Second only to the excitement of the new phone book coming, the new conforming loan limit is $548,250 for 2021, up from $510,400 in 2020, and some investors reacted. (More below.) The limit will impact home buyers in a positive way. The spread of COVID-19 (based on 2 things, how dense the population is, and how dense the population is) has led to an entirely new home life for many, and a shift in demand and features in a home. Millennials and Generation Xers are extremely or very interested in certain amenities in a new home like high-speed fiber-to-the-home/broadband internet for remote work, online classes, and high-definition movie streaming, wireless connectivity in common areas like the outdoors, in clubhouses, or near pools, and built-in, ready-to-use smart devices, such as thermostats, cameras, light switches, and refrigerators that can be controlled through mobile apps. (Builders are wiring homes with Category 6A or fiber cables to support wired and wireless technology.) Home design is changing as well, perhaps due more to the pandemic than to demographics. When this whole virus thing is over… I still want some of you to stay away from me.

Employment & transitions

Home Point Financial has had 96% of its associates working from home since mid-March. While growing loan volume and building capacity have been focal points, the company’s top priority is the care and well-being of its associates and their families. With many people pulling double-duty (working remotely while supporting young virtual learners) Home Point committed to providing laptops, tablets, or Chromebooks to all associates with children (kindergarten through age 22) that are attending school virtually from home. If you want to be part of a team that makes your career, and your family, a priority, apply for an open position on Home Point’s careers page.

REMN WHOLESALE (REMN) offers the products you need, the pricing you want, and the service you expect! Already recognized nationally for its industry-leading turn times, REMN is now synonymous with providing highly competitive pricing through the launch and expansion of its Platinum Products which incorporates Conventional and Government loan options for Purchases and Refinances (accessible through Loansifter and Lender Price). Mortgage Brokers and emerging Bankers choose REMN WHOLESALE because of its perpetual commitment to quality and its customer-centric approach toward providing exceptional service, support, and consistency. Providing a full array of loan programs from Conventional to Government; Jumbo to High Balance; 203(k) to HELOC, and the recent return of Non-QM, REMN is now more READY than ever to earn your business. Are you a seasoned Account Executive with one eye and ear on exceptional new opportunities? REMN Wholesale continues to recruit “top tier” Account Executives nationwide. For immediate consideration, please send your resume to [email protected].

“Shamrock Home Loans is thankful. Thankful for its clients, referral partners and company partners who enable us to close loans more effectively and efficiently than our industry peers. But, most of all, we are grateful for our employees. Mortgage professionals are inquiring and joining Shamrock for the award-winning culture because they subscribe to our Core Purpose: Everyone Deserves to Live in a Home they Love. Our culture is not a marketing talking point. It is experienced in our operations when we onboard new LOs and branches, how we support new staff members who have questions and how we invest in the growth of every branch who joins us. Dean Harrington, founder of Shamrock Home Loans, touches upon the power of gratitude in our families, friends and as important, our coworkers. Watch our weekly video-cast the Morning Huddle. Join Shamrock, an award-winning lender. Sales Teams, LOs, and Branch Managers, aim for something greater by contacting [email protected].”

ServiceLink is expanding and welcomes Ryan Vogt, VP, National Sales Representative for both Origination and Default clients. ServiceLink is a respected leader providing tech-enabled services for all phases of the home lending lifecycle from origination through default. Starting in the mortgage industry in 2007, Ryan brings over 13 years of client-centered sales and default industry experience. He has been instrumental in developing marketing strategies and business opportunities with new and existing clients, ultimately, improving the client experience. Ryan holds a BA in Business from the University of Florida. He resides in Jacksonville, FL, with his wife Melissa and twin boys.

Union Home Mortgage announced that Victor Guerrero has been named Area Manager of the Pacific Southwest, responsible for the growth and management of new and existing UHM branches in CA, AZ, and NV.

Lender and broker products & services

“No matter how you process your Final Docs, your confidential information needs to be protected at all times. At DocProbe, our SOC-2 compliance accreditation is a testament to our commitment and proactive sense of duty to ensure a robust and secure environment for our clients’ final documents and information. Strict security measures follow each document from retrieval to processing to auditing and through final delivery.  From upload to storage, we designed our environment to secure and protect your data and documents to prevent data breaches or loss, and implemented rigorous standards of security, privacy, and integrity at every stage. With dozens of new lenders and investors joining DocProbe’s roster of clients just over the last few months, these security steps complement our robust, proprietary technology platform in guaranteeing the successful retrieval, processing, and delivery of millions of trailing documents a year. Email Nick Erlanger or visit us to learn more.”

“Would $180M in additional applications help? ‘In the first 4 months we took in $180M in applications and we have about 100 LOs. That is a significant impact to our business. My top performing LO attributes 25% of her business to Sales Boomerang alerts.’ (Katherine Campbell, Assurance Financial) Our clients are the smartest lenders in the industry. They are the smartest because they have automated their borrower retention strategy which multiplied their repeat and referral business. These lenders have also firmed up their LO retention and LO recruitment process by using the #1 borrower retention system as one of the leading reasons to stay or join the lender. If any of these three items is on your list for 2021 then click here and schedule a demo.”

Stearns Wholesale continues to simplify and enhance business processes to increase productivity and efficiency. This month, Stearns is releasing a pilot for Single Disclosure Packages, which will help streamline the current eSign and eConsent process for broker and lender disclosures out of SNAP. Sending Broker and Lender disclosures in one package, will also allow automatic compliance checks prior to registration. If you want to learn more about the benefits of the single disclosure package or partner with Stearns, click here to be contacted.

Conventional conforming news

Talk of ending the GSE (Government Sponsored Enterprise, e.g., Freddie & Fannie) conservatorships in the next two months may fade away, barring some controversial consent order move. The Structured Finance Association (SFA) reassured Treasury chief Steven Mnuchin, “SFA reiterates our support for the ultimate goal of releasing the GSEs from conservatorship and to increase the role of private capital in our nation’s housing finance system in a responsible manner… “a hastily thrown together exit from conservatorship based on the political calendar risks undoing the positive work that has been accomplished and is currently underway,” wrote SFA CEO Michael Bright.

The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limits be adjusted each year for F&F to reflect the change in the average U.S. home price. Yesterday the FHFA published its third quarter 2020 FHFA House Price Index report, which includes estimates for the increase in the average U.S. home value over the last four quarters. Per the seasonally adjusted, expanded data FHFA HPI, house prices increased 7.42 percent, on average, between the third quarters of 2019 and 2020, thus the baseline maximum CLL will increase by the same percentage. For areas in which 115 percent of the local median home value exceeds the baseline number, the maximum loan limit will be higher. HERA establishes the maximum loan limit in those areas as a multiple of the area median home value while setting a “ceiling” on that limit of 150 percent of the baseline loan limit. The new ceiling loan limit for one-unit properties in most high-cost areas will be $822,375, or 150 percent of $548,250

Several investors and lenders reacted quickly to the new loan limits from Freddie and Fannie. Plaza Home Mortgage “is accepting the new loan limits for new conventional conforming and high balance commitments effective immediately. Loans locked under the new limits may be purchased prior to January 1, 2021.” PRMG “is pleased to begin allowing conventional loans with the increased standard and high balance limits to be submitted, locked and funded immediately.”

Don’t forget that the FHFA announced the extension (12/31) of several loan origination guidelines put in place to assist borrowers during the Covid-19 pandemic. Check out the information on alternative appraisal requirements on purchase and rate term refinance loans, alternative methods for documenting income and verifying employment before loan closing, and expanding the use of power of attorney to assist with loan closings.

The extensions are implemented in updates to Fannie Mae Lender Letters LL-2020-03, LL 2020-04, and Freddie Mac Guide Bulletin 2020-44.

Fannie Mae updated Lender Letter 2020-07 to clarify the requirement for reporting a delinquency status code for a Covid-19 payment deferral. In the month the Covid-19 payment deferral is completed, and the mortgage loan is reflected as current, the servicer is not required to report delinquency status information to Fannie Mae so long as no other delinquency status code is applicable.

Of course lenders and investors react to Agency changes. For example, due to the ongoing impact of COVID-19, Flagstar Bank is implementing temporary eligibility requirements for self-employed borrowers based on the announcements made by Fannie Mae and Freddie Mac and will remain in effect until further notice.

Interim appraisal guidance for Conventional transactions meeting Fannie Mae and Freddie Mac expressed tolerances are being implemented. The tolerances expressed in Memo 20030 will be accepted by Flagstar Bank as alternatives to the requirements listed in the Conventional Underwriting Guidelines. These temporary flexibilities are effective for all loans in process and remain in place for loans with applications dates on or before December 31, 2020 for which an appraisal has not already been obtained.

Disaster news

On November 12, with Amendment No. 10, FEMA granted Individual Assistance to 2 additional California counties, Mendocino, and Stanislaus, affected by wildfires.

Carrington Correspondent posted Announcement 20-0072: Updated FEMA Disaster Declaration for California. And posted Announcement 20-0071: Updated FEMA Disaster Declaration for Louisiana Hurricane Delta.

Flagstar posted Memo 20106 regarding Hurricane Delta requirements for satisfactory re-inspections in the affected counties.

loanDepot Wholesale is monitoring the impacts of Hurricane Delta and will provide updates as additional information becomes available. Refer to loanDepot Wholesale’s Disaster Center for more details.

This loanDepot weekly Announcement discusses Post-Close AVMs on VA IRRRLs and FHA Streamlines Government and a California Disaster Update.

Mortgage Solutions Financial posted Announcement 23-20C regarding FEMA Disaster Declaration for the State of Louisiana.

Arecibo County in Puerto Rico has been declared a major disaster area by FEMA. Sun West will require an interior and exterior inspection prior-to-funding or purchase of any loans with subject properties that are determined to be at risk. Refer to its Seller Guide for details.

Capital markets

If there’s one area of the economy the coronavirus has been able to not slow, it’s housing. Single family housing starts jump 6.4 percent in October to a 1.179-million-unit pace; the highest pace for single-family starts since April 2007 and slightly above the 70-year monthly average unit pace off 1.014 million. The National Association of Homebuilders’ index hit a record high in November as strong builder optimism was buoyed by robust sales and low inventory. With much of the new construction occurring in warmer climates, builder activity may remain a boost for the economy through the winter months which are historically plagued by weather related work stoppages. Existing homes are also enjoying vigorous demand as they jumped 4.3 percent in October to a 6.85-million-unit pace. Such strong demand has caused inventories to plummet 19.8 percent below their levels 12 months ago to a record low 2.5 months’ supply. This has also driven the average sale price to $348,700. Despite the low interest rates, home prices may soon begin to limit potential buyers seeking more space.

Yesterday also saw more positive housing data: the FHFA Housing Price Index rose 1.7% in September and the S&P Case-Shiller 20-City Home Price Index rose 6.6% year-over-year. The FHFA announced that the new conforming limit for 2021 would be $548,250 (+7.4%) compared with $510,400.

Looking at rates, MBS prices track 3-5-year Treasuries more than they do the 30-year bond due to their expected shelf-life, but longer-dated Treasuries pulled back during yesterday’s session, steepening the yield curve while the MBS basis ended mostly tighter amid over $8.4 billion in Fed support. Why? The Trump administration retreated from its refusal to formally begin President-elect Biden’s transition, which caused money to shift to a “risk on” stance.

If you’re out of work, you’re trying not to spend money. Today’s busy economic calendar is already underway with a slew of releases. The Weekly MBA Mortgage Index showed mortgage applications for the week ending November 20 increased 3.9 percent from one week earlier. We’ve also had Weekly Initial Claims (bad news, up 30k to 778k!), Q3 GDP, second estimate (33.1%, no change to the bounce), October Durable Orders (+1.3 percent, higher than expected), Durable Orders -ex transportation (+1.3%), a $80.3 billion trade deficit in October. The next batch of data later this morning includes October New Home Sales, October Personal Income and Spending, PCE Prices, Core PCE Prices, the Final Michigan Consumer Sentiment Survey, as well as the Primary Mortgage Market Survey from Freddie Mac following last week’s survey lows in the 15- and 30-year rates of 2.28% and 2.72%, respectively. The November 4/5 FOMC minutes will be released in the afternoon ahead of a regular close before the Thanksgiving holiday tomorrow. We begin today with Agency MBS prices unchanged from Tuesday’s close and the 10-year yielding .87 percent after closing yesterday at 0.88% after the initial salvo of data.

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?!”

(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. The current blog is, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed 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 2020 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.)

Remember when you drove to work every day? For non-mortgage kicks, here’s a site where you can take a virtual drive through dozens of cities around the world, setting the speed of the vehicle, street noise, and local radio station. (Just click on the city in the list on the right to see what that city is like.) I don’t live in a big city. In fact, “our town is so small, we don’t have a town drunk. We all take turns.” Janet Yellen is expected to take another turn at public service, this time as the first female treasury secretary. As you recall, President Trump declined to reappoint Yellen to the Fed chair after his election in 2016. During his campaign Trump said Yellen should be “ashamed” of her policy actions and accused her of keeping interest rates low in order to bolster President Barack Obama’s legacy. Recall that Donald Trump said of his own appointee, Chairman Powell, “No guts, no sense, no vision!” (When asked last year if she thought Trump “had a grasp” of macroeconomic policy, Yellen replied, “No I do not.”) Yellen is a fan of more federal spending from Congress to tackle the economic devastation caused by the virus. “There is a huge amount of suffering out there. The economy needs the spending.” What does Elizabeth Warren think? “Janet Yellen would be an outstanding choice for Treasury Secretary. She is smart, tough, and principled. As one of the most successful Fed Chairs ever, she has stood up to Wall Street banks, including holding Wells Fargo accountable for cheating working families.”

Employment

A company’s culture is about more than big gestures and spot bonuses when times are good. It’s often appreciated through the “little things” and how people are treated when times are tough. Home Point Financial has proven to be a top-flight workplace regardless of how you define culture. Home Point has reinvested more than $70 million into its associates through its “We Care” program since the onset of the pandemic. If you want to work at a company that offers competitive pay, prioritizes your safety and work-life balance, and has a leadership team that is committed to your long-term employment and professional growth, submit your resume via the Home Point careers page today!

Mortgage companies nationwide were recently asked to submit their information as part competition to win MPA’s Top Mortgage Workplace Award. Of the many eligible companies in the 500+ employee category, TMS was named among the Top 5 as a Top Mortgage Workplace! As TMS celebrates this award and look to build upon its success, TMS looks back over its core values and people that set TMS apart. Read the blog to find out why TMS scored over 85%.

Mann Mortgage, in scenic Northwestern Montana, just keeps winning awards for its workplace culture. Three weeks ago Mann was named the #12 Best Place To Work by Outside magazine, and today named a 2020 Top Mortgage Workplace by Mortgage Professionals America (MPA). The award recognizes companies in the industry that excel above all others by examining their culture, benefits, employee development, and more. “We’re honored to receive yet another award for our work environment this year,” said Jason Mann, CEO of Mann Mortgage. “I really can’t emphasize enough how incredible the Mann team is. Our employees have created an amazing atmosphere of support and teamwork. I’m so proud to be part of it.” Come join Mann’s award-winning team: there are openings for branch managers, loan officers, underwriters, mortgage loan processors, marketing, and operations careers across the country. Apply today here or send a confidential inquiry to Cassidy O’Sullivan.

Celebrity Financial Inc. is the ambitiously expanding parent company of multiple businesses across the mortgage, banking and fintech industries including Celebrity Home Loans. We are intent on reimagining the Digital Bank Space and led by a mission to educate and enable Financial Literacy for All, while providing exceptional, personalized customer service. We are seeking a forward-thinking Chief Technology Officer with requisite experience and vision to help us reach our full potential. Send inquiries to David Robnett.

“At Axia, we thrive on serving our borrowers well and getting loans closed on time. But we’re not all work. We do more than mortgages. Through our AxiaCares program, we make a difference by donating our time, talent, and financial resources to those in need. We recognize that many among us are experiencing a rough year, and we’ve allocated $94k to provide relief for those in our local communities. Axia also sponsors employee volunteer time, and in 2020, encouraged staff to support community generosity by sponsoring a Pay It Forward drive. We also take care of our own: Axia operates the Employee Needs Fund in which Axia matches employee-donated funds to ensure our team members are cared for when tragedy strikes. Do you want to be part of a team that puts priority on lifting up those in need? We’d love to have you. View Axia’s openings here.”

Flagstar Bank continues to grow at a record pace, which is why it is looking to add to mortgage ops team in the following positions: Processors, Team Leads, Senior Processors, Closers, Underwriters, Delegated Auditors and Managers. Flagstar Bank is committed to the health and well-being of their employees, and offers 100% remote opportunities on all positions, both now and into the future. Plus, right now, Flagstar is offering very competitive signing bonuses. Click here to learn more about all of the exciting opportunities that await you at a company that truly cares about its employees’ well-being.

Mortgage Assurance Inc, a close-knit boutique firm, has the rare opportunity to add a qualified underwriter to its team. Located in Dunwoody, GA, MAI leads to help independent brokers and banks to provide their customers with the best services in the Southeast. We also welcome those who would prefer to work remotely. The ideal candidate will have 4 years’ experience and currently holds a position in underwriting. If you want to be part of a team that has great employee retention and stability with many opportunities for growth, please email your resume directly to Miriam Hayes. These positions will fill quickly; if interested now or would like to hop on our waiting list, please email here. Don’t miss this great opportunity!

Norcom Mortgage continues to break sales records, with the best month in the company’s 31-year history. The east-coast based lender is licensed in over 30 states and has branches stretching from Maine to Florida and out to California. Part of Norcom’s success comes from its underwriting preparedness. Norcom takes pride in exceptional turn times and has expanded its underwriting team to meet increased demand. To learn more about Norcom’s extraordinary underwriting team, watch this video. If you’re an LO struggling with underwriting delays, contact Greg Radding today.

A publicly traded bank located in Colorado is looking for an experienced and growth-oriented manager to lead its sales team in the Kansas/Missouri market. The Bank is FNMA/FHLMC/GNMA approved and experiencing record growth. Candidate will be located the in Kansas City area and must have strong sales connections and focused on associate and market expansion. Please send resumes to Chrisman LLC’s Anjelica Nixt for consideration.

Lender & broker services and products

Just unveiled: MBA Chief Economist Mike Fratantoni’s forecast for 2021’s lending market! 2020 has been a banner year for the mortgage industry, but where will the market trend in 2021? First presented in National MI’s session at Maxwell’s digital conference MAXOUT last week, this hot-off-the-press report predicts a record-breaking year for purchase-focused lenders, a sharp falloff in refi activity, and much more. A few key factors will affect everything from interest rates to macroeconomic trends. Want to arm yourself with the experienced economist’s predictions as we head into (more) unprecedented territory? Click here to read “MBA Chief Economist Mike Fratantoni’s 4 Key Predictions for 2021”!

FloifyE-Sign, one of the newest additions to the industry’s leading point-of-sale platforms, puts a powerful, mobile-optimized e-signature solution into the hands of lenders, centralizing the borrower’s entire mortgage experience within one web-based portal. FloifyE-Sign further streamlines the lending process and improves ROI by providing robust native functionality, including drag-and-drop signature fields, custom inputs, text areas, checkboxes, dropdowns, and radio buttons, as well as templated documents. Additionally, lenders can choose whether certain inputs are required to be signed and/or checked by borrowers prior to completing the e-signature process. Borrowers can also complete their loan application and upload, review, and electronically sign their documents from one secure, mobile-responsive interface. Discover how to maximize the power of your digital lending process with FloifyE-Sign – included with all Floify subscription plans at no additional cost.

Lenders have continuously pivoted to digital and fully remote closings. And as parts of the country prepare for a second lockdown, this may be the norm for the foreseeable future. However, that doesn’t mean customers have lowered their expectations for a seamless customer experience. Mortgage Professional America sat down with Total Expert Founder & CEO Joe Welu to discuss how lenders can keep customer engagement on the rise. “We can prepare originators [for another lockdown] by giving them the best platform possible, to stay connected, communicate and engage with customers, no matter where that customer is,” said Welu. Read more on delivering the best possible customer experience.

Want to recognize your real estate referral partners? Nominate them for a Diamond Vanguard award for Real Estate Agent of the Year, Community Builder or Diamond in the Rough. Awards are given for 3 recipients in each state. Learn more and make your nominations here. Limited sponsorships may also be available for the awards to further promote your company and the referral partner relationship with real estate agents. Special discount for Rob Chrisman Blog readers of 25% off by entering the discount code “Chrisman2020”. For more information email [email protected].

Capital markets: ‘cuz that’s where the capital is

Why should an MLO or borrower care about the yield curve? Well, the curve represents interest rates on Treasury debt for a range of maturities, showing the yield an investor expects to earn if they lend their money for a given period of time. The curve is a diagram of leading economic indicators, in that its changing shape occurs at different points in the economic cycle. It is typically upward sloping, reflecting higher long-term returns (e.g. 30-year bonds) than short-term returns (e.g. 10-year notes, or 3-month) since investors expect more compensation for lending their money for a longer period of time due to the greater risk.

The yield curve flattens or eventually inverts when the perception of long-term investors that interest rates will decline in the future causes shorter-term debt to be more attractive by comparison, which usually dovetails with the expectation of a decline in inflation and portends an economic downturn. It is important to pay attention to because the shape of the curve helps investors get a future sense of the course of interest rates. Since investors will generally prefer the lower risk of short-term maturity securities over long-term maturity securities, the price of short-term securities will be higher, and the corresponding yield lower. Typically, the more robust the economy, the steeper the slope. Lately, it has been increasing.

Looking at the general economy, recent economic data shows the U.S. economy continues to climb out of the recession, but at a significantly reduced pace compared to the record setting third quarter. The immediate increase in coronavirus cases and resulting social mitigation, however, may dampen some of the recent positive momentum in the short term even as the mid to long term outlook remains positive due to the vaccine test results. Retail sales rose in October, but the smallest increase since re-openings began in the spring… yet were up 5.7 percent over the prior twelve months. Leading economic indicators increased in October, but the report noted the potential near-term downside risks. Initial claims for unemployment surprisingly increased by 31k for the week ending November 14 and remain well above their peak following the 2008 financial crisis. There is still hope that lawmakers will be able to come together to pass another stimulus bill, however the size and timing of that measure remain uncertain. The FOMC meets again in mid-December and there no significant changes to monetary policy are expected.

Yesterday was quiet except for news leak that President-elect Joe Biden is planning to nominate former Federal Reserve Chair Janet Yellen to serve as his Treasury secretary. Her first challenge would be delivering economic relief to Americans from Capitol Hill, though it has been reported that President-elect Biden is not in favor of reducing the size of the fiscal stimulus proposal, making compromise with Senate Republicans unlikely. Besides that, a poor 5-year auction and additional coronavirus vaccine-related optimism helped shift greenbacks into stocks and out of bonds, causing fixed-income prices to drop and Treasury yields to move higher. In terms of economic releases, both the Flash Markit Manufacturing PMI and Services PMI for November increased from the final October reading.

Today’s busy economic calendar is already under way with the Philadelphia Fed nonmanufacturing indices (-20.0 to 5.3). We’ve also seen that the total number of loans now in forbearance increased 1 bp to 5.48% of servicers’ portfolio volume in the prior week as of November 15, per the MBA’s latest Forbearance and Call Volume Survey. According to MBA’s estimate, 2.7 million homeowners are in forbearance plans. Later this morning brings September house price indices from S&P/Case-Shiller and the FHFA, November consumer confidence, and the Richmond Fed manufacturing and services indices for November. There are also several Fed speakers scheduled (St. Louis’ Bullard, New York’s Williams, and Fed Vice Chair Clarida), as well as auction results on $56 billion of 7-year Treasury notes. Today sees a sizable $8.4 billion of Desk support, including over $7 billion in UMBS30s. We begin the day with Agency MBS prices are down/worse a few ticks and the 10-year yielding .87 after closing yesterday at 0.86% for no real reason.

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. The current blog is, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed 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 2020 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.)

Sunday morning I was trying to explain to my cat Myrtle how the total cost of rescuing a stranded Matt Damon in all of his films (think Saving Private Ryan, Interstellar, The Martian) was an estimated $900 billion. She was not impressed, seeing as a) the scent of turkey in the refrigerator that is more captivating, and b) she overhears billions continually being talked about in this business. For example, in September of 2008 the agreement the Treasury made with both GSEs (Government Sponsored Enterprises, namely Freddie and Fannie) specified that in exchange for future support and capital investments of up to US$100 billion in each GSE, at the inception of the conservatorship, each GSE shall issue to the Treasury US$1 billion of senior preferred stock, with a 10% coupon, without cost to the Treasury. There were also stock warrants involved. Wanna buy stock in the GSEs? Read this first. Why should LOs care about Freddie Mac and Fannie Mae? About 70 percent of applications are for conventional conforming loans, so it makes sense to pay attention to their future. And everyone, and their uncle, has an opinion about the “Frannie.” More below!

Employment & transitions

On Nov. 19, President Bill Clinton was joined by Caliber Home Loans CEO Sanjiv Das for the Clinton Foundation’s virtual conference “Building an Inclusive Recovery.” The three-part series addresses racial and economic disparities in the wake of COVID-19. Part II, titled Affordable Housing and (Re)Building the American Dream, focused on affordable housing and how homeownership is an effective solution to building financial stability in America. President Clinton and Das were joined by a panel of experts knowledgeable in strengthening communities at the local, state, and national levels. Watch the replay on the Clinton Foundation website. “Caliber is a company with smart, strategic leaders who are enthusiastic about sharing knowledge. Come work for a company that will help you grow professionally. Visit our website today to view open opportunities. To be immediately considered for Operations or Sales positions, email Jonathan Stanley or Brian Miller respectively.”

Newfi Wholesale is looking for experienced Account Executives with an established account base in select geographic areas. As rates are starting to rise it’s critical to be part of a company that offers a diverse product selection with multiple solutions for your broker partners. Newfi’s proprietary non-QM products offer bank statement, 1099, asset depletion,1-year tax return and DSCR qualification options with all loan decisions made in-house and the ability to make exceptions. Newfi also offers six Jumbo programs, including one with an AUS option that allows true blended ratios and Cash Out up to $1M, as well as traditional Agency and Government programs. “Our proprietary technology delivers a smooth and effortless experience for our clients. Don’t get trapped with only vanilla products and have to compete with everyone on price – Newfi excels in all markets and rate environments. To learn more about joining the Newfi team please email Travis Butler.”

If you’re ready to begin the new year with a new career opportunity, Franklin American Mortgage Wholesale Lending is looking for a talented and experienced Operations Manager to oversee its Irving, TX operations center. As a part of one of the strongest bank-owned wholesale lenders in the nation, this senior management role will be part of the leadership team that sets the direction for Franklin American Mortgage Wholesale Lending nationally. “If you’re interested in the opportunity to lead a great team and help shape the future of a thriving business channel, contact our SVP of Wholesale Lending, Bobby Frank today!”

PHH Mortgage is looking to capitalize on the success of its Delegated Correspondent and Reverse Mortgage channels and is seeking experienced Account Executives and Relationship Managers who have a proven track record of success and a commitment to culture, collaboration, and customer experience. “Our story this year has been defined by rapid growth, superior service, industry-leading turn times and exceptional partner loyalty. If you are interested in joining a growing company and a winning team, please contact Bob Marseilles, VP of Correspondent Lending for additional details.”

“Control Freaks Wanted. Primary Residential Mortgage, Inc. (PRMI) is looking for control freaks. That’s right: if you like being in control of your own destiny and doing things your own way, we want you. At PRMI, we respect your creativity and entrepreneurial instinct. You’ll have the support, resources and, most importantly, freedom you need to do what you know is best for your market, your customers, your team, and your future. We’re always here to back you up, but you succeed on your own terms, and you realize the benefits of your success. Join PRMI today and take control of your future. Visit our website or contact Amy Gallow, VP of Business Development to learn more.”

“A comp plan that sounds too good to be true! Imagine a compensation plan where you get paid for the work you do regardless of whether the loan funds, well imagine no more. Our Mortgage Advisors are compensated on “New Loans Sent to Processing “giving them control over the speed of service and their monthly compensation. PCMA Private Client Lending is recruiting for top tier talent and our compensation plan proves it. To learn more about our rock star compensation plan click here: ARE YOU A ROCKSTAR. For consideration we suggest a visit to our client site www.pcma.mortgage and www.pcma.us.com to learn more about our firm, our principles, and our culture. Email us at [email protected].”

FundingShield announced Kurt Kluth has joined as VP of Technology – Sr. Data Administrator where he will lead the data management and modeling team to deliver optimal process models, fraud prevention, and ensure transactional data integrity. Prior to joining Fundingshield Kurt was a Data Architect for CloudVirga and was a Sr. Database Administrator for First American Title Corporation.

Lender products & services

Are you ready for VA IRRRL opportunities in this market? Learn how to efficiently submit your files once for a final approval! Join Freedom Mortgage Wholesale for a live webinar training session on VA IRRRL mortgage products and origination processes. Ideal for new or experienced government originators. Sign up for a VA IRRRL webinar on 11/24.

What if you could get 10 hours of undivided attention from over 2 million real estate agents and financial advisors in 2021? You may have missed the news, but a whopping 73% of agents are re-evaluating their current relationships or looking for new ones. Through its work with Inman, Momentifi is signing up many of the top agents in the country for its new solution that helps mortgage companies and LOs protect their current relationships and find new ones. “The challenge we’ve found is that LOs are too busy to get in front of referral sources, and COVID is also making live events impossible,” says Momentifi CEO, Gibran Nicholas. “Meanwhile, agents and advisors still need mandatory continuing education (CE) credits each year. We’ve created a solution that imbeds you and your message into our mandatory CE classes.” Join Momentifi’s demo at the Finovate digital conference today or click here to schedule a private demo with Gibran.

“Sales Boomerang is our highest and best ROI – hands down. We get instant feedback, and we usually get borrowers on the phone within minutes. Our Loan Officers have pure joy when they see that my company has my back. They literally say, thank you for putting food on my family’s plate. Loan Officers expect to have Sales Boomerang. When they walk in the door, they ask if we have Sales Boomerang. It’s expected, like a mandatory part of our toolkit. It’s the gold standard. You must have it if you want to be in the mortgage industry.” (Kevin Peranio, Chief Lending Officer, Robin Clayton, Senior Digital Strategist, PRMG) Learn more about Sales Boomerang.

Are you ready to solve your appraisal logistics problems? Reggora is a leading all-in-one appraisal technology for both lenders and appraisers. By automating manual processes like order allocation, payment processing, appraisal review, and more, Reggora makes the appraisal process easier for everyone involved. Learn more at www.reggora.com

Freddie Mac and Fannie Mae caught in a crossfire

Scores of thousands of originators just want to help their clients with financing. While they’re doing that, however, the upper echelons of residential lending are focused on some potentially big changes – or not – which could impact pricing or the availability of credit for large swaths of borrowers.

American Banker’s Hannah Lang writes, “The Trump administration has moved forward on a plan to privatize Fannie Mae and Freddie Mac, but Joe Biden appointees could take steps to slow or stop their release from conservatorship.”

The Federal Housing Finance Agency (the federal regulator who oversees Fannie Mae and Freddie Mac) is pushing to speed up F&F’s exit from 12 years of government control through conservatorship. But Mark Calabria, who runs the FHFA, has yet to reach an agreement he needs with Treasury Secretary Steven Mnuchin. Both of them have made it a priority to return Fannie and Freddie to private hands, but how that is done will impact the cost and availability of conventional conforming home loans.

Recall that the CEO of Freddie Mac and senior management at Fannie Mae announced departures (after the results of the election were determined). Most expect little to change regarding housing finance reform, but stranger things have happened. We won’t know which party will control the Senate until the Georgia runoff election, chances are that Republicans will hold the chamber and we will be looking at divided government. As Brent Nyitray observed, “True housing reform will have to be accomplished legislatively, and with COVID front and center it probably won’t have the urgency to get considered, at least in the near future. Given the new administration’s focus on perceived systemic racism in lending, the government will want to keep F&F on a short leash in order to push affordable housing goals.”

Last week the FHFA announced a final rule which establishes a new regulatory capital framework for F&F to ensure safety and soundness. It is similar to the proposed rule published earlier this year but made some modifications in response to comments. Namely, it increases the dollar amount of capital relief for the GSEs’ credit risk transfers, reduces the credit risk capital requirements for single-family mortgage exposure subject to Covid-19 related forbearance, and increases the exposure level risk-weight floor for single-family and multifamily mortgage exposures to 20 percent. The final rule takes effect 60 days after publication in the Federal Register (which is printed every day).

According to a fact sheet released in conjunction with the announcement, the final rule preserves key enhancements contained within the proposed rule. For example, ensuring each GSE “maintains high-quality regulatory capital by including a set of supplemental capital requirements, strengthening the quality of regulatory capital, including backstop leverage requirements, and addressing pro-cyclicality through measures such as capital buffers and single-family mortgage exposure countercyclical adjustments.

But the MBA President and CEO, Bob Broeksmit, CMB, released a statement expressing MBA’s disappointment that FHFA did not adequately address several concerns identified by MBA when the framework was re-proposed. The framework features a high level of required capital that likely will raise borrowing costs for consumers and adversely affect the availability of credit. Further, the harsh treatment of credit risk transfer mechanisms is unlikely to provide sufficient incentives for the GSEs to engage in significant levels of this activity, concentrating more risk at the GSEs.

Isaac Boltansky with Compass Point Research and Trading has some well-written thoughts from the FHFA’s Capital Rule, released last week. “At the highest level, the final rule is structurally and substantively similar to the original proposal with only a handful of consequential changes. Using data as of 2Q20, the GSEs would need to hold an aggregate $283.4B in capital compared to $262.7B under the re-proposal released earlier this year.

“On the positive front, this rule envisions an abundance of capital that should buoy the GSEs through seemingly any economic cycle and there was a modest softening of the capital treatment for CRT. Furthermore, with this in the rearview mirror, the FHFA will now focus on the PSPA amendment, which is the next mile marker on the road to ending the conservatorships.

“On the negative front, this rule envisions an overabundance of capital that could negatively impact the GSE return profiles, any future effort to raise equity capital, and mortgage credit availability if G-Fees are forced to move higher. Furthermore, it appears that the risk-based requirements were increased at least in part to counter criticisms stemming from the leverage requirement being binding under the proposal. Finally, our sense is that the CRT shifts will not reverse the uneconomical construct introduced in the proposal, which leads us to believe that new issuance may remain subdued.”

Capital markets

What moved rates toward the end of last week? A letter late Thursday from Treasury Secretary Mnuchin to Fed Chair Powell saying that certain emergency lending programs (including backstops for the municipal- and corporate bond markets) would expire at the end of the year as scheduled did not help investor sentiment. Chair Powell had expressed support early last week for extending several key lending facilities (e.g. Municipal Liquidity Facility, Term Asset-Backed Securities Loan Facility) that are due to expire at the end of the year. The Treasury Department also sent the central bank a list of unused funds meant to backstop five emergency lending facilities to be repaid, and the central bank said it would comply with that request.

The Treasury Secretary believes his agency and the Fed have plenty of firepower to support the economy, while the Fed is believed to strongly oppose the move, saying it is too soon to put down its emergency tool kit. It may force the Fed’s hand at its December 16-17 meeting to shift its purchases to longer-dated Treasuries, release a more-detailed bond-buying plan, or potentially change its pace of QE as an imperfect substitute for the expiring credit market backstops.

Black Knight reported Mortgage delinquencies improved for the fifth consecutive month in October (-105k), falling another 3.3% from September to reach the lowest level since March (6.44%). Still, the 3.4 million homeowners past due on their mortgages represents nearly twice as many delinquencies as there were at the start of the year. In better news, it reported the number of high-quality refinance candidates to approximately 19.4 million, for an aggregate potential monthly savings of $5.98 billion, both the highest on record. This comes as Freddie Mac announced 13th record low this year on the 30-year fixed rate mortgage average at 2.72% last week.

This holiday-shortened week is busy with data and month-end supply (usual T-bills as well as the 2-, 5- and 7-year notes). Economic highlights include Markit PMIs, consumer confidence, personal income/spending, durable goods, GDP, new home sales and the FOMC minutes from the November 4-5 meeting. In addition, FHFA HPI for September will be released tomorrow with the FHFA likely announcing the new conforming loan limit (currently $510,400) shortly thereafter.

The Chicago Fed National Activity Index for October (+.51 to .83) led off today’s calendar. Later this morning brings preliminary November Markit manufacturing and services PMIs and remarks from San Francisco Fed President Daly and Chicago Fed President Evans. The NY Fed Desk will purchase up to $20.8 billion over the first three days of this week. Today’s schedule totals $6.9 billion maximum over all three classes: $1.2 billion UMBS15 1.5% and 2.0%, $3.7 billion UMBS30 1.5% and 2.0%, and $2 billion GNII 2.0% and 2.5%. We begin the week with Agency MBS prices down/worse a few ticks and the 10-year yielding .85 after closing last week at 0.83%.

Thank you to Heidi B. for:

Has COVID-19 forced you to wear glasses and a mask at the same time?

If so, you may be entitled to some condensation.

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. The current blog is, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed 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 2020 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.)

Earlier this week I wrote about technology, and that a few old wooden crank telephones were circulating in the family. The note prompted all kinds of stories about the first time anyone saw a fax machine, their framed HP-12C on the wall, and the development of the internet. The machines keep improving and the programming becomes more complex. Does your CEO know the difference between a coder and a programmer? Me neither, until I dug around a little. Programming involves more than just coding, and programmers are usually involved in planning and allocated the tools and resources that the company needs. After that, the coding starts, and is often done by a more junior person. When hiring and deciding if you need a coder or a programmer, the skills a programmer uses are an evolution of the skills that a coder uses. (It sounds similar to the difference between secondary marketing and capital markets.) Let’s see who’s doing what with technology, M&A, partnering, and customer service.

SitusAMC announced the acquisition of rSquared, provider of commercial real estate technology solutions. “This acquisition adds valuation and underwriting software, rDCF, and budgeting and re-forecasting software, rBudget, to SitusAMC’s rapidly growing suite of commercial and residential technology offerings, which includes commercial loan lifecycle management system, CLOSER, and valuation management system, VMS, among others.”

Stewart Appraisals Management, Inc announced the acquisition of Pro-Teck Services Ltd., strengthening and expanding its scale in appraisal and valuation solutions.

Universal Credit Services (“Universal”), and CIS Credit Solutions (“CIS”), announced a merger which follows CIS combining forces with Avantus earlier this year; creates a clear market leader in mortgage technology, credit reporting and related products and solutions for mortgage originators. Universal, CIS and Avantus will initially maintain independent brands, and will gradually combine their operations. The companies will leverage common operational excellence processes, share best practices, and optimize resources to provide a greater level of scale, product offering and customer service for its clients. The transaction will maintain continuity for customers in all respects, with the opportunity to enhance solutions and service offerings, and introduce new products to further optimize mortgage underwriting workflow.

Mastercard announced this week that it has closed its acquisition of Finicity, a leading provider of open banking solutions. “Finicity adds to Mastercard’s commitment to be a one-stop partner for banks, merchants, fintechs and governments. These connections are supported through next generation open banking APIs and consumer approvals.”

A recent press release announced TransUnion’s equity investment in FinLocker’s approximately $20M Series A-1 financing round as well as entrance into a commercial partnership agreement. The partnership will allow consumers to collect and permission their financial information needed to secure a mortgage, among other loans. This can allow consumers to receive a loan decision much faster and even make a home-buying offer equipped with a loan commitment from their lender ahead of time. Consumers are able to maintain control of their information throughout the process and lenders also benefit in a number of ways.

Total Expert, creator of the leading marketing and customer experience platform for banks, lenders, and financial services, announced its partnership with the Cooperative Credit Union Association (CCUA), a trade organization serving nearly 180-member credit unions in Delaware, Massachusetts, New Hampshire, and Rhode Island.

The launch of the TransUnion Income and Employment Verification solution provides lenders and other verifiers with seamless access to verified income and employment data directly within the credit report, removing unnecessary overhead of separate integration efforts and related costs, and improves the consumer experience. The initial launch is in collaboration with one of the leading payroll providers in the U.S., which will provide immediate access to tens of millions of active employment records. Data is updated every pay cycle to supply the most recent view of a consumer’s employment status and income.

HomeFree-USA has partnered with credit score model developer VantageScore Solutions, LLC, to introduce students from Historically Black Colleges and Universities (HBCUs) to opportunities in the mortgage and real estate finance industry, by way of HomeFree-USA’s Center for Financial Advancement® (CFA). This partnership will aid in providing credit education and financial knowledge, in addition to scholarship and program funding, to students and HBCUs around the country.

First American Docutech announced a new integration with Encompass by Ellie Mae. With the integration, Encompass lenders can accelerate their closing process by easily implementing First American Docutech’s suite of digital mortgage and closing solutions. The integration seamlessly updates key disclosure tracking fields, and automatically delivers documents into Encompass.

Accurate Group announced the release of its new ValueNet™ Rental Addendum Form to help lenders and investors reduce valuation time and cost associated with rental loan programs.

ValueNet can now be used on rental properties, satisfying a significant need for fix and flip lenders. Additional lender benefits to the ValueNet Rental Addendum Form include faster turn time compared to standard GSE forms, can be used for single family, condo, multi-family rental homes, and can be used with either interior or exterior desktop appraisals.

Finastra announced that Christian Investors Financial (CIF) has selected Finastra to provide the technology as it embarks on a digital transformation, including modern mobile services, and an open, cloud-based core processing platform. The nonprofit church extension fund, with a strong history of growth and operational success, will use an integrated omnichannel banking solution including Finastra’s Fusion Phoenix core and Fusion Digital Banking, and integrated solutions for document management, self-service account opening and account-to-account transfers in order to provide a robust experience to its customers.

LBA Ware has integrated its LimeGear BI platform with Fiserv to provide out-of-the-box business dashboards and reports to users of the Mortgage Director loan origination system (LOS). Now banks, credit unions and independent mortgage lenders gain immediate access to sophisticated tools for improving efficiency, productivity, and profitability.

Indecomm has partnered with ability-to-pay fintech FormFree® to introduce Business Health Check, an automated analysis of self-employed loan applicants’ current business income and expense streams that helps mortgage lenders make better-informed loan qualification and underwriting decisions. Calculated using Indecomm’s IncomeGenius® and validated against business bank account information via FormFree’s AccountChek®, Business Health Check provides mortgage lenders with a uniform, document-free approach that encourages consistency while reducing risk and delivering key insights.

LexisNexis Risk Solutions announced LexisNexis® Fraud Intelligence, the newest addition to the company’s suite of fraud and identity products. LexisNexis Fraud Intelligence is a non-FCRA solution that helps organizations mitigate new account fraud risk by bringing together identity events and consumer application activity to arrive at a comprehensive, powerful score that offers a complete view of identity. The new tool limits friction for legitimate consumers because it can identify applications in real-time that are most likely fraudulent.

BBVA USA is offering a digital Home Equity Line of Credit (HELOC) through its website, powered by Prosper, a leading online marketplace for consumer loans. Prosper’s digital HELOC platform, which was developed to simplify the process of applying for and obtaining a HELOC, is now available to BBVA USA customers in select states via the BBVA-branded version of the platform.

OptifiNow enhanced its integration with MeridianLink’s® LendingQB to allows wholesale lenders using OptifiNow to monitor broker performance and receive automated alerts that improve sales efforts and customer service.

Edgescan™, the ‘fullstack’ Vulnerability Management Security as a Service (SaaS) solution provider, announced its partnership with Richey May Technology Solutions. The partnership will continue the company’s channel expansion into the North American market and support Edgescan’s growth within the financial services and real estate industries. The partnership will allow Richey May Technology Solutions to offer Edgescan’s Software-as-a-Service (SaaS) platform to its clients that delivers highly scalable, accurate and fullstack vulnerability management and intelligence.

Don’t forget that INTL FCStone Inc. rebranded itself as StoneX Group Inc. The rebrand to StoneX was the last step in the process to become a global financial services firm that provides a unified digital platform that offers efficient access and connectivity to all major financial markets around the world. The Company is be traded under the symbol SNEX

effective July 6, 2020.

LoanLogics has released a white paper explaining how mortgage lenders can “employ” digital labor more effectively with human staff, more flexibly as their digital workforce grows and more strategically using verified loan file data to power even more sophisticated automated solutions. The white paper, “A Field Guide for the Care and Feeding of Digital Labor,” defines and lays out best practices for implementing a digital workforce.

Cherry Creek Mortgage Company (CCMC) announced an integration with the Covered Digital Insurance Marketplace. With this partnership, CCMC’s homeowner and homebuyer customers can now easily purchase home insurance, shopped, and compared from over 25 top national and regional carriers. In just minutes, customers can find the right coverage for the right price and deliver the needed documents to Cherry Creek Mortgage for the closing process. Customers can easily opt-in via CCMC’s Borrower Portal to receive quotes, request to talk with an agent, review coverage/limits, bundle policies, and complete their purchase. For more information, read the full press release.

Over the summer we saw a new complimentary market resource from Optimal Blue produced in collaboration with the Andrew Davidson & Company called Mortgage Pricing Insights. Released monthly, this report leverages proprietary data and analytics produced by both firms to provide a comprehensive view into mortgage finance across the primary and secondary markets. Each report includes updates to mortgage metrics like rates, yields, volumes, and prepayments, and also highlights the most relevant current and ongoing trends in the mortgage industry.

Plaza Home Mortgage® interviewed Taylor Stork, EVP, Chief Operating Officer at Developer’s Mortgage Company, on their experience with our Certified Loan Program and how it helped manage their warehouse lines. Check out the Developer’s Mortgage case study and see how Certified has provided Developer’s the insurance they need during this time of high volume and revenue. Plus, Plaza’s Certified Loan Program now offers protection for loans that have been affected by COVID-19.

Qualia and LemonBrew have announced a partnership for Qualia to power LemonBrew’s title & escrow division. Originally servicing only New Jersey and Pennsylvania, LemonBrew Abstract has recently grown to 19 states and is planning a nationwide expansion throughout 2020. Qualia will be the technology platform of record for LemonBrew as they expand and will allow them to offer new options for clients in contactless closings.

The Google Lending Doc AI Solution is continuing to turn heads. “Transform the home loan experience for borrowers and lenders by automating mortgage document processing. Reduce processing time and streamline data capture while supporting regulatory and compliance requirements.”

The launch of RealKey Digital Mortgage Platform will provide a seamless, end-to-end experience for all parties involved in a mortgage transaction. RealKey cuts the loan processing cycle by 50%, allowing MLOs to close twice as many loans with its mortgage automation technology that enables mortgage loan originators (MLOs) to enhance the mortgage processing experience for borrowers by improving efficiencies, shortening the document collection as well as the review and verification stages.

Endurance Advisory Partners published a white paper that offers advice to financial institutions on best practices for evolving in a post-pandemic world. The white paper, titled Five Themes for 2021, offers actionable steps that firms can take in the current environment. It can be found on Endurance’s website.

REMN Wholesale implemented the OptifiNow platform to drive its sales and marketing efforts. OptifiNow’s integrated CRM and marketing automation platform will enable REMN Wholesale to manage their national sales team more efficiently and execute a unified marketing strategy. OptifiNow’s robust contact manager simplifies the task of monitoring key accounts and scheduling appointments for REMN AEs. Integrated email marketing tools allows REMN marketing teams to launch manual and automated campaigns. OptifiNow configured the platform for REMN’s wholesale channel but is equally adept in both retail and consumer direct environments.

Introducing Ocrolus’ core functionality upgrade to its existing fintech infrastructure, Cross Source Validation (XSV). “Replacing the manual, time-consuming process, XSV automatically compares data extracted from multiple documents or data sources to verify that borrower provided information is logical and correct with an automated workflow to classify, read and validate data.”

Thank you to Larry P. who reminded me of this classic.

Dave the Realtor and John the Loan officer go to a pastry shop.

Dave suddenly whisks three cookies into his pocket with lightning speed. The baker doesn’t notice.

He says to John, “See how clever I am? You’ll never beat that!”

John replies, “Oh yeah? Watch this.”

He says to the baker, “Give me a cookie, I can show you a magic trick!”

The baker hands him a cookie which he promptly eats. Then he says to the baker: “Give me another cookie for my magic trick.”

The baker is getting suspicious but he gives it to him. He eats this one too.

Then he says again: “Give me one more cookie… “

The baker is getting angry now but gives him one anyway. He eats this one too.

Now the baker is really mad, and he yells, “And where is your magic trick?!”

John points at Dave and says: “Look in Dave’s pocket”.

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. The current blog is, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed 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 2020 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.)

 

Many years ago I was hanging out with George Clooney and made the mistake of telling him, “Look, you’ll never amount to much as an actor. You’d be much better off sending out a free daily commentary.” He thought differently and it led to a rift between us, and we haven’t spoken since. Looking back, it was probably a mistake on my part, especially when the story came out that he gave 14 of his friends each $1 million in cash! Speaking of receiving, or earning, money, a recent STRATMOR workshop poll showed that “tiered dollars per loan” is how a large block of lenders pay incentives to their operations staff (versus achievement of individual or team objectives, or flat dollars per loan). On the legal side, no one wants to pay fines, and did you know that the U.S. Sixth Circuit Court of Appeals ruled that lenders cannot rely on borrowers to satisfy ATR rule? In a case regarding the Dodd-Frank Act’s ability-to-repay (ATR) provisions, the Court determined the defendant bank violated the Truth-in-Lending Act by erroneously relying on the verbal statements from the plaintiff and his ex-wife regarding his income and failing to verify those statements with documentation.

Employment & promotions

A Director of Product Management is needed by a leading provider of virtual document management and workflow automation in the mortgage industry. “Responsibilities include creating the vision, direction, and adoption of our products. This individual will manage a business analysis team and team with members from the product solutions department. Successful candidates must be able to understand and communicate customer and prospect needs and wants to the organization. Through a collaborative and iterative agile design process, this role is expected to manage the product design process, hand off to development and QA teams, and interact with customers. We are seeking someone with a keen ability to ascertain the unspoken needs of market segments and elicit meaningful findings that will help propel the product and company forward, staying abreast of the competitive landscape and industry trends.” If you’re interested, please email your resume to Anjelica Nixt.

Track record of long employee tenure = Assurance Financial. Best tech stack in the mortgage marketplace = Assurance Financial. Exemplary record of servicing purchase money market MLO’s = Assurance Financial. Incredible entrepreneurial Branch Manager business model = Assurance Financial. Community service oriented in all markets with St. Jude as our philanthropy partner = Assurance Financial. Founded in 2001, licensed in 43 states, all agency approvals, not controlled by private equity, and growing in all markets. If you are an aggressive producing branch manager or senior mortgage loan officer considering another opportunity, please contact Paul Peters, CMB or Lindsay Anders to discuss an opportunity with Assurance Financial.

Sun West Mortgage Company, [NMLS 3277] a leading full-service national mortgage lender, is excited to announce Costpro Lending Team, a new division of Sun West Mortgage Company, Inc. Maxx Zamani, Bobby Afrasabi, and Carly Zamani of Costpro Lending Team recently joined Sun West Mortgage Company in Buena Park, CA. Joining the award-winning mortgage professionals will be their highly qualified team, which Bobby Afrasabi says is like family. “We’re a family business with the backing of a corporation that’s been around forever. Employees are family. We took a big shift and completely changed direction, because we cared about our family needs”, says Bobby Afrasabi. Costpro Lending Team will be a great asset to the Sun West Mortgage Company and the expansion of their west coast operations. For more information on Sun West, please contact Managing Director, Leif Boyd or SVP, Business Development, Peter Schwartz at 916-770-0053. For Sun West Mortgage Company, Inc. licensing information and disclosures, click here.

“Don’t fear tomorrow! Come to a lender who can close loans faster, has all the products you need to be successful and the management team actually knows your name. Your loans aren’t a line item on a pipeline report at Shamrock HomeLoans. We build our market strategy around you to achieve specific production goals. We are a company for top producers and people who want to be a top producer. If your employer doesn’t invest in your growth, why not expect more? We have Ad Agency Quality Creative Design and Videography to showcase you, your branch or division to realtors and consumers. You deserve more and the only obstacle is fear… fear prevents consistent growth. Dean Harrington, founder of Shamrock Home Loans, touches upon this in his impressive weekly video-cast the Morning Huddle, discussing consistency as it relates to ‘Fear.’ Join Shamrock, an award-winning lender. Sales Teams, Loan Officers and Branch Managers, aim for something greater by contacting [email protected].”

Northpointe Bank, a top performing bank in the nation*, announces its new streamlined Jumbo Fixed-Rate & ARM program. With total focus on customers, Northpointe offers more loan programs, better technology, and very competitive pricing that delivers true value for its borrowers. Programs like Northpointe’s new streamlined Jumbo with loan amounts up to $3,000,000, loan-to-value ratios up to 90% and no mortgage insurance requirement with a competitively low rate. You’d be hard pressed to find better solutions anywhere else!  If you are an expert home loan professional ready to grow and thrive, learn more at northpointe.com/join, or connect with Tom Borrelli, VP, National Sales. (* For each of the past six years, Independent Community Bankers of America® has ranked Northpointe Bank as a top-performing bank in the nation out of approximately 5,000 ICBA member banks.)

“Trinity Oaks Mortgage has partnered with Sales Boomerang, the #1 Borrower Retention technology in the mortgage business, to ensure its Loan Officers don’t just get the first loan, but ALL ELEVEN mortgage transactions the average borrower has in their lifetime. In short, by utilizing the tools we provide, such as Sales Boomerang and others, our Loan Officers do less work and will consistently average two additional deals a month than they would at another lender. That’s how we help our LOs build their businesses and ensure a profitable, life-long customer database. If you’re looking for a position at a company that consistently equips their LOs with the tools needed to achieve huge success, let’s talk! Contact Todd Reynolds for more info.”

Planet Home Lending has promoted Dalila Ramos to VP of Talent Acquisition to support recruiting efforts in the company (she was already working with distributed retail and operations).

Company-sponsored training & events

Are you ready for VA IRRRL opportunities in this market?  Learn how to efficiently submit your files once for a final approval!  Join Freedom Mortgage Wholesale for live webinar training sessions on VA IRRRL mortgage products and origination processes. Ideal for new or experienced government originators.  Sign up for a VA IRRRL webinar on 11/20 or 11/24.

 

To successfully manage an incredible volume of business, you need to build an equally incredible team! XINNIX Founder & CEO, Casey Cunningham, will present a free live webinar – “Proven Ways to Build New Talent”, on Wednesday, December 2 at 1 PM ET. As the expert in building new talent quickly and effectively, XINNIX will share their proven methodology behind successfully empowering and equipping the next generation of mortgage professionals. Leaders looking to grow their teams in 2021 won’t want to miss this event. Prepare for all the success that potentially lies ahead for your business in the new year: reserve your seat today!

Join Josh Friend, CEO Insellerate as he goes live with Rob Chrisman, capital markets consultant, today from 11AM-11:45AM PT. Listen to key industry insights and in-depth conversations where they discuss the economy, industry trends, and provide an outlook for 2021.

Servicing tidbits

Years ago, servicing, and the fluctuation in the value of servicing, was an afterthought. That has changed, and the volatility in the value of government servicing (primarily Ginnie Mae securities backed by FHA & VA loans) we saw in March and April given forbearance uncertainty once again reminded us that servicing impacts the perceived value of loans in pricing algorithms, and therefore borrowers, everywhere. And for the last several years the CFPB has been focused on servicing since it, and any transfers, is a critical touchpoint with the consumer.

Making the decision to service a portfolio of residential loans should not be hasty. Currently the top 25 servicers manage 85 percent of all servicing! And who the large servicers are has shifted: a look at the top 50 servicers shows about half non-bank and half depository bank as banks like Wells ($1.3 trillion), Citi, and US Bank have reduced holdings. Chase, for example, has been “de-risking” and focusing on the quality of its portfolio rather than quantity. And MLOs are especially interested in what Black Knight, which is estimated to have access to 70-80 percent of the servicing data, says about homeowners with mortgage rates above the current market: 18.5 million.

For an update on the scratched and dented market, RAMS’ Tad Dahlke reports that it has followed everything else in the financial markets, as the number of bidders increase and yields tighten. “Larger pools continue to garner more attention and higher pricing. With current origination volumes going strong, we continue to see a handful of pools every day. Not much chatter about year-end transactions, but we anticipate originators taking advantage of this record year and cleaning up any stale inventory. The headwind on this is the disruption in the 3rd party due diligence landscape. The largest diligence provider has substantially paired back its number of clients, which could ultimately create a backlog with other diligence providers. Our recommendation is for originators to put any 2020 mistakes behind them and let’s start 2021 with a clean slate!”

Servicing packages continue to trade, and it is instrumental for originators to know the attributes in which buyers are interested. MIAC, Phoenix Capital, InCenter, RAMS Mortgage Capital, and others help make a market for packages. But here are two quick examples…

SitusAMC, as exclusive sale advisor, announced a $1.0 billion FNMA/GNMA bulk MSR portfolio opportunity that is being made available to the national market. The portfolio is composed of government and conventional fixed rate, 1^st lien product. Conventional loans have a weighted average qualifying FICO of 761 and weighted average original LTV of 79%. The weighted average interest rate is 3.40%, average loan size is $281,072 and the top states are Florida (24.7%), Texas (22.5%) and Ohio (14.5%). Government loans have a weighted average credit qualifying FICO of 702 and weighted average original LTV of 96%. The weighted average interest rate is 3.59%, average loan size is $293,044 and the top states are Texas (38.4%), Florida (27.1%) and Ohio (9.0%). Loan-level data is available upon request and written bids were due yesterday. (For any further information on other packages, contact Matt Maurer).

SitusAMC is also asking for written bids by Monday, November 23rd at 5pm ET on a $13.2 billion FHLMC/FNMA non-recourse servicing portfolio that is being made available on a select basis. Quality features of the portfolio include: 100 percent retail, fixed rate MSRs, weighted average credit qualifying FICO of 773 and weighted average original LTV of 71 percent, weighted average interest rate of 2.89 percent (2.94 percent on the 30-year fixed rate product), and no delinquencies and no forbearance loans as of marketing date. The top states in the pool are California (22.1 percent), Illinois (13.8 percent), and Massachusetts (12.7 percent), while the average loan size is $356,539. Loan-level data is available upon request. For any questions or further information, contact Matt Maurer.

Capital markets

Various global measures of business confidence improved in October; however some countries may begin to see a pull-back as increasing coronavirus cases have led some to impose new social restrictions. In the US, new claims for unemployment insurance continued their downward trend as they eased to 709,000 for the week ending November 7. However, new permanent layoffs have been observed as some companies are forced to restructure due to changes in consumer behavior and social mitigation. As of October 24th, 21,157,111 people were receiving some sort of unemployment assistance. The job openings rate and hiring rate did not change much from August to September. According to the Bureau of Labor Statistics, there were 2.0 unemployed persons per job opening on a seasonally adjusted basis. This is down from a peak of 4.6 in April and improving quickly compared to the previous recession. Declining unemployment typically leads to improving home purchase activity. Mortgage purchase applications are up 22.5 percent on a four-week moving average basis from one year ago despite declining six of the last seven weeks. The rate for a 30-year fixed rate mortgage declined to 2.98 percent for the week ending November 6.

U.S. Treasuries and MBS rallied in curve-flattening fashion yesterday and the UMBS30 basis closed tighter, with the moves catalyzed by a poor jobless claims report that outweighed any news of renewed stimulus talk when the Senate returns from recess in Washington. Initial jobless claims rose when the figure was expected to decline, which will contribute to expectations for a slowdown in job growth in November.

The other big news yesterday was existing home sales increasing more than expected in October, the fifth consecutive month of positive sales gains and another reminder of the remarkable strength of the housing market in 2020. Total sales in October were up nearly 27% from a year ago, and the 6.85-million-unit sales pace was the highest since November 2005, reflecting robust demand for existing homes. The scant supply (currently 2.5 months) will be a pressure point that feeds higher prices going forward. And we have already seen some higher prices start to take shape, as the median home price came in at $313k an increase of 16% from a year ago. Though higher existing home sale prices will hurt the purchase power of first-time buyers and low-income buyers, it should bolster the prospects for new home sales. Finally, fixed mortgage rates in Freddie Mac’s Primary Mortgage Market Survey for the week ending November 19 hit new survey lows of 2.72% and 2.28% in 30-year and 15-year rates, respectively.

Today sees no real economic releases of note but markets do receive plenty of remarks from Fed Speakers, including Chair Powell, Richmond’s Barkin, Atlanta’s Bostic, Dallas’ Kaplan, and Kansas City’s George. Black Knight did report before the open that after falling by 273K (9%) over the past two weeks, its forbearance volumes edged slightly upward the week of November 17. There are about 2.77 million forbearances, representing 5.2% of all active loans, down significantly from the peak of 4.76 million in late May. Today’s MBS FedTrade purchase schedule sees the Desk conducting three operations targeting up to $6.7 billion, comprised of $1.2 billion UMBS15 1.5% and 2%, $3.5 billion UMBS30 2% and 2.5% and $2 billion GNII 2% and 2.5%. We begin the day with Agency MBS prices up/better a smidge and the 10-year yielding .83 after closing yesterday at 0.85 percent.

When butchers sold live poultry, a woman entered the shop looking for a turkey.

The butcher reached under the counter and pulled out the only turkey he had left, plopping the confused creature up on the counter.

When the customer indicated that the offered bird wasn’t big enough, the proprietor put it back under the counter, fluffed up its feathers and straightened them out, and returned it to the counter saying, “How about this one?”

“That one looks great” the customer replied, “In fact, I’ll take them both!”

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. The current blog is, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed 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 2020 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.)