent primer on the subject to read as courts, lenders, and home owner associations wrangle.

“Rob, we’re setting out to find a subservicer. Have you seen any rankings
lately?” I have. Myrtle had no interest in tallying the volumes, so
fortunately Inside Mortgage Finance does and do a good job of it. The
top 10, which per IMF amounts to more than $1 trillion out of almost $10
trillion total, through the middle part of the year are Dovenmuehle,
Cenlar, LoanCare, PHH, Celink, Provident Funding, Ocwen, Select
Portfolio Services, Specialized Loan Servicing, and NationStar. Remember
that these guys don’t own the servicing asset (mortgage servicing
rights: MSRs) but instead receive a cut of the monthly payment. Their
collective volumes have certainly jumped as smaller companies try to
retain servicing and sell directly to Fannie or Freddie or larger
companies realizing that they just don’t have the expertise needed to
keep up on all the servicing regulations and instead turn it over to a
specialist.

Speaking of trends, Wells Fargo came out with its program for handling TILA-RESPA in RESPA News. Many are wondering why other large lenders aren’t doing similar press releases.

Donna Beinfeld reminds readers that the “CFPB’s reminder to the
lending community that requesting medical documents for borrowers who
receive Social Security Disability Income, would be considered discriminatory under ECOA Reg B.
The responses from all four agencies (HUD, VA, Fannie Mae, and Freddie
Mac) were published in this bulletin as well. As a reminder from the
CFPB, you are responsible for training your staff to recognize that
asking for excessive documentation is prohibited.”

Ken Meyer from TrustDeed Capital wrote an article
that discusses how LOs can “navigate California’s real estate
investment market”. “California’s housing market is highly competitive
so in order to capture the best properties you will need to provide
enough cash for large down payments. Also, be aware of the property
taxes you may have to pay, as the tax assessment can be increased to a
property’s sales price when the property changes hands. Be diligent on
researching the property by asking for photos, plans or sketches and
keep in mind, the best place for entrepreneurial real estate buyers to
find investment capital is with private money lenders. Meyer also
provides tips for flipping houses, as returns from 30% to 60% are
possible, such as finding markets that are attractive to young adults
but occupied by older homeowners and only moving forward on a deal if
you can meet your profit expectations. Spotting off market deals, such
as For Sale by Owner listings, expired listings and contacting owners
directly, can result in some of the best investments.”

Plenty of people in California are obtaining reverse mortgages, and changes are imminent in the reverse mortgage sector. David Savin, president of Select Choice Mortgage,
writes about the new financial requirements that will be effective
March of 2015 for all reverse mortgages. Lenders will now be obligated
to conduct a “financial assessment” of potential borrowers who are
issued an FHA case number on or after March 2, 2015, which will include a
credit score review. As part of the financial assessment, lenders may
need to gather more documentation to guarantee the borrower meets the
financial criteria, similar to how documentation is gathered on a
forward mortgage. If borrowers do not meet the financial standards
determined by the assessment they may need to set up a Life Expectancy
Set Aside (LESA) fund to cover property charges, just how escrow
accounts are set up for forward mortgages. These new changes may make it
harder for borrowers to qualify for a reverse mortgage but at the same
time, ensure borrowers are able to meet their financial obligations and
are able to live in their home for the remainder of their lifetime.

Last
week the MBA feted the independent mortgage bankers out there – those
lenders are definitely flexing their collective muscle and abilities,
using their warehouse lines and offering various products. It turns out
that during the third quarter independent
mortgage originator numbers
increased 10% over Q3 2013. The number of
licenses issued for state-licensed mortgage loan originators increased
10 percent in the third quarter compared to 2013, while the number of
federally registered loan originators declined, according to new data
from the National Mortgage Licensing System Registry
(NMLS). In the third quarter, the NMLS measured 343,800 individual
licenses (compared to 311,589 in third-quarter last year) while over the
same period the number of federally registered entities dropped 2.5
percent, from 404,385 in third-quarter 2013 to 393,981 in third-quarter
2014. And keep in mind that the
number of state-registered mortgage originator licenses is not an
indicator of the number of individual originators because originators
can hold multiple licenses across several states. The uptick in state-registered licenses may indicate that nonbank lenders are expanding their territories.

The
FHFA, which oversees Fannie Freddie, knows a thing or two about
lending trends and it warned that non-depository mortgage banks could
pose a threat to the government-sponsored enterprises (GSEs) because
they are less regulated than big banks, and because of the increasingly
large volume of mortgages they handle. The same FHFA report said that 47
percent of mortgages Fannie Mae purchased in 2013 were from independent
mortgage bankers, compared to 33 percent in 2011. Freddie Mac bought 20
percent of its mortgages from independents in 2013, up from 8 percent
in 2011. Fannie Mae, by the way, recently said its Q3
profit fell 55% due to lower revenue and a higher tax provision vs. one
year ago, but also said it will pay $4B to the Treasury by year-end.
And Freddie Mac said its Q3 profit declined 91% vs. one year ago and it said it would pay $2.8B to the Treasury.

Let’s see what some random companies, small and big, have been up to lately to gauge lending trends.

Banc Home Loans
has expanded its Jumbo guidelines. Its “Program 55” highlights include
up to 85% LTV no MI (to $2M), Loan amounts to $5 million, Minimum 660
FICO to $1.5M, 1st time home buyer- loan amounts to $2M, and Primary
Residence: Cash Out Refinance now to 75% LTV (Cash-out up to $1
million). For complete information, visit Banc Home Loans website.

JP Morgan Chase has approved the most SBA loans to women- and minority-owned businesses in the United States, according to the U.S. Small Business Administration. Complete press release available.

PennyMac Financial Services Inc.
has formed a new division to focus on loans that finance multifamily
and other commercial real estate deals. PennyMac Commercial Real Estate
Finance will work with its sister company, PennyMac Mortgage Investment
Trust, on the securitization of commercial loan packages. Steve Skolnik,
former chief executive and co-founder of ReadyCap Commercial LLC in
Irvine, will head the new venture with the title of chief commercial
lending officer. The venture will focus on deals with values under $10
million.

Caliber’s enhanced Fresh Start Program was rolled out. The
two biggest features are bank statement option for self-employed
borrowers, and no seasoning or mortgage payment history required for
Short Sale, DIL, Foreclosure or Bankruptcy.

BluePoint Mortgage
has Jumbo IO products with 89% LTV up to $1,500,000 with NO MI Loans up
to $3,000,000 and 80% IO to $2,000,000, Up to $500,000 Cash Out, Second
Home and NOO options, Cash out for second homes and NOO.

Carrington Mortgage Services, LLC
announced the national availability of “The Carrington Loan,” offering
borrowers a more transparent, simplified home loan process with no
closing costs or upfront financing fees. The Carrington Loan can
facilitate home purchases for borrowers in the sub-640 FICO score range.
The announcement in its entirety is available, click here.

Social Security Number verifications are conducted only if they are a condition of the loan. As a courtesy to its clients, Plaza Home Mortgage
will verify Social Security numbers if required. As such, the link for
SSN Verification has been removed from the website, effective October
20, 2014. As of October 15, 2014, all 2013 Personal Tax returns must be
filed with the IRS. 2013 IRS tax return extensions are no longer valid.
Plaza will now use the 4506T on file to request transcripts of 2013
personal returns. Plaza is now offering Co-op financing in select areas
of New York and New Jersey, effective October 21, 2014.

Wells Fargo Funding
improved its refinance adjusters for all non-conforming products as of
November 10th, adjuster improvements are listed on the daily rate
sheets. In addition, its minimum down payment requirement has been
removed from its conventional conforming loans.

Stearns Wholesale is now offering new FHA FICO options 600-619 FICO score program.

Flagstar
posted information regarding loans in the state of Massachusetts.
Effective November 20th, a state specific disclosure notifying the
borrower(s) of a property’s location in a Special Flood Hazard Area is
required. Flagstar has created a new disclosure in its Sellers Guide for
this purpose.

Bopping
over to the markets, there isn’t much going on… we’re definitely in the
holidays. In fact, after Retail Sales and Jobless claims, except for a
little chop and some intra-coupon movement, it was downright uneventful.
I won’t waste your time. In Washington DC debate is set to begin in the
Senate on a $1.1 trillion spending bill to head off a U.S. government
shutdown. (The House passed the measure in a 219-206 vote Thursday
night.)

But
this morning we’ve had the Producer Price Index (it was -.2%, core
unchanged). Later we’ll have the December preliminary University of
Michigan survey, thought to improve to 89.1 from 88.8 prior. We had a 2.18% close on the 10-yr Thursday and this morning we’re sitting at 2.12% and agency MBS prices better by .125-.250.

Jobs

PHH Mortgage, already the 4th
largest originator of residential purchase mortgages in the U.S., is
expanding and actively recruiting Loan Officers in the Houston and
Dallas markets. “If
you are looking for a company that provides you with the necessary
tools and processes that simplify your job, a range of loan products to
serve a variety of customer needs, unprecedented access to partner with
the world’s largest real estate franchisor and a competitive compensation package
that rewards success, then this is the opportunity for you.”  To learn
more click on the link above or send your resume or questions to Christine English. By the way, PHH Mortgage Correspondent would like to welcome the addition of Joe Garcia
as a Regional Sales Leader managing the Midwest/Central US region. Joe
comes to PHH with 12 years of experience in retail and correspondent
lending with previous experience at CMG Financial, Guaranteed Rate, and
TCF Bank.

And VidVerify is seeking motivated candidates for Sales Account Managers to expand sales activities throughout the country. 
Interested candidates should be energetic and professional, as well as
highly self-motivated, with a strong personal desire to grow a new
business. VidVerify
is a “dynamic and innovative company focused on providing a platform
that enables lenders to provide the borrower and loan officer with a
series of videos that automatically deliver a clear, concise and
consistent message throughout the loan process.  In the face of CFPB
audits, Dodd Frank and compliance requirements, Vidverify
allows banks and mortgage banks to get in front of potential regulatory
issues by educating borrowers to the mortgage process, provide clear
explanations of their paperwork, and provides definitions of all
relevant mortgage terms.
 Our partnership with leading compliance companies and financial
services law firms enable us to provide program content consistent with
CFPB guidelines.” Please contact or send resume to Laura Hopkins.

Article source: http://www.mortgagenewsdaily.com/channels/pipelinepress/12122014-super-liens-respa-tila.aspx

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