LenderNews by Rob Chrisman
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May 29: LO & AE jobs; cap. mkts. & LO products; servicing pool for bid; upcoming events & training; Italian news driving rates

May 29, 2018

Plenty of people I know agree with the this Forbes article titled, “We Have Learned Nothing From The Mortgage Market Meltdown.” For example, certainly I hear grumbling from industry vets about the waning tax transcript requirements some lenders have. “I’ve seen dozens of potential loans where the tax transcript didn’t match what the borrower was telling us – sure signs of fraud – and the borrower went elsewhere,” one regional manager told me a few weeks ago. Be careful out there!
 
Employment & promotions
 
National MI seeking to hire an Inside Sales & Support Specialist. “If you are looking to join a progressive organization with a great culture recognized year after year as a “Great Place to Work” in both financial services and in the Bay Area, then look no more. National MI has an opportunity for you. The Specialist will work closely with our field-based representatives to ensure we capture and develop all business opportunities. The Specialist will also be responsible for effectively managing the sales process and liaising with field sales in their assigned territories to drive market coverage. The Specialist will be responsible for providing customer service by promptly answering calls, assessing the request and providing timely, accurate responses to sales. The Inside Sales & Support Specialist must live in the San Francisco, Bay Area as this position is based in Emeryville, California. For details please refer to our posting by clicking here: National MI Careers.”
Living in an ivory tower isn’t recommended, but hosting a cocktail party in one is fine – Top mortgage originator and servicer Caliber Home Loans, Inc., one of the fastest-growing non-bank mortgage lenders in the nation, is hosting a Cocktail Extravaganza June 6th from 6:00 to 9:00 pm in the Ivory Tower’s 55th floor Apex Social Club.  Plenty of senior Caliber executives and Divisional VPs are flying in from every region, so the VIP guest list is expected to fill up quickly. Russ Smith, EVP National Production remarks, “Caliber continues to gain substantial market share year over year because we are different. We retain our servicing, have leading edge technology and are financially stronger than any non-bank top 20 Distributed Retail lender. Come visit us to learn how we can help make you more successful!” Contact Jeremy DeRosa, SVP National Recruiting for more details (949-413-3559).
 
Digital Risk LLC announced the appointment of Jim Jajtner as VP of Diligence Services. Jim has 18 years’ experience in underwriting, regulatory compliance, training, residential and commercial loan servicing, loss mitigation and collections in the mortgage industry, and will manage and further streamline the day-to-day operations for internal Due Diligence Underwriting teams along with managing workflow to achieve department quality, delivery, productivity and profitability goals.
 
Lender products
 
It’s raining purple at Computershare Loan Services. In 2011, Computershare (ASX: CPU) entered the US mortgage market with the acquisition of Specialized Loan Servicing. In 2016, CPU acquired Capital Markets Cooperative, CMC Funding , Credit Risk Solutions (formerly Altavera Mortgage Services) and launched Property Solutions to build out CLS’ end-to-end mortgage solution. On May 21st, the service lines updated their brands to visually align with the global CPU brand. CLS is led by a team of seasoned industry experts including Tom Millon, Brian Simons, Jim Smith and Toby Wells. Learn about all of CLS’ solutions including processing, underwriting, closing services; cooperative memberships; servicing acquisition; subservicing products; valuation, asset management and title services at ComputershareLoanServices.com.
 
“The platforms … the platforms …” we heard it again at the MBA Secondary with bulk released trades facing off against MBS and co-issue deals on trading platforms. Resitrader is “defying gravity” with over $14B in monthly bid volume and more growth in its seller base. Jumbos are beginning to trade and there’s a push to get ready for non-QM. Times are a’changin’. 
 
How good is your organization at keeping your borrowers informed in how their loan is progressing and providing regular updates? According to the STRATMOR group, if done poorly, you could be dropping your borrower satisfaction by up to 33%! Critical to providing useful and impactful updates in a scalable way for organizations is a good digital mortgage platform. Digital mortgage leaders like Maxwell are helping lending teams keep their borrowers up to date throughout the entire loan process in an intuitive manner through both automated and fully customizable messages for milestones and task statuses. It’s great to see the right technology not only drive internal efficiency but improved borrower satisfaction. A true “Win-Win”. To see how Maxwell can fit inside of your organization, visit us and request a demo today! 
 
Never lose another preapproved customer again! HomeScout®-HBM understands the challenges that lenders face when trying to service and retain preapproved borrowers who need to find a house. A local branch manager recently revealed that they estimate they are losing up to 25% to 30% of their preapproved buyers to the competition via public search sites. Siting the lack of monitoring and timely communications as being the culprit. HomeScout provides the only lead conversion solution that features an online back office that gathers business intelligence, indicating to loan officers when to deliver responses and communications. Staying relevant with borrowers throughout the buying process improves retention by keeping them off public search sites where they can be sold to the competition. Find out how by visiting them at the Mastermind Summit, June 6-8 in Las Vegas. For more information and schedule a demo contact them HERE or call at 952-831-0623.
 
Lender events & training
 
Industry professionals will gather to discuss the issues affecting women today in the mortgage industry at the Boston Women’s Mortgage Leadership Roundtable on June 7 from 11AM to 4PM, at the Granite Links Golf Course in Quincy, MA. The free event is being sponsored by National MI, a subsidiary of NMI Holdings, Inc., a California-based private mortgage insurer, along with Accenture. Hosting the event will be Claudia Merkle, National MI’s President and winner of HW’s 2017 Vanguard Award, and speakers will include Claudia, nationally recognized executive coach Diane Ripstein and Sarah Valentini, co-founder and President at Radius Financial Group Inc.  and others. To register for the roundtable, contact Tracy Berry.
 
Todd Duncan recently announced his 26th Sales Mastery Event in San Diego, California on October 10-13, 2018. The event consists of four days of world-class keynote speakers, top producer loan originator panels, showcased TED styled talks, and an industry specific vendor expo. Over 60,000 Originators, Managers, and Real Estate Agents have experienced this game-changing event. With an audience of over 2,000 anticipated this year, it’s a perfect place to showcase your company, resources, and products. If your company would like to be one of 25 vendor-partners at the longest running event in the mortgage industry, download the Sales Mastery 2018 Sponsor Guide or click here to email Ashley Donahoe to reserve your spot.
 
FAMC published its June 2018 Wholesale “Customer Training Calendar”.  This month’s calendar offers a variety of training opportunities such as “Mortgage Fraud”, “Fannie Mae and Freddie Mac:  Understanding Your Options”, “LinkedIn Strategies”, “Implementing Fannie Mae’s Day 1 Certainty”, and “Selling in a Rising Rate Market”.
 
Register for one or all of the Arch MI June webinars on loan processing, appraisals, analyzing tax returns and much more. Register for the Arch MI June 7th complimentary Day 1 CertaintyTM webinar to learn how this innovative solution speeds up the data validation process.
 
Plaza has posted its June training webinars including topics such as liquid assets, Plaza’s FHA 203(k) standard and limited renovation programs and condo financing options.
 
Clark, Schaefer, Hackett CPA & Advisors is hosting a webinar on Wednesday, June 6th to provide an update on the latest tax, financial reporting and accounting developments facing community banks.
 
Gooi Mortgage, Fulfillment Solutions & PlainsCapital Bank National Warehouse Lending is hosting a Cyber Security webinar on June 11th. Space is limited, RSVP to Laura Rosenberger or Todd Krennrich.
 
In Seattle on June 12th, Representatives from the Federal Housing Administration (FHA) will conduct a free, two-day, on-site, instructor-led training that will cover a wide-range of topics.
 
Join PRMG University on June 18th to learn about an exciting option for borrowers that will protect their down payment on Conventional, FHA and VA products via the PRMG +Plus Down Payment Protection.
 
Join PRMG University on June 22nd to learn more about PRMG’s AMPLIFLY™ Marketing Portal for TPO and explore the different tools available to market yourself as well as co-brand partners for success.
 
This year’s MBA Risk Management, QA and Fraud Prevention Forum 2018 (RMQA18),  September 23-35 in Las Angeles, agenda focuses on restructuring the loan quality process in the digital mortgage world to ensure reliable data, efficient processes, advanced analytics and absolute compliance. Its full list of sessions is now available.
 
Servicing news
 
Mortgage Industry Advisory Corporation (“MIAC”) is pleased to offer, as exclusive agent, a $23 million pool of reperforming residential first lien whole loans. The Seller prefers to sell the loans on an all-or-none basis but will consider carves and all loans are offered on a servicing released basis. Loan characteristics are: Interest Rate Range: 1.5% to 13.28%, 76.72% Modified Loans, Geographic Concentration: CA, NJ, IL, FL, and NY, Average Total UPB: $196,937.40, WAC: 4.353% Aggregate LTV: 75%, WA FICO: 586, WA Months Performing: 7.57. For additional information, please contact Steve Harris.
 
Trends in servicing? There’s an active market out there. Banks are buyers, as well as non-banks, REITs, and private equity firms are buying conventional conforming servicing. And at a 5-multiple level in some bulk deal cases! On the Ginnie side, for FHA & VA loans, 3 multiples are out there from REITs and private equity funds – banks are on the sidelines. Why? Because of Basel III, additional capital is required by a bank to retain servicing making the MSR (mortgage servicing right) less attractive. Servicing experts are watching for Ginnie potentially changing capital requirements or implementing stress tests, MSR values to increase with rising rates, and continued cash flow problems for smaller lenders who had hoped to retain servicing. Phoenix said MSR values are up sharply in 2018 with good liquidity, many investors, and prices at their best levels since 2014. And in terms of execution, Tom LaMalfa’s survey this year at the conference asked, “When you sell servicing, is it usually on a bifurcated basis?” The majority answered, “No.”

 

Capital markets
 
Rates slid down again Friday amid growing political uncertainty in Europe. In Italy, Prime Minister-designate Giuseppe Conte has yet to form a cabinet. Meanwhile in Spain, opposition parties have taken aim at Prime Minister Mariano Rajoy after 29 people related to Mr. Rajoy’s party were convicted of corruption-related offenses on Thursday. Finally, on the international front, North Korea’s vice foreign minister said his country remains open to meeting U.S. leadership on June 12 or at a different time.
 
Looking back at last week’s economic releases, new orders for durable goods declined in April after increasing in March, though accounting for the revisions, the April report was a bit better than expected. Additionally, it will factor as a positive input for Q2 GDP forecasts. The University of Michigan Consumer Sentiment Index for May was revised to 98.0 from the preliminary reading of 98.8, showing consumers expect smaller income gains than they did a month ago, or a year ago, despite thinking the unemployment rate will stabilize at its 18-year low of 3.9%.
 
We’re a global economic village, and this morning we’re reminded of that. Not only are oil prices dropping, but efforts to form a government in Italy failed over the weekend and the country will very likely be forced to hold another election (perhaps as soon as Sept). The world is concerned about 5-Star and the League capturing more support once Italians head back to the polls (5-Star and League are considering joining forces and running as a single political force in the next election).
 
Up until this weekend, world markets didn’t care much about Italy, but without much else going on, anxiety levels are likely to rise into the second election as investors view it more as a referendum on euro membership and thus the chaos in Rome risks becoming more systemic. And Italy isn’t the only political risk in Europe as Spain’s government faces a confidence vote this Friday. Eurozone economic growth was already softening.
 
It’s Tuesday already! Kicking-off this holiday-shortened week is the S&P/Case-Shiller Home Price Index for March (previously 0.8% MoM, 6.8% YoY). May consumer confidence at 10:00am is seen ticking lower in the Reuters Poll to 128.0 vs. 128.7 with the Dallas Fed Texas Manufacturing Index for May due at 10:30am. At 11:30am, Treasury will auction $48 billion 3- and $42 billion 6-month bills followed by $40 billion 1-month bills at 1:00pm.
 
Tomorrow, we have the weekly MBA Mortgage Index, May ADP Employment Change, some Q1 GDP estimates, April Advance International Trade in Goods, April Advance Wholesale Inventories, and April Fed Beige Book. Thursday sees Personal Income and Personal Spending, PCE figures, the jobs report, Chicago PMI, and pending home sales, before we have payroll figures Friday. Driven by the knee-jerk reaction to the Italian turmoil, and lower oil prices, rates are lower this morning than Friday’s close: the 10-year is yielding 2.88% and agency MBS prices are better .125-.250.
 
 
Health and exercise!
I finally realized that I needed to get in shape, so…
I made plans to join a club and work out for one full year, at least 5 times a week.
The year I picked is 2023.
 
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 Plight of the Small Independent Lender.” 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.)