Wholesaling Updates

There is a new jumbo wholesale lender, NexBank SSB. The Dallas, Texas-based bank noted its jumbo mortgage product, as a service, offers less execution risk for brokers and funds anywhere from $1.5 million to $10 million.

Commercial Capital Inc. announced it is engaging in a Commercial Mortgage Training Initiative to give residential mortgage brokers the information they need to prospect confidently for commercial mortgage deals. The training consists of a 45-minute to 1-hour presentation on commercial loan analysis.

Following the presentation, “brokers will be able to confidently speak to borrowers, property owners and property brokers using the language of the commercial mortgage market,” Commercial Capital said in the announcement. Plus, brokers will be able “to do the initial analysis of a commercial mortgage deal that will provide the information needed to know if it is viable and fundable.”

Brokers in New York, New Jersey and Connecticut can contact the Jericho, N.Y.-based commercial lender for a live presentation at their office, while brokers nationwide can access the information through a teleseminar, according to the announcement.

Freddie Mac recently announced it made some changes to its seller requirements as a means to make the mortgage finance process simpler and more efficient.

The secondary lender reminded originators in a bulletin that previously announced revised postsettlement fees went into effect for mortgages with settlements on or after Nov. 1. Home Possible delivery fee rates increased by 100 basis points, except for purchase loans where the borrower’s income does not exceed 80 percent of the applicable area median income and for properties located in eligible disaster areas. The revisions also included a 25 BPS increase to secondary financing for Home Possible Mortgages with an Indicator Score less than 700, and to certain mortgages with an 80/10/10 secondary financing structure and an Indicator Score less than 700.

Freddie also noted that, as of Oct. 20, it no longer buys adjustable-rate mortgages with application dates on or after Sept. 13, 2007 that have an initial period of three years or less and margins of 400 basis points or higher. Last month also held updates for its Loan Prospector to apply the higher of the 2006 or 2007 area median income limits to Home Possible Mortgages and also Alt 97 Mortgages and Freddie Mac 100 Mortgages with secondary financing that is an Affordable Second.

Among other changes, Freddie said it was revising its guide to include authorized changes for the California Security Instrument, the Pennsylvania Note and Security Instrument, the Virginia Note and the Washington Security Instrument, as well as the Multistate Construction Conversion Modification Agreement – Fixed Interest Rate, in order to keep Uniform Instruments compliant with various state laws.

Freddie said it has become aware that loan originators may be exploiting the Section 6.8 provision of the guide to modify or add provisions to the Uniform Instruments that would otherwise not be eligible for sale. Currently, Section 6.8 permits changes or additions to the Uniform Note or Security Instrument if the changes are stated in a Note addendum or Security Instrument rider that provides they will have no further force or effect upon sale of the mortgage. But starting Feb. 1, 2008, Freddie will no longer accept any changes or additions to Uniform Instruments unless the modifications are expressly permitted under Section 6.8.