Lender News https://www.lendernews.com A place where companies and job seekers work together Sat, 26 Nov 2022 13:08:07 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 Nov. 26: Thoughts inspiring LOs, from an LO; vendor news; Agency deals; conferences: nothing good happens after 9PM https://www.lendernews.com/nov-26-thoughts-inspiring-los-from-an-lo-vendor-news-agency-deals-conferences-nothing-good-happens-after-9pm-2/ Sat, 26 Nov 2022 13:08:07 +0000 https://www.lendernews.com/nov-26-thoughts-inspiring-los-from-an-lo-vendor-news-agency-deals-conferences-nothing-good-happens-after-9pm-2/ It is important for originators and vendors to know trends in the industry, their clients, and with whom they’re competing. Despite the slowing pace of growth in the third quarter, the number of single-family build-to-rent starts over the past four quarters has increased 42% compared with the prior four quarters. While consumers desired more single-family residential space due to lifestyle changes during the pandemic, home sizes for single-family starts are declining as the housing market cools and affordability concerns worsen. The annual income required to afford the typical monthly payment has increased 45.6% on a year-over-year basis, largely due to rising mortgage rates. Not only that, but as Len T. points out, real excess disposable income is gone! But how about this for opportunity: there’s almost $30 trillion in home equity out there. Go help some owners tap into theirs.

Thoughts from a top LO: don’t just sit there during this hangover

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Hunter Marckwardt, EVP with CrossCountry Mortgage, LLC, writes, “This market is a challenging one. Have we heard that before? New news? Tired of hearing about it? There are aspects of this market that are not fun but there is also massive opportunity for growth. For many of us, the last couple of years have been crazy. My personal production tripled. I was just that good. To triple my business in a 2-year period of time is nothing short of massive kudos to me for being that good at my job. Had nothing to do with market, conditions…just me being amazing.

“So clearly-I’m joking. This market feels like a hangover. The refinance boom was the equivalent of eating our young. We’re all left looking at each other with a “what now” look in our faces. It’s almost funny…. almost.

“I’ve been having bigger conversations with some of my great business partners. We’re strategizing on data/content/messaging. Taking facts about numbers, comparisons to year over year, quarter over quarter, rate comparisons vs. new loan amounts, impact of values dropping and what that looks like in a payment. Understanding the needs of our clients, the questions that need to be asked to identify their ‘why’ for buying now.

“I was having a conversation last week with one of my favorite partners about numbers she’d like to see, and in what format, then she jokingly said, ‘Hunter, help me, help you, help me.’ As soon as she said it, I thought, ‘GENIUS! Help me, help you, help me?” What does this mean? It means for me to think bigger, to ask better questions to provide more intel, to help her provide content to her clients, to help her be better. She was asking me to keep asking questions that drill down into details that help her uncover numbers and info to help her clients make decisions based on more data than more emotions.

“Our team is now having more fun working to be better. Dialing in our P & L, dialing in our new CRM, simplifying our messaging for our clients, easy to use calculators for our clients (2/1 buy down costs etc…). There will be two camps in six months from now, those that got better and those that wish they had. I fully recognize what got me the last two years of business is not going to get me the next two years of business (I know ‘got’ isn’t a real word but I like it, MOM).

“Right now requires being better. This market requires all of us to be better. My favorite quote of the year is from Dave Savage, saying, ‘Hunter, lenders have never been this out of shape,’ and I agree. Question is, what are we all doing to get back in shape? Me having bigger conversations w/ business partners who are pros and plan to be here two years out and beyond, holding me accountable to execute on being better, is helping me get back in shape. I don’t take it as a criticism, I take it as a wakeup call ‘help me, help you, help me’ is my business partner saying, ‘Be better for me.’” Thank you, Hunter.

Thoughts on life at a conference

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Sure, conferences have quieted down. (The next big event I attend will be the MBA’s Independent Mortgage Banker conference in San Diego.)

A while back, the founder and CEO of Lodestar Jim Paolino, wrote me, saying, “I appreciate that you list upcoming events and conferences. I think it is very necessary, however, for the industry to believe, as I do, that these conferences need to be more inclusive.

“As a millennial who founded LodeStar in 2013 when I was 26 years old, industry conferences have been both an uphill battle and one of the most reliable ways for me to build my business. Early on, an older mortgage guy bemoaned to me, ‘I remember when we used to have strippers at these things.’ However, I have made countless friends and connections with folks I would not have if I did not attend, ultimately benefiting LodeStar.

“At this point, I have adopted a ‘nothing good happens after 9PM’ approach to conferences and bow out after I have gone to my meetings. As a vendor, there are only a few conferences I feel are worthwhile to be an exhibitor.

“I find myself nervous to send younger female employees alone to conferences due to the personal experiences they have come back with regarding inappropriate behavior. Headlines like conference fist fights between mortgage professionals below that definitely do not reflect well on the industry.”

“I constantly wonder what the role of conferences will be moving forward now that the pandemic has wound down (in the United States). I recognize this is all not an easy problem to solve but I do feel it is vital to the long-term health of this industry, one that I have grown up in and care deeply about. A more welcoming conference environment for all types of people is better for everyone: companies, vendors and especially the conference organizers. I do hope there is more thought put into how to create value in conferences for all.”

Vendor and third-party morsels

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There are some great programming and software out there from vendors. Meanwhile, owners of vendors and third-party providers are taking a look at middle layers of management, or ridding themselves of unproductive sales people. That aside, let’s take a random look at who’s doing what.

docutech Compliance and Document News posted information on multiple topics. Recent posts include docutech’s configuration update to FNMA Homestyle Renovation Loan Rider’s. FNMA and FHLMC continued use of the FHA notes and mortgages. Maryland’s Department of Housing and Community Development update to the Important Notice Regarding Housing Counseling form.

Build-A-Broker™: The Journey is a Mortgage News Network production, airing every 2nd and 4th Wednesday, in collaboration with Originator Connect Network, and sponsored by Rocket Pro TPO. In this episode, listen to Fernando Escaffi, MBA, The Mortgage Broker And Conversion Master, Co-Founder and COO at PrimeLine Capital, Inc. Fernando talks about his tech stack, the power of working with a partner that compliments your skills and abilities, and some scripting ideas from the top-performing scripts that Fernando’s originators use to hold their place as LendingTree’s highest converting lender.

MeridianLink recently completed its acquisition of OpenClose, a fintech company specializing in residential mortgage software solutions allowing MeridianLink customers to offer a competitive, best-in-class digital lending experience that makes the process less costly and more efficient for consumers. As part of this integration, MeridianLink will continue developing both OpenClose’s loan origination (LenderAssist) and point-of-sale (ConsumerAssist) software solutions. Additionally, MeridianLink and OpenClose customers will gain access to relevant software products provided by the other organization. View the MeridianLink press release for more information.

Redfin now displays localized, real-time information about the number of area down payment assistance (DPA) programs available on each eligible for-sale listing page in the United States. The new feature is powered by Down Payment Resource, the nation’s leading provider of down payment assistance and affordable lending program data. interested homebuyers can input basic information and immediately receive a tailored list of programs they may qualify for, the amount of assistance potentially available to them, and links to the program pages for more information.

For the first time, FormFree’s Residual Income Knowledge Index, or RIKI™ for short, is available to lenders nationwide. First piloted by Guild Mortgage, RIKI supplements traditional credit scoring (i.e., a FICO score) to give lenders a more complete understanding of a loan applicant’s creditworthiness. Using rule-based algorithms to analyze a consumer’s income and spending and determine how much residual income remains after accounting for mandatory monthly expenses such as rent, utilities and loan payments. Its cash-flow analysis is engineered without “black box” machine learning to ensure RIKI cannot develop unintended prejudices. By giving lenders an alternative way of assessing credit invisibles’ ability to pay, RIKI creates opportunities for lenders to extend lower interest rates and/or fees to consumers with little to no credit history.

Doma announced the launch of its new, digital-first home equity financing offering built for lenders, leveraging its Doma Intelligence platform to accelerate the title search for home equity loans and home equity lines of credit (HELOC). Doma’s proprietary machine intelligence-powered solutions expedite the title and escrow process to lenders offering home equity financing products to help borrowers receive their funds faster, with up to 80% of title decisions delivered in minutes and commitment packages delivered in hours, Doma’s home equity financing solutions offers a range of fully insured and uninsured services to meet lenders’ needs, which include the ALTA® Short Form Loan Policy, ALTA® Junior Loan Policy, Ownership and Encumbrance (O&E) Report, and Legal and Vesting (L&V) Report and includes a dedicated Service Team for Lenders.

CBC Mortgage Agency (CBCMA), a nationally chartered housing finance agency and a leading source of down payment assistance for first-time homebuyers, announced its CRA Note Exchange platform has completed the sale of mortgage notes on behalf of Habitat for Humanity Affiliates in Florida and South Carolina, supplying much needed liquidity to enable them to build more affordable homes. The CRA Note Exchange is a secondary market platform that makes it possible for non-profit homebuilders and other Community Housing Development Organizations (CHDOs) to generate capital by selling their affordable mortgages. CRA Note Exchange enables the sale of Community Reinvestment Act (CRA) eligible loans through an online portal to free up capital for additional affordable home construction.

LodeStar Software Solutions, national provider of closing fee-related compliance tools for mortgage lenders, announced an integration with Stewart (NYSE – STC), a global real estate services company, which includes one of the nation’s largest title underwriting operations. The new integration will allow all users of LodeStar’s closing fee calculator to access the title and settlement fees of any Stewart-related company, including those of independent title agencies issuing Stewart policies. In so doing, users can streamline and accelerate cost estimates and documents mandated by the TILA-RESPA Integrated Disclosure Rule (TRID) such as the Loan Estimate (LE) with guaranteed accuracy.

California issued Senate Bill No. 633, taking effect January 1, 2023, amending requirements for consumer credit contracts particularly those regarding the Notice to Cosigner. View

docutech Compliance News Alert for additional information.

Agency (Freddie & Fannie) deals

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Although things have been somewhat quiet lately, the “deals” done by Freddie Mac, Fannie Mae, and others help determine the rates that borrowers see. These securitizations “test the waters” for demand for mortgages with an implied government backing, especially given how strong F&F’s market share is in residential lending. Let’s play catch up and take a random look at some Fannie deals to see what investors are interested in.

A week or two ago Fannie Mae priced a $392 million Multifamily Social DUS REMIC (FNA 2022-M2S) under its Fannie Mae Guaranteed Multifamily Structures program, marking the eighth Fannie Mae GeMS issuance of 2022. The structuring of an A3 tranche in the M2S offered a more call-protected option for those investors requiring a more predictable maturity window. The M2S issuance aligns with Fannie Mae’s Sustainable Bond Framework, which governs Fannie Mae’s commitment to adhering to international standards in its issuance of green, social, and sustainable bonds. In 2020, Fannie Mae received a second party opinion on its Sustainable Bond Framework from independent third-party Sustainalytics. The framework builds on Fannie Mae’s 32-year history of supporting multifamily affordable housing, 10-year history of multifamily green financing, and its expansion into single-family green MBS issuance in 2020. For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet available on the Fannie Mae GeMS Archive page.

Freddie Mac priced a new $1.2 billion offering of Structured Pass-Through K Certificates (K-133 Certificates), which are backed by underlying collateral consisting of fixed-rate multifamily mortgages with predominantly 10-year terms. Class A-1 ($93.0 million) had a weighted average life of 6.87 years, a spread of S+7 bps, a 1.508 percent coupon, a yield of 1.498 percent, and a $99.9976 price. Class A-2 ($929.6 million) had a weighted average life of 9.84 years, a spread of S+18 bps, a 2.096 percent coupon, a yield of 1.755 percent, and a $102.9985 price. Class A-M was sold via the WI-K133 offering. For more information on Freddie Mac’s When-Issued K-Deal, WI-K133, click here.

 

Freddie Mac priced a new $185 million offering of Multifamily WI K-Deal Certificates, which are initially backed by cash assets that will be used to purchase the A-M class of a to-be-issued reference K-Deal. Once the reference K-Deal class is issued and purchased by the WI trust, the WI Certificates will be indirectly backed by a pool of fixed-rate multifamily mortgages with predominantly 10-year terms. The company issued approximately $185 million in WI Certificates (Series WI-K136). Class A-M ($185.0 million) had a weighted average life of 10.29 years, a spread of S+28 bps, a 1.858 percent coupon, a yield of 1.852 percent, and a $99.9954 price.

 

An elderly woman hurried to the pharmacy to get medication, got back to her car, and found that she had locked her keys inside. She found an old rusty coat hanger left on the ground. She looked at it and said, “I don’t know how to use this.” She bowed her head and asked God to send her some help.

Within 5 minutes a beat-up old motorcycle pulled up, driven by a bearded man who was wearing an old biker skull rag. He got off of his cycle and asked if he could help. She said, “Yes, my daughter is sick, and I’ve locked my keys in my car. I must get home. Please, can you use this hanger to unlock my car?”

He said, “Sure.” He walked over to the car, and in less than a minute, the car door was open.

She hugged the man and through tears, softly said, “Thank you, God, for sending me such a very nice man.”

The biker heard her little prayer and replied, “Lady, I am not a nice man. I just got out of prison yesterday; I was in prison for car theft.”

The woman hugged the man again, sobbing, “Oh, thank you, God! You even sent me a professional.”

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Source: Rob Chrisman

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Nov. 25: MLO jobs; credit reporting’s “massive” cost increase; non-Agency/non-QM news; current management concerns https://www.lendernews.com/nov-25-mlo-jobs-credit-reportings-massive-cost-increase-non-agency-non-qm-news-current-management-concerns-2/ Fri, 25 Nov 2022 13:17:00 +0000 https://www.lendernews.com/nov-25-mlo-jobs-credit-reportings-massive-cost-increase-non-agency-non-qm-news-current-management-concerns-2/ Putting out this daily commentary is like being in the army: I usually do more by 6AM than many people do during much of the day. The commentary is a little early this morning since I received an email on Thanksgiving from IsabelleDuvall@opale-voyages.fr that my U.S. Government social security account password had expired and for me to send her my social security number and a new password. I wanted to take care of sending Isabelle the information first thing this morning, and am sure that everything will be just fine. It’s not fine in the credit world any more than the tale above is. The industry was given an early Christmas “present” by Fair Isaac and the three credit bureaus, although this is not “official”: the vast majority of the mortgage lending industry will most likely incur a massive mortgage credit report price increase for 2023. With per-loan costs over $11,000 already, this sure won’t help. For better news, today’s podcast is available here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology, and other services in the mortgage industry and in banking.

Originator jobs

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Candidates can always post their resumes for free at www.LenderNews.com and employers can few them for several months for a nominal fee of $75.

Mountain West Financial is continuing its expansion forward by deepening its roots in Northern California. Click here to hear from longtime branch manager, Tisha Torres, who recently returned to the MWF Family. “I’m excited to welcome our Rio Linda branch back to MWF. This decision is an affirmation of our commitment to Branch Managers and Originators. We are focused on attracting elite professionals and helping originators do more volume,” said Ed Adams, SVP Production at Mountain West Financial, Inc. Interested in learning more about the MWF Family, please reach out to Ed Adams.

In the Northwest, Banner Bank is searching for Builder Direct Mortgage Loan Officers as well as Mortgage Loan Officers. These are true portfolio lending opportunities with local decision making and direct to Fannie and Freddie loans with retained servicing to assist in client retention and marketing opportunities. Additional highlighted products cover CRA lending with private label no payment down payment assistance to help assist all borrowers with the right opportunity. The right fit for an established team or the individual looking to grow their business and take the next step in their career. Please send resume to Aaron Miller.

There are advantages in being an originator for a national bank, and NBH is looking for growth-oriented originators in its footprint states which include CO, MO, KS, TX, UT, NM, ID, and WY. Any loan originators interested in a career with NBH, please send me a confidential resume for forwarding.

“Ross Mortgage Company is committed to giving our loan officers every possible chance to succeed in today’s market. We have worked to forge local relationships to give our LOs access to extremely competitive ARM rates. These rates combined with access to a robust affinity partnership network has allowed Ross Mortgage Company loan officers to stay productive. If you are a loan officer frustrated with your current rates, lack of inbound leads, or promises that have fallen flat as the market shifted, reach out to VP of Sales, Kevin Coleman for a confidential conversation.”

Equity Resources is a private (family) owned mortgage banker that has continued to expand even in a challenging environment. We are very excited about our future and adding talented Loan Officers to our team! If you are a mortgage banker or broker and you have concerns about the viability of your current company, we should talk. We are an agency direct lender that is currently licensed in 19 states with a strong presence along the east coast and mid-west. We are proudly celebrating our 30th anniversary next year and positioned for continued growth. We are committed to the residential lending market and have launched over 10 new lending programs in 2022. For confidential inquiries to join our award- winning team, please contact Tom Piecenski, Executive Vice President of Sales and Development at 614.327.5353 or via email.”

Warning: credit costs will escalate

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The cost of credit is going up. Lenders nationwide are trying for cost savings wins or success in negotiating vendor contracts, including those related to credit. In the credit world, can lenders save money by analyzing the number of pulls per file, or reminding staff about hard versus soft pulls, or dealing with duplicate logins? But the big news is out there:

“The National Consumer Reporting Association (NCRA) is aware and can confirm that the vast majority of the mortgage lending industry will most likely incur a massive mortgage credit report price increase for 2023.

“NCRA understands that the end users of the tri-merge mortgage credit report (the mortgage lenders) have been grouped into three pricing tiers by Fair Isaac (FICO) with a wholesale price increase of less than 10% for the top tier of approximately 46 lenders, about 200% for approximately six lenders in the middle tier, and more than 400% for all other mortgage lenders in the nation. This is a paradigm shift in the pricing structure for credit scores and is being dictated to the mortgage credit reporting industry from all three national credit bureaus and/or FICO.

“NCRA is not aware of the full origin of this change as it has not been disclosed to us by either FICO or the national credit bureaus. It will be up to each mortgage credit reporting company to determine how to implement this change with its customers based on its individual business plans.

 

“NCRA feels the need to address this issue due to questions raised by the mortgage lending community the media who are beginning to be made aware of a major pricing change coming for the new year. The industry as a whole is looking for more details, which are complicated by the contractual limitations that prevent NCRA members from disclosing the reason for this price increase. Unfortunately, we can only confirm the limited information above and urge the source/sources of this dramatic pricing change to be more transparent with the reasons requiring this statement.”

Non-Agency and non-QM and non-conforming product soundbites

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NewRez added temporary rate buydown options for non-QM borrowers. But that isn’t the only news out there as small and large IMBs look for non-Agency investors or find them in their pricing engines. (On the wholesale side, you can always look at www.mortgageelements.com and enter the state and program.)

Wells Fargo Funding Newsflash C22-026nc provides details of upcoming policy additions to non-conforming loans effective December 5th. The addition of the Loan Estimate (LE) and Closing Disclosure (CD) to the minimum documentation required for a Non-Conforming Loan to be considered delivered (received). Market classification and LTV/CLTV restrictions on non-Conforming.

In today’s ever changing mortgage market, lenders of all sizes are continuing to evolve and offer different programs to help a buyer’s ability to afford their new home. With the purchase market as competitive as it is, the BankingBridge 3-2-1 Buydown program offers relief to a prospective home buyer. There are many scenarios in which a mortgage lender may offer this program, but the most typical reasons are the seller of the home wants to incentivize the potential sale of their home, or the buyer expects to increase their incoming in the next few years, allowing them to save money for home remodeling, and renovations.

Widen your market reach with self-employed borrowers. Loan Stream Mortgage is offering a new program, Non-QM 1-Year Self-Employed program. Only One Year of Self-Employment required, up to 80% LTV purchase, Refinance and Cash Out available.

Loan Stream Mortgage is now offering pre-locks on Non-QM programs. NanQ/Non-QM Pre-Locks up to 45 days. Non-QM Pre-Locks must be Submitted to Underwriting within 10 calendar days, or the Pre-Lock will be canceled. Non-QM Pre-Locks will be available until December 31, 2022. Contact Loan Stream for additional details.

PRMG posted Product Update 22-66 regarding Alternative AUS Solution. Information provided includes appraisal date requirements, and declining market LTV/CLTV/HCLTV.

Angel Oak Mortgage Solutions updated guidelines adding benefits and ways to help more borrowers to qualify for a mortgage. Angel Oak increased LTVs and lowered credit scores Non-QM programs. Also, DSCR is now allowed down to 0.80.

Citi Correspondent posted updates to its credit policy regarding Non-Agency Minimum Loan Amounts, Gift Funds – Source of Funds & Verification Options, and Restricted Stock. For details, view Citi Correspondent Lending Bulletin 2022-14.

Management topics to keep the ship afloat

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What are capital markets and top management looking at as we head into the end of 2022 and enter 2023? How deep should personnel cuts and salary reductions be to try to keep up with revenue declines. Weighing RIFs versus furloughs, and whether or not to pay out severance.

Secondary gains and margin compression continue to be a battle, as do hedging concerns and using the appropriate coupon to hedge. Anyone got a good ARM buyer, or 0-point options for second homes or investment properties? Or strategies in finding local banks or credit unions to partner with and buy loans? How about creating products by partnering with insurance companies? A national down payment assistance program? Trying to get back to having 101 or 102 pricing on the rate sheet? How to know non-Agency investors will be around next month, and is their pricing in non-QM pricing engines? What are the S&D options out there, and are there any new strategies to fix broken loans with rising rates? There are repurchase issues and pushing back against agencies or aggregators.

Having warehouse, investor, and Agency conversations nearly constantly regarding income and balance sheet changes, as well as having a plan in place to “stop the bleeding.”

Lenders, especially independent mortgage bankers (IMBs) continue to talk about, but do little about, adjusting LO compensation. Hourly wages for loan officers are a topic, and whether to have outside loan officers and the issues with agreements and documenting them. Owners are keeping an eye on plans for handling future EPOs both from an investor perspective and going back to individual LOs, and watching to see if the quality of files is deteriorating.

Another topic is whether or not lenders are having much success with cost savings wins or success in negotiating vendor contracts. In the credit world, can lenders save money by analyzing the number of pulls per file, or reminding staff about hard versus soft pulls, or dealing with duplicate logins.

Capital markets: quiet on a shortened trading day

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The FOMC (Federal Open Market Committee, the “action arm” of the Federal Reserve) released the minutes from its November meeting on Wednesday, which indicated the Fed will begin slowing its pace of rate hikes even as policymakers have yet to see meaningful signs of inflation pressures abating. Most officials are in favor of slowing the pace of rate hikes, though the debate now surrounds a higher terminal fed funds rate range. Investors were looking for clues that the Fed is ready to pivot to a less hawkish monetary policy, and expectations are now that we will get a 50-basis point hike in December and then another 50 sometime in 2023.

“A substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate,” according to records from the Nov. 1-2 gathering. “A slower pace in these circumstances would better allow the Committee to assess progress toward its goals of maximum employment and price stability.”

 

After yesterday’s break for Thanksgiving festivities, markets are back open today. However, there is an early 2PM ET, 11AM PT, SIFMA recommended close for the bond market. The economic calendar is empty. We begin the day with Agency MBS prices unchanged from a few days ago and the 10-year unchanged from Wednesday afternoon yielding 3.71 percent.

It’s the Friday after Thanksgiving, and you have the time… or watch and skip ahead… A fascinating video from Brecksville, Ohio, where dispatchers from the Chagin Valley Dispatch Center received 911 calls concerning a possible bank robbery in Brecksville. In the 911 call in the video, the call was made by an off-duty Broadview Heights officer who noticed the situation and immediately dialed.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Source: Rob Chrisman

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Nov. 23: MLO jobs; due diligence, compliance, automation, broker communication tools; conforming conventional changes https://www.lendernews.com/nov-23-mlo-jobs-due-diligence-compliance-automation-broker-communication-tools-conforming-conventional-changes-2/ Wed, 23 Nov 2022 13:38:30 +0000 https://www.lendernews.com/nov-23-mlo-jobs-due-diligence-compliance-automation-broker-communication-tools-conforming-conventional-changes-2/ Let me save you a web search tomorrow: 1-800-butterball. A web search turned up a misconception: It appears that robber Willie Horton, when he was asked why he robbed banks, never said, “That’s where the money is.” But banks are where the money is, and it is certainly catchy. You don’t think someone is making money off your money sitting in that bank? Another web search shows that the 1-year CD national average is 0.43 percent. The current 1-year risk-free Treasury bill is yielding 4.75 percent. How can you get around that spread where the bank earns 4.75 percent for a year but pays you less than .5 percent? Tip of the day: Go to https://www.treasurydirect.gov/ and see the yields of what you can buy directly from the government and the minimums required. I don’t recall anyone predicting 1-year rates would be near or at 5 percent by year end (or per loan costs would be over $11,000 per loan). Still, there’s a lot of planning going on for 2023 and a good portion of that is based on mortgage rates. I am reminded of this maxim from Lao Tzu: If you are depressed, you are living in the past. If you are anxious, you are living in the future. If you are at peace, you are living in the present. (Today’s podcast is available here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology, and other services in the mortgage industry and in banking. Today’s episode features an interview with Attorney Robert Maddox on how the mortgage industry learned from the 2008 financial crisis and some reasons it is better positioned in the current environment.)

Jobs

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PrimeLending is flexing our attitude of gratitude. In today’s challenging market, it’s more important than ever to recognize the reasons we have for being thankful. We’re so appreciative for the strength and stability that comes from being a part of a diversified, well-funded financial services company like Hilltop Holdings with $16.6 billion in total assets as of 9/30/22. We’re also grateful for our stellar production team whose passion to serve customers never wavers. Their dedication, experience and professionalism have allowed us to celebrate a 97% customer satisfaction rating and 4.9 stars nationally on Google once again. Speaking of stars, we’re so thankful for our corporate support and operations teams who flawlessly execute their roles, helping to create a small company feel with big company expertise… You’re never on an island when you’re a part of #teamprimelending. Contact Nic Hartke or click here to learn more.”

Shamrock Home Loans has grown its sales force and production capability by over 35%… Just in the last 3 months! Recognized in 2022 by National Mortgage News as the #2 Best Mortgage Company to Work For, Shamrock has shown itself a company sales professionals want to join, and want to stay. Shamrock CEO, Dean Harrington believes business is ultimately about talent acquisition and retention. Adding industry veteran Kurt Noyce as Chief Growth Officer this summer has followed with new Regional Managers in New York, Massachusetts, Rhode Island, North Carolina, and Florida. Combining the strength and stability of a 30+ year company, with the ideas and energy of those wanting to make their impact on building something special, has Shamrock growing, when so many lenders are contracting. To learn more about the company’s passion to #Serve Sales, and its vision to Grow the Next Generation of Leaders, email Kurt Noyce.

Broker and lender services, products, and software

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Do you want to make your brokers happy? Do you want them to love working with you? Upping your TPO Experience game is just the thing you need to keep your brokers coming back. With Velma Connector, your brokers will be looking to work with you every time. Connector automates the communication process using your LOS data to keep your brokers in the know, so they’re never surprised, lost, or confused. Happy and well communicated with brokers bring in more business, which is very important in this volatile market. Money, time, and confusion saved. What’s not to love! Book a demo today to see why brokers love lenders who use Velma Connector! (P.S. don’t forget to ask how you can get your first month free!)

Automation Milestone Achieved – One Hundred One Thousand Mortgage Transactions Processed! Zoral’s automation solutions are abolishing antiquated fulfilment workflows and replacing them with positive ROI technology. Zoral’s Processing & Underwriting Automation eliminates risk, analyzes, and calculates income of all types and produces a comprehensive detail of missing/inconsistent information or needed documentation. For the past 18 years, Zoral has operated one of the largest intelligent automation labs in the world. Whether you close 500 loans a month or 5000, leveraging Zoral’s intelligent automation should be the next step towards immediately reducing your loan origination costs.  Contact Zoral to schedule a quick call to learn more.

ActiveComply, a leader in social media monitoring and website archival for the financial industry, recently announced that it has been selected by LinkedIn to join the ranks of its exclusive compliance partners. This partnership allows organizations in the highly regulated financial sector to leverage ActiveComply’s trusted OCR technology and machine learning to keep their LinkedIn sales interactions compliant. Explore ActiveComply’s wealth of compliance resources, learn more about their no-headache compliance solutions for IMBs, banks, credit unions, and other lenders. Request a free demo with real-time social media data from your company today!

To all my readers in charge of Thanksgiving dinner this year, a friendly reminder that there’s a special service you can call with questions about cooking turkeys. The Butterball Hotline isn’t just a fictional number used in The West Wing; it’s a real number staffed by experts. Sales Boomerang and Mortgage Coach’s next MasterClass X series webinar is also staffed by experts ready to answer questions about heating up your pipelines. On November 30 at 1 pm ET, join Alex Kutsishin, Dave Savage and NEO Home Loans’ Josh Mettle, Katrinka Condie and Jessica Uphoff for winning strategies helping lenders retain and recruit top producers, drive value, improve conversion and drive more purchase volume. Don’t let bad advice lead you astray. Register today and learn from the experts.

Shift your QC and due diligence from costs to values. QC and due diligence don’t have to burden your lending business with costly overhead and slow, inconsistent results. Maxwell Diligence’s comprehensive range of QC and due diligence services offer competitive pricing, robust reporting, and customer service dedicated to delivering on SLAs. Leveraging a 100% onshore team with an average of 15 years’ industry experience, Maxwell Diligence alleviates the need for costly internal staff while retaining high-quality results. Its technology-enabled platform reliably delivers trusted outcomes on competitive timelines, saving your business money and reducing risk regardless of market conditions and regulatory environments. Plus, Maxwell’s client-dedicated customer service ensures transparency and support throughout the process. To learn how Maxwell Diligence can save you money while driving reliable results, click here to schedule a call with our team. 

Conventional conforming changes never stop

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The Federal Housing Finance Agency (FHFA) issued its annual report on single-family guarantee fees charged by Fannie Mae and Freddie Mac (the Enterprises). Guarantee fees are intended to cover the credit risk as well as administrative and operational costs that the Enterprises incur when they acquire single-family loans from lenders. In particular, the report provides an analysis of product type, risk class, and lender delivery volume which provides a comparison to the prior year.

According to a new survey from Freddie Mac, the attitudes of Gen Z adults (ages 18-25) are largely positive when it comes to the idea of homeownership, though they are increasingly leery of the obstacles they may face. One in three Gen Z adults (34%) say homeownership at any point seems out of reach financially, which rises slightly to 35% of Black respondents and more to 50% of Hispanic respondents. When this survey was last fielded in 2019, 27% of Gen Z adults said homeownership is out of reach financially.

Fannie Mae launched new social disclosures, the Social Criteria Share (SCS) and the Social Density Score (SDS), for its Single-Family mortgage-backed securities (MBS). Assigned at issuance, for active and inactive MBS pools issued between January 2010 and October 2022. Fannie Mae intends to begin publishing these attributes for new Single-Family MBS issuances on December 2, 2022.The new disclosures are designed to respond to investor feedback and aim to provide single-family MBS investors with insights into socially oriented lending activities while helping to preserve the confidentiality of mortgage consumers’ personal information.

Information on the methodology and disclosures is available on Fannie Mae’s website.

FHFA examined the effects of mortgage interest rates on house price appreciation and the role of payment constraints. The research results have implications for the understanding of monetary policy transmission, systemic risk, and the role of household finances in the macroeconomy. Research details are available in FHFA’s Working Paper 22-04.

According to Freddie Mac’s News Release, December 2nd is the date Freddie Mac intends to publish a one-time historical file reporting Social Index scores for all active and inactive or paid off mortgage-backed securities (MBS) pools formed since January 2010. The Pool-Level Social Index Disclosures is intended to help investors identify pools with greater concentrations of loans that possessed certain social characteristics at the time of pool formation.

Now you can open the door to more opportunities for low – moderate income borrowers and those in underserved communities. Freddie Mac’s Loan Product Advisor® (LPASM) now includes positive cash flow in a borrower’s account transaction data as part of its purchase eligibility assessment. Read full details in Seller/Servicer Guide (Guide) Bulletin 2022-23.

Check out the feedback messages that support this LPA enhancement. Learn more through several free webinars, an introduction video, and job aid developed with your needs in mind.

Freddie Mac’s latest Power of Partnership podcast: Episode “Ensuring Efficiency and Accuracy Through Integrations”, discusses the integrations and automation benefits you can realize in your pricing, committing and accounting activities and the importance of those integrations to support rate sheet and hedging accuracy. Speakers include Amy Creason, director of sales, Secondary Market Advisors (SMAs), Freddie Mac, Chris Anderson, chief administrative officer, MCT, and Paul Yarborough, senior director of client success, MCT.

Pennymac will introduce a new ‘Purchase Special’ LLPA effective for all Best Efforts Commitments taken on or after Friday, November 18th, View PennyMac Announcement 22-73 for details.

Effective for new Best-Efforts locks beginning Monday, November 21stFAMC/Citizens Correspondent National LLPA grid for Agency Cash-Out Refinance transactions was updated to align with the new Cash-Out Refinance adjustments directed by the FHFA and Fannie Mae / Freddie Mac. Additionally, the 0.500 LLPA for Subordinate Financing on the HomePossible product will be removed with this update as well. All respective pricing vendors have been notified of these changes.

Capital markets: steady as she goes

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Ahead of today’s full calendar of key new data, along with minutes from the latest FOMC meeting, we had a little rally in mortgage-backed security (MBS) prices yesterday. This week was always likely to have many market participants absent or leaving early, and thus be slow. Fewer folks at the trading desk can also increase volatility: a “thin” market. The day before Thanksgiving is also traditionally the busiest travel day before the holiday. Despite many being away from their desks today, investors are anxious to find out more on the discussion at the last Fed meeting and how that figures into current market pricing regarding the pace of future rates.

Today’s economic calendar kicked off with mortgage applications from MBA. As the 30-year fixed-rate mortgage fell for the second week in a row to 6.67 percent and is now down almost 50-basis points from the recent peak of 7.16 percent one month ago, mortgage applications increased 2.2 percent from one week earlier. We’ve also received durable goods for October (+1.0 percent, better than expected, +.5 percent ex-transportation) and jobless claims (240k, +18k, 1.551 million continuing). Later this morning brings the S&P Global PMI flashes for November, final November consumer sentiment, new home sales, and Freddie Mac’s latest Primary Mortgage Market Survey. On, and don’t forget those Fed Minutes! We begin the day with Agency MBS prices worse .125 and the 10-year yielding 3.79 after closing yesterday at 3.76 percent.

Some folks, for Thanksgiving, will serve yams with marshmallows on top. Every wonder where those marshmallows come from? Here you go; definitely suitable for the kids.

(No commentary tomorrow, obviously, but back Friday. Happy Thanksgiving!)

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Source: Rob Chrisman

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Nov. 22: MLO jobs; PPE, CRM, DPA, pre-approval, subservicing products; RMF exits reverse; Carrington’s response to CFPB https://www.lendernews.com/nov-22-mlo-jobs-ppe-crm-dpa-pre-approval-subservicing-products-rmf-exits-reverse-carringtons-response-to-cfpb-2/ Tue, 22 Nov 2022 13:10:33 +0000 https://www.lendernews.com/nov-22-mlo-jobs-ppe-crm-dpa-pre-approval-subservicing-products-rmf-exits-reverse-carringtons-response-to-cfpb-2/ When was the last time that you did something for the first time? (Warning: tissues may be needed.) The best use of technology is to improve quality of life. Watch people’s beautiful first expressions of hearing sounds for the first time. (This came from an email from Steve Wozniak – yes, that one, who wrote, “Why do you think we started Apple. Steve Jobs and myself wanted to make life the same for the disabled and normal people. We wanted blind people to be like sighted people. To see how much we succeeded just look at any sidewalk and see all the people walking blindly while looking at their smart phones.”) Here’s another first time. Yesterday we learned that the Federal Housing Administration (FHA) published the Acceptance of Private Flood Insurance for FHA-Insured Mortgages final rule (Docket No. FR-6084-F-02) in the Federal Register. With today’s publication, FHA will now accept private flood insurance policies where the borrower chooses to obtain a private policy instead of flood insurance available through the National Flood Insurance Program. This change applies to all FHA-insured Single Family Title II mortgages, including Home Equity Conversion Mortgages (HECM), and loans insured under FHA’s Title I programs. (Today’s podcast is available here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology, and other services in the mortgage industry and in banking. Today’s features an interview with NerdWallet’s Holden Lewis on borrower capacity and housing market fundamentals.)

Jobs

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“Are you tired of feeling like a needle in a haystack? At Homestead Funding, we’re large enough to provide our sales team the support and products they need while still being small enough to care. Here, the people who want to help you succeed, and the people who make decisions are one in the same. While other companies have multiple layers of management, we provide direct access to our executive team—and our Loan Originators have their full support. There’s no red tape or run around. The accessibility goes beyond the scope of the building walls. Our goal is to empower our Loan Originators to get their borrowers to the closing table, with the full support of the entire company. To learn more about being a valued part of the Homestead Family, contact Michele Teague today by calling (518)-368-1494.”

“Have you ever wondered how Originators close $100M + per year? The answer is simple; They have a team in place that allows them to originate all day without distractions or getting pulled back into files. One of the Top Originating teams in the nation is looking to provide 1 Originator an extremely unique opportunity. This Originator would plug directly into the team, have their files worked on by 2 processors, 2 underwriters and 1 operations manager with a combined 70 years of experience. Sounds pretty good right? This Originator will also be personally coached by one of the top producing Originators over the last decade. If you close $20M or more per year and are looking for a breakthrough in your career, contact Anjelica Nixt to forward your note or click here to schedule a confidential conversation.”

Atlanta-based Highland Mortgage is hiring! Highland recent brought on Mickey Schilling, CMB® is its new VP of National Sales. Now in its third year, Fannie Mae-approved Highland Mortgage is well-positioned to expand its footprint nationwide under Mickey’s guidance. Here are Mickey’s top reasons why Highland is the right destination for you.

In the Northwest, Banner Bank is searching for Builder Direct Mortgage Loan Officers as well as Mortgage Loan Officers. These are true portfolio lending opportunities with local decision making and direct to Fannie and Freddie loans with retained servicing to assist in client retention and marketing opportunities. Additional highlighted products cover CRA lending with private label no payment down payment assistance to help assist all borrowers with the right opportunity. The right fit for an established team or the individual looking to grow their business and take the next step in their career. Please send resume to Aaron Miller.

There are advantages in being an originator for a national bank, and NBH is looking for growth-oriented originators in its footprint states which include CO, MO, KS, TX, UT, NM, ID, and WY. Any loan originators interested in a career with NBH, please send me a confidential resume for forwarding.

Broker and lender services, products, and software

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Originators who use subservicers are in search of one thing: peace of mind, knowing their customers and portfolio of loans are in good hands. This requires full transparency and immediate access to real-time and on-demand data. That’s exactly what TMS Subservicing provides through their award-winning servicing portal SIME (Servicing Intelligence Made Easy). SIME’s cutting-edge technology provides originators a user friendly, fully transparent, 360-degree view of your portfolio, including instant access to recorded calls, 130+ standard and customizable reports, real-time KPI performance, and more. It’s just one of the many ways TMS continues to grow happiness with its clients. Here’s what John Gillespie, Servicing Manager at VIP Mortgage had to say about SIME, “SIME is great. It’s pretty much everything you could ask for in a servicing system, all in one place. It makes things much easier. It’s the tech and the people behind the tech that make [TMS] a better experience.” Learn more about SIME and TMS Subservicing here.

As loan officers, we’re convinced we have to make ourselves available 24/7, 365 days a year. So it should be no surprise that this holiday weekend is about to come and go for so many of us. Your referral partners will likely ask you for a favor while you’re stuffing the turkey… “Can you update this pre-approval? Can you send me a new pre-qual? The Lewis family is making an offer, and we need four letters because they aren’t sure yet what they’re offering. They’re thinking Conventional, but maybe if they can, they’ll go FHA…” Are you cringing yet? If this is your experience, check out QuickQual by LenderLogix. By allowing Realtors and borrowers to adjust their own pre-approvals, you can focus on actions that drive actual revenue and maybe enjoy the next holiday weekend like you deserve.

What is the first thing that comes to mind when you think of Down Payment Assistance Loans? Is it “oh no not again”? Essex Correspondent Lending has altered the paradigm. We know there are many options out there for loans and lenders but let us throw our hat in the ring and we think you’ll see why we’ve been in business since 1986. There are many benefits to a DPA loan with Essex Correspondent Lending, including: No Underwrite from a Separate Agency Required, Efficient Delivery and Purchase Process, Zero Down Payment Required from the Borrower, No Income Limit Options Available, Flexible Credit Score Requirements, 0% Interest Options Available, and Caring and Attentive Account Executives Ready to Assist you Anytime. Partner with Essex Mortgage Correspondent Lending today. Contact Kimberly Schenck.

Today’s incredible mortgage environment is tough even for journeyman LOs with decades of experience. Two things come to mind when looking for strategies to help LOs today. First, understand home buyers in the context of uncertainty in the market today. Get back to basics of why home ownership still makes sense: pride of ownership, building equity for the future, and a better environment for their family to live and grow. Next, be able to articulate good solid strategies to make home buying more affordable, both down payment strategies and ARMs to lower payments. It’s also important to understand buyer’s bias against ARMs and counter with common sense arguments. In the spirit of Thanksgiving, Usherpa, the number one-ranked mortgage CRM in customer satisfaction and loyalty, is offering informative and educational downloads to any loan officer who could use a hand in this challenging market.

To stay afloat when tides shift is one thing, but to transcend the current is crucial during challenging times. Choosing a modern and proven PPE solution enables lenders to outperform their peers in an economic upturn and a market downturn. Lender Price’s scalable PPE helps lenders identify the lowest possible rates and best loan programs in the market. Time-tested and experienced, Lender Price proudly holds a demonstrated track record of successfully executing mid to large-scale implementations for various types of lenders in the mortgage industry. Having gone through numerous implementation scenarios, Lender Price uniquely positions itself to offer solutions, advice, and recommendations that meet the needs of banks, IMBs, credit unions, and large-scale enterprise lenders. Lender Price is “Democratizing Pricing for All.” From large banks to mortgage brokers and everyone in between, we are committed to listening to our lenders of all sizes and being the technology leader in pricing and capital market solutions. To learn more about Lender Price’s innovative solutions, visit www.lenderprice.com.

Carrington’s response to the CFPB

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Last week the industry learned that, “The Consumer Financial Protection Bureau (CFPB) is taking action against Carrington Mortgage Services for deceptive acts or practices under the Consumer Financial Protection Act in connection with mortgage forbearances. The CFPB found that Carrington failed to implement many protections, provided to borrowers with federally backed mortgage loans who were experiencing financial hardship, during the COVID-19 public health emergency.”

Bruce Rose, CEO and Founder of The Carrington Companies, parent company of Carrington, had some thoughts. “In trying to help borrowers affected by the COVID-19 pandemic, Carrington acted in good faith and focused on delivering a benefit to consumers,” said. “I am proud of what our people were able to do for borrowers suffering in the midst of the pandemic. The settlement does not demand additional consumer remediation, which reflects the lack of consumer harm in this matter.”

“The CFPB’s decision to pursue this matter also plainly contradicts its own repeated assurances to the industry and lawmakers that it would credit those servicers that ‘put struggling families first,’ and that it would take a ‘flexible’ supervisory approach that considered ‘the circumstances that entities face(d) as a result of the COVID-19 pandemic and entities’ good faith efforts to comply with their statutory and regulatory obligations.

“The CFPB’s allegations and enforcement actions reflect neither. Rather, this matter is an aggressive and unfortunate example of regulatory overreach. Although Carrington disagrees with the CFPB’s position, it cooperated fully throughout the investigation, and is pleased to move forward. Agreeing to the settlement reflects Carrington’s desire to focus its attention on continuing to support its customers through product offerings and services that accommodate a wide range of consumers, and that support families across the United States through all phases of their homeownership journey.

“After spending the past two years cooperating with the CFPB – which was recently declared to have an unconstitutional funding mechanism by the U.S. Court of Appeals for the Fifth Circuit – and educating them on the actions taken to assist borrowers in the midst of a pandemic, they have failed to understand our business and the rapidly changing environment. The CFPB’s use of extortion tactics as its primary tool for regulation does nothing to help the industry or consumers. Ultimately, it is consumers who eventually pay more because of the additional regulatory costs imposed on lending and servicing. The Carrington Companies’ commitment to its customers remains steadfast and unwavering; and we will continue to provide assistance to consumers in need, including those still impacted by the pandemic.”

Another exit

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Liquidity, in this case the ability to have access to money to fund loans as well as sell your products in the secondary markets, is critical for any lender.

Reverse Mortgage Funding, LLC (RMF) is reportedly pausing all origination activities after losing its warehouse funding lines, multiple sources told Reverse Mortgage Daily. “On Monday, November 21, Reverse Mortgage Funding and its affiliates made the difficult but necessary decision to pause mortgage origination activities,” the spokesperson wrote in an email. “RMF, like many of its peers, has been challenged by unprecedented interest rate hikes and overall macroeconomic volatility.”

Capital markets

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Thanksgiving week is always slow, with many traders and other staff away from their desks. Tomorrow will be the big day of the week with durable goods, new home sales, consumer sentiment, and the FOMC minutes. Markets will be closed on Thursday and the bond market will close early on Friday. There was little news of note yesterday, though Atlanta Fed President Bostic said that he is ready to slow the pace of rate hikes and that an additional 75 to 100-basis points of tightening would likely be sufficient.

Recently lower-than-expected producer prices were encouraging news for the markets last week as participants look for the Fed to slow the pace of rate hikes at the December FOMC meeting. Consumer and producer inflation data continuing a downward trend may be enough to warrant a 50-basis points hike versus another 75-basis points increase to the fed funds rate. Despite increasing interest rates, consumers turned to credit card spending to support a stronger-than-expected 1.3 percent increase in retail sales during October. Resilient consumer spending has even shifted the Atlanta Fed’s GDP now forecast for the fourth quarter from an initial estimate of +3.1 on October 28 to +4.2 as of November 17. But the market is forecasting a recession toward the second half of 2023 as the current momentum is expected to slow. New single-family construction continues to contract as housing starts and permits are significantly off recent highs. Additionally, the NAHB Housing Market Index has seen 11 consecutive months of decline and is currently at its lowest level since April 2020.

Today’s calendar, like yesterday’s, is heavy on supply and light on data. Treasury will conclude the month-end auctions with $22 billion reopened 2-year FRNs then $35 billion 7-year notes. Economic releases consist of Philly Fed non-manufacturing indexes for November and Richmond Fed manufacturing and services indexes for November. Fed appearances for the week conclude after Cleveland Fed’s Mester, St. Louis’ Bullard, and Kansas City’s George deliver remarks. We begin the day with Agency MBS prices better by .125 and the 10-year yielding 3.80 after closing yesterday at 3.83 percent.

A turkey walks into a bar, the bartender asks, “What are you?”

The turkey replies, “I’m a wild turkey.”

The bartender chuckles and replies, “Hey, we have a drink named after you.”

The wild turkey, incredulous, asks, “You have a drink named Kevin?!”

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

 

Source: Rob Chrisman

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Nov. 21: MLO jobs; M&A candidate wanted; non-Agency, POS, warehouse products; STRATMOR on the business cycle; production costs hit $11k https://www.lendernews.com/nov-21-mlo-jobs-ma-candidate-wanted-non-agency-pos-warehouse-products-stratmor-on-the-business-cycle-production-costs-hit-11k-2/ Mon, 21 Nov 2022 13:34:22 +0000 https://www.lendernews.com/nov-21-mlo-jobs-ma-candidate-wanted-non-agency-pos-warehouse-products-stratmor-on-the-business-cycle-production-costs-hit-11k-2/ Sometimes it’s tough to find good news out there. For independent mortgage bank (IMB) and mortgage subsidiaries of chartered bank lenders, the MBA reports that production costs exceeded $11,000 per loan in the 3rd quarter leading to a net loss of $624 on each loan they originated. (More below.) And the cost of determining a borrower’s credit will be heading significantly higher, according to word on the street. The increases are not coming from credit resellers, such as credit reporting agencies, but rumored instead to be coming from the bureaus and Fair Isaac, customers are encouraged to speak with their credit source for the exact details on tiers, actual percentage increases, and timing to put speculation to rest. Want some good news? We’re a month away from the day with the least amount of sunlight (solstice). Want a free Denny’s breakfast for a year just by wearing this $5.99 T-shirt? In a fantastic marketing feat, there are only 150 of them and they go on sale at midnight on the 24th. How about this for opportunity: there’s almost $30 trillion in home equity out there. Go help some owners tap into theirs. (Today’s podcast is available here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology, and other services in the mortgage industry and in banking. Today’s has an interview with Rice Park’s Nick Smith on a wide range of current capital markets topics from TBA liquidity to what REITs do.)

Jobs; M&A candidates wanted

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“Are you ready to join tons of other satisfied brokers and start working with Towne Mortgage Company? Our 40 years of experience working with Credit Unions, Community Banks, Agricultural Banks, Brokers and Mortgage Bankers means you can expect flexible solutions and reliable service. Work directly with your Underwriter, contact the Business Support Hotline for updates and technical help. As an approved FNMA/FHLMC/GNMA seller/servicer offering full Agency and Renovation product sets you are guaranteed program options and expertise at Towne Mortgage Company. ‘Wow is all I can say, super experience on my VA loan, quick UW, and 1 day on conditions… Thanks Towne Team.’ (Kim M.) Let our years of experience work for you! Get started with Towne Mortgage Company today, call (888) 653-9037or visit us.”

 

Equity Resources is very excited to continue our growth into 2023! We are a privately owned mortgage bank with headquarters in central Ohio and several branch offices throughout our 19-state footprint along the east coast, southeast, and through the Midwest. 2023 will mark our 30th anniversary! Our valued team members, our commitment to our team, our clients, and the communities that we serve will ensure we continue to celebrate anniversary milestones through the years! It is vital to partner with a mortgage company that embraces the growth of Loan Officers, supports their vision, offers one-on-one business planning, and that has the financial strength to not only weather any storm but to thrive in any market through proven business and marketing strategies. This is why we have such enviable tenure with our Loan Officer team: LOs within Equity are celebrating their 7th, 10th, 15th, 20th, etc. anniversaries! To learn more about our LO opportunities, as well as our innovative LEAD program (Loan Officer Education and Development), please contact Tom Piecenski, EVP of Sales and Development (614.327.5353).”

“Lots of talk recently about IMB consolidations and shrinking scale. Volume will be $2 trillion or less in 2023. Capacity will continue to right size to 2023 volume. How will we get there? A combination of failures, consolidations, and a shrinking footprint for every company. Some think 40% of IMBs will have to go away. That seems excessive to me, but no doubt a consolidation is underway. Company owners can stay the course and hope for better times. Or they can de-risk and look for a partner. Hard to say how long this down market will continue, and this is the challenge. Lots of talk this week about the terminal rate going significantly higher than the market is projecting and then staying elevated for a long time. Personally, I’m not in that camp, but this is the big risk for IMBs. Each company situation requires a different solution. If you would be interested in looking at options, please contact James Johnson (707-738-2666).”

Broker and lender services & software

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Shift your QC and due diligence from costs to values. QC and due diligence don’t have to burden your lending business with costly overhead and slow, inconsistent results. Maxwell Diligence’s comprehensive range of QC and due diligence services offer competitive pricing, robust reporting, and customer service dedicated to delivering on SLAs. Leveraging a 100% onshore team with an average of 15 years’ industry experience, Maxwell Diligence alleviates the need for costly internal staff while retaining high-quality results. Its technology-enabled platform reliably delivers trusted outcomes on competitive timelines, saving your business money and reducing risk regardless of market conditions and regulatory environments. Plus, Maxwell’s client-dedicated customer service ensures transparency and support throughout the process. To learn how Maxwell Diligence can save you money while driving reliable results, click here to schedule a call with our team.

Today more than ever, mortgage bankers need partners they can rely on that can provide them with the solutions they need to compete and succeed: Lakeview Correspondent is that partner. The Bayview Non-Agency Product SuiteBank Statement, DSCR, and Prime Jumbo ARM’s programs provide lenders with the products they need to compete and succeed now and into 2023.  Reach out to one of our Regional Business Development professionals today to find out more and set your team up for success!

Mortgage banking made easy! Think about how Expedia helped make travel booking easier. Or how pricing engines helped you find the right investor and best price. Take3Tech has two technologies that will make mortgage banking easy! LoanMaps is based on borrower profile and LoanMAPS POS will tell you the most cost-effective Digital Validation Source (DVS), and whether the DVS might get you D1C! D1C on income/employment can take you from application to clearing conditions straight to schedule to close. TheRuleTool: Think of it like an Expedia for investor guidelines! It organizes Agency, Government, Bond, and Jumbo loan guidelines then displays it all in one spot! If you are looking for speed from application to close and to drastically reduce costs, contact us at www.Take3Tech.comOur technologies are endorsed by MegaStar Financial Loan Officers!

Get actionable insights on any and/or every field in your LOS, in real-time, and see how it compares to a group of lenders who have a similar model, production mix and channels with Richey May’s RM Analyze + Peer View Ops. Because we establish a live connection to your LOS, we can pull in any data field from your LOS to report on. That means if it’s meaningful for you to see it, we can pull those data fields into more meaningful dashboards and create alerts based on your KPIs. The possibilities are endless when it comes to the level of details and granularity, and it’s customized to fit your needs. To learn more about how RM Analyze + Peer View Ops can help your business, contact our experts for a demo today.”

Having the right team assembled is key to operating your business with peace of mind. The same can be said for your external business relationships. That’s why it makes sense to explore what the Fifth Third Bank, National Association team can do for you. They offer a broad range of liquidity, credit, and treasury solutions designed for mortgage bankers, all in one place. With over 150 years in business and $207B in assets, they bring financial strength, expertise and a strong commitment to the mortgage industry to the table. Contact Donnie MartinDavid Ingram or Jeff Bonner to see how they can partner with you and contribute to your success.

STRATMOR on the current business cycle

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Every day around midnight I’m shocked to find out it is only 6PM.” Every year 48 states go through changing their clocks twice a year, with the same result. Have you ever experienced déjà vu, that sensation where you feel as if you have experienced that very moment before? In the just released November issue of STRATMOR Group’s Insights Report, Senior Partner Jim Cameron offers insight into why many lenders are not getting that sense of déjà vu with the current mortgage market down cycle. “This feels different,” is what many are saying, and they are right. According to Cameron, several aspects of this down cycle differentiate it from previous ones, including the speed and severity of the rate increases and the drop in mortgage volume, unit volume decrease (which matters most to operations), margin compression and more. There is some good news, too, and Cameron shares data in charts and graphs that illustrate the ups and downs in our current lending environment. Don’t miss Cameron’s article, “What’s Different About This Downturn?” in the November issue of STRATMOR’s Insights Report.

Production costs per loan: $11,000

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The MBA’s Quarterly Mortgage Bankers Performance Report contains meaningful performance measures and benchmarks on originations and servicing for independent mortgage bankers (IMBs). In the latest Q3 report, IMBs’ average pre-tax net production income per loan reached its lowest level since the inception of MBA’s report in 2008.

Marina Walsh, CMB, MBA’s Vice President of Industry Analysis, notes, “The industry continues to struggle with a perfect storm of lower production volume and revenues and escalating production costs, which for the first time exceed $11,000 per loan. Companies are responding to tough market conditions by reducing excess capacity, including staff. The number of production employees per firm is down 7 percent from the previous quarter and 19 percent from one year ago. However, overall volume has dropped so swiftly that some companies are having difficulties adjusting staffing and other costs to match market conditions.”

Mortgage servicing continues to be the silver lining in the current rate environment. With prepayments and delinquencies low, mortgage servicing has been the difference for many companies between profitable or not. Roughly one in two companies generated a profit in the third quarter; but without mortgage servicing operations, only one in four companies would have been profitable.

The average pre-tax production loss was 20 basis points (bps) in the third quarter of 2022, down from an average net production loss of 5 bps in the second quarter of 2022, and down from a gain of 89 basis points one year ago. Total production revenue (fee income, net secondary marketing income and warehouse spread) decreased to 326 bps in the third quarter, down from 335 bps in the second quarter. On a per-loan basis, production revenues decreased to $10,392 per loan in the third quarter, down from $10,855 per loan in the second quarter.

Net secondary marketing income decreased to 223 bps in the third quarter, down from 243 bps in the second quarter. On a per-loan basis, net secondary marketing income decreased to $7,165 per loan in the third quarter from $7,939 per loan in the second quarter. The average pull-through rate (loan closings to applications) increased to 77 percent in the third quarter, up from 75 percent in the second quarter.

Total loan production expenses (commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations) increased to a study high of $11,016 per loan in the third quarter, up from $10,937 per loan in the second quarter of 2022. Personnel expenses averaged $7,325 per loan in the third quarter. Productivity decreased to 1.5 loans originated per production employee per month in the third quarter from 1.7 loans per production employee per month in the second quarter. (Production employees include sales, fulfillment, and production support functions.)

Servicing net financial income for the third quarter (without annualizing) was at $102 per loan, down from $133 per loan in the second quarter. Servicing operating income, which excludes MSR amortization, gains/loss in the valuation of servicing rights net of hedging gains/losses and gains/losses on the bulk sale of MSRs, was $95 per loan in the third quarter, down from $97 per loan in the second quarter.

Capital markets

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What did we learn last week? Mortgage rates in the U.S. faced the biggest weekly decline in nearly 41 years, providing some relief after a rapid run-up that quickly priced out homebuyers. The average rate for a 30-year fixed mortgage was 6.61 percent, the lowest in almost two months. We also learned that existing home sales fell for the ninth month in a row, according to the National Association of Realtors. Home sales fell 5.9 percent month-over-month to a seasonally-adjusted annual rate of 4.43 million, down 28.4 percent from a year ago. Blame high prices and high mortgage rates, which are negatively affecting affordability.

 

Retail sales increased 1.3 percent in October, above analysts’ expectations for a 0.9 percent increase. Core retail sales increased by 0.7 percent which was also above market consensus. Producer prices increased by 0.2 percent which is the same monthly increase observed in September but it was below expectations for a 0.5 percent increase. Year-over-year prices increased by 8.0 percent, the fourth consecutive month where the annual growth rate decreased from the previous month. Industrial production contracted by 0.1 percent as mining and utilities output fell during the month. Housing starts fell 4.2 percent in October to an annualized rate of 1.425 million but remained above the average rate over the last 10 years of 1.206 million units. The long-run average over the entire data series dating back to 1959 is 1.434 million units. A clear shift in inflation expectations as well as a slowdown in the pace of interest rate increases next month could signal we are near the peak in rates and provide some stability in housing demand.

 

This week ahead is anticipated to see reduced market volume as it is Thanksgiving Day on Thursday followed by an early close on Friday with many participants likely taking the full week off. The economic calendar is full of month-end Treasury supply, including an auction of $42 billion 2-year notes and $43 billion 5-year notes today. As for economic releases, today there is just the October Chicago Fed National Activity Index. Tomorrow brings Philly Fed non-manufacturing, S&P PMI November flashes, and Richmond Fed manufacturing and services indexes, while on Wednesday are durable goods, consumer sentiment, and new home sales. We begin the week with Agency MBS prices nearly unchanged from Friday and the 10-year yielding 3.81 after closing last week at 3.82 percent.

This Thursday don’t fall for the ol’ pregnant turkey prank!

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Source: Rob Chrisman

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Nov. 19: Letters on buydowns, China’s real estate, pricing, and the cost of fraud; Vendor news; Saturday Spotlight: Momentifi (with a pep talk) https://www.lendernews.com/nov-19-letters-on-buydowns-chinas-real-estate-pricing-and-the-cost-of-fraud-vendor-news-saturday-spotlight-momentifi-with-a-pep-talk-2/ Sat, 19 Nov 2022 13:23:58 +0000 https://www.lendernews.com/nov-19-letters-on-buydowns-chinas-real-estate-pricing-and-the-cost-of-fraud-vendor-news-saturday-spotlight-momentifi-with-a-pep-talk-2/ Our industry is driven, in part, by interest rates, which in turn are driven by supply and demand and current economic conditions. Currently the focus is on inflation and the Federal Reserve’s efforts to dampen it. Several statistics come out every month gauging price moves, probably the most well-known is the Consumer Price Index. Let’s “open the kimono” on this statistic. Would you like to be one of 300 “economic assistants” who work for the Bureau of Labor Statistics and visit the same stores, looking at the same items, month after month, secretly? “Del Monte Fruit Cocktail, last month $1.69 for a 12 ounce can, now $1.74…” They visit liquor stores, body shops, dental offices, doggy day cares… 28,000 locales in seventy-five urban areas, checking current prices and weights. The CPI tracks changes in how much urban dwellers pay for a representative market basket of goods and services and is based on the work of these individuals. Organic catsup, French bread, gelatin, going to a movie… the list goes on and on. The CPI itself is used for many things, not just to drive the Federal Reserve’s decision making and the bond markets, including government funding for school lunches, the income of 80 million people by helping determine Social Security benefits, military pensions, and food stamp allowances. Now, back to the mortgage world!

 

Saturday Spotlight: Momentifi

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In 3-5 sentences, describe your company (when was it founded and why, what it does, where, recent growth and plans for near-term future growth). 

We are a sales training and content marketing platform focused on helping loan officers and mortgage companies grow. In 2005 we launched our Certified Mortgage Planning Specialist (CMPS®) course, which remains the first and most widely recognized mortgage planning designation in the industry, with over 10,000 graduates. In 2015 we launched a CRM technology, which we exited earlier this year. In 2022, we launched some training courses and a bilingual marketing platform to help loan officers and real estate agents expand homeownership opportunities for diverse homebuyers from historically underserved communities. Our focus for 2023 and beyond is to expand our training courses and bi-lingual marketing platform to help our loan officer and mortgage company clients grow their business even during challenging economic circumstances.

What does your company do to help elevate your employees’ growth? Describe any mentoring programs, outside classes or training, in-house training. How does the company help people develop? 

We provide a very flexible work environment where team members can pick their own hours and vacation days (coordinated among each other). This fosters an “I’ve got your back” attitude among the team. As a sales training company, we also provide in-house training to our team, focused on helping each team member find more meaning in their work.

Tell us how your company maintains its culture in a work-from-home environment, or how you plan on bringing employees back into the office, if applicable. 

We have team get-togethers, including team workdays and team lunches. We’re planning a team trip soon to celebrate the launch of our new bi-lingual marketing technology platform, which was an all-hands-on-deck project over the past year!

 

Things you are most proud of that don’t have to do with sales. 

We’re most proud of helping our team members and clients find more meaning in their work. We created a podcast on the topic called, The StorySeller. Season 2 kicks off the first week in December. Our CEO, Gibran Nicholas, also wrote a book called, The StorySeller Adventures: How to Grow an Epic Business and Find More Meaning in Your Work. The book is scheduled to be published in January 2023.

Fun fact about Momentifi (and a few words of encouragement). 

Our founder and CEO, Gibran Nicholas, started in the mortgage business 22 years ago at the age of 20. He became a millionaire at twenty-five and lost everything two years later, only to regain it all, plus invaluable life lessons, over the next decade. He shares many of those lessons in his soon-to-be-published book and podcast. Here’s Gibran’s best advice for loan officers and mortgage companies who may be struggling in this challenging environment:

 

It’s not about the market. It’s not about your competition. It’s not about difficult circumstances. It’s about your response to the market, your competition, and your difficult circumstances. Self-Doubt and the negative thoughts in your head are the biggest villains you’ll ever encounter in life and business. If you can control your mind, you can control anything. The best advice I have is to imagine Self-Doubt as an actual character, as the nasty villain in the story of your Life and Business. Then imagine yourself as a Great Warrior going to battle against him. You CANNOT let him win. So, don’t. As any Great Warrior, get your inspiration from thinking about the people you’re fighting for. Perhaps your family or your clients. Most importantly, though, fight for yourself. Think about the child version of yourself. Love that person. Protect that person. Fight for that person. Be your own champion.

 

But wait, there’s more! During difficult times, there’s always a temptation to ask ourselves questions like, “Why is this happening to me? What’s the meaning of Life? What’s the meaning of suffering?” One of my favorite books of all time is Man’s Search for Meaning, by Viktor Frankl. In that book, he suggests that we imagine ourselves sitting across the table from a character called Life. She turns to us, looks us in the eye, and asks us this question: “Hey friend: What’s the meaning of your life right now?” In other words, “What are you doing right now to create unique value for yourself and for the people around you?”

 

That’s a powerful question! So, this holiday season, I’d challenge you to answer it: “What is the meaning of your business right now at this moment? What unique value are you creating for clients, employees, or strategic partners that they can’t get elsewhere?” That, my friends, is the key to winning in any business environment. You are the Creator of Unique Value. Your mission, should you choose to accept it, is to sell your clients and strategic partners a story about the unique value that you can provide to them right now!

 

Visit us or reach out directly to Gibran Nicholas to learn how you and your team can get daily expert marketing content in English and Spanish to attract clients, stand from your competition and grow your business in 2023!

(For more information on having your firm’s extracurricular activities, employee growth, and your charitable side featured, contact Chrisman LLC’s Anjelica Nixt.)

Pricing & competition: Dog eat dog

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From Washington, Jeff writes, “I feel we have (temporarily) returned to ‘race to the bottom’ pricing. My manager at the institution I work for agrees that we are posting competitive rates at zero origination. The ‘real’ market is significantly lower. When our customers/consumers shop (and I tell them I welcome it) pencils get very sharp. Pricing exceptions exceeding 100 bps in price are common. The sad part is when buyer agrees and locks, informs the competitors and then one comes back with an even lower price. Integrity is tested and the interfering party shows true colors.

 

“I had this happen yesterday. The customer stayed with me and my company and told the low-baller ‘no’. They honored their agreement with me and my company after 1) discussing the fair competition and ‘why’ didn’t the low-ball bidder give their best bid initially and 2) asking what I would do. To that I answered after I receive quotes and commit, my word is my bond and my integrity matters. Lastly, I kindly offered ‘I would respect their decision’ regardless. The customer agreed and was actually annoyed by the low-ball bidder and did not want to do business with them. It could have gone either way. This time integrity won.”

Thoughts on buydowns given economic forecasts

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I contend that no one has a crystal ball and can consistently and accurately predict when and what interest rates will do. Still, from out in California Jay Voorhees, with JVM Lending, writes, “My team and our agents understand the strong likelihood of a sharp reduction in rates by Q2 of next year, based on the comments of several respectable parties. For example, in his podcast this week Jeff Snider (Eurodollar University podcast), pointed out how the interest rate inversion curves today are eerily similar to what we saw at the same time in 2007, signaling a very weak economic outlook. And, in a recent Wealthion podcast, with Stephanie Pomboy and Jim Rickards, the host reminded us that inflation fell from 5% to 0% in 2008 very quickly. This is why the above commentators all expect inflation to subside and rates to fall.

“Anyway, if rates fall sharply, and I think they will, borrowers will soon be able to refinance. And if they have a permanent buydown (like Alicia recommended in last Saturday’s commentary), all of those points will be wasted. But, if they have a temporary buydown, most of the points the seller paid will be still be in an escrow account and able to be used to pay down the remaining principle balance. Further, temporary buydowns offer far more rate and payment relief in the near term.”

Jay wrapped up with, “So, if I was certain rates were going to remain high, I would agree with Alicia. But I am not certain and strongly believe rates will fall, given the accurate track records of the above commentators, so I think temporary buydowns are the way to go.”

China & real estate: may you live in interesting times

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Capital markets vet Brent Nyitray writes, “The Chinese government instituted a 16 point plan to shore up the real estate market. The government is hoping for a soft landing, however a country that has entire cities built on spec probably won’t have one. The situation in China affects the U.S. in a couple of ways. First, I would bet that some of the weakness in West Coast markets like San Francisco and Seattle is due to Chinese liquidating assets. Remember, in a crisis, you sell what you can, not necessarily what you want. Real estate accounts for about a third of the Chinese economy, which is bubble territory. In the U.S., real estate accounts for about 16%.

“The Chinese crisis will also impact global demand as the main effect of a burst real estate bubble is a collapse in domestic demand. This will reduce demand for all sorts of commodities which will help quell global inflation. This should also cause a flight to quality in China which means they will be buying Treasuries. This means lower interest rates in the U.S.”

The cost of fraud

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In the STRATMOR Group we take regular courses in phishing, fraud, and cyber-attacks. Ask any company that has been the victim of an attack and it is a terrible thing.

LexisNexis Risk Solutions released today the results of its annual True Cost of Fraud Study: Financial Services and Lending report (here). “The costs for credit and mortgage lending firms remain above pre-pandemic levels, although they are trending downward after substantial increases observed at the start of the pandemic. According to U.S. loan companies, each $1 in fraud losses costs $4.08. Canadian lending firms find that each $1 in fraud losses actually costs $3.74.

“Lack of identity verification is a top challenge that contributes to fraud across the customer journey. Canadian lending firms and U.S. mortgage lenders saw the biggest increase in identity-related fraud across account creation, with a 9% rise and 11% rise respectively since 2020.

“Fraudsters targeting mobile channels, increased bot attacks, various scams, and the rapid adoption of buy now, pay later (BNPL) are causing concern for financial services and lending firms.”

Vendor and third-party provider morsels

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Secure Insight is pleased to announce the launch of WINN, a wire only verification tool that offers particular protection to warehouse banks. By accessing our verified trust account data compiled over ten years resulting in tens of thousands of stored accounts in all 50 states utilized by more than 70,000 closing agents, it offers immediate verification reporting. No need to wait for verification, no requirement to send us any documents or information, just enter the name of the wire recipient or the account information and in seconds a report will be returned confirming the accuracy of your data. According to the most recent industry data we have 92% of the closing agent market already compiled and monitored, with the ability to verify new account information the same business day. Reports are offered at a price around 50 cents per report (even lower in large volume). Reports are available through API integration or a secure web-based access portal. Elements of fraud including wire fraud were present in almost 50% of all loans closed in 3d Q 2022 according to the National Mortgage News. For more information contact Amanda Padd to schedule an intro call and demo or to obtain a sample report.

Ascend Companies Inc; a small portfolio of mortgage industry affiliates that includes the Credit Reporting Agencies Partners Credit and Advantage Credit, as well as the AMC, ARC, now offers origination clients significant cost savings by bundling borrower and property solutions throughout the Western US, supported by robust SLAs on both sides of the offering. “To state the obvious, offering clients cost savings solutions in this market is imperative. The marriage of commonly owned AMC and CRA service business lines enables us to offer clients material savings solutions when it comes to their origination price tags.  We will never compromise on either the quality of our solutions, or teams. Our businesses have been around for a combined century, and our leadership teams have been finding solutions in different markets for decades. Things aren’t easy right now for anyone, and while we know they will get better, we want to help our clients navigate the storm.”

Insellerate’s innovative new solution AgentConnect helps retail loan officers close more loans. AgentConnect takes Co-Branded marketing to a new level by automatically delivering dynamic open house flyers, property websites, and landing pages instantly through MLS data in real-time, which is auto-generated and compliantly displayed, including loan officer’s specific loan and pricing options. AgentConnect fosters dynamic relationships with partners through innovative campaigns that drive results while delivering full transparency through the buyer/borrower journey. Work with partners like never before by taking the guesswork out of manually creating flyers, struggling to find content and images, and worrying about including compliance requirements. Learn more http://bit.ly/3gaofwz

Staircase, the company building an integrated, digital infrastructure to accelerate tech-enabled mortgages, has launched a new application programming interface (API) that enables lenders and servicers to embed automated underwriting technology into any application and sync to their point of sale (POS) and loan origination systems (LOS).  saving time and money.

The new API from Staircase provides Innovators with same-day GSE integrations. For just $1 lenders can integrate their systems of record with Fannie Mae and Freddie Mac and achieve greater loan decisioning capabilities. For more information about the GSE API, email hello@Staircase.co.

 

Tavant, a Silicon Valley-based provider of industry-leading digital lending solutions, announced its partnership with American Financial Resources, Inc. (AFR), a national mortgage lender, operating in the wholesale, correspondent, and retail origination channels, to enhance the lender’s digital mortgage experience, end-to-end. Leveraging Tavant’s Touchless Lending™, AFR’s correspondent lenders, mortgage brokers, loan originators, and consumers will now be able to automate the traditionally cumbersome lending process, providing a more streamlined and seamless experience for all stakeholders.

I used to be able to do cartwheels. Now I tip over putting on my underwear.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Source: Rob Chrisman

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Nov. 18: MLO jobs; TPO, HELOC workflow, processing, PPE, API tools; $5.25 million Carrington’s CFPB fine https://www.lendernews.com/nov-18-mlo-jobs-tpo-heloc-workflow-processing-ppe-api-tools-5-25-million-carringtons-cfpb-fine-2/ Fri, 18 Nov 2022 13:27:53 +0000 https://www.lendernews.com/nov-18-mlo-jobs-tpo-heloc-workflow-processing-ppe-api-tools-5-25-million-carringtons-cfpb-fine-2/ Few base their company or family’s savings on the inherent risk in a prediction. But… On a big scale, and we’ve been hearing forecasts of a recession for a year now, JPMorgan Chase’s economists opine that the economy will slip into a mild recession in 2023 as a result of the Federal Reserve’s monetary tightening. Of course, recessions usually mean lower rates (one of the topics in today’s Rich and Rob show with MGIC). “We also expect slowing aggregate demand eventually leading to labor market weakness that builds on itself, and we anticipate that we could lose over a million jobs by the middle of ’24.” Smaller mortgage banks may not be able to wait it out. STRATMOR’s M&A practice is “en fuego” with large and small deals. Mortgage servicing rights continue to hit the open market in varying sizes and shapes. Informally chatting with a couple servicing specialists indicates that the smaller pools are mostly from sellers that thought the market would turn around and are giving in to higher rates whereas the bigger pools of servicing are due to more aggressive agency putbacks. Lenders must have cash to buy back loans if their defense doesn’t work, and the most valuable asset many companies have is their servicing portfolio. (Today’s podcast is available here and this week’s is sponsored by MCT Investor Services, which helps investors scale their seller base, automate the bid process, source whole loan and flow co-issue production, automate AOTs, and analyze performance all in a cost-effective manner.)

Jobs and transitions

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“Earning less income in 2022? We have a solution that you do not want to miss out on!! Prime Choice is looking for experienced partners and/or other industry sales members to join our team as Solar Specialists. Whether as an employee or an independent dealer, the Prime Choice team will be with you every step of the way!! Add more value to homeowners across the country and join the solar evolution today. Since 2007, Prime Choice has been dedicated to serving homeowners. We help homeowners make the switch to solar, whether they want to save money on energy or reduce their carbon footprint. We’re here to provide a better solar experience for our customers, assisting them in connecting to cleaner, more affordable energy. competitive pay and benefits. Sign-up bonuses are available. It’s time to step up to the big leagues. To get started, go here. Questions? Please contact 877-851-7365.”

 

Hallmark Home Mortgage accelerates strategic expansion by adding experienced team of residential mortgage bankers! Hallmark Home Mortgage, a Fort Wayne, Indiana-based independent residential mortgage lender, has completed the acquisition of a well-established team of mortgage bankers. The move will expand its residential lending services to include Colorado, Georgia, Kansas, Louisiana, Missouri, South Carolina, and Texas, representing a strategic milestone for the organization.

 

“I am pleased to welcome this talented team of more than 60 mortgage professionals,” said Deborah Sturges, CEO and Founder at Hallmark Home Mortgage. “Hallmark is now positioned to become one of the nation’s top 100 residential mortgage lenders. This increased production will create new employment opportunities at the corporate headquarters in Fort Wayne.” “This is a tremendous opportunity,” noted Hallmark Home Mortgage EVP/Division Manager Mark Etchison. “The team brings a strong lending and scalable presence in their current markets and shares the same passion as Hallmark for delivering a superior customer experience.”

 

Marc Wadman will continue to direct the newly acquired team as SVP/Regional Manager. “Hallmark is known for its continued strong leadership and team support within the mortgage industry,” Wadman added. “It became evident after discussions with the Hallmark executive leadership team that this was the ideal fit for our associates and clients.”

 

With rising inflation and mortgage rates climbing, workforce capacity has had to be adjusted for many mortgage lenders. Hallmark, however, continues to successfully execute against its strategic growth plan by focusing on its Realtors®, referral partners and past clients. To learn more about Hallmark Home Mortgage please visit Hallmark. If you’re looking to take your origination career to the next level visit contact Deborah Sturges, Mark Etchison or Marc Wadman.

Cenlar FSB, loan subservicer and federally chartered wholesale bank, announced that Nayda McKain has been promoted to VP, Human Resources Business Partner and will lead a team of HR professionals and work closely with executive leadership to advise on human capital functions and continue to deliver on Cenlar’s business strategy.

Broker and lender services & software

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Open banking is gaining traction across the industry and there are three good reasons for this. First, it ensures a better borrower experience by dramatically simplifying the end-to-end process. Everything required to underwrite and approve loans is seamlessly connected via APIs in the cloud, ensuring borrowers aren’t shuttled from one system to another in service to a checklist. Second, open banking makes it significantly easier to cross-sell other products. APIs make it easy to connect to other core banking platforms which facilitates the sharing of marketing information with internal sales departments. Third, the wealth of information open banking provides can be used for better marketing. This is important to acquire new low-cost leads and reduce fallout. Fiserv’s Mortgage Director enables open banking via its robust API ecosystem. If you want to improve your borrowers experience, cross-sell more effectively and gain better access to data, email to learn more.

To stay afloat when tides shift is one thing, but to transcend the current is crucial during challenging times. Choosing a modern and proven PPE solution enables lenders to outperform their peers in an economic upturn and a market downturn. Lender Price’s scalable PPE helps lenders identify the lowest possible rates and best loan programs in the market. Time-tested and experienced, Lender Price proudly holds a demonstrated track record of successfully executing mid to large-scale implementations for various types of lenders in the mortgage industry. Having gone through numerous implementation scenarios, Lender Price uniquely positions itself to offer solutions, advice, and recommendations that meet the needs of banks, IMBs, credit unions, and large-scale enterprise lenders. Lender Price is “Democratizing pricing for all.” From large banks to mortgage brokers and everyone in between, we are committed to listening to our lenders of all sizes and being the technology leader in pricing and capital market solutions. To learn more about Lender Price’s innovative solutions, www.lenderprice.com.

What’s the secret to staying afloat during a downturn? Or keeping up during increased demand? “Virtual in-house processing” services with wemlo® are designed to help your mortgage business thrive in fluctuating market conditions. With wemlo’s “virtual in-house processing”, you get all the benefits that come with having an in-house processor but none of the managerial headache or long-term financial responsibilities that come with. As a scalable alternative, wemlo removes the headache of hiring an in-house processor or (even more daunting) doing the processing yourself. “Virtual in-house processing” can alleviate stress when business ramps up, but it can also give you time to capture new business during slower seasons. Available in 46 states plus Washington D.C., wemlo’s processing team is trained to work with dozens of loan products and lendersSchedule your 1:1 call to learn more about our third-party loan processing services.

If your financial institution wants to succeed in a compressing market, you need to focus on two things: driving more value from your agent–originator relationships and developing a crystal-clear understanding of your customers’ short-term needs and long-term goals. It’s not enough to simply pull together data from across your tech stack. You need a tool that can analyze and monitor your data, identify opportunities for targeted engagement, and provide your teams with the context they need to have more impactful interactions. In our latest webinar, Total Expert’s Chief Lending Officer, Dan Catinella, sat down with Prosperity Home Mortgage LLC’s Brand Ambassador, Jelaire Grillo, to discuss how Total Expert Customer Intelligence can get more loans into the hands of your loan officers and drive deal flow by surfacing borrower intent. Watch the webinar on-demand.

Revvin, the leading low-code/no-code digital lending platform, has released a set of HELOC-specific workflows that make it easier for lenders to attract Home Equity Line of Credit (HELOC) applicants and gather the required information for delivery to the lender’s LOS. The pre-built workflows can be deployed in a day or two and, like all Revvin workflows, can be customized to the lender’s specific requirements. “In the current market, homeowners can no longer afford to take equity out of their homes by refinancing, so demand for HELOCs is ramping up,” said CEO Valentin Saportas. “After several lenders approached us for pre-built HELOC workflows, we created the offering we’re rolling out to all lenders today. Revvin has always offered lenders the capability to create their own custom workflows, but speed is of the essence too.” Ready to rev up your HELOCs? Visit here to learn more or contact us.

TPO products for correspondents & brokers

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“Are you a broker looking to expand your reach with top-notch product offerings? Look no further than Newrez Wholesale. With Newrez’s newly launched SmartSeries temporary buydown loans, you’ll have a full suite of products at your fingertips to offer your clients. Our Smart Series consists of uniquely developed Non-QM solutions that ensure that homebuyers with unique financing needs have access to mortgage solutions that meet their specific needs. We are now offering 3/2/1, 2/1, and 1/0 buydowns on our SmartEdge and SmartSelf products. You won’t want to miss out on this opportunity! Check out our recent webinar on Smart Series Temporary Buydowns. Watch now or contact BrigadeSupport@newrez.com to get approved with us today if you aren’t already.”

During this season of gratitude and giving, U.S. Bank is excited to support music education via a guitar donation to Bradley Academy, An Arts Integrated School in Murfreesboro, Tennessee. We thank our clients and partners for playing a part in this effort by helping to build 10 guitars during the MBA Annual in Nashville and joining us in bringing the gift of music to students and classrooms. Through partnership, we can achieve great things together. With today’s complex and evolving market conditions U.S. Bank remains a trusted advisor in Correspondent and Housing Finance Agency lending. We’ll help you navigate the current mortgage lending landscape and offer solutions to grow your business and support your borrowers. At U.S. Bank we believe in the power of partnership. Contact us to learn more about the benefits of partnering with U.S. Bank.

The CFPB acts

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The CFPB is roughly ten years old and has gone through a few cycles of “shooting first and asking questions later” versus embracing industry input on best practices that help consumers and lenders alike.

This grabbed the industry’s attention yesterday. “The Consumer Financial Protection Bureau (CFPB) is taking action against Carrington Mortgage Services for deceptive acts or practices under the Consumer Financial Protection Act in connection with mortgage forbearances. The CFPB found that Carrington failed to implement many protections, provided to borrowers with federally backed mortgage loans who were experiencing financial hardship, during the COVID-19 public health emergency.

“The CFPB found that Carrington misled certain homeowners who had sought a forbearance under the CARES Act (which, among other things, provides forbearances of up to 180 days upon request and credit reporting protections) into paying improper late fees, deceived consumers about forbearance and repayment options, and inaccurately reported the forbearance status of borrowers to the big three credit reporting companies: Equifax, Experian, and TransUnion. The CFPB is ordering Carrington to repay any late fees not already refunded, repair its faulty business practices, and pay a $5.25 million penalty that will be deposited into the CFPB’s victims relief fund.

“Carrington Mortgage unlawfully withheld legally mandated pandemic protections, wrongly imposed fees, and reported false information to credit reporting companies,” said CFPB Director Rohit Chopra. “Homeowners were misled and denied key protections at a time when they were in most need of help.”

Carrington Mortgage Services is a non-bank mortgage servicer headquartered in Anaheim, California. Carrington operates in all 50 states and services a large number of federally backed mortgage loans, which are made or guaranteed by federal agencies or government-sponsored entities (GSEs). As of September 2020, Carrington serviced nearly half a million federally backed mortgage loans: more than 65% were Federal Housing Administration loans, nearly 20% were U.S. Department of Agriculture loans, slightly more than 10% were Veterans Benefits Administration loans, and about 5% were loans backed by GSEs.

Read the enforcement link above for full details. The announcement includes wrongly charged late fees, deceiving certain borrowers, providing false information about pandemic protections, botching homeowners’ credit reports, inaccurately furnishing reports on the delinquency of certain homeowners in forbearance, and failing to promptly notify the big three credit reporting companies about the errors.

“The order requires Carrington to provide redress to consumers (Carrington must conduct an audit to ensure any improperly charged late fees have been refunded to consumers, and if not, to refund them), repair its faulty business practices (Carrington must assess customer service staffing and provide training relating to applicable CARES Act and agency and GSE guidelines and establish policies and procedures to prevent the issues from recurring, and pay $5.25 million in fines (Carrington must pay a $5.25 million penalty to the CFPB, which will be deposited into the CFPB’s victims relief fund.

Capital markets: the Fed is still driving expectations

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Unfortunately for borrowers and LOs waiting to lock, rates shot up yesterday thanks to Fed President Bullard supporting continued rate raises. He gave a speech which suggested that a “sufficiently restrictive” fed funds rate would need to be somewhere between 5 percent and 7 percent and noted further risks to the economy. Some traders joked that based on the current situation the fed funds rate should already be at least 5 percent. The stock and bond rally of the past week had been driven by hopes that the Fed is set to pivot toward looser monetary policy, but this speech and other remarks from earlier this week have poured some cold water on that sentiment.

We also learned yesterday in the housing starts and building permits report that the average loan size fell to $400,616, representing declining interest in higher-priced homes and lower home price growth in general. The increases in mortgage rates this year means some potential homebuyers can no longer afford to buy the house they ordered a year ago. This leads people to lose their deposits, even if the builder ends up selling the property to a different borrower at a higher price. Separately, this week’s Freddie Mac Primary Mortgage Market Survey (which no longer publishes fees/points or hybrid ARM rates) saw fixed mortgage rates tumble along with Treasuries yields. For the week ending November 17, the 30- and 15-year fixed rates plunged 47-basis points and 40-basis points, respectively, to 6.61 percent and 5.98 percent.

Today’s data is on the lighter side with just existing home sales and leading indicators, neither released at the “important” 5:30 AM PT/8:30 AM ET time slot. One Fed speaker is scheduled, Boston Fed President Collins. We begin the day with Agency MBS prices little changed from Thursday evening and the 10-year yielding 3.79 after closing yesterday at 3.78 percent.

(Rated PG: Sexual situation.)

A boy is invited to Thanksgiving dinner at his girlfriend’s parent’s house so that they can meet him.

They’ve been together a while but haven’t had sex yet.

His girlfriend tells him that after he meets her parents they can “get intimate”. So in preparation, he decides to get some condoms at the local drugstore.

As this will be his first time, he doesn’t know anything about condoms and so he asks the pharmacist what he should buy.

The pharmacist explains all about the differences between the brands and after a long chat the boy decides on a large box of “ribbed for her pleasure”.

The time comes for the Thanksgiving dinner and the young couple are seated at the dinner table with the girl’s parents.

The girl is surprised to see the boy has his head bowed down apparently deep in prayer.

She whispers to him, “I didn’t know you were so religious!”

He whispers back, “I didn’t know your father was a pharmacist.”

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Source: Rob Chrisman

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Nov. 16: MLO jobs; tech, QC, foreclosure, POS, jumbo products; USDA, FHA, HUD news; STRATMOR on better LO communication https://www.lendernews.com/nov-16-mlo-jobs-tech-qc-foreclosure-pos-jumbo-products-usda-fha-hud-news-stratmor-on-better-lo-communication-2/ Wed, 16 Nov 2022 13:37:57 +0000 https://www.lendernews.com/nov-16-mlo-jobs-tech-qc-foreclosure-pos-jumbo-products-usda-fha-hud-news-stratmor-on-better-lo-communication-2/ This morning I head to Kansas City to spend some time with the MBAKC. KC is a mere 500 miles from Oak Park, Illinois, east of Chicago and childhood home of Ernest Hemmingway. (Although Ernest Hemingway never actually used the phrase, “Wide lawns and narrow minds” when describing his childhood neighborhood, it certainly is catchy.) And KC is a hop, skip, and a jump away, which in this case is 800 miles, from Cleveland. Why do I mention this? I know it’s not even Thanksgiving yet, but fans of “The Christmas Story” movie should know that the house (and museum, and grounds) is for sale in Ohio. The inventory of houses for sale has increased in many parts of the nation, of great interest to those studying industry trends. Along those lines, not only do lenders have to compete with other lenders, and institutions snaring houses to turn into rentals, they have to contend with all cash buyers. But sage originators know that where there are homes without mortgages (Florida leads the nation in mortgage-free homes; Southern California is the lowest) there is opportunity! And while I am tootling around the nation, did you know that part of California is farther north than the southernmost point of Canada? Isn’t the United States a great place!? (Today’s podcast is available here and this week’s is sponsored by MCT Investor Services, which helps investors scale their seller base, automate the bid process, source whole loan and flow co-issue production, automate AOTs, and analyze performance all in a cost-effective manner. Hear an interview with beefy and Lender Implosion’s co-founders Tim Wagner and Andrew Haberman on mortgage brand marketing and helping displaced mortgage professionals find new employment.)

MLO employment

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“Ross Mortgage Company is committed to giving our loan officers every possible chance to succeed in today’s market. We have worked to forge local relationships to give our LOs access to extremely competitive ARM rates. These rates combined with access to a robust affinity partnership network has allowed Ross Mortgage Company loan officers to stay productive. If you are a loan officer frustrated with your current rates, lack of inbound leads, or promises that have fallen flat as the market shifted, reach out to VP of Sales, Kevin Coleman for a confidential conversation.”

Yee-Haw! Academy Mortgage recently returned from its 2022 President’s Club Conference in Nashville, Tennessee, where old friends and new faces were able to connect, celebrate, and recharge. The trip was fueled by live country music, a variety of entertainment, delicious cuisine, and a passion to serve. From backstage tours at the iconic Grand Ole Opry, to a night filled with line-dancing on Broadway, to an intimate performance by the songwriting duo The Warren Brothers, Nashville did not disappoint. In keeping with Academy’s culture of service, the team also spent a day giving back to three Nashville schools (Glencliff High School, Glencliff Elementary, and Wright Middle School) where they rolled up their sleeves to paint, clean, organize, build, and serve in various capacities. Watch this video to see Academy Mortgage’s Nashville experience. Want to join a company that continues to deliver next-level sales conference experiences? Contact EVP of Production Justin Harris.

Broker and lender services, software, and products

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What’s your plan if foreclosure actions continue to increase, inflation persists, MSR values wane, or interest rates continue to rise? Any or all of these economic influences will provoke higher delinquency rates and negatively impact servicing margins. Adding to this stress, servicing cash flows will struggle under the loss of record-high origination volume and fruitful MSR values. Position your organization to help borrowers avoid foreclosure by driving meaningful relief to your borrowers and your bottom line. Our recent blog, “What’s Your Plan for Foreclosure Prevention?” looks at how to approach foreclosure prevention with modern automation while preparing for this next phase of servicing challenges. Deliver timely, personalized relief through real-time, seamless servicing with proven technology designed to make a difference today. CLARIFIRE® is truly BRIGHTER AUTOMATION®.

Northpointe Bank Correspondent Lending’s AUS Jumbo program provides financing above standard conforming limits and leverages automated approval and documentation solutions to help close your loans faster. The AUS Jumbo program allows for loan amounts between $400,000 and $3,000,000, loan-to-value ratio up to 80 percent, maximum debt-to-income ratio of 49.99 percent, purchase and rate/term refinances, and is eligible for 1-2 unit primary residences, 1-4 unit second homes, and 1-4 unit investment properties. Restricted stock units are allowed for qualifying income and approved Northpointe Bank clients have access to non-delegated, prior approval, and delegated underwriting options. Third-party origination is allowed and the program is eligible in all 50 states and Washington DC.  Northpointe Bank provides tailored solutions to maximize your profitability and help grow your business. View program details for more information or email us.

“WILSON!!” is probably the most quoted line from “Castaway.” The 2000 film was nothing but fiction, but tomorrow marks the 20th anniversary of the fascinating plight of real-life castaway Jose Salvador Alvarenga. Jose ultimately survived his harrowing 438-day journey alone, but lenders don’t have to face tough times solo. That’s why Sales Boomerang and Mortgage Coach are picking the brains of some of the most successful thought leaders in mortgage to uncover insights and resources lenders can use to protect margins and come out of this market stronger than ever. Tomorrow at 2:30 pm ET, join Sales Boomerang and Mortgage Coach’s Alex Kutsishin and Dave Savage, STRATMOR Group’s Sue Woodard and Paramount Residential Mortgage Group, Inc.’s Kevin Peranio as they discuss tips and tricks for not only surviving but thriving in the market during this challenging time. Don’t get stranded at sea; register today for your survival tips.

The key to finding profitability in 2023 is transforming your borrower experience and back-office operations. Maxwell offers innovative technology that centralizes your processes, promotes team productivity, and helps you close more loans with less work. Lenders using Maxwell Point of Sale slash their time-to-close by 13+ days and save an average of 21 BPS in costs per loan. Loan officers using Maxwell POS close 15 percent more loans per month, helping top lenders attract and retain the industry’s best talent. Beyond front-end improvements, Maxwell Processor Edge, a first-of-its-kind processing workflow technology, transforms the loan fulfillment process, accelerating document review, reducing errors, and boosting processor capacity. Set up a call with our team to learn how you can increase your lending profitability and combat margin compression with Maxwell technology.

The era of pandemic-related foreclosure restrictions is almost, but not quite, at an end. Since the COVID-19 pandemic began in early 2020, multiple states and the federal government have provided temporary relief to struggling homeowners by halting foreclosures through emergency legislation and executive orders. While nearly all the pandemic-era foreclosure moratorium protections have expired, a few exceptions remain. Additionally, some provisions could, under certain conditions, reset. Read about the final exceptions still in effect in the latest foreclosure rules update from Covius Compliance.

Control the quality of your loan at any milestone in the loan lifecycle. Candor QC provides detailed loan quality analysis giving you the ability to identify issues that would jeopardize the sale of the loan. Save time, improve investor relations, and put repurchase contingency dollars back into your business. The average repurchase exposure is 12bps but can be reduced to less than 1bps with Candor QC. Solving problems before they happen is a superpower, we have your cape. Setup up a discovery and demo by clicking here.

According to projections from the Mortgage Bankers Association (MBA), mortgage rates have yet to hit their peak and a potential recession lies ahead in 2023. Without any definitive answer, mortgage professionals must strategize for the present while preparing to tackle the future. Forward thinkers are seeing the bright side of a slower housing market and capitalizing on this time to prepare for a future when the housing market is hot again. So, if now is the time to prepare for the industry’s future, the real question becomes: How?

STRATMOR on improving MLO communication

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When it comes to the customer experience, there is one thing that never seems to change: Communication consistently tops the list of problems most cited by mortgage borrowers. According to year-to-date data from STRATMOR Group, nearly one in four borrowers (24 percent) who had a problem in some area of their mortgage journey attributed it to communication issues. Not only was communication the most frequently cited issue, but it was also amongst the most damaging of problems, causing the Net Promoter Score (NPS) to drop to -60, all but negating a chance at a referral and more than likely causing negative word of mouth. What can loan originators do to improve their communications skills? STRATMOR Group’s Customer Experience Director Mike Seminari suggests three steps originators can take now to avoid the pitfalls of poor communication and keep borrowers on the “happy path” for their mortgage loan in his November Customer Experience Tip.

Ginnie, HUD, and the FHA’s mortgage insurance premium in the news

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The Department of Housing and Urban Development (HUD) published its Annual Report to Congress yesterday on the financial status of the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund (MMI Fund). The report announced a strong combined capital ratio of 11.11 percent, well above the statutory minimum of 2.0 percent. The report also outlined that a stress test conducted on the MMI Fund that models economic conditions identical to the Great Recession resulted in a capital ratio of 6.31 percent, signaling the MMI Fund’s ability to withstand significant economic headwinds.

The Mortgage Bankers Association addressed why this matters. “A healthy FHA program is necessary to ensure the broad availability of sustainable mortgage credit to low- and moderate-income households, minority borrowers, first-time homebuyers, and other historically underserved communities. The strength of this year’s annual assessment of the health of the MMI Fund should heavily weigh into the consideration of changes to the level and structure of FHA mortgage insurance premiums (MIPs). On a conference call with industry groups, FHA indicated that it is evaluating changes to the MIP structure with a view to maximize payment relief for borrowers. MBA is preparing a comprehensive summary of FHA’s report and will share it in the coming days.

The MBA also opined on what is next. “Given FHA’s healthy financial position, MBA continues to believe that HUD should make FHA loans more affordable by reducing mortgage insurance premiums (MIP) as soon as budgetary opportunities allow. In a press statement, MBA President and CEO Bob Broeksmit, CMB, stressed that an MIP cut would help offset the impact of higher mortgage rates and improve the purchasing power for many prospective homebuyers. He added, ‘With further slowing in the housing market expected in the months ahead, MBA will work with HUD and FHA leadership to ensure FHA can safely and sustainably perform its countercyclical role in the market, particularly for first-time homebuyers and underserved communities.’”

Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $2.3 trillion in October, boosted by $37 billion of total MBS issuance, leading to $23 billion of net growth.

Read the Press Release for details.

Don’t forget that Ginnie Mae President Alanna McCargo announced policy changes to strengthen the mortgage sector by increasing issuer liquidity, shortening the re-pooling seasoning requirement for reperforming loans from 6 to 3 months and allowing issuers the option to pool re-performing loans into TBA eligible Ginnie Mae II Multi-Issuer Pools. Ginnie Mae will effectuate these policy changes no later than the end of the first quarter of 2023 with a formal policy notice forthcoming.

USDA Rural Development announced the Manufactured Housing Pilot Program has been renewed. The Pilot Program was extended via a Federal Register Notice dated November 2, 2022 and remained largely unchanged from previous issuances on this topic.  As a Pilot Program, the number of participating states remains restricted, with the following states included: Colorado, Iowa, Louisiana, Michigan, Mississippi, Montana, Nevada, New Hampshire, New York, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

PRMG Product Update 22-64 includes multiple updates regarding USDA products and clarification on VA and VA High Balance current properties being converted to second homes or investment properties. In addition, clarification that there is no option for Broker Fees for the wholesale or non-delegated correspondent channel on Symmetry HELOC transactions.

Capital markets

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Securities backed by mortgages, and treasury, prices rallied yesterday after markets received more good news on inflation. The producer price index, which is a wholesale price index one step removed from what consumers see, rose 0.2 percent in October and 8.0 percent year-over-year, flat compared to September and well below expectations. Even with the day’s positive surprise, the core PPI rate remains up 6.7 percent year-over-year. Stripping out food and energy, the index rose 0.2 percent month-over-month and 5.4 percent year-over-year. Like the CPI report, which was also cooler than expected, this signals the Fed is gaining traction on the inflation front. And any continuation of disinflationary trends will be viewed as an indicator that the Fed could slow the pace of its rate hikes soon.

 

Today’s calendar is already under way with mortgage applications from the MBA following last week’s sharp rally in rates after CPI came in softer than expected. Application activity lifted from its lowest level since 1997 to increase 2.7 percent from one week earlier, though included an adjustment for the observance of Veterans Day.

We’ve also received retail sales (+1.3 percent, more than expected, ex-autos +1.3 percent) and import / export prices (-.2 for imports), all for October. Later this morning brings October industrial production and capacity utilization, the NAHB Housing Market Index for November, September business inventories and a Treasury auction of $15 billion 20-year bonds. Three Fed speakers are currently scheduled: New York President Williams, Vice Chair for Supervision Barr, and Governor Waller. We begin the day with Agency MBS prices little changed from Tuesday and the 10-year yielding 3.79 after closing yesterday at 3.80 percent.

People sometimes say that mortgage banking lingo is hard to understand. How about an angry Irishman? I’m putting this video as a link, as I want you to read the comments. They are so hilarious and cleverly written. Check out Arthur Mcdonagh’s video! #TikTok: https://vm.tiktok.com/ZMFfFAPoW/.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Source: Rob Chrisman

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Nov. 15: MLO jobs; independent appraisal, accounting, sales tools; conventional conforming news; PPI drives rates lower; who is Progress Residential? https://www.lendernews.com/nov-15-mlo-jobs-independent-appraisal-accounting-sales-tools-conventional-conforming-news-ppi-drives-rates-lower-who-is-progress-residential-2/ Tue, 15 Nov 2022 13:37:48 +0000 https://www.lendernews.com/nov-15-mlo-jobs-independent-appraisal-accounting-sales-tools-conventional-conforming-news-ppi-drives-rates-lower-who-is-progress-residential-2/ The other day I walked in on Myrtle who was looking at the litter cleaning robot on the screen as if to ask, “What’ll they think of next?” Businesses and arrangements are always coming and going. There’s a new in-house appraisal product, noted below. Who wants to go in with me on starting a 2nd home company with a common-sense name, nothing foreign sounding. “Let’s Split It.” (Tagline: “Your Perfect Vacation Home Awaits.”) Wouldn’t “I Gotta Guy” be a cool name for a business? And useful? Call the number, they hook you up with a plumber who shows up, or a gutter repair person who is competent, or whatever you need. New companies are out there. Ever heard of “Calque”? Me neither until Morgan C. from Highland Mortgage pointed out “The trade-in mortgage.” Freddie Mac announced its newly enhanced mortgage rate survey. Progress Residential, with over 85,000 single-family rental (SFR) homes, is now the largest SFR owner in the U.S., surpassing Invitation Homes. The company has been growing at a rapid rate, accompanied by criticism and protests from tenants and community organizations for unsafe practices and problems. Yes, institutional investors once again buying single family homes. Along these lines, here are some great landlord stats. (Today’s podcast is available here and this week’s is sponsored by MCT Investor Services, which helps investors scale their seller base, automate the bid process, source whole loan and flow co-issue production, automate AOTs, and analyze performance all in a cost-effective manner. Listen to an interview with SimpleNexus’ Andria Lightfoot and Marine Bank & Trust’s Shaun Williams on executing a competitive mortgage strategy in today’s market.)

MLO employment

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Employment

’What do you want? Freedom and flexibility? The ability to take care of your clients in the changing marketplaces? We have that flexibility. We have the tools to provide our customers the best in the market. No matter what.’ (Dustin England, loan originator at Motto Mortgage Elite) The unpredictable market has borrowers demanding speed, flexibility, and trust. Those are exactly what our network of offices offers. When you join your local Motto Mortgage brokerage, you get access to hundreds of loan products, a complete CRM with contact automation, ongoing education with industry experts, and timely marketing pieces for business growth. Motto Mortgage brokerages across the country are hiring talented loan originators: AZ, CA, CO, DC, FL, GA, ID, IL, MA, MI, MO, NC, NJ, NV, OH, OR, PA, SC, TX, UT, VA, WA, WV, WY. Click here for more information on becoming a Motto LO!”

 

“Are you a top producer who knows you’re not in the best situation, but the comfort of being busy the last 2 years has stopped you from making a move? “There are risks and costs to action. But they are far less than the long-range risks of comfortable inaction.” (John F Kennedy) It’s not uncommon for a veteran top producer to fall into the trap of comfortable inaction. We provide our branches access to raw pricing, a low transparent corporate margin, and we encourage our branches to build their own brand/branch the way they want. We provide our originators a plug and play opportunity to join an existing branch, utilize a dedicated operations team and access to some of the best coaching in the industry. It’s time to learn about the platform you’ve earned. Contact Chrisman LLC’s Anjelica Nixt to forward your note and schedule a confidential conversation. You deserve better!

Lender and broker services, software, and products

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LAST CHANCE: Register for free TMC webinar and learn how to recoup revenue and save costs in 2023. Are you ready for next year’s challenges? In this webinar from Maxwell in partnership with TMC, industry veterans, including Maxwell’s Jim Smith, Peggy Rubadue, and Alan Parris, along with Thrive Mortgage VP of Operations Donielle Geiser, combine expertise from past downturns with insight into today’s unique market. Tune in for outside-the-box ways to save costs and bolster revenue. You’ll learn how to leverage overlooked areas of the lending process to boost the bottom line, how to better use technology to drive efficiency and borrower leads, how to grow product and channel offerings sustainably, and how to offload overhead and avoid hire-and-fire cycles. Click here to save your seat at “Planning for 2023: How to Recoup Revenue, Save Costs & Drive Loan Volume in an Uncertain Market,” taking place Thursday, 11/17 at 1:00 p.m. ET.

“But we’ve always done it this way,” said the lender who couldn’t quite hit revenue targets. If your lending processes are stuck in a rut, consider this the nudge you need. Plan to join Optimal Blue’s webinar, “Using Data to Improve Processes and Boost Business,” on Dec. 7 at noon CT. During this complimentary session, John Dumonsau, Mike Vough and Rick Allen will discuss ways you can incorporate primary and secondary data into your processes to compete more effectively. Attendees will learn how: competitive intelligence and analytics can increase revenue; data can help capture every basis point; and easy-to-understand data can inform quick decision-making. Register for the webinar today.

“With the number of borrowers who need Non-QM options on the rise, it is more important than ever to choose the right Non-QM lender. Angel Oak remains fully committed to the Non-QM sector and with over $15B in total origination volume closed since inception, we are the clear leader in this space. And now we’re making it even easier to close loans with us. We will now go to 90% LTV on our Bank Statement and our Platinum Full Doc/Prime Jumbo Fallout program as well as allow for negative DSCR on our Investor Cash Flow program. In addition, we have just lowered rates across the board on all non-QM programs. For more information reach out to your account executive today! Or email to learn more.

LAST CALL! Don’t be one of the 54% of sales professionals that start the new year without a business plan. Join XINNIX at 9 AM PT/NOON ET TOMORROW, November 16 for a free live business planning class – “Your 2023 Roadmap to Success” – packed with valuable tips on how a well-crafted business plan can help you set goals and strategies to drive your bottom line forward in 2023. XINNIX wants to make sure that every sales professional gets the right start to the new year, so invite your friends, colleagues and even any family you may have who work in sales! Reserve your seat today.

Get the accounting support you need to weather any market conditions. These are volatile times in mortgage lending. With rates rising, inflation at a 40-year high, and the market cooling off, many lenders are looking to outsource their accounting needs, and it helps to know where to look. Richey May’s Client Accounting and Advisory Services (CAAS) lets you outsource the knowledge you need: expert, flexible, mortgage industry knowledge that can hit the ground running. Need coverage for a staff member on leave? Training for your team on mortgage-specific items? Help with year-end close or ASC lease implementation? We’ve got you covered. Outsourcing your mortgage accounting with Richey May not only puts your finances in expert hands, but also lightens your administrative load so you can focus on your company vision, growth and making key business decisions. Contact us for details and learn more here.

We are pleased to introduce the next generation of Real Estate Valuation and the Appraisal Process into the market, allowing lenders to bring their valuation workflow in-house. Unlike an AMC, our business model is singular and focuses solely on the success of your lending business and your business alone. We accomplish this by partnering and administering over your own software platform allowing each branch or loan officer the ability to have their own relationships with an appraisal staff for each market area they are lending in state by state. This is 100% compliant with all state regulations. No longer will a lender have to rely on the transactional relationships they’ve established with one or multiple AMCs. Our universal appraisal software platform allows lenders to bring all of their valuation workflow in-house with more control, lower appraisal costs, better service, happier clients, borrowers, and appraisers. Please contact Rob Chrisman to forward your note of interest in hearing more about this.”

Conventional conforming continues to lead the way

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Over the months and years, Freddie and Fannie continue to see the lion’s share of residential loans. What they do, the industry follows, and let’s see what’s going on out there ahead of the “end of next week’s” or “right after Thanksgiving” conforming loan limit announcement.

Freddie Mac reported its third quarter 2022 financial results and filed its Quarterly Report on Form 10-Q with the U.S. Securities and Exchange Commission (SEC). Freddie had $1.3 billion of net income, Making Home Possible for 542,000 Households in Third Quarter 2022, financed 392,000 mortgages, with 56% of eligible loans being affordable to low- to moderate-income families, and enabled 130,000 first-time homebuyers to purchase a home. Financed 150,000 rental units, with 96% of eligible units being affordable to low- to moderate-income families

Fannie Mae also announced earnings for the 3rd quarter: Press release reporting third quarter 2022 financial results. “$2.4 billion net income for the third quarter of 2022, with net worth reaching $58.8 billion as of September 30, 2022. Net income decreased $2.2 billion in the third quarter of 2022 compared with the second quarter of 2022. The largest driver of this decrease was an increase in credit-related expense, primarily driven by lower actual and projected home prices. $134 billion in liquidity provided to the single-family and multifamily mortgage markets in the third quarter of 2022. $92 billion of single-family home purchase acquisitions in the third quarter of 2022, more than 45% were for first-time homebuyers. Acquired approximately 285,000 home purchase loans and 99,000 single-family refinance loans during the third quarter of 2022. Approximately 143,000 units of rental housing financed in the third quarter of 2022, a significant majority of which were affordable to households earning at or below 120% of area median income, providing support for both workforce and affordable housing

Freddie Mac Multifamily’s loan purchase cap for 2023 will be $75 billion as set by FHFA. Freddie Mac has also received from FHFA updated criteria for its “mission-driven” business, which includes loans for affordable housing and underserved market segments.

FHFA defines its mission-driven requirements in Appendix A of its Scorecard. For 2023, 50% of loans purchases must be mission driven. “The loan purchase cap and new mission-driven requirements will shape how we approach the multifamily market in the year ahead,” said Kevin Palmer, head of Multifamily for Freddie Mac. The caps for 2022 and 2021 were $78 billion and $70 billion, respectively.

Freddie Mac is adding new features and advanced capabilities to Loan Selling Advisor®.

Examples include pricing and committing application programming interfaces (APIs).

Updates to credit fees. Early pool disclosure and 2-day settlement cycle for Guarantor.

Check out all the new stuff in Freddie Mac’s news article, Loan Selling Advisor Spices It Up.

Fannie Mae says, “ensure your business continuity plans are in place.” Business continuity procedures are defined as plans to continue operations if adverse conditions occur, such as a storm, a fire, or a crime. With the increasing number of natural disasters occurring, make sure to assess your risk, review your resources, and update your plans as necessary. Check out: Review the risk self-assessment, Share the disaster support flyer with your customers.

All new Fairway Wholesale Lending locks, dated on or after Wednesday, November 9th, will reflect a waiver of the Loan-Level Price Adjustments (LLPAs) on HomeReady and Home Possible® programs. View Fairway Wholesale Lending Client Announcement 2022-11-09 for details. Fairway Wholesale Lending announced its newest offering, seller funded Temporary 1/0 Buydowns, available to be locked for all standard Agency Programs on and after Wednesday, November 9. Learn more at Fairway Wholesale Lending.

FHFA recently announced that Fannie Mae and Freddie Mac will eliminate LLPA’s for certain borrowers and affordable mortgage products on loan deliveries December 1, 2022 and after.

PRMG is immediately removing the LLPA cap on all new locks and new price quotes under the HomeReady and HomePossible programs, effective immediately. PRMG’s Pricing engine has already been updated to reflect the change. Evaluation of the remaining announced updates are underway; notice will be sent once those changes are implemented.

SunWest Mortgage has updated its underwriting guidelines in accordance with the Freddie Mac Bulletin 2022-23 introducing an option where LPA considers the borrower’s cash flow as part of the credit assessment. Requirements to use the enhancement in LPA can be found on the SunWest Mortgage website.

Pennymac updated Conventional LLPAs value to zero, effective for all Best-Efforts Commitments taken on or after Friday, November 11th. Effective for all Best Effort Commitments taken on or after Monday, November 7, 2022, Pennymac will update Conventional LLPAs as shown in Pennymac Announcement 22-71.

FAMC/Citizens Correspondent National Bulletin 2022-19 includes information on Conventional Conforming, VA USDA-RD and MERS Updates.

Effective with new Best Efforts rate locks completed on/after Tuesday, November 1, 2022, Citi updated state geographic adjusters across all conventional loan products.

AmeriHome General Announcement 20221016-CL summarizes previously published changes made during October, additional changes made with this announcement, and recent Agency and regulatory news.

Capital markets: PPI drives rates lower

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Mortgage-backed security prices dropped a little, and Treasury yields trended higher, to open the week despite the market not receiving any data. (Markets often bounce after a big move, so that is no surprise.)

After we learned last week that the Consumer Price Index rose 0.4 percent in October and was up 7.7 year-over-year, the rate hike conversation continued. Fed Governor Waller said that a 50-basis points increase is being considered for the December meeting. Fed Vice Chair Brainard said that the time is coming for the central bank to moderate the size of its interest-rate increases. While she favors downshifting to a half-point move as early as next month, Brainard also said there’s still “additional work to do.” That said, the New York Fed’s latest survey of consumer expectations showed an increase in one-year inflation expectations to 5.9 percent from 5.4 percent while three-year inflation expectations increased to 3.1 percent from 2.9 percent… And the Fed monitors inflation expectations.

The Fed’s moves are having an impact. Growth in consumer credit slowed in the third quarter from an 8.7 percent annualized rate to 6.8 percent as rising interest rates shifted consumer behavior. Also declining was small business optimism for October as businesses are still concerned with inflation and the potential effects on sales over the coming months. Additionally, 90 percent of those surveyed still need help filling open positions as applicants remain scarce or are simply unqualified.

In more good news, the Mortgage Bankers Association reported that the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 3.45 percent of all loans outstanding at the end of the third quarter of 2022, according to its  National Delinquency Survey. (For the purposes of the survey, the MBA asks servicers to report loans in forbearance as delinquent if the payment was not made based on the original terms of the mortgage.) The delinquency rate was down 19 basis points from the second quarter of 2022 and down 143 basis points from one year ago.

Today’s economic calendar has already seen November Empire State manufacturing (+14.5) and the Producer Price Index for October (+.2 percent, +8.0 percent for the year, ex-food & energy +6.7 percent for the year). Headline PPI was expected to increase 0.4 percent month-over-month and 8.2 percent year-over-year, so producer inflation is less than expected. Later this morning brings Redbook same store sales and several Fed speakers (Governor Cook, Philadelphia Fed President Harker, and Vice Chair for Supervision Barr). We begin the day with Agency MBS prices better by .250-.375 and the 10-year yielding 3.77 after closing yesterday at 3.87 percent: have we switched to expectations of more gradual Fed actions?

You know you’ve reached middle age when you’re cautioned to slow down by your doctor, instead of by the police.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Source: Rob Chrisman

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Nov. 14: MLO jobs; TPO, HOA data, outsourcing, due diligence tools; training & webinars this week; NAR’s 2023 forecast https://www.lendernews.com/nov-14-mlo-jobs-tpo-hoa-data-outsourcing-due-diligence-tools-training-webinars-this-week-nars-2023-forecast-2/ Mon, 14 Nov 2022 13:19:00 +0000 https://www.lendernews.com/nov-14-mlo-jobs-tpo-hoa-data-outsourcing-due-diligence-tools-training-webinars-this-week-nars-2023-forecast-2/ For some reason, companies laying off large numbers of people (most recently Better, Freedom, Mr. Cooper) make headlines, whereas shouldn’t the unusual, like companies that aren’t laying off anyone or who are hiring, be more newsworthy? There are indeed companies that are not laying off anyone, and in fact are hiring to take advantage of slow times. There is other good news. Despite inflation, elevated mortgage rates, and slowing sales activity, severely limited housing inventory will prevent large home price drops for most of the country next year according to NAR Chief Economist Lawrence Yun in his 2023 outlook. “For most parts of the country, home prices are holding steady since available inventory is extremely low. Some places are experiencing price gains, while some places, most notably in California, are seeing prices pull back… Housing inventory is about a quarter of what it was in 2008, distressed property sales are almost non-existent, at just 2%, and nowhere near the 30% mark seen during the housing crash. Short sales are almost impossible because of the significant price appreciation of the last two years.” (Today’s podcast is available here and this week’s is sponsored by MCT Investor Services, which helps investors scale their seller base, automate the bid process, source whole loan and flow co-issue production, automate AOTs, and analyze performance all in a cost-effective manner. Listen to an interview with Jason Cave, Deputy Director/Chief Fintech Officer, Division of Conservatorship Oversight and Readiness (DCOR), Federal Housing Finance Agency (FHFA), on how to better channel tech in a way that reduces closing times and costs.)

MLO employment

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Equity Resources is a private (family) owned mortgage banker that has continued to expand even in a challenging environment. We are very excited about our future and adding talented Loan Officers to our team! If you are a mortgage banker or broker and you have concerns about the viability of your current company, we should talk. We are an agency direct lender that is currently licensed in 19 states with a strong presence along the east coast and mid-west. We are proudly celebrating our 30th anniversary next year and positioned for continued growth. We are committed to the residential lending market and have launched over 10 new lending programs in 2022. For confidential inquiries to join our award- winning team, please contact Tom Piecenski, Executive Vice President of Sales and Development at 614.327.5353 or via email.”

Lender and broker services, software, and products

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Those of you who love a challenge will be pleased to hear that Costco has released a ​​60,000-piece jigsaw puzzle that, when complete, is nearly 30 feet long. Of course, few people have 232 square feet of free puzzle space (or the patience, for that matter) to take on such a project. Similarly, it’s challenging for mortgage professionals to juggle attracting new leads, processing loans, AND staying connected with real estate referral prospects simultaneously. Fortunately, SimpleNexus, an nCino company, gives loan officers a hands-free way to engage borrowers earlier, build stronger relationships with real estate agents, and keep them updated on loan progress in one easy-to-share mobile app. Learn how SimpleNexus tools can help you be the perfect fit for real estate agents’ referral business!

“According to the MBA, while purchase applications are down, they did tick up slightly in the first week of November. While originators aren’t jumping for joy, business is still to be had, and getting it right the first time is even more critical. So, if you’re acquiring or selling securitized assets or your HELOC business has taken off, our data-driven process identifies issues before they become problems. Consolidated Analytics (CA) is an agency-approved, Third Party Review Firm (TPR) with comprehensive loan level and portfolio due diligence services that address the most stringent regulator and agency requirements for various asset types, including HELOC asset review. Contact us to see how Consolidated Analytics can help your business keep up with the current market conditions.”

MBA presented its 2023 outlook at this year’s Annual Convention and Expo. The message: buckle up for another challenging year. Marina Walsh, CMB, Vice President of Industry Analysis, stated, “Origination volumes have declined, revenues have dropped, and expenses continue to rise.” But here’s a bit of good news: you can instantly turn your climbing fixed operational costs into controllable variable expenses by outsourcing your processing, underwriting, and closing functions to Computershare Loan Services (CLS). CLS has over twenty years of experience helping clients lower costs and improve productivity on first mortgages and home equity products. Contact Computershare Loan Services today to find out how their expertise and discipline change everything.

Click n’ Close (formerly known as Mid America Mortgage) understands the challenging market independent mortgage bankers (IMBs) are facing. For those exiting the business or in acquisition discussions, Click n’ Close is uniquely positioned to help fund IMBs’ pipelines while they seek alternatives. Through its partnership with Spectrum Mortgage Holdings, it has the capacity to offer warehouse funding for loans being liquidated. Click n’ Close has been purchasing lenders’ pipelines, as well as scratch and dent loans, for more than a decade. If you need assistance, please reach out to our Director of Marketing, Julas Hollie.

With over 27 million housing units impacted by HOAs in the U.S., collecting HOA-related data can be costly and time consuming. And today, more than ever, lenders need to lower operating costs and streamline processes. Black Knight offers a full suite of HOA solutions reduces the time, cost and resources associated with procuring HOA data. From identifying properties in an HOA, to collecting condo data, retrieving CC&Rs, and more, our reliable solutions are cost-effective and provide fast turnaround times. You can select a solution on a standalone basis or combine them, based on your business needs. Plus, you’ll benefit from the efficiencies of working with just one provider. Learn more about our comprehensive HOA solutions and why HOA data is so critical throughout the stages of the mortgage life cycle by downloading our complimentary eBook: The Importance of Homeowners Association Data Across the Mortgage Life Cycle.

TPO products

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Strength, Stability and Consistency are a big part of Citizens Wholesale, the largest bank-owned Wholesale Lender in the country, supporting both Brokers and Non-Delegated Lenders. Our tenured Account Executives, who average more 10 years of service with Citizens, are here to serve as your trusted advisors and help unlock opportunities for growth. Whether you need to lock a fully underwritten TBD, access to specific bank products, or desire to work with a lender who retains 100% of servicing and WILL NOT solicit your borrowers for mortgage products, we are here for you in a complex and ever-changing mortgage landscape. If you’re interested in learning more about partnering with Citizens Wholesale, please contact us today.

Webinars, training, and events this week

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There’s a whole batch of events and training ahead of the Thanksgiving week. Given that things are slow, what a great time to learn! Let’s see who’s doing what.

If 43 seasons of “Survivor” have taught us anything, it’s that we love to see people overcome adversity. Mauro Prosperi has an almost unbelievable tale of surviving alone for 9 days in the world’s largest desert. With loan volume drying up, today’s mortgage industry feels nearly as parched as the Sahara; fortunately, surviving these difficult times isn’t something lenders have to do on their own. On Nov. 17 at 2:30 pm ET, join Sales Boomerang and Mortgage Coach’s Alex Kutsishin and Dave Savage, STRATMOR Group’s Sue Woodard and Paramount Residential Mortgage Group, Inc.’s Kevin Peranio as they discuss tips and tricks for not only surviving but thriving in the market during this challenging time. Don’t get lost in the desert, register today for your survival tips.

Please say hello if, on Thursday, November 17th, you come to the MBA Kansas City’s Membership Luncheon at 11:30AM. Come to the Blue Hills Country Club for a fun, educational session!

In Maryland there’s the MMBBA Breakfast & Learn: IPEN -The Simple Way to Close Loans Electronically and Efficiently on Wednesday, November 16. Cost includes breakfast, Members: $25, Non- Members: $35.

Register for TMBA’s next educational webinar, The New Non-QM: How It Works For You, Thursday, November 17th at 11:30 am. Tim Fisher, Deephaven Mortgage; John Jeanmonod, Angel Oak Mortgage Solutions; Sean McGaughey, Michigan Mutual Inc; and Laura Kay Sheely, Arch Mortgage Insurance, will talk about using Non-QM to grow your business in 2023.

Join the weekly live Mortgage Marketing Influencer stream with Mortgage Experts who share what they are doing to market themselves and their business. Every Wed at 1:30 pm ET at www.MortgageInfluecers.com. Join Ginger Bell, Edumarketing, Carl White, Mortgage Marketing Animals, Frank Garay, Loan Officer Breakfast Club, and Scott Schang, Find My Way Home, each Wednesday at 1:30 pm ET, for a 30 minute Mortgage Influencer live stream call. Each week they share what other mortgage influencers are doing on TikTok, YouTube, social media, and more.

Fannie Mae’s 2022 Boot Camp sessions have wrapped up but you can still get all of this great content on-demand. View a replay of Fannie Mae sessions on topics such as quality control, valuation modernization, fraud, and condo underwriting.

Join senior RCLCO consultants and leadership for this RCLCO free webinar – Update and Outlook for Real Estate Capital Markets on Thursday, November 17th at 12:15pm ET / 9:15am PT. Gregg Logan, Managing Director, and William Maher, Director of Strategy and Research, and Kelly Mangold, Principal will be discussing current market trends and the outlook of the real estate industry for the remainder of this year, with a particular focus on the for-sale residential market. If you can’t make the live event, be sure to register to have the recording of the session emailed to you.

Free webinar at 1PM ET on 11/17: “Planning for 2023: How to Recoup Revenue, Save Costs & Drive Loan Volume in an Uncertain Market.” Now is the time to plan for a strong 2023. In this webinar from Maxwell in partnership with TMC, industry veterans, including Maxwell’s Jim Smith, Peggy Rubadue, and Alan Parris, along with Thrive Mortgage VP of Operations Donielle Geiser, combine expertise from past downturns with insight into today’s unique market. Tune in to uncover outside-the-box ways to save costs and bolster revenue.

Join the MBA of Metropolitan Washington at Congressional Country Club on Tuesday, November 15, 11:30 am – 2 pm. Lunch and Learn about Mortgage Mindset: Selling in a Changing Market with presenter Jason Abell, President, Rewire Coaching.

Registration is now open for FreddieMacCONNECT, November 15-16, Single-Family’s premier annual event that provides you with an opportunity to network with industry leaders and peers while learning more about our latest programs, products and initiatives.

Registration is open for the NALHFA 2022 Fall Educational Conference, November 15-17 in Washington D.C. There’s a brand-new preconference workshop: Local Housing 101: Getting Back to the Basics, intended for those either new to the industry or for those simply interested in learning more on the topics discussed which will help guide the discussions for the rest of the conference.

Join COAMP on November 17th from 2pm-4pm at 7979 E Tufts Ave in Denver, 1st Floor Conference Room for a self-employed income analysis seminar. Not your standard class on how to calculate self-employed tax return, hear from underwriting on the TOP Pitfalls. One class pricing for Member’s is $29, non-Members is $79.

Join your industry colleagues at ALFN FORECLOSURE INTERSECT, November 16-17 at the Marriott Dallas Las Colinas focusing on the intersection of mortgage servicing and the ever-changing foreclosure process. ALFN FORECLOSURE INTERSECT’s event will include detailed sessions on national issues and trends, and additional issues that have a broad impact on the industry.

Movement Mortgage is hosting a “Movement of Change Virtual Discovery Day” on Thursday, November 17th from 3PM-4PM EST. Once registered, you will receive a confirmation email containing a link to the Virtual Discovery Day. Participation is 100 percent anonymous, and only the presenters will be visible: Casey Crawford – CEO & Co-Founder, Mike Brennan – President, Sarah Middleton – Chief Growth Officer, Jason Stenger – Chief Operations Officer, Bill Hart – National Leadership Coach, Jake Fehling – VP of Marketing.

This Friday at 3PM ET is the next edition, co-hosted by MGIC, of The Mortgage Collaborative’s Rundown with Rich Swerbinsky and me. We’ll will be covering current events in the mortgage market for 45 minutes starting at noon PT in “The Rundown with Rich and Rob”!

Capital markets: giving back some of Thursday’s gains

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Markets trade off of psychology and expectations. Slowing U.S. inflation data last week dominated sentiment in the bond markets. Even though consumer prices rose 7.7 percent in the year through October, it was less than expected and now sits below 8 percent for the first time since February. At the core level, prices increased 5.8 percent between July and October. While this is still significantly higher than the Fed’s target of 2 percent, it is moving in the desired direction and has shifted expectations for December’s rate hike from 75-basis points to 50-basis points; mortgage rates dropped as a result.

A hard landing? While the cooler inflation gave investors hope that the Federal Reserve may temper rate increases, expectations are that the committee will err on the side of over-tightening rather than pause early in their battle against persistent inflation. Market expectations for the peak Fed Funds Rate are now between 5.00 and 5.25 percent with the final rise of this cycle following March’s meeting.

 

Unfortunately for news junkies, this week opens with no major releases scheduled. Over the remainder of the week, economic highlights include the Producer Price Index and NY Fed manufacturing tomorrow, import prices, retail sales, and homebuilder sentiment on Wednesday, housing starts/building permits on Thursday, and existing home sales and leading indicators on Friday. All will provide more clues on how the aggressive actions by the Fed are filtering into inflation and the economy and what that ultimately means for the terminal fed funds target range. We begin the week with Agency MBS prices worse .125-.250 versus Thursday night and the 10-year yielding 3.89 after closing last trading week at 3.83 percent.

(A traditional joke for this time of year.)
A young man named John received a parrot as a gift. The parrot had a bad attitude and an even worse vocabulary.
Every word out of the bird’s mouth was rude, obnoxious and laced with profanity.
John tried and tried to change the bird’s attitude by consistently saying only polite words, playing soft music and anything else he could think of to ‘clean up’ the bird’s vocabulary.
Finally, John was fed up and he yelled at the parrot. The parrot yelled back. John shook the parrot and the parrot got angrier and even ruder. John, in desperation, threw up his hand, grabbed the
bird and put him in the freezer. For a few minutes the parrot squawked and kicked and screamed. Then suddenly there was total quiet. Not a peep was heard for over a minute.
Fearing that he’d hurt the parrot, John quickly opened the door to the freezer.

The parrot calmly stepped out onto John’s outstretched arms and said, “I believe I may have offended you with my rude language and actions. I’m sincerely remorseful for my inappropriate transgressions and I fully intend to do everything I can to correct my rude and unforgivable behavior.”
John was stunned at the change in the bird’s attitude.
As he was about to ask the parrot what had made such a dramatic change in his behavior, the bird spoke-up, very softly, “May I ask what the turkey did?”

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Source: Rob Chrisman

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