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Article written by WGNS Radio

First Community Mortgage Chief Risk Officer Samantha Meyer is one of 50 national honorees in HousingWire’s Seventh Annual Vanguard Awards, which recognize executives in the housing economy for outstanding leadership. HousingWire is a leading daily newsletter for the U.S. mortgage and housing markets.

Meyer is an active member of the Mortgage Bankers Association and is very involved in community and church activities. She is based in the organization’s corporate office and resides in Murfreesboro.

“Samantha is an expert in her field, with vast knowledge of every facet of mortgage lending – an unheard-of proposition given complicated lending requirements and regulations,” says Keith Canter, CEO of First Community Mortgage and one of the company’s founders. “She also is a thoughtful and nurturing leader, empowering her team members to maximize both their success and that of our customers. Managing risk and compliance for one of the largest lenders is a momentous responsibility, and Samantha is always up to the challenge. Thus, it’s no surprise she is the recipient of this prestigious recognition.”

Vanguards are selected from among executives who have led their organizations to unparalleled success, like expanding products, services, and profits in the past twelve months. The 50 honorees were chosen for their vital contributions to their companies and the dynamic way they are changing the industry.

“We are proud to recognize the 2021 Vanguard winners, who represent the industry’s most impressive leaders, says HousingWire Editor and Chief Sarah Wheeler. “They are leading through an incredible time for those in the housing market — whether real estate, mortgage or fintech — and driving one of the largest sectors of our economy.”

Meyer, an FCM team member for 16 years, has managed nearly every operational department in the company. She became the first female on the Board of Directors for First Community Mortgage (2019) and has served as Vice President of FCM Cares (foundation) since its inception in 2016. Canter notes that, during the pandemic, Meyer “did not skip a beat” and provided ways to ensure her department had everything it needed to run smoothly, efficiently and safely. Over the last year, production nearly doubled for First Community Mortgage, yet business was “as usual,” with Meyer providing extra training sessions, always making herself available.

In March of 2021, FCM acquired A Mortgage Boutique, which Meyer headed up with her team from a compliance and licensing standpoint to ensure everyone was covered for Risk. 

Read the full article here.

Article written by FCM CEO Keith Canter

Banks in the U.S. have been banned from foreclosing on homes since early 2020, due to the federal government’s efforts to assist homeowners feeling the financial pinch of the pandemic. The mortgage foreclosure moratorium was scheduled to end July 31, putting thousands of families at risk. The federal eviction moratorium was slated to end on that day as well.

Forbearance, foreclosures and evictions are different events, but here we will focus on forbearance and how the current status may impact the future for homeowner. And for now, I’ll set aside deciphering the current state of these moratoriums, as they are still in play as I wrap up this article.

Focusing on forbearance

Forbearance is an agreement between the lender and the borrower to delay a foreclosure. This pauses or reduces mortgage payments for an agreed-upon period while the homeowner builds back financially. It is something millions of borrowers did in the early days of the pandemic. There was a huge amount of uncertainty, about both personal and family health issues as well as employment.

In general, additional fees, penalties or additional interest (beyond scheduled amounts) are not added to forbearance accounts. And because of the pandemic, anyone going into forbearance does not have to submit qualifying documentation. The majority just inform their lender or servicer that they are being impacted by pandemic-related (financial) hardship.

Payments are not forgiven or erased via forbearance. Borrowers will eventually repay any missed payments – when they ultimately refinance or sell the home or over time beforehand. Before the forbearance ends, the servicer (where monthly payments are sent) will contact the borrower about how to repay the missed payments.

To put things in perspective, the Mortgage Bankers Association calculates that 3.5% of all homes (approx. 1.75 million homeowners) are now subject to a forbearance plan. Again, forbearance is not debt forgiveness, but merely delaying the repayment of the debt for a period.

When forbearance ends

Forbearance exits – those who signal they are ready to get back on track and can meet the previous, “normal” payments and schedule – remained low. And there has been an increase in new forbearance requests for Ginnie Mae and portfolio (primarily FHA and VA loans) and “private label security” (PLS) loans. But new requests have been decreasing in general, so the net result has been slight weekly declines in loans in forbearance.

About 65% of forbearance plans (1.2 million homeowners) are slated to expire this year (2021), according to Black Knight. (This includes the 80% of all FHA and VA loans that are in forbearance.) Three quarters of a million plans would expire in September and October alone. So, over the course of just these two months, the nation’s mortgage servicers would have to process up to 18,000 expiring plans per business day, guiding borrowers through complex loss mitigation waterfalls directed by changing regulatory requirements.

The operational challenge this represents is staggering, even before noting the oversized share of FHA and VA loans. Given the heightened challenges those borrowers may face in returning to making mortgage payments as compared to those in Fannie Mae or Freddie Mac loans, effective loss mitigation efforts and automated processes become even more critical.

It is truly a numbers game. Each week borrowers exit their plan for assorted reasons. Most exits resulted in a loan deferral/partial claim. Some continued to make their monthly payments during forbearance or did not make all monthly payments, exiting forbearance with no loss mitigation plan.

A smaller percentage consists of reinstatements: Past-due amounts are paid back when exiting forbearance. Still others receive a loan modification or trial loan modification. Of course, a percentage of these loans are paid off through refinance or by selling the home. A small number are ultimately addressed via repayment plans, short sales or deeds-in-lieu-of-foreclosure.

High home prices pay off

Housing prices have been rising steadily for years, and many parts of the country are now facing record high prices for existing homes, which means that there are few homeowners “underwater,” meaning they owe more on their mortgages than the overall value of their homes. This tends to incentivize lenders to collect missed payments on the back end of the mortgage (again, through forbearance) or to restructure the loans altogether.

There are likely to be more forced sales than foreclosures, if things worsen. That way a bank’s loan is paid off and the delinquent homeowners receive the equity they earned in the home and will walk away without a negative mark on their credit report. It takes time to start foreclosure proceedings, at least 120 days per federal law, plus time for court proceedings.

What’s ahead

The Federal Government is working on a tool for the Homeowners Assistance Fund. About two million homeowners are still in some type of mortgage forbearance. And there are measures in place to help renters, including an online tool released by the Consumer Financial Protection Bureau: the Rental Assistance Finder, created to help consumers easily find, and apply, for assistance. And the White House announced a series of measures aimed at preventing foreclosures. Members of Congress are also pushing banks and mortgage servicing companies to provide private relief.

Last year there was speculation that forbearance would be catastrophic when all of these loans modified, but the agencies involved are putting forth flexible plans to work with borrowers to stay in their homes AND for the borrowers who simply can’t afford their homes. For those, they are fortunate that home prices have risen, and most should be able to sell and avoid the short sale and foreclosure paths.

Borrowers should check with their lender or servicer for the most up-to-date information and path forward, always being mindful of how various solutions may affect their credit going forward.

View original press release here: https://www.nasdaq.com/articles/forbearance-and-foreclosure-moratoriums%3A-is-the-clock-done-ticking-2021-08-09

First Community Mortgage named Tyler Smith as branch manager for its Wilmington, N.C., office. Smith is able to originate mortgages for consumers in a number of markets and his primary focus will be on North and South Carolina, Florida, Pennsylvania, South Dakota, Texas and Virginia. 

“Tyler’s extensive background in sales and management, as well as his attention to building and maintaining quality relationships, makes him an excellent fit for our team,” says Jeromy Estes, FCM assistant vice president. “And his experience in real estate is a great bonus for his mortgage clients.”

Smith is active in serving his community and philanthropic causes that are uplifting and support personal growth.

“I am proud to make my clients top priority and provide unwavering support throughout every transaction,” Smith says, “because I understand and invest in excellent customer service and appreciate the positive and empowering impact that comes with homeownership.”

View original press release here: https://nationalmortgageprofessional.com/news/fcm-adds-new-branch-manager-wilmington

The media is filled with stories about first-time home buyers, buyers of 2nd homes, older people obtaining reverse mortgages… but what about “first-time sellers”? The housing market has been heating up in many areas, especially as the weather improves, and buyers complain that there are too few properties to purchase; prices are high, rates are low, and demand is skyrocketing. So what is stopping an owner from selling their house today and moving on to the next one?

A high-cost transaction can be very intimidating for a first timer, especially in a market such as this one. Borrowers are educating themselves about the process so that they can approach selling their house with confidence. Sellers should meet with a loan officer to see what they can afford before selling their current home, even if it is possible for them to purchase without having first sold, which gives them extra buying power. Our qualified loan officers will walk sellers through the steps and options. Many people discover that they can qualify to make a step up in housing without having their current home sold, which gives them a lot more flexibility because they can buy before they sell.

Our loan officers can also inform the seller of the costs of obtaining a new home loan, what programs are available, a general timeline, what is required for underwriting, and common mistakes that are made. These include unrealistic expectations, trying to obtain new credit cards or debt prior to buying another home, and so on.

Once a potential seller understands their buying power and the process, they should meet with a real estate agent for the selling side and the buying side to determine a pricing strategy for selling and a timing strategy for buying. They should know what their buying power will obtain, and study communities where they are likely to purchase. The listing agent for a house will tell the owners to clean up, spruce up, and stage the house for sale, give the first-time seller a timeline, and discuss the possibility of renting after a house is sold. Inventory is tight in many areas, so if a buyer falls in love with a house they will work with the seller’s timeframe.

Our borrowers are impacted by rates, and we want to make sure that our clients know what is happening with them. And here, as we ease into the May, are signs that the U.S. economy is moving, and wants to move, forward. Not only is it springtime, but as more people are vaccinated more portions of the economy are opening up. Unemployment, although bumpy, has generally been showing reductions, and there is optimism out there.

Yes, as the calendar moves into the second quarter, U.S. economic data points to an economy that is gaining momentum as the long-awaited consumer boom has arrived. Total retail sales were 17 percent higher in March than they were prior to the pandemic, and every subcategory of store benefited from consumers’ desire to spend. Given that a portion of this spending was due in part to the generous stimulus most households received, the question of how sustainable this elevated spending is top of mind. Many economists point to much improved household balance sheets buoyed by heightened savings over the last year as potential fuel for successful service re-openings this summer. This assumes businesses, which are currently struggling to hire, can find workers to fill the expected demand.

Surging demand also brings inflation concerns, and higher rates, including mortgage rates. Consumer prices were up 2.6 percent in March compared to one year ago, and while last year’s low baseline will lead to elevated annual comparisons, recent inflation readings pointing to increasing prices. Despite those concerns, our loan officers and management have noted that the Fed continues to say it will wait until it feels higher prices are sustainable before making any major changes to monetary policy which could leave the near-term direction of rates up to market sentiment. This is good news for our borrowers, as no one who hasn’t locked in a rate appreciates rates moving higher, regardless of the reason.

FCM has named mortgage veteran Jason Kaplan as a Vice President based in FCM’s Cool Springs office in Franklin. While the majority of his borrowers are in Middle Tennessee – primarily Williamson County and Davidson County – he can originate mortgages for consumers in the many markets in which FCM is licensed across the country.

“Jason is a highly experienced mortgage pro who blends his expertise and insight with the time necessary to learn the short- and long-term real estate and financial goals of his borrowers,” says Dan Smith, President of First Community Mortgage. “In doing so he has created satisfied, loyal customers and business partners who appreciate his time, talents and service. We are excited to have him join our growing team.”

With 20-plus years of experience in the mortgage banking business, Kaplan has helped many people achieve their dream of homeownership, whether they are refinancing an existing loan or purchasing a home for the first time. He has a strong financial background which allows him to analyze his client’s needs and help choose a mortgage that is best for each individual. He was previously with FirstBank Mortgage (formerly Franklin Synergy).

“My goal is to make the mortgage process smooth and comfortable,” Kaplan says. “I want to take the stress out financing and enable you to enjoy your new home. To keep things stress free, I make sure to set expectations and keep my word, whether it is about having paperwork in order, being on time, responding timely and meeting deadlines.”

His work was recognized with a Nashville Mortgage Bankers Association (NMBA) Diamond Award in 2019. The Wake Forest University (B.S in Business) graduate has lived in the middle Tennessee area for 15 years. He and his wife live in the Westhaven community with their three children, a boy and two girls.

Also joining First Community Mortgage are Kaplan’s colleagues Billy M. Harter and Johnny Smith, as well as the team members who support them across the many aspects of the loan processes.

View original post here: https://www.prnewswire.com/news-releases/top-producing-middle-tennessee-mortgage-pro-joins-first-community-mortgage-301255295.html