Texas Mortgages – Alexandra and Austin http://alexandraandaustin.com/ Fri, 11 Jun 2021 16:44:38 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://alexandraandaustin.com/wp-content/uploads/2021/05/default1.png Texas Mortgages – Alexandra and Austin http://alexandraandaustin.com/ 32 32 Plaza Home Mortgage amends reverse jumbo programs https://alexandraandaustin.com/plaza-home-mortgage-amends-reverse-jumbo-programs/ https://alexandraandaustin.com/plaza-home-mortgage-amends-reverse-jumbo-programs/#respond Fri, 11 Jun 2021 11:20:58 +0000 https://alexandraandaustin.com/plaza-home-mortgage-amends-reverse-jumbo-programs/ Plaza Home Mortgage, a wholesale and correspondent mortgage lender, has announced some changes to its reverse jumbo program. The San Diego-based mortgage company said Thursday it had improved interest rates and capital limit factors (PL) (LTVs) in its program, which now offers private reverse mortgages up to $ 4 million with no FHA mortgage requirement, […]]]>


Plaza Home Mortgage, a wholesale and correspondent mortgage lender, has announced some changes to its reverse jumbo program.

The San Diego-based mortgage company said Thursday it had improved interest rates and capital limit factors (PL) (LTVs) in its program, which now offers private reverse mortgages up to $ 4 million with no FHA mortgage requirement, fixed rate as low as 5.50% and accepts FICOs as low as 640.

Read more: Jumbo loans continue to grow in the first quarter

“We are enhancing our reverse jumbo offering in direct response to mortgage brokers seeking flexible financing and income solutions for senior homeowners,” said Mark Reeve, Vice President of the Reverse Mortgage Division at Plaza Home Mortgage . “Our program reduces the cost of jumbo reverse financing and is an ideal product for housing-rich seniors at a time when housing appreciation is at or near its highest level.”

Plus, there are no lender fees, and the program has no limits on minimum or maximum lump sum payment requirements at closing.

The program is available through Plaza’s wholesale channel and covers a wide range of property types (single family, 2-4 unit, townhouse, and condominium). The program will be offered in 18 states including Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Maryland, Nevada, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Texas, Utah and Washington.



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Average mortgage rates in the United States are falling; 30-year loan at 2.96% https://alexandraandaustin.com/average-mortgage-rates-in-the-united-states-are-falling-30-year-loan-at-2-96/ https://alexandraandaustin.com/average-mortgage-rates-in-the-united-states-are-falling-30-year-loan-at-2-96/#respond Thu, 10 Jun 2021 19:03:55 +0000 https://alexandraandaustin.com/average-mortgage-rates-in-the-united-states-are-falling-30-year-loan-at-2-96/ Mortgage rates remained near their historic lows this week. The 30-year benchmark home loan has held steady below the 3% mark amid further signs of economic recovery from the pandemic recession. Mortgage buyer Freddie Mac said Thursday the 30-year interest rate loan average fell to 2.96% from 2.99% last week. The rate on a 15-year […]]]>


Mortgage rates remained near their historic lows this week. The 30-year benchmark home loan has held steady below the 3% mark amid further signs of economic recovery from the pandemic recession.

Mortgage buyer Freddie Mac said Thursday the 30-year interest rate loan average fell to 2.96% from 2.99% last week.

The rate on a 15-year loan, which is a popular option among homeowners refinancing their mortgages, edged down to 2.23% from 2.27% last week.

In the latest economic news, the government reported that the number of Americans claiming unemployment benefits fell last week for the sixth week in a row, to 376,000, a new pandemic low.


“Despite the strength of the economy, the housing market is experiencing a slowdown in purchase demand activity due to slightly higher mortgage rates,” said Sam Khater, chief economist at Freddie Mac. “However, this has yet to translate into a lower trajectory for house prices, as the shortage of inventory continues to keep prices high.”

Another report on Thursday revealed that Americans moved to slightly larger homes in cheaper areas. On average, people who moved to another city in 2020 ended up in a zip code where the average home value was almost $ 27,000 lower than their previous zip code, according to Zillow.

Rising prices, the housing shortage in the market, and the ability to work remotely motivated many Americans to relocate last year.



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TIAA Bank to sell its correspondent activity to PenFed https://alexandraandaustin.com/tiaa-bank-to-sell-its-correspondent-activity-to-penfed/ https://alexandraandaustin.com/tiaa-bank-to-sell-its-correspondent-activity-to-penfed/#respond Wed, 09 Jun 2021 22:18:21 +0000 https://alexandraandaustin.com/tiaa-bank-to-sell-its-correspondent-activity-to-penfed/ TIAA Bank sells its corresponding loan platform to Federal Pentagon Credit union for an undisclosed sum of money. The deal represents the latest exit from mortgage space for the Jacksonville-based finance company. TIAA Bank has laid off more than 200 workers in the past six months as it moves away from mortgage management. In 2019, […]]]>


TIAA Bank sells its corresponding loan platform to Federal Pentagon Credit union for an undisclosed sum of money.

The deal represents the latest exit from mortgage space for the Jacksonville-based finance company. TIAA Bank has laid off more than 200 workers in the past six months as it moves away from mortgage management.

In 2019, the lender announced that it would be leaving the retail circuit, just three years after acquiring EverBank for $ 2.5 billion in cash. TIAA has since focused on digital mortgages.

The company released a statement this week saying it is in the process of reaching out to the more than 200 mortgage lenders it works with in the correspondence channel about the transition to PenFed.

“We anticipate a smooth transition for our correspondent loan associates and business partners, with no downtime as the TIAA Bank team moves to PenFed,” TIAA said in a statement.


How Lenders Will Benefit from Proctor Financial’s Acquisition of Loan Protector

HW + Editor-in-Chief Brena Nath joins Proctor Loan Protector Executives Damon Laprade and Mike Dimas to discuss the acquisition and new brand, Proctor Loan Protector.

Presented by: Proctor Loan Protector

In PenFed, TIAA has found a business partner who knows their business intimately. Former TIAA CFO Jill Streit left to become PenFed CFO in 2020.

PenFed, the second largest credit union in the country, is seeing an increase in mortgage lending. The credit union issued a record $ 8.2 billion in mortgages last year, mostly in the Washington, DC area. PenFed said that in the first quarter of 2021, it issued $ 3 billion in mortgages, the best quarter in its history. PenFed’s membership has grown to over 2.2 million and its assets to $ 27 billion.

“We value the reputation the TIAA team has built over the past decade and believe this non-delegated activity will be a strong addition to our delegated program,” PenFed told partners. “You will now have the choice between one or the other of the channels or you will be able to subscribe to both options. “

This is the second major corresponding corporate sale in recent months. Texas Capital Bank sells its entire portfolio of $ 14 billion in mortgage management rights and the corresponding platform to PHH mortgage, a subsidiary of Ocwen Financial Corporation, for a “modest profit”. It will transfer approximately 60,000 loans to PHH Mortgage’s service platform.



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Regions Bank bets $ 1 billion in home improvement market https://alexandraandaustin.com/regions-bank-bets-1-billion-in-home-improvement-market/ https://alexandraandaustin.com/regions-bank-bets-1-billion-in-home-improvement-market/#respond Tue, 08 Jun 2021 22:23:56 +0000 https://alexandraandaustin.com/regions-bank-bets-1-billion-in-home-improvement-market/ Bank of regions seeks to make a big dent in the home improvement loan space, by making a deal to acquire EnerBank United States for $ 960 million in cash. EnerBank, a Utah affiliate CMS Energy, has loan balances totaling $ 2.8 billion as of March 31, 2021 and is one of the largest home […]]]>


Bank of regions seeks to make a big dent in the home improvement loan space, by making a deal to acquire EnerBank United States for $ 960 million in cash.

EnerBank, a Utah affiliate CMS Energy, has loan balances totaling $ 2.8 billion as of March 31, 2021 and is one of the largest home improvement lenders in the United States.

The Salt Lake City-based lender says it has worked with more than a million homeowners since its founding in 2002 and funded $ 11.6 billion in home improvement projects. EnerBank says it works with 10,000 entrepreneurs and develops personalized loan programs for their clients. EnerBank finances most of its loans on its balance sheet through FDIC– insured CDs negotiated; it also charges fees to contractors.

Regions, a retail lender with a footprint of more than 1,300 physical offices, has already delved into the specialty finance industries. In 2020, he acquired the equipment finance lender Ascentium capital and a year earlier, took over an institutional investment firm Highland Associates.

“We have carefully evaluated the home improvement point-of-sale loan space for a number of years, and we believe this is the right partner at the right time to achieve our vision.” said Scott Peters, head of consumer banking at Regions. . “EnerBank’s platform and its skilled financial professionals, combined with the reach and experience of the regions consumer banking teams, will help us deepen customer relationships while reaching new customers.” with convenient home improvement loan options. “

The EnerBank team, led by Charlie Knadler, will join Regions as part of its consumer banking group reporting to Peters. It will retain its headquarters in Salt Lake City. Regions’ acquisition of EnerBank from CMS is expected to be finalized in the fourth quarter of 2021.

Based on data from Finding polygons, Regions provided approximately $ 15 billion in loans in 2020, with the majority of its business in the Southeast and Texas. It mainly generated mortgage withdrawal and purchase refisals in 2020, according to HMDA statistics in Polygon’s database.

Renovation funding is expected to increase 3.3% in 2021 to $ 433 billion, according to a study by the Joint Center for Housing Studies at Harvard University.

Space remains dominated by custodian banks. The main lender for home improvement loans in 2020 was PNC Bank, which issued 17,464 loans, for a volume of $ 1.74 billion in 2020. Bank of America followed closely with 17,056 home improvement loans worth $ 2.39 billion.

Given the growing interest in converting rooms to home offices and the lack of new inventory, non-depository banks are taking note. America’s Finance in May also announced the launch of Finance of America Home Improvement, a new business division that includes the acquisition of benji.



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Texas Trust Expands San Angelo Branch https://alexandraandaustin.com/texas-trust-expands-san-angelo-branch/ https://alexandraandaustin.com/texas-trust-expands-san-angelo-branch/#respond Mon, 07 Jun 2021 21:32:44 +0000 https://alexandraandaustin.com/texas-trust-expands-san-angelo-branch/ The old Bank of America building on the corner of West Twohig Avenue and US-277 in San Angelo is undergoing a major renovation for its new owner, Texas Trust Credit Union. The $ 1.6 billion credit union plans to completely renovate the building inside and out for a new retail branch. The 3,094-square-foot building will […]]]>


The old Bank of America building on the corner of West Twohig Avenue and US-277 in San Angelo is undergoing a major renovation for its new owner, Texas Trust Credit Union.

The $ 1.6 billion credit union plans to completely renovate the building inside and out for a new retail branch. The 3,094-square-foot building will provide nearly 50 percent more space than the credit union’s current branch on Main Street in San Angelo.

The branch, designed by Interior Design Group, will be an open floor concept intended to create a collaborative environment. The new design will offer a more personal and innovative member-centered approach that will focus on building relationships with members.

This location will provide stand-alone universal kiosks that will allow members to manage all of their financial affairs with a single cashier. In addition, there will be a self-service kiosk that members can use to view their transaction history, print their statements and check their balances. The branch will also offer an express window option for members with simple transactions.

Texas Trust offers residents of San Angelo and Tom Green County financial products and services for every stage of life, all designed to help them build a brighter financial future. The new full-service branch will offer checking and deposit services, new home mortgages or refinancing, car and recreational vehicle loans, low-interest credit cards, mortgage services, and more. insurance and investment, and more. This branch will also offer three drive-thru lanes, including a wide lane for large vehicles, for contactless service and an outdoor ATM in a well-lit area so members have easy access to their money at any time of the day. day.

The new branch will be managed by Victoria Chappa, who currently oversees the Texas Trust’s current downtown location.

“When Bank of America decided to exit the San Angelo market, we happily stepped in to help people build a brighter financial future,” said Jim Minge, CEO of Texas Trust Credit Union. “We have a long history here and continue to view this community as a great place to invest and grow. We guarantee that our members will be impressed with our new Twohig branch.

The new branch is scheduled to open in late 2021, replacing the current San Angelo main branch located at 34 South Main Street.



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Redefining the rural | katy times https://alexandraandaustin.com/redefining-the-rural-katy-times/ https://alexandraandaustin.com/redefining-the-rural-katy-times/#respond Sun, 06 Jun 2021 01:56:00 +0000 https://alexandraandaustin.com/redefining-the-rural-katy-times/ By Kelty Garbee | Katy Times Special How do you know if you live in the city or in the countryside? For some, any place without Whole Foods is rural. For others, a red light is a harbinger of urban sprawl. The federal government has over ten definitions of what is rural and what is […]]]>


By Kelty Garbee | Katy Times Special

How do you know if you live in the city or in the countryside? For some, any place without Whole Foods is rural. For others, a red light is a harbinger of urban sprawl.

The federal government has over ten definitions of what is rural and what is not. One of them, however, may be changing. And that could have big implications for our Texas counties.

The Federal Office of Management and Budget defines areas as urban if they contain a community of at least 50,000 people, called a metropolitan statistical area. In January, the OMB proposed changing the minimum population threshold for MSAs from 50,000 to 100,000. This new definition would move 251 counties nationwide – and 14 in Texas – out of the metropolitan category.

With a simple swipe of a computer key, nearly 820,000 Texans in cities like San Angelo, Longview, Wichita Falls and Victoria would be reclassified. In the popular vernacular, they would move from urban to rural. I have visited a lot of rural Texas and I can tell you, none of these towns are rural. Each has a target, at least one Starbucks, and other non-rural characteristics.

But does it really matter how a federal agency categorizes a place?

The problem is that this definition is used by federal agencies to distribute funds. Even though the OMB insists that agencies not use the definitions to award grants, money for highways, housing, and community block grants are all issued in part based on the OMB definition. of the metropolis. We don’t know exactly how many federal agencies use OMB definitions to allocate funds, but a few examples include the Department of Health and Human Services, the Federal Housing and Finance Agency, and the US Department of Housing and Urban Development, so that’s clear. will have broader implications.

Texas Rural Funders is a collaboration of funders aimed at bringing attention and resources to rural Texas. We are deeply immersed in rural Texas and the issues that affect rural Texans, their businesses, families and communities. We are a welcoming bunch, but we want communities in Texas to know the potentially huge impact of this seemingly innocuous movement.

The new OMB definition has been in the works for years. The current metropolitan definition was developed after the 1950 census. The country’s population has doubled since then, so the OMB estimated that the minimum population size of a metropolitan area should also double from 50,000 to 100. 000.

No one knows what this will mean for all federal programs using this definition. It appears that the OMB made its recommendation for statistical reasons. However, there will likely be consequences in the real world. This could alter federal reimbursements for health care costs in already underserved communities. This could mean less mortgage lending in rural areas, which are identified as underserved by the Federal Housing Finance Agency, and less public transport.

According to the Brookings Institution, the current non-metropolitan county has an average population of 23,240. The proposed reclassification means that non-metropolitan areas would have an average of 75,533 people. Cities of these medium sizes are different in every way.

In Texas, the 14 counties that would be reclassified are 3.6 times larger than the counties currently in the rural category. And the new definition of non-metropolitan areas would encompass communities ranging from 10,000 to 100,000 people. However, despite the differences between such a wide range, they would be considered the same when applying for federal grants from certain government programs. There will likely be unintended consequences for communities, large and small, at either end of the newly defined category.

There is a simple solution to this problem. The OMB should defer any action on its proposal. It should bring together stakeholders, rural experts and local leaders to consider the consequences of such a change. Let’s see what effect this new definition of rural would have on 170 counties in Texas before it was made official.

Kelty Garbee is Executive Director of Texas Rural Funders, a philanthropic coalition that works with rural communities to develop and implement solutions to their unique needs.

About Texas Rural Funders: Texas Rural Funders is a coalition of funders who believe the future of Texas depends on strong and prosperous rural communities. We are committed to working with rural communities to develop and implement solutions to their unique challenges. Learn more and find online tools and resources for rural Texas communities at texasruralfunders.org.



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LEGAL CORNER: Beware of Reverse Mortgages | Notice https://alexandraandaustin.com/legal-corner-beware-of-reverse-mortgages-notice/ https://alexandraandaustin.com/legal-corner-beware-of-reverse-mortgages-notice/#respond Sat, 05 Jun 2021 17:00:00 +0000 https://alexandraandaustin.com/legal-corner-beware-of-reverse-mortgages-notice/ Editor’s Note: The information in this column is not intended to provide legal advice, but to provide a general understanding of the law. All readers with a legal problem, including those whose questions are discussed here, should consult a lawyer for advice on their particular situation. While I love Tom Selleck and his Sackett movies, […]]]>


Editor’s Note: The information in this column is not intended to provide legal advice, but to provide a general understanding of the law. All readers with a legal problem, including those whose questions are discussed here, should consult a lawyer for advice on their particular situation.

While I love Tom Selleck and his Sackett movies, I don’t think he (or anyone in Hollywood) should be giving me financial advice. There is currently a marketing blitz targeting seniors to get them to take out reverse mortgages. But, as the old saying goes, “If it sounds too good to be true, it probably is.” Be very careful with reverse mortgages.

Let me explain the term “reverse mortgage” to you. This is a type of home equity loan now permitted by the Texas Constitution. It allows Texas homeowners, aged 62 or older, to borrow against the equity in their home without having to pay off mortgage debt during their lifetime, as long as they continue to live in their home and keep up to date. their property taxes and insurance payments. . The purpose or intention of reverse mortgages is to provide seniors with the means to stay in their home for the rest of their lives by converting the equity in their home into cash that can be used to pay housing costs. medical care or other costs of living.

This particular type of home equity loan is called a “reverse mortgage” because the payments on the mortgage are supposed to be reversed – from the lender to the homeowner. Unlike a home equity loan where the owner is required to immediately begin repaying the principal amount of the loan in equal monthly installments that amortize and fully repay the loan on the due date, disbursements paid to the owner under a reverse mortgage simply earns interest, including interest. on interest, until maturity, when the loan balance, consisting of principal and interest, is repaid to the lender in a final lump sum payment. A common misconception about reverse mortgages is that the transaction involves the transfer of title to the home to the mortgage lender in exchange for monthly payments. But, a reverse mortgage is simply a loan secured by a lien on homestead – much like the lien on a conventional or “term” mortgage.

The closing costs are similar but comparatively higher than those charged for a conventional mortgage. FHA-insured HECM reverse mortgages, for example, which account for 90 percent of all reverse mortgages made nationwide, have a 2 percent loan origination fee payable to the mortgage lender, a 2 percent FHA mortgage insurance premium and a continuous annual MIP premium of 0.5% factored into the monthly interest rate and a management fee of $ 35 per month set aside for payment to the manager of loan over the term of the loan. Other fees and charges are comparable to other mortgage loans.

A reverse mortgage is a non-recourse loan; the owners have no personal responsibility for the repayment of the loan. Homeowners are not required to make repayments during the term of the loan, and the full loan amount owed, including all amounts advanced and accrued interest (including interest on interest), is usually repaid on the loan. proceeds of sale when the homestead is sold by the borrower or by the borrower’s estate after the death of the borrower or the last of the borrowers. When a reverse mortgage becomes payable, the lender or noteholder should consider only the recovery of the homestead under their mortgage as the exclusive remedy. It is important to understand that the homestead will need to be sold or that the borrower’s heirs will repay the loan from the other assets of the estate if the borrower’s family wishes to retain the homestead.

Economic experts warn reverse mortgages could be the next big mortgage bankruptcy. A reverse mortgage could force the property to be sold for repayment. Therefore, anyone seeking a reverse mortgage should consult their estate planning lawyer. In the meantime, do your research (Mr. Selleck is NOT a good investor himself) or look for a copy of the October 2009 issue of Consumer Reports and read their article on reverse mortgages.

Sam A. Moak is a lawyer with the Huntsville law firm of Moak & Moak, PC. He is licensed to practice in all areas of law by the Supreme Court of Texas, is a member of State Bar College, and a member of the Real Estate, Estates and Trusts Law Section of the State Bar of Texas. www.moakandmoak.com



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Should you leave your home to your children in your will? https://alexandraandaustin.com/should-you-leave-your-home-to-your-children-in-your-will/ https://alexandraandaustin.com/should-you-leave-your-home-to-your-children-in-your-will/#respond Fri, 04 Jun 2021 21:31:49 +0000 https://alexandraandaustin.com/should-you-leave-your-home-to-your-children-in-your-will/ 3. Do your children get along well? The median price of homes in the United States – half lower, half higher – is $ 319,200. If you have multiple heirs and bequeath them a house worth several hundred thousand dollars, it can be difficult for them to agree on what to do with it. “If […]]]>



3. Do your children get along well?

The median price of homes in the United States – half lower, half higher – is $ 319,200. If you have multiple heirs and bequeath them a house worth several hundred thousand dollars, it can be difficult for them to agree on what to do with it.

“If the children are geographically far from the home, which is more common today, it can cause dissension among beneficiaries – especially if one of them is doing all the maintenance – because they cannot not fully enjoying the home provided as a legacy, ”says Gregory Giardino, CFP in Hawthorne, TX.

4. What is the title of the house?

Rules vary from state to state, but for many married couples, a home is typically held in a condominium with right of survivorship (sometimes referred to as a full tenancy), which means if one of the spouses dies , the other owns the house entirely. If both spouses die at the same time, the ownership of the house is decided by the stipulations of their will (or, in the absence of a will, by state probate laws).

It will also be important for the heirs to determine how the house will be titled and how the property will operate. What if one heir wants the money and the other two want the house? In this case, the heirs who want the house will have to buy back the one who does not want it, either in cash or through an intra-family financing contract. The last resort, of course, would be the court system, which is usually not the best place to form family ties.

Finally, are there any liens on the home for debts owed, such as tax arrears or overdue loans, that would be due when the ownership of the property changes? “Children are often surprised to learn this,” says Patricia Hausknost, CFP in Long Beach, California. “If they exceed the value of the house, it’s best to notify the first lien holder of the death and walk away. “

5. What is the tax situation?

Uncle Sam wants a share when a house is sold for a profit. The amount of the reduction comes down to what is called the base cost of ownership. Simply put, you are taxed on the difference between what you paid for the house and what you sold it for. But it is not that simple. For tax purposes, you can also add the value of certain expenses, such as major renovations, to the purchase price of the home to increase your base costs and thereby reduce the amount of profit you owe taxes on. Confuses? The IRS has a lot more to do with calculating the cost base.

The heirs get a break based on the costs. Under current law, when a person inherits a house, they get what is called a base mark-up, which means their cost base for taxes is on the date of their parents’ death or settlement of the estate. In other words, if they sell the house, the heirs won’t have to base their capital gains tax on what their parents paid for the house. Suppose the parents bought the house for $ 50,000 in 1980 and the house was worth $ 319,200 on the day the estate was settled. The heirs would have no profit on the house if they sold it immediately, and therefore no capital gains tax is due.

Parents could also sell their home today, and under the current tax code, $ 250,000 of profits will be excluded from capital gains for each person, which means a $ 500,000 exclusion from earnings for a married couple. . Some parents are tempted to transfer title to the house to their children while the parents are still alive. “Do not do it!” said Hausknost. The heirs will be responsible for the expenses of the house, including civil liability, and they will not get the gross-up base.

It should also be noted that a feature of President Joe Biden’s current tax reform proposal is the elimination of the base markup. “From a financial point of view, without the mark-up rule, it would make little difference whether the original owner left the house to the heirs or sold it himself,” says David Silversmith, CFP in Plainview, New York. . “But under the current law, I would advise my clients to keep the house and leave it to their heirs.”



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Texas Capital CEO Rob Holmes in his first 100 days of trying to turn around Texas’ 9th largest bank https://alexandraandaustin.com/texas-capital-ceo-rob-holmes-in-his-first-100-days-of-trying-to-turn-around-texas-9th-largest-bank/ https://alexandraandaustin.com/texas-capital-ceo-rob-holmes-in-his-first-100-days-of-trying-to-turn-around-texas-9th-largest-bank/#respond Thu, 03 Jun 2021 18:45:11 +0000 https://alexandraandaustin.com/texas-capital-ceo-rob-holmes-in-his-first-100-days-of-trying-to-turn-around-texas-9th-largest-bank/ Less than a year ago, Rob Holmes was a senior executive at JPMorgan Chase in Dallas and had no plans to change careers. In August, he agreed to an hour-long conversation with a Texas Capital Bank headhunter. It turned into three hours. Two months later, he was the new CEO of a Dallas-based bank with […]]]>


Less than a year ago, Rob Holmes was a senior executive at JPMorgan Chase in Dallas and had no plans to change careers. In August, he agreed to an hour-long conversation with a Texas Capital Bank headhunter. It turned into three hours.

Two months later, he was the new CEO of a Dallas-based bank with $ 40 billion in assets, although he hadn’t paid much attention to it before as he was used to looking at global markets. .

“The opportunity to come to a bank with enough size, scale, history and talent to be relevant, but also with a long trail ahead of it where we could actually build Texas flagship bank, was very appealing. “said Holmes in an interview with The morning news from Dallas.

Holmes replaced Larry L. Helm, who took office after the departure of longtime CEO Keith Cargill when a $ 5.5 billion merger with the independent McKinney-based bank collapsed in the summer. latest.

Holmes, from Dallas, said he was excited to be working closer to home.

“At first I was like, ‘Why the hell would I quit a job running a company bigger than Texas Capital at maybe the best financial services company in the world and do it?’ But the reason was that my impact could be much greater for all voters here than it could have been at JPMorgan, ”said Holmes.

The 23-year-old first non-founding CEO of the bank didn’t water down his thoughts on the bank’s position when he joined the team. On his last call for results, he described the mark as “bruised”. But Holmes believes his honesty is part of the reason he was hired.

“I think the council wanted someone [who] was frank in their assessment, lucid about the opportunities and had already done so, ”he said.

Holmes said there was never any question he had the experience for the job. He was Global Head of Corporate and Specialty Banking at JPMorgan since 2011. Previously, he was Co-Head of JPMorgan’s North American Retail Industries Investment Banking Practice and Head of Investment Banking Services for the southern region of the United States.

The question was whether he understood where Texas Capital could go.

Before accepting the job, Holmes studied the bank’s balance sheet and income statement and spoke to CEOs in and around Texas to get their perspective on the bank and its potential. By the time Holmes started the new contract in January, he knew what he wanted to do to make Texas Ninth Bank the state’s premier bank.

“We made a list of what we needed to do and got started quickly,” he said.

In the first week, Holmes implemented quarterly business reviews, which the bank had never done before. This means that each line of business is accountable to the management team to review any issues it faces.

“Once you go through a quarterly activity review, the entire management team is aware of the issues we are facing and we have reorganized ourselves around them,” said Holmes.

After three weeks of work, Holmes helped the bank – which recorded just over $ 1 billion in revenue for 2020 – raise $ 300 million in capital by selling preferred stock. This is the largest capital increase in the bank’s history, Holmes said.

“I would say that after what the bank went through in 2020, it was imperative to recapitalize the bank so that we could go on the offensive,” he said.

Three or four weeks later, the bank issued a credit-linked note in the amount of $ 275 million.

“It was really great to do because it was more capital, but it was also a diverse source of funding,” he said. “We were the first regional bank in the country to use this structure. “

Texas Capital then sold management rights for $ 14 billion in mortgages and decided to end its correspondent lending business in which a lender will offer a home buyer unqualified mortgages to help them get approval for a loan to buy a home.

“These businesses are much more valuable to a business with a large consumer footprint, which we didn’t have,” he said. “In addition, by getting rid of these companies, we have reduced the volatility of our earnings and removed the risks from the operating model. “

For the first quarter, Texas Capital reported profit of $ 80 million, an increase of about $ 89 million from the same quarter a year ago.

Holmes completed his trade moves in the first 100 days by pricing a $ 375 million subscribed public offering in subordinated notes.

So far, the bank’s capital position has improved by 270 basis points this year, Holmes said.

“Today, the bank is better capitalized and in a better financial situation than it has ever been in its history,” he said.

New roles, new recruits

Holmes, who had a 31-year career with JPMorgan Chase, also didn’t hesitate to recruit a new management team. Since January, he has created three new roles within the company, all of which have been filled: director of human resources, director of investment banking and director of treasury services.

He also hired a new chief risk officer, Tim Storms, who previously held the same role for the real estate operations of commercial bank JPMorgan. The new head of treasury services, Nancy McDonnell, also worked at JPMorgan until her retirement in 2020, as global head of commercial bank treasury and security services and other senior client roles..

“The common theme is hiring talent, which I don’t think a regional bank can compare to,” Holmes said. “These people have all had much bigger and more complex jobs and have been very successful. And so we recruit for what the bank can be, not for what it is today.

The bank also recently announced its latest lineup of hires: a senior director of diversity, equity and inclusion, chief information officer and president of mortgage finance.

Holmes also implemented a junior program for the first time at the bank. This has led to 55 new hires, who will work from August to December. The bank has a total of 1,628 employees.

“I’m as excited about this as anything I’ve done,” he said. “I think that was the biggest failure of this bank – not investing in young talent. I think it will be a huge dividend in every way as we move forward, in the short term and in the long term. “

Dallas-based Texas Capital Bank must find the gaps in its products, services and the markets it serves, Holmes said. “And if you are successful, this could be a pretty special place.”(Lynda M. González / Staff Photographer)

The next 100 days

“Now we’re going on the offensive,” Holmes said of the bank’s next 100 days.

The bank will also be making a lot of investments over the next three months. He plans to re-subscribe all of his technology investments as well as other high value and high value investments.

The bank will also look for gaps in its products and services, as well as markets it does not cover but should cover, he said. He will decide if he is in the right segments and if he has the right tolerance for risk. It will decide which platforms to upgrade and which to buy new ones. It will reduce its number of suppliers. And it will add staff and improve employee benefits and training.

“And if you’re doing well, this could be a pretty special place,” Holmes said. “And remember it’s in the best economy in the world.”

Those next decisions will culminate in the third quarter when Holmes releases a report on the gaps found by the bank in its valuation, he said.

Holmes said that with his background there was never any question that he had the expertise to do this job. But that doesn’t mean he doesn’t feel the pressure as he strives to turn Texas Capital back into a state with the most banks in the United States.

“I would be lying if I said I didn’t feel the pressure,” Holmes said. “We have over 1,800 employees who rely on the operations committee to make the right decision every time. And our customers too.



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Buyers strike? Mortgage applications fall deep into the 2019 lineup as home seekers to live off ‘Raging Mania’ https://alexandraandaustin.com/buyers-strike-mortgage-applications-fall-deep-into-the-2019-lineup-as-home-seekers-to-live-off-raging-mania/ https://alexandraandaustin.com/buyers-strike-mortgage-applications-fall-deep-into-the-2019-lineup-as-home-seekers-to-live-off-raging-mania/#respond Wed, 02 Jun 2021 21:33:45 +0000 https://alexandraandaustin.com/buyers-strike-mortgage-applications-fall-deep-into-the-2019-lineup-as-home-seekers-to-live-off-raging-mania/ Investors can still breathe hard. By Wolf Richter for WOLF STREET. Regardless of investor demand, demand from buyers needing a regular mortgage to buy a home continues to decline and, during the week ended May 28, is down 4.0% from the week before, at the lowest level since May 2020 (when mortgage demands came out […]]]>


Investors can still breathe hard.

By Wolf Richter for WOLF STREET.

Regardless of investor demand, demand from buyers needing a regular mortgage to buy a home continues to decline and, during the week ended May 28, is down 4.0% from the week before, at the lowest level since May 2020 (when mortgage demands came out of the collapse of the previous weeks), according to the Mortgage Bankers Association today.

This put mortgage applications to buy a home roughly in the middle of the 2019 range, having settled the entire pandemic boom (the sharp drop and rebound in February was a result of snowmageddon ; data via Investing.com):

More houses to buy? Wait … available-for-sale inventories of existing homes, while still low, have been rising for months and hit their highest level since November in April, and supply hit its highest level since October, according to the National Association of Realtors two weeks ago.

The NAR also confirmed the drop in sales volume: Existing home sales have been down for months and in April hit their lowest level since July 2020, after wiping out most of the pandemic peak.

This is because mortgage rates edged up from their all-time lows at the end of last year, but remain close to their all-time lows, with the average interest rate on fixed-rate mortgages 30 years with compliant balances and a down payment of 20% to 3.17%. , according to the MBA this morning:

Mortgage applications to refinance existing mortgages also weathered the pandemic peak and fell below last year’s level.

But those refi requests remain more than twice as high as at the start of 2019, when the average 30-year fixed-rate mortgage carried a now unthinkably high interest rate of 4.2%, despite having exceeded 5% even more unthinkable at the end. 2018.

What would the housing market look like with 5% mortgage rates and sky-high prices today? It was a rhetorical question. At the time, among the effects it had, it significantly calmed refi activity:

There are now a number of ‘hurdles’, as the MBA calls it, to home sales, the main hurdle being sky-high prices and, by extension, affordable supply that has fallen outside the affordability bracket of. many potential buyers.

Then there is the possibility that the explosion in volume over the past 12 months, a form of panic buying, is now showing signs of exhaustion, as many people who really wanted to buy have bought, and enough potential buyers looking for a home to live in – rather than investors – took a deep breath and stepped back from the “raging mania” and mad auction wars.

Investors would still be present in large numbers and even worry Fed officials. But enough regular homebuyers can stay away from the raging fad about where it started showing up in the numbers.

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Drone footage of aluminum and steel shingle roofs. Admire the details of each installation from a bird’s eye view.

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