Redwood’s Non-Agency Security; Plethora of Lender & MI Updates

moving” is the lifeblood of Realtors. The Census Bureau just released
estimates from the American Community Survey showing how many people migrated
from one specific county to another during the course of a year, during the
2005-2009 period. Of the 48 million people who lived in a different residence
in the United States one year earlier, about 18 million lived in a different
county. Maricopa, AZ (Phoenix), had the largest number of inflows of people for
any single county in the nation: people moved there from 993 different counties!
Similarly, Maricopa led the nation with the largest number of counties in which
it sent outflows of people ─ a total of 1,156 counties. The most common
county-to-county moves nationally were from Los Angeles to San Bernardino, CA, Los
Angeles to Orange, CA, Los Angeles to Riverside, CA, and Miami-Dade to Broward,

Job-wise, AMX loans/Land Home
Financial seeks experienced AE’s in Northern and Southern California.

There is also an opportunity for experienced underwriters in its Concord, CA branch.  The company has been
in operation since 1988, and is a direct lender with FNMA/FHLMC/GNMA.  AMX
offers a full range of Agency, FHA, VA, USDA as well as affordable housing
products, CalHFA, and Jumbo programs.  Interested candidates should send a
resume and cover letter via email to Mr. Walker at

And the news just keeps getting better!  Another major California-based mortgage banking operation is looking
for Loan Agents for its expanding markets in Austin and San Antonio, TX

“The company truly believes in a Loan-Agent-First philosophy.”  In
business since 1986, the lender is a multi-state Fannie Mae direct lender
funding over $4 billion in 2011, and has over $2 billion in servicing. Their
400 agents, some of the top originators in the west, enjoy HVCC Appraisal, full
marketing including individual websites, weekly paid commissions, and so on. The
ideal candidates should have strong verbal communication skills, and must be
fully NMLS licensed. Top agents only should submit their resumes, to be kept
confidential, to Carl Hunter at

Redwood Trust sold bonds tied to about $325 million
of new home loans in the fifth offering of non-agency securities (without
government backing) since 2008. According to sources, Redwood sold a $163.6
million, top-rated portion to yield 1.8% more than benchmark swap rates,
slightly better than the 1.9% spread in January. Fitch, the credit rating
agency, stated that the credit enhancement (protection against defaults for
investors) on the top-rated portion of the Redwood deal fell to 7.2 percent
from 8.3 percent in the January offering. In this recent deal, the underlying
30-year fixed-rate loans have balances that average $895,998, LTV’s of 63.5%,
and borrower credit scores that average 768. Kroll and Fitch assigned top
grades to $305 million of the debt, making it more attractive to investors such
as banks, which hold loss less capital against higher-ranked securities, and this
recent offering was managed by Barclays.

How about
some lender and MI updates, because they
just don’t seem to be stopping? And of course some of them address the
announcement a while back: “During the weekend of March 17, 2012, Fannie Mae DU
was updated to implement enhancements to DU Refi Plus.  Please note:
Though DU will issue an eligible recommendation on DU Refi Plus fixed-rate
mortgages with terms of 15 years or less and an LTV over 105% after March 17,
2012, those loans will not be eligible for committing and delivery to Fannie
Mae until June 1, 2012.” For more details, see the DU Release Notes Updated March 9th.  

HARP 2.0
has arrived.  Fannie Mae has just rolled out the enhanced program.  To be
eligible, the borrower’s original mortgage must be Fannie-owned or guaranteed
before May 31, 2009. As best I can tell, servicers
are reminded that they should not request more documentation from borrowers
than that necessary to complete a Borrower Response Package, which consists of
a completed Uniform Borrower Assistance Form (710), income documentation,
hardship documentation, and either a Short Form Request for Individual Tax
Return Transcript (IRS Form 4506T-EZ) or a Request for Transcript of Tax Return
(IRS Form 4506-T) signed by the borrower.  Procuring extra documents “clogs
up” the system.

Fannie produced
two job aids called “Implementing the Fannie Mae Home Affordable Modification
Program,” which is pretty self-explanatory, and “Implementing Fannie Mae
Standard Modifications,” which can be used as a comprehensive checklist.

Over at Freddie Mac, it has expanded its policy
on HASP Open Access such that HVEs are now permitted for one or two-unit
properties only and must not be more than 120 days old at the Note date. 
HVE values are calculated by the initial LP Feedback Certificate, and
subsequent HVE values will have to be determined, if it has expired, by running
the property through CoreLogic, or, if it hasn’t expired, by pulling an
additional HVE using CoreLogic.

announced that it would issue $42 million worth of housing counseling grants to 468 agencies across the country in an
effort to reduce the incidence of future foreclosures.

The FHA has updated loan guidance to state that rental income paid by a family member is not an eligible source of
funds when taking out a loan on a converted primary residence
, that
Streamlines do not require CAIVRS, and that Streamlines of investment
properties that do not include an appraisal may only include the original
principal balance.  Guidance on disputed tradeline and collection, P&L
and Balance Sheets for self-employed borrowers, and the HO-6 maximum deductible
has also been updated.

Don’t forget that according to the FHA’s
newly revised mortgage insurance premiums
, Streamline refinances endorsed
before June 1, 2009 with case numbers assigned on or after June 11, will be
eligible for reduced up-front and annual insurance premiums.  Title I,
Home Equity Conversion, Hawaiian Homeland, Indian Reservation, Declining
Neighborhood programs are exempt, however.  For mortgages with case
numbers assigned on or after April 9, both up-front and annual mortgage
premiums will go up, and those with loan amounts over $625,000 and/or case
numbers assigned on or after June 11, 2012 will be subject to additional

The FHA has released the TOTAL Mortgage Scorecard Developer’s Guide, revised to
reflect recent changes, and it’s available at

The FHA announced that Streamline refinances that reduce the loan term are
eligible for FHA insurance if they meet the appropriate net tangible benefit
requirement.  For the FHA’s purposes, a “net tangible benefit” is defined
as a 5% reduction to the principal and interest plus the annual mortgage
insurance premium or refinancing from an ARM to a fixed-rate mortgage in
compliable with the net tangible benefit matrix qualify.

Wells Fargo’s wholesale group reminded brokers
that, “Freddie loans need to be WF serviced regardless of the
LTV/CLTV, Fannie loans that are under 105LTV and 110CLTV can be serviced by any
lender, Fannie loans that are over 105LTV and 110CLTV must be WF serviced,
loans that have MI do not qualify for HARP, the loan being paid off must have
been originated before May 31, 2009, and borrowers are only eligible for ONE
HARP loan.”

Fargo issued a friendly reminder to lenders to be aware of the policies and
additional risk associated with Cash-out Refinance transactions, which are
covered in Section 430 of the Broker Guide.  Lenders should know that
borrowers with recently opened new credit, deteriorating credit, declining
income, a short period of ownership, recent title changes, or occupancy
concerns may be ineligible for a Cash-out Refinance.

US Bank iDoc users have been having trouble
accessing the new portal, apparently. USBHM instructs deleting the browser
cache, closing all browser windows, opening a fresh browser, logging into the
SellUs website, and then proceeding from there. Ah, software…

United Guaranty enhanced its DPI Upload loan
submission system to include editable contact fields so that lenders can
indicate a specific contact for any given submission as well as updated Broker
TPO options that will match Rate Runner and RAPid Link to reduce the chance of
registration errors.

Clients at Fifth Third are reminded
to follow protocol when sending documentation, which includes using the
“imaging fax cover letter,” including the loan number in the subject line, and
include the loan number in the subject, and making sure that all the necessary
documents are included.  Zip files and large files should not be sent, as
they cannot be properly processed. 5 3 has expanded its policy on transferred
mortgage insurance for DU Refi Plus and HASP Open Access loans and, for
non-Fifth Third to Fifth Third loans, will allow transferred MI for Radian,
Genworth, and MGIC.

GMAC reminded clients about the impending
increase in the premiums for Up-Front Mortgage Insurance (UFMIP) and Annual MIP
for FHA loans. And a new underwriting overlay matrix is available on the GMAC

MGIC has issued Adjusted Gross Income (AGI) and Schedule
Analysis Method (SAM) cash flow analysis worksheets for the 2011 tax year,
which can be found in the online Loan Center under “Resources.”  There are
also webinars available that cover basic and advanced AGI and SAM analysis.

Essent Guaranty has been added to Flagstar’s list of
approved mortgage insurance underwriters and is available to both approved
Delegated and non-Delegated clients. And Radian Guaranty’s subsidiary Radian Mortgage Assurance (RMAI) was
recently approved by Fannie to insure conventional loans and has been added to
the relevant list.

Turning to
the markets, yesterday was a bit of a choppy day, especially after the 1PM EST
(10AM PST) 5-yr Treasury auction disappointed the markets. Yes, something like
that can move interest rates. Both stocks and bonds sold off, with the 10-yr
T-note closing at 2.20%, and if it’s any relief oil, gold, and silver all
dropped in price also. This morning’s 4th quarter GDP is still at 3% –
no big deal. Jobless Claims 359 is actually down 5k from a upwardly revised
364k. After this smattering of news we
find the 10-yr at 2.18% and mortgage prices better by about .125.

The buzz word in today’s business world is MARKETING.
People often ask for a simple explanation of “Marketing”- so here it

You’re a
woman and you see a handsome guy at a party. You go up to him and say “I’m
fantastic in bed.” That’s Direct Marketing.
You’re at a party with a bunch of friends and see a handsome guy. One of your
friends goes up to him and pointing at you says, “She’s fantastic in bed.”
That’s Advertising.
You see a handsome guy at a party. You go up to him and get his telephone
number. The next day you call and say, “Hi, I’m fantastic in bed.” That’s
You see a guy at a party; you straighten your dress, walk up to him and pour him
a drink. You say   “May I?” and reach up to straighten
his tie, brushing gently against him and then say, “By the way, I’m
fantastic in bed.” That’s Public Relations.
You’re at a party and see a handsome guy. He walks up to you and says, “I hear
you’re fantastic in bed.” That’s Brand Recognition.
You’re at a party and see a handsome guy. He fancies you, but you talk him into
going home with your friend. That’s a Sales Rep.
Your friend can’t satisfy him so he calls you. That’s Tech Support.
You’re on your way to a party when you realize that there could be handsome men
in all these houses you’re passing. So you climb onto the roof of one and shout
at the top of your lungs, “I’m fantastic in bed!” That’s Junk Mail.

…(read more)

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