TABLE OF CONTENTS

* State Legislation:  A Year in Review

* Freddie Mac's July 2007 Economic Outlook

*  Delinquency Rate in New Hampshire Decreases

* Order "Step-By-Step Guide to Buying A Home"

* Introducing an All-New Network at Night

* Invoices for Membership Dues were Emailed for the 2007 - 2008
   Year

* MBBA-NH Defeats Massachusetts MBA at the Fourth Annual
   Wentworth By The Sea Golf Tourament

* Lake Sunapee Cruise Highlights

* People and Places

 * Recent News in Brief

* Programs Scheduled

State Legislation:  A Year in Review
by Mike Arrison, Co-Chairperson, MBBA-NH Ethics/Legislative Committee

During the 2006/2007 administrative year the MBBA Ethics/Legislative Committee addressed the following items: 
 

• HB 530, a bill that would have forced a lender to refinance a property in the name of the party who was awarded the property in a divorce was defeated.  The committee testified in opposition to this bill on February 16, 2007.

• HB 832, a bill that would have forced a lender or servicer to allow any member of the State National Guard who is deployed to a war zone payment forbearance was defeated.  The committee did not testify on this bill but would not have taken a position.

• HB 868, a bill that will place a $25 recording fee surcharge for documents that are filed with registries will probably pass.  The committee did not testify on this bill.

• SB 161, a bill that increases the registration fees for mortgage servicing companies passed.  However, there is an amendment to this bill that eliminates members of MBBA.

• SB 92, a bill that addresses “independent contractor” status will probably pass with an amendment that exempts mortgage originators that work for a lender or broker who is licensed in New Hampshire.  After lengthy negotiations between all parties involved the committee testified in support of this bill on May 22, 2007.

• HB 365 originally started out as a bill to set up a commission to study foreclosures of home mortgages and the foreclosure rescue scam industry.  At the initial hearing the Banking Department presented an amendment to this bill that was extremely broad in scope and had not been seen by anyone from MBBA.  The Senate committee recessed the hearing and about four weeks later and after lengthy negotiations the amendment was revised exempting licensed mortgage bankers and mortgage brokers and the committee testified in support of the bill.  This will probably become law and will be effective on the date signed by the governor.

• HB 351, a bill that would extend the New Hampshire business profits tax to businesses based on an economic nexus instead of a physical presence is still in the House.  The Revenue Administrator felt that the state would be able to bring in between $10MM to $100MM.  It is felt that this tax could be in violation of federal regulations and if the state did collect the tax and obviously spent these monies and was then required to refund it, it could lead to a sales tax or other tax to cover the shortfall.  At this time we are not sure if this bill will pass.

• HB 759, a sweeping amendment that would affect banking laws, reporting and record keeping and makes several changes to laws regarding banking was “retained” until after the summer.  This bill was proposed by the Banking Department.  On March 6, 2007 the committee testified in opposition to the bill.  After the summer the committee will again work on this bill.  During the latter part of April the committee and our lobbyist met with the Banking Commissioner and suggested several changes be made to this bill.  These changes were made in draft form.

The committee also met several times during the year.  These meetings were as a committee with the Banking Department and with our lobbyist.

• Sept. 8, 2006 – committee meeting held to discuss items to be brought before the Banking Department and/or legislature.  Those items included trigger, branch definition, record holding period of three years, and licensing of new brokers and loan officers.
   

• November 29, 2006 – committee meeting held at Lobbyist Jim Demers’ office to discuss trigger.  Ben Niles and Bob Peterson of Freddie Mac also attended.
   

• Feb. 7, 2007 – Meeting with Banking Commissioner Peter Hildreth, attended by Mike Arrison, Walter Vail, MBBA-NH President Bonnie Leclerc, Lobbyist Jim Demers, and Executive Director of MBBA-NH Meg Malette to discuss LO licensing, the CSBS national licensing project, and stated income loans.

·     Feb. 16, 2007 – Meeting called by Banking Commissioner Hildreth to review negative issues surrounding the mortgage market, attended by same parties as on 2/7. 

• March 12, 2007 – Meeting with Banking Commissioner Peter Hildreth and attended by same parties as above, to discuss the elements pertaining to the mortgage industry in HB 759.

Also during the preceding year the committee investigated and addressed one complaint by a member of the MBBA against another member.  The committee recommended that no action be taken by the MBBA.  

Freddie Mac's July 2007 Economic Outlook

Delinquency Rate in New Hampshire Decreases

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 500,000 people in virtually every community in the country.  Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 3,000 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.  For additional information, visit MBA's Web site:  www.mortgagebankers.org.

Order "Step-By-Step Guide to Buying a Home"

We are pleased to offer this reference guide for first-time home buyers or for borrowers who need a refresher on the home buying process.  Experts in New Hampshire's mortgage finance industry gathered together to produce this very useful resource. 

Loan originators can distribute the books to borrowers, Realtors, and at home shows.  There is a panel on the back cover of the book to place a business card.

Click here to view the contents of the book.  The book has 23 pages, and its dimensions are 5 1/2" wide by 11" high.

Cost to purchase the book is $1 with a minimum order of 50 books.  You may either mail MBBA-NH a check for the cost of the books (make check payable to MBBA-NH) or click here to pay by either MasterCard or VISA.  Allow a maximum of two weeks for delivery.  There is no cost for delivery.

Introducing an All-New Network at Night

MBBA-NH's membership committee, lead by Joe Saylor of National City Home Equity, has been busy organizing this year's Network at Nights.  The membership committee is planning on offering Network at Night at different locations in New Hampshire.  We will be in your neighborhood soon and hope to see you there!

Mark your calendars for the next, all-new Network at Night on Wednesday, August 22, 2007, from 5:30 P.M. to 7:30 P.M. at the Sky Lounge & Bistro, 522 Amherst Street, Nashua, New Hampshire.  There will be lots of complimentary appetizers and 50% off drinks!  Please join us for an enjoyable evening with your colleagues and friends in the mortgage finance industry. Preregistration is required, and the cost to attend is FREE for MBBA-NH members with their business cards and $10 for non-members with their business cards.  Please click here to register by email. 

Invoices for Membership Dues were Emailed for the 2007 - 2008 Year

Did you received your invoice for MBBA-NH membership dues?  Invoices were emailed to all MBBA-NH primary contacts in July.  If you do not remember receiving the invoice by email, please download the information below or we will be happy to email you another one.  Please note that along with the dues invoice, we request that you to fill out a list of your employees to receive information from us.  Please send this completed form with your payment to us.  Thank you!

This year you have the option of becoming a member of the National Association of Mortgage Brokers (NAMB).

• Click here for mortgage broker invoice, and click here for an employee roster form

• Click here for a mortgage banker/broker invoice, and click here for an employee roster form

• Click here for an affiliate member invoice, and click here for an employee roster form

MBBA-NH Defeats Massachusetts MBA at the 4th
Annual Wentworth By The Sea Golf Tournament!

Lake Sunapee Cruise Highlights

This was the second year MBBA-NH offered the Lake Sunapee Dinner Cruise.  It took place on Thursday, July 19, 2007, on a drizzly evening.  Even though the weather could have been much better, everyone seemed to enjoy themselves.  The food was good and the views on that overcast evening were beautiful.

Many of the attendees chose to take advantage of the free, round trip bus transportation from Bedford and Concord, New Hampshire.  The following sponsors generously offset the cost of the bus transportation:

CATIC
RMIC
GreenPoint Mortgage
St. Mary's Bank
Old Republic National Title Insurance

THANK YOU, BUS SPONSORS!

Enjoy the following photos of the cruise, which are courtesy of Julie Clark, Horizon Settlement Services

People and Places

Jason Hood has joined the Commercial Mortgage Group at Eaton Partners, Inc., as a commercial loan officer.  In addition to Jason's small and large balance commercial originations, he will be focusing on formalizing sourcing relationships from residential mortgage brokers.

Jason brings a background in both residential and commercial lending to Eaton Partners, Inc. including the ownership of his own residential mortgage brokerage company in Manchester.  Jason is a graduate of North Park College in Chicago, Illinois.

Jessica Kallis has joined Eaton Partners, Inc. in Manchester as Commercial Loan Processor.  Her overall duties include processing, analysis, and assembling necessary information and documentation from clients for commercial loan packages.

Jessica comes to Eaton Partners, Inc. with a background in finance, where she was employed for nine years at Ford Motor Credit Company.  Jessica graduated in 1998 with a B. A. in economics from Wheaton College in Norton, MA.

Recent News in Brief

New Subprime Loan Rules Issued
Investor's Business Daily (07/02/07) P. A1
U.S. financial watchdogs have released new guidelines meant to rein in the overly aggressive lending practices that triggered a mortgage default crisis, but while still preserving access to credit for responsible home buyers. As part of the new rules, the Federal Reserve and other regulators said lenders should confirm incomes and take into consideration possible rate increases when determining borrowers' repayment ability. Additionally, they declared, subprime borrowers should not face prepayment penalties when they refinance their loans.

Credit Crunch Takes Its Toll
Wall Street Journal (08/01/07) P. B11; Chittum, Ryan; Dunham, Kemba J.
Commercial property prices have been soaring in the past three years or so thanks to easy lending terms and cheap debt, two elements that are beginning to run in short supply. The boom has been fueled by the commercial-mortgage-backed securities markets, which permits banks to issue mortgages and then pool them and sell them as bonds. In recent weeks, though, skittish buyers of these securities have shied away from the market or have begun demanding substantially higher yields out of concern that transactions were becoming too risky. This has led to a shakeout in which fewer bidders are jockeying to acquire buildings and the market for collateralized debt obligations has slowed. As a result, commercial property prices could begin to move south and the number of commercial real-estate firms going private may slow in the months ahead.

House Panel Endorses Housing Fund
Washington Post (08/01/07) P. D4
In a 45-to-23 vote, the House Financial Services Committee approved establishment of a fund for construction or rehabilitation of 1.5 million affordable-housing units over the next 10 years. Under the measure, U.S. mortgage finance giants Fannie Mae and Freddie Mac will be compelled to funnel as much as $600 million a year into the fund. The reserve is being launched with $1 billion in initial funding, an estimated $300 million of which will be contributed by the Federal Housing Administration.

Credit Scores Still Mystery to Most
Huntsville Times (AL) (08/02/07); Accardi, Marian
A new survey from the Consumer Federation of America and Washington Mutual reveals that only 24 percent of 1,000 adults knew that 700 is the lowest credit score likely to qualify for a low-cost mortgage. Only 29 percent understood what a credit score means; however, that was up from only 27 percent in the 2005 survey. Stephen Brobeck, executive director of the federation, says the increase in the percentage of consumers who had obtained their credit scores--59 percent, versus 54 percent in the last survey--also was a good sign. It is worthwhile for consumers with lower scores to work on improving them, considering that Fair Isaac Corp. estimates that raising a credit score from the 580-619 range to 660-699 could save a borrower $5,148 in annual interest expenses on a $300,000 loan carrying a fixed rate over 30 years.

Subprime Worries Could Bring Legislation
Contra Costa Times (CA) (08/03/07); Zibel, Alan
Though federal lawmakers did not pass any bills targeting the mortgage market before its August recess, observers believe concerns that the subprime turmoil will seep into other aspects of the market and the mounting troubles reported by lenders and mortgage-investment funds could make anti-predatory legislation a priority when Congress returns. Despite worries about legislation depressing the financial markets, House Financial Services Committee Chairman Barney Frank, D-Mass., believes a well-crafted bill actually could benefit the market; and Rep. Brad Miller, N.C., insists that investors will avoid subprime-mortgage-backed securities as long as lenders are not required to take a borrower's repayment ability into account. The two legislators are expected to introduce a measure in the fall. Industry groups contend the market is self-correcting and worry that legislation could make it difficult for borrowers to obtain financing, and some observers note that legislation would not be necessary if the Federal Reserve acted on its authority to restrict deceptive lending practices. Mortgage Bankers Association senior executive Kurt Pfotenhauer says the industry is pushing for a national anti-predatory lending standard.

US Says Mortgage Woes Unlikely to Affect Broader Economy
Forbes (08/03/07)
U.S. Deputy Treasury Secretary Robert Kimmitt does not believe the current U.S. credit crunch will have any significant impact on the nation's broader economy. Speaking to journalists at a meeting of APEC finance ministers in Australia this week, he conceded that adjustments in the U.S. subprime mortgage market will take "some quarters" to smooth out, but are proceeding at a reasonable pace. He added that it will also take "several quarters" for the current "softness" in the U.S. housing market to work itself out. Kimmitt concluded, "We continue to monitor closely both the subprime market and, in particular, the credit markets more broadly."     

###

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 500,000 people in virtually every community in the country.  Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 3,000 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.  For additional information, visit MBA's Web site:  www.mortgagebankers.org.

Programs Scheduled

August 22, 2007 - All-New Network at Night at the Sky Lounge & Bistro, 522 Amherst Street, Nashua, NH  03063, from 5:30 P.M. to 7:30 P.M.  Click here for more information and to register.

September 7, 2007 - MBBA-NH Annual golf outing at the Owl's Nest, Campton, New Hampshire.  Benefits New Hampshire Housing's home buyer seminars.  More information to come!

September 13, 2007 - Roundtable Discussion to Explore Ethics, Fraud, and Privacy in the Mortgage Finance Industry from 9 A.M. to 12 P.M. at the Manchester Country Club, 180 South River Road, Bedford, New Hampshire. More information to come!

October 18, 2007 -  Underwriting and Origination of VA by Cathy Parker of Mortgage Training Solutions at the Manchester Country Club, 180 South River Road, Bedford, New Hampshire.  More information to come!

November 14, 2007—An Emerging Market:  How can Residential Lenders/Brokers Successfully Tap into Their Existing Databases to Cross-Sell Commercial Lending Products?  at the Manchester Country Club, 180 South River Road, Bedford, New Hampshire.  More information to come!