Mortgage Ops Jobs; HARP Pricing; Property Inspection Waiver Considerations

are you hearing that many companies are paying their LO’s less for refinances,
and even less for refinances within a company’s servicing portfolio?” Yes
I am, within the confines of complying with LO comp rules.

The F&M Bank and Trust Company,
Mortgage Group, is looking for an assistant to the SVP of secondary marketing
in its Tulsa, OK site. The position
would work directly with senior management in the maintenance and development
of new and existing investors, prepare rate sheets, lock loans with investors,
manage pricing model, have a working knowledge of mortgage banking, and
proficiency in Excel, word, power-point, and be directly involved in monthly
and annual budgeting process. The F&M Bank and Trust Company has been in
business for 65 years, and is a “locally owned” $2 billion bank, and its mortgage
operation is growing and has offices in Oklahoma and Texas. Interested persons
should contact David Laughlin, secondary manager, at, or apply
on line at

Out in California, a 25 year-old Orange
County-based mortgage banker is looking for a VP of Operations
experience in processing, underwriting, doc prep, funding, shipping, insuring,
compliance and all other facets of the industry pertinent to such a position.
The company is a DE approved HUD mortgagee and is also approved by FNMA. “It
offers a very strong compensation/benefits package for the right person.” The
candidate should either live in Southern California with a manageable commute,
or be prepared to relocate. If you know someone who is interested, they should
send their resume to me at

Let’s roll
up our sleeves and plunge into…HARP 2.0. The first thing for folks to note is
that there is a wide disparity between
the potential security market pricing for pools filled with these loans and the
prices on rate sheets.
Investors, knowing that these borrowers have a good
payment history, view these new loans as nearly un-refinancable due to the
program, and therefore on their books longer and therefore are more valuable.
Lenders, however, due to the newness of the program, the perceived cost of
higher fallout, and the general uncertainty about future reps & warrants,
are actually charging a higher price for them then “regular” conventional
loans. The market should see this price difference diminish over time, but for
now it is a fact of life.

Northern California Mike S. writes, “Some think HARP 2.0 is the holy grail
for borrowers and LO’s. Others think it’s a bust. I think it falls somewhere in
the middle, like the weatherman who says there’s a 50% chance of rain gets to
be right every time. My concern is at what price any success will cost. How
many apps will be taken to help the few? If I’m a borrower in an underwater
house and the only life boat to come by in four years passes my house to save
others do I quit treading water? The premise behind a modification was that if
we lowered the payment they would continue to pay. The result of that exercise
hasn’t exactly been stellar. Is this much different? Once again this program
ignores the 5000 lb. elephant in the room: there’s no equity and for many there
will never be enough equity to get whole. This can will eventually quit getting
kicked down the road. Many people I know consider themselves ‘renters with tax
benefits’ in the homes that were once their dream. Are we just lowering the
rent so we can deal with the issue ‘tomorrow’?”

“Rob, what are you hearing out there regarding a property’s estimated value? How are the agencies determining this
value? On a HARP 2.0/DU Refi Plus, Fannie has increased the number of loans
receiving the PIW option. If the lender executes the PIW (and sends the $75
fee), Fannie accepts the property value estimate submitted to DU as the market
value for the subject. Some lenders are only accepting loans with the PIW
option available. How are they determining that value – asking the borrower in
the application process or using a ‘see what value entered gets the PIW and the
best pricing for the borrower’ method? Fannie has been clear that if the file
contains other estimates of value that this could result in repurchase. I am
interested in how lenders are approaching this. Finally, Fannie states that
there may be certain situations in which a lender needs to obtain an appraisal,
even though a DU Refi Plus property fieldwork waiver was offered on the loan
case file.”

He continued, “One example of this is when the lender has reason to believe
that fieldwork is warranted based on additional information obtained about the
property, subsequent events such as a hurricane or other natural disaster, or
additional information provided by DU regarding the subject property or loan case
file. In these situations, the lender should obtain an inspection. If the
inspection reveals physical deficiencies or adverse environmental conditions,
the lender must obtain a full appraisal (based on an interior and exterior
property inspection) and may not exercise the DU Refi Plus property fieldwork
waiver offer. If the inspection does not reveal physical deficiencies or
adverse environmental conditions, the lender may choose to exercise the DU Refi
Plus property fieldwork waiver, or they may obtain the minimum level of
property fieldwork as specified by DU. Another example is when the lender is
required by law to obtain an appraisal. In this situation, the lender must
comply with such requirements, but may still exercise the DU Refi Plus property
fieldwork waiver. What are lenders saying about this Fannie guide and how are
they addressing?”

These are
valid questions, as are any issues regarding the PIW, reps and warrants, and values. Here is the original
announcement on HARP 2.0 guidelines
…if you go to pages 6-7 you can see info
on reps and warranties: . Here’s the primary Fannie HARP page.  and down toward the bottom is a “Resources” section that might be
useful.  Of particular note is the Options Matrix which lays out some
specific guidelines in a useful format.  As always, the best advice is to contact your Fannie rep!

2012 home
prices are off to a rocky start if you follow the S&P/Case-Shiller Home
Price Indices
, which, in both the 10 city and 20 city composites, fell 0.8% in
January, with the 20 city hitting its lowest level since early 2003. Year-over-year
prices fell 3.9% in the index’s 10 major markets, while the 20-city index
dropped 3.8%. On top of that the Conference Board’s confidence index
dropped to 70.2 in March from a revised 71.6 in February that was revised
upwards. How does one reconcile this news with the FOMC statement released with
some upbeat comments about the economy, the stable/improving labor market, and
the other home price indicators showing some decent news? For now the market seems a little more in favor of the “our economy is
not that strong” scenario, helping rates slide down slightly.

So Tuesday
saw money managers, REITs, banks, hedge funds, and of course the Fed were all
said to be buying in current coupons reportedly at a 3:1 (buyers/sellers) pace.
Supply picked up as well and totaled over $2.0 billion. MBS prices ended higher/better
by about .250, and the 10-yr t-note was better by .5 (closing around 2.19%).

Today we’ve
had the MBA’s residential application activity for last week, and once again a
decline in refinancing wiped out modest gains in purchase mortgage activity
during the week. Overall apps were down 2.7%, with refi’s dropping almost 5%
and purchases increasing over 3%. Refi’s now account for about 72% of all
incoming business – the lowest it’s been since last July. We also had another
GDP revision for the 4th quarter, viewed as old news; later, at 11AM
MST the U.S. Treasury will auction $35 billion in 5-year notes. We find our 10-yr at 2.21% and MBS prices
worse by about .125.

A man is
getting into the shower just as his wife is finishing up her shower when the
doorbell rings.  After a few seconds of arguing over which one
should answer the doorbell, the wife gives up, quickly wraps up in a towel
and runs downstairs. When she opens the door, there stands Bob, the next door

Before she
says a word, Bob says, “I’ll give you $800 to drop that towel you have
on.” After thinking for a moment, the woman drops her towel and stands
naked in front of Bob. After a few seconds, Bob hands her $800 and leaves.

but excited about her good fortune, the woman wraps up in the towel and goes
back upstairs. When she gets back to the bathroom, her husband asks from the
shower, “Who was that?”

was Bob the next door neighbor and he…”

The husband
interrupts, “Great, did he say anything about the $800 he owes me?”
Management Lesson:  If you share critical information pertaining to credit
and risk in advance with your stakeholders, you may be in a position to prevent
avoidable exposure.

…(read more)

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