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Housing Recovery ‘Fundamentally Strong’: Lennar CEO

Fri, 15 Mar 2013 22:05:54 +0000

Miller also said he is not concerned by the huge number of investor-owned single-family rental homes. He believes that renters may end up as buyers of these homes, but others are not so sure.

(Read More: Housing Recovery Leaves Some Behind)

“I don’t buy it,” said Mark Hanson, a California-based housing analyst. “Yes, the investor will give them a chance to bid on it, but in this market Wall Street will put the houses on the MLS in hopes of a bidding war.”

Home prices are already moving higher across the nation, largely due to a severe lack of for-sale supply. Miller is unconcerned about the swift price increases and points to a mortgage credit thaw as a counter-balance.

(Read More: Home Buyers Are Back, but Where Are the Houses?)

The big banks say it is not so much a thaw on their side as improving consumer balance sheets.

“Credit standards haven’t changed in terms of solid fundamentals around income and documentation,” said Kevin Watters, CEO of mortgage banking at JPMorgan Chase. “What has changed a little bit: Consumers’ balance sheets have improved, so their debt is down.”

Article source: http://www.cnbc.com/id/100558148

Is the Refi ‘Apocalypse’ Really Upon Us?

Thu, 31 Jan 2013 03:10:32 +0000

In Bethesda, Maryland, Apex Home Loans CEO, Craig Strent, says a rise in rates could actually bring in more business in the short term.

“There is a huge population that have benefitted from adjustable rate mortgages. When the rates adjusted, they adjusted down. Those homeowners have been riding those low, one-year arms. If they start to hear about rates going up, they may come out of the woodwork to lock into fixed rates,” says Strent.

That may be, but 88 percent of loans outstanding today are fixed, according to the Mortgage Bankers Association. Just 12 percent are adjustable rate. Even if rates do not rise any higher than they are today, which they may not, they would have to fall below last year’s lows to see the high refinance volume of 2012 continue in 2013.

(Read More: Link Between Credit and Mortgages: Not What You Think)

“The refi apocalypse is upon us,” says Mark Hanson, a mortgage analyst in Northern California. “The thought is that there are a bunch of homeowners on the fence who haven’t refi’d who will all jump in thinking they will miss out. The theory is 100 percent nonsense. The series will simply plunge. That’s because after 16 months of sub 4 percent rates — and every bank loan officer and mortgage broker doing everything they can after a long mortgage banking income drought that ended with Twist — there is nobody left to refi. In fact, the only reason refi applications stayed flat in Q3 and Q4 was because they passed a new law allowing refinances regardless of the LTV [loan to value]…the HARP unlimited LTV refi.”

While the Federal Reserve does not set mortgage rates, a signal that the economic recovery is improving and even the slightest hint that the Fed could end its purchases of mortgage-backed securities, could push rates slightly higher.

“The Fed likely won’t use its statement to markets to finger a specific date on which QE3 will end, but that won’t stop investors from guessing. If the herd believes that QE3 will terminate within the next 6 months, mortgage rates will likely rise. If QE3 is believed to extend into 2014 and beyond, mortgage rates will likely fall,” writes Dan Green of Waterstone Mortgage in his blog.

(Read more: What to Expect from Interest Rates This Year)

While refinances may suffer under even slightly higher rates, more important to the housing recovery is new mortgages to purchase homes. Purchase applications are still running at half the rate they were in 2007, when last the Dow hit a new high. Small moves in mortgage rates do affect purchasing power, but lending standards are a far bigger driver today. New regulations for lenders and a consolidation of lending overall to the mega-banks are certainly slowing, and in some cases stalling, the process for some would-be buyers.

(Read More: Cities That Are Most Prepared for Retirement)

Article source: http://www.cnbc.com/id/100420382

CitiMortgage CEO on Tight Credit: ‘There’s Nothing Wrong with People Making Profits’

Tue, 02 Oct 2012 18:20:26 +0000

Mortgage rates are at record lows, but they could be even lower.

Several reports recently have documented why the spreads between mortgage bonds and mortgage rates have widened so much, but few have agreed as to why mortgage rates have not fallen lower, given the Federal Reserve’s latest announcement that it would buy more agency mortgage backed securities.

The mortgage lending landscape has changed dramatically since the financial meltdown of 2008, with some ramping up volume and others exiting the business. Wells Fargo
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] mortgage origination was up a whopping 72 percent in the first half of this year from the same time a year ago, according to Inside Mortgage Finance. Bank of America
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] originations were down 65 percent. Underwriting is tight, and lenders make no apologies, but mortgage banking profits are also way up, and lenders make no apologies for that either.

“There is nothing wrong with people making profits, I think both sides of the system need to be healthy. I don’t want to defend lenders, but I will say that the amount of infrastructure it takes to do these billions and billions of dollars of loans is not insignificant,” said Sanjiv Das, CEO of CitiMortgage
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]. “We’ve had to build new sites, had to hire thousands of people, train them, make sure they are doing the right sets of activity. Remember, we are dealing with huge amounts of regulatory pressure at the same time, making sure that every I is dotted and every T is crossed.”

Das points to huge loan volume increases, especially with refinances, as more borrowers try to take advantage of record low rates. He also says that regulatory uncertainty has lenders strapped in what they’re willing to do now, especially given a still murky atmosphere surrounding mortgage put-backs by Fannie Mae and Freddie Mac on legacy loans (put backs: when Fannie and Freddie make banks buy back bad loans).

He also points to great uncertainty surrounding the potential fiscal cliff. The loss of the mortgage interest deduction, as well as the potential end of the current tax exemption on short sale debt forgiveness, could have a halting effect on the current housing recovery. (Read More: Housing Alert: Short Sales May Be in Big Trouble)

“Housing is beginning to show its first signs of recovery: Home prices look like they have bottomed, there’s a lot of credit that’s being made available, at least through refinancing right now, and I think it’s a good thing,” notes Das. “I think that momentum should not be disturbed by any structural changes with respect to tax policies right now. It could be addressed 2-3 years down the pike, and I think short sales are a very important mechanism for people to be able to get out of their underwater homes. It should continue to be made easy not more difficult.”

Das says that while banks like CitiMortgage are working more quickly through the backlog of millions of delinquent mortgages, there will not be a flood of foreclosures hitting the market this fall and winter. A change in tax policy on short sales, however, could add to the foreclosure volume, as we noted in an earlier post. Citi, like other lenders, is using more alternatives, like rental programs for troubled borrowers, rather than eviction, but foreclosures will continue to work through the market for several years to come. (Read More: An Enigma in the Mortgage Market That Elevates Rates)

That continued dress, coupled with ever more litigation, regulatory uncertainty and the looming fiscal cliff, will keep mortgage rates from falling as well as some, like the Federal Reserve, might have hoped. In any event, as low rates spur more refinances, banks have and will raise rates a bit just to manage the demand.

Questions? Comments? And follow me on Twitter @Diana_Olick

Article source: http://www.cnbc.com/id/49258201?__source=RSS*blog*&par=RSS

Wells Fargo Bankers Toting Guns Aim at 40% of Market: Mortgages

Tue, 12 Jun 2012 12:58:08 +0000

In mid-January, sales managers in
Wells Fargo Co. (WFC)’s mortgage unit, the largest in the U.S.,
gathered at a hotel south of San Francisco dressed as cowboys,
six shooters strapped to their hips.

The invitation said “40% or BUST!!” The goal: A bigger
share of the business than they already control — about 34
percent of all U.S. home lending and 13 percent of mortgages for
purchases in the first quarter. About a dozen managers urged the
audience of 500 loan officers to lend more, according to two
attendees who asked their names not be used because they aren’t
authorized to speak publicly. Onstage, the men had fake
mustaches and wore red-flannel shirts and jeans, the women long
dresses like those in a movie western, one of the people said.

Chief Executive Officer John Stumpf has said the bank
doesn’t have market-share goals, even as it held the San
Francisco rally and encouraged salespeople in New York and
Atlanta. Regulators such as Edward J. DeMarco, acting director
of the Federal Housing Finance Agency, have expressed concern
about increasing concentration in lending, and analysts say the
housing market has become too tied to the San Francisco-based
lender since it successfully navigated the 2008 credit crisis.

“The part that amazes me is that back in the early days
Wells Fargo said, ‘we don’t want as much market share,’ ” said
David Lykken, a managing partner at Austin, Texas-based Mortgage
Banking Solutions, who has more than 37 years of mortgage-
industry experience. “Now, in many ways, they are the market.”

Record Share

Wells Fargo’s first-quarter market share for all mortgages,
including new homes and refinancings, equal to $130 billion, is
the most on record and more than triple the closest competitor,
JPMorgan Chase Co. (JPM), according to Inside Mortgage Finance, a
trade journal. It’s up from 30.1 percent in the preceding three
months and 13.3 percent in 2006.

Mortgage originations and sales accounted for 24 percent of
the lender’s fee-based revenue in the quarter, with another 2
percent coming from servicing, according to an April 13
presentation. The lender reported $2.9 billion in income from
mortgage banking as the Federal Reserve pushed down borrowing
costs and government refinancing programs encouraged lending.

The bank wants more. The Jan. 19 sales rally at the San
Francisco Airport Marriott Waterfront hotel in Burlingame, about
15 miles south of San Francisco, was billed as a “Purchase
Stampede” in a memo e-mailed to employees, a copy of which was
obtained by Bloomberg News. The invitation featured six horses
pulling a stagecoach, the bank’s traditional logo, and trailing
a banner with the words: “40% or BUST!!”

One man wore chaps and showed off a lasso, while some women
wore corsets, one of the people said.

Motivating Salespeople

The rally was aimed at motivating salespeople to lend more
for new-home purchases, national sales manager Greg Gwizdz said
in a June 8 telephone interview. Wells Fargo doesn’t have a
“stated market-share goal” and if its portion grows it’s “a
result of customers choosing us,” he said.

The bank’s retail channel controlled 13.3 percent of the
market for loans to buy a house in the first quarter, according
to data compiled by Inside Mortgage Finance. The rally didn’t
focus on other types of originations, including refinancings
completed by Wells Fargo salespeople, or correspondent and
wholesale channels, where the bank buys loans from other
lenders, Gwizdz said.

“We are almost backing into this,” Gwizdz said. “If we
had some crazy high market share number, in order to get that
number a lot of people came here to get their mortgage and they
came here to get their mortgage because we’re doing something
right.”

Skits, Discussions

The event gathered salespeople for a day of motivational
speeches, skits and discussions about ways to gain a greater
slice of the market, the people said.

Senior mortgage executives attended the rally. Drew
Collins, billed on the invitation as a “special guest,” is a
division sales manager and senior vice president based in the
Sacramento area, according to Vickee Adams, a spokeswoman.
Arlene Allert, a retail regional sales manager and vice
president based in the Bay Area, also attended, according to the
people. Continental breakfast was served and the coffee ran dry,
one person said.

Adams declined to make Collins and Allert available for
interviews.

Salespeople elsewhere are receiving a similar message. In
New York, loan officers are encouraged to reach for 40 percent
or more, according to a person familiar with the strategy. In
Atlanta, they’re induced with prize drawings to file more
applications and meet more real-estate agents, according to
another person, who described the efforts as aggressive.

Customers’ Needs

Stumpf has repeatedly said he doesn’t care about Wells
Fargo’s market share, and is more concerned with serving the
needs of customers. When pressed by analysts to comment on the
lender’s growing investment bank, and its high growth rate and
steady progress up the league tables, Stumpf said in January he
couldn’t “care less.” He reiterated that view May 31, when
asked by Sanford C. Bernstein Co. analyst John E. McDonald
about the company’s growing command of the mortgage market.

“I don’t care if we’re 20 percent of the market or 10
percent or 30 percent,” Stumpf said.

Wells Fargo executives have said it wasn’t their goal for
the company to become the largest lender. Refinancings have
bolstered market share, according to Chief Financial Officer
Timothy Sloan. These will account for about 68 percent of the
market, or $870 billion this year, according to projections from
the Mortgage Bankers Association.

Market Position

“If we’re talking about the business two years ago, I
don’t think we would have imagined that our market share would
be where it would be today,” Sloan said during a May 1 investor
conference. “We’re going to continue to be focused in the
business. We’re going to continue to want to grow it.”

In every investor presentation except one since the
beginning of 2011, Wells Fargo has included an early slide
listing the businesses where it holds a No. 1, No. 2 or No. 3
market position.

“I’ve never been a big believer of market share for market
share’s sake,” said Ralph Cole, a senior vice president of
research at Portland, Oregon-based Ferguson Wellman Inc., which
manages $3.1 billion, including Wells Fargo shares. “If their
underwriting standards are dropping to achieve it, that’s what
would worry us as investors.”

Standards Maintained

There aren’t signs those standards are slipping, said Cole
and Lykken, as well as Clifford Rossi, a former risk manager and
managing director at Citigroup Inc. (C) who’s now at the University
of Maryland’s Robert H. Smith School of Business, and analysts
including Paul Miller at FBR Capital Markets in Arlington,
Virginia. About 90 percent of Wells Fargo’s originations are
sold to Fannie Mae, Freddie Mac or Ginnie Mae, Mike Heid, the
Des Moines, Iowa-based head of the mortgage business, said May
22.

Wells Fargo shouldn’t be blamed for its dominance since
it’s a function of rivals’ retreat and not its own actions,
Pacific Investment Management Co.’s Scott Simon said May 7 at a
Mortgage Bankers Association conference in New York.

“It’s not Wells Fargo’s fault they got so big,” said
Simon, the mortgage-debt head at Newport Beach, California-based
Pimco. “If Wells Fargo went back to 20 percent, tried to cut
themselves back more, it’d be hugely restrictive on credit.”

Regulators have taken notice of the concentration. DeMarco, acting director of FHFA, the overseer of Fannie and
Freddie, has said he’d like to see a more diverse mortgage
market.

Origination, Servicing

“We have seen a great deal of concentration in mortgage
origination and in mortgage servicing in recent years,” DeMarco
said May 15 at a speech in Washington. “Policymakers need to
think hard about where and how regulatory requirements
contribute to this growing concentration in the marketplace, and
what might be done to reverse this.”

At a May 31 conference, Bernstein’s McDonald asked Stumpf
whether the company was perhaps “getting too big.” It also
raises questions about Wells Fargo’s status as a too-big-to-fail
lender whose collapse could imperil the U.S. housing market,
according to Mark Calabria, a director of financial regulation
studies at the Cato Institute in Washington.

“The more concentrated anybody is in a specific market is
worth watching,” Calabria said in a phone interview. “This
potentially increases the possibility that they are looked at as
too big to fail. Were they to get into a lot of trouble the
government would have to do something” to keep credit flowing
to U.S. homebuyers, he said.

Too Good

Cole said Wells Fargo’s history of avoiding many of the
mortgage pitfalls that felled rivals earns them “the benefit of
the doubt.” In 2010, the Securities and Exchange Commission
showed that Paulson Co. had rejected subprime mortgage bonds
from Wells Fargo when it was trying to find assets that the
hedge fund could bet against because the quality of the
underlying loans was too good. The bank hasn’t posted an annual
loss for at least a decade.

Wells Fargo is the most creditworthy of the large U.S.
lenders, according to credit-default swap prices and its stock
is up 18 percent over the last 12-months, outpacing all lenders
in the KBW Bank Index (BKX) except for U.S. Bancorp.

Executives highlight the share they relinquished when firms
such as Countrywide Financial Corp. offered cheaper pricing on
loans with fewer document requirements and zero down payments.
Heid pointed to the four-year period last month with a graphic
titled “Industry leading market share.” Three arrows pointed
to the years of 2004 to 2007 on a bar chart with the note:
“Market share forgone when industry didn’t adhere to
responsible lending principles.”

Countrywide Fate

Countrywide was the largest U.S. mortgage lender as
recently as 2007 before billions of dollars in soured loans
prompted its sale to Bank of America Corp. (BAC) Countrywide’s losses
have continued to plague the Charlotte, North Carolina-based
lender, leading to more than $40 billion in losses and its
retreat from the market. The bank held 4.2 percent of the market
in the first quarter, according to Inside Mortgage Finance.

Wells Fargo is the only mortgage company with a top-5
ranking in originations and servicing each year since 1994,
according to the bank.

“It will be harder for institutions to get by with a
sizeable market share gain because regulators are watching these
guys carefully,” Rossi said. “I’m less concerned than I would
be if we were back in the days when they had all these other
products. It’s the edgier stuff that got us all in trouble.”

For now, Wells Fargo will continue to motivate salespeople
to expand the business: another rally is scheduled for June 21.

To contact the reporter on this story:
Dakin Campbell in San Francisco at
dcampbell27@bloomberg.net

To contact the editors responsible for this story:
David Scheer at
dscheer@bloomberg.net;
Rob Urban at
robprag@bloomberg.net.

Enlarge image

Wells Fargo Bankers Toting Guns Aim at 40% of Market

Scott Eells/Bloomberg

Pedestrians walk past a Wells Fargo Co. bank in New York.

Pedestrians walk past a Wells Fargo Co. bank in New York. Photographer: Scott Eells/Bloomberg

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Article source: http://www.bloomberg.com/news/2012-06-12/wells-fargo-bankers-toting-guns-aim-at-40-of-market-mortgages.html

Pertria Announces New Relationship with Wells Fargo Private Mortgage Banker …

Mon, 12 Sep 2011 04:36:17 +0000

Los Gatos, CA, September 11, 2011 –(PR.com)– On August 1st, 2011, after maintaining a relationship with Wells Fargo Private Mortgage Banker Dan Ross for over 10 years, Pertria made Ross an official member of their real estate team. Potential candidates were interviewed but it was Ross who displayed the ideal combination of strategic and tactical experience now required along with high level access to technology and loan products.
Andrew Arild, Investment Broker and Short Sale Director at Pertria says of the affiliation with Mr.Ross: “Mortgage lending is now one of the number one concerns for buyers and sellers alike. Pertria needed a veteran loan officer with access to direct lending. Dan Ross and Wells Fargo Private Mortgage Banking provide the experience and access to underwriting backed by a wide array of products not available through conventional retail channels.”

Having Mr. Ross’ experience in mortgage lending on site at Pertria is a welcome compliment and will further enhance their ability to provide well-rounded real estate and financial services to their clients.

In 2004 Pastorino founded Pertria, a firm representing residential and commercial real estate sales, investment analysis and property management strategically aligned with like- minded financial professionals including certified financial planners, tax advisors, insurance specialists and specialized legal counsel collectively providing clients with well-grounded strategies focused on maximizing opportunities and mitigating risk.

Firm Facts: Licensed real estate brokers who have passed the Series 65 exam; Experienced in charitable remainder trusts; IRC 121, REO and short sales; divorce; probate and relocation; reverse exchanges, and IRC 1031-1033; Real property management portfolio exceeds $202 million in value; Real property management portfolio rent revenues of $9.2 million annually; Integration of technology providing increased capacity to efficiently process client; financial reporting and resident management; Establishment of rigorous 26 week Real Estate Investment Advisory education course featuring speakers from disciplines ranging from Legal Counsel, Financial Services, Insurance, Commercial, Exchange Coordinators, TIC, Trusts, IRA.

For more information on Pertria and Helen Pastorino, please visit www.pertria.com

###

Article source: http://www.pr.com/press-release/352581

Mortgage Advisor Steve Papapietro Joins Opes Advisors Palo Alto Office

Tue, 09 Aug 2011 23:48:47 +0000

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PALO ALTO, Calif., Aug. 9, 2011 /PRNewswire/ — Opes Advisors, a premier wealth management and residential mortgage banking firm, is pleased to announce that Mortgage Advisor Steve Papapietro has joined Opes Advisors in our Palo Alto office. A Bay Area native, Steve has more than 17 years in the mortgage industry and has assisted thousands of families to become successful homeowners. Steve has consistently achieved President Club designation year-after-year and in 2005 was ranked number one nationally in purchase and total volume for First Horizon Home Loans.

Steve commented, “As a native of the Bay Area and my many years in mortgage banking, I have a deep understanding of the unique attributes of real estate and the housing market. I’m passionate about helping home buyers with their mortgages and I couldn’t be happier to be with Opes. Their commitment to excellent service and financial integrity is a perfect fit for me.” Susan McHan, Opes Advisors CEO, commented, “Steve has an exceptional track record in the Bay Area. He guides clients with his knowledge and resourcefulness, and has proven time and again that building strong relationships is essential to helping clients make big financial decisions with confidence. We’re thrilled that Steve has joined Opes.”

Steve Papapietro Contact Info

Steve Papapietro is a licensed Mortgage Advisor (CA DRE 00993899 and NMLS 633683). He can be reached in the Opes Palo Alto office at 650-319-1642 or spapapietro@opesadvisors.com.

Opes Advisors Palo Alto

Opes Advisors Palo Alto office is located at 555 College Ave, Palo Alto, CA 94306. Office hours are 8:00 a.m. to 5:00 p.m. Phone 650-931-1600. Appointments and walk-ins are welcome.

About Opes Advisors

Opes Advisors is a premier financial advisory services firm that enables clients to make effective financial decisions for today and for their retirement. Through direct offers of wealth management, residential mortgages and real estate investment advisory services, Opes Advisors considers each client’s complete personal balance sheet to improve the outcomes of the financial choices of life. Opes Advisors has offices in Palo Alto, Lost Gatos, San Mateo, Larkspur, San Francisco, Sonoma and Santa Cruz, and Eugene, Oregon. Opes Advisors is licensed by the CA Dept. of Real Estate #01458652 and NMLS identifier 235584. Equal Opportunity Lender. Opes Advisors is a registered investment advisor with the Securities and Exchange Commission (SEC).

www.opesadvisors.com.

SOURCE Opes Advisors, Inc.

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Article source: http://www.prnewswire.com/news-releases/mortgage-advisor-steve-papapietro-joins-opes-advisors-palo-alto-office-127318283.html

Mortgage Advisor Ed Diaz Joins Opes Advisors San Mateo Office

Tue, 09 Aug 2011 05:42:41 +0000

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PALO ALTO, Calif. and SAN MATEO, Calif., Aug. 8, 2011 /PRNewswire/ — Opes Advisors, a premier wealth management and residential mortgage banking firm, is pleased to announce that Mortgage Advisor Ed Diaz has joined Opes Advisors San Mateo. Ed has been providing individuals and families with exceptional mortgage services for more than 20 years. His background includes expertise in financial services, credit consulting and mortgage banking. Ed currently serves as president of the National Association of Hispanic Real Estate Associates (NHORA) of San Francisco and is a founding member of both the Bay Area Networking Group and BNI of Mill Valley.

Ed commented, “My focus has always been on providing mortgage guidance and advice that promotes sustainable home ownership and long-term financial security, and I’m thrilled to offer these services to my clients through Opes Advisors.” San Mateo Branch Manager Julie Thall noted, “Ed’s focus on understanding his client’s financial objectives within the context of their mortgage has enabled him to add real value to the mortgage process. Additionally, he has a strong network of relationships throughout the Bay Area, and his leadership in the real estate and business communities make him a wonderful addition to the San Mateo team.”

Ed Diaz Contact Information

Ed Diaz is a licensed mortgage advisor (CA DRE 01313063 and NMLS 249808). He can be reached in the Opes San Mateo office at 650-319-0616 or ediaz@opesadvisors.com.

Opes Advisors San Mateo

Opes Advisors San Mateo branch office is located at 411 Borel Avenue, Suite 320, San Mateo, CA 94402. Office hours are 8:00 a.m. to 5:00 p.m. Phone 650-931-0600. Appointments and walk-ins are welcome.

About Opes Advisors

Opes Advisors is a premier financial advisory services firm that enables clients to make effective financial decisions for today and for their retirement. Through direct offers of wealth management, residential mortgages and real estate investment advisory services, Opes Advisors considers each client’s complete personal balance sheet to improve the outcomes of the financial choices of life. Opes Advisors has offices in San Mateo, Los Gatos, Palo Alto, Larkspur, San Francisco, Sonoma and Santa Cruz, and Eugene, Oregon. Opes Advisors is licensed by the CA Dept. of Real Estate #01458652 and NMLS identifier 235584. Equal Opportunity Lender. Opes Advisors is a registered investment advisor with the Securities and Exchange Commission (SEC). www.opesadvisors.com.

SOURCE Opes Advisors

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http://www.opesadvisors.com

Article source: http://www.prnewswire.com/news-releases/mortgage-advisor-ed-diaz-joins-opes-advisors-san-mateo-office-127267428.html