Monthly Mortgage Market Share Archives

December 2015-Mortgage Market Share Report

January 25, 2016
The volume of Monroe County sale transactions in 2015 represented the best showing for our market since 2007.? Mortgage volume, while solid, did not approach what was originated during the historic low interest rates of 2012 or the government induced borrowing of 2009. (see chart page 7)? Sales of properties marked as the buyer?s personal residence continue a five year rise to the highest level since sales disclosure data became available. (chart page 14) Most encouragingly sales above $125,000 were considerable stronger than a year ago ? about 21% better!?? Sales of non-primary residence property also reached a five year high. (chart page 16) Most of that growth however is in the market above $200,000, especially above $500,000.? TRID appeared to have a modest effect on the purchase market as fourth quarter sales were slightly higher than in the same quarter of 2014.? I?ve read national predictions that 2016 will bring a few more purchase transactions off set by fewer refinances. Our order counts so far for January are in line with that thinking.? Most of our closings with financing are now TRID transactions. The processes seem to be sorting themselves out. And clients appear used to the additional compliance induced complexities.
We?re busy doing more training and reorganizing behind the scenes to address the different time frames now required. With no new compliance burdens on the horizon, we?re enjoying getting back to figuring out how to do things better. What a relief!

Here?s to a prosperous and successful 2016!
~ John Bethell

November 2015 Mortgage Market Share Report

I want to introduce you to three new team members here at John Bethell Title
At the end of October we welcomed Wendy Kitchel as our new Title Counsel. Wendy came to us after fourteen years with the law firm of Foutty & Foutty in Indianapolis where she specialized in representing lenders in mortgage foreclosures. Wendy managed title claims and bankruptcy issues for the firm?s clients as well. Prior to joining Foutty, Wendy was a title attorney for Chicago Title Insurance Company and Royal Title Services. Wendy is a 1993 graduate of the University Of Akron School Of Law and has an undergraduate degree from Indiana University. In addition to her role as our title counsel, Wendy will also help us stay abreast of the ever increasing number of regulatory matters now facing our industry. Wendy?s knowledge and breadth of experience is exactly what we were hoping to find when we began to look for Dan Stewart?s successor.

Earlier this fall we added April Saft to our closing team as a Transaction Coordinator. April has extensive prior experience in the medical administration field.April?s proficiency in balancing schedules, completing forms and working in a fast paced, compliance dominated environment with competing priorities will help her greatly as we teach her the title and closing business. April has already shown us to be a quick learner with a great attitude. I?m sure that you will enjoy working with her.

Two weeks ago Sarah Doering joined our team as a Real Estate Closer. For the last five years Sarah held the position of Service Center Manager for AAA Hoosier Motor Club. Prior to joining AAA, she was an Assistant Branch Manager for Monroe Bank and a Closing Specialist for Meridian Title Corporation. Sarah is also a member of the Board of Directors of Big Brothers Big Sisters of Southern Indiana. Several current team members previously worked with Sarah and enthusiastically recommended her to us. Sarah is already working up closings and will be conducting them in the very near future. Sarah further strengthens our capability to fulfill our promise of providing an outstanding experience to you and your clients

We are continuing to seek an additional real estate closer for our team. Once that has been accomplished, I will let you know.

~ John Bethell

October 2015 Market Share Report

November 19, 2015

At the end of October and into November we experienced our first closings under the new CFPB TRID disclosures.? More recent closings are happening smoother as everyone gets familiar with the changes. I thought it important to share with you my takeaways from these initial transactions. My first takeaway is being reminded that everyone in the lending and settlement industry is using new software, with new screens and learning new workflow and timelines. The operative word here is ?new.? Just like athletes, regardless of the amount of training anyone has done, it doesn?t simulate real game speed. Until loan processors and loan closers, loan officers and loan underwriters get fifty or sixty real transactions with real circumstances under their belt, they are going to be slower and less sure of what they?re doing. I see it with my team as well. This will affect the speed at which we all can produce our work; especially for the first few transactions. This learning curve is further slowed by the fact we?ve all be doing transactions under both the new and the old rules. This means a lot of back and forth, hardly the ideal environment to burn new procedures into one?s brain cells. Fortunately that will disappear over the next few weeks. And to no one?s surprise, the CFPB rule, at about 1900 pages, is not being consistently interpreted. This leads to slower processing while alignment between the various stakeholders is achieved. And as various regulators start examining TRID transactions, we can expect even more inconsistent interpretations. I don?t intend to suggest that these issues apply to everyone in the business. They are though, quite prevalent although less so than a couple of weeks ago. You may wish to be proactive in your discussions with your clients so that surprises are minimized during these first few months of implementation.

~ John Bethell

Market Share Report-September 2015



HUD?1 passed on to the Great Regulator in the Sky at 12:00 a.m., October 3, 2015. HUD?1 is survived by?Dodd?Frank, TRID, Loan Estimate and Closing Disclosure. The funeral and interment will be consummated?following a three day waiting period.

Created in 1974, HUD?1 and its partner, Good Faith Estimate maintained a long and largely unsuccessful?struggle to encourage consumers to shop for their mortgage loan. Much of HUD?1?s life was dominated by?its lifelong sibling rivalry with Truth?In?Lending. A mid?life crisis during the early 2000?s led to a nervous?breakdown in 2008. HUD?1 attempted to reinvent itself in 2009. Using roll ups, tolerances and buckets,?HUD?1 only managed to further confuse consumers.

The family mission to educate mortgage consumers and simplify the process has passed to HUD?1?s?illegitimate step?child, Convoluted Title Insurance Fees Calculation. Regrettably, HUD?1 will always be?remembered most for having to start on page two, to understand it.

In lieu of flowers, the family asks that fines and penalties be paid directly to the Consumer Finance?Protection Bureau.

Market Share Report – August 2015

As we all make our final preparations for the post-Trid implementation world beginning October 3rd, lets pause a?moment and reflect upon the positive aspects of this change.

{{crickets}} . . . . . . . . . Just kidding!

Seriously, although there?re a lot of changes to deal with, and that?s always hard for people, TRID is not all necessarily?bad. Here are my top five positive takeaways from TRID.

5.?Process Improvement: TRID necessitated that each of us closely examine our internal work flow and processes?with respect to new disclosure timing and accuracy requirements. While doing this, many of us have actually found ways?to improve. There?s no getting around the additional days for providing and reviewing disclosures that TRID adds to a?transaction timeline. Those additional days don?t all need to be tacked onto the end, do they? There?s an opportunity to?gain some of those days by improving origination and settlement process.

4. Systems upgrade: We?ve all upgraded existing systems or moved to new platforms to do our work. For many of?us it?s the first major new program since the 2009 RESPA reform. No doubt that all of this software is more robust than?what we were using. That leads to more productivity and fewer errors.

3. The new forms: Combining and reengineering the Truth in Lending and GFE/HUD-1 has resulted in forms that?are easier for the consumer to understand. (The convoluted title insurance fee disclosure notwithstanding.) For?example, we always wondered why there was no ?cash to close? on the GFE. Now we have that.

2. Fewer last minute closing delays: Oh, closings will still be delayed. But they?ll be delayed four days before the?scheduled closing, not four hours. If the Closing Disclosure can?t? be made on Monday, that?s when we?ll know that we?can?t close on Friday. While a delay is obviously not what anyone wants, the fallout stands to be less when moving vans?haven?t arrived or left yet.

1. Industry Awareness: I can?t think of another time in my career when Lenders, Realtors? and Title Companies?were as aware of each other?s world as we are right now. The nightmare scenarios that dominated early conversations?about TRID definitely got everyone?s attention. All of us now have a much better understanding of each other?s role in?the settlement process. This awareness will lead to further improvements as electronic sharing of information between?the participants in the transaction becomes increasingly more prevalent.

And I?ll give you a bonus positive takeaway: Next year, 2016, will be a year when we can all focus on just being better at?what we do. No new software. No life changing regulatory initiatives. Just each of us, trying to do our jobs better!

~John Bethell

September, 2015