The Mortgage Collaborative is proud to announce a deal new with Sterling National Bank's Warehouse Lending Division that will extend our existing partnership an additional two years! In this new agreement, TMC Members that engage with Sterling National Bank as their Warehouse Lender, will receive:

• 10% off on legal fees associated with closing the facility.
• ​10% off on due diligence costs associated with closing the facility.
• ​$20 per file discount on each warehouse funding file assuming an average utilization of > 40%.

​To learn more, connect with the Sterling Nation Bank Warehouse team at TMC's Member Conference this week in Scottsdale, AZ or contact Jeff Bonner, Lou Politi or Patricia Robins.

President Trump is a ‘voracious agent of change' and will shake things up at the Federal Housing Administration and elsewhere, said former FHA Commissioner Brian Montgomery. "But what that means for multifamily finance remains unknown," Montgomery said here at the Mortgage Bankers Association's Commercial Real Estate Finance/Multifamily Housing Convention & Expo.

​Montgomery, vice chairman of the Collingwood Group, Washington, D.C., a housing policy group, said he sees opportunities on the horizon. "On the plus side, President Trump understands real estate finance," he said. "We've never had a president with real estate expertise. I think you'd agree he understands what a deal looks like."

In addition, the financial services industry can expect that the Trump administration will ease regulation, Montgomery noted. "I want to be optimistic: regulatory relief is in sight," he said. "Gary Cohn, the director of the National Economic Council, said he does not want to burden banks with new regulations."

Montgomery said he was "very optimistic" about the multifamily market in 2017. "We're seeing rising interest rates and a shortage of starter homes," he said, noting that prevailing low interest rates for the last few years have made it hard for many renting families to save for a house down payment. As a result, the homeownership rate stands at a five-decade low.

"Homeownership is now as low as it was when the HUD building first opened [in 1968]," Montgomery said. "It's below what it was at the start of the century, and we've grown by 41 million people since then."
On rental housing affordability, Montgomery observed rent growth has slowed a bit, "but it's still far from declining." He noted that fourth quarter rents stood nearly 25 percent higher than five years ago. "That contributes to millions of renter households being cost-burdened," he said. "Nearly half of all renter households, in fact. In many cases they are struggling to pay rent, never mind saving for a down payment on buying a house."

Montgomery said he would not be surprised to see the Trump Administration push to remove Davis-Bacon Act prevailing wage requirements, which mandate union wages for construction jobs, for affordable housing construction. "Many see that as contributing to higher development costs," he said.
Tax reform represents another Trump Administration priority, Montgomery said. Treasury Secretary Steven Mnuchin has said that he is targeting 3 to 4 percent GDP growth through tax reform and trade policy changes.

"They could lower the corporate income tax rate," Montgomery said. "That might reduce participation in the Low-Income Housing Tax Credit program. "I suspect the new president is very knowledgeable about the LIHTC program and has acquainted himself with the efficiency and effectiveness of tax credits compared to public financing. [Tax credits] utilize the public sector more to provide housing to low- and very low-income families."

Montgomery said Trump may see public housing as an untapped asset. "A good bit of it is considered substandard," he said. "Compare the public housing stock to project-based Section 8 housing. You can also see a solution in HUD's Rental Assistance Demonstration program, which reinvests in the public housing stock with public and private equity."

Montgomery said he also expects to see an increased focus on risk sharing between FHA and other public and private capital providers to reduce FHA's risk exposure, he said, noting he supports removing the unit cap on rent conversions to "open the door" to financing additional public housing units.

"I think these facts will spark an increase in FHA multifamily production and might be very attractive to the new administration," Montgomery said. "My hunch is that the next FHA commissioner should buckle his or her chinstrap."

• Article by Michael Tucker - MBA News Link.

More than 40 of Waterstone Mortgage Corporation’s personnel will ring the opening bell at Nasdaq on Feb. 21, 2017 as part of a ceremony honoring the company’s top loan originators.
According to Waterstone Mortgage, the company will be ringing the opening bell on behalf of Waterstone Financial, the savings and loan holding company for its parent company, WaterStone Bank.
Participating in the ceremony to open the day’s trading in New York City will be Waterstone Mortgage executives and 40 of the company’s top mortgage originators.
The loan originators that take part in the ceremony are part of the company’s “President’s Club,” which honors the company top originators.
“The Waterstone Mortgage executive team wanted to create a very memorable experience for our President’s Club members, and this seemed like the perfect way to do so,” said Waterstone Mortgage President & CEO Eric Egenhoefer. “Considering their dedication and hard work over the past year, we were eager to share this experience with our top producers – especially in light of our all-time company record of $2.5 billion in loan originations for 2016.” 

For decades, the only choice servicers had when securing a vacant or abandoned property was plywood. Boarding up windows and doors with plywood was supposed to keep the asset safe, but the effect was often the opposite — the boarded-up home advertised vacancy, which invited looting and other criminal activity.
Now, a new alternative to plywood — polycarbonate boarding — promises to reverse the cycle of blight while better securing properties. Developed by SecureView in 2010, the battle against community blight got a huge shot in the arm as Fannie Mae announced that it would reimburse servicers for installing polycarbonate boarding in pre-foreclosure.
This one action could prove to be a game-changer for communities throughout the nation, reversing decades of blight. This white paper explores the real cost of boarding with plywood and what servicers need to know about Fannie Mae’s new policy.
Publisher: Community Blight Solutions
Date: February 2017

Dart Appraisal, a nationwide, independent appraisal management company (AMC), has grown its panel of appraisers in Washington state by 15% since October 2016. Washington, and more specifically greater Seattle, has been one of the most competitive real estate markets in the country for the past year.

“It’s no secret that Seattle has been, and remains today, an incredibly hot market,” said Michael Dresden, president of Dart Appraisal. “AMCs across the industry have been experiencing extended turn times for appraisal reports. To best serve our clients that are based or lend in the Pacific Northwest, we wanted to ensure we had the most robust appraiser panel available. That’s why we personally went into the market, to meet and get to know the appraisal professionals working in and around Seattle.”

The Michigan-based AMC hosted four networking events in Seattle, two in October 2016 and two more in January 2017. In-person appraiser recruiting is fairly uncommon in the AMC space, as most companies rely on electronic methods to build their appraiser panel. Dart Appraisal requires their panel appraisers to be state-licensed or certified and have completed at least 1,000 appraisals.

“We’ve spent 24 years developing our appraiser panel, and we place a strong emphasis on getting to know the appraisers we work with,” Dresden remarked. “By meeting local appraisers face to face, we were able to substantially grow our panel as well as have productive conversations about how we can best work together for the benefit of our lender clients.”
​
Dart Appraisal.com is an independently-owned, nationwide Appraisal Management Company (AMC) founded in 1993. For more than two decades, the company has built a reputation of superior customer service combined with innovative technology to deliver accurate and timely residential appraisals. Thousands of orders are tracked in real time using a proprietary order management platform designed and maintained by Dart Appraisal. With a singular focus on appraisal management, Dart Appraisal has developed a direct relationship with both appraisers and clients. The company manages a nationwide appraiser panel that requires appraisers to meet stringent quality standards to ensure local competence and reliable appraisals. www.dartappraisal.com.            

• ​For more information on Dart Appraisal, contact Marc Tatarcuk & Michael Dresden.  

Dear Dr. Carson,
Congratulations on your nomination to serve as the next Secretary of the U.S. Department of Housing and Urban Development . Your unique background and qualifications will undoubtedly bring a sense of energy and even renewal to one of the economy’s most important governmental departments.

That’s correct. I strongly believe HUD has a vital role to play in our economy. While political pundits and talking-heads focus on your views on affordable housing and plans for urban renewal, very little has been said about an institution which has become a driver in the American economy—and one which will fall under your oversight shortly: Ginnie Mae. 
This is certainly not to belittle any of the other matters discussed in your recent testimony before the U.S. Senate.  However, I hope you’ll agree that you’re inheriting an important entity of which too little is understood by far too many.
Ginnie Mae is the entity which explicitly guarantees payment of principle and interest to bond holders purchasing government-sponsored home loans. In essence, the wholly-owned government corporation facilitates a role for government backed mortgages in the securities markets. That includes the FHA and VA mortgages—which have become workhorses in the mortgage industry.
Ginnie plays an indispensable role in making homes affordable for first-time homebuyers and lower-income borrowers. Today, Ginnie has a portfolio of over $1.7 trillion in mortgage-backed securities and real estate mortgage investment conduit programs.  Moreover, more of that portfolio than ever before was originated by nonbank lending companies, rather than depositories.
In the summer of 2016, Ginnie even eclipsed the portfolio of government sponsored enterprise, Freddie Mac — long considered an engine for the mortgage and housing industry. According to the Urban Institute, the total outstanding balance of Ginnie Mae mortgage-backed securities was $1.624 trillion as of May 31, compared to $1.623 trillion in outstanding Freddie Mac MBS. The Urban Institute study also revealed that Ginnie Mae issued $41.6 billion in single-family MBS in May, compared to Freddie Mac's issuance of $29.9 billion of single-family mortgage securities, which Freddie calls participation certificates.
Ginnie Mae has become an important influence on the mortgage and housing industry as well as on the market—and the American economy. But, as I write this, I note that Ginnie Mae has lost its longtime president, Ted Tozer. I also note that Ginnie Mae is understaffed in its oversight of the $1.7 trillion in home loans; forced to rely in many cases on contractors rather than employees.
Tozer and I have pleaded on numerous occasions for additional assistance, but none has been forthcoming. Both of us worked tirelessly during our tenures to win support and funding adequate for Ginnie Mae’s enormous mission, but there is still far more work to be done.
Budget allocation will be a key part of your new position, Carson. How you choose to support Ginnie Mae (and fight for funding before Congress) will have a direct impact on the American economy. As you step into your new position, you have on your hands an entity seeking a new leader which is understaffed and short on resources; yet responsible for a massive chunk of the U.S. housing market. 
The composition of its portfolio is in uncharted waters, and many of the largest, most stable enterprises in our economy (global banks, etc.) have pulled away from a position allowing them to purchase distressed assets should Ginnie’s portfolio take a turn for the worse. Ginnie Mae is an economic powerhouse and an institution which helped the American housing market stabilize in the years of the Great Recession and after. It is also, left unattended, a powder keg.
I call upon the administration, at your recommendation, to name a new president for Ginnie Mae with a track record of proven success in the mortgage industry—someone who understands the unique characteristics and potential of Ginnie Mae and its role in the economy. I further call upon HUD to revisit the budget for Ginnie Mae, providing it adequate resources for oversight of its massive portfolio. 
Ginnie Mae has become every bit as important to the housing and real estate industry as either of the GSEs.  It’s time for us to provide it with the resources needed to guarantee its continued success.
Carson, I wish you the very best as you step into your new role at HUD, and I have no doubt you will guide it to new heights of achievement. I offer these recommendations because I believe the importance of Ginnie Mae has been overlooked by too many for too long.
I believe a healthy Ginnie Mae is a key ingredient to a healthy housing market and, in turn, a stronger American economy.  And I believe that you have already demonstrated that you are more than willing to break with convention and history to do what’s best for the country.  I urge you to make part of your agenda familiarizing America with the nuances of this unique institution, and hope you will take all steps needed to provide it with stable and well-supported leadership.

• Joseph Murin is the chairman of JJAM Financial Services in Pittsburgh. He has a held a number of leadership and executive positions throughout the mortgage industry over the course of his 40+ year career.” Murin has served as president of Ginnie Mae (2007–2008), after being nominated for the position by President Bush on Oct, 11, 2007. He served as a consultant to the White House until he was confirmed by the Senate in June, 2008.
• ​​​​​Source: HousingWire Blog - February 7, 2017

Credit Plus presents this month's edition of America's Mortgage News which focuses on Relationships for February. All Credit Plus' American Mortgage News episodes are accessible through their YouTube channel. Click this link to view prior editions.

• ​For more information on Credit Plus, and how their robust information services line of more than 160 products strong can benefit your lending organization, contact Michael Crockett.