LenderNews by Rob Chrisman
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June 5: Encompass & Consumer Direct jobs, TPO product; bank rankings; RESCAP legal news; June Fed rate hike odds

June 5, 2017

The Federal Financial Institutions Examination Council (FFIEC) published a Press Release announcing an update to the Cybersecurity Assessment Tool.
 
Jobs & personnel, products & events
 
Eagle Home Mortgage and Barry Habib would like to extend an invitation to an exciting evening with other top mortgage professionals and an opportunity to get Barry’s most recent market forecast at the upcoming Mastermind Summit in Las Vegas. Come enjoy a premium open bar, great food and even better company. Our VIP event will be held at the Palms Hotel and Casino in the Harper Room June 7th from 5-8pm. Our event is filling up quickly, so RSVP to https://eaglehomemortgagemastermind.eventbrite.com (password is eagle) today! We look forward to seeing you!” Questions can be addressed to Michelle Taylor.
 
Inlanta Mortgage Inc., is proud to announce the growth and development of its Third-Party Origination (TPO) Solutions program with the promotion of their own Aaron Kaczorowski to TPO Account Executive. Aaron has been with Inlanta since Feb. 2015 and will make a great addition to the team, working alongside TPO Manager, Dave Stephan. Inlanta also recently welcomed new National Training Manager, Jennifer Jensen, who brings 23 years of industry experience to the team. “Inlanta is currently positioned for tremendous growth and Jennifer will be a valuable asset that will further Inlanta’s advancement in the mortgage marketplace, providing extensive training programs to support the company’s objectives.”
 
Republic Bank and Trust Company is seeking a highly talented and experienced Consumer Direct Manager to lead our growing team. This individual will direct and coordinate all activities of the Consumer Direct channel, including recruiting talented loan officers, managing lead sources and partnering with our online deposit platform. Republic Bank is the largest bank headquartered in Kentucky and currently lends in 15 states with the plan to expand to all states in the coming months. We offer a competitive salary, commission and benefits package along with the stability and support of a very profitable and more than adequately capitalized bank. We offer agency and non-agency products, including portfolio loans, HELOCs and promotional products that only a bank can provide, that will allow the right leader to thrive and reach their fullest potential. We were just voted one of the Top Places to Work in the state. Resumes can be submitted online or sent to Adam Perito, VP Talent and Recruitment Advisor. Republic Bank is an EOE Employer-Minorities/Females/Veterans/Individuals with Disabilities/Sexual Orientation/Gender Identity.
 
Mortgage market expert, Barry Habib and his company MBS Highway, have entered into an exclusive partnership with Total Expert. MBS Highway’s proprietary content and data tools will be integrated directly into the marketing automation and CRM modules in the Total Expert platform, allowing enterprise customers seamless deployment and tracking of MBS Highway-powered marketing campaigns. “We have been looking for a technology partner equipped to serve our enterprise customers for a long time. After looking at dozens of platforms over the past several years, Total Expert is hands down the most robust enterprise solution available to banks and mortgage lenders for CRM, Marketing, and Co-Marketing,” said Barry Habib, CEO and Founder of MBS Highway. “Barry’s content and data expertise combined with our technology is a powerful combination. We are really excited about the tremendous value this partnership will bring to our mutual enterprise customers,” said Joe Welu, CEO and Founder of Total Expert. Learn more about Total Expert by visiting TotalExpert.com.
 
NRL Mortgage is extending an exclusive invitation to the attendees of the upcoming Mastermind Summit in June. They’ve arranged an exciting cocktail reception with music, food, fun and networking with the industry’s elite top producers, and will be getting REAL with their special guest & friend, Josh Altman, star of Million Dollar Listing Los Angeles! This private event will be held at The Palms, Las Vegas "Real World" Suite; Wed., June 7th, 5-6PM, and is already drawing much attention. Those interested should RSVP quickly to NRLEvents. Click here to explore the potential of what NRL Mortgage offers, as it is licensed in 45+ states and growing nationally. Any top producers and top managers interested in having a confidential conversation regarding a new opportunity should reach out to President Ron Zach.
 
Paul Clifford from Simplifile: “In the absence of digital collaboration between lenders and settlement agents, issuing separate Closing Disclosures (CDs) for the buyer and seller will continue to cause headaches for lenders, as this approach increases the likelihood of compliance missteps. The settlement agent is often the entity driving the creation of the seller form (usually with the intent of protecting the seller’s information). There needs to be a mechanism in place to ensure that information is being exchanged securely and in a timely manner to avoid disclosure delivery snafus and prolonged post-closing follow-ups that can lead to serious Know Before You Owe rule violations. Simplifile’s Collaboration platform for lenders and settlement agents supports real-time communication and automated notifications to alert both parties of changes to either the buyer or seller CD, thus ensuring that both forms match and that revised disclosures are reissued to each party in a timely manner.”
 
Midwest Equity Mortgage (MEM) is in search for an experienced Encompass Business Analyst/Systems Administrator. MEM is a growing National Mortgage Lender, licensed in 14 states, funded 1.6 Billion in 2016, exclusively through a direct to consumer/retail channel. MEM was once again named to Crain’s Fast 50 growing companies and is an INC. 5000 Company. MEM is headquartered in Oak Brook, Illinois. The Business Analyst/Systems Administrator is responsible for working directly with business users to develop, improve, and document system workflows, support technical issues, and identify and cure impediments to moving files efficiently and effectively through the system. For the candidate to be considered, he or she must have must have a minimum of two years’ related experience with Ellie Mae’s Encompass LOS. The position is remote and the candidate can reside anywhere. Please direct all inquiries to HR@midwestequity.com or to Len Tortorice.
 
Bank news
 
“Bigger is better” with some things, right? For those that think it applies to banks, and for those who like lists, S&P Global Market Intelligence finds the largest US banks by assets as of the end of Q1 in order were: JPMorgan ($2.55T); Bank of America ($2.24T); Wells Fargo ($1.95T), Citigroup ($1.82T), US Bancorp ($450B); PNC ($371B), TD Group ($371B), Capital One ($349B), Bank of New York Mellon ($338B), and HSBC North America ($295B).
 
People’s Intermountain Bank ($1.7B, UT) will acquire Town & Country Bank ($135mm, UT) for about $20.9mm in cash (35%) and stock (65%). Doolin Security Savings Bank ($48mm, OH) will combine with Belpre Savings Bank ($48mm, WV) in a merger of equals. In nearby Indiana Horizon Bank ($3.2B) will acquire Lafayette Community Bank ($172mm) for about $32mm in cash (10%) and stock (90%) or about 1.66x tangible book. And banks don’t only have to buy banks, right? Peapack-Gladstone Bank ($4.0B, NJ) will acquire asset manager Murphy Capital Management Inc. (NJ) with its $850mm in assets under management.
 
Things aren’t always rosy of course. Regulators closed Fayette County Bank ($34mm, IL) and sold it to United Fidelity Bank ($574mm, IN) under a purchase and assumption agreement. (United picks up one branch, all the deposits, and about 84% of the assets.)
 
Banks are where the money is… but what if you don’t have much? SmartAsset did a study that considered affordability and livability factors to find the best cities for people who earn the U.S. median salary of $55,000.
 
Legal update
 
Clem Ziroli Jr., President of First Mortgage Corporation, reports that on May 18, 2017 attorneys for the corporation argued in U.S. District Court proceedings in Minnesota that claims by the RESCAP Liquidating Trust for $24.5M should be mostly dismissed, and that the remaining claims were overstated by 90%. RESCAP is the successor to the bankrupt unit of General Motors Acceptance Corporation’s RFC, which was a dominant figure in the 2008 financial meltdown.
 
“RESCAP lodged claims of breach of warranty and representation at loan origination for loans dating back to 1999. First Mortgage argued that all claims for 93 of 169 loans should be dismissed for being brought after a 6-year Statute of Limitations had passed. First Mortgage also argued that all claims for another 46 loans should be dismissed because the damages claimed were actually caused by a superseding cause such as RFC voluntarily agreeing to a short sale or a loan modification. Then, First Mortgage also argued that RFC’s actions to elect to do non-judicial foreclosure for 45 loans was a further basis for dismissing all but 6 of the 169 loans.
 
“Then, with respect to RESCAP’s $1.4M claims for those last 6 loans, First Mortgage argued that RESCAP’s claims were overstated by 90%, relying upon an August 2014 decision from the same courthouse about the same dispute against another RESCAP defendant which said,
‘In May 2012, RFC declared bankruptcy in the Bankruptcy Court for the Southern District of New York. The dozens of lawsuits against RFC involved a balance of more than $100 billion in original loan principal. And because RFC extended a promise to repurchase faulty loans and investments as part of its offerings, RFC had already spent millions of dollars repurchasing investments and loans. After RFC declared bankruptcy, investors and other interested parties filed hundreds of proofs of claim. Ultimately, the bankruptcy court approved a global settlement of over $10 billion to resolve the claims against RFC. The settlement assigned the rights and interests of RFC to the ResCap Liquidating Trust.’
 
“The judge said First Mortgage may file its motions together with similar motions by the other RESCAP defendants, but must wait for expert discovery to be completed. That may be as early as Thanksgiving. First Mortgage is committed to continuing this fight.”
 
The Office of the Comptroller of the Currency (OCC) issued Bulletin 2017-18: Violations of Laws and Regulations. The updated policy and procedures are effective on July 1, 2017 and apply to examinations of all national banks, federal savings associations, and federal branches and agencies. With these changes, the OCC aims to increase the effectiveness of its process for handling violations of laws and regulations. The updated policies and procedures provide the OCC with guidelines on consistent terminology, communication, format, follow-up, analysis, documentation, and reporting of violations.
 
Capital markets
 
Despite the arguably weak payroll number, the Fed Funds futures market (a way of gauging what all the smart folks think the probability is) increased their probability of a June hike to 93%. The 10 year continues to rally, and we are at the lowest yields since early November. The Trump “reflation trade” – $1 trillion on infrastructure plus tax breaks – continues to deflate, at least as far as bonds are concerned.
 
Friday, after the employment data, we had a nice treasury rally following the weaker than expected payrolls report as the 10-year note led the market higher, price-wise, and rates dropped with the 10-year yield dropping to 2.14%. (If employment is not strong, inflation is not an issue, so rates shouldn’t go up, right?) And so on Friday the 10-year note price improved .5 and closed with a yield of 2.16% whereas the 5-year and agency MBS prices improved about .250 depending on coupon and maturity.
 
But it’s a new week as we head into June. From overseas, scheduled news-wise, are two central bank decisions on Tuesday and Thursday. Also on Thursday is the UK general election – another election to talk about! Skipping over today (see next paragraph), tomorrow we’ll have the JOLTS job openings figure, Wednesday is the MBA apps data from last week, Thursday is initial jobless claims, and Friday the 9th is…not much.
 
This morning isn’t much either. We’ve had some 2nd tier productivity (unchanged in 1st quarter) and unit labor costs (+2.2%). Coming up later are some factory-orders numbers and ISM numbers. We launch the week with rates a smidge higher versus Friday’s closing levels. As a proxy for rates in general, the 10-year’s yield is 2.18% and agency MBS prices are worse nearly .125.
 
 
(Warning: Rated PG, I guess. Thanks to Nick S. for this one.)
A firefighter was working on the engine outside the station when he noticed a little girl nearby in a little red wagon with little ladders hung off the sides and a garden hose tightly coiled in the middle. The girl was wearing a firefighter’s helmet. The wagon was being pulled by her dog and her cat. The firefighter walked over to take a closer look. “That sure is a nice fire truck,” the firefighter said with admiration. “Thanks,” the girl replied.
The firefighter looked a little closer. The girl had tied the wagon to her dog’s collar and to the cat’s testicles. “Little partner,” the firefighter said, “I don’t want to tell you how to run your rig, but if you were to tie that rope around the cat’s collar, I think you could go faster.” The little girl replied thoughtfully, “You’re probably right, but then I wouldn’t have a siren.”
 
 
Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Does Everyone Want a Job?” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
Rob
 
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2017 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)