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RELOCATION. SARRC Conference San Antonio, TX Sept 09, 2014. 1964 2014. GeLaine Joachim, SCRP Premia Relocation Mortgage Eileen Ulmer Budd Van Lines Steve Townsend NEI. MORTGAGE. SARRC Conference San Antonio, TX Sept 09, 2014. 1964 2014. Presented by:
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RELOCATION SARRC Conference San Antonio, TX Sept 09, 2014 1964 2014 GeLaine Joachim, SCRP Premia Relocation Mortgage Eileen Ulmer Budd Van Lines Steve Townsend NEI
MORTGAGE SARRC Conference San Antonio, TX Sept 09, 2014 1964 2014 Presented by: GeLaineJoachim, SCRP PremiaRelocation Mortgage
1964 Top singles of ‘64: Baby Love (The Supremes) Can't Buy Me Love (The Beatles) Chapel Of Love (The Dixie Cups) A Hard Day's Night (The Beatles) House Of The Rising Sun (The Animals) I Get Around (The Beach Boys) I Want To Hold Your Hand (The Beatles) Pretty Woman (Roy Orbison) Movies of '64: Goldfinger Marnie Mary Poppins The Pink Panther A shot in the dark My Fair Lady Last Man on Earth •ERC Was founded by Chris Collie Average annual income $5,880 • Gallon of gas 25¢ • Gallon of milk $1.06 • Loaf of bread 21¢ • 1st class postage stamp 5¢ • Pay phone (local call) 10¢ • Life Magazine 35¢ an issue • Rolls Royce Silver cloud Ill sedan $16,655 3
1964 • $18,983 - Median Sales Prices of • New Homes Sold in the U.S.50 • years ago in 1964 • 5.54% - Average Interest Rate • $107.19 P&I - 30 YR Fixed Monthly Payment 4
Mortgages in the 60’s • You went to a local bank for your mortgage “think of George Bailey” • Manually underwritten by the “bank manager” • Most of the time women could not get mortgages on their own, and if a couple applied for a mortgage, only the husband's income was considered. • Most of the mortgage were 20-30 year fixed
Average Interest Rates: 50 YEARS Source: www.forecast-chart.com/interest-mortgage-30.html
Mortgage Industry 2007 and Before 2007 • Less Restrictive Approval Standards • If You Had A Pulse You Could Get A Mortgage • Limited/ NO Documentation Loans In Relocation • NINA RELO Loans: “No Income No Asset” Documentation Req. • Credit Score 680 Above • Who Do You Work For? • Who Much Do You Make? • How Much Do You Have In The Bank? • Let Me Know When You Want To Close This Week!!!! • Low Down Payments = 100% / 125% Financing
Mortgage Industry 2007 and Before 2007 • Mortgage Products That Helped Fuel Mortgage and Home Ownership Growth • Multiple Options For Low Credit Score • Subprime, Alt A Loans • Interest-only Loans • Combo Loans Aka; Piggy Back Loans, First And Second Mortgages (80/20 Loans To Avoid PMI) • Negative Amortization Loans • Trailing Co-borrower Income Considered WITHOUT a New Job • Fewer Property Restrictions “Condos” • Appraisal – Automated Valuation $75 Or Drive BY $125 • Departure Home- GBO, “O.K. No Documentation Required” • Mortgage Subsidies; Reduced Borrowers Payment To Help Qualify For Larger Loan Amount (3 Year Min)
Turning Point 2007/2008 • Housing Bubble Burst
Financial Reform Dodd-Frank: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 • Qualified Mortgage January 2014 General requirements for QM ·Prohibits loans with negative amortization, interest-only payments, balloon payments, or terms exceeding 30 years ·Prohibits “no-doc” loans where income or assets aren’t verified ·Generally mortgage fees paid not to exceed 3% of total loan amount ·Certain “bona fide discount points” are excluded ·Additional guidance is provided for threshold on smaller loans ·Maximum 43% Debt-To-Income (DTI) – based on highest payment in first five years ·Automated approval over the ratio acceptable ·Generally prohibits prepayment penalties
Mortgage Industry – After2007 and Today 1950 • Example Jumbo (Credit Scores/ Down Payment) • Full Documents Requirements • Income (Paystubs, W-2, Employer Letters) • Asset (Bank Statements, Investment Accounts, Retirement Accounts) • Maximum 43% Debt-to-income (DTI) • Disposition of Departure Residence • Evidence of Sale Required • Timing And Coordination With Transferee and Relocation Consultant • Loan Products • QM - limits products like; IO, Balloon • Trailing Co-borrow Income Not Allowed (Unless Employed In New Location)
Mortgage fun Facts • $3.945 trillion in mortgage originations • Best year ever for lenders 2003 • $1 trillion - $1.1 trillion • Current estimated mortgage originations for 2014 • $10.138 trillion at December 31, 2009 • Peak of mortgage debt outstanding • $9.875 trillion March 2014 • Amount of mortgage debt outstanding US Mortgage Market
Mortgage Industry – Looking Ahead • Interest Rates??????? • CFPB (Consumer Financial Protection Bureau) • “Know Before You Owe” project • Simplify and improve mortgage disclosure forms • New form – Loan Estimate • Combines the GFE and early TIL • Consolidation • We PREDICT a lot of consolidation in the US Market, Changing From Refi To Purchase Business. • Multiple consolidations
Moving SARRC Conference San Antonio, TX Sept 09, 2014 1964 2014 Presented by: Eileen Ulmer, CRP, GMS Budd Van Lines
Moving industry - 1964 • Industry Overview • Pricing • Regulated Tariff • Lifestyle • “Out on the Road”
Moving industry – Current state • Overview • Pricing • Regulations
California CARB Compliance • What is CARB? • Status • Future Outlook 2
The RMC’s SARRC Conference San Antonio, TX Sept 09, 2014 1964 2014 Presented by: Steve Townsend, CRP, GMS NEI Global Relocation
What happened? • The Industry Grew Up • Different Generations in the Workplace • Technology • Globalization
Industry impact • Knowledgeable Workforce • Aggressive Competition • Increased Transparency • More Stakeholders • More Synergy
Hr challenges 76 Million Over 10,000 Baby Boomers will turn 65 each day for 18 years starting in 2011 40% Of the world’s Petroleum Engineers expected to retire over the next decade Source: US Department of Commerce, Bureau of the Census; ICIS Chemical Business
Rmc’s challenges RMC’s Strategic Position