The U.S. Treasury Department recently issued a report titled “A Financial System That Creates Economic Opportunities-Banks and Credit Unions.” In addition to recommended changes for the CFPB, the report devotes substantial attention to the residential mortgage industry – from the primary to the secondary markets. Hey, and if one tires of U.S. mortgage regulations, you can always buy a mortgage lender in…Australia, like KKR did today.
Jobs & services
Homeward Residential is currently offering a great opportunity for experienced loan officers looking to grow their business and income potential in today’s market. With an exclusive $200 billion portfolio and in-house lead generation focused marketing, Homeward loan officers have the benefit of a consistent daily flow of warm leads. In addition to competitive compensation and benefits packages, Homeward’s full suite of lending products, onsite operations and underwriting capacity give our loan officers an advantage in the marketplace. Homeward is proud of our commitment to a culture of Service Excellence and providing an inclusive work environment. We are currently hiring experienced loan officers with active licensing to join our Direct Lending division in the Dallas Metro and West Palm Beach locations. To setup a confidential consultation, contact Dena Linzay at 916-589-3339 or Email here.
“Academy Mortgage is coming to a city near you! We are actively growing our footprint in California and would like to welcome Gibran Suffy as a new Area Manager in San Diego County. Gibran comes to Academy with 16 years of solid origination and management experience. He will manage our new state of the art facility in Chula Vista as well as our Mission Valley branch. Gibran reports to Leif Boyd, Regional Manager for California/Nevada. Leif was just recently featured in Mortgage Executive Magazine’s-Most Influential Mortgage Executive for 2017. Gibran, welcome to the Academy family! Please reach out to Gibran if you would like to be a part of this powerful and growing team.”
Peoples Home Equity has added Chris Van Arsdale to their team as SVP, Talent Acquisition and Business Development. Chris brings two decades of deep experience as a top recruiter & talent scout to PHE at a time when the company is experiencing record volume with a current run rate exceeding $4 billion in originations. “Bringing Chris on board signals a renewed commitment to adding industry-best talent to our ranks,” says PHE’s Vice President Jack Williamson. “We’ve expanded into over 30 states and Chris adds a rich skill set at the perfect time. He’ll help mentor and train our existing leaders while sourcing and growing new ones.” Founded in 2001, Peoples Home Equity, Inc. is a Nashville-based fully functional Conventional and Government HUD-approved lender.
ReverseVision, Inc. is the leading software and technology provider for the reverse mortgage industry, offering products and services focused exclusively on the home-equity conversion mortgage (HECM) and related reverse mortgage programs. “Preferred by 10 of the 10 top lenders, ReverseVision technology supports more reverse mortgage transactions than all other systems combined. A 2017 HousingWire TECH100 company and Deloitte’s Technology Fast 500™ company, ReverseVision partners with some of the finest and fastest-growing banks, credit unions and lending organizations in the United States to provide its reverse mortgage technology to brokers, correspondents, lenders and investors. For more information, email email@example.com.”
“Fireworks are still going off at SocialSurvey. They recently moved into new offices in San Ramon, CA and they have not missed a beat. The team at SocialSurvey are welcoming 4 more lenders to their list of happy clients. Find out why Hallmark Home Mortgage, Pinnacle Capital Mortgage, First California Mortgage, and Mortgage Financial Services will soon be singing their praises along with 50 other first-class mortgage banks. SocialSurvey is the only Enterprise Reputation Management solution built for the mortgage industry. If your company is not actively managing your reputation, then your unhappy customers are eager to do it for you. Learn more about SocialSurvey by contacting Craig Pollack, SVP of Business Development. And, to any correspondent reps, MI reps, or mortgage technology sales-people that are seeking a fun and profitable environment, SocialSurvey is still hiring and is looking to fill spots in Southern California, the Midwest, and Denver in July. Submit your resume to Ayesha Faiz.”
State-level changes running amok
“Amok originated from the Malay/Indonesian word meng-âmuk, which when roughly defined means ‘to make a furious and desperate charge.’” When lenders complain about federal regulation and oversight, at least, in theory, it originally came from one source and is uniform across the 50 states. But when a multi-state lender must contend with all 50 states doing different things, things become complicated, and expensive, in a hurry. Let’s see what’s going on along the Atlantic Seaboard. (More from other states tomorrow and Friday.)
New Hampshire’s SB 81 has passed both chambers of the New Hampshire General Court (the State’s legislature), and will next be considered by Governor Chris Sununu. If enacted, SB 81 would allow for 60-days of transitional or “conditional” authority for mortgage loan originators (MLOs) licensed in other states to operate in New Hampshire. An MLO’s conditional authority would expire after 60 days if they failed to provide the Banking Commissioner with proof that they had obtained two hours of required New Hampshire mortgage law education and had passed the Uniform State Test (UST). As the bill has progressed, it has received robust support from the Mortgage Bankers and Brokers Association of New Hampshire.
Maryland enacted two measures designed to decrease the burden of state law provisions. Effective July 1, 2017, mortgage lender licensees who comply with federal TRID disclosure regulations will not have to provide a separate “Financing Agreement” (which is like a lock-in agreement) and “commitment” pursuant to Maryland state law. Also, the Maryland General Assembly, effective October 1, 2017, eliminated the filing prerequisite that a mortgage or Deed of Trust contain a written certification that the instrument was prepared by an attorney or a party to the deed.
Maryland also enacted provisions to streamline the foreclosures of vacant and abandoned properties effective October 1, 2017. Essentially, the provisions allow for expediency when a petition is filed for the foreclosure of a “vacant and abandoned” property. In addition, the provisions detail the qualifications for good faith attempts for the delivery of the foreclosure documents to the mortgagor/grantor (collectively referred to as “mortgagor”). A court will now rule on a petition “promptly” after it is filed. The streamlined process will only commence if a property is found to be “vacant and abandoned.” In order for the dwelling to be found vacant and abandoned, it must be found that the mortgage or deed of trust has been in default for 120 days plus meet three of the following conditions: (1) utility disconnection; (2) disrepair of windows/dwelling entrances; (3) accumulation of garbage on the property; (4) lack of habitation during inspection; (5) a written notice by the mortgagor of abandonment; (6) property condemnation; or (7) existence of two citations along with an unrectified health and safety issue.
Finally, Maryland amended provisions regarding fees associated with credit report security freezes also effective October 1, 2017. Previously, consumers were allotted two waived fee freezes provided he/she gave the consumer credit report agency (agency) the required documentation. Under the amendments this has changed. On October 1, 2017, a consumer will be allotted one waived fee freeze provided he/she give the agency the required documentation. This waived fee freeze is only allowed for the placement of a freeze; it may not be used at the discretion of the consumer. The amendments also updated definitions such as “security breach” and other technical terms to reflect the changes in technology and the industry.
A bill proposed by the Connecticut Department of Banking in the Connecticut General Assembly would extend personal liability to unlicensed employees of mortgage companies and non-banks in Connecticut. CT 7141, if it had passed, would have created personal liability for sales managers, business development roles and, yes, compliance officers. According to industry experts in CT, the DoB did not believe they had sufficient tools to “go after” the folks inside mortgage companies who don’t hold licenses.
The Virginia Corporation Commission adopted provisions regarding mortgage lenders, mortgage brokers and mortgage loan requirements. These amendments took effect on May 15, 2017. The amendment defines, among other terms, “bona fide employee,” “lead generator,” “mortgage broker,” and “Mortgage lender.” Mortgage lenders and brokers are required to maintain a transaction journal that includes the applicant’s name, application date, property address, loan amount, lien position, mortgage loan originator licensed name and registry number, address of originating office, name of lender, application status and any other information reasonably required by the commissioner for each application received.
The amendment requires mortgage lenders and mortgage brokers to file quarterly mortgage call reports through the Nationwide Mortgage Licensing System and Registry (“Registry”) instead of an annual report. Mortgage lenders and mortgage brokers are mandated to renew their licenses and approved office locations at the end of each calendar year. The update also clarifies that mortgage lenders and mortgage brokers will receive from the Bureau of Financial Institutions a single license instead of a license for each approved location.
The state of Maine amended its provisions under its Consumer Credit Code applicable to mortgage loan servicers. These provisions are effective on September 19, 2017 (or 90 days following adjournment of the current legislative session). Previously the code regulated the making of supervised loans and these amendments extend those regulations to the servicing of supervised loans. The amendments aim to improve the foreclosure process by regulating mortgage loan servicers.
Maine also amended its provisions relating to hearing and judgment under foreclosure proceedings by civil action. These provisions are effective on September 19, 2017 (or 90 days following adjournment of the current legislative session). The Act aims to protect a homeowner’s equity of redemption in a foreclosure action.
Connecticut amended provisions relating to licensing under Senate Bill 906, which is an act concerning lead generators of residential mortgage loans. Definitions were updated and added as related to residential mortgage loans. The definition regarding advanced fees was updated and new definitions were added for the lead, lead generator, and trigger lead. Effective January 1, 2018, no person shall directly or indirectly act as a lead generator without obtaining a license under Section 36-a-489, unless he or she is exempt under the statute. The commissioner may issue a lead generator license. The application for a license as lead generator must contain the identity of the applicant, any control person of the applicant, and any information related to administrative, civil, or criminal findings by any governmental jurisdiction. The commissioner may not issue a lead generator license to an applicant unless at a minimum it is found that the applicant demonstrates the character, reputation, integrity, and general fitness is such as to command the confidence of the community.
Originators who watch rates should keep in mind that the talk has certainly shifted from the Federal Reserve moving short-term rates to the Fed’s future of buying (or not) long term securities. The Federal Reserve is committed to unwinding its monetary stimulus despite a recent slowdown in inflation. Fed officials say they expect decreasing unemployment to positively affect inflation in time and are eager to get their policy tightening plans underway before the leadership changes in 2018.
Unfortunately for anyone who didn’t lock in their rate a week or two ago, on Monday U.S. Treasuries and MBs continued to decline in price. Blame it on the big positive surprise in the June ISM Manufacturing Report. May construction spending missed expectations but April’s growth was revised up by a larger amount. Fortunately for agency MBS volumes were light to start the session. But the 10-year note worsened .375 to yield 2.35%, while 5-year Treasury notes and MBS prices worsened between .125-.250, depending on maturity, coupon, and security.
This morning rates are a touch better after yesterday’s holiday. The usual Wednesday MBA application data for last week, which doesn’t really move global interest rates, was moved to be released tomorrow. Coming up is an Institute of Supply Management number of New York, Factory Orders for May, and the Federal Open Market Committee meeting minutes for the June 13/14 meeting. The 10-year starts the day yielding 2.34% and agency MBS prices are a few ticks (32nds) better.
My wife and I have very different body clocks. At sundown she is practically ready for bed. I, meanwhile, am a night owl.
Recently, after a long, hard workday, I announced around 8 p.m. that I was exhausted and ready to hit the sack. Suddenly my wife nearly leapt into my arms.
“Oh, honey,” she purred into my ear, “I just love it when you talk early to me.”
Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Does Everyone Want a Job?” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2017 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
- Dec. 31: Rates, the Fed, world economies, affordability, and the shutdown – all tied together - December 31, 2018
- Dec. 29: FEMA reverses flood ruling; cybersecurity notes; observations on general housing trends - December 29, 2018
- Dec. 28: Doc automation product; FHA & VA changes around our biz; Agency deals continue to share risk - December 28, 2018