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

September 11, 2018

“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.)