LenderNews by Rob Chrisman
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Oct. 31: AE & LO jobs, digital mortgage product; training & events; lender & investor disaster updates

October 31, 2017

Hard to believe it is Halloween already, and lenders everywhere are mired down in contests. (“Remember the shipping department’s M*A*S*H get-up last year?” “I’m convinced the accounting department rigged the books last year on the vote.” “I still think post-closing’s vampire brothel a few years ago was the best. Too bad all of them got fired.”) Time marches on, and the U.S. states will change clocks this weekend, at the end of what is known as Daylight Saving Time (DST). DST always ends on the first weekend of November. But not every state adheres to this. Both Arizona and Hawaii have decided against DST. There are also efforts in New England and Massachusetts to stop using the system and move to the Atlantic Time Zone, an hour ahead of the Eastern Time Zone that the state currently follows. And there’s a petition to end changing our clocks entirely.
 
Employment & products
 
Endeavor America Loan Services continues to expand its wholesale presence across the U.S. with additions like Barbara Yolles new Chief Marketing Officer, James Hooper SVP of Wholesale, Thomas McGoldrick and Phil Gouskos Divisional Vice Presidents along with seven new account executives in the past 30 days. Endeavor America has also reduced its FICO score requirements on its ESP program from 720 to 700, so more borrowers qualify for our already great pricing. With our proprietary technology EASY we really make it EASY for brokers to close loans better than ever today! We are looking for Experienced Wholesale Account Executives in all markets today to join the EA Family. Please contact Silvana Momika to set up a confidential interview and/or visit us at www.EAwholesale.com.
 
The Nevada Housing Division just announced that iServe Residential Lending’s Reno Sales Manager, Sam Britt, has been named the 2017 Top Overall Producer by the Nevada Housing Division. iServe was also named the #1 lender in delivery time. The prestigious award was presented at the housing agency’s recent “Home is Possible” awards event. Both Sam and iServe were chosen from among dozens of Nevada residential mortgage lenders. The program has helped over 14,000 Nevada families achieve home ownership. Co-CEO Ken Michael adds “Sam’s dedication to the Home is Possible program is exemplary. It also demonstrates our values here at iServe and wouldn’t be possible without a dynamic and supportive corporate culture every step of the way”. iServe is a multi-state mortgage lender offering a complete menu of loan products. For more information on aligning with iServe and taking advantage of its quality and speed of service, visit iServe on the web or contact Allen Friedman at 415-298-2500.
 
Are you looking for a digital mortgage solution without lengthy implementation timelines and headaches? Maxwell may be perfect for you. Maxwell is the leader in lightweight digital mortgage solutions and is built with small and mid-size lenders in mind. Maxwell helps collect borrower docs up to 73% faster! Driving this is their FileFetch technology that links to thousands of financial institutions to automatically pull in actual bank statements, paystubs, full tax returns and more. Plus, just this week, Maxwell released their direct integration with The Work Number®, enabling a seamless VOE/VOI experience, reducing borrower friction and speeding up processing. Click here to learn more about Maxwell and schedule a demo today!
 
MidwestOne Bank is seeking Mortgage Bankers for its Denver, CO, Ft Myers, FL and Naples, FL locations. “We are a growing community lender that offers both in-house portfolio products, Fannie direct, servicing retained and other secondary market loans. With an aggressive income package and excellent benefits, we also offer a supportive culture and a ton of resources to grow your business. Contact Laura Kay Sheely for more details. MidWestOne Bank offers banking, loans, mortgages, investing, and trust headquartered in Iowa City, Iowa.
 
loanDepot has announced a partnership with real estate technology company, OJO Labs. “As the new mortgage provider for the artificial intelligence-powered assistant known as OJO, consumers will now engage in a personalized mobile experience leading up to their purchase, accessing invaluable mortgage information prior to interacting with a Retail Loan Officer. loanDepot’s investment of more than $80 million to develop proprietary technology over the last two years, has been an integral component in forming partnerships with other innovators. As consumer behaviors continue to evolve, combining loanDepot’s digital lending platform, mello, with OJO’s breakthrough technology has generated a powerful tool to drive value for Retail Loan Officers and local real estate agents. OJO, the interactive assistant, will deliver homebuyers personalized micro experiences through human-like text conversations and offer digital mortgage pre-qualifications through its integration with mello. This initiative is another example of loanDepot’s constant effort to remain at the forefront of an increasingly digital mortgage industry.” Learn more about their technology by clicking here.
 
Training and events:
 
Want to elevate your production to new heights in 2018? Don’t miss this year’s final Leadership Lessons Webinar, "Pardon the Disruption: Plan to Elevate Your Business in 2018" on Thursday, November 9 at 2PM ET. Featuring a roundtable discussion with XINNIX CEO Casey Cunningham and some of the industry’s top producing sales managers, this webinar will empower you with the planning strategies you need to make 2018 your most productive year yet. Click here to sign up today!
 
If you’d like to learn more about reverse mortgages, Don Currie, the president of HighTechLending Inc., is offering up a webinar tomorrow on the subject from 2-3PM PT.
 
Chicago in November is pleasant. The MBA is hosting its “Whole Loan Trading Workshop” there on November 9th.
 
If you feel like coming to San Francisco next month, the National Reverse Mortgage Lenders Association will be having its annual meeting & expo November 13-15. Register at www.NRMLAonline.org.
 
Looking for some MI training? You can view MGIC’s November training options here.
 
Register for the 2017 Annual Meeting & Holiday Dinner Celebration of the MBAH which will be held on Thursday, December 7, 2017 from 5:00pm to 7:30pm at the Plaza Club. Cost is $25 per person (Holiday Dinner Buffet and 2 drinks included).
 
Register for the MMLA Southeast Chapter event “How to Recruit, Train and Retain Millennials” on November 16th 11:30-1:30 at Maggiano’s Little Italy. The fee is $30 per member and $40 per non-member.
 
Disaster updates
 
FHA published Mortgagee Letter 2017-15, Extension of Initial Disaster Foreclosure Moratorium for Properties in Specified Areas Impacted by Hurricanes Harvey, Irma, and Maria.
 
HUD Secretary Ben Carson allocated an additional $57.8 million to help Texas recover from Hurricane Harvey. The grant is provided through HUD’s Community Development Block Grant – Disaster Recovery (CDBG-DR) Program. Combined with CDBG-DR grants already allocated to the State of Texas from disasters that occurred in 2015 and 2016, HUD’s support of long-term disaster recovery in the Lone Star State now totals more than $371 million. HUD relied upon the best available data from FEMA to allocate the recovery funds announced today and evidence supports the immediate allocation of the $57.8 million. The Department opted to allocate the funds to Texas as it has an existing recovery plan, because of funds awarded for 2016 disasters, that can serve as a rapid launch platform for the use of these funds.
 
Freddie Mac posted temporary selling requirements related to California wildfires.
 
FHA issued waivers 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 Presidentially-Declared Major Disaster Areas in certain municipalities in  Puerto Rico impacted by Hurricane Maria (Maria) and certain counties in the state of California impacted by wildfires (Wildfires).
 
In response to the California wildfires, Sellers must follow Wells Fargo Funding’s standard Disaster Policy for all properties located in ZIP codes that Wells Fargo Funding has determined were impacted by wildfires. If a property is in a FEMA-declared county, but not located in a Wells Fargo Funding-identified ZIP code, Sellers must comply with Wells Fargo Funding’s representations and warranties, as well as investor requirements, but do not have to comply with Wells Fargo Funding’s Disaster Policy overlays (e.g., Seller’s certification/inspection).   Properties located in ZIP codes on the Wells Fargo Funding list must follow Seller Guide sections 820.19: Disaster Policy and 820.20: When Required. Properties located in FEMA-declared counties, but not located in a Wells Fargo Funding- identified ZIP code, must adhere to Wells Fargo Funding’s representations and warranties, as well as investor requirements. Government Loans must follow FHA/VA guidance.
 
PennyMac posted an announcement referencing Disaster Policy implementation for California wildfires.
 
Pacific Union Financial posted clarification to the FHA 203(h) Disaster Victims Mortgages. To qualify for a 203(h) loan, a previous residence (owned or rented) must have been in a Presidentially Declared Major Disaster Area (PDMDA) and destroyed or severely damaged to such an extent that total reconstruction or replacement is necessary.  A homeowner or renter is not eligible for 203(h) financing based on temporary displacement while repairs are being completed on a property that was not damaged to the extent that total reconstruction or replacement is necessary. Interested parties may contribute up to 6% of the sales price toward the borrower’s origination fees, other closing costs and discount points. Contributions that exceed 6% are considered inducements to purchase and will result in a dollar-for-dollar reduction in the purchase price when computing the adjusted value of the property before applying the appropriate loan-to-value (LTV) percentage. Mortgage payments three or more months’ delinquent require documented extenuating circumstances, such as forbearance, postponement, or other options provided by the servicer. The Underwriter must approve the documents submitted.  
 
To avoid delays in completing loan transactions and to expedite the process, Mountain West Financial Wholesale Operations will order the property re-inspection, when required, so that impacted loans may be closed and funded in a timely manner.  
As of October 16th, Mountain West Financial is offering the FHA Disaster Loan 203(h) program. This Mountain West Financial first mortgage program is available for victims of a Presidentially-Declared Major Disaster Area (PDMDA). The FHA Disaster Loan 203(h) program is like the FHA 203(b) program, with an added benefit of lower minimum fico scores and higher max LTVs. 
 
PennyMac has made updates to its disaster policy implementation for the California wildfires.
 
Mid America Mortgage has been taking steps to assist lenders and borrowers affected by recent disasters. In addition to donations, Mid America announced it will also purchase loans on properties located in areas impacted by the recent storms or fires. This includes both government and conventional loans underwritten to agency guidelines.
 
Capital markets
 
Let’s take a moment to think back on last week’s GDP number. The US economy expanded at an annual rate of 3% in the third quarter, just short of the 3.1% growth it achieved in Q2, the Commerce Department said. Hurricanes Harvey and Irma did a lot less to slow the economy than experts anticipated. It is very difficult to argue that our economy is not doing well. And a flourishing economy tends to force rates higher as the demand for capital (borrowing) increases.
 
Despite that, U.S. Treasuries ended Monday with solid gains, erasing their losses from last week. Why? Personal Spending growth outpaced Personal Income growth in September, which is not a long-term plan for success, and there were reports that the highly-anticipated corporate tax cut could be implemented in staggered fashion over a five-year stretch. And distractions continue: former Trump campaign manager Paul Manafort was indicted on 12 charges and former adviser George Papadopoulos pleaded guilty to lying to federal agents.
 
This morning we’ve had the Q3 Employment Cost Index (expected +.5%, it was stronger at +.7%). Coming up are the August S&P Case-Shiller Home Price Index, October Chicago PMI, and October Consumer Confidence. We ended Monday with the 10-year yielding. This morning rates are almost unchanged with the 10-year at 2.37% and agency MBS prices worse a smidge.
 
 
When does a ghost have breakfast? A. In the moaning.
What do ghosts drink at breakfast? A. Coffee with scream and sugar.
Where does a ghost go on vacation? A. Mali-boo.
Where does a ghost go on Saturday night? A. Anywhere where he can boo-gie.
Where did the ghost get its hair done? A: At the boo-ty shop.
Riddle: the maker does not want, the buyer does not use it, and the user does not see it, what is it? A. a coffin.
What do they teach in witching school? A. Spelling.
Why does a witch ride a broom? A. Vacuum cleaners get stuck at the end of the cord.
What do you call a witch’s garage? A. A broom closet.
What do you call two witches living together? A. Broommates.
What do you get when you goose a ghost? A. A handful of sheet!
 
 
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, “Will User Names and Passwords Go the Way of Thermal Fax Paper?” 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 2017 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.)