RELOCATION

SARRC CONFERENCE SAN ANTONIO, TX SEPT 09, 2014

GeLaine Joachim, SCRP Premia Relocation Mortgage

Eileen Ulmer Budd Van Lines

Steve Townsend NEI

1964 2014

MORTGAGE

SARRC CONFERENCE SAN ANTONIO, TX SEPT 09, 2014

1964 2014Presented by: GeLaine Joachim, SCRP

Premia Relocation Mortgage

•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

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:GoldfingerMarnieMary PoppinsThe Pink PantherA shot in the darkMy Fair LadyLast Man on Earth

1964

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• $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 

1964

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

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Source: www.forecast-chart.com/interest-mortgage-30.html

AVERAGE INTEREST RATES: 50 YEARS

• Highest Interest Rates - 1981• Lowest Interest Rate - 2012

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

5.46

5.48 6.

22 6.53 7.

15 7.99 8.

967.

867.

37 8.13 9.

209.

138.

888.

82 9.69

11.6

514

.26 16

.68

15.6

113

.22

13.9

312

.23

10.1

010

.15

10.2

510

.40

10.0

89.

078.

437.

43 8.13

8.18

7.68

7.62

6.93 7.37 7.

956.

896.

535.

75 5.87

5.96 6.45

6.40

5.91

5.12

4.67

4.46

3.65 3.95

Annual Average Interest Rates

MORTGAGE INDUSTRY 2007 AND BEFORE

Less Restrictive Approval Standards If You Had A Pulse You Could Get A MortgageLimited/ 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

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2007

MORTGAGE INDUSTRY 2007 AND BEFORE

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 $125Departure Home- GBO, “O.K. No Documentation Required”Mortgage Subsidies; Reduced Borrowers Payment To Help Qualify For

Larger Loan Amount (3 Year Min) 8

2007

TURNING POINT 2007/2008

•HOUSING BUBBLE BURST

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FINANCIAL REFORMDODD-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

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MORTGAGE INDUSTRY – AFTER 2007 AND TODAY

Example Jumbo (Credit Scores/ Down Payment)

Full Documents RequirementsIncome (Paystubs, W-2, Employer

Letters)Asset (Bank Statements,

Investment Accounts, Retirement Accounts)

Maximum 43% Debt-to-income (DTI)

Disposition of Departure ResidenceEvidence of Sale RequiredTiming And Coordination With

Transferee and Relocation Consultant

Loan ProductsQM - limits products like; IO,

Balloon Trailing Co-borrow Income Not

Allowed (Unless Employed In New Location)

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1950

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” projectSimplify and improve mortgage disclosure formsNew form – Loan Estimate

Combines the GFE and early TILConsolidationWe PREDICT a lot of consolidation in the US

Market, Changing From Refi To Purchase Business.Multiple consolidations

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WHAT’S NEXT?

MOVING

SARRC CONFERENCE SAN ANTONIO, TX SEPT 09, 2014

1964 2014Presented by: Eileen Ulmer, CRP, GMS

Budd Van Lines

HISTORY OF MOVING

MOVING INDUSTRY - 1964

Industry Overview

Pricing• Regulated Tariff

Lifestyle• “Out on the Road”

MOVING INDUSTRY – CURRENT STATE

OverviewPricingRegulations

WAR FOR TALENT!

CALIFORNIA CARB COMPLIANCE

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• What is CARB?• Status• Future Outlook

FUTURE OF MOVING?

THE RMC’S

SARRC CONFERENCE SAN ANTONIO, TX SEPT 09, 2014

1964 2014Presented by: Steve Townsend, CRP, GMS

NEI Global Relocation

YESTERDAY’S RELOCATION

TODAY’S RELOCATION

THE RULES HAVE CHANGED…

AND WE’RE NEVER GOING BACK!

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 CHALLENGESHR’s Strategic Role

• Aging Population

• Talent Scarcity

• Workforce Dynamics

• Finding, Placing and Retaining Talent

• Strategic Supplier Partners

76 MillionOver 10,000 Baby Boomers will turn 65 each day for 18 years starting in 2011

Source: US Department of Commerce, Bureau of the Census; ICIS Chemical Business

40% Of the world’s Petroleum Engineers expected to retire over the next decade

RMC’S CHALLENGESToday’s Challenge

New Solutions for Tomorrow

Global Resources

Technology

Supplier Partnerships

Revenue

RMC’s Strategi

c Position

QUESTIONS?