Archive for the 'Loan Officer News' Category
Mortgage Rates Hold Near Lows
July 5th, 2011
Written by Frost Mortgage
Mortgage interest remained near annual lows last week, with the 30-year fixed rate averaging 4.51 percent compared to the year’s low of 4.49 percent reached three weeks ago. The 15-year fixed rate, meanwhile, stood fast at 3.69 percent after hitting its 2011 low of 3.47 percent two weeks ago. Trackers say expiration of the central bank’s $600 billion bond purchasing program — which pushed down Treasury yields and, subsequently, mortgage rates — could mean higher interest this summer.
Detroit News (07/04/11) Kravitz, Derek
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Ellie Mae Refocuses on Mortgage Lenders
June 23rd, 2011
Written by Frost Mortgage
The decline of mortgage brokers has had a profound affect on loan origination system provider Ellie Mae. As indicated by the Pleasanton, Calif.-based company’s disclosures to the Securities and Exchange Commission, its customer base has shifted dramatically from broker to lender since 2008.
There were 41,351 lender mortgage professionals who used Ellie Mae’s Encompass origination system at least once during the quarter, up 18% from the first quarter of 2010 and up 4.2% from the fourth quarter of 2010.
Active broker mortgage professionals using the software stood at 11,014 at the end of 2010—down 49% from the same period of 2009—but Ellie Mae did not disclose the number of active brokers during the first quarter of 2011.
In a recent call with analysts, Sig Anderman, the president and chief executive of Ellie Mae, said the number of broker users dropped below 10,000 in first quarter, the result of declining number of mortgage brokers in the industry.
“The broker market is being pretty much decimated out there,” Anderman said. “We’re not focusing at all on brokers. Our entire focus is on lenders because that’s where the future is in this business; it’s pretty clear from virtually every perspective.”
“When I say the brokers are gone, it doesn’t mean the individual who was a broker is gone. The successful guys morphed [into] bankers. So it’s not like if you had a 100-person brokerage shop, they didn’t disappear and turn into book sellers, they became bankers.”
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Mortgage Broker Numbers Continue to Dwindle
June 22nd, 2011
Written by Frost Mortgage
Mortgage Broker numbers continued to dwindle in first quarter 2011 to the lowest level ever recorded by the National Association of Mortgage Brokers. An industry that once accounted for more than 30% of residential mortgage originations funded less than 7% of the total through March 2011.
“We are seeing a steady migration of quality Brokers to the Mortgage Banker space,” says Greg Frost, President of Frost Mortgage Banking Group, a Division of PRMI. “We licensed 4 new offices in April/May and have 9 more in various stages of evaluation, migration and licensing. Our business model speaks to the entrepreneurial spirit of the Broker while providing increased product access, as well as financial stability. Brokers seem to agree that the Mortgage Banker correspondent platform is preferable to going to work for one of the large commercial banks.”
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Mortgage Market Gains
March 23rd, 2011
Written by Frost Mortgage
Lifted by a 5 percent rise in adjustable-rate activity, new mortgage inquiries were 2 percent higher this week. Mortgage rates improved, refinance share shrank and the jumbo-conforming spread widened.
At 211 for the week ended Friday, the U.S. Mortgage Market Index gained steam from 206 last week. This week’s reading was worse, however than the same week last year when the index was 238.
The recent increase was fueled by adjustable-rate mortgages, with the ARM index edging up to 20 from 19 a week earlier.
The Purchase MMI rose to 110 from 107, and the Refinance MMI edged up to 101 from 99.
Refinance share fell to just under 48 percent from just over 48 percent but was up from 43 percent in the week ended March 10, 2010. This week’s rate-term refinance share was 34 percent, and cashout-share was 14 percent.
The spread between the conforming 30-year fixed-rate mortgage and its jumbo counterpart widened to 73 basis points from 70 BPS last week. But the spread between the 15-year fixed-rate mortgage and the 30-year maintained at 77 BPS.
By MortgageDaily.com staff
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Fed Abandons Proposed TILA Rules
February 4th, 2011
Written by Frost Mortgage
| Finalization of new Truth-in-Lending-Act rules by the Federal Reserve will likely be abandoned — a move mortgage bankers have been lobbying for.A statement Tuesday indicated the Federal Reserve Board does not expect to finalize three pending rulemakings under Regulation Z, which implements TILA, before Reg Z rulemaking authority is passed on to the Consumer Financial Protection Bureau in July.
The Fed published proposed two rules in August 2009 that would have reformed TILA disclosures for closed-end mortgages and home-equity lines of credit. A September 2010 proposal changed disclosures for reverse mortgages and right-of-rescission notices. The proposal also included new disclosures for loan modifications, restrictions on advertising practices and reverse-mortgage sales practices. In addition, changes to mortgage servicer obligations were proposed. The Fed explained that the public benefit would be questionable in its proceeding with the rulemaking given that the CFPB would be responsible for combining RESPA and TILA disclosures leading to further revisions. It is also possible, the Fed went on, that the consumer regulator could issue a new rule before the deadline. The Fed said that adopting in “a piecemeal fashion” the TILA provisions which would carry on after authority is transferred to the CFPA would make it more difficult to be compliant. The Mortgage Bankers Association called the Fed’s decision “wholly appropriate.”
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| Feb. 2, 2011By MortgageDaily.com staff |
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LO Compensation Guidance Gets 11th Hour Treatment by Federal Reserve
January 27th, 2011
Written by Frost Mortgage
The Board of Governors of the Federal Reserve System has announced the release of its “Compliance Guide to Small Entities” regarding Regulation Z: Loan Originator Compensation and Steering. The Compliance Guide summarizes and explains rules adopted by the Board, but is not a substitute for the final rule itself, which will be enforced come April 1, 2011. Regulation Z; Docket No. R-1366, Truth-in-Lending was originally published in the Federal Register on Sept. 24, 2010, and as mandated by the Small Business Regulatory Enforcement Fairness Act (SBREFA) Section 212(a) (3), an agency is required to publish a compliance guide on the same date as the date of publication of the final rule (in this case, Sept. 24, 2010), or as soon as possible after that date and no later than the date on which the requirements of the rule become effective (April 1, 2011).
The rule prohibits a loan originator from steering a consumer to enter into a loan that provides the loan originator with greater compensation, as compared to other transactions the loan originator offered or could have offered to the consumer, unless the loan is in the consumer’s interest.
The “Compliance Guide” states that “the regulation applies to all persons who originate loans, including mortgage brokers and their employees, as well as (as defined by the Federal Reserve) mortgage loan officers employed by depository institutions and other lenders. The rule does not apply to payments received by a creditor when selling the loan to a secondary market investor. When a mortgage brokerage firm originates a loan, it is not exempt under the final rule unless it is also a creditor that funds the loan from its own resources, such as its own line of credit.”
According to the Compliance Guide: “To be within the safe harbor, the loan originator must obtain loan options from a significant number of the creditors with which the originator regularly does business. The loan originator can present fewer than three loans and satisfy the safe harbor, if the loan(s) presented to the consumer otherwise meet the criteria in the rule.”
“The National Association of Mortgage Brokers (NAMB) believes that this does not satisfy the requirement as written,” said NAMB Government Affairs Committee Chair Michael Anderson, CRMS. “NAMB is reviewing the Compliance Guide and will taking appropriate action.”
Click here to view “Compliance Guide to Small Entities” regarding Regulation Z: Loan Originator Compensation and Steering.
Wed, 2011-01-26 17:41 — NationalMortgag…
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What’s the “brick” that could catapult you to success?
June 28th, 2010
Written by Greg Frost
The "brick." I bought the 2nd one sold in New Mexico, in 1985.
Technology is one of a very few places to look for a competitive edge. I embraced it early in my career and found that it helped set me apart.
A couple of Twitter connections (Jwean and Andrewtberman) reminded me the other day of my very first cell phone, a Motorola “brick”, like the one pictured here. It was only the second one in New Mexico and yes, it was expensive. All it did was make and receive calls, the battery only lasted about 40 minutes, and it weighed about two pounds.
My Realtor referral partner, Neal Goldblatt, had the first one sold in our state. He came by my office, showed it to me and told me I needed to get one. I asked why. He responded … “so I can call you any time of the day or night.” Neal ran an office with 10 agents. I was getting 12-14 referrals a month from him, so I went out and bought one. They were $3000.
This was 1985, and I went out and spent 3% of my annual income on that cell phone. I carried it to every breakfast and lunch that I shared with my Realtor prospects and referral partners to demonstrate how “in touch” and efficient I was……..worked like a charm.
The lesson here for any business professional is to consider technology early and never hesitate to invest in your success. That’s why we are now embracing social media. My mantra has always been that “Communication is the lubrication in every well-run organization.” I believe that you get ahead by recognizing how it is that your constituency is communicating and then get on board.
I’m 61 years old. I began honing my business building communication skills before there were fax machines. Back then I used a courier service to get my flyers delivered to my prospects. Now I use e-mail, Twitter, LinkedIn, Facebook, YouTube, and an interactive Website.
If this old dog can learn these new tricks, so can you. Give them a try.
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Greg Frost Sr.: Learn to succeed
June 28th, 2010
Written by Greg Frost
The great breakthroughs in your life will come when you realize that you can learn anything you need to learn to accomplish any goal that you set for yourself. This means that there are no limits on what you can be, on what you can have, or on what you can accomplish.
Goals are nothing more than dreams, to which you have attached a time limit. Set your goal and then seek out all information that you can to learn all that you can about your chosen endeavor. Then you will be ready to go out and achieve it.
Start by finding out all you can about what the most successful people in your arena did to become successful. Do what they did, over and over again, and you will eventually enjoy the same results. Emulate the best and you will become one of them.
I was noted as the 1st Billion Dollar mortgage originator back in 2000. I had been originating since 1985. I built my business in a full doc business environment before FICO scores, AUS systems, slim doc, no doc, fast and easy, stated income etc. My personal origination expertise was gained originating the same products that we are all originating today. I was able to distinguish myself, in my market, by putting a recognizable face on the word “service”. I did this by succinctly defining my service with daily, weekly, monthly and quarterly activities that my clients (Realtor Referral Partners) and our mutual business (Borrowers) could readily recognize and appreciate. This strategy will work for you today.
Do you feel challenged by your current environment? Are you struggling with your business model? Are you concerned that you will not be able to function in this new era of massive regulation changes and their inherent risk? Are you struggling with redirecting your sales and marketing efforts to a more productive opportunity pool?
I am President of a production Division of Primary Residential Mortgage, Inc. In addition, I am their VP of National Training. I think that I am uniquely qualified to offer you a dynamically profitable business model along with market tested production mentoring, the combination of which should give you every advantage.
Go to www.frostmortgage.com and let’s get acquainted.
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#Albuquerque among MSAs removed from “distressed” list
June 22nd, 2010
Written by Frost Mortgage
Good news for the Duke City: Albuquerque is one of 105 metropolitan statistical areas (MSAs) to be taken off the PMI Distressed Markets List.
As MortgageDaily.com reports (subscription required), the change is part of a spate of positive news:
“Mortgage insurance companies are easing guidelines, increasing loan amounts and eliminating declining market status for many metropolitan areas. The relaxed standards are emerging as the sector is seeing improved conditions.”
Other areas removed from the list included Chicago, Los Angeles, New York City, Boston, Seattle and Washington, D.C.
The Federal Reserve Bank of San Francisco describes Private Mortgage Insurance (PMI) as “extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home’s value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.”
Here at Frost, we’re happy to see positive changes in the market that will make it easier for qualified buyers to access this invaluable resource.
If you are looking for a home loan for your next life move, please call us today and let us help you.
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FHA loans: Net worth timeline, new monthly scorecard
June 22nd, 2010
Written by Frost Mortgage
The Federal Housing Administration (FHA) has been busy recently.
We’ve written before about a move to raise the minimum net worth worth requirements for loan originators. The FHA recently set out a timeline for implementation (MortgageDaily.com; subscription required). Among the requirements is a $1 million net worth for all new FHA applicants, with at least 20 percent being liquid. The timeline was announced in a mortgagee letter.
The new requirements are likely to shake up portions of the mortgage industry, making it all the more important to look for evidence of stability in your potential lending partner (such as Frost Mortgage’s “Full Eagle” status). If you have any questions, please feel free to contact one of our loan officers today–we’ll be happy to talk with you about our qualifications and the depth of our resources.
Meanwhile, the U.S. Department of Housing and Urban Development (HUD) and the Treasury Department have announced that they’ll be distributing a monthly “scorecard” on the national housing market, including updates on FHA programs. This should be a good resource for those of us who follow the industry closely and should help us and our branch partners continue to provide you better service and useful products.
If you’re in the market for a loan, now is a great time thanks to low interest rates, and if you’re considering making a move up in the business, it’s a great time for that as well–Frost Mortgage has one of the best programs in the mortgage industry, and we’ve got the resources to thrive even in an environment like this one.
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