Troy Sage mortgage and real estat news – Metlife exiting the Mortgage Industry

by troysage on January 12, 2012

in Buyers

Mortgage News by Troy Sage.  What will happen to the mortgage industry now that Metlife leaves the scene?

How MetLife’s Exit Impacts the Industry – Will Others Follow?
Information provided by by Rob Chrisman

Some would say it is grim out there, and no, I am not talking about Hostess Brands, the manufacturer of Twinkies, Ho Hos, and Ding Dongs cake snacks, filing for Chapter 11 bankruptcy. Is it right that 4,300 of our brethren were notified of losing their jobs, after a potential sale fell through, in a letter to clients with a dancing Snoopy in the letterhead?

“To Our Valued Customers…We have made the decision to winddown all MetLife Home Loans’ (MLHL) forward origination business, including the Institutional Lending Group (ILG)… We will continue to honor all of our loan commitments and will maintain the necessary staff in place to ensure each of your loan transactions closes (subject to the loans meeting all investor and MLHL guidelines). Our sales and support teams will work with each of you to ensure this transition is as transparent to your customers and referral partners as possible. In return, we ask that you keep your commitment by delivering your locked pipeline in accordance with our agreements…”

The top five wholesale lenders for the 3rd quarter, volume-wise, were in order: Provident Funding, U.S. Bank Home Mortgage, Wells Fargo, Flagstar, and MetLife Home Loans. The top twelve correspondent lenders for the 3rd quarter, volume-wise, were in order: Wells Fargo, BofA, Chase, GMAC, Citi, Flagstar, PHH, U.S. Bank, BB&T, Franklin American, SunTrust, and MetLife. And when one adds in retail originations to the other two channels, for the 3rd quarter MetLife clocked in at #10 (per National Mortgage News).

I received this note: “If Fannie and Freddie don’t wake up and expedite their approval process the industry will be gone. Private investors such as Wells are bogged down in operations. Companies aren’t long for this world when they don’t have agency approval – we saw what happened last month to O 2 Funding. Every lender out there is grabbing onto the apron strings of the agencies; the same agencies that many in the government want to shut down! Where will that leave things?”


On top of this, investors in Residential Capital Corp., which does business as GMAC Mortgage, have organized out of concern that the residential lender and loan servicer could be headed toward bankruptcy. Parent Ally Financial had hoped to take ResCap/GMAC public in 2011 but ultimately scrapped those plans; it has since cited “risk factors” with the unit but has not specifically discussed a possible bankruptcy filing. And another top investor, PHH, was downgraded by S&P and raised its doubts over continuing as a “going concern” if it failed to improve its liquidity. PHH is also being investigated by the CFPB regarding its mortgage insurance practices.

One can just hear large lenders talking in their boardrooms. “Do we really want to be in this business, given the regulatory, legal, financial, and public relations issues? Where the value of servicing has dropped dramatically in the market, and could drop further depending on Basel III? Where the mortgage insurance tax deductibility has gone away? Where every week brings a new lawsuit – when will we have more attorneys on staff than originators?”

The shutdown will cost insurer MetLife about $100 million. “We continue to move forward with our plans to cease being a bank holding company,” the CEO said last month. Servicing and reverse mortgage origination will continue, at least at this time. John Calagna, as spokesman for MetLife, noted that most of the 4,300 employees at the unit will lose their jobs, 20% of whom are in Irving, Texas. (Add this to Bank of America’s announced 30,000 job cuts, and Citi’s 4,500, and one really starts to make a dent in financial services.)

Perhaps some will contact Mason-McDuffie Mortgage Corporation, headquartered in Northern California. The company has been around since 1887, is a mortgage banker and broker, and is licensed in 28 states. MMCD is seeking branch managers, LO’s and all operations positions to join its expanding workforce. “MMCD enjoys branch operations throughout the US with fulfillment centers in the Bay Area, the Northeast and adding new centers in Southwest, Midwest and East. Mason McDuffie Mortgage is a privately held mortgage banking company funding jumbo, conventional, government, and rehab loans, and has its Fannie, Freddie, and Ginnie approvals. Contact Brian Moggan at with a resume.


That was one ray of good news. The news is not much better elsewhere. JPMorgan Chase’s mortgage originations in 2011 were the lowest in 10 years. A video of Jamie Dimon discussing his housing forecasts can be seen on CNBC, and mentions that the bank is originating $10 billion in mortgages per month. HousingWire calculates that when the production numbers are put together, JPMorgan Chase is likely originating its least amount of mortgages in the last 10 years.

Lastly, Michael Williams announced his intention to step down as CEO of Fannie Mae after 21 years with the agency. He’s had that post since April 2009, and is viewed as the leader in guiding Fannie Mae through the transition into conservatorship and in “directing Fannie Mae’s efforts to enhance loss mitigation strategies, including loan modification and refinance options to help struggling homeowners.” FHFA will work with the Fannie Mae board of directors in searching for a new CEO.

Folks out and about looking for work might be interested in hiring trends, especially in the mortgage industry in 2012. Here are some presented by Drew Waterhouse, Managing Director of Hammerhouse.

Amid declinations to comment, Goldman Sachs and Citigroup are planning to market about $1 billion of bonds backed by commercial property loans as soon as next week as demand for the debt recovers amid optimism the U.S. economy can withstand Europe’s fiscal crisis. The deal will probably be the first of its kind for 2012.

When I was at Cal grappling with the MBA requirements, taking accounting classes was never a high priority. It should have been, and in the mortgage banking biz, the MBA is here to help you remember if debits are on the left and credits on the right (yes) or whether you can allocate a pair off loss to individual loans (not really). “Taking place on Thursday, January 19, 2PM EST, CampusMBA and Mortgage Banking Solutions will present Mortgage Accounting Part I: Drilling into Mortgage Accounting. The following topics will be covered: Essence of Accounting, Measurement, Risks and Results, The Mortgage Road — How it Works, Mortgage Banking Process Flow — Who Does What, Performance Metrics — KPIs, Internal Controls, History of Accounting, Financial Reporting Complexity vs. Simple & Easy, Accounting Methods & Accounting Systems, GAAP — Rules of the Road, The Audit and your CPA. Check it out. Parts II and III are the following weeks.

This morning we had the weekly MBA application stats. Sometimes folks ask, “What constitutes an application?” The MBA notes that, “We ask our participants to follow the HMDA definition of an app, the key portion of which is a credit pull. As you know, the HMDA definition and the RESPA GFE requirements are not quite aligned.” Maybe someone with time on their hands should align the two! This morning the MBA released last week’s application numbers which showed an increase of 4.5%. Refinancing was up over 3%, and purchases were up over 8% – nice to see – although refinancing still accounts for almost 81% of application activity.

At least the markets continue to be quiet: like Monday, Tuesday we were virtually unchanged with the 10-yr closing at 1.97% although MBS prices were worse by about .125. The focus on Tuesday was on the Treasury auction supply, announced last week so there is no surprise, and continued rumblings out of Europe that will be with us for years. Generally speaking, Reuters reports that, “Supply and demand appear very favorable in aggregate for 2012 with projected demand from the Fed, banks, REITS, and money managers well above estimated net supply. Still, there will likely be times when there will be temporary imbalances with higher supply.”

Today we’ll have the second leg in the latest round of Treasury auctions with $21 billion 10-year notes at 11AM CST. So far rates are slightly better with the 10-yr at 1.94% and agency mortgage prices better by about .125.


Real Estate News by Troy Sage

Information provided by by Rob Chrisman

Temecula Home Search Temecula Home Values

Post by Troy Sage

When the expression “Covering All Angles” comes to mind, we think of perceptive people who stand out from the crowd because of their foresight. By anticipation how any given scenario may play out they prepare a solid plan based on hard facts and respond by always providing their clients with a winning plan. Meet Troy Sage, a true original who enjoys being his own man and, constantly seeking new and innovative ways to improve the way he conducts his business and the people he serves. As a sought after real estate consultant for over 20 years, Troy utilizes many of the skills he developed in his musical career to grow his business. Attention to detail and his desire to excel, his determination to offer exceptional service while “Covering All Angles” keeps clients coming back time and time again. For Troy, client satisfaction has always been his prime concern. “By listening carefully to my client’s needs, I prepare a personal plan to ensure that they are kept well informed throughout the entire process in order to make sound decisions based on solid facts. Above all, it’s about the connection between my clients and myself. I work hard to personally nurture each relationship and am dedicated to helping my clients reach their real estate dreams,” Troy says smiling. The end result is that Troy has cultivated an enviable base of loyal clients who have spread the work to family and friends and who count on him for all their real estate needs. As an established trainer Troy works with new and seasoned real estate professionals teaching a variety of classes and techniques. Establishing a custom game plan for each professional and coaching others gives Troy a true sense of satisfaction and of sharing and growth. Troy is a Certified Distressed Property Expert (CDPE) and offers the most professional short sale facilitation and processing services available. Clients know that the short sale process can be a long and arduous task but left in Troy’s expert hands, they know that he will not only predict what problems might arise, but that he will have a proactive solution on how to best handle the situation. His positive attitude and calmness go a long way when dealing with the Banks, the Buyers, the Sellers, the Agents and Escrow. Troy not only keeps all sides well informed and up to date but is there to answer any questions that come up along the way.

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