Wednesday, June 5, 2013

OriginationPro update

OriginationPro - Power Tools for Mortgage Professionals. Toll Free: (800)581-5678.
Originating Self-Employed Applicants & Analyzing
Tax Returns
Are Underwriters Changing Your Income Calculations?
Wednesday, June 12
2:00 pm to 3:30 pm EDT
CLICK HERE
To Be Registered
Registration free with free trial of OriginationPro Marketing System. If you register for the trial, you will be registered for the webinar automatically.

The days of liar loans are long gone and the new Qualified Mortgage Regulations assure they will stay gone. Yet, with the slower economy more and more of your clients are self-employed and have complex tax returns. Tighter lender guidelines and more self-employment? Are you going to be able to service this growing sector?

Did you know that those that make more money and purchase larger properties are much more likely to be self-employed? Loan officer compensation guidelines make larger loan sizes one of the ways remaining to make a better living. It is time to learn how to deal with these loans and even how to bring in prospects that have complex income situations and need larger loan amounts.

This version of our regular Self-Employment Webinar will include an actual case with tax returns and cover letters so that we can demonstrate the concepts we teach.

Dave Hershman has written seven books for this industry and has been teaching about originating self-employment and analyzing tax returns for 30 years. Don't miss this webinar!
****************************

Credit Repair Resources

Finally! A compliant credit repair company you can rely upon for advice and service. Credit Repair Resources was just voted the best small credit repair company in America! Owned by a Consumer Credit Attorney for maximum effectiveness as well as service.

Contact: Chad Kusner,
Credit Repair Resources
888.927.7760
chad@crr760.com
www.crr760.com


May 28, 2013 Why Are Rates Rising -- Part Two
How to Meet Realtors
Appraisals Getting Easier?
More Regulation of Reverses on the Way
New MI Company
Why Are Rates Rising -- Part Two
Several weeks ago we spoke about the reasons interest rates have been on an uptrend for the most part this year. The first thing we want to make clear is that the reasons have not changed. However, because we experienced a downtrend for a few weeks in the midst of the uptrend, there is reason for additional analysis in this regard. What were these reasons? There were basically three. Rates were bouncing back from ridiculously low levels reached at the end of last year when the economy slowed down and the budget crisis threatened to shut down the government completely. Secondly, the economy seemed to be bouncing back from the pause of late last year. Thirdly, the Federal Reserve Board was making noise about ending their purchases of Mortgage Backed Securities and an ending date for stimulus activity known as Quantitative Easing (QE).
The next question is--why did the rising trend stop? It appeared that the economy was not bouncing back from the pause as quickly as we thought. Weak data included the employment report for March and there was continued negative news from Europe and elsewhere overseas. Now, several weeks of rates drifting back down has been erased in a matter of days in the wake of a stronger employment report for April and continued strong data from the real estate markets. The additional perspective? For one, the employment reports are being watched closely and we have another report which will be released on Friday. Obviously, this report has the ability to turn the markets in either direction with a surprise in the data. Secondly, we can see that rates have become very volatile. Volatility is indicative of a market which has hit bottom. The conclusion? While we can't tell you where rates will go from here, all along we have indicated that record low rates would end and when they do, we will get no warning. Our advice is this--don't focus where rates will go, but focus on where rates are. They are still historically low and if you want to borrow money to finance a house, car or business--now is the time to get it done.
Rates rose sharply in the past week. Freddie Mac announced that for the week ending May 20, 30-year fixed rates rose from 3.59% to 3.81%. The average for 15-year loans increased to 2.98%. Adjustable rates were more stable, with the average for one-year adjustables falling slightly to 2.54% and five-year adjustables climbing slightly to 2.66%. A year ago 30-year fixed rates were at 3.75%. Attributed to Frank Nothaft, Vice President and Chief Economist, Freddie Mac, "Fixed rates followed long-term government bond yields higher following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance. Improving economic data may have encouraged those views. For instance, the Conference Board reported that confidence among consumers rose in May to its highest level since February 2008. Meanwhile, the S&P/Case-Shiller® 20-city composite index for March rose to its highest reading since November 2008 (seasonally adjusted). All 20 cities had positive monthly gains, led by a 3.2 percent increase in Las Vegas." Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.
Current Indices For Adjustable Rate Mortgages
Updated May 31, 2013

Index
May 30
April
6-month Treasury Security
0.07%
0.09%
1-year Treasury Security
0.13%
0.12%
3-year Treasury Security
0.49%
0.34%
5-year Treasury Security
1.01%
0.71%
10-year Treasury Security
2.13%
1.76%
12-month LIBOR
0.717% (Apr)
12-month MTA
0.169% (Apr)
11th District Cost of Funds
0.967% (Mar)
Prime Rate
3.250%
The Ask The Expert Column is sponsored by NACSO. NACSO –- National Association of Credit Services Organizations -- advocates for strong industry standards, consumer protection, and ethical business practices for the credit repair industry. Click Here to read the latest NACSO Blog Article: Negotiating Collections.
What is the best way to meet Realtors? My business was almost 100% refinances the past two years and now that rates are rising I am afraid that I will be shut out of the purchase market as refinances slow down. Barbara from Florida
Let me start by telling you what not to do. I am not a big believer of cold calling on real estate offices to meet real estate agents. What should you do? Networking is the best way to meet anyone. You can meet as many Realtors as you would like through your personal sphere. Everyone you know well should know a Realtor or two. You can even meet Realtors through your refinance pipeline. Ask the applicant who sold them the home and whether they like and respect that Realtor. From there you should be able to get a personal introduction. Warm calls are always better than cold calls. Dave
Do you have a reaction to this commentary or another question you would like answered? Email us at success@hershmangroup.com.
Breaking News: The recent nomination of Congressman Mel Watt, D-N.C., has left investors wary about the future state of the finance market. The biggest concern is the recent revival of a push to change the Home Affordable Refinance Program eligibility date forward to capture recently made loans, said analysts for JPMorgan Chase in their latest report. However, the odds of this data changing are dependent on a variety of issues, specifically the probability that a change to Federal Housing Finance Agency leadership even occurs at all. Furthermore, the probability that the new current acting director — assuming it’s Watt — would then move to change the date. "We would estimate that the odds of Mel Watt being confirmed are at least 50%," JPMorgan analysts explained. They added, "In fact, it may be more of an issue of timing and/or the willingness of the administration to provide a government-sponsored enterprise reform plan." Meanwhile, given that Watt was nominated by the Obama Administration, and that the administration appears to be in favor of changing the HARP eligibility date, it’s likely that Watt would also support such a change, the report said. To be clear, these odds are extremely difficult to determine and the timing is unclear as well on a new director’s potential desire to examine the issue, and the administration’s efforts to purse broader legislative changes on refinance programs. Source: HousingWire Editors Note: If this date is changed, does that mean the FHA Streamline Refinance Program date will change
Consider this one more sign that the housing market is heating up: Appraisers are putting higher values on homes again, allowing for more deals to go through. During the housing bust, sales were often derailed by low-ball appraisals that fell far shy of a home's selling price. For example, if a home cost $500,000 and required a 20% down payment of $100,000, the buyer would need to finance $400,000. But if the appraiser valued the home at $450,000, the buyer would only be eligible for a $360,000 loan -- making the home too costly for some buyers. But now, as home prices climb and housing inventories shrink, appraisers are valuing homes at or above their selling prices, according to Lawrence Yun, chief economist for the National Association of Realtors. Between 2008 and 2010, appraisals for more than a third of Seattle-based real estate agent Michael Ackerman's sales came in below the selling price. So he had to get creative. "I started pulling out the key boxes at the homes so the appraisers couldn't get in," said Ackerman. "They had to call me to let them see the home. I would bring a packet of comparables along and explain what I used to price the home." But now, with home prices posting such strong gains, those strategies may not be necessary anymore. "I've closed 15 homes so far this year and none of the appraisals have come in below the selling price," said Ackerman. Source: CNN/Money
Rep. Maxine Waters (D-CA), Ranking Member of the House Committee on Financial Services, reintroduced the FHA Emergency Fiscal Solvency Act. The legislation, co-sponsored by Rep. Michael E. Capuano (D-MA), Ranking Member of the Subcommittee on Housing and Insurance, is designed to strengthen FHA and to help ensure its long-term solvency. In recent years, the agency has stepped into the void, providing crucial liquidity as private firms have retreated from writing mortgage insurance policies, particularly for key groups such as first-time homebuyers. The provisions of the bill give FHA more flexibility to take action against loan originators who engage in faulty underwriting or who have high loan losses. Additional measures include authorizing the agency to require indemnification for improperly written loans. “This legislation takes an important step towards improving the financial stability of the FHA," said Rep. Waters. "Over 400 members of the House voted for an identical bill last Congress, which was drafted in the Financial Services Committee in a collaborative manner and on a bipartisan basis. Working with the Administration, we plan on drafting additional legislation to give FHA more tools to bolster its insurance fund. But this is an important first step, and should be considered immediately, given that it was supported on such an overwhelming, bi-partisan majority in the last Congress. It is time to move beyond discussion of this issue and take action.” Rep. Capuano said, "The House passed legislation reforming the Federal Housing Administration last year with the bipartisan support of 402 members. There is clear agreement on the need to provide the FHA with additional risk management tools, increased transparency and enhanced reporting requirements. Let's move forward now with what we agree on and work together to make additional improvements." Source: National Mortgage Professional Daily
Armed with more than a half billion dollars in capital and easy access to the human resources of a former mortgage insurance giant, a new insurer has issued its first policies. National Mortgage Insurance Corp. said earlier this year that it had been approved by Fannie Mae and Freddie Mac to insure agency conventional loans. Fannie will start accepting loans on June 1 with a Jan. 16 or later note date, according to an announcement, while Freddie began accepting National M.I.-insured loans as of April 1. A Jan. 17 statement said that parent NMI Holdings Inc. had raised $550 million in private capital for the business. In addition to the capital resources, the Emeryville, Calif.-based company has access to current and former employees of nearby PMI Mortgage Insurance Co., which is being operated in runoff mode by the Arizona Department of Insurance as receiver. National M.I. was founded in 2012 by former PMI Capital Corp. president Bradley Shuster, who serves as president and chief executive officer in the current organization, and Jay Sherwood, National M.I.'s chief financial officer. On Wednesday, National M.I. reported that it issued its first insurance commitments in April, "officially marking its entry into the private MI business." "National M.I. has spent the last several months ramping up its sales and operations teams with experienced veterans of the MI business," the announcement stated. "The company will continue hiring at its headquarters in Northern California and across the country." In addition, a hundred master policies have been approved with lender customers. The MI company claims to have the capacity to insure more than $30 billion in home loans. Approval has reportedly been obtained from insurance regulators in 46 states and Washington, D.C., and National M.I. said it expects to secure approval from the remaining four states in the near term. Source: Mortgage Daily
Housing and Urban Development secretary Shaun Donovan is pressing House and Senate Banking leaders for the authority to regulate FHA’s reverse mortgage program through the issuance of mortgagee letters. The secretary told House appropriators that it can take up to 18 months to issue a final rule under the regulatory process that requires public notice and comment. However, HUD could act more quickly to make important reforms and stem losses to the Home Equity Conversion Mortgage program through the issuance of mortgagee letters. The HECM program is projected to report a loss of $5.4 billion for FY 2013, which ends Sept. 30. “Without this new authority, we will have to take more dramatic steps on pricing and other things—that will both protect the fund but also I fear could have a negative impact on seniors,” Donovan testified. “So it is critical that we get this done before the end of the fiscal year,” he added. HUD has already acted this year to suspend originations of a fixed-rate full-draw HECM product that is responsible for most of the defaults and losses to the FHA mortgage insurance fund. Source: National Mortgage News

No comments:

Post a Comment