Apache is functioning normally

July 21, 2023 by Brett Tams

Some hard-hit neighborhoods in Southern California have seen home prices fall below 1989 levels, according to an article in the LA Times.

In 14 Southland Zip Codes, mostly desert communities on the outskirts of Los Angeles, median prices have fallen below levels recorded in April 1989, according to statistics from DataQuick.

They include cities like Lancaster, Palmdale, Hemet, Barstow, Desert Hot Springs, Victorville, Santa Ana and Oxnard.

In some parts of Palmdale, home prices are off 44.2 percent compared to 1989, and some spots in nearby Lancaster are down more than 35 percent.

Of course, the Southland median is actually much higher, clocking in at $247,000 in April, near the 2002 level.

But the median isn’t really a reflection of overall home prices, as most of the homes selling these days are at the lower end of the pricing spectrum, in foreclosure-ridden hotspots in the six-county area.

These areas also happen to be home to countless new housing developments, many of which are still being built despite being filled mostly with foreclosures and very few homeowners.

That’s the problem with areas on the fringe, where land is plentiful and obtaining building permits is relatively easy; who’s to say a builder doesn’t come in and attempt to build another 1,000 new homes next to yours?

Home prices closer to Los Angeles remain much higher than they appear, as a lack of space keeps supply in check, and new building permits aren’t so easy to acquire.

Of course, much of the unprecedented appreciation of the last few years has been wiped out, but things aren’t as bad as the median price implies.

Source: thetruthaboutmortgage.com

Apache is functioning normally

July 20, 2023 by Brett Tams

Whether you got a new job and are looking for somewhere to stash your paycheck, or are just looking for a new bank that better meets your needs, you may have spent some time considering where to open up a bank account.

While there are many private banking options to choose from, not all of them effectively meet customers’ needs. Many Americans are interested in consumer-friendly banks that are accessible and have low or no fees, while others look for banks that have local roots or more ethical behavior than bigger nationwide banks. Still, other Americans are unbanked, meaning that they don’t have access to any checking or savings accounts with a bank or credit union.

What’s Ahead:

What is public banking?

Representatives Rashida Tlaib and Alexandria Ocasio-Cortez have recently introduced legislation that could provide a promising alternative to traditional banks.

The Public Banking Act would establish a grant program that would allow for the formation of state and locally administered banks. While this act wouldn’t establish new public banks in and of itself, it would make it easier for public banks to form and to become insured by the FDIC.

These public banks would operate as nonprofits, and wouldn’t charge any monthly maintenance fees or require minimum deposits. That would make them accessible to citizens who find themselves shut out of the current banking system.

Since they wouldn’t be as focused on turning a profit as traditional banks, public banks could also provide lower interest rates for small businesses and public infrastructure projects, investing in local communities and cutting out Wall Street middlemen.

How does public banking work?

Public banking would function as a public service, like post offices or fire departments. In fact, in many countries, public banking is often directly tied to the postal system. The United States even had its own postal banking system from 1911 to 1966.

Today, there is one public bank operating in the United States, the Bank of North Dakota.

Unlike privately owned banks, public banks aren’t beholden to shareholders or required to turn a profit at the expense of ordinary consumers. Instead, these banks are able to charge lower fees and lend money at lower rates to local consumers and businesses.

Public banks can receive deposits from local and state governments in the form of tax revenue and other government income, and can also partner with existing local banks to fund a variety of projects.

How public banking could affect your finances

For many people, banking with a public bank would be pretty similar to banking with a traditional for-profit bank. Some of the potential benefits of public banking could include providing access to banking for more Americans, investing in local and community projects, and effectively delivering relief funds and government payments.

Helping unbanked and underbanked Americans

As of 2019, approximately 7.1 million American households were unbanked, meaning that no member of the household had a checking or savings account with a bank or credit union. For many Americans, high minimum deposit requirements prevent them from opening an account, while others cite excessive fees and a lack of trust in private financial institutions as reasons why they do not have a bank account. When money is tight, these Americans often rely on alternative services, like payday loans or pawn shops, with high fees and punishing interest rates.

Public banks would charge no monthly maintenance fees and have low or no minimum deposit requirements, making them accessible to many Americans who currently fall through the cracks of the private banking system. Public banking would also provide an alternative for Americans who have bank accounts but are currently dissatisfied with their bank or unable to qualify for other financial products.

Investing in local communities

Because public banks would not be compelled to pursue sky-high profits, they could offer loans at low interest rates to fund local businesses and public infrastructure. These could include projects like affordable housing and renewable energy. Some public banks, like the Bank of North Dakota, also offer low-interest loans to students and other specific groups.

Public banks would cut out the middleman and keep funds local, instead of profiting national banks, executives, and shareholders.

Effectively distribute relief funds

During the pandemic, millions of Americans were eligible for relief funds and stimulus checks to help them weather the turbulent economic times. While some Americans were able to receive funds directly to their bank account through direct deposit, others were mailed paper checks they had to cash, often accompanied by high check-cashing fees. Still, other Americans waited weeks or months for their funds to arrive, during a time when money was tight.

Public banks would be one way to easily and effectively distribute funds to Americans, without relying on private institutions. They would expand access for Americans without bank accounts and would prevent predatory services from taking a chunk out of much-needed relief funds.

Better for the environment

Another way public banks would operate differently than private banks is in their effect on the environment. The Public Banking Act would prohibit public banks from investing in fossil fuel projects, and would instead provide public banks with the capability to issue low-interest loans for environmentally-friendly projects.

This puts public banks in stark contrast to private banking behemoths, who have invested over 2.7 trillion dollars in fossil fuels since 2016, according to a report from the Rainforest Action Network.

A public alternative to big banks

Public banks wouldn’t replace big banks; instead, they’d provide an alternative for consumers dissatisfied with the status quo. This would give Americans the ability to choose between for-profit banks and local, community-driven public banks.

In some cases, public banks could even partner with existing local banks to more effectively distribute funds. Public banking wouldn’t solve all of the financial industry’s problems, but it could provide a more ethical alternative to the current options.

Drawbacks of public banking

While public banks attempt to solve many of the problems of the current banking system, they’re not entirely without flaws. Some potential drawbacks to public banks include potential lack of oversight and insufficient funds, as well as the inherent risk that all banks, public or private, face when it comes to lending money that may not be paid back.

Alternatives to public banking

For now, public banks still aren’t an option for the vast majority of Americans. However, there are some banking options that beat the competition when it comes to consumer-friendly policies, low fees, and ethical behavior.

Credit unions

Credit unions share some similarities to public banks in that they aren’t beholden to shareholders and executives, and often have local roots and programs that benefit the community. Like public banks, credit unions are not for profit, but instead of being owned and operated by local or state governments, credit unions are cooperative institutions owned by members.

Credit unions also often feature lower fees and rates than for-profit banks. Some federal credit unions even offer Payday Alternative Loans, which allow cash-strapped consumers to borrow money at lower rates than predatory payday loans.

Low-fee banks

In recent years, consumer-friendly, low-fee banks have proliferated as an alternative to big banks with exorbitant rates and fees. Many of these banks primarily operate as online banks, with simple websites and mobile apps designed to make navigating the banking process easier for consumers.

Ethical banks

Many big banks make harmful investments in areas like fossil fuels and for-profit prisons. While these investments are good for a bank’s bottom line, informed consumers may be interested in more ethical alternatives.

Companies like Aspiration, Amalgamated Bank, and Beneficial State Bank are B Corp certified, which means that they meet high standards for social and environmental performance, transparency, and accountability.

Some banks, like Sunrise Banks and First Green Bank, are members of the Global Alliance for Banking Values, which is a network of banks around the world that are committed to community investments and driving positive change.

Still, other banks are designated as Community Development Financial Institutions, or CDFI. These banks are dedicated to providing banking access for low-income and marginalized individuals and communities. Banks like City First Bank of DC, Southern Bancorp, and VCC Bank are all CDFIs.

Summary

While the Public Banking Act is still only a bill, it represents a promising alternative to traditional banking for millions of Americans. This piece of legislation would also complement other related policy proposals, such as postal banking and the Green New Deal. In the meantime, there are still a variety of banking options with low fees and ethical investment practices for consumers who qualify.

Apache is functioning normally

July 20, 2023 by Brett Tams

The much anticipated and hotly contested homebuyer tax credit is officially back on, though with some big changes.

Borrowers applying for an FHA loan will now be required to come up with a minimum 3.5 percent down payment, but will be able to use the tax credit for additional down payment or for other closing costs.

Originally, the FHA had it worked out to where potential homebuyers could use the tax credit for their entire down payment, though critics seemed to think that resembled questionable seller paid down payment assistance loans too closely.

“Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit,” HUD Secretary Shaun Donovan said in a statement.

“We believe this is a real win for everyone,” he said. “Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation’s housing market.”

“Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders.”

The FHA will keep close tabs on the program, collecting the names and employer identification numbers of each organization providing the service along with the associated fees and charges.

That said, homeowners should be aware of potential mortgage scams and carefully compare benefits and costs (more than 2.5% of the anticipated credit is considered excessive) when seeking out monetization of the tax credit.

“What we’re doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”

Benefit for communities, or benefit for homebuilders?

Oh, a couple of paragraphs later Donovan mentions that the National Association of Homebuilders said the tax credit will help stimulate 160,000 home sales across the nation, so go figure.

Source: thetruthaboutmortgage.com

Apache is functioning normally

July 19, 2023 by Brett Tams

CFO, Compliance, Cap Mkts; POS, AI, REO, 2nd Lien, Verification Products; Housing Stats

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CFO, Compliance, Cap Mkts; POS, AI, REO, 2nd Lien, Verification Products; Housing Stats

By:
Rob Chrisman

43 Min, 0 Sec ago

Think mortgage math is complicated? Many in the nation are focused on air conditioning. Why is it measured in tons? It harkens back to the days of using ice, and a “ton” measures how much heat, removed by the system, would be needed to melt 2,000 pounds, or one ton, of ice in a 24-hour period. The result is then expressed in BTUs per hour. It takes 288,000 BTUs to melt a ton of ice in 24 hours, or 12,000 BTUs per hour. 1 BTU/hr. = 0.00029307107 kWh. And the average residential electricity rate in the U.S. is about 23 cents per kilowatt-hour (kWh). When you see your utility bill in the mail, don’t think about me. Maybe the math in a company acquisition is more straightforward. I mention this since ICE and Black Knight have agreed to sell Optimal Blue to Constellation Software in an effort to get regulatory approval for their merger. Constellation Software is already buying Empower and will purchase OB for $700 million paid for in $200 MM cash and a $500MM promissory note. Meanwhile, plenty of branch-level acquisitions are occurring that don’t make the headlines and will continue. (Today’s podcast can be found here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services to the mortgage industry for almost four decades. To experience how Richey May can help you transform your mortgage business, visit richeymay.com. Hear an interview with Seth Sprague and James Brody on the wave of loan-repurchase requests from Fannie Mae and Freddie Mac that represents another threat to lenders’ balance sheets.)

Lender and Broker Software, Services, and Products

With first mortgage rates rising and inventory dropping to record lows, many lenders are looking to turn up the volume on their HELOC business. Many of these lenders have begun aggressively advertising these solutions, many even announcing “HELOC Promos” on billboards, marques, and in digital advertising. In other words, the HELOC market is starting to heat up, and your competitors are beginning to make a big grab for this business. Don’t let them get to your borrowers before you do! With Symmetry, you can offer your borrowers one of the best, most competitively priced HELOC options on the market. Let Symmetry help you present this solution to your borrowers before they go somewhere else. Contact your Area Manager today!

Verus Mortgage Capital recently launched a Closed End Second Lien Mortgage program to help lenders capitalize on the more than $18 trillion of tappable home equity in the U.S. Verus’ new program is the perfect solution for borrowers who don’t want to refinance their home but want to take advantage of the equity they’ve amassed. In this competitive environment, non-QM can be a new revenue channel for originators, one that enables you to meet the needs of borrowers who need more flexibility, people with nontraditional income, those who are investing in properties, foreign nationals or borrowers seeking an interest-only payment option. Interested in serving more applicants with non-QM? Meet with Verus at the Western Secondary Market Conference Aug. 21-23 to learn more. Contact Jeff Schaefer, EVP – National Sales at 202-534-1821.

The Work Number® can help streamline processes and provide greater value to income and employment verification processes. Wider data coverage can help streamline lending processes, and the standard Mortgage VOE and Mortgage VOI solutions from The Work Number are now available with the option for a receipt. The Work Number is the largest commercial repository for consolidated income and employment data with access to 618 million INSTANTLY returned records, updated each pay cycle, provided directly by employers and payroll providers. Lenders and brokers have a choice: access The Work Number directly from Equifax OR through our pre-built integrations with over 60 Point of Sale (POS) and Loan Origination Systems (LOS). Gathering all of the necessary information about potential borrowers through your LOS or POS is quick and efficient and can eliminate the need to swivel back and forth between systems, juggling multiple logins.

BSI Financial Services extends Sagent partnership for seven years! Sagent is thrilled to announce the recent expansion of its partnership with BSI Financial Services (BSI) for another 7 years. As BSI looks to grow its servicing operation to 1M loans, Sagent will continue to power BSI with its configurable, cloud-based platforms including LoanServ, TEMPO, Datascape+, and LoanBoard. BSI’s great reputation and growth is because they’ve mastered things like automating complex tasks, solving customer issues fast, and adapting in real-time to regulator and investor needs. Sagent takes this crucial role in helping BSI very seriously, and they are excited to continue building with the BSI team! Read Sagent/BSI partnership details here.

“According to ATTOM, foreclosure filings were up 7% in May and 14% from a year ago. Managing an REO portfolio requires a strategic and systematic approach to ensure effective management and maximize returns. The team at Consolidated Analytics delivers one of the most comprehensive asset management solutions to streamline your REO process and satisfy the most stringent investor and client requirements combining a seasoned team, advanced tech and management platforms, and access to a nationwide network of REO professionals. Our team delivers from post-foreclosure through marketing and final disposition with proven strategies to streamline the asset management process, meet SLAs, accelerate turn times, and maximize returns. Contact [email protected] to help make more informed decisions and achieve portfolio management goals.”

There are so many things we’d rather put off in life: stumbling to the gym at 5 a.m., eating our broccoli, preparing tax returns. But avoiding pain in the present doesn’t set us up well for the future. It’s the same for lenders looking to make a strong rebound when today’s cold originations market starts heating up again. Black Knight held discovery sessions with dozens of banks, credit unions and independent mortgage bankers who all agreed: the time to invest in your mortgage technology is now. Click here to read why competitive lenders will likely be the ones who seize this market moment and prepare themselves now to be ready for the future, even though it might be uncomfortable in the short term. Then contact Black Knight when you’re ready to see how you can be prepared for whatever the market throws at you next.

Podcast Alert! Tune into HousingWire’s Housing News podcast featuring Wolters Kluwer’s VP of Banking Compliance Solutions Simon Moir and HousingWire’s Clayton Collins. With more than 20 years of experience in the banking and financial services industry, Simon shares valuable insights on the relationship between AI and regulatory powers, and the changing dynamics in the fintech world and investor strategies. Don’t miss this key conversation exploring the future of technology, regulations, and finance. Tune in now for valuable industry perspectives.

When Premium Mortgage Corporation set out to replace its Point-of-Sale system, Premium chose LiteSpeed by LenderLogix. Amazing borrower experience. Immediate ROI. Seamless integration into Encompass® by ICE Mortgage Technology™. The best part, the results speak for themselves: Check out its experience here.

Capital Markets

The secondary markets are incredibly complicated, especially what happens “behind the scenes.”

Don’t forget that MISMO, the real estate finance industry’s standards organization, announced that the Private Label Residential Mortgage-Backed Securities (PL RMBS) Specification has reached “Candidate Recommendation” status, which means that it has been thoroughly reviewed by a wide range of organizations and industry participants and is available for use across the industry and should lead to a more efficient process for private label residential mortgage-backed securities. The MISMO PL RMBS Specification provides a standard and defined set of data that can be used by the rating agencies to help determine the ratings applied to securitizations. The tools are designed for parties that support the submission of the current ASF and supplemental mapping specifications to the rating agencies. They will provide lenders, rating agencies, third-party reviewers, and technology solution providers with the necessary information to update their systems with the revised data from the MISMO PL RMBS or flat file layout.

And while you’re not forgetting, last month Ginnie Mae announced, in All Participants Memorandum (APM 23-09), that it is extending the use of electronic signatures in conjunction with Remote Online Notarization (RON) to include power of attorney (POA) mortgage documents. All Ginnie Mae Issuers can now use RON to execute POA documents when necessary to obtain Single-Family government insured or guaranteed loans on “paper” mortgages.

By extending digital capabilities to include POA mortgage documents, Ginnie Mae is modernizing its Mortgage-Backed Securities (MBS) program with flexibility that benefits our Issuers and borrowers. Issuers must continue to follow all insuring or guarantying agency guidance regarding POA eligibility and requirements, including the circumstances under which a borrower is permitted to use an attorney-in-fact to obtain Single-Family government insured or guaranteed loans. By using RON for POA, Issuers are subject to the electronic signature and notarization requirements outlined in chapter 24 of the MBS Guide. Please refer to APM 23-09 for more information regarding the requirements.

In bond market activity, which changes every day, bets are growing that central banks are winning their battle against inflation without driving economies into deep recessions. Goldman Sachs lowered its probability of a U.S. recession over the next 12 months to 20 percent from 25 percent yesterday, and ECB Governing Council member Knot suggested that additional rate hikes after next week are uncertain. Investors also received a weaker than expected Retail Sales report for June (actual 0.2 percent, expected 0.5 percent), with gasoline a big driver of the decline. Figures are not adjusted for inflation, and on a year-over-year basis, sales rose 1.5 percent. We’ve also received better-than-expected Q2 earnings from big banks such as JP Morgan, Citigroup, and Wells Fargo. Manufacturing took a step back in June, though Treasuries and MBS prices showed no significant response to that below-consensus June Industrial Production report (actual -0.5 percent, expected flat).

“Risk-on” sentiment has taken hold over the last couple of weeks, meaning investors are favoring stocks following softer-than-anticipated consumer and producer price data in June that has optimism abounding over inflation continuing to soften and the economy avoiding a recession. CPI dropped precipitously to a 3.0 percent annualized rate in June from 4.1 percent in May. Producer price increases are also slowing with core PPI up 2.6 percent from one year ago. Core CPI remains at a still robust annualized pace of 4.8 percent, albeit down from 5.3 percent in the previous reading. Yes, inflation is still above the target of 2 percent, but bets are that the 25-basis point rate hike on July 26 that lifts interest rates to a 22-year high will be the last as the Fed reaches a terminal target rate of 5.50 percent. Then begins the waiting game, as the tight U.S. labor market is key for long-run inflation considerations.

Today’s economic calendar kicked off with mortgage applications from MBA. Including an adjustment for Independence Day, Mortgage applications increased 1.1 percent from one week earlier, which was not entirely unexpected following last week’s Treasury rally after both CPI and PPI came in softer than expected. During the reporting period, the 10-year yield fell more than 20 basis points, with the 30-year mortgage rate tumbling even more (25 basis points, to 6.89 percent, according to Mortgage News Daily).

We’ve also received housing starts (-8.0 percent at 1.434 million) and building permits for June (-3.7 percent to 1.44 million). Expectations were for 1.455 million starts and 1.525 million permits versus 1.631 million and 1.496 million previously. Later today brings a Treasury auction of $12 billion reopened 20-year bonds. We begin the day with Agency MBS prices about .125-.250 better than Tuesday evening, the 10-year yielding 3.73 after closing yesterday at 3.79 percent, and the 2-year at 4.70.

Employment

While most people are struggling in this market, there are still some lenders growing and adding to their leadership team! A national IMB located in the Dallas/Fort Worth Metroplex is looking to add a Chief Financial Officer, a Head of Capital Markets, and a Chief Compliance Officer with Ginnie Mae/Agency securitization experience to its team. Must have direct experience working in a securitization heavy environment. NonQM is a plus. If you are interested, please email Chrisman LLC’s Anjelica Nixt to forward your confidential note/resume.

“Job boards and careers pages can produce applicants, but are they quality candidates? Our team at Pezian Search Group are Talent Experts within the Mortgage, Banking, Credit Union, Title & Escrow and Financial Services spaces from the C-Suite to the Call Center, Front Office, Bank Office, Operations, Sales, Marketing, and everything in between. That means that we understand the industry and take the time to properly discuss important items with candidates such as backgrounds, skill sets, experience, growth objects and more. This ensures that there is a long-term fit and that we are providing our nationwide network of Clients quality candidates every time. We’ve set ourselves apart from our competition, career pages and the traditional job boards, all while offering a full satisfaction guarantee. To learn more, email our team, follow us on LinkedIn, and review the opportunities that we currently have available throughout the country.”

“Micah Parsons, linebacker for the Dallas Cowboys and the 2021 NFL Defensive Rookie of the Year, recently signed a two-year partnership with SWBC to join us as a spokesperson and brand ambassador. He is a natural fit for SWBC, as his commitment to excellence and drive to make a difference within the community align with our goal of inspiring hope where we live and lend. Micah is an exceptionally talented individual, and we’re excited to work with him to help hopeful buyers tackle their homeownership goals. SWBC Mortgage has big goals and is looking for those who can help us reach them. We combine innovation with personal interaction, empowering our loan officers to serve the communities where they live and lend. Contact us to learn more about how our unique setup helps maintain LO compensation and pricing. Contact James Clark, Director of Strategic Growth or visit us here.

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Source: mortgagenewsdaily.com

Apache is functioning normally

July 19, 2023 by Brett Tams

CFO, Compliance, Cap Mkts; POS, AI, REO, 2nd Lien, Verification Products; Housing Stats

This website requires Javascrip to run properly.

CFO, Compliance, Cap Mkts; POS, AI, REO, 2nd Lien, Verification Products; Housing Stats

By:
Rob Chrisman

42 Min, 31 Secs ago