http://mobile.nj.com/advnj/pm_29224/contentdetail.htm?contentguid=vnmFDvbb
#purchase #reverseloan
Monday, February 27, 2012
FHA announces UFMIP and MMI hikes
1.75% UFMIP now versus 1.00% and MMI will increase by another .10%
This is a pretty big jump and will eliminate some from pursuing FHA loans. When at all possible try to go conventional versus fha
This is a pretty big jump and will eliminate some from pursuing FHA loans. When at all possible try to go conventional versus fha
If Warren Buffet could buy a couple hundred thousand homes he would.
Great morning to watch Warren Buffet..He really is credit to our country. If we could vote for an economic president, I would nominate him. Warren spoke today about many things including the tax code, and more importantly to me personally, the housing market which is says has gone through a depression, not recession, and is still the only engine not firing in our economy. He stated that is it were feasible he'd buy homes at a record clip. Clearly he feels the combination of low rates and record home price drops makes this a good time to buy. While a 7% owner of Wells Fargo, Buffet feels the banks have done a good job in the US to shore capital and clear balance sheets. I love this guys plain sense approach to all things including his calls on the economy - We need more people to be vocal and GET the air time to express his beliefs. Great job today CNBC.
Thursday, February 23, 2012
FHA premiums set to rise
FHA is set to get even more expensive.
http://www.insidemortgagefinance.com/blogs/FHA-Plans-Premium-Hikes-1000019018-1.html
http://www.insidemortgagefinance.com/blogs/FHA-Plans-Premium-Hikes-1000019018-1.html
BofA - Drops Fannie Mae - No more sales to Fannie from BofA
Wednesday, February 22, 2012
Mortgage Recruiting the good and bad
I had a looooooonnnnggg conversation with a recruiter yesterday. No I am not necessarily looking for a new job so please don't drop a LinkedIn note, FB, Tweet Me, Poke Me or otherwise socially molest my inbox.
That being said, I think the gentleman from Hammerhouse called about a post on LinkedIn where I basically called out the mortgage recruiters out there. He wanted to explain that his business is about relationships. I agreed with him on most of his points. It's always a good idea to talk to people in related, connected or your personal industry. You just can't beat street knowledge.
Do I think they (recruiters) add value, yes. All they all honest, no. But I think Eric was yesterday. Let's face facts if you are in the mortgage business still, it's feast or famine for sales and marketing people. There are some doing very well, some not so well, and some are on there way out. Operations people have jobs, not making what they did, but salaries and benefits are why people are in operations. Sales takes balls - yeah I said it.
But, the fact is mortgage licenses have increased year over year. Everyone tells you what you want to hear. If you are new to the business you don't know different. If you are a seasoned vet, which I am (scary), then you know people will lie to you in this business. Some have said salespeople are the easiest close. And I think that may be true in many respects. But there is always truth even within a lie. The hard part is figuring our what is what.
Recruiters have contracts with specific companies and are therefore obviously trying to place you within a good organization. They get paid if you are successful and if you aren't then not only does the recruiter lose income, but potentially their reputation, by hiring "Clown shoes" (learned that one yesterday) instead of a seasoned vet with pipeline, marketing, and a working origination platform.
Stay tuned....Let's see what all these recruiters are really worth.
That being said, I think the gentleman from Hammerhouse called about a post on LinkedIn where I basically called out the mortgage recruiters out there. He wanted to explain that his business is about relationships. I agreed with him on most of his points. It's always a good idea to talk to people in related, connected or your personal industry. You just can't beat street knowledge.
Do I think they (recruiters) add value, yes. All they all honest, no. But I think Eric was yesterday. Let's face facts if you are in the mortgage business still, it's feast or famine for sales and marketing people. There are some doing very well, some not so well, and some are on there way out. Operations people have jobs, not making what they did, but salaries and benefits are why people are in operations. Sales takes balls - yeah I said it.
But, the fact is mortgage licenses have increased year over year. Everyone tells you what you want to hear. If you are new to the business you don't know different. If you are a seasoned vet, which I am (scary), then you know people will lie to you in this business. Some have said salespeople are the easiest close. And I think that may be true in many respects. But there is always truth even within a lie. The hard part is figuring our what is what.
Recruiters have contracts with specific companies and are therefore obviously trying to place you within a good organization. They get paid if you are successful and if you aren't then not only does the recruiter lose income, but potentially their reputation, by hiring "Clown shoes" (learned that one yesterday) instead of a seasoned vet with pipeline, marketing, and a working origination platform.
Stay tuned....Let's see what all these recruiters are really worth.
Wednesday, February 1, 2012
Newer Newest New Refinance Program brought to you by you?
In the immortal words of Dan Akroyd, 'Obama, you ignorant slut'. Clearly Obama is bright guy, well he can read the heck out of the teleprompter. But I struggle to find the reasoning behind announcing a mortgage refinance plan that has little to no possibility of being voted on and passed prior to the election?
Is it just so the average Joe thinks he 'cares'? It seems to me that throwing out unsupported programs to the general public during a speech has the appearance of catering to the mob mentality. Mind you the last plan with unlimited LTV has yet to kick off. Why, shockingly, the banks are scared s&^$less. They don't know what's coming next, and oh yeah, banks are going to pay for this new new program too! You thought $5 ATM was steep. According to Jamie Dimon the average bank account costs $300 a year for the bank - slap another tax on those banks and dang it you've got trickle down economics, where the increased tax and banks translate to increased borrowing and banking fees. Do you think the banks will take the hit?
It's 2012, the crisis really began in 2006/2007 and hit hard publicly in 2008. Isn't it a little late to go after the people who were responsible for the crisis? And those people are....well all of us. From the first time home buyer who HAD to have the bigger house; they couldn't stomach a condo! they deserve an SFR. To the mortgage broker who rather than just originate conforming loans (those loans were always available) decides to produce subprime loans, hearing there would be big returns, to the mortgage lender who set guidelines, pricing and loan terms along with the investment bankers who packaged them and sold them to funds who bought these hot potatoes on the hopes of high yield returns for their investors, or the rating agencies who rates this crap AAA. Well they all weren't rated that high, but clearly there appear to be conflicts looking back.
How a stated income loan for a fixed income elderly borrower with less than perfect credit was allowed to purchase with no money down with a loan that had a fixed rate for only 2 years and huge prepayment penalties along with a monster adjustment schedule and life cap is beyond me. Did I originate those, probably. I am no innocent victim here; nor am I am accomplice in a crime. The fact is we all drank the cool aid and believed the ride would go forever..reminds me of a time like the "Roaring Twenties", which was followed by a little period of time called the great depression.
My point, I hope is clear, we were all to blame, and it will happen again, maybe not in mortgage (but probably) but maybe tech again, energy, fertilizer, semi conductors, etc. There will always be bubbles. I guess the only thing you can hope for is you cash-out at the right time. Those are the people who deserve the credit and maybe even some of the blame.
You know come to think about it, its 2012, which mean the 20's are coming, by that time maybe we will experience some roaring growth again. Time will tell, but one thing is for sure, history repeats itself.
Is it just so the average Joe thinks he 'cares'? It seems to me that throwing out unsupported programs to the general public during a speech has the appearance of catering to the mob mentality. Mind you the last plan with unlimited LTV has yet to kick off. Why, shockingly, the banks are scared s&^$less. They don't know what's coming next, and oh yeah, banks are going to pay for this new new program too! You thought $5 ATM was steep. According to Jamie Dimon the average bank account costs $300 a year for the bank - slap another tax on those banks and dang it you've got trickle down economics, where the increased tax and banks translate to increased borrowing and banking fees. Do you think the banks will take the hit?
It's 2012, the crisis really began in 2006/2007 and hit hard publicly in 2008. Isn't it a little late to go after the people who were responsible for the crisis? And those people are....well all of us. From the first time home buyer who HAD to have the bigger house; they couldn't stomach a condo! they deserve an SFR. To the mortgage broker who rather than just originate conforming loans (those loans were always available) decides to produce subprime loans, hearing there would be big returns, to the mortgage lender who set guidelines, pricing and loan terms along with the investment bankers who packaged them and sold them to funds who bought these hot potatoes on the hopes of high yield returns for their investors, or the rating agencies who rates this crap AAA. Well they all weren't rated that high, but clearly there appear to be conflicts looking back.
How a stated income loan for a fixed income elderly borrower with less than perfect credit was allowed to purchase with no money down with a loan that had a fixed rate for only 2 years and huge prepayment penalties along with a monster adjustment schedule and life cap is beyond me. Did I originate those, probably. I am no innocent victim here; nor am I am accomplice in a crime. The fact is we all drank the cool aid and believed the ride would go forever..reminds me of a time like the "Roaring Twenties", which was followed by a little period of time called the great depression.
My point, I hope is clear, we were all to blame, and it will happen again, maybe not in mortgage (but probably) but maybe tech again, energy, fertilizer, semi conductors, etc. There will always be bubbles. I guess the only thing you can hope for is you cash-out at the right time. Those are the people who deserve the credit and maybe even some of the blame.
You know come to think about it, its 2012, which mean the 20's are coming, by that time maybe we will experience some roaring growth again. Time will tell, but one thing is for sure, history repeats itself.
Wednesday, January 25, 2012
Monday, January 23, 2012
Top Ten 7a Lenders in California
Here is the latest top ten SBA lender list for California. This list compiled from NAAGL shows the top lenders in California for 7a gross approvals for the 2011 year to date ending 09/2011
BankName BankStreet BankCity BankState BankZip # Loans AppvGross AppvSBA
CENTER FINANCIAL CORPORATION 3435 WILSHIRE BLVD, STE 700 LOS ANGELES CA 90010 254 230,642,800 191,588,020
WILSHIRE BANCORP, INC 3200 WILSHIRE BLVD LOS ANGELES CA 90010 253 183,096,700 153,569,240
AMERICAN HERITAGE HOLDINGS 7777 ALVARADO RD, STE 515 LA MESA CA 91941 741 160,761,300 132,478,560
SEACOAST COMMERCE BANK 678 3RD AVE, STE 101 CHULA VISTA CA 91910 204 151,010,600 127,518,085
NARA BANCORP INC 3731 WILSHIRE BLVD, STE 1000 LOS ANGELES CA 90010 129 130,198,000 108,235,225
HANA FINANCIAL, INC. 1000 WILSHIRE BLVD, SUITE 2000 LOS ANGELES CA 90017 127 125,580,000 108,045,200
CAPITALSOURCE BANK 633 W 5TH ST, STE 3300 LOS ANGELES CA 90017 93 105,033,000 87,728,550
HANMI BANK 3660 WILSHIRE BLVD PH-A LOS ANGELES CA 90010 71 88,580,700 66,771,000
PACIFIC CITY FINANCIAL CORPORA 3701 WILSHIRE BLVD, STE 401 LOS ANGELES CA 90010 143 87,379,700 72,365,575
OPEN BANK 1000 WILSHIRE BLVD, STE 100 LOS ANGELES CA 90017 83 84,555,400 70,079,390
BankName BankStreet BankCity BankState BankZip # Loans AppvGross AppvSBA
CENTER FINANCIAL CORPORATION 3435 WILSHIRE BLVD, STE 700 LOS ANGELES CA 90010 254 230,642,800 191,588,020
WILSHIRE BANCORP, INC 3200 WILSHIRE BLVD LOS ANGELES CA 90010 253 183,096,700 153,569,240
AMERICAN HERITAGE HOLDINGS 7777 ALVARADO RD, STE 515 LA MESA CA 91941 741 160,761,300 132,478,560
SEACOAST COMMERCE BANK 678 3RD AVE, STE 101 CHULA VISTA CA 91910 204 151,010,600 127,518,085
NARA BANCORP INC 3731 WILSHIRE BLVD, STE 1000 LOS ANGELES CA 90010 129 130,198,000 108,235,225
HANA FINANCIAL, INC. 1000 WILSHIRE BLVD, SUITE 2000 LOS ANGELES CA 90017 127 125,580,000 108,045,200
CAPITALSOURCE BANK 633 W 5TH ST, STE 3300 LOS ANGELES CA 90017 93 105,033,000 87,728,550
HANMI BANK 3660 WILSHIRE BLVD PH-A LOS ANGELES CA 90010 71 88,580,700 66,771,000
PACIFIC CITY FINANCIAL CORPORA 3701 WILSHIRE BLVD, STE 401 LOS ANGELES CA 90010 143 87,379,700 72,365,575
OPEN BANK 1000 WILSHIRE BLVD, STE 100 LOS ANGELES CA 90017 83 84,555,400 70,079,390
Friday, January 20, 2012
Purchase market
Well I can't make heads or tails on what these guys are really saying.
http://video.cnbc.com/gallery/?video=3000068596
That being said, houses are cheap as hell. There are many for sale, but rates are super cheap too? So does that make sense to buy today? Are you waiting for house prices to fall? But we also expect rates to eventually rise. But no one knows for sure.
You need to live somewhere and if you can buy today, you can cover a mortgage with rent today if you get the right mortgage with the right down payment.
If you feel confident in your own personal financial conditon - buy. If you are unsure, then hangtight...One thing is for sure with housing...pricing will NOT skyrocket anytime soon.
http://video.cnbc.com/gallery/?video=3000068596
That being said, houses are cheap as hell. There are many for sale, but rates are super cheap too? So does that make sense to buy today? Are you waiting for house prices to fall? But we also expect rates to eventually rise. But no one knows for sure.
You need to live somewhere and if you can buy today, you can cover a mortgage with rent today if you get the right mortgage with the right down payment.
If you feel confident in your own personal financial conditon - buy. If you are unsure, then hangtight...One thing is for sure with housing...pricing will NOT skyrocket anytime soon.
Thursday, January 19, 2012
You pay more for your mortgage so MBS prices improve? Thanks Government!?
From today's Rob Chrisman email. Clearly the change in pricing coming down the pipe is starting to wake up most of us originators. Frankly, this is no different than a business increasing prices to improve margins or cut losses. But in this case, since the government is there to prop up the market I am failing to see the point...Unless you read below.
Some Wall Street MBS analysts believe that it is likely that the g-fee needs to increase by another 15-45bp over the next two years (on top of the 10bp increase) if the FHFA changes g-fee level such that it reflects the risk of loss as well as the cost of capital allocated to similar assets by other fully private regulated financial institutions as required by H.R. 3630. The analysts note that conventional securities could be worth .375-.625 more because of g-fee increase's impact on current production, and older securities could be worth 1.5-2.0 points more since it will be more expensive to refinance, so fewer will do it, meaning that the securities are on the books longer.
Some Wall Street MBS analysts believe that it is likely that the g-fee needs to increase by another 15-45bp over the next two years (on top of the 10bp increase) if the FHFA changes g-fee level such that it reflects the risk of loss as well as the cost of capital allocated to similar assets by other fully private regulated financial institutions as required by H.R. 3630. The analysts note that conventional securities could be worth .375-.625 more because of g-fee increase's impact on current production, and older securities could be worth 1.5-2.0 points more since it will be more expensive to refinance, so fewer will do it, meaning that the securities are on the books longer.
Tuesday, January 17, 2012
Make no mistake, your payroll tax cut, that was extended, is being financed by an increase in Fannie Freddie Fees, or what's referred to as G Fees. The press noted 10 bps increase in cost...That is really nothing. The reality is the cost of a comparable rate today versus locking for 45 days can go up as much as 80 bps or .80% of your anticipated loan amount. There you go - enjoy you new tax.
G Fee Increase Read Here
G Fee Increase Read Here
Friday, January 13, 2012
Tuesday, January 10, 2012
MetLife - MetDead
No more MetLife mortgages...shocking.
http://www.bloomberg.com/news/2012-01-10/metlife-to-exit-origination-of-residential-mortgages-u-s-insurer-says.html
http://www.bloomberg.com/news/2012-01-10/metlife-to-exit-origination-of-residential-mortgages-u-s-insurer-says.html
Filed under...Obama trying to kill the mortgage market
Well the G fee increase of 10 bps is starting to trickle down to the consumer. Wells today announced changes to pricing due to the increase. To save $20 in payroll tax mortgage prices will rise up to 80 bps. Or slightly more than .785% of the loan amount. Put another way on a $400,000 loan the cost of a similar rate will cost almost $4000! Nice job congress!
Wells Fargo wrote "In order for a loan to meet the April settlements, it must close by Feb. 29. The G-fee increase will worsen prices by up to 80 bps depending on note rate." (An 8:1 ratio? Come on...) Continuing, "Wells Fargo Wholesale Lending is staggering the impacts of that increase by Rate Lock Period in an effort to offer lower rates to consumers in the market for as long as possible. On January 11 the G-fee increase will impact 45- and 60-day pricing. You must begin calling Priceline for Rate Lock Extensions rather than extending online for Conventional Conforming loans (extensions will not be available online for Conventional Conforming loans), on 1/31 the G-Fee increase will impact 30-day pricing, and on 2/13 the G-fee increase will impact 15-day pricing. Conventional loans locked prior to the dates above must fund by Feb. 29 - no standard extensions. If the loan extends, you will be charged 55 bps to cover the G-fee plus normal extension fees. Non-Conforming pricing is impacted since pricing is set as a spread to conforming base price."
Wells Fargo wrote "In order for a loan to meet the April settlements, it must close by Feb. 29. The G-fee increase will worsen prices by up to 80 bps depending on note rate." (An 8:1 ratio? Come on...) Continuing, "Wells Fargo Wholesale Lending is staggering the impacts of that increase by Rate Lock Period in an effort to offer lower rates to consumers in the market for as long as possible. On January 11 the G-fee increase will impact 45- and 60-day pricing. You must begin calling Priceline for Rate Lock Extensions rather than extending online for Conventional Conforming loans (extensions will not be available online for Conventional Conforming loans), on 1/31 the G-Fee increase will impact 30-day pricing, and on 2/13 the G-fee increase will impact 15-day pricing. Conventional loans locked prior to the dates above must fund by Feb. 29 - no standard extensions. If the loan extends, you will be charged 55 bps to cover the G-fee plus normal extension fees. Non-Conforming pricing is impacted since pricing is set as a spread to conforming base price."
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