News

Sep. 21: LO, AE jobs; fulfillment, investor products; mortgage fraud paper; Wells, PUF, BMO Harris personnel changes

When I spent an hour interviewing Angelo Mozilo on stage last week for the American Pacific Mortgage Summit, one of the issues we discussed was the competitive environment for lenders, and the evolution of the mortgage loan originator. Angelo, who is very much in command of his game, is a strong believer in the strength of the relationship that originators have with their clients, and the future that originators have in the lending industry. Lenders always have their eyes on the horizon, watching the changing competitive environment, and along those lines I penned a piece for the STRATMOR Group titled, “The Rise of the Credit Unions.”
 
Jobs & new positions
 
BankSouth Mortgage is seeking to hire an experienced mortgage banker who specializes in the suite of Fannie products with a specific focus on the Homestyle loan program. “With competitive rates, cutting-edge technology focused on serving the ‘on the go’ agent and client and a variety of financing options, BankSouth Mortgage is an excellent home to grow your personal loan production! Interested candidates should email joinus@banksouth.com.”
 
Athas Capital Group, in Non-Prime consumer, Business Purpose/N/O/O and Hard Money Bridge financing for over a decade, is searching for Wholesale Account Executives who want to be part of the Athas team and part of its growth. Contact Jeff Gray or Rob Mally. (More on Athas Capital below.)
 
It is with great excitement Cherry Creek Mortgage Company introduces Carrie Gusmus as its newest SVP of Production. Formerly a member of the Cherry Creek family from 2008 thru 2010, she’s back home to help grow the company on a national level. Carrie has extensive and successful experience in mortgage banking. Most recently she spent the last 5 years growing a multi-state area including Colorado, Nevada, California, Idaho, Kansas, and Nebraska. Carrie is extremely gifted and brings a large team of people including loan originators, managers, processors and marketing talent that are equally amazing. Stacey Harding, EVP-National Production Manager, states “As one of the premier Independent Mortgage Bankers, Cherry Creek Mortgage is elated to have a professional and leader of Carrie’s caliber join the organization to help grow on a national basis.  We are both thrilled and blessed to have Carrie on the team”.
 
The Consumer Direct division of one of the nation’s premier lenders, Angel Oak Home Loans is currently expanding into the Westlake/Thousand Oaks/Calabasas, Agoura Hills, CA area. Angel Oak Home Loans Consumer Direct division is seeking loan officers to sell and close conventional, FHA and VA residential home loans as well as the industry’s leading non-QM products. Angel Oak is growing this platform through on-line lead generation using paid search tools, social media marketing and a state-of-the-art lead distribution system, Velocify. Successful candidates for this role must possess excellent customer service skills, consistent work habits, and a proven history of meeting client expectations while achieving established company sales goals.  If you are interested in growing your career, please apply here or contact JP Meglio (818-606-7348) or Eric Iannamico (678-468-0576).
 
Lender products and services
 
What if you could achieve a fixed expense per loan fulfillment at a fraction of the current cost you pay today? Equilibrium Mortgage Solutions allows small and mid-size mortgage firms to have an end-to-end loan fulfillment AND a quality production Team with a cost of under $895 per loan without institutional headcount. If you are looking to fully Eliminate variable fulfilment cost, ask us about our low-cost efficient Fixed FTE team model. Equilibrium provides Opening, Underwriting, Closing and Post Closing Functions and Post Fund Quality Control Audits along with daily Client Status Reports. Equilibrium is a top-notch outsourcing solutions game changer with an outstanding price point. We are backed by years of experience and expertise. If you want to drive revenue and really grow your business, get back in balance with the Equilibrium Edge. Contact Paul Campbell (760-774-7704) for information.
 
Looking to finance your Non-owner-occupied borrowers with an end-Credit decision maker? SG Capital Partners, who offers solutions across the entire non-agency spectrum, is launching its Investor Select product! The program offers DSCR and No Ratio options up to $2MM and allows first time investors. Partner with SGCP to experience its superior client service including collaborative product development, specialized training for UW/Loan Officers and direct access to their senior credit team for loan structuring. Contact SGCP today to learn more!
 
As part of a financial institution that has been doing business for more than a century, Origin Bank’s Mortgage Warehouse Lending team understands the importance of a strong partnership built on security, trust and responsiveness. We believe in building relationships to better understand you and your business, so we can create a strategy for your success. Our agility in the rapidly changing marketplace improves efficiency, profitability and security for our warehouse lending clients. We creatively partner with mortgage bankers to custom tailor our services to meet your needs. Offering lines from $5 million to $60 million, Origin is unique in every way, from eMortgages to non-qualified mortgages to how we fund loans. To start a conversation, contact Ken Johnson (972-407-3429). Ken is ready to help you take your mortgage business to the next level. Meet him at the MBA Annual Convention and Expo! Member FDIC. Equal Opportunity Lender.
 
Brokers should know that “Athas Capital Group is *NOT* entering the Non-QM, Alt-A or Non-Prime space – that’s because we’ve been in Non-Prime consumer, Business Purpose/N/O/O and Hard Money Bridge financing for over a decade. Athas Capital has been a source for Wholesale loans which didn’t fit the DU/LP box during the ten years of low interest rate refinancing, or Jumbo loans that only a handful of investors offered to the Mortgage Broker. That’s what we do! As part of Athas Capital’s growth, we have recently opened our Orange County office in Newport Beach, headed by industry veteran Rob Mally. As a mortgage originator, call the company that never left the Non-Prime/Non-Owner Jumbo at 877-877-1477.”
 
Fraud, legal chatter, warnings
 
Putting aside next week’s Bill Cosby sentencing, and the evolving story of Brett Kavanaugh. There is mortgage-specific news.
 
Jonathan Foxx published, entitled “Mortgage Fraud Challenges: How to Catch a Crook.” “Tracking down fraud is tough and not for the faint hearted! When my firm conducts audits of the loan flow process, it is not unusual to find gaps – perhaps ‘chasms’ is a better word! – in a company’s procedures for managing the risk of mortgage fraud. Maybe I can’t stop these swindlers and shysters from doing what they do, but I can let my clients, colleagues, and industry participants know some of the lessons Lenders Compliance Group has learned in knowing how to identify and trap these tricksters and so I wrote the foregoing article, which comes with indexed sections, checklists, and guardrails. The paper is over twenty pages. For ease of reading, it contains internal links to its twenty-one sections. I get past the basics and go for the red flags, weak links, and conniving tactics. Then I provide valuable checklists and tools to identify, mitigate, reduce or remove such threats. “Mortgage Fraud Challenges: How to Catch a Crook” can be downloaded straight from our Articles webspace.”
 
And from North Carolina Maggie Bizzell reports that NC is seeing a surge in malicious email. “Malicious emails sent to the state of North Carolina increased more than 60 percent during the days leading up to the landfall of Hurricane Florence…Cybercriminals often take advantage of natural disasters such as hurricanes to solicit personal information illegally and to take advantage of vulnerable infrastructures, disaster victims, and volunteers. People should remain skeptical about any email solicitations they receive at home or work.” Her note went on to suggest taking the following steps to help stop cybercriminals. “Carefully look at email and web addresses since cybercriminals will make them look as legitimate as possible, often using variations of spellings. The URL may have a different domain, such as .gov instead of .net. Do not click on links in emails from anyone unless you know and have verified the sender of the email. Take time to look at the sender’s email address. Do not click on any links until you are certain the organization is real. Check the organization’s website for its contact information and use sites such as www.charitynavigator.org to verify a charity organization. Make sure your all anti-virus software is up to date and that you have enacted the anti-phishing software provided by your email client. Phishing emails and phone calls may also try to pose as official disaster aid organizations such as FEMA. A true FEMA representative will never ask for personal banking information, a Social Security number, or a registration number.”
 
SafeChain is planning to integrate the National American Land Title Association Registry into its real estate wire fraud prevention platform SafeWire™. Through the integration, mortgage lenders will be able to search the Registry and verify the identity of title insurance agents and settlement companies, providing an enhanced level of efficiency and security to the real estate transaction. ALTA launched the ALTA Registry in 2017 as the first national database of title insurance agents and settlement companies.  “The national ALTA Registry is a unique real estate utility created specifically for mortgage lenders,” said Paul Martin, ALTA’s Registry Director. “We’re pleased to offer this tool to SafeChain as it looks to deliver innovative products to its customers. The emergence of the ALTA Registry as an effective and easy to use source of data and information comes at the perfect time to help counter the alarming increase in wire fraud.”
 
A while back House Financial Services Committee Chairman Jeb Hensarling and Oversight and Investigations Subcommittee Chairman Ann Wagner announced that they plan to hold a joint hearing no later than Thursday, September 27, as part of its ongoing investigations into various allegations of waste, fraud and abuse at the FHFA and the housing GSEs. Current FHFA director Mel Watt and Fannie Mae CEO Tim Mayopoulos have both been asked to testify.
 
Company changes
 
On the heels of Pacific Union shuttering its remaining retail lending group earlier this week comes news that Wells Fargo plans on laying off 5-10% of its workforce of 265,000.
 
And BMO Harris Bank is “eliminating most mortgage loan officers who meet customers face to face and now directs people who want to buy a house or refinance to its centralized mortgage call center. The Chicago-based bank…said the move — and a new online mortgage application platform coming soon — reflects changing customer behavior trends and actually offers time and ease benefits for mortgage applicants.”
 
Capital markets
 
As I’ve mentioned, as we approach the end of the third quarter, expectations for quarterly economic growth remain in the moderate-to-strong range as the labor market and business activity continue to show improving conditions. August payrolls showed an increase of 201,000 jobs but revisions to the prior two months reduced the total three-month gain by 50,000.  Hourly earnings increased 2.9 percent year-over-year; the highest 12 months increase during the current economic expansion. Both the ISM manufacturing and non-manufacturing indices remain in strong territory despite concerns that tariffs and potential trade wars will have a negative impact on US businesses. Initial claims for unemployment fell to 203,000, a level not seen since 1969. On the negative side, the trade gap widened from $ 45.7 billion to $50.1 billion in June as exports dropped and imports increased. If this trend continues, trade could have a negative impact on Q3 GDP growth vs. the positive impact it had in Q2. The next FOMC meeting is rapidly approaching and the markets expect another 25-basis point increase to the fed funds range to be announced at its conclusion. Given the recent data as well as the rhetoric coming from Fed officials isn’t much to alter opinions at this time. 
 
The U.S. 10-year dropped 1bps to 3.08% at yesterday’s close as most Treasuries rebounded from a recent wave of selling. China is said to be planning to cut the average tariff rate it charges on imports from most of its trading partners as soon as next month. We had a string of b-list news fill the day, starting with Japan’s Prime Minister Shinzo Abe winning the LDP leadership election, which puts him on track to be Japan’s longest-serving prime minister. Existing home sales were unchanged month-over-month in August with inventory stabilizing, implying that there could be some moderation in the pace of price increases.
 
Today’s calendar is light, consisting of just final September Markit PMI at 10:00am ET – it won’t move rates. Both manufacturing and services PMI are expected to rise. Next week’s scheduled news is light, with the headline being the Fed meeting on Wednesday. Rates aren’t dramatically different from last night’s close: the 10-year is currently yielding 3.07% and agency MBS prices are down/worse a few ticks.
 
 
Brain Teaser – no using that internet thing to solve.
What common English word has the letters "WSP," in that order, without any letters between? (No need to send me the answer.)
(Hint: my grandfather saved several from WWII while my Dad was in the Navy.)
 
 
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, “The Rise of the Credit Unions.” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
 
Rob
 
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
 

Sep. 20: Sales & LO jobs; vendor mgt. & POS products; upcoming events; Ask a Lender’s sunset?

This Saturday is the autumn equinox – season-wise, we know what is on the way. “Rob, we, like everyone else, are watching the approaching winter, and higher rates, and wondering if there are ways to improve our financial picture without laying people off or cutting LO comp. Heard of anything?” This is going to sound like a paid ad, but it is not. I refer folks to Riivos (ex-Alight). It’s a cloud-based application for mortgage companies, regardless of size, that “integrates with your core systems (G/L, LOS, payroll, etc.) to show where your BPs are going, what actions you can take to improve profitability, and insight into how those decisions ripple through the company and increase P&L.” They specialize in “what if” scenarios. IMHO, and my words, not theirs, if using that keeps you from laying one shipper or post-closing doc person off, isn’t it worth it? (Contact Mike McFadden, Managing Director.)
 
Jobs & promotions
 
“Would you like the opportunity to sell the most disruptive technology in the mortgage industry space? If you are self-motivated, a team player, able to communicate clearly, and have sales and mortgage experience, Indecomm Global Services wants you. Indecomm is looking to hire a dynamic Sales Director to represent Indecomms SaaS technology platforms. If this sounds like something you are interested in, please email your resume to Linda Bomar.”
 
Roostify, one of the fastest growing fin-tech companies in the country, is expanding its team and looking for a Client Success Manager to interface with clients, ensuring they are successful with and delighted by Roostify. From the company’s CEO, Rajesh Bhat, "It’s an exciting time to be at Roostify. We’ve rolled out at several top-tier national lenders, we’re expanding our platform capabilities to improve more parts of getting a loan, and we’ve just raised a $25M Series B with a round of prestigious investors to help us accelerate our growth and further capitalize on a fantastic market opportunity. We’re looking for creative, passionate people to help us get there." Apply directly through the website, or contact Roostify‘s Head of Recruiting, Ashley Burnstad.
 
Planet Home Lending, LLC’s new digital mortgage assistant, Skymore by Planet Home Lending™ speeds borrowers through the home loan process, freeing mortgage loan originators to focus on giving advice and counsel. The mobile-friendly app lets borrowers apply from any device, asks them only relevant questions, lets them share their screen with MLOs/processors, retrieves and submits financial statements, and provides loan status 24/7. MLOs and processors love that it sends a conditions list, ensures a complete application, and that borrowers can security send document images from their phones.” To find out how you can join Planet and get Skymore by Planet Home Lending™, call 888-792-8480 for a confidential consultation or email joinus@planethomelending.com.
 
“Top producers like you don’t go to work every day to lose money. Nor do you put in the work knowing that your efforts mean nothing. High producing MLOs and branch managers ENJOY working at Assurance Financial because they close more loans with the same amount of effort they were giving before, and they feel like their efforts are valued. Just ask one of our Senior Loan Officers: ‘I don’t even know what another company could say to recruit me away from Assurance. It’s a dream job in my opinion.’ That’s an actual quote from one of our senior MLO’s- and that could be you. Assurance Financial is a growing private full-service residential mortgage banker with offices throughout the South, East Coast, and the Midwest, and we may be just what you’re looking for.” Contact Paul M. Peters, CMB, (225-939-6353) for a confidential discussion today.
 
Lender products & services
 
Caliber Home Loans, Inc. CEO Sanjiv Das is a seasoned veteran of the mortgage industry, whose background includes over 30 years in financial services and executive leadership during the 2008 financial crisis. In an op-ed he penned this week, Das writes about his experience as a mortgage banking executive at the time and revisits the lessons he believes the industry has learned since then – and should remember in today’s challenging market. He says in the article, "With mortgage applications declining, executives have a choice to make: Should underwriting standards be lowered? When volume becomes the defining metric for how loan officers and mortgage companies get paid, then loan quality deteriorates — and we’ve seen how that movie ends. We in the industry should be mindful not to take shortcuts or return to suspect practices. Those who managed through the great financial crisis won’t have to think twice about making the right decision."
 
Think you can’t afford an effective vendor management program? Think again! MQMR and HQVM executives Michael Steer and Erin Harris outlined several cost-effective strategies lenders can employ to improve their current vendor management program in a recent edition of MBA Insights. With the right combination of people and technology in place, MQMR’s vendor management division HQVM has helped lenders of all sizes across the nation create and execute vendor management programs that address their unique risk level while remaining in line with their budgetsReady to address your vendor risk? Representatives from MQMR and HQVM will be at next week’s MBA RMQA Conference and MBA Annual in October. Reach out to sales@mqmresearch.com to schedule a time to meet.
 
Looking for a Digital Mortgage PoS that doesn’t require up-front integrations or high monthly minimum costs? Lendsnap has now made their all-in-one Digital Mortgage point-of-sale system accessible to brokers and lenders just like you. Get started right away with our simple solution that includes an intelligent 1003, powerful eSignatures, and automatic import of bank statements, W2’s, pay stubs, and more. Lendsnap gives your clients a single place to apply, turn in documents and sign disclosures and consents on desktop or mobile devices. We can make you Day 1 Certainty Ready™ without changing how you underwrite. Lendsnap replaces many of the apps you pay for separately today and drops in to your existing workflow without complicated and costly integrations. Request a demo today to go digital with Lendsnap
 
Lender events
 
Todd Duncan’s Sales Mastery Event in San Diego is less than three weeks away! Have you registered yet? Because when you attend Sales Mastery, what you’re really saying is… 
I AM committed to being my best version of me! I AM going to sharpen my skills! I AM going to add more value to my partners and borrowers! I AM going to be a GAME CHANGER in this industry! Make the commitment to be your best! Click here to register for Sales Mastery today and be entered in to win a one-year coaching contract valued at $14,000!
 
Is Lender Innovation Staying Ahead of Consumer Expectations? A recent survey of U.S. lending executives shows most lenders believe their company is more innovative than other companies. This raises critical questions: are lenders properly defining innovation? And are they comparing their innovation only to other lenders, or to other consumer companies that might one day become lenders? This must-attend webinar on 9/27 will explore the lender innovation curve running in parallel with the ever-increasing consumer expectations in the Amazon/Uber era. The discussion will be led by Julian Hebron, exec alum of loanDepot and Wells Fargo, and founder of The Basis Point, a sales/brand consultancy to the country’s top fintech innovators. Joining him is Joshua Tatum, exec alum of SoFi and head of product development at Guaranteed Rate. Registration is now open. 
 
MBA Education and MISMO are joining forces to host a webinar series providing institutions a roadmap for moving from paper to digital. Starting on October 2nd and wrapping up on October 4th, part I and II of the series will focus on the production and "e-closing" aspect of digital mortgages. Presenters will speak to what exactly an eClosing is and lay out a checklist for things you and your staff need to consider too help you move from pre-closing to post execution. Practitioners from lenders, document management firms, and eClosing platform providers will also be on hand to provide real world scenarios that they have encountered and recommendations on how to address potential challenges head on.
 
Don’t forget to register for the Colorado Mortgage Summit on Tuesday, October 2nd. With an incredible lineup of educational sessions, business opportunities, and networking events, it is curated specifically for the entrepreneurial men and women of the Colorado mortgage industry. 
 
Vendor exit?
 
Ask a Lender is going on hiatus. This is the hardest message we’ve ever had to share, but after long consideration and analysis of our network, Ask a Lender has decided to cease operations as of October 31, 2018 to re-evaluate the platform and focus on business development. First, we want to thank you for your business, your support, and most of all your trust. We helped thousands of borrowers connect directly with lenders and none of it would have been possible without your support. Any current advertisers on Ask a Lender will receive a pro-rated refund. Refunds will be automatically processed with a cancellation date of September 19, 2018. Advertisers can expect to receive a message with the exact amount of their refund along with the card information that it was refunded to…”
 
Capital markets
 
The U.S. economy is not doing poorly, so there isn’t much reason for long rates (like those that determine mortgage rates) to drop. But recently, Fed speakers have been reiterating the word “gradual” in their descriptions of the current approach to monetary tightening. The dual mandate from Congress dictates that the Fed should work to promote maximum employment as well as stable prices. Keeping those goals in mind, Fed president Jerome Powell has noted that the key risks of raising interest rates during an expansion are increasing too fast whereby you cut the expansion short or raising too slow and allowing uncontrolled inflation. This has led to the current 25 basis point increase in the Fed Funds rate at every other FOMC meeting and the expectations for two more increases to round out the year. But what about 2019 and beyond? The US economy accelerates and decelerates and rarely runs at the same steady consistent pace for prolonged periods. The current pace of job growth, which has driven the recent economic acceleration, is unlikely to be maintained through 2019 as there are currently more job openings than unemployed workers. Higher interest rates and labor shortages may eventually constrain the economy as business will have to spend more to keep expanding production. The Federal Reserve will likely need to slow the pace of rate hikes next year as it reaches the peak fed funds rate for this expansion. 
 
To the surprise of no one rates have moved up, and Wednesday saw a continuation of a curve-steepening trade that has kicked in this week, led by the back end. It has the “Oh my gosh, we’re heading toward an inverted yield curve” pundits mum. Longer-dated securities, which are more inflation-sensitive, paced Wednesday’s retreat which saw the 10-yr yield (3.08% yesterday) and the 30-yr yield flirt with their highs for the year.  The 10-2 spread, which began the week at 21 basis points, now stands at 27 basis points, up from 26 basis points on Tuesday.
 
For scheduled releases this morning we’ve had initial jobless claims (201k, 48 year low – labor market is tight) and the Philadelphia Fed Manufacturing Index (+10 to 22.9, whatever that means). Coming up are August existing home sales and leading indicators. Rates begin Thursday up versus last night: the 10-year is yielding 3.09%, agency MBS prices are worse a solid .125.
 
 
A farmer had 5 female pigs. Times were hard, so he decided to take them to the county fair and sell them. At the fair, he met another farmer who owned 5 male pigs. After talking a bit, they decided to mate the pigs and split everything 50/50.
The farmers lived 60 miles apart, so they decided to drive 30 miles each morning and find a field in which to let the pigs mate.
The first morning, the farmer with the female pigs got up at 5 a.m., loaded the pigs into the family station wagon (the only vehicle he had) and drove the 30 miles.
While the pigs were in the field mating, he asked the other farmer, "How will I know if they are pregnant?"
The other farmer replied, "If they’re lying in the grass tomorrow morning, they’ll be pregnant. If they’re lying in the mud, they’re not."
The next morning the pigs were rolling in the mud. So, he hosed them off, loaded them into the family station wagon again and proceeded to try again.
This continued each morning for more than a week and the farmers were worn out.
The next morning, one was too tired to even get out of bed. So, he called out to his wife, "Honey, please look outside and tell me whether the pigs are in the mud or in the grass."
"Neither," yelled his wife, "They’re in the station wagon. And one of them is honking the horn."
 
 
 
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, “The Rise of the Credit Unions.” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
 
Rob
 
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
 

Sep. 19: LO, reverse jobs; new correspondent investor; direct streaming Treasury trading; what is moving rates

I received this question from a well-known lender in Texas. “Rob, our company views loan processors as the unsung heroes of lending. We’re evaluating how ours are paid. Any thoughts?” The STRATMOR Group does quite an industry survey, and its recent data shows that the overwhelming majority are paid some incentive, and that their base salary is about ¾ of their total comp. The incentives are either a per loan payout, the achievement of certain objectives, or miscellaneous company-specific items. (For more details about the STRATMOR survey, or other mortgage occupation comp plans, shoot Partner Nicole Yung an email.)
 
Employment
 
Congratulations to HomeStreet Bank, one of the largest community banks in the West, for claiming the No. 1 market share for purchase-loan volume in the Puget Sound (Greater Seattle area), Napa (CA), Vancouver (WA), Spokane (WA) and Kennewick (WA) for July, according to publicly recorded data. This is just one of many accomplishments, including being rated in Scotsman Guide as the 13th largest retail mortgage lender nationally in 2017, and recently being named by Fortune as one of the fastest-growing companies. The national recognition is especially impressive given the Bank’s smaller footprint in the western states. HomeStreet’s product diversity, credit expertise and get-it-done philosophy is what enables loan officers to diversely serve markets in Washington, California, Oregon, Idaho, Hawaii, and bordering states. Almost a century of mortgage lending expertise coupled with a culture that is fiercely committed to serving customer needs creates an enriching space for loan officers and those they serve. HomeStreet has growth opportunities for originators drawn to this culture. If you’d like to hear more about how you and your customers would benefit from HomeStreet’s platform, contact Natalie Overturf, SVP Retail Production.
 
Movement Mortgage continues to expand its digital mortgage toolbox, this week announcing EasySign, a new capability empowering borrowers to sign most loan documentation electronically before closing from the convenience of home on a tablet, laptop or desktop computer. As borrowers demand a high-touch, high-tech digital mortgage experience, Movement is committed to developing more tools and resources that improve the borrower and agent experience, boost LO productivity and create a simpler, smarter, faster mortgage process. Learn more about a career at Movement at https://movementlo.com/.
 
American Advisors Group (AAG) (NMLS# 9392), the #1 reverse mortgage lender, recently announced its conversion to a holistic sales model allowing AAG Mortgage Planning Professionals (MPPs) to offer both traditional and reverse mortgage loans. Under this new product suite, AAG MPPs can present senior homeowners in their local market with a wide range of options, making AAG a one-stop solution. “There is no other U.S. company solely focused on helping seniors broadly utilize their home equity to improve their financial outcomes in retirement,” said AAG CEO Reza Jahangiri. AAG is moving from a monoline product company, selling only reverse mortgage loans, to a home equity solutions business offering a full suite of products and services, putting AAG in a “category of one.” Are you interested in bringing this diverse portfolio of products to your local market? Would you like to join AAG’s category of one? Join the team at AAG!
 
“ATTENTION LOAN ORIGINATORS GETTING PAID 100-150 BPS: Are you ready to double your income? The Mortgage Right platform allows Loan Originators to step into the additional compensation structure of a P&L branch manager! If you’re getting crushed on pricing, check out our lower rates: lower rates + better pricing = a pay raise for you! Plus, you’ll have all the training, help and coaching that you need to achieve REAL success. You owe it to yourself to take the best opportunity that’s available to you. Start your own P&L Branch today! Give us a call at 866-228-7703 or visit us online here to see how easy it can be to start keeping the good money that others are making off YOUR production. Don’t cross someone else’s finish line!”
 
Lender products and services
 
 Calling out to all credit unions: LendingQB will be at the ACUMA Annual Conference next week in Las Vegas talking about digital mortgages and how understanding member satisfaction with their new integration to STRATMOR’s MortgageSAT drives up mortgage volumes and cross-selling opportunities. LendingQB will also discuss how their integration to MeridianLink’s LoansPQ consumer lending LOS (LendingQB is a business unit of MeridianLink) offers banks and credit unions a bundled solution for all their member and customer financial needs, including vehicle, credit card, home equity and 1st mortgage lending. Contact Linn Cook, Director of Sales and Marketing at lncook@lendingqb.com to learn more.
 
A Fannie Mae and Freddie Mac Seller/Servicer and Ginnie Mae issuer, approved in 46 states, 11 MORTGAGE offers a full line of products which include VA, Co-Ops, Non-QM, CalHFA, Jumbo, to name a few. 11 MORTGAGE is taking mortgage brokers/bankers experience to a whole new level! No agency Overlays… NONE! 4hours CTC to Docs… GUARANTEED! 11 minutes funding turn time…NO JOKE! We also manage our own appraisal panels (no AMCs). We are looking for champion AEs ready to accelerate their growth. We offer: wide open territories, wholesale and emerging banker channels, direct access to assigned underwriters, after hours rate lock protection, aggressive compensation, and much more… If you want to double your production and your territory with an exclusive organization that provides the industry’s best customer service contact 11 MORTGAGE EVP of wholesale’s Thomas Michel. Sales managers with successful teams are also encouraged to reach out.
 
Floify’s industry-leading digital point-of-sale solution continues to make HUGE waves in the mortgage world – especially after the recent release of its game-changing, interview-style 1003 loan application and brandable landing pages. With these latest enhancements, and more on the way, Floify is poised to make LOs who use the platform to run their mortgage operation more profitable and productive than ever. Just ask Calum Ross, Canada’s $2.5 Billion Dollar Man and avid Floify user, who recently said, “I signed up for Floify in 2015. In the last two years, I’ve averaged over $165 million in personal production and never emailed a client for documentation. The $50 monthly subscription cost contributed to my revenue of over $100,000 per month.” Now, what are you waiting for? To experience the ROI-generating power of Floify for yourself, request a demo today!
 
Non-QM will again be a hot topic at MBA Annual in October.  While conventional lending faces the headwinds of higher rates and lower margins, non-QM continues to move ahead at full sail. The opportunity to serve millions of creditworthy borrowers who don’t fit traditional credit guidelines is an opportunity today’s growth-minded lenders don’t want to miss. Verus Mortgage Capital is a correspondent investor committed to helping lenders grow their businesses with responsible non-QM lending. Now’s the time to learn how non-QM can help expand your business. Email Jeff Schaefer today or schedule a meeting with him at MBA Annual. 
 
Capital markets
 
Yes, rates have moved up. Is that a surprise to anyone? Shouldn’t be. Are you hoping tariffs hurt our economy and push rates back down? Don’t hold your breath. So, what should we know about why rates are doing what they’re doing? Any reason for rates to fall? Not really.
 
Last week (9/10-9/14) economic data showed year-over-year inflation, strong business optimism and labor markets, but soft retail sales. PPI for August was down 0.1 percent for the month, however was up 2.8 percent over the previous twelve months due mostly to rising oil prices.  The year-over-year gain is below the recent high in June of 3.4 percent.  CPI was up 0.2 percent in August and 2.7 percent over the last year also due mostly to increased energy costs.  The National Federation of Independent Business reported their Small Business Optimism Index at 108.8 in August, a record high for the 45-year history of the index. The JOLTS report showed that hiring remains robust and quits are still high. “High quits” are a sign of confidence in the job market from laborers. Initial jobless claims continue to slide to very low levels at 204,000. The loan negative from the week was in retail sales which disappointed with a 0.1 percent gain in August after posting a 0.7 percent gain in July. 
 
Going back a little farther, economic indicators remain positive and point to continued growth in the third quarter. The trade tensions with China remain at the forefront of the news, but to date there has been little evidence of a negative effect from the tariffs. Should things continue to escalate one would expect more measurable impacts to flow through to the data. July’s payrolls posted another month of gains and May and June were revised upward while the unemployment rate eased to 3.9 percent. Average hourly earnings were up 2.7 percent on a yearly basis, however the Consumer Price Index increased 2.8 percent over the previous twelve months ending in June so most workers are not seeing real increases in incomes. The trade gap widened by $3.2 billion in June as exports eased and imports of goods increased by $1.4 billion. Auto sales eased in July to a 16.8 million rate from 17.2 million in June and are expected to continue to decline over the next year. We all know that the FOMC kept the Fed Funds target even after its last meeting and recent data has not altered markets expectations for an increase after the September meeting.  
 
Economists believe that the economy is heading towards a “positive output gap.” An output gap is a signal that the economy is not operating at maximum efficiency and a positive output gap indicates excessively high demand which, in turn, spurs inflation as labor costs as well as the prices for goods increase as a response to increased demand. The Employment Cost Index reported that compensation costs for civilian workers increased 2.8 percent on a year-over-year basis in June, the largest annual increase since 2008. The ISM Manufacturing index remains in expansion territory with at a level of 58.1, however comments from the respondents highlighted concerns about the current trade environment. Payrolls data continues to be positive and the broad U-6 measure of unemployment, which counts those currently working part-time for economic reasons as well as those marginally attached to the workforce, reached its lowest level since 2001. All this is to say that the data hasn’t given the markets any reason to suspect that the Fed will increase or decrease its pace of interest rate increases as we move through the rest of the year.
 
The US economy accelerates and decelerates and rarely runs at the same steady consistent pace for prolonged periods. Many think that the current pace of job growth, which has driven the recent economic acceleration, is unlikely to be maintained through 2019 as there are currently more job openings than unemployed workers. Higher interest rates and labor shortages may eventually constrain the economy as business will have to spend more to keep expanding production. The Federal Reserve will likely need to slow the pace of rate hikes next year as it reaches the peak fed funds rate for this expansion.
 
Trading of US Treasury securities is shifting to direct-streaming venues from electronic platforms to avoid minimum spread sizes and high platform fees. The alternative venues represent only about 10% of the market, but experts say the shift is gathering momentum
 
As I mentioned yesterday, a tariff will be imposed on $200 billion worth of imports from China, starting September 24. The tariff will begin at 10.0% but will increase to 25.0% on January 1. Chinese officials have already indicated plans to retaliate, which is expected to trigger the imposition of a tariff on another $267 billion worth of imports from China. That news was enough to shoot the U.S. 10-year up to 3.05% as of yesterday’s close. Interestingly, the U.S. Treasury sold four-week bills at a yield above 2.000% for the first time in a decade. Finally, on the international front, Japanese officials are expected to offer measures to reduce Japan’s trade surplus with the United States to avoid tariffs on auto exports.
 
Looking at today, we have already had last week’s read on residential applications (up for the first time in a month, +1.6%, refis +3.7%). Markets will soon digest the Q2 current account deficit (shrank to $101.5 billion) along with August housing start (+9.2% – strong, mostly due to multifamily action) and building permits (falling 5.7% – disappointing). Rates are a shade better than last night’s close with the 10-year yielding 3.05% and agency MBS prices a couple ticks better.
 
 
In honor of it being Talk Like a Pirate Day, Eric D. sent along:
What’s a pirate’s favorite fast food chain?
Arrrrrby’s.
What’s a pirate’s favorite sock style?
Arrrrrgyle.
What’s a pirate’s favorite periodic table element?
Arrrrgon?
No, you fool, it’s gold! Har har!!!!!!!
 
And there’s this classic; don’t read if offended by corny jokes about the male anatomy.
A pirate walks into a bar with a steering wheel on his pants, a peg leg and a parrot on his shoulder. The bartender says, "Hey, you’ve got a steering wheel on your pants."
The pirate says, "Arrrr, I know. It’s driving me nuts."
 
 
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, “What Does Affordable Housing Mean? If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
 
Rob
 
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
 

Sep. 18: LO jobs; down payment, broker, sales products; lender & agency Florence updates continue

TRID 2.0: mandatory compliance on 10/1 is only a few weeks away. Temenos has a primer on it, as does Qualia. The MBA had a piece on it. The NY MBA has a webinar next week. In Michigan the MMLA has a seminar on it this week. Hopefully everyone’s up to speed already.
 
Jobs & new positions
 
GSF Mortgage Corporation announced it has selected award winning technology provider PromonTech as vendor of choice for their point of sale lending portal solution. By partnering with PromonTech, GSF Mortgage Corporation will deliver a more modern and exceptional experience for customers.  Implementing this new, all-in-one portal for customers to use during their mortgage process, provides a consistent, intuitive and collaborative experience on any device. The originator experience is also upgraded. The new pipeline manager and borrower collaboration tools streamline our processes and brings our sales team closer to their customers with less effort. Interested in a retail opportunity, contact Chad Jampedro.
 
Top producers like you don’t go to work every day to lose money. Nor do you put in the work knowing that your efforts mean nothing. High producing MLOs and branch managers ENJOY working at Assurance Financial because they close more loans with the same amount of effort they were giving before, and they feel like their efforts are valued. Just ask one of our Senior Loan Officers: “I don’t even know what another company could say to recruit me away from Assurance. It’s a dream job in my opinion.” That’s an actual quote from one of our senior MLO’s– and that could be you. Assurance Financial is a growing private full-service residential mortgage banker with offices throughout the South, East Coast, and Midwest, and we may be just what you’re looking for. Contact Paul M. Peters, CMB (225-939-6353) for a confidential discussion today. 
PrimeLending is excited to welcome Brian Miller as the new VP, Sales Recruiting. Brian is hitting the ground running, bringing 20 years of recruiting experience and more than 15 years of mortgage industry expertise to his new position. At PrimeLending, he’ll play a pivotal role in the company’s branch expansion initiative by partnering with senior production managers to help identify and recruit top producers nationwide. “We have an amazing story to tell at PrimeLending,” he said. “We’re a proven leader in the industry committed to growing market share through investing in our retail channel. I can say with confidence that PrimeLending offers loan originators the best environment in which to achieve success.” Prior to PrimeLending, Brian worked at Countrywide, Bank of America, MetLife and Stearns Lending. If you’re a top producer looking to secure your future, contact Brian (469.737.5729).
 
Fannie Mae announced that Manuel “Manolo” Sánchez Rodríguez has been elected to the Board of Directors. Mr. Sánchez served as Chairman and CEO of Compass Bank, Inc., a U.S. subsidiary of Banco Bilbao Vizcaya Argentaria, S.A., and is a banking, financial services, and technology expert.
 
Lender products & services
 
Stearns Wholesale helps brokers grow and brand their business with social media. Marketing Tools for SNAP 2.0 now offers Social Media Graphics for our most popular products and services. This marketing portal allows you to create personalized marketing pieces to help you extend your reach, grow your customer base and brand your business. Customizable flyer and social media templates can be personalized for both business-to-business and consumer relationships. It’s Easy! We provide the flyers and graphics, with over 4,000 combinations available, then you add your logo and personalized information. Stay top of mind with your borrowers by providing relevant information to print on marketing flyers or social graphics to post on Social Media. Learn more about Marketing Tools for SNAP 2.0 here.
 
Texas State Affordable Housing Corporation (TSAHC) has a new 5% down payment assistance product that offers a much lower interest rate on our HFA Preferred Conventional loans. The down payment assistance will be in the form of a repayable second lien with 0% interest and no monthly payments.  Contact your Lakeview Business Development Director, or email TSAHC, or visit TSAHC Homebuyer Programs for more information.
 
VirPack announced its latest integration with Calyx Software. The integration enables Point and PointCentral customers to leverage VirPack’s virtual file automation capabilities including: multiple methods of document capture, automated indexing with OCR, and rule-based workflow capabilities. With VirPack’s one-click electronic loan delivery, Calyx customers also gain the ability to quickly and precisely deliver loan files and data electronically to investors, HUD for FHA insuring, servicers, subservicers, QC firms and MI companies. “The positive reaction we have received from Point and PointCentral customers validates that our integration delivers increased productivity and efficiency without major IT and operational disruption,” said Wayland Pond, Chief Business Development Officer of VirPack. “Using best-in-class virtual document management and workflow technology will enable Calyx customers to fund more loans with the same staff and meet the competitive challenges of driving down per loan costs.” Contact Kelli Himebaugh, Director, National Sales (703-996-4894) to learn more.
 
Join Regions Bank, First Tennessee Bank and Total Expert on a complimentary webinar on Sept. 19 from 1:30 – 2:30PM CT: Building Sound and Sustainable Sales Practices. These industry leaders will share their insights on best practices for banks to drive revenue and increase customer retention in today’s competitive market. Explore new approaches and techniques for sales executives and learn how to drive success across multiple lines of business. Understand how digital migration is redefining the relationship between
marketing and sales and how to empower producers to build customers for life and boost sales capabilities with a focus on relationship building. Listen as industry veterans share their knowledge on the technology and techniques needed to improve sales outcomes and drive growth in a challenging market. If you cannot make the webinar tomorrow, register here and a recording will be shared following the live event.
 
Exciting news from the Digital Mortgage Conference in Vegas yesterday as Maxwell announced its groundbreaking new mortgage product, Maxwell ApplyID™ API. Maxwell ApplyID™, with consent from the borrower, gathers the borrower’s information from its network of data providers to pre-populate fields in the loan application, filling in personal information, employment history, income, real estate owned, financial assets, and more. This new API enables clients to receive a completed Fannie Mae 3.2 file with minimal effort from the consumer. This is just one more innovative step forward from an industry-leading player in the digital mortgage space. Maxwell’s Point of Sale platform is a must-see for small- to mid-size lenders looking for a digital mortgage solution that will enhance and evolve the human relationship between borrower and loan officer. To learn more about Maxwell or request a personalized demo for your business, click here.
 
Disaster updates
 
Create an inventory of personal and household valuables and use photo or video documentation to help assess their value and determine replacement costs. Contact your insurance agent or visit the Federal Emergency Management Agency’s (FEMA) website, www.fema.gov, to determine if you need a flood insurance policy. FEMA also offers a guide with checklists to help prepare for emergencies and natural disasters. For more information on crisis preparedness, visit ICBA’s website.
 
As FEMA publishes impacted counties per the declaration of a state of emergency in North Carolina, South Carolina and Virginia, clients and Pacific Union employees continue to be responsible for monitoring the FEMA Website, their lending areas and pipeline, and ensuring impacted properties meet agency, investor and Pacific Union requirements.
 
Fannie Mae posted reminders for those impacted by Hurricane Florence of the options available for mortgage assistance. Under Fannie Mae’s guidelines for single-family mortgages, Homeowners impacted by Hurricane Florence are eligible to stop making mortgage payments for up to 12 months, during which time they: will not incur late fees during this temporary payment break, will not have delinquencies reported to the credit bureaus. Servicers are authorized to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days without any contact with the homeowner if the servicer believes the homeowner has been affected by a disaster. Homeowners can reach out to Fannie Mae directly by calling 1-800-2FANNIE (1-800-232-6643). (Click the link for all details.)
 
Freddie Mac has issued a reminder to Servicers of its disaster relief policies for borrowers who have been affected by Hurricane Florence. Freddie Mac’s disaster relief options are available to borrowers whose homes or places of employment located in presidentially-declared Major Disaster Areas where federal individual assistance programs are made available to affected individuals and households. Areas where FEMA has not yet made individual assistance available, mortgage servicers may immediately leverage Freddie Mac’s short-term forbearance programs to provide mortgage relief to their borrowers that have been affected by the hurricane. A list of these areas can be found on the FEMA’s website.
 
FHA issued a reminder to mortgagees about its guidance for originating and/or servicing FHA-insured forward and reverse mortgages in locations in the U.S. and its territories when the President declares it a major disaster area. FHA-insured mortgages secured by properties in a PDMDA are subject to a 90-day foreclosure moratorium following the disaster. FHA-insured reverse mortgages (HECMs) that become due and payable for reasons other than the death of the last surviving borrower and eligible nonborrowing spouse are subject to a 90-day extension of HECM foreclosure timelines. In PDMDAs only, HUD provides mortgagees an automatic 90-day extension from the date of the foreclosure moratorium expiration date to commence or recommence foreclosure action or evaluate the borrower under HUD’s loss mitigation program.
 
Recall that Hurricane Harvey influenced material prices, especially if the materials are byproducts of natural gas processing and crude oil refining. Homebuilders saw an increase of 5.6 percent in the cost of raw materials year over year in November, marking the largest rise since 2011. One of the main factors in the cost has been the increase in the price of softwood lumber of 17.4 percent year over year, which is used for framing and other structural applications. The rise in price coincided with a renewal of tariffs on Canadian lumber that had previously expired in 2015. Other building materials such as roofing asphalt and plastics products have been affected by an increase in natural resource prices after remaining flat or seeing declines over the last couple of years.
 
PennyMac Correspondent Group has posted a Hurricane Florence Disaster Policy announcement.
 
Plaza Home Mortgage has reinstated loan funding in the state of Maryland. There is no change to the suspension in funding for South Carolina, North Carolina and Virginia at this point. As it actively monitors Hurricane Florence Plaza will provide notifications of any other changes in its operations.
 
Mortgage Solutions Financial posted an announcement regarding the Hurricane Florence- Temporary Funding Suspension.
 
AmeriHome suspended loan purchase activities. Counties included in the temporary funding suspension are indicated by National Hurricane Center maps as potentially sustaining substantial damage when Hurricane Florence makes landfall, and in the days following. Many of these counties are currently under mandatory evacuation orders.
 
Ditech Approved Correspondent Clients: Due to the potential impact and current path of Hurricane Florence, Ditech is suspending the funding of all loans in the following counties: North Carolina Beaufort, Brunswick, Camden, Carteret, Chowan, Craven, Currituck, Dare, Hyde, Jones, New Hanover, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Tyrrell and Washington. South Carolina Beaufort, Berkeley, Charleston, Chesterfield, Colleton, Darlington, Dillon, Dorchester, Florence, Georgetown, Horry, Jasper, Marion, Marlboro and Williamsburg. Virginia Accomack, Chesapeake, Gloucester, Isle of Wight, Lancaster, Mathews, Middlesex, Northampton, Northumberland, Surry, VA Beach and York.
 
Until further notice, Citadel Servicing is will be suspending loans with subject properties in Georgia, North Carolina, South Carolina, Virginia and West Virginia. “Please notify your borrowers immediately about the funding delay. If you have already scheduled a signing, please cancel these appointments until further notice.”
 
Capital markets
 
Happy National Cheeseburger Day. Is a tariff like gluten? You know, where you ask the average person on the street what it is, and they think it’s bad, but they really have no idea? Goldman Sachs and JPMorgan Chase have warned that the trade row between the US and China risks tipping markets into bear territory. Earnings, growth and equity valuation at S&P 500 companies could be hit if the Trump administration adds tariffs on Chinese imports, the banks say. If our economy is dampened, that should keep a ceiling on rates, right?
 
Rates didn’t do much yesterday, though the U.S. 10-year did close +1bps to hit the 3.00% barrier (its highest level since May) with news reports focusing on President Trump seeking a 10.0% tariff on $200 billion worth of imports from China. Markets were none too pleased to hear Chinese negotiators may be reluctant to return to the table after this latest round of rhetoric. National Economic Council Director Larry Kudlow weighed in, stating that President Trump has not been satisfied with trade talks and that new tariffs could be announced soon. Mr. Kudlow also said that budget deficits over the next few years will be between 4.0% and 5.0% of GDP per year. Separately, Richard Clarida was sworn in as the Vice Chairman of the Federal Reserve, beginning a four-year term.
 
Today’s light economic calendar has non-market moving numbers: Redbook same-store sales, the NAHB Housing Market Index for September, and the Treasury’s July TIC data. (“Treasury International Capital” – a measure of capital coming in and out of the U.S., and since May it’s been on a steady decline as China and Japan have decreased their US treasury holdings.) Also, Yom Kippur, the holiest day in Judaism, begins at sundown and continues through Wednesday. We start with rates up from Monday with the 10-year yielding 3% and agency MBS prices worse a few ticks (32nds).
 
 
I told my wife, “You’re driving me to my grave!”
It took her two seconds to get the car out of the garage.
 
 
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, “What Does Affordable Housing Mean? If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
 
Rob
 
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
 

Sep. 17: MI, LO jobs; notary product, new correspondent lender; events & training remaining in September

Given plenty of warning, and evacuations, the deaths in the Southeast from Florence have people wondering, “Why do residents stick around?” It is complicated, ranging from stubbornness to not having enough money to buy gasoline, but this NY Times article does a good job summarizing it.
 
Employment, wholesale business opportunity, & new positions
 
Inc. magazine has named Homespire Mortgage Corporation to its Inc. 5000 List of America’s Fastest-Growing Private Companies for 2018 for the second consecutive year. The list represents an exclusive ranking of the nation’s fastest-growing private companies. The company’s position at #1306 places Homespire Mortgage Corporation among an elite group of companies that achieved remarkable and sustained three-year growth and expansion. “To be named to this prestigious list for the second consecutive year is an incredible honor for Homespire Mortgage. It is a true testament to our sustained growth, our culture and our greatest strength of all, our people,” said Michael Rappaport, President & CEO. Since its formation, Homespire Mortgage Corporation has expanded its presence into 29 states and the District of Columbia. The company plans to expand its presence into new markets, including a national call center next year.
 
Nations Lending Corporationa privately-owned mortgage lender headquartered in Independence, Ohio, has announced that Jordan Gerard has been promoted to the new role of Divisional Sales Manager. Gerard will oversee the company’s strategy to grow its retail footprint in all markets. Prior to this role, Gerard was a successful branch manager at Nations Lending running multiple offices in several states. “Jordan’s experience and success building several of our top performing branches from the ground up will serve Nations Lending well in his new role.” said Nations Lending CEO Jeremy Sopko. Nations Lending is a rapidly growing company that is looking to hire purchase focused originators across the country. For more information please visit the company’s website.
 
In MI news, Essent Guaranty is looking for Account Managers in the San Diego, CA and New England areas. Essent Guaranty, a leader in the mortgage insurance industry and a great place to work, is looking for a results-driven Account Manager to call on mortgage lenders, banks, and credit unions. Essent offers a very competitive compensation and benefits package and makes it easy for serious professionals to transition. As an Account Manager, you will drive profitable mortgage insurance business using a risk centric approach and a goal of delivering value and added credit enhancement solutions. If you have significant mortgage lending experience and a minimum of 5 years of relevant business development experience within the financial services, mortgage, secondary markets, capital markets or mortgage insurance industries, this may be the job for you.  If you are interested in joining our team, please send a resume to Robyn Donnelly. Learn more about Essent Guaranty at www.essent.us.
 
“We have outgrown our parent – a Nevada-based wholesale division currently funding $50 million a month in 10 states looking to find a new home. We currently operate with healthy margins and are well into the black each month, our growth has been slowed by warehouse capacity and limited take out investor options. Our business mix is over 60% purchase and we break down with 60% Conventional 35% FHA/VA/USDA & 5% Jumbo NON/QM. If you think we might be a fit for you please email opportunity@wholesalemtg.com we look forward to talking with you.”
 
Congrats to David Akre who recently assumed the EVP of Capital Markets role at Sprout Mortgage. Sprout is one of top originators of non-QM loans and channels include wholesale, correspondent and direct to consumer. (He’ll also be moderating the Jumbo and Non-QM panel at the upcoming ABS East conference September 24th in Miami where panelists include members of senior management from Deephaven, Angel Oak, and SG Capital.)
 
Lender products and services
 
Today, 11 MORTGAGE (Eleven Mortgage) announced the launch of its wholesale and correspondent lending platform. The management team averages 25 years of wholesale and correspondent lending experience and extensive relationships across the nation. The veteran sales management, account executives and support staff are powered by a proven operations team and a modern lending portal. 11 MORTGAGE is pleased to announce the nomination of Thomas Michel as the EVP head of wholesale and correspondent lending. Michel stated, 11 MORTGAGE is setting a new standard in the mortgage market. Our business is built on relationships, precision, and unparalleled service to make mortgage transactions easy for brokers and customers alike. Unprecedented speed and service beyond your expectations are at the heart of every loan. On a scale of one to ten, we are eleven… 11 MORTGAGE

 

ARMCO Reduces Lender Data Validation Times by 50 Percent with DataSure™ – Technology validates data and automatically communicates corrections back to LOS. ACES Risk Management (ARMCO), the leading provider of technology for loan quality and compliance testing, data validation and analytics, announced the launch of DataSure™, a quality control technology that increases data validation accuracy and efficiency, and reduces lenders’ data validation task times by 50 percent or more. In a matter of moments, DataSure validates loan data for thousands of key data points within a lender’s source system (i.e. loan origination system) by cross referencing those data points against data contained in loan documents. It then automatically communicates all corrected data fields back to the lender’s source system. This assures data consistency and accuracy at each step of the loan process. DataSure also provides robust reporting capabilities, so lenders can identify the root causes of their data discrepancies and adjust their practices going forward. Read the press release.
 
From NotaryCam comes the true-life story of Dana Jackson, an Army wife whose husband was reassigned from Washington to Georgia. The Jacksons found a buyer for their home, but the closing date posed challenges: Dana was in Illinois visiting family, and her mother-in-law (a cosigner on the home) was in Missouri. The family’s title agent recommended NotaryCam’s
remote online notarization (RON) service. The Jacksons used iPads and laptops to join a Virginia-based notary in a virtual signing room. “We were all connected and looking at each other from four separate states,” said Dana. “At first everyone had a little uncertainty … but it was easy and took just about 30 minutes. Seriously, the hardest part was picking the time to do it. After that, it couldn’t have run smoother." If you’ve faced similar challenges and wished you had a customer-friendly solution, check out NotaryCam’s demo tomorrow at Digital Mortgage or email founder Rick Triola.
 
In its 54th consecutive and uninterrupted year providing warehouse lines to mortgage bankers, Comerica Bank is proud to recognize its team members for their dedicated service to the industry and their customers. The individuals on the Comerica Mortgage Banker Finance team average over 16 years in warehouse lending and 20 years in banking. Comerica Bank is also proud of its employees for their participation in the industry through support, advocacy, and volunteer efforts from Main Street to Washington D.C. The team of bankers at Comerica Bank is eager to learn about your business needs and grow with you. If you’re looking to diversify your lines or work with a more sophisticated warehouse partner, let Comerica Bank raise your expectations of what a bank can be. Please contact Von Ringger (313-222-9285). Member FDIC. Equal Opportunity Lender. Loans subject to credit approval.
 
Upcoming September events
 
Momentifi CEO Gibran Nicholas is hosting a series of webinars this week to help loan originators create fourth-quarter sales momentum and generate purchase business from referral sources other than real estate agents. The lead topic is, “How to Generate 10 Extra Loans from Financial Advisors in the Next 90 Days.” Click here to sign up and forward the link to your loan officers.  Separately, Momentifi is excited to launch its new enterprise API and sales technology that helps mortgage sales teams leverage enterprise CRM to create an extra $4 million in annual revenue from your tech stack and digital mortgage strategy. Click here to see a short overview. Gibran will be at the Digital Mortgage Conference today and tomorrow and you can reach out to him directly to schedule a meeting or demo.
 
For residential originators looking to capture small-balance commercial opportunities, join National Mortgage Professional Magazine for a Webinar on Thursday, September 20 at 2 pm, Sourcing Small-Balance Commercial Opportunities – The Definitive Marketing Guide for Residential Originators. More of today’s residential mortgage originators would like to diversify their business with small commercial and one unit to four-unit multifamily loans – if they only knew where to consistently source leads. Now’s your chance to get ahead. The commercial mortgage experts at Silver Hill Funding are here to share proven marketing tactics that experienced commercial brokers use every day. If you have any interest in generating more income with multifamily or commercial loans, you can’t afford to miss this presentation. Save your seat today by registering here
 
Register now for the next FREE webinar, Customer Experience in the Digital Era, from the California MBA’s Mortgage Technology & Marketing Committee, on September 20th at 11AM PT. This month’s webinar is hosted by Charles Warnock of The Content Marketing Factory, and will feature Joe Dahleen, EVP & Chief Strategy Officer at MortgageHippo, Mikhail Cook, SVP Sales, EXOS Technologies at ServiceLink, and John Seroka, Principal of Seroka Brand Development. You’ll learn how to create and deliver powerful customer experiences and bring the "lender for life" concept closer to reality.
 
On September 20th, Plaza is providing a complimentary training webinar: Financial Planner’s Guide to Reverse Mortgages.
 
FHA is offering an online webinar, September 20th, on FHA Approval and Recertification Requirements.
 
Register for the California MBA Legal Issues Committee Webinar on September 20th. The presentation will include CFPB update, What’s new with Attorney-Client Privilege: Perspectives from Inside and Outside Counsels and impact of Perez vs Wells Fargo.
 
On September 23rd, MBA Education’s Advanced Risk Management Concepts Workshop is a must-attend course for any mid- and senior-level mortgage risk professional looking to solidify their skillset and bolster their industry knowledge. The course occurs in conjunction with MBA’s Risk Management, QA and Fraud Prevention Forum (RMQA18) in Los Angeles, attend both to save on registration fees* and get a comprehensive overview of the risk topics you need to be familiar with to succeed.
 
Register for the Ellie Mae live webinar on September 25th: Navigating Mortgage Mergers & Acquisitions: People, Systems, Culture.  
 
Sign up for a HomeReady webinar, Wednesday, September 26th, hosted by Quicken Loans Product and Sales Experts.
And we have the September 27th Mortgage Quality & Compliance Committee (MQAC) webinar on "Advertising and Social Media Compliance".
 
Capital markets
 
Regarding natural disasters and economic conditions, Hurricane Florence is expected to impact things the same way as other events. At first weekly first-time unemployment claims will rise. September auto sales will fall, but October sales will spike due to buyers replacing flood damaged cars. Similarly, September employment growth will weaken, but will probably be upwardly revised the following month. Housing will also be temporarily depressed. Things tend to bounce back.
 
Rates are still expected to creep higher. The U.S. 10-year closed Friday at 3% after the release of an August Retail Sales report that was below estimates but contained an upward revision to the July reading. The news cycle centered around reports that President Trump is seeking to impose tariffs on another $200 billion worth of imports from China despite the recent efforts to revive trade talks. Other news of note includes Mary Daly becoming the President of the Federal Reserve Bank of San Francisco on October 1. And we learned that the preliminary University of Michigan Consumer Sentiment Index for September was the second-highest level since 2004 as positive sentiment was widespread across all major socioeconomic groups, a good sign for consumer spending activity.
 
There are several central bank decisions including the BoJ on Wednesday with the SNB and Norges Bank on Thursday. In the U.S. today’s calendar is light with only the September Empire State manufacturing Index (-6.6 to 19, whatever those mean). Tomorrow things pick back up slightly with the September NAHB Housing Market Index and July Net Long-Term TIC Flows. Wednesday brings the usual weekly MBA Mortgage Index, August Housing Starts, Building Permits, Q2 Current Account Balance, and weekly crude inventories. Thursday is Weekly Claims, the September Philadelphia Fed Survey, August Existing Home Sales, and August Leading Indicators. The week begins with rates a shade higher than Friday with the 10-year at 3.01% and agency MBS prices worse almost .125.
 
 
(If you share critical information pertaining to credit and risk in advance with your stakeholders, you may be able to prevent avoidable exposure.)
A man is getting into the shower just as his wife is finishing up hers when the doorbell rings.  After a few seconds of arguing over which one should go and answer the door, the wife gives up, wraps up in a towel and runs downstairs. When she opens the door, there stands Bob, the next-door neighbor. Before she says a word, Bob says, "I’ll give you $500 to drop that towel you have on." After thinking for a moment, the woman drops her towel and stands naked in front of Bob. After a few seconds, Bob hands her $500 and leaves.
Confused, but excited about her good fortune, the woman wraps up in the towel and goes back upstairs. When she walks back to the bathroom, her husband asks, "Who was that?"
"It was Bob the next-door neighbor and he…"
The husband interrupts, "Did he have the $500 bucks he owes me?"
 
 
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, “What Does Affordable Housing Mean? If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
 
Rob
 
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
 

Sep. 14: Cap. mkts., AE, LO jobs; trailing doc, tax, reverse products; vendor news; new lender programs

“Rob, the number of vendors at mortgage conferences seems to be growing. Any idea how many vendors (vs. lenders) there are?” I had no idea but turned to Ginger Bell who keeps up with such things. She replied, “We’ve counted more than 1,400 that are specific to residential lending! And that doesn’t even count those outside of the industry that lenders may use such as insurance, payroll, etc.” Good luck keeping up with them. If your company doesn’t have a dedicated vendor manager, who’s in charge of deciding if, why, where, and when to use certain vendors? The CEO? Does she have time for vetting them?
 
Employment, business opportunities, & promotions
 
As one of the largest outsource providers in the United States, Digital Risk, LLC, is looking for experienced professionals in Mortgage Business Development (Capital/Secondary Markets & Due Diligence). The ideal candidates will have established relationships in the financial sector, the requisite experience for the specified role and a proven track record of success. If interested in one of these roles, email Careers@DigitalRisk.com for more details or view our postings at http://careers.digitalrisk.com/business-development/.
 
Northpointe Bank is pleased to announce that Jason Lee has been named as Senior Vice President, Capital Markets. “In this leadership role, Lee will lead Northpointe’s pricing, trading, hedging, loan sale strategies, and is a member of the company’s executive loan committee. Lee has worked in the residential lending business for more than 20 years, with leadership positions at some of the nation’s largest mortgage lenders. Most recently, he served as SVP of Capital Markets for Caliber Home Loans since 2011, overseeing over $45 billion in annual production at one of the country’s largest mortgage origination and servicing companies. Prior to that, Lee led capital markets for Freedom Mortgage, and held management positions with Quicken Loans and US Bank Home Mortgage.
 
Towne Mortgage Company is looking for experienced Account Executives with a book of business throughout the Southeast, Mid-Atlantic, Texas, Ohio, Northern Illinois, Western Pennsylvania and Iowa. This position will have access to multiple operation centers and a wide range of product offerings including FHA, 203K, Fannie Mae HomeStyle, HomePath, HomeReady, DU Refi Plus, VA, USDA, and Manufactured Programs. Towne is looking for a seasoned, high-energy, salesperson who can partner with Towne to expand their lines of business. We are looking to fill positions in our financial institution channel working with Banks, Credit Unions and AgBanks as well as our traditional broker channel. Delivery mechanisms include both wholesale and mini-correspondent relationships. Towne offers competitive compensation packages including Medical and 401K. Sound Interesting? Email Cassi Sluka.
 
The market is shifting, rates are on the rise, refinances are down and the competition is intensifying. Are you an Orange County Single Family Mortgage Banker or Broker looking to expand into new programs and products including Multifamily, Commercial, SBA and Bridge? An Orange County-based lender and broker of Multifamily, Commercial, SBA and Bridge is looking for a strategic relationship to capitalize on the best of both platforms. Send me a confidential note of interest.
 
Caliber Home Loans, Inc., one of the nation’s fastest growing mortgage companies, has promoted Jordan Licht to Chief Operating Officer, Production, replacing Phil Shoemaker. Jordan joined Caliber from Morgan Stanley and has a deep background in mortgages – and he’s highly respected in the industry. To continue Caliber’s growth in the Non-Agency segment, Danny Horanyi has been named the new Head of Non-Agency lending. Danny recently rejoined Caliber from loanDepot. Historically he’s been one of Caliber’s top producers in Retail and was a consistent Circle of Excellence winner. Caliber CEO Sanjiv Das said, “I’m delighted to recognize these individuals who have proven track records of leadership and success. I’m confident these changes will help us accelerate our growth, improve our competitiveness and continue to position Caliber as the most highly regarded non-bank lender in the industry”. If you’re interested in joining one of the industry’s most dynamic, high-growth teams, contact Jeremy DeRosa
 
Lender products and services
 
Brett Vargo VP, Mortgage Operations at Iserve Lending (San Diego, CA) says, “DocProbe has very capably enabled us tackle one of the biggest ‘necessary evils’ in our industry: trailing docs. Gone are the days of carving out our valuable resources to chase down documents, of having mounds of paper piling up in a cubicle to scan and deliver. Most importantly, gone are the days of having to pay late fees for missing or delayed documents! DocProbe has delivered on every promise thus far and has provided us the benefits of improved efficiencies and cost savings.  Plus, their team is top notch, delivering incredible service.” Richard Scudder and Tani Lawrence will be attending the MBA Annual in Washington DC in October. Reach out to learn why prestigious correspondents and investors from coast to coast, large and small, are using DocProbe to manage their Trailing Docs.
 
ReverseVision is now offering enhanced software functionality and professional services to help lenders launch proprietary reverse mortgage products. Proprietary reverse mortgage products fill borrower needs not addressed by HECMs and insulate reverse mortgage operations from the effects of HUD changes to the HECM program. Proprietary reverse mortgages can expand access to home equity for seniors with home values much greater than the HECM maximum claim amount of $679,650. Proprietary products also have more flexibility for condominiums than HECMs and provide opportunities to lend to borrowers younger than HECM’s minimum age of 62. Designers of proprietary reverse mortgages have even begun adding options like monthly term payments to their products. The process for setting up a new proprietary product in ReverseVision is simple. After designing the product and its accompanying document package, lenders should contact Wendy Peel.
 
Every mortgage company president, VP, and operations manager want their team to close more loans, cleaner and faster. Current customers of LoanCraft’s Tax Return Analysis have reported an increase in their underwriter’s production by 35%. Their underwriters can review files much quicker, and less “bad deals” are making their way to the underwriting desk. Loan Officer’s love the service because they get quick answers on whether the income will work in the beginning of the process. Underwriters love it because they can focus on analysis, not compiling data and requesting returns. LoanCraft has developed a service that produces a report of your borrower’s income. Features in the report assist each department to help them identify areas of concern or potential for more income. Contact Lindsey Fougerousse at 248-897-0604 or visit LoanCraft.net for more information.
 
Vendor news
 
Block66 recently announced the creation of a platform that aims to reduce mortgage fraud by imbuing the mortgage origination process with a heavy dose of transparency and tamper-proofing controls. Block66’s blockchain technology will play the role of a mortgage hub, functioning as a one-stop shop where borrowers’ pay stubs, financial information, tax documents, and personal identifiers can be accessed by parties who require them. By deriving these documents from their original sources and storing them on the blockchain, the platform will represent an immutable, trustworthy, and interoperable resource that is far less vulnerable to fraudulent actors.
 
The American Bankers Association announced its endorsement of the comprehensive mortgage fulfillment solution that Promontory Fulfillment Services (PFS), a unit of Promontory MortgagePath, offers to community banks throughout the country. “PFS’s white-label mortgage fulfillment services are designed to give banks new and better options in terms of cost, compliance and customer experience, enabling banks to offer a full range of mortgage products—conventional, jumbo, non-agency and HELOCs without the need to build and maintain a mortgage operation. Through the mortgage fulfillment solution, PFS underwrites the loan using client-provided business rules then processes and closes the loan in the bank’s name. Ongoing compliance reviews are done throughout the process and post-closing. PFS then delivers the loan to the client or sub-servicer.”
 
Total Expert announced that a portion of its newly released Expert Content offering will be translated into Spanish. Total Expert is partnering with NAHREP Consulting Services to meet the unique needs of Spanish-speaking communities with customizable content and campaigns. Expert Content provides multi-channel marketing content and campaigns across web, social, email, print and video. It’s industry specific for banks and lenders, and all components are customizable, including verbiage, campaign cadence and campaign structure.
 
LendingQB and BNTouch have completed a full integration between their two platforms. This combining provides mortgage lenders an easy solution to grow their mortgage businesses from lead generation through loan origination and funding, seamlessly connecting all parts of a lender’s business. The systems communicate through a custom API integration that passes more than 300 points of data between the two systems. A potential borrower completes an online loan application on a loan officer’s website and the 1003 is placed as a lead into the loan officer’s BNTouch CRM. Once the loan officer initiates the loan process in LendingQB, the API integration kicks in. Deep communication between LendingQB and BNTouch allows for real time automated marketing to take place between the loan officer and their borrowers without the loan officer having to lift a finger.
 
New lender products & programs
 
Home Point Financial Corporation announced the launch of Home Point Rewards, a new home buying and selling program, powered by HomeStory. Home Point Rewards connects buyers and sellers with select real estate agents and Home Point loan officers.  Upon closing of their property, participants can receive up to $6,500 in cash rewards. “Who couldn’t use cash rewards when buying or selling a house,” said Brian Brizard, Chief Business Officer of Home Point Financial. “We’re excited to offer this innovative program to our customers and real estate partners.”
 
The Preferred Medical Professional Program is tailored to meet the needs of residents, medical doctors within 10 years of residency, dentists, orthodontists and veterinarians. EverBank has designed its lending guidelines to maximize their money and even exclude student loan debt in certain cases and allow newly license medical students who are about to begin their new employment/residency within 60 days of closing the use of future income.
 
Royal Pacific Funding introduced its Royal Reverse Mortgage. Send an inquiry email to marketing@royalpacificfunding.com if you would like an AE to contact you with more information.
 
CoreVest announced an expansion of its term loan program for investors in single family rental properties. CoreVest will now offer a 7-year term to complement the company’s existing 5- and 10-year term loan options. "After participating in the Freddie Mac rental finance pilot program, we realized investors wanted more options to suit their specific investment timelines.  Adding the 7-year option will enable us to fully address the needs of investors who may have been considering a GSE loan and are looking for a comparable alternative," relayed Ryan McBride, COO of CoreVest. 
 
The Lending Answer offers SIVA transactions with rates starting @ 4.75%. No Income Documentation of any kind is required. Available to Owner Occupied Borrowers and with financing solely requiring reserves to meet ATR guidelines.
 
Plaza’s AUS Non-Conforming Program “allows for AUS (Automated Underwriting System) documentation requirements to help cut down on all the paperwork that’s often required with these types of lending programs. With the AUS Non-Conforming Program, you get the combined ease of Desktop Underwriter® (DU®) findings with a non-conforming program for a more simplified origination and better pricing than with bank statement or other alternative products. The program is a great option for conforming loans that don’t quite meet certain GSE requirements.”
 
The state of Michigan has been added to the Plaza Home Mortgage Manufactured Housing Pilot program. The USDA Guaranteed Rural Housing program guidelines have been updated to include Michigan as an eligible property state.
 
Do you need to Qualify your borrower off a Verbal VOE or only just a Business License? Pacific Bay Lending Group has a starting rate of only 5.25% on a 7/1 Arm, Purchase or Rate and Term, Minimum 680 Fico, Max 70% LTV with Loan Amounts up to 2.5 Million. Owner, Non-Owner and 2nd Home Allowed. Available for SFR, 2-4 Units, and Condos. Available in CA and NV only.
 
Using bank statements for income is an excellent choice for Business owners with write-offs. Contact LoanStream Mortgage, inquiries@lswholesale.com to learn about its Fixed Rate, 5/1 and 7/1 ARM’s up to $10,000,000. Interest Only options are also available.
 
Capital markets
 
Rates were unchanged yesterday after the release of an in-line August CPI and a worse than expected core CPI, which followed similarly disappointing PPI figures from Wednesday. Atlanta Fed President Raphael Bostic spoke, saying he expects gradual rate hikes to take place over the "next handful of quarters.” Internationally, The Bank of England voted 9-0 to keep key rate and asset purchase program at their respective 0.75% and GBP435 billion. The outlook for Q3 GDP growth was increased to 0.5% from 0.4%. The European Central Bank made no changes to its interest rate path, and confirmed that monthly asset purchases will be reduced to EUR15 billion in October and continue through December
 
This morning we’ve had August Retail Sales (+.1%, weak) and August Import Prices ex-oil (-.6%, lower than expected). August Industrial Production (prior 0.1%) and Capacity Utilization (prior 78.1%) are both due out at 9:15 ET before July Business Inventories (prior 0.1%) and Preliminary September Michigan Sentiment Index at 10:00 ET. We also will have some Fed speak from Chicago Fed President Evans. Rates are a shade higher than last night with the 10-year at 2.99% and agency MBS prices worse a couple ticks.
 
 
I told my wife I wanted to be cremated.
She made an appointment for Tuesday.
 
 
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, “What Does Affordable Housing Mean? If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
 
Rob
 
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
 

Sep. 13: Marketing, bank statement, broker HELOC products; originator events; Agency & lender disaster updates

“Rob, would you happen to have a suggestion as to where I can find information as to the number of HUD loans done on manufactured housing last year, or by month?” Ah, the ol’ Title I activity query. The MBA’s Dr. Michael Fratantoni recommends that anyone needing that kind of thing take a look at these monthly production reports from HUD. For example, Table 3 tracks Title I activity.
 
Lender services, products, and books
 
It’s tempting for lenders to think they know everything about credit scores especially when they’ve been in the industry for a long time. However, sometimes it’s worth having a fresh set of eyes review your applicant’s credit report. With Lending Hand from Credit Plus, you can receive an in-depth, low cost review of each credit file so you can share helpful insights with your borrowers. You can even target increases of 5 or 105 points to qualify your borrower for a specific product, lender or rate tier, for the highest probability of a successful rescore. To learn more about Lending Hand, click here.
 
“100% LTV Home Equity Loans Are Back. Are you looking for an alternative to high rate Cash-out Refinances? Do you need a piggyback loan to avoid MI or Jumbo Pricing? Spring EQ, the nation’s premier non-bank home equity lender, is now offering its broad home equity product guidelines to brokers. Brokers will now have access to expanded home equity loan options to help customers get cash with FICO’s as low as 640 and CLTV’s as high as 100%. Spring EQ has developed an innovative process that typically requires only 4 documents (proof of income, mortgage statement, proof of hazard insurance and a photo ID) and customers can get their money in as little as 2 weeks. Ken Turner, Director of Wholesale Lending, is overseeing Spring EQ’s wholesale channel. Become a broker partner and offer your customers standalone or piggyback home equity loans." Just contact Ken Turner at (215-515-4109) to sign up today.”
 
Conquering Shifts is a must read. The book goes well beyond teaching the proven success principles included from some of the most respected and tenured originators in the country. All share what their life looked like before and after the mortgage meltdown, and how they tapped into their own unique skill sets. Regardless of the insurmountable odds they all faced at some point in their career, they all grew their careers-admirably. Greg Frost (Primary Residential Mortgage), Drew McKenzie, (TIAA Bank), David Jaffe (OnQ Financial), Jeff Lake (Guaranteed Rate), Julie Miller (Broadview Mortgage), Larry Bettag (Cherry Creek Mortgage), Michael Deery (Citywide Financial), Michael Smalley (Waterstone Mortgage), Ralph Massella (Retired), Tom Ninness (New American Funding), Mark Raskin (PrimeLending), and Karen Deis, (Founder of loanofficertraining.com).Industry leaders and best-selling authors, Todd Duncan and Daniel Harkavy, give the book Conquering Shifts a big thumbs-up, along with many others. To purchase visit www.conqueringshifts.com.
 
CALCAP Lending, LLC, a private money direct lender based out of southern California, is pleased to announce the launch of its Correspondent Lending Services program targeting the purchase of Business Purpose Loans. CALCAP’s program provides liquidity to originators who provide financing for rental and fix and flip transactions. “CALCAP’s growing team is well-versed in correspondent lending and we view this new business channel as a natural expansion of our current platform which includes both retail and wholesale lending capabilities,” stated Len Israel, CEO of CALCAP Lending. To learn more contact Mike Falce (657-289-2569), CALCAP’s SVP of Production and a 26-year industry veteran, who is leading the growth of this platform for CALCAP. 
 
Do you work with self-employed borrowers like hairdressers or consultants, or people with seasonal income like freelancers, tax-preparers, or artists or other professionals with an irregular income stream? If so, Sierra Pacific Mortgage – Bank Statement Program may be a perfect fit. How does it work? Simple. Instead of requiring years of tax documents, W-2s, or proof of regular payroll checks, Sierra bases the lending decision on a combination of bank statements and profit & loss statements. Contact a Sierra Pacific representative today to learn more.
 
Total Expert partnered with NAHREP Consulting Services to meet the unique needs of Spanish-speaking communities with customizable content and campaigns. A portion of Total Expert’s newly-released Expert Content offering has been translated to Spanish to enable producers to reach the diverse markets they serve and provide personalized content that is culturally relevant. “Being able to personalize and automate my marketing and communications to meet the unique perspectives of the people I’m targeting is a huge benefit,” said Isabel Mislinay, sales manager at AXIA Home Loans. “It’s incredibly important, sensitive and respectful to literally and figuratively speak the language of prospects and customers. Expert Content translated into Spanish will make this possible.” Learn more about Total Expert’s Partnership with NAHREP and how Expert Content empowers loan officers to personalize content and automate engagement with customers… creating customers for life.  
 
Originator events
 
Does your company have a corporate rate for Sales Mastery 2018: Game Changers? In less than four weeks, Todd Duncan’s Sales Mastery Event kicks off in San Diego, and it’s not too late to secure your seat at a discounted price! Leaders that register 20 or more attendees save $300 per ticket and each attendee will receive Free Digital Access FOR LIFE to Sales Mastery 2018 sessions. Don’t miss the chance to revolutionize your business and your life by becoming a Game Changer! Register for Sales Mastery 2018 today: www.salesmasteryevent.com
If you’re a leader, contact info@hightrust.com to secure your company’s discounted rate!
 
On Saturday, October 20, 2018 more than 1,500 independent mortgage brokers, loan originators and processors will join together at the AIME Fuse 2018 National Conference to learn from industry experts about how they can access the best technology, originate more loans each month and become a marketing expert for their own business. AIME Fuse will unite the nation’s most passionate mortgage professionals around a singular focus: to celebrate and enhance the value of independent mortgage brokers. This is the inaugural national event for the Association of Independent Mortgage Experts (AIME) and will be held at Bellagio Las Vegas.  Register for AIME Fuse 2018 here.
 
Disaster updates
 
There are worse things than being in the mortgage business. For example, if you were a hog farmer in Florence’s path, you’re working overtime to prepare since the storm poses a risk to livestock and environment, and your waste lagoons could fill with rainwater. There aren’t too many mortgage bankers who have to grapple with waste lagoons. Lenders, however, despite the lessening of the storm category, are dealing with the suspension of fundings leading to over-loaded appraisers scrambling to complete 1004d’s and stressed lock desks dealing with extensions.
 
Freddie Mac “is monitoring the approach of Hurricane Florence and will be ready to work with Servicers to ensure mortgage relief is available to impacted homeowners. If the hurricane causes property damage, borrowers whose homes or places of employment have been impacted may experience disruptions in their ability to make on-time mortgage payments. Servicers must be responsive to requests for assistance from affected borrowers using options available through our Single-Family Seller/Servicer Guide (Guide) and/or other temporary requirement changes tailored to address specific disasters, if applicable. Servicers should begin working with impacted borrowers as soon as possible and leverage our forbearance programs to provide immediate relief. If the Federal Emergency Management Agency makes a major disaster declaration with individual assistance offered, then our disaster relief options become available for affected borrowers in the eligible disaster areas (see Guide Chapter 8404). Sellers are encouraged to review the following applicable sections of the Guide together with their own procedures for inspecting properties to ensure the mortgage remains eligible: Guide Section 5601.2 (c) – Requirements for properties affected by disasters, and Guide Section 5601.9 – Seller representation and warranties regarding the Mortgaged Premises. For more information on Freddie’s natural disaster relief policies, please visit the Natural Disaster Relief webpage or contact your Freddie Mac rep.
 
Fannie Mae (aka Fannie, FNMA) “is reminding those impacted by Hurricane Florence of the options available for mortgage assistance. Under Fannie Mae’s guidelines for single-family mortgages: Homeowners impacted by Hurricane Florence are eligible to stop making mortgage payments for up to 12 months, during which time they: will not incur late fees during this temporary payment break or will not have delinquencies reported to the credit bureaus. Servicers are authorized to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days without any contact with the homeowner if the servicer believes the homeowner has been affected by a disaster. Payment forbearance of up to 12 months is available in many circumstances. Servicers must suspend foreclosure and other legal proceedings if the servicer believes the homeowner has been impacted by a disaster…. Homeowners can reach out to Fannie Mae directly by calling 1-800-2FANNIE (1-800-232-6643).”
 
Seeing how the agencies reacted to Hawaiian volcano events are a good indicator for the expected flooding. For example, FHA issued a waiver of its policy on the timeframe for completing the inspection of properties prior to closing or submitting the mortgage for FHA insurance endorsement in the May 11, 2018, Presidentially-Declared Major Disaster Area (PDMDA) on the Big Island of Hawaii, stemming from the Kilauea Volcanic eruption.
 
Plaza Home Mortgage has reinstated loan funding in the state of Maryland. There is no change to the suspension in funding for South Carolina, North Carolina and Virginia at this point.
 
Pacific Union Financial sent, “Clients and Pacific Union employees continue to be responsible for monitoring the FEMA Website, their lending areas and pipeline, and ensuring impacted properties meet agency, investor and Pacific Union requirements. Please see the Pacific Union Disaster Area Policy for detailed requirements. Once impacted areas are identified, standard agency, investor and Pacific Union requirements apply for properties located in these areas to determine whether there is an impact to the property and value.  In addition, all types of issued insurance policies (hazard, flood, windstorm, etc.) must have binding authority on the subject property. Any uninsured loans in states within the threat territory must to be insured as soon as possible.”
 
Keeping up with lenders whose names start with “P,” the PennyMac Correspondent Group has posted a new announcement: 18-36: Disaster Policy Implementation: Hurricane Florence. (You can access all announcements for the PennyMac Correspondent Group on its website: www.gopennymac.com/announcements.)
 
Ditech Financial LLC sent out a note to its approved correspondent clients. Ditech is temporarily suspending the funding of all loans in the following counties: North Carolina
(Beaufort, Brunswick, Camden, Carteret, Chowan, Craven, Currituck, Dare, Hyde, Jones, New Hanover, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Tyrrell and Washington), South Carolina (Beaufort, Berkeley, Charleston, Chesterfield, Colleton, Darlington, Dillon, Dorchester, Florence, Georgetown, Horry, Jasper, Marion, Marlboro and Williamsburg), Virginia  (Accomack, Chesapeake, Gloucester, Isle of Wight, Lancaster, Mathews, Middlesex, Northampton, Northumberland, Surry, VA Beach and York). FEMA has not yet declared a disaster. Please review our complete Disaster Policy and Guidelines in Chapter 18 of the Client Guide.
 
Mortgage Solutions Financial noted that, “FEMA Emergency Declaration EM-3401 and EM-3400 were declared September 10th, 2018. In preparation for the landfall of Hurricane Florence, MSF has suspended closing & funding” in select counties (63 of them) in North Carolina and South Carolina.
 
Until further notice, Citadel Servicing is will be “temporarily suspending loans with subject properties in Georgia, North Carolina, South Carolina, Virginia and West Virginia. This is due to Hurricane Florence and the potential impact that it could have on properties in these states. Please notify your borrowers immediately about the funding delay. If you have already scheduled a signing, please cancel these appointments until further notice.”
 
Chase correspondent has standing disaster policy requirements.
 
“Until further notice, Sun West Mortgage Company, Inc. is temporarily suspending the closings of all loans with subject properties in the states of North Carolina, South Carolina, Virginia, and West Virginia. This suspension is due to the potential impact of Hurricane Florence on properties in these states. If you have already scheduled a signing of closing documents, please take steps to cancel those closings until further notice and inform your borrowers as soon as possible of the funding delay.”
Banks are posting branch closure notices. For example, SunTrust has a slew of them.
 
Capital markets
 
Wednesday was another snoozer in the bond market, a good thing for secondary marketing departments everywhere. The U.S. 10-year closed -1bps to 2.96%, the largest news of the day the release of a worse than expected PPI for August. Other news included reports of a delegation led by Treasury Secretary Steven Mnuchin inviting its Chinese counterparts for another meeting to talk about trade, for what that is worth. Fed Governor Lael Brainard suggested that gradual rate increases should continue for the next year or two, and an acceleration in inflation would require more aggressive action on rates. Internationally, Japan’s Prime Minister Shinzo Abe met with China’s President Xi Jinping at Russia’s Eastern Economic Forum.
 
Today’s calendar has already seen two central bank decisions by the BoE (unchanged) and the European Central Bank with ECB President Draghi’s press conference. The August Consumer Price Index report (+.2%, core +.1% – tame) and weekly jobless claims (204k) kicked off the US calendar, which is where things end in terms of scheduled economic news of any importance although there is a $15 billion 30-year auction. Rates? Versus last night’s close they’re not doing much with the 10-year at 2.96% and agency MBS prices better a smidge.
 
 
I urge all my family and friends in the Carolinas, and in the entire East Coast, to be careful. I can’t afford to go to 27 baby showers in April because you lost power.
 
 
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, “What Does Affordable Housing Mean? If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
 
Rob
 
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
 

Sep. 12: LO jobs; non-QM & marketing products; non-QM & eSummons training; lenders’ disaster plans & reactions

We’re always reminded that nature bats last. Every lender that I know of bases their disaster policies directly from FEMA’s declarations or from other companies that base their policies from FEMA. Lenders are reacting – see below. (My cat Myrtle is very concerned that the current forecast has Hurricane Florence targeting landfall at Myrtle Beach.) In North Carolina, there are 9 million pigs being raised on 2,300 Carolina hog farms, and those animals produce 10 billion pounds of wet animal waste a year, which is stored in open lagoons. The North Carolina Pork Council said the lagoons can handle 25 inches of rain without failing. Portions of North Carolina are forecasted to get 40 inches of rain.
 
Employment
 
A C-Suite executive is looking for opportunities in Sales and/or Operations. The 20-year veteran has a proven track record of building exceptional teams and in their most recent 2 engagements oversaw a 2.5 X and a 4X increase in fundings. Experienced in Consumer Direct, Process Design & Improvement, Data Analytics, Digital Transformation, Artificial Intelligence, Technology Stacks and their integration, Operations, Marketing, Vendor Management & proficient in Sales Training, Sales Management, and Telephony. Interested parties can contact me to forward their note to the candidate.
 
Does your pricing seem a little bit too high? Are you losing deals over rates? Is your ability to earn money limited by your company’s high pricing? If you answered yes to any of these, chances are your company has too much padding or extra margin built into their rates, costing you money, deals, and possibly even referral relationships! Even worse, some companies build even more padding into your rates when their business slows down to keep their ‘high-profit appetite’ fed. Now there’s a way to see ‘behind the curtain’ to make sure you’re getting the best deal possible. Check out this "Pricing Lie Detector" – a free tool that shows you in 10 seconds how much money you may be leaving on the table due to over-inflated rate sheets from your company.”
 
Lender Products and services
 
Fidelity Bank has been committed to providing warehouse banking solutions for correspondent mortgage bankers and emerging mortgage bankers for more than 30 years. A quick and efficient closing for your borrower drives repeat and referral business for you. At Fidelity Bank we understand how important each loan closing is to your company’s reputation and are here to support you. With direct access to our decision makers and dedicated and responsive staff, you gain a trusted process and partner that can quickly address issues to meet your needs. If you’ve thought that it might be time to consider a new warehouse bank, or add to your current capacity, contact Susan Johnson (952-830-7243) or Brian Huddleston (713-332-8367). Work with a proven partner with a dedicated and responsive team.
 
Calling all Mortgage Marketing Pros: Usherpa’s new email marketing engine, Launch Pad, is powerful, flexible, efficient, and most importantly, CUSTOMIZABLE. Usherpa has meticulously crafted email templates that make it easy for marketing managers to build more relevant and brand compliant messages with less effort. Schedule a demo today!
Floify, a leading point-of-sale solution, continues to help LOs stay ahead of the mortgage technology curve by automating critical processes and communications, as well as consolidating VOE/VOI, credit reporting, and other necessary services into one convenient and affordable solution. Not only is Floify’s end-to-end platform saving LOs time by managing redundant tasks associated with originating loans, they’re making the process even more amazing with a stylish new interview-style 1003, brandable landing pages, and a growing list of integrations. In fact, LOs who use Floify have become so efficient that many are reporting unprecedented revenue because of their Floify-automated mortgage processes. This has kept them competitive against direct-to-consumer players in the mortgage space, including Quicken Loans and LoanDepot. Now, if you’ve been considering modernizing your origination processes, there’s never been a better time to make the transition to Floify’s powerful mortgage automation solution. Request a live demo to learn more!
 
Do you have borrowers with impaired credit? Time to check out Credit Ascent. Verus Mortgage Capital offers responsible solutions for credit-impaired borrowers, including self-employed and foreign nationals.  Recent bankruptcy, foreclosure or short sale / DIL and FICOs down to 500 with full documentation. Verus, a non-QM investor who builds lasting partnerships with correspondent originators, has purchased over $2.8 billion in expanded, non-QM loans and completed six rated securitizations. Email Jeff Schaefer today to learn more.
 
Deephaven Mortgage is shining the light on a better path forward in today’s Non-QM marketplace. The company is doing this by bringing innovative products and cutting-edge Point of Sale tools to a historically manual industry. In case you missed it, the Non-QM sector is projecting a $15BB plus marketplace in 2018. It will grow well beyond that in 2019 and the years to follow. Deephaven offers loans through their wholesale and correspondent partners that cater to tens of millions of clients left behind in today’s conventional/government marketplace. Today, 9/12/18, Deephaven Mortgage announces the introduction of a 12 Month Business Bank Statement program. The program aims to simplify qualifying the conservatively estimated 16MM of self-employed Americans.  Please get in contact with Deephaven to capitalize now: brokerinfo@deephavenmortgage.com (Wholesale) or sales@deephavenmortgage.com (Correspondent).
 
Events
 
Caliber Home Loans, Inc. is hosting not one, but TWO webinars today on its newest non-Agency product, Caliber Elite Access. Offering Elite Access to borrowers who have the ability to repay can help you close more Jumbo loans because this product has 95% LTVs and no MI! Caliber Head of Wholesale John Gibson and SVP Will Pendleton will be speaking to attendees, live. To accommodate as many brokers as possible, Caliber Wholesale is hosting one last informative session on Thursday, September 13th. Register for one of the three remaining webinars here so you can understand how Elite Access and Caliber’s suite of Portfolio Loans can help you meet the needs of more borrowers. Oh, and we hear there will be BIG news at the end for brokers who attend.
 
On Saturday, October 20, 2018 more than 1,500 independent mortgage brokers, loan originators and processors will join at the AIME Fuse 2018 National Conference to learn from industry experts about how they can access the best technology, originate more loans each month and become a marketing expert for their own business. AIME Fuse will unite the nation’s most passionate mortgage professionals around a singular focus: to celebrate and enhance the value of independent mortgage brokers. This is the inaugural national event for the Association of Independent Mortgage Experts (AIME) and will be held at Bellagio Las Vegas.  Register for AIME Fuse 2018 here.
 
Our friends at the Internal Revenue Service (“IRS” in case you didn’t know) are promoting a free informational webinar scheduled for September 13 at 11AM ET titled “Understanding the eSummons Process.” The IRS sends a summons to a financial institution to get information about a customer. In the past, it sent these summonses only by mail and the information was sent to the IRS by mail. Now, it will send them to the financial institution electronically, and the financial institution can send the information back to the IRS electronically. 
 
Flood and disaster updates
 
As Hurricane Florence makes its way towards the coastline of the Carolinas, states of emergency have been declared for South Carolina, North Carolina, and Virginia. The forecasted amounts of rainfall could also lead to significant flooding in the inland areas of the three states. By S&P Global Ratings’ calculation, CMBS exposure (including about $33.6bn of agency transactions) in these three states totals about $63bn (by property allocated loan amount). These exposures consist of about 7k mortgage loans, secured by over 8.7k properties
 
In yesterday’s issue of the Federal Register (83 FR 45950, click here), the Federal Emergency Management Agency (FEMA) published the above notice of changes in flood hazard determinations. The notice lists communities where the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway (hereinafter referred to as flood hazard determinations), as shown on the Flood Insurance Rate Maps (FIRMs) and, where applicable, in the supporting Flood Insurance Study (FIS) reports, is appropriate because of new scientific or technical data. The FIRM and, where applicable, the FIS report for each community have been revised to reflect these flood hazard determinations through issuance of a Letter of Map Revision (LOMR).
 
FHA published Mortgagee Letter (ML) 2018-05, which revises the order of loss mitigation options for borrowers with FHA-insured mortgages whose property and/or place of employment is in the Presidentially-Declared Major Disaster Areas (PDMDAs) of Puerto Rico Hurricane Maria (DR-4339) or U.S. Virgin Islands Hurricane Maria (DR-4340). In addition, HUD extended foreclosure timelines through September 15, 2018, for Home Equity Conversion Mortgages (HECM). This extension is applicable only to those counties declared eligible for Individual Assistance by FEMA. It applies to both the initiation of foreclosures and foreclosures already in process on HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse. This guidance is effective immediately and is applicable to all homeowners with FHA-insured HECM mortgages whose property or place of employment is in the PDMDAs for Puerto Rico’s Hurricane Maria (FEMA-DR-4339) and U.S. Virgin Islands’ Hurricane Maria (FEMA-DR-4340).
 
Wells Fargo Funding (aka, correspondent) sent out, “We’re aware that many of our clients with operations on the eastern seaboard have or will be evacuating due to Hurricane Florence. If your operations have been disrupted by the storm, please contact your regional sales manager or a member of your regional sales team to discuss next steps…Please continue to refer to our requirements in Seller Guide Section 820.19: Disaster Policy and to disaster declarations listed on the FEMA website.”
 
Due to the threat from Hurricane Florence, Plaza Home Mortgage has temporarily suspended loan funding in South Carolina, North Carolina, Virginia, and Maryland as of Tuesday, September 11, 2018.
 
“Due to the potential impacts of Hurricane Florence, AmeriHome is temporarily suspending loan purchase activities in several coastal counties in North Carolina and South Carolina, and certain counties in the Commonwealth of Virginia.” So spoketh AmeriHome Mortgage.
 
All too often homeowners are left with thousands of dollars of damage resulting from natural disasters. The Carlson Law Firm alongside a team of dedicated natural disaster damage attorneys has developed a tool, the Flood Claim Value Calculator, that homeowners can use to determine the true value of their damage.
Pacific Union Financial is continuing to monitor the impact of the wildfires and high winds affecting California from July 23 going forward. Per its published guidelines, any properties located within the areas identified by the Federal Emergency Management Agency (FEMA) offering private assistance will require confirmation the subject property has not been affected by disasters. This confirmation includes Borrower written certification of the condition of the property prior to clear to close by Pacific Union. FEMA has included Shasta and Lake counties in its disaster declarations. Pacific Union requires certifications from Correspondents for properties in the affected counties for purchase to occur.
 
Mortgage Solutions Financial posted an updated announcement in reference to California Wildfires And High Winds– Disaster Alert.
 
On August 17, 2018, FEMA granted individual assistance to Lake County California. AmeriHome Mortgage will continue to provide details and re-inspection requirements as available.
 
Mortgage Solutions Financial has revised its previous announcement regarding the Texas Severe Storms and Flooding.
 
On July 31, 2018, with News Release NR-015, FEMA granted individual assistance to 1 additional county, for the Texas Flooding. Refer to AmeriHome’s guide for details and re-inspection requirements.
 
Shasta county in California has been declared by FEMA as Major Disaster Area for the incident period date of July 23, 2018 declared on August 7, 2018. To view a complete list of FEMA disaster alerts in XLS format, click here: Annexure-I. To view FEMA’s recent update on CA, click here: FEMA.
 
Mortgage Solutions Financial posted information regarding FEMA Major Disaster Declaration DR-4382.
 
FEMA has declared a major disaster in Massachusetts for disasters occurring March 13 and March 14, 2018. Per Pacific Union Financials’ published guidelines, any properties located within the areas identified by the Federal Emergency Management Agency (FEMA) offering private assistance will require confirmation the subject property has not been affected by disasters. This confirmation includes certification of the condition of the property prior to the purchase of the loan by Pacific Union.
 
Capital markets
 
Ahead of the arrival of Hurricane Florence on the U.S. east coast, oil prices rose almost $2 a barrel, to about $69. Big storms can cause increases in fuel demand, increasing its price. Motorists can expect spikes in pump prices to be brief, but possibly dramatic. So yes, inflationary, but brief.
 
Looking at bond prices, the market sold off Tuesday with rates going up. Think “pressure on short rates, resulting from consistent rate hikes” from the Fed impacting the entire market. There wasn’t much news to move rates, and the 3-year Treasury note auction went okay but at rates matching those from 2007 – but the 10-year closed yielding 2.98% – the highest since early August. Wholesale inventories increased as the pace of sales growth year-over-year continues to exceed the pace of inventories growth, which is a positive dynamic that can eventually help wholesalers regain pricing power if it persists.
 
This morning we’ve had last week’s mortgage application data (-1.8%, refis -6%) and August’s Producer Price Index (core and non-core -.1%, a surprise drop). Coming up is the $23 billion 10-year T-Note auction and the Fed’s August Beige Book, giving us a read on various zones in the U.S. Wednesday starts with rates a shade lower from last night’s close: the 10-year is at 2.96% and agency MBS prices are better by a couple ticks.
 
 
We are worried about my dad.
We believe that he’s addicted to brake fluid.
He says no, he can stop any time.
 
 
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, “What Does Affordable Housing Mean? If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
 
Rob
 
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
 

Sep. 11: Controller, warehouse, LO jobs; warehouse product; servicing sale; residential co. moves; conventional/conf. news

“Rob, although the initial commotion about Amazon entering the mortgage biz has died down, my management team believes it is still a threat. We have heard, however, that plenty of resi companies use Amazon’s servers to host their sites. Is this true?” “Plenty” is a little vague. I don’t know how many, or exactly who, or the IT implications, but here are a couple of quick, easy to find references: Blend, Roostify, and CloudVirga. To the best of my very limited IT knowledge, Amazon Web Services is entirely separate from Amazon’s other ventures.
 
Employment & new positions
 
Caliber Home Loans, Inc. is excited to welcome Jalaj ‘JJ’ Jha to its Direct to Consumer lending team as Senior Vice President, Marketing & Analytics. JJ previously was head of marketing and marketing technology at Capital One Mortgage, where he ran all marketing & digital products for their mortgage business. JJ also led digital marketing for the US Card business. At Caliber, he’ll report to EVP Chad Smith. JJ describes the mortgage industry as being “ripe for changes fueled by technology and analytics. Since mortgage is a high scale business, I believe the innovations would come from a large, stable company that has the desire to create the path of innovation. Caliber fits that profile perfectly, given that it has already done so with the creation of its suite of non-Agency products – Caliber Portfolio Loans – and the use of proprietary lending technology, including its LOS and suite of mobile apps.
 
A mortgage warehouse lending group with over twenty years of continuous operation is seeking experienced warehouse lenders to join its team. Successful applicants will be responsible for all aspects of business development, including prospecting, closing, and managing existing customer relationships through financial analysis supported by a portfolio manager. Relocation is not required. Confidential inquiries should be sent to me for forwarding.
 
A small to medium sized Correspondent mortgage lender awarded 5X INC 5000 Fastest growing companies in America, Crain’s Chicago Fast Fifty and Top Mortgage Employer by NMP Magazine is currently in for Agency approvals is seeking an experienced Controller. Must have 5 years of experience as a Controller at a Correspondent mortgage lender. Experience in working with Loan vision accounting software preferred. Email me for a confidential meeting.
 
When you’re a lender in Buffalo, NY, The City of Good Neighbors, you need the backing of a powerhouse operations and support team who can help you close loan after loan for one good neighbor after another. That’s why Branch Manager Mark Erway and the new branch made the move to top 10 national lender PrimeLending, giving them a competitive edge in this red-hot market. Equipped with a leading digital mortgage experience, over 400 products, including a suite of 18 renovation programs, and a best-in-class ops team solely focused on closing loans, PrimeLending Buffalo now offers an unmatched level of service and a streamlined mortgage experience for borrowers and local business partners. If you’re a loan originator looking to succeed in your market, it’s easy with PrimeLending by your side. It just takes a call to Brian Miller at 469.737.5729 to start.
 
Wintrust Mortgage, a division of Barrington Bank & Trust is pleased to announce that Alex Jacobs has joined as its new EVP, National Retail Sales Manager. Prior to joining Wintrust, Alex worked for two years as an Executive Consultant at Newbold Advisors and the previous 24 years at SunTrust Mortgage where he ran the $20b nationwide mortgage origination platform – Distributed Retail, Consumer Direct, Correspondent and Cross Sell.
 
Lender products & services, servicing for sale
 
When our grandparents wanted to buy their first home, they went down to the local bank and sat down face to face with a loan officer. Then when they wanted to buy their vacation home, a rental property or downsize, they went back to the bank and sat down with that loan officer again. Loan officers were able to build trust and long-term relationships face to face when they knew the needs of their customers because they truly knew them. Somewhere along the way, large financial transactions became more transaction-focused instead of relationship-focused. Today, it is increasingly difficult for loan officers to stay front and center with their customers. The average consumer is exposed to 10,000 marketing messages per day. How are you cutting through the noise and building a strategic, scalable approach to cultivate customs for life? Read the Total Expert blog: “The Customer Journey: Then and Now.” 
 
PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), continues to look for opportunities to help reduce our customers costs as related to their warehouse funding needs.  That is why we offer multiple incentive pricing options to reduce costs for our customersTiered Utilization Incentive Pricing allows our customers to set utilization tiers they are comfortable meeting with rate incentives that reduce their costs.  Our customers can also take advantage of Deposit Incentive Pricing.  PlainsCapital Bank offers a competitive line up of Treasury Management products and when our customers take advantage of those products, they earn rate incentives to further reduce costs.  We are committed to building strong relationships with our customers and providing the service you need most.  If you are interested in learning more about PlainsCapital Bank National Warehouse Lending please contact Pamela Robinson, SVP National Sales. 
 
On Saturday, October 20, 2018 more than 1,500 independent mortgage brokers, loan originators and processors will join at the AIME Fuse 2018 National Conference to learn from industry experts about how they can access the best technology, originate more loans each month and become a marketing expert for their own business. AIME Fuse will unite the nation’s most passionate mortgage professionals around a singular focus: to celebrate and enhance the value of independent mortgage brokers. This is the inaugural national event for the Association of Independent Mortgage Experts (AIME) and will be held at Bellagio Las Vegas.  Register for AIME Fuse 2018 here.
 
A unique pool of servicing rights is for sale. The pool is $140 million (approx. 2900 loans) of 100% fixed rate city and county, second mortgage affordable housing down payment and closing cost loans. The loans carry 0% interest and an average maturity of 15-20 years. The loans earn an annual income of $600,000 which includes monthly servicing fees, new loan setup fees, late fees, and ancillary income. It consists of loans in 15 states (FL, GA, NJ, OH, IN, KA, MO, TX, LA, CA, OR, AZ, MS, PA, and NC), with varying rates (non-profits 0%, local governments 0-3%, private investor varying), with 3-5% internal growth rate/year. Lenders perform all foreclosure and bankruptcy work – there is no delinquency work past initiation of the foreclosure/judgement processes by the lender’s attorneys; there is no work on bankruptcies other than securing basic documents for state audits. Interested parties should send me a note for forwarding to the principal.
 
Company moves & trends
 
Do you work for a non-depository lender? Or compete with one? If so, you may want to read this research piece on the risks, and strengths and weaknesses, of non-bank lenders. Hint: watch out for rising rates, declining home prices,
 
In-House Realty, a Detroit-based subsidiary of Rock Holdings Inc., announced it has rebranded as Rocket Homes. “With its new name, Rocket Homes draws from its heritage and builds on the legacy of its affiliated companies including: Quicken Loans, the nation’s largest mortgage lender and home of the revolutionary Rocket Mortgage; and Rocket Loans, a completely-online personal lender with same-day funding…Rocket Homes also provides neighborhood information including market trends, housing supply and the level of demand for housing in the specific areas consumers are looking to buy or sell in.”
 
American Mortgage Consultants, Inc. announced the formation of TechEssential, Inc. “This new subsidiary offers AMC clients and third-party service providers a suite of technology solutions that increase the efficiency of transacting in the secondary mortgage market.”
 
In news from Blackstone, have you heard of Stearns Lending’s Preferred Partner Program? Stearns launched a new partnership program to acquire equity stakes in various independent mortgage banking firms as it tries to broaden its origination franchise offering up technology and operational support as well as capital markets assistance. Lenders can maintain their brand identity, management and culture. (Recall Certainty Home Loans.)
 
Conventional conforming changes
 
“ACIS is Freddie Mac’s programmatic CRT offering for the global (re)insurance industry. It accesses institution-based capital to support the mortgage credit market and helps develop CRT as a sustainable source of capital over the long term.” What the heck does that mean? Read about it in this article on how Freddie is eyeing the reinsurance market.
 
Remember that effective August 20 Freddie Mac increased the maximum number of allowable financed properties to 10. When the number of financed properties is greater than six, the following additional guidelines apply: The subject mortgage must: have a Risk Class of Accept from Loan Product Advisor, have a minimum credit score of 720, have 8 months cash reserves for each additional second home and/or 1-4-unit investment property that is financed and on which the borrower is obligated. California wholesaler MWF has updated its guides to reflect these changes.
 
PRMG posted updates to its products. On closed-end seconds (CES), documentation no longer needs to meet all appendix Q requirements and is now allowed per Fannie Mae’s DU findings. Ratios are now allowed to 45% up to 95% CLTV. A 35% DTI is still allowed.
 
As part of the Wells Fargo Funding implementation of the Home Mortgage Disclosure (Regulation C) final rule (HMDA final rule), lenders are required to complete the Demographic Information Addendum for loans with applications taken on and after January 1, 2018. Wells has observed an increase in warning edits from Freddie Mac’s selling system upon submitting loans where the Demographic Information Addendum indicates: Ethnicity and/or race determinations were made on visual observation or surname and “I do not wish to provide this information” was not selected. Wells Fargo Funding is cautioning that this trend could become a compliance and salability risk for lenders and investors.
 
Effective September 10 Freddie Mac HomeOne Mortgage Loans were eligible for purchase by Wells Fargo Funding. There are no Wells Fargo Funding overlays specific to HomeOne Mortgages. Custom mortgage insurance (MI) allowed. Monthly and annual lender-paid mortgage insurance remain ineligible for all Loans/
 
On Sept. 24, Fannie Mae is introducing a new approach to expense reimbursement as part of its commitment to Simplifying Servicing™. In addition to document-free reimbursement claim submissions, you’ll soon have access to a new expense reimbursement dashboard, which will provide a single location for centralized reporting of claim, inquiry, and excess fee approval information. Visit the Simplifying Servicing page to stay up to date on these exciting enhancements.
 
Fannie Mae is adopting the name "appraisal waiver" to replace "property inspection waiver. This is a name change only and does not impact its appraisal waiver policy. For more information about appraisal waivers, visit our website.
 
PRMG is allowing appraisal transfers on all Agency and USDA products. Click here to view updated product profiles.
 
Optimal Blue has released Chase Correspondent FNMA HomeReady High Balance 30-year fixed product line(s).
 
United Wholesale Mortgage announced that it will cover the cost of home appraisals by crediting up to $525 at closing on funded loans. “Mortgage brokers in UWM’s network will be able to utilize this for an even greater competitive advantage. Real estate agents can benefit as well, using no-cost appraisals to bring more buyers in the door. This No-Cost Appraisal on all Conventional loan programs is eligible for loan submissions after August 28. Loans must close by December 31, 2018.”
 
Capital markets
 
Don’t forget that Incenter Securities Group, LLC halted active market making of TBA securities effective August 31. Please contact the trading desk to manage any open positions. Whole loan trading continues to be very active. The whole loan trading group will be transitioning out of Incenter at the end of September and will no longer be affiliated with Incenter. Incenter will continue to trade securities, focused on new issuance in the forward, reverse, and commercial mortgage spaces. For info contact Pete Harrison.
 
We haven’t talked about the yield curve lately, but Monday (yesterday) the fixed-income markets saw shorter-dated securities selling off and longer-dated instruments doing well leading to a compression in the 10-2 spread to 23 basis points from 25 basis points on Friday. (The front end was weighed down by rate-hike concerns but there wasn’t a great deal of conviction in the selling efforts in the long end.) The 10-year’s yield ended the day unchanged at 2.94%. There was more attention paid to Hurricane Florence, expected to make landfall as a major hurricane (possibly Category 4 or 5) somewhere along the U.S. East Coast on Thursday, and some celebrating the Jewish New Year.
 
Today? The Fed will take a break from its usual buying of securities (but returns Wednesday with the purchase of up to $120mn 15-year conventional 3.5% and 4%).
 
Tuesday’s economic calendar kicked off with the NFIB Small Business Optimism Index (hitting a record of “108.8”). Later are the minor numbers of Redbook same-store sales, July wholesale inventories and sales, JOLTS job openings, and a $35 billion 3-year note auction. Tuesday starts with rates up somewhat: the 10-year is yielding 2.95% and agency MBS prices are worse nearly .125.
 
 
Seventeen years. Pause to think about those that we lost, and the chaos that we went through that day.
 
 
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, “What Does Affordable Housing Mean? If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
 
Rob
 
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
 

Sep. 10: LO jobs; app product; upcoming training & events in-person & on-line; Fed officials weigh in on rates

You’d be hard-pressed to find someone who hasn’t slept in a car at least once in their life. Whether it is having too much to drink, weary during a road trip, rain during a camping trip, on their way to a golf tournament, whatever. Even wealthy cities like Berkeley and Seattle are seeing a boom in people calling their cars and RVs "home." That is one form of “affordable” but residential companies are very interested in what is happening with affordable lending and here is a primer on the topic for a basic grasp of the topic.
 
Employment & new positions
 
Congratulations to Mark Korell who was named Senior Advisor to PeakstoneMr. Korell, currently Chairman of Hamilton Group Funding, will become a Senior Advisor to Peakstone’s Mortgage Banking Group, and is working with Peter Melloni, Managing Director, and the rest of the Peakstone team. Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. The team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. Peakstone operates as One Firm, where teamwork is stressed because it produces the best results. Peakstone focuses on what the clients want and need and develop a range of solutions to meet those requirements, operating under the adage, not every situation warrants a standard “playbook” solution.
 
“Are you building a career ON PURPOSE? Movement Mortgage has launched a new Loan Officer career site designed to help LOs evaluate a career path at Movement Mortgage. Understand Movement’s unique value proposition of private, independent ownership, long-term investments in technology and people, and remarkable stories of LO success and increased market share. Watch this video from CEO Casey Crawford to learn more about Movement’s desire to bring you professional and personal success. Learn more at movementlo.com.”
 
Lender products and services
 
“How can you say the words ‘Digital Mortgage’ if your Online application still requires human intelligence or can result in human error? PerfectLO, the leading POS in the Fin-tech space, has designed a Perfect Loan Application built with intelligence that "digs" in and asks all the questions that “live” inside and the 2nd and 3rd level questions that’s don’t ‘live’ on a 1003. A completed ‘1003’ is quite useless even when completed, the real pain in your operation begins and ends with an accurate 1003 and all supporting docs. PerfectLO creates a ‘spot on’ doc checklist and offers a secure upload. A customizable dashboard with milestone SMS notification portal to keep your borrowers and agents updated throughout the process. Sign up for a free trial and demo. PerfectLO’s online questionnaire takes a non-intimidating, logical and systematic approach. Easy to adopt and onboard. This cloud-based software in every language and talks to all LOS’s.
 
The number one financial fear is the inability to afford future needs. With the sandwich generation approaching the combined costs of sending the kids to college, caring for aging parents, and saving for retirement, the future is all too imminent. What if you could offer your clients something that allows them to look forward to a comfortable retirement AND pay off their mortgage faster? The All In One Loan by CMG Financial is your solution to growing your business while the rest of the market contracts and this is your opportunity for a hands-on training. CMG Financial’s Wholesale Division is hosting a cross-country seminar series to introduce mortgage professionals and their referral partners to the All In One Loan. Next stops include Irvine, CA on Sept 18th and Bellevue, WA on Sept 19th. To see the schedule of training events and webinars visit: http://cmgfi.com/wholesale/aio or email AIO@cmgfi.com
 
Training and Events
 
It’s not too late – there is still time to register! American Pacific Mortgage has released the complete agenda for their 2018 Fall Symposium: The Power of You! The Symposium will be held in San Diego on September 13-14 at the Marriott Marquis. I’m excited to be part of the General Session on Friday, where I will be interviewing renowned industry leader, Angelo Mozilo. Other speakers include: Sue Woodard/CCO Total Expert; Dale Vermillion/Mortgage Trainer; Stan Phelps/TED speaker; & Meredith Oliver/Personal Brand expert. The jam-packed agenda and breakout sessions are designed to empower, advance and elevate YOU to grow your production. Click here to register or contact Dustin Block (303.378.3166).
 
On Saturday, October 20, 2018 more than 1,500 independent mortgage brokers, loan originators and processors will join together at the AIME Fuse 2018 National Conference to learn from industry experts about how they can access the best technology, originate more loans each month and become a marketing expert for their own business. AIME Fuse will unite the nation’s most passionate mortgage professionals around a singular focus: to celebrate and enhance the value of independent mortgage brokers. This is the inaugural national event for the Association of Independent Mortgage Experts (AIME) and will be held at Bellagio Las Vegas. Use code FUSEEARLY18 to register for only $75 ($125 value) until August 31st. Register for AIME Fuse 2018 here.
 
As Hurricane Florence bears down on the East Coast, it’s not too late to register for the NEMBC annual three-day conference, September 12-14 in Newport. Come and get the most relevant and up-to-date information to help you develop your strategies for success.
 
Join MBA St. Louis on September 13th for a full day of Learning, Networking and discussions in the mortgage industry. Get the Latest updates from Freddie Mac, Fannie Mae, USDA, FHA, and the VA, discover better ways to network, questions answered about the appraisal process plus S/E Income Review.
 
Now is the perfect time to learn how HomeReady® mortgage can help more of your low- to moderate-income borrowers become homeowners with as little as 3% down. Join Fannie Mae on September 13 at 2PM ET for a live webinar geared toward loan officers (but open to all lenders and housing professionals). This webinar will demonstrate how HomeReady features can help you serve more borrowers and grow your business and flexibilities specific to HomeReady and leave plenty of time to answer your questions. Register today.
 
The 14th Annual HomeFree-USA Reaching Millions Conference is set for September 17th-19th in Washington, D.C. The educational and leadership development conference will feature nationally renowned speakers like Stedman Graham, Quicken Loans’ CIO, Linglong He, mortgage banking CEOs and sales leaders. This is an industry can’t miss opportunity designed to Increase homeownership and financial success among low-to-moderate income and people of color, Elevate the stature and increase the impact of government, nonprofit and for-profit housing and homeownership providers and Create and strengthen public/private partnerships.
 
On September 17th, Join Mountain West Financial featuring Tonya Todd, SVP Affordable Housing and special Guest Brian Scholz, National Trainer with Freddie Mac for a HomeOne Mortgage webinar.
 
Register now for the next FREE webinar from the California MBA’s Mortgage Technology & Marketing Committee (MTAM) on September 20th at 11 a.m.  This month’s webinar is hosted by Charles Warnock of The Content Marketing Factory, and will feature Joe Dahleen, EVP & Chief Strategy Officer at Mortgage Hippo, Mikhail Cook, SVP Sales, ServiceLink, and John Seroka, Principal of Seroka Brand Development.  You’ll learn how to how to create and deliver powerful user experiences and bring the “lender for life” concept closer to reality.
 
CMG Financial’s Wholesale Division is hosting a cross-country seminar series to introduce mortgage professionals and their referral partners to the All In One Loan. Next stops include Irvine, CA on Sept 18th and Bellevue, WA on Sept 19th. To see the schedule of training events and webinars visit: http://cmgfi.com/wholesale/aio or email AIO@cmgfi.com
 
Register now for the MERS West Coast eMortgage Boot Camp on November 15 in Irvine, California. Prepare yourself for an action-packed day of learning about eMortgages: benefits, the changing landscape, implementation best practices and the legal perspective. 
 
Are you registered for the 2018 Pacific Northwest Mortgage Lenders Conference September 23rd-24th in Seattle? Choose from the 3-day, 2-day or 1-day event based on your individual needs and availability.  Visit the website to view the full schedule event by the hour and registration details.
 
It’s the return of the Colorado Mortgage Summit, being held Tuesday, Oct. 2nd, now at the convenient Denver Marriott Westminster (with a bonus state and federal NMLS class there on Wednesday, Oct. 3rd). Sessions include how to pump up your purchase mortgage business to discovering how to best serve the burgeoning Millennial market. You’ll learn from a great interactive session on the Whole Tale of Wholesale, to awesome speakers on how to take more market share to sales strategies of the nation’s best MLOs, you’ll find an agenda that’s got a terrific mix of compelling sessions.
 
Join me! On October 25th at Wente Vineyards in Livermore, CA join me, the California MBA and their President’s Council member Riivos for a CFO Peer Group Luncheon event.  My colleague, Joe Garrett, and I will speak on planning for 2019, mergers and acquisitions and other top of mind issues for independent mortgage bankers.  These CFO Peer Group events are designed exclusively for CFOs and senior finance executives and provide opportunities to both gain industry knowledge as well as develop relationships with your counterparts in the industry.  This is open exclusively to members of the California MBA.  If you’re interested in attending this free event that includes lunch and the program, please contact Susan Milazzo for more information.
 
Back for its fourth year, MBA’s Whole Loan Trading Workshop, November 7th and 8th,  is headed to Houston for a full day focused on the active market for whole loans. This is your opportunity to hear directly from industry experts who are involved in the buying and selling of whole loans, as well as those involved in the servicing transactions coupled with these trades. This workshop has limited space and spots fill up quickly, register today.
 
MBA’s Summit on Diversity and Inclusion brings together industry leaders for in-depth, productive discussions on this seminal topic. Be a part of the event November 27th -28th in Washington, DC.  
 
Capital markets
 
The officials within the U.S. Federal Reserve arguably know more than anyone else regarding the direction of short term rates. What’s on their minds? Fed Chairman Powell stated that the economy is “strong” and able to manage slow but steady rate increases. Inflation is close to 2% and the past has shown that "doing too little comes with higher costs than doing too much" when trying to control inflation. And Cleveland Fed President Mester said she believes there is enough drive in the economy, along with almost 2% inflation, to warrant additional rate hikes this year. She forecasts GDP to be close to 3.00% for the year.
 
There isn’t a lot of reasons for rates to drop. Recent economic data continues to point towards solid modest economic growth in the third quarter. July’s data on income and spending showed real consumer disposable income as well as consumer spending both increased 0.2 percent and the savings rate was little changed at 6.7 percent. Inflation as measured by the Personal Consumption Expenditure Price Index was up 0.1 percent during the month. Second quarter GDP was revised up slightly due mostly to stronger corporate profits than first reported. New unemployment claims remain at low levels and were at 213,000 for the week ending August 25. As of this writing, the implied odds of a 25-basis point increase in the fed funds target at the September FOMC meeting are 99 percent, according to the CME Group. 
 
Looking at the price action from last week, rates rose markedly to close things out with the U.S. 10-year edging +6bps to finish at 2.94%. Mostly attributable to a better than expected Employment Situation Report for August, which not only strengthened expectations for two more hikes in 2018, but also boosted the likelihood of another rate increase in March 2019. Dallas Fed President Robert Kaplan said that policymakers have until mid-2019 to decide whether rates should become restrictive. And despite President Trump’s focus on the anonymous NY Times op-Ed, he did have time to tell reporters gathered aboard Air Force One that another round of tariffs on $267 billion worth of imports from China is "ready to go.” President Trump also said that trade negotiations with Japan will be opened.
 
Turning to this week, today (and tomorrow less so) should see lighter staffs with many out for Rosh Hashanah. Today’s calendar does not contain any first-tier data but kicks off with the Employment Trends Index for August at 10AM ET. Boston Fed’s Rosengren and Atlanta Fed’s Bostic are each speaking in their respective states. Finally, July consumer credit will be released at 3:00pm.
 
Tomorrow we will receive August NFIB Small Business Optimism, July JOLTS — Job Openings, and July Wholesale Inventories. Wednesday: the usual MBA Mortgage Index and August PPI figures before Thursday brings August CPI and jobless claims. The week rounds out with August Retail Sales, import/export prices, and industrial production. We start the week with the 10-year unchanged at 2.94% and agency MBS prices little changed versus Friday’s close.
 
 
(Warning: don’t read if offended by jokes about clueless male dentists.)
A woman goes to the dentist complaining of pain with her tooth.
The dentist, after the checkup, tells her she is going to need a root canal!
She says, “Holy smokes doctor, I’d rather have a baby!”
He replies, “Make up your mind. I’ll have to adjust the chair!”
 
 
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, “What Does Affordable Housing Mean? If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
 
Rob
 
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)