MBA Secondary Market & Government Housing Conference 2010

This conference was probably the most successful MBA Conference for Quality Mortgage Services for 2010.  The buzz is repurchase and rebuttal to repurchase claims of loans made approximately 4 years ago.  There are a number of investors concerned with the volume of repurchase claims and in order to reduce their risk of mortgage backed security of pooled loans, they want to insure they have a good pulse on the quality of loans that are purposed which why they are looking for a post closing quality control company like Quality Mortgage Services to handle these audits and rebuttals to repurchase claims.

NOW TO THE CONFERENCE:

John Courson, President, Mortgage Bankers Association

“Houston we have a problem…” The message resonated throughout mission control as NASA faced mission failure.  Mr. Courson used the Apollo Mission analogy to describe the mortgage crisis and he took this opportunity to explain the crisis management of the mortgage industry is about over and the mortgage industry is on the right track of recovery.

I am very impressed with the level of the MBA’s executive staff and how they have been proactive since David Kettle was absorbed into the mortgage crisis.  The past chairmen through the incoming chairman have made a positive impact on problem solving with policy makers.

I loved the story Mr. Courson told about a discussion he had with Barney Frank. Barney Frank, “People hate you and people hate me for hanging around you.”

- MBA is where all mortgage groups come together to work together to represent the mortgage professionals on Capitol Hill.

-The last 2 years MBA testified 26 times addressing all the mortgage industry’s issues and changing policies.

-Most recent lobby success is the defeat of the Risk Retention in the Finance Reform bill.

-Latest legislative challenges is the Merkley-Klobuchar Amendment

-MBA is reshaping the entire Secondary Market in mortgage banking

-Mortgage Action Alliance (MAA) is the grass roots of the MBA. Being part of MAA we can successfully complete the mission. “I’m proud to be a mortgage banker.”

-200,000 MBA member employees only 10,000 are members of MAA.

Mortgage Action Alliance (MAA) is free to anyone.  It is free and it gives you a direct line to your elected officials.  It is based on your zip code.  When the MBA has a policy it is addressing you will receive a notification. All you have to do is click on the take action link and a letter is sent to your elected representatives.  Click on the following link to register: http://www.mbaa.org/Advocacy/MortgageActionAlliance

DAVID STEVENS, Assistant Security, Housing Urban Development

I continue to be impressed with this man.  He is real with no agenda except working for home ownership.  He did not read from the teleprompter and spoke as “He calls it as he sees it” approach with no political correctness stopping him.  This guy is all business.

-Washington does not trust the mortgage industry at all.  He explained this detail unfortunately he spoke too fast from my head, eye, and hand coordination.

-We correct the housing market

-Life support (mortgage industry) sustained by the government

-HAMP 1.2 million making payments in the trial modifications

-HUD is dealing with stress in unemployment and reestablishing home equity is the next effort

-Foreclosures is not the main effort

-Working on the housing market stabilization

-1 out of 4 Americans have negative equity in their homes

-Help people transition if they go into foreclosure

-The current market rally is based on the global sick market

-1.9 million FHA loans in ’09

-FHA did more purchase transaction 1Q10 than Fannie and Freddie combined

-Have to get the private sector back into the market

-1100 lenders were shut down in 1-year more than any decade since FHA’s inception

-$300 million per month in insurance premiums will be earned if the increase is approved by the end of first year

-FHA foreclosures down from what the data experts provided to congress

-The neck generation is larger than the baby boomers which will require more new construction and positioning FHA to be able to adjust for the future demand for housing and lending

TED TOZER, President, Ginnie Mae

-90 days on the job

-Freddie and Fannie trying to restart the market

-GSE – Establishing the standards for best practices and looking very closely and reevaluating for a better mortgage future

OTHER

-Federal Home Loan Bank is required to set aside 10% of profits  “$60 Million” for grant loans and affordable housing projects

-Fannie and Freddie data defines loan quality for industry standards so that the secondary market knows what they are purchasing (I don’t know about this statement.  I like to think they direct loan quality. Defining loan quality is still their short fall because they do not require the mortgage broker to perform Quality Control like FHA.  Also, the GSEs have not been due diligent about capturing post closing quality control reports from all Seller/Servicers.  Until the GSEs change their model to include the point of origination, they will not have the definition of loan quality. They need to not soley focus at the point of underwriting.)