Traditionally, states licensed mortgagebankers to monitor the industry in their state as a means of preventing abusive lending and thereby protecting consumer interests. However, states have increasingly enacted legislation requiring licensing at the loan officer level versus the company level, creating burdensome regulatory regimes that add costs to the origination process and threaten mortgage competition in these states.

MBA NewsLink will provide complete coverage. Today's hearing can be seen live over the Internet at http://financialservices.house.gov/.
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MBA’s testimony, “Examining the Financial Services Industry’s Responsibilities and Role in Preventing Identity Theft and Protecting Sensitive Financial Information,”  noted creation of the Mortgage Industry Standards Maintenance Organization (MISMO) and the Secure Identity Services Accreditation Corporation (SISAC) as two entities that support data integrity.

“Confidentiality, integrity and non-repudiation have been recognized within the industry as critical principles for electronic records and signatures,” MBA said. “For many years, MBA has been addressing information security as a unique discipline.”

SISAC, established in 2003 to address information security principles, uses a framework of industry and government best practices including: the Federal PKI Bridge, National Institute of Standards and Technology (NIST), Internet Engineering Task Force (IETF).

MBA said new federal legislation should provide "clear and consistent guidelines and laws" in which financial organizations could implement personal information protection programs and policies to better protect consumers from identity theft. “It is also important that if mortgage bankers are to notify consumers of a security breach, that accountability is very clearly assigned to the party responsible for the breach,” MBA said.

MBA's testimony said its members have security measures in place to protect sensitive information based on the Gramm-Leach-Bliley Act. MBA encourages consumers to access free credit reports through the Fair and Accurate Credit Transactions Act to ensure that unauthorized activity, mainly identity theft, does not occur on their accounts.

MBA urged consideration of concise “security breach triggers” on any proposed legislation that would not “cause lenders to be unnecessarily overburdened with providing notifications, especially if there is not a perceivable threat of identity theft.” 

MBA advocated a specific and standardized definition, at the national level, of sensitive data elements for a consistent interstate commerce application and avoidance of a “patchwork of state laws” with a need for strong preemptive language. “While uniformity creates ease for the industry, in terms of having one standard to comply with, it also allows consumers to have only one law that they must understand when pursuing remedies for a data security breach. Precedence for preemption has already been set with the passage of the Fair Credit Reporting Act,” MBA said.
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Portellus’ broker product is customized to HMIC’s specific program offerings, and private brand labeled to reflect the company’s preferred look and feel.

Key functionalities include automated product and pricing determination, the ability to pull/re-pull credit, debt management and deal structuring, view up-to-date pipeline loan status, rate-lock capability and automated underwriting approvals including pricing, underwriting conditions and exceptions.

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A $250,000 Ford Foundation grant boosted Laguna Niguel, Calif.–based Mortgage Grader's plan to create a real-time loan shopping service to help homebuyers compare mortgage alternatives.

Mortgage Grader's technology allows consumers to shop among several lenders, and receive real-time loan decisioning and pricing with only one credit report inquiry.

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Atlanta-based SouthStar Funding ranked number two in theAtlanta Business Chronicle’s 2005 A+ Employer Award selection. The Chronicle is a business journal that covers regional business and financial industry actions and ranks Atlanta’s top employers annually.

Qualifications for the A+ Employer award are based on factors such as benefits offered to employees, including insurance, flexible work schedules, vacation and performance recognition. In addition, employees are surveyed randomly to measure attitude, morale and working environment. The survey questions covered topics including team effectiveness, work engagement, people practices, trust, manager effectiveness and individual contribution.

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HUD released details of a new program to provide up to 18 months of temporary rental housing for families displaced by Hurricane Katrina. HUD and a network of nearly 2,500 public housing authorities will jointly administer the Katrina Disaster Housing Assistance Program.

HUD is offering local housing authorities a detailed briefing on the Katrina Disaster Housing Assistance Program at http://www.hud.gov/webcast. HUD will also offer specific technical assistance to local housing agencies to assist them in managing this new disaster-housing program.

Families will be given a rental subsidy based on 100 percent of Fair Market Rent in that community, however, must register through FEMA by calling 1-800-621-FEMA or applying online for federal disaster assistance.
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The research firm said that in the coming months, and perhaps years, “there is no doubt that construction costs will be impacted, and while it is still too soon to know with certainty what materials will be most affected, some general guidelines are emerging.”

Lumber and plywood will be primary materials used in the rebuilding process, PPR said. Prices of steel and lumber fell in the months leading up to Katrina in August, but they reached record levels in 2004 as developers cranked up production to meet demand. Lumber prices jumped nearly 15 percent following Katrina but remain well below levels from one-year ago.

In the near-term, demand for lumber and plywood will come from building temporary structures and mobile homes to house evacuees. In the long term, the storms will have an impact on different types of materials with materials that require more time to increase production receiving the greatest impact. PPR said lumber and plywood prices will be higher, but supplies can escalate enough to compensate for any large extended price increases.
 
Builders worried about possible shortages made a run on lumber. Analysts estimate Katrina destroyed more than 250,000 homes compared with Hurricane Andrew’s destruction of 28,000 homes. “This panic has subsided and should continue to do so,” PPR said. “The rebuilding process will not require these materials immediately, but rather it will be spread over a number of years. There will be a massive amount of materials required, but lumber supplies can be quickly increased, especially over the several-year time horizon.”

Georgia-Pacific plans to restart two closed building products plants in Mississippi to meet increased demand for building materials. The plants could open by year-and and will use the trees and timber destroyed or damaged by the hurricane, PPR said.

The stormy weather could have greater impact on steel prices than lumber and plywood costs because of production processes. The re-opening of the gulf ports was good news for steel prices, as the Port of New Orleans is number two in the country for steel imports from Japan, Brazil, Russia and Mexico . Flooding damaged scrap metal stored in the region, used to make steel.

Steel requires hydrogen for production and several hydrogen plants in the gulf coast were damaged by Katrina but much of the Texas natural gas production was spared by Rita. The lack of hydrogen necessary for production, adding to sharply higher natural gas prices after Katrina, will cause most steel producers to hedge against rising natural gas prices. 

Higher energy prices will likely receive the greatest impact, affecting energy-intensive materials to manufacture, including steel, cement and roofing. Higher energy prices will also affect transportation costs and bulky materials transported on land, PPR said. Up to 30 states have already experienced cement shortages. “The largest price increases are likely in the gulf coast region, but all areas of the country are likely to be affected over the next few years,” PPR said. “An extended period of high energy prices will eventually affect manufacturers and builders.

Cement was in short supply before Katrina hit, with shortages in more than 30 states. “There will likely be significant pressure on prices for cement because it is a key material for construction,” PPR said. “Cement is expensive to transport and takes significant energy to manufacture, so higher energy prices will have an impact.”

One positive note, as area ports reopen, is that New Orleans and Mobile, Ala. accounted for 12 percent of cement imports in 2004. Increased talk of lowering tariffs, which are currently up to 62 percent on cement imported from Mexico, would also help to prevent shortages as Mexico currently has excess cement, PPR reported.
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The second acquisition and condo conversion financing of $2.4 million is for the Glencrest Apartments, located in New Port Richey, Pasco County, northwest of Tampa. It was funded through James F. Perry & Company’s Direct Lending Program.

The borrower and purchaser of the rental project was Glencrest RB-GEM LLC., whose principals are Rolando Benitez, and Johnny Santana of Miami. The property, acquired for $2.63 million ($82,187 per unit) contains 32 two bedroom/two bath units on 2.3 acres. The project was completed in May 2005.

The principals plan to convert the subject property to a residential condominium with an estimated sell out of $3.7 million ($118,150 average unit price) with sales prices ranging from $115,900 to $126,900. The loan was structured for a 2 year term with interest only at a rate of 9 percent. It represented 80 percent of total cost, including interest reserve, closing expenses, and provided for individual releases for condominium purchases.

The mortgage banking company also provided a second mortgage or mezzanine/equity financing in the amount of $350,000. The two financial transactions were the 16th condo-conversion loans which James F. Perry & Co. arranged for the principals totaling $288 million during the last 12 months, according to Perry.
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Hear from a diverse group of leaders who understand the intricacies of the real estate finance industry.  These sessions focus on government housing programs, diversity, emerging markets, and key legislative and regulatory issues.
  
Monday, October 24, 2:00 p.m.-3:15 p.m.
What's Going on with the Government Housing Programs?
Hear from and ask questions of program leaders as they work to create more affordable housing opportunities for all Americans while protecting consumers from mortgage fraud and abuse.
 
Mortgage Fraud Against Lenders: The Growing Threat to Lenders and Homeowners
The real estate finance industry has proven to be a backbone of the U.S. economy and homeownership is one of the keys to wealth for American families. Yet the fraudulent acts of a few can threaten the stability of the system for all. Mortgage fraud against lenders can be financially devastating to lenders and to consumers-putting the American dream of homeownership at risk.  This roundtable discussion focuses on the status of mortgage fraud and where the industry and government need to go next in combating this threat.
 
3:30 p.m.-4:45 p.m.
Why Diversity Matters: Important Business Rules and Reasons
Educating managers and staff on working effectively in a diverse environment helps everyone prevent discrimination and promote inclusiveness. There is evidence that managing a diverse work force well can contribute to increased staff retention and productivity. Join us for this roundtable discussion as we examine the issues surrounding diversity and share ideas that work.
 
Tuesday, October 25, 2:45 p.m.-4:00 p.m.
Customer Retention in a Shrinking Marketplace
As the refinancing tide has ebbed lenders have begun the search for new ways to increase production volumes and retain customers. Some of today's successful lenders are focused on effectively reducing portfolio runoff while others are adding multiple channels to capture greater market share. If lenders wish to hold on to profits generated through a healthy portfolio, figuring out ways to retain those borrowers should be a core initiative.

Emerging Markets Lending: Best Practices and Challenges
As population demographics change, the understanding of emerging markets plays a more vital role in the mortgage industry. Join our panel to learn about developing and executing effective strategies. Better understand challenges and best practices for reaching this increasingly important segment of our population.

Legislative and Regulatory Update
This panel session addresses the latest developments facing the industry on Capitol Hill and in the Bush Administration such as oversight reform of the Government Sponsored Enterprises, revitalization of the Federal Housing Administration, greater consumer protections to combat predatory lending, simplifying the mortgage process through RESPA reform, and other pressing legislative and regulatory issues.
 
11:00 a.m.-12:15 p.m.
Differentiating your "On-Brand" Experience for Improved Margin and Market Share
The greatest profitability in any industry comes from differentiation of services from those of your competitors. A buyer advocacy marketing and fulfillment program can bring greater market share, better consumer branding and higher quality margins. Panelists discuss innovative solutions for balancing the need for safety and soundness of valuation systems and at the same time addressing the profit and expansion of the mortgage lending business.

Register Today to hear about the latest Business Strategies
Join the largest gathering of residential real estate finance professionals at MBA's 92nd Annual Convention & Expo 2005.  The convention offers you strategies so you can adapt and adjust your business to thrive in a constantly changing marketplace.  While providing opportunities to network with your peers, the convention also offers the opportunity to gather valuable information on innovative business practices, learn about winning products and services, get updates on the latest technology, and to meet and exchange ideas with industry leaders.

For more information, visit the Convention Web Site at http://events.mortgagebankers.org/92nd_Annual/default.html.
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FIND/SVP's study, conducted in September, asked 300 teens ages 14 to 18 questions about their spending habits and opinions regarding various financial products and services.

"Interestingly, teens across all races seem to consider the same issues when managing their money and all are thinking about their future now," said Elizabeth Rowe, senior analyst with FIND/SVP Inc. "Teens seem to have embraced new technologies and typically research the details for family purchases, but money seems to be a different matter. Parents and other family members still wield that influence."

Most teens said they are saving for "things I may want or need in the future or for emergencies." More than one-third (36 percent) of teens said they were saving for their education. Asian American teens prioritized savings for education, at 44 percent, followed by 38 percent of Caucasians, Hispanic Americans at 30 percent and African Americans at 29 percent.

Teens across all ethnicities prefer to use cash to purchase non-essential items as 93 percent said cash was their preferred method of payment. For teens who answered yes to using a credit card, 55 percent said the card was in their name. Of those who have credit cards in their name, 70 percent said they have one card and 22 percent said they have two cards. Hispanic teens topped the list with 37 percent owning two cards and 17 percent of Caucasians have two cards in their names.

Mothers topped the list of trusted sources for financial education at 78 percent overall. Across ethnic groups, 73 percent of Caucasian and 67 percent of Asian American teens look to their fathers for financial advice, significantly more than Hispanic Americans and African American teens, the survey said. In addition, 36 percent of African-American teens look to their grandmothers for financial advice, significantly more than Caucasian, Hispanic American and Asian American teens.
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