Mortgage News Review Wholesale Mortgage News Mon, 08 Sep 2014 13:57:03 +0000 en-US hourly 1 BB&T to Acquire The Bank of Kentucky Financial Corporation Mon, 08 Sep 2014 13:57:03 +0000 BB&T Corporation (NYSE: BBT) and The Bank of Kentucky Financial Corporation (NASDAQ: BKYF) announced today the signing of a definitive agreement under which BB&T will acquire The Bank of Kentucky in a cash and stock transaction for total consideration valued at approximately $363 million. This acquisition will establish a presence for BB&T in the Northern Kentucky / Cincinnati market.

The Bank of Kentucky, headquartered in Crestview Hills, Ky., has $1.9 billion in assets, $1.6 billion in deposits and 32 banking offices in Northern Kentucky and Cincinnati.

Under the terms of the agreement, which was approved by the Board of Directors of each company, shareholders of The Bank of Kentucky will receive 1.0126 shares of BB&T common stock and $9.40 of cash for each share of The Bank of Kentucky common stock. Based on BB&T’s 14-day average closing price of $37.13 as of September 4, 2014, shareholders of The Bank of Kentucky will receive $47.00 per share.

BB&T expects this acquisition to be accretive to earnings per share in the first full year and to exceed its IRR hurdle.

The transaction is subject to customary closing conditions including regulatory approvals and approval of The Bank of Kentucky shareholders.

BB&T has posted a presentation to its website discussing the transaction. To access the presentation, go to, click “About” and proceed to “Investor Relations.”

Deutsche Bank Securities Inc. provided financial advice and Wachtell, Lipton, Rosen & Katz provided legal counsel to BB&T in this transaction.

Keefe, Bruyette & Woods served as financial adviser and Squire Patton Boggs LLP served as legal counsel to The Bank of Kentucky.

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63% of Millennials Don’t Have a Credit Card Mon, 08 Sep 2014 13:55:19 +0000 More than six in 10 millennials (63%) do not have a credit card, according to a new (NYSE: RATE) report. Comparatively, only 35 percent of adults 30 and over have zero credit cards in their wallets.

Millennials are the least likely of any age group to pay their balances in full each month. Only 40% of millennials pay their entire balance every month, compared to 53% of adults 30 and older. Three percent of millennials admit to often missing payments completely, more than any other age group.

“Millennials may think they’re staying out of financial trouble by forgoing credit cards, but they’re actually doing a disservice to themselves and their credit scores,” said Jeanine Skowronski,’s credit card analyst. “The responsible use of credit cards is one of the easiest ways to build a strong credit score, which is essential for qualifying for insurance policies, auto and mortgage loans, and sometimes even a job.”

Recent polls suggest that more Americans, not just millennials, are relying less on credit cards since the Great Recession. But millennials in particular may have a greater aversion to debt since they grew up witnessing its effects on the economy.

“Many millennials are already battling with student loans, which likely makes them even more wary of the potential for debt,” said Skowronski.

One other reason millennials don’t have wallets full of plastic is simply because it is harder for Americans under 21 years old to get a credit card because of new legislation such as the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (the CARD Act).

The survey was conducted by Princeton Survey Research Associates International (PSRAI) and can be seen in its entirety here:

PSRAI obtained telephone interviews with a nationally representative sample of 1,161 adults living in the continental United States. Interviews were conducted by landline (523) and cell phone (638, including 377 without a landline phone) in English and Spanish by Princeton Data Source from July 31-August 3 and August 7-10, 2014. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is plus or minus 3.3 percentage points.

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Moving up out of “starter homes” getting much more difficult for Canadians: CIBC Mon, 08 Sep 2014 13:54:48 +0000 While, on average, Canadian house prices have climbed five per cent in 2014, a new report from CIBC World Markets finds that price increases in mid- and high-priced homes are far outpacing those of lower-priced ones, which is making it increasingly more difficult for many Canadians to move up out of their starter homes.

“The value of bigger and pricier properties is rising notably faster than less expensive properties—widening the gap between starter home and dream house,” says Benjamin Tal, Deputy Chief Economist at CIBC. “Regardless of what your starting point is, and by how much your property has appreciated, the desired move up target is getting further and further out of reach.”

He notes that, historically, most Canadians followed a well-known narrative. “You graduate from school, land your first job, get married, buy your first house, start a family, and after a number of years, move up to a larger house to accommodate your growing family.”

“However, there are many indications that this cycle that dominated the Canadian housing market for decades, is breaking,” he points out.

The report shows that, in Toronto, the price of homes in the $300,000 to $500,000 range rose, on average, about 28 per cent between the first quarter of 2010 and the first quarter of 2014. However, homes priced between $800,000 and $1.2 million jumped over 40 per cent and homes priced between $1.2 million and $1.6 million shot up better than 50 per cent in the same period.

That means the family that paid $500,000 for a house in 2010 has seen their home value climb to about $640,000, a tidy $140,000 increase in value. The problem is the $800,000 home they want to move into has jumped by more than $300,000 to $1.12 million. It’s a similar situation in other urban centres, including Ottawa, Calgary and Edmonton, where the move up category has risen notably faster than the start-up category.

In Vancouver, with the highest prices in the country, that gulf is even wider. Homes that sold for $500,000 to $800,00 have increased by only a few percentage points whereas homes prices at $1.1 million and higher have jumped by close to 18 per cent. The gap between these homes has grown by close to $200,000 in the last four years.

Mr. Tal notes that while, on the surface, the volume of house resale activity in Canada looks stable – with unit sales fluctuating between 35,000 and 40,000 units per month since 2010 – it is anything but. “This apparent stability masks a more complex story,” he says. “Sales of units at the low-to-mid price range fell notably since 2010. Sales rose modestly for the mid-to-high price range, and advanced rapidly for units in the upper end of the market.

“This picture of soft sales at the low-to-mid price range of the single-detached market has affordability written all over it. Tightening mortgage regulations in general, and the reduction in amortizations from 40 years to 25 years for high-ratio mortgages in particular, alongside rising prices worked to price out many first-time homebuyers that dominate activity in this price range.”

He found that the homeownership rate among Canadians aged 25-35 (first-time homebuyers) has fallen from 55 per cent in 2012 to the current 50 per cent. For those over the age of 35, the homeownership rate remained stable.

There is also a big difference between markets with sales and price increases increasingly being driven by activity in the country’s large and pricy cities. Conversely, we’ve seen prices fall in Saint John, Québec City and Victoria in the last year and overall more than one-fifth of sales are now in cities that see prices rising by less than the current rate of inflation.

Homeowners in many of Canada’s larger cities that can’t afford a larger home – or won’t get into bidding wars – are increasingly recognizing they will be in their first home for longer than expected. “With limited move up options, it’s no surprise then that many Canadians choose to renovate their existing homes,” says Mr. Tal.

“Over the past five years, spending on home renovations as a share of total residential investment averaged close to 46 per cent—by far the largest share on record. Renovation activity will remain robust and, in fact, might accelerate in the coming years.”

Mr. Tal says that while home values will be tested when interest rates rise, the asymmetrical nature of the market, the stabilizing role played by the condo market in major urban centres – which is providing a cheaper alternative to single-detached units – and the significant constraints on land availability may all work to limit the damage.

The complete CIBC World Markets report is available at:

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HighTechLending, Inc. expands its Wholesale and Reverse Lending Divisions Mon, 08 Sep 2014 13:54:17 +0000 Headquartered in Irvine, Calif., HighTechLending, Inc., a rapidly growing FHA Full Eagle Regional Mortgage Bank with three platforms, Retail, Wholesale, Reverse providing Conventional, FHA, VA and Reverse residential mortgages across multiple states and specializing in modern technologies and paperless loan process, announced David Smith as its newest Vice President of Operations, a mortgage industry veteran with 20 years of products, pricing and risk management experience.

Previously with Clear Vision Funding, Smith served as their Senior Vice President of Operations. He directed all facets of mortgage operations including compliance, underwriting, and all closing and funding areas. He managed implementation of mortgage operating risk functions; established processes, tools, and systems to identify, analyze, measure, and monitor operating risk in mortgage business. He also assisted in the dramatic increase in company volumes in wholesale transactions; since joining company, originations have totaled $3.2B.

Prior to Clear Vision Funding, David Smith served as executive vice president of Medallion Mortgage Corporation and held several wholesale loan trading and credit risk management positions. Erika Macias-White, SVP and Chief of Operations, featured in June’s MPA Magazine’s edition of Elite Women of Mortgage 2014, says “David’s risk management experience will be invaluable to us during this time when ongoing regulations and compliance is at an all-time high.” She added, “He will add maximum profitability and provide enormous operational efficiencies and quality in leveraging HighTechLending, Inc.’s guaranteed 5 star service.”

Featured in this month’s MPA Magazine, as one of the six leading experts in reverse mortgages, President of HighTechLending, Inc. and Past President of C.A.M.P Orange County, Don Currie, says, “David is ready for this exciting challenge and will be a valuable asset and addition to our team as we continue our trajectory of growth where our team is continually focused on dedication to customer service and providing operational efficiency.”

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Tiptree Financial Acquires Majority interest in Luxury Mortgage Corporation Sat, 08 Feb 2014 22:37:35 +0000 Tiptree Financial Inc. has recently completed its previously announced strategic transaction with Luxury Mortgage Corp. Under terms of the related transaction agreements Tiptree has acquired a majority interest in Luxury Mortgage and its previously funded senior secured term loan remains outstanding.

Luxury Mortgage expects to use the proceeds of the investment to expand operations through additional origination channels such as retail expansion and a new correspondent channel which will focus on acquiring prime credit jumbo loans. With Tiptree’s support, Luxury Mortgage will also pursue expansion opportunities through strategic alliances and strategic acquisitions in existing and new markets.

Michael Barnes, Executive Chairman of Tiptree, and Geoffrey Kauffman, CEO of Tiptree, joined Luxury Mortgage’s Board of Directors in connection with the transaction

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RISKSPAN Hires Mortgage Industry Leader Brad Davis as Managing Director Tue, 30 Apr 2013 17:53:23 +0000 To support the growth in its consulting sales and delivery activities, today RiskSpan President and CEO Bernadette Kogler announced the hiring of Brad Davis as Managing Director.

RiskSpan is known for its breadth of senior mortgage expertise at the executive level and Brad is no exception. With 22 years experience working for the nation’s largest mortgage lender and its predecessor companies, Brad offers tremendous insight into the full secondary mortgage market lifecycle. In naming Brad to this critical role, Kogler successfully added a savvy and results-oriented trusted advisor who has the detailed knowledge and unsurpassed experience built in the mortgage field.

Mr. Davis has held a series of executive roles at Wells Fargo Home Mortgage, including in the areas of capital markets, structured finance, product development, securitization, and corporate trust services. In addition, Davis has led Agency related development projects and served as an expert on Securities and Exchange Commission requirements.

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Trez Capital Senior Mortgage Investment Corporation Fully Deploys Capital from Recent IPO Tue, 30 Apr 2013 17:52:18 +0000 Trez Capital Senior Mortgage Investment Corporation (the “Company” or “Senior MIC”) announced today that the net proceeds from its Initial Public Offering (“IPO”) have been fully deployed in 22 Canadian first mortgage loans.

The Senior MIC completed its IPO in late December 2012 with net proceeds of $83.7 million. The investment focus of the Company is on conservative first ranking mortgages (both whole loans and senior tranches) on real property in Canada with the goal of generating attractive returns while preserving capital. The targeted yield on the Senior MIC’s shares is 5 percent, based on an issue price of $10 per Class A share. As of April 26, 2013, the Company had $95.8 million invested in a mortgage portfolio that is comprised of over 50 percent residential loans with an average loan-to-value of 37.8%. To date the Company has utilized $13.0 million of its line of credit facility. The average interest rate on the mortgages is 6.1 percent (excluding commitment fees). Monthly updates of the mortgage portfolio summary are posted on the Senior MIC’s website

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Home Prices Rise in February 2013 Tue, 30 Apr 2013 17:51:49 +0000 Data through February 2013, released today by S&P Dow Jones Indices for its S&P/Case-Shiller (1) Home Price Indices, the leading measure of U.S. home prices, showed average home prices increased 8.6% and 9.3% for the 10- and 20-City Composites in the 12 months ending in February 2013. The 10- and 20-City Composites rose 0.4% and 0.3% from January to February.

All 20 cities covered by the indices posted year-over-year increases for at least two consecutive months. In 16 of the 20 cities annual growth rates rose from the last month; Detroit, Miami, Minneapolis and Phoenix saw slight annual deceleration ranging from -0.1 to -0.4 percentage points. Phoenix continued to stand out with an impressive year-over-year return of +23.0% while Atlanta and Dallas had the highest annual growth rates in the history of these indices since 1992 and 2001, respectively.

In February 2013, the 10- and 20-City Composites posted annual increases of 8.6% and 9.3%, respectively.

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Mayflower Bancorp Reports Fourth Quarter And Annual Earnings Tue, 30 Apr 2013 17:51:26 +0000 Mayflower Bancorp, Inc. (NASDAQ Global Market: MFLR), the holding company for Mayflower Bank, today reported net income of $297,000 or $0.14 per share the fourth quarter ended March 31, 2013, compared to earnings of $224,000 or $0.11 per share for the two-month period ended March 31, 2012. The diluted earnings per share were $0.14 and $0.11 respectively.

In February 2012, Mayflower Bancorp, Inc. changed its fiscal year-end from April 30 to March 31, necessitating the shortened reporting periods for the prior fiscal year.

For the year ended March 31, 2013, net income was $1,468,000 or $0.71 per share, compared to $1,217,000 or $0.59 per share for the eleven months ended March 31, 2012. On a diluted per share basis, earnings were $0.71 per share and $0.59 per share, respectively.

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AllRegs to Publish Norcom Mortgage Lending Library of Mortgage Underwriting Guidelines Sat, 27 Apr 2013 15:40:56 +0000 AllRegs will publish Norcom Mortgage’s lending library of mortgage underwriting guidelines. Norcom Mortgage is going to leverage the AllRegs technology platform and publishing expertise to manage and maintain their retail and correspondent lending library of mortgage underwriting guidelines.

Users will benefit from a variety of productivity tools, including an electronic Table of Contents tree with links to content, guidelines and forms. Content is also accessible through a robust search engine that features a thesaurus with industry jargon and relative matching results.

Norcom Mortgage internal staff and business partners will be able to access mortgage underwriting guide content through the online Lending Library that includes the following topics:

— General Requirements
— Freddie Mac Loan Prospector
— Conforming Conventional Loans
— Appraisal Standards
— Specific Property Types – Eligible Products
— Government Loans
— New Construction

In addition, the Norcom Lending Library features a Recent Updates section to identify changes to content, as well as Email Alerts to notify users of changes.

For more information about Norcom Mortgage, visit or contact Norcom at (855) Norcom1, Monday through Friday, between the hours of 8:30 a.m. and 5 p.m. EST.

For more information about AllRegs and its publishing services, visit or contact AllRegs at (800) 848-4904, Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. CT.

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