THIS JUST IN: The National Association of Mortgage Brokers is mad as hell and isn't going to take it anymore. In particular, NAMB and its 5,000 members are ticked off at loan officer compensation rules that came about as a result of the Dodd-Frank bill. The trade group has launched an Internet petition and according to NAMB member Mike Anderson "this thing has gone viral." I will be upfront and honest with readers of this column: I have covered the issue a bit, but I'm by no means an expert on what's coming down the pike regarding LO compensation. Anderson told me that LOs can no longer be compensated on the "rates and terms of the loan," but yield spread premiums (YSPs) will still be allowed. But there appears to be certain restrictions on YSPs and it boils down to this (I think): once a YSP has been struck between the table funder and LO it cannot be altered again. It remains static from loan-to-loan. But there is a much larger issue at stake here, says Anderson and many others who I interviewed over the past few months, and it boils down to this: In no other industry in America (besides mortgage banking) does the government dictate how much someone can earn. For more on the issue see the Monday paper edition of National Mortgage News. Don't subscribe? Call: (800)221-1809…
And in case you're wondering who the LO compensation point man is at the Federal Reserve, it's Paul Mondor, a senior attorney (but many of you knew that already.) In a speech given in early 2010 Mondor assured NAMB members that it was not the intent of the Fed to ban YSPs. But like I said, YSPs are not the main issue anymore. One thing seems certain, though: by the time this is over many attorneys will make enough money to buy a second home, which will stimulate the vacation home market…
What's one of the chief complaints about the "new normal" in the mortgage market? Answer: That loan standards are way too tight. Earlier this week, the National Association of Realtors wrote to regulators, asking them to seek ways to increase the availability of credit to a broader range of qualified home buyers, including first-time home buyers. (Reporting by NMN's Brian Collins)…
DATA NOTICE: The end of the year is coming which means mortgage lenders, servicers, and vendors are busy making plans for next year. But where's the market headed and which top 100 firms dominate the business of lending and servicing? All those answers are available in the Quarterly Data Report, and our MortgageStats.com products. For more info on both drop an email to:
Not only is BlackRock committing $1 billion in capital to the jumbo mortgage business, it has obtained warehouse lines of credit that will help the money management firm (headed by MBS pioneer Larry Fink) leverage its business. A BlackRock official told me that in a few weeks it will begin buying jumbo loans on a correspondent basis. That story too is in Monday's NMN…
And in case you didn't know it, Union Bank of San Francisco, for many years now, has been quietly funding jumbo loans, putting the paper in its portfolio. The bank, says company production chief Craig Cole, has done very well with the product, and even uses loan brokers to source loans to the company…
If mortgage companies in North Carolina – in particular mortgage insurers headquartered there – thought the state was "pro-business" they may want to rethink that. (I believe Genworth's MI unit is headquartered there.) Some servicers are up in arms because the state is imposing new foreclosure-related fees. A memo written by The Caudle Law Firm of Charlotte notes that a new state Senate bill (1216) imposes a $75 fee on all mortgage servicers upon filing a pre-foreclosure notice for any type of loan. New registration fees are involved too. The new law also forces servicers to register troubled loans in a state database and send out new pre-foreclosure notices to borrowers. One specialty servicer told me, "This is a vindictive curse and it's not just North Carolina. It's Maryland and Florida too." Of course, foreclosures are not longer a "business issue." It's a political issue…
Atlanta Federal Reserve president Dennis Lockhart noted this past week that one reason U.S. companies may not be hiring is a lack of clarity about the cost implications of the recent health care legislation…
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MORTGAGE MEETINGS: I will be the keynote lunch speaker at a Federal Housing Finance Agency meeting in Washington in early December. Why me? Bono couldn't make it…
MORTGAGE PEOPLE: John Nichols has been named chief risk officer of capital markets at Fannie Mae. He joins the GSE from BlackRock.
DATA ANNOUNCEMENT: The new 3Q edition of the Quarterly Data Report will be out in a few weeks. Our research staff is busy finalizing surveys sent in by lender/servicers. Keep in mind that the 1Q and 2Q editions of the QDR are still available. The QDR provides industry-wide composite data on loan production and servicing and specific figures on the top 100, including wholesale. A new feature for the QDR is our ranking of the nation's top FHA lenders. If you're looking for jumbo production numbers try the Alternative Products Quarterly Data Report. For more info on both drop an email to:
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THE LAST WORD: Impac Funding is back in wholesale. Who's next? Drop me a line.
