In this Issue        

September 2020 Edition

     
 

Presidents Message

State News & Events

Legislative Update

WI Coalition PPP Forgiveness Letter

Dues Renewal


Best in Business

Peer Chat

Online Event Calendar


Chapter News & Events

Milwaukee Chapter Events 

Madison Chapter Event

MBA Updates

Upcoming Educational Webinars


 
 
 

Dear WMBA Members,

Every month I get an email from Morgan Data, the WMBA administration team, reminding me that I have to write an article.  In the past few months, it was pretty easy.  There were things going on that we should all be aware of.  This month, I am finding it a little more difficult.  It seems like we are all fighting the same thing we have been fighting for the last several months.  Rates are low, volume is high, turn times are suffering due to the high volume, COVID-19 is still an issue causing problems with trying to social distance in the office and learning how to work remotely.  I believe it was Chad Laipple, the WMBA Treasurer that said the mortgage business is the only business were no one is ever happy.  It is either too slow or too busy. 

A few weeks ago, about 55 of us participated in the WMBA Golf Outing.  It was cold and wet but still a beautiful day.  I would like to thank all the participants and sponsors for making this happen.  It felt great to be out there and to see some of the wonderful people in our industry that I haven’t had the chance to see is a long time. 

Right now we have several things going on with the WMBA behind the scenes.  We have the Best in Business committee working hard to put together a great program.  We just added a new category for community involvement at the company level.  Make sure to check out this new category.  I know that there are a lot of companies in our industry that are doing some great things to help our communities and this is a great chance to showcase your efforts.  The Real Estate Conference committee is hard at work getting a program together for next spring and the education committee is working on taking Boot Camp virtual.  Our organization is dependent on participation.  It is not too late to join a committee.  If you are interested, please send an email to our administration team. 


Best wishes,
Rob Helvey



Rob Helvey
WMBA President 2020-2021
Vice President
Manager of Mortgage Lending
Waukesha State Bank
rhelvey@waukeshabank.com
262-549-8527


 

Legislative Update - Buddy Julius


 


COVID-19 News...


DHS: All Wisconsin Counties Have High Levels Of COVID-19 Activity.

DHS reported 1,762 new cases of the virus Wednesday, the fourth-highest daily total the state has seen since the beginning of the pandemic. Wednesday's numbers bring the average for the past seven days to 1,889 new cases per day — a record high.

The seven-day average has been trending upward since the start of September, when the seven-day average for new cases hovered at around 700 per day.

The WI Hospital Association reports 509 current hospitalizations including 140 ICU patients.  That's up from 370 and 103 a week ago.


Governor extends statewide mask mandate to November 21st.

Gov. Evers noted eight Wisconsin cities were among the top 20 in the U.S. for their rise in COVID-19 cases. Of those eight, six are home to a UW System campus.

Senate Majority Leader Scott Fitzgerald slammed Gov. Tony Evers' new mask mandate as "not worth the paper it's printed on," and Assembly Speaker Robin Vos called it "obviously illegal."  But their separate statements were silent on calls from some of their GOP members to reconvene the Legislature for a vote that would overturn the new order.

The conservative Wisconsin Institute for Law & Liberty filed a lawsuit in Polk County this summer seeking to overturn the previous public health emergency that Evers declared.  WILL said it was reviewing the new order and its impact on the pending litigation.


DWD Secretary resigns amid Unemployment Insurance backlog.

Last week, Gov. Evers asked for and received Sec. Frostman's resignation after months of problems in the state's UI system.  The last update from the agency indicated 94,000 Wisconsin residents still hadn't received the unemployment compensation they had applied for.

Corrections Deputy Secretary Amy Pechacek will lead the Department of Workforce Development during the transition to a new secretary.


UW-River Falls is third campus to suspend in-person instruction; UW-Madison to restart some classes in person.

The university joins UW-Madison and UW-LaCrosse in postponing further in-person instruction after initially opening classes in the fall semester.

UW-Madison on Thursday said it will begin restarting some classes in-person immediately after a two-week hiatus.


Sen. Ron Johnson quarantining after coming in contact with a person who tested positive for the virus.

Johnson tested negative for the virus and says he has no symptoms but nonetheless cancelled plans to travel with President Trump to his rally in Mosinee on Thursday and will quarantine until Sept. 29th.


DHS advises against trick-or-treating.

“Going house-to-house and having in-person contact is not recommended,” the Wisconsin Department of Health Services says in its guidance about Halloween, updated Friday. The agency urges people to "find new ways to celebrate that don’t involve big in-person parties or traditional trick-or-treating.”


In other news...


Unemployment rate drops to 6.2% from July's 7.1%.

The state added more than 34,000 non-farm jobs in August.  Wisconsin's rate is below the national unemployment rate of 8.4%.


WEDC increases amount of loans available to Kenosha businesses affected by protests.

WEDC had previously made available $1 million in interest-free microloans available to businesses affected by the protests in the wake of the Jacob Blake shooting.  On Wednesday, the agency added $3 million to the fund and increased the size of available loans from $20,000 to $50,000.


Secretary of State Mike Pompeo delivered a speech at the State Capitol.

The Wednesday speech to lawmakers focused on foreign policy issues.  Senate President Roger Roth invited Pompeo to speak after receiving suspicious emails from the Chinese consulate in Chicago encouraging him to back a resolution praising China for its handling of the pandemic.


Campaigns & elections...


Federal judge rules that WI election clerks must accept absentee ballots until November 9th, so long as they're postmarked by election day.

Previously, only ballots actually received by election day, November 3rd this year, would be counted.  In his ruling, the judge noted the expected onslaught of absentee ballots expected this fall due to concerns about voting in person amid the pandemic.  

The ruling also extended various deadlines for applying for absentee ballots and rejected a request from the state Democratic Party to loosen photo ID requirements.  The GOP-controlled Legislature on Thursday said it plans to appeal.


WI GOP outraised State Democrats in latest reporting period, but still outspent 16-1.

The GOP raised $1.7 million between July 28th and August 31st, thanks largely to $1.55 million in contributions from Beloit billionaire Diane Hendricks.  They held $2.7 million cash on hand at the end of the period.

But the Democrats outspent the GOP more than 16-to-1 during the five-week period and had more than twice as much money in the bank heading into the fall with $5.7 million cash on hand.


State Dem Party raises $4.25 million with Princess Bride fundraiser.

The cast members from the 1987 film held a virtual script reading, drawing more than 100,000 viewers who were required to make a minimum $5 contribution to the Party.  The fundraiser was held after the reporting deadline for August and is not reflected in the numbers above.


Biden visited Manitowoc on Monday; VP Pence visits Eau Claire today.

In remarks delivered at a foundry in Manitowoc, Biden said President Trump choked when it came to his responsibility to face the COVID-19 pandemic.  It was Biden's second visit to Wisconsin in the last month.

Today's visit to Midwest Manufacturing is Pence's ninth visit to Wisconsin in 2020.


UW Research poll shows continued Biden lead.

The new poll found 50 percent of likely voters backed Biden this month, while 46 percent supported Trump. That is inside the margin of error.  Last month, the spread was 52-44 in Biden's favor.


Stay safe out there,

Ryan, Buddy & Cynthia
The Firm Consulting


 


WI Coalitition PPP Forgiveness Letter


Please see letter below from the WBA and our participation in this request.

Dear Colleagues,
 
Thank you all for responding so quickly to my request last week to join WBA in a coalition letter to our Wisconsin delegation. Attached for your use with your members is the letter I emailed today on behalf of all of us. I really appreciate your willingness to join WBA on this critical effort to streamline PPP loan forgiveness!
 
If there is anything you need from me or WBA, please don’t hesitate to let me know. I hope you all continue to stay healthy and well.
 
Sincerely,
 Rose Oswald Poels
President and CEO | Wisconsin Bankers Association | 608.441.1205 | www.wisbank.com





Dear Members of the Wisconsin Congressional Delegation:

The undersigned Wisconsin trade associations, representing various industries across the state, write to urge you to pass as expeditiously as possible legislative proposals to make the Paycheck Protection Program (PPP) loan forgiveness process simpler and less technical for small business borrowers.

The nearly 5 million small businesses that participated in the PPP have been significantly harmed this year and face continued risk because of the ongoing COVID-19 pandemic. While the PPP was a critical lifeline when businesses needed it most, as these small businesses continue to recover, having to complete a complicated forgiveness process only adds to their burden. Small business owners must not be distracted from the challenge of adapting their businesses to a new environment and protecting the safety of their employees and customers by a detailed and demanding forgiveness process or the expense of hiring an accountant.

While we support congressional efforts and ongoing negotiations to assist all Americans, we do not believe small businesses should be entangled in the differences over a larger COVID relief package. With limited days left in the floor period, we urge you to work expeditiously and in a bipartisan manner to ensure that well-meaning businesses will not be harmed due to an overly-complicated Small Business Administration (SBA) process on PPP loan forgiveness.

Lawmakers have introduced several legislative proposals to make the forgiveness process easier for small business borrowers. For example, proposals offered by Senate Small Business Committee Chairman Marco Rubio as part of S. 4321; S. 4117, The Paycheck Protection Program Small Business Forgiveness Act, sponsored by Senators Kevin Cramer, Bob Menendez, Thom Tillis and Kyrsten Sinema (with 30 cosponsors); and the House companion, H.R. 7777, sponsored by Representatives Chrissy Houlahan and Fred Upton (with 70 cosponsors).

If S. 4117 or H.R. 7777 were enacted, these proposals would forgive PPP loans of less than $150,000 upon the borrower’s completion of a simple, one-page forgiveness document. Simplifying the forgiveness application process for the smallest borrowers will provide additional relief to these businesses by eliminating the existing requirement to spend several hours dealing with onerous paperwork or expending precious dollars on consultants in order to comply with the existing PPP loan forgiveness forms. According to the SBA’s data, PPP loans of $150,000 and under account for approximately 85 percent of total recipients, but less than 26 percent of loan dollars.

This simplified forgiveness for all loans of $150,000 and under will also relieve SBA from an enormous administrative burden created by millions of requests for forgiveness. As the country continues to struggle with the economic consequences of the COVID-19 pandemic, S.4117 or H.R. 7777, or a similar proposal, will allow SBA to direct its limited resources to help our nation’s small businesses.

Helping small businesses throughout the pandemic has consistently been bipartisan. We strongly urge members of the Senate and House to continue these bipartisan efforts by quickly supporting these common-sense PPP forgiveness proposals to provide relief to millions of small businesses. Thank you for your consideration

Sincerely,

Wisconsin Association of Home Inspectors, Inc.
Wisconsin Bankers Association
Wisconsin Cheese Makers Association
Wisconsin Chiropractic Association
Wisconsin Credit Union League
Wisconsin Dairy Products Association
Wisconsin Dental Association
Wisconsin Economic Development Association
National Federation of Independent Business in Wisconsin
Wisconsin Independent Businesses
Wisconsin Manufacturers and Commerce
Wisconsin Mortgage Bankers Association
Wisconsin Petroleum Marketers and Convenience Store Association
Wisconsin Restaurant Association
Wisconsin Society of Land Surveyors

 



WMBA 2020-2021 Dues Renewal - Due September 30th

Have you renewed your WMBA annual dues? Reminder mails were sent via the database to all current members with a link to your online profile for payment. If your company has an Unlimited Regular or Unlimited Associate membership, your Bundle Administrator received the renewal email.

Payments can be made by credit card online or by company check. If you prefer to renew by mail, complete the application form and submit with your payment.

For more details about membership, go to the WMBA Membership page.


Upcoming Statewide Events

2020 Best in Business

NEW Company Community Involvement Program Award added
April 28, 2021

 

The Best in Business committee has added an additional award that will recognize the many community involvement programs being implemented by our WMBA member companies.

To be recognized and considered for the award, please click on the link below and describe your program and results in the state of Wisconsin. Direct this request to your Marketing Department, HR Department or to the person who manages the program for your company.

All you need to do is click on the link below with your program details. Questions can be directed to info@wimba.org.

https://www.surveymonkey.com/r/20Co_InvolvementAward

All nominations are due by October 15, 2020.



Thank you to our 2020 Event Sponsor: 

 


2020 Statewide Peer Chat

A new feature on the member website page is a discussion forum where you can add your comments to a posted topic or suggest another topic. There are currently three topics posted including: 

- eClosings - Remote Online Notarization
- Closings at your bank or company
- How are you effectively managing your remote staff?

 

You can find the Peer Chat at: https://wmba.wildapricot.org/MemberChat/


2020 Online Event Calendar

Check out the new Online Event Calendar on the WMBA website that will include Statewide events, Board Meetings, Chapter Events and Educational Events. If you have an event to add, use the Suggest Event feature to give us the details to add to the calendar.

The calendar can be found at: http://wimba.org/Events


Milwaukee Chapter Events



For future updates, go to the Milwaukee Chapter page.
 


Madison Chapter Events

The Madison Chapter is adapting to the new working environment. We are looking for opportunities to assist our members through the rush of business during the pandemic.
 
We do look forward to the Madison Chapter Golf Outing on Thursday, October, 1st. We expect a great turnout at Pleasant View Golf Course. Just prior to the Golf Outing, we will be presenting the Past President Award to Amy Gile-Enge. We are also excited to recognize Dave Taylor as the recipient of the Madison Chapter Distinguished Service Award Recipient.

 



Madison Chapter Annual Golf Outing
October 1, 2020
NEW LOCATION AND FORMAT
Pleasant View Golf Course, Middleton


Please join us for our annual golf event at Pleasant View Golf Course and a day outside on the links!  Instead of a shotgun start, we will have a tee-time format with groups going out every 12 minutes from 10am-12pm. 

Thursday, October 1, 2020

For all details and to register, go to: Madison Golf Outing Event Page.



Thank you to our Sponsors:

Lunch Sponsor


Beverage Cart Sponsor



Beverage Cart Sponsor

 



MBA Update

MBA: Share of Loans in Forbearance Drops to 6.87%

September 29, 2020

The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey reported loans now in forbearance decreased by 6 basis points to 6.87% of servicers’ portfolio volume as of September 20, from 6.93% the prior week. MBA estimates 3.4 million homeowners remain in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the 16th week in a row to 4.46% – a 9-basis-point improvement. Ginnie Mae loans in forbearance remained flat compared to the previous week at 9.15%, and the forbearance share for portfolio loans and private-label securities also remained flat, at 10.52%. The percentage of loans in forbearance for depository servicers decreased 7 basis points to 7.11%, and the percentage of loans in forbearance for independent mortgage bank servicers decreased 3 basis points to 7.23%.

“The share of loans in forbearance continues to decline and is now at a level not seen since mid-April,” said Mike Fratantoni, MBA Senior Vice President and Chief Economist. “Many homeowners with GSE loans are exiting forbearance into a deferral plan and resuming their original mortgage payment, but waiting to pay the forborne amount until the end of the loan. However, the overall picture is still somewhat of a mixed bag. The recent uptick in forbearance requests, particularly for those with FHA or VA loans, is leaving the Ginnie Mae share elevated, as the pace of new requests meets or exceeds the pace of exits.” 

Fratantoni added continued churn in the job market “is likely keeping many homeowners who have been in forbearance reluctant to exit, given the level of economic uncertainty.”

Key findings of MBA’s Forbearance and Call Volume Survey – September 14 – 20

  • Total loans in forbearance decreased by 6 basis points relative to the prior week: from 6.93% to 6.87%.
    • By investor type, the share of Ginnie Mae loans in forbearance remained flat relative to the prior week at 9.15%.
    • The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior week: from 4.55% to 4.46%.
    • The share of other loans (e.g., portfolio and PLS loans) in forbearance remained flat relative to the prior week at 10.52%.
  • By stage, 30.26% of total loans in forbearance are in the initial forbearance plan stage, while 68.37% are in a forbearance extension. The remaining 1.37% are forbearance re-entries.
  • Total weekly forbearance requests as a percent of servicing portfolio volume (#) increased relative to the prior week: from 0.10% to 0.11%.
  • Weekly servicer call center volume:
    • As a percent of servicing portfolio volume (#), calls increased from 6.9% to 8.3%.
    • Average speed to answer decreased from 3.5 minutes to 3.0 minutes. 
    • Abandonment rates decreased from 7.0% to 6.9%.
    • Average call length remained flat relative to the prior week at 7.8 minutes.
  • Loans in forbearance as a share of servicing portfolio volume (#) as of September 20:
    • Total: 6.87% (previous week: 6.93%)
    • IMBs: 7.23% (previous week: 7.26%)
    • Depositories: 7.11% (previous week: 7.18%)

MBA’s latest Forbearance and Call Volume Survey represents 74% of the first-mortgage servicing market (37.1 million loans). To subscribe to the full report, go to www.mba.org/fbsurvey.
If you are a mortgage servicer interested in participating in the survey, email fbsurvey@mba.org.



Commercial/Multifamily Mortgage Debt Continued Rise in the Second Quarter of 2020

 

WASHINGTON, D.C. (September 28, 2020) 

The level of commercial/multifamily mortgage debt outstanding rose by $43.6 billion (1.2 percent) in the second quarter of 2020, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report.

Total commercial/multifamily debt outstanding rose to $3.76 trillion at the end of the second quarter. Multifamily mortgage debt alone increased $32.2 billion (2.0 percent) to $1.6 trillion from the first quarter of 2020.

“Despite a drop off in new commercial and multifamily mortgage originations in the second quarter, the total amount of mortgage debt outstanding continued to rise,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The pandemic is having different impacts on various property types and capital sources. Loans backed by multifamily properties accounted for almost three-quarters of the total growth, and Fannie Mae, Freddie Mac, and FHA accounted for nearly three-quarters of that amount.”

The four largest investor groups are: banks and thrifts; federal agency and government sponsored enterprise (GSE) portfolios and mortgage backed securities (MBS); life insurance companies; and commercial mortgage backed securities (CMBS), collateralized debt obligation (CDO) and other asset backed securities (ABS) issues.

Commercial banks continue to hold the largest share (39 percent) of commercial/multifamily mortgages at $1.5 trillion. Agency and GSE portfolios and MBS are the second largest holders of commercial/multifamily mortgages (21 percent) at $775 billion. Life insurance companies hold $574 billion (15 percent), and CMBS, CDO and other ABS issues hold $518 billion (14 percent). Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans appear in the report in the “CMBS, CDO and other ABS” category.

MBA’s analysis summarizes the holdings of loans or, if the loans are securitized, the form of the security. For example, many life insurance companies invest both in whole loans for which they hold the mortgage note (and which appear in this data under Life Insurance Companies) and in CMBS, CDOs and other ABS for which the security issuers and trustees hold the note (and which appear here under CMBS, CDO and other ABS issues).

MULTIFAMILY MORTGAGE DEBT OUTSTANDING
Looking solely at multifamily mortgages in the second quarter of 2020, agency and GSE portfolios and MBS hold the largest share of total multifamily debt outstanding at $775 billion (48 percent) , followed by banks and thrifts with $474 billion (30 percent), life insurance companies with $167 billion (10 percent), state and local government with $93 billion (6 percent), and CMBS, CDO and other ABS issues holding $53 billion (3 percent). Nonfarm non-corporate businesses hold $21 billion (1 percent).

CHANGES IN COMMERCIAL/MULTIFAMILY MORTGAGE DEBT OUTSTANDING
In the second quarter, agency and GSE portfolios and MBS saw the largest gains in dollar terms in their holdings of commercial/multifamily mortgage debt – an increase of $22.9 billion (3.1 percent). Commercial banks increased their holdings by $14.6 billion (1.0 percent), life insurance companies increased their holdings by $2.1 billion (0.4 percent), and CMBS, CDO, and other ABS issues increased their holdings by $1.7 billion (0.3 percent).
In percentage terms, agency and GSE portfolios and MBS saw the largest increase – 3.1 percent – in their holdings of commercial/multifamily mortgages. Conversely, REITs saw their holdings decrease 3.0 percent.

CHANGES IN MULTIFAMILY MORTGAGE DEBT OUTSTANDING
The $32.2 billion increase in multifamily mortgage debt outstanding from the first quarter of 2020 represents a 2.0 percent increase. In dollar terms, agency and GSE portfolios and MBS saw the largest gain – $22.9 billion (3.1 percent) – in their holdings of multifamily mortgage debt. Life insurance companies increased their holdings by $2.5 billion (1.5 percent), and state and local government increased by $1.4 billion (1.5 percent). REITs saw the largest decline in their holdings of multifamily mortgage debt, down $602 million (11.8 percent). 

MBA’s analysis is based on data from the Federal Reserve Board’s Financial Accounts of the United States, the Federal Deposit Insurance Corporation’s Quarterly Banking Profile and data from Wells Fargo Securities. More information on this data series is contained in Appendix A.

MBA’s complete Commercial/Multifamily Mortgage Debt Outstanding report can be downloaded here: www.mba.org/documents/research/2Q20MortgageDebtOutstanding.pdf.              
 

###
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 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 to 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 2,100 companies includes all elements of real estate finance: independent mortgage banks, mortgage brokers, commercial banks, thrifts, REITs, Wall Street conduits, life insurance companies, credit unions, and others in the mortgage lending field. For additional information, visit MBA's website: www.mba.org.
 
 

  

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