LenderNews by Rob Chrisman
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Sep. 7: UW & LO jobs, business opportunity; Milken & housing finance reform; Irma’s impact on warehouse & loan funding in FL

September 7, 2017

As I head out of Florida this morning, it’s all about Irma. With wind speeds of 185mph, it is expected to pass near or just north of the coast of the Dominican Republic today, Cuba Saturday, Florida Sunday. Lenders, agencies, and investors are already reacting – info below.
 
Jobs, LO training, & expansion
 
Pacific Union Financial, LLC is well known for our limited overlay lending on government products. We price aggressively, we lend on FICO scores as low as 560, and we have a polished, experienced Underwriting team with manual underwrite expertise. If you are an experienced AE and feel like you are restricted, missing out on opportunities because of your company’s overlays, please contact Greg Armstrong, Western Division Manager or Susan Trejo, Corporate Recruiter – especially if you’re in Utah, Colorado, New Mexico, Washington, Idaho, Montana, Arizona or California’s Central Valley or Inland Empire. Let’s talk!”
 
Evergreen Home Loans is GROWING and looking for a Regional Underwriting Manager. Since 1987, our focus has been on providing a WOW full service home buying experience. We originate, fund, and service home loans and have approvals with Fannie Mae, Freddie Mac and Ginnie Mae. Candidate must be able to work on site at one of the EHL Operations Centers located in Vancouver, WA or Lake Oswego, OR. Evergreen was honored to be named #1 Best Workplace in Washington by Seattle Business Magazine in 2017. Fortune Magazine ranked Evergreen no. 12 in their national survey of best workplaces in finance and insurance and Fortune named Evergreen a 2016 Great Place to Work for Women. Join our team today! Please contact Arlene Evans -Talent Acquisition – or apply online here.”
 
All Western Mortgage is pleased to announce “Yong Choi has joined us as Director of National Sales responsible for the leadership of our national sales initiative, developing new business opportunities while focusing on growth in key markets. Yong is a 25-year retail mortgage veteran with proven success in leadership positions at several of the nation’s largest lenders. ‘Yong’s background and depth of experience will help us expand our presence as a leading mortgage banker” said Chris Biaggi, President/CEO of All Western Mortgage. All Western Mortgage is aggressively growing throughout the United States, providing both branch and LO opportunities for those looking to grow their business. We are a company large enough to provide the tools you need to be successful but still understands the importance of service and personal relationships within its organization. If this interests you contact Yong Choi at 909-376-5494 for more information.”
 
PRMG Retail continues to expand its footprint nationwide by opening 8 new branch locations during the month of August! Along with the drive and ambition to bring the American Dream of Homeownership to all cities across the country, PRMG has now opened its doors in Carlsbad, CAOrange Park, FLTampa, FLReno, NVNorthfield, NJParamus, NJBroken Arrow, OK and Las Vegas, NVPRMG is devoted to growing our retail platform and is always looking for Motivated Loan Originators to support our mission to being ‘Progressively Better in All that We Do.’ Voted No. 1 of the 50 Best Companies to Work for in America 2015, No. 1 Best in the Desert 2017, NMP Visionary Organization, CAMP Corporate Affiliate of the Year and TOP 25 of 100 Mortgage Companies in America! PRMG employs over 1,500 people!  If you’re ready to join a top-tier team and company then we need to talk! Contact Chris Sorensen (909.262.0452).
 
Download your complimentary copy of “Development of the Next Generation of Loan Officers!” This complimentary whitepaper from XINNIX, The Mortgage Academy, serves as your all-inclusive guide for hiring, training, and assimilating new LO’s into your organization, giving you the step-by-step tactics you need to empower your team with incredible talent. Click here to get your free copy today!
 
A "Top 10 Retail Lender, with a deep-pockets parent, is looking to purchase/merge originating lenders with production of $500m-$6 billion annually. We offer extremely competitive compensation, pricing and sales support structure. Key areas where we would like to add new teams as part of our family are IL, MI, OK, New England, DC, OH, AL, LA, MS, MD, VA, ID, MN, MO, NM, TN, WV, WS, OR, NM, WA, and KS. We are not opposed, however, to other areas of the country as well.  We will negotiate the best terms for the best companies. A ‘plug n play’ approach allows for smooth transitions with little interruption to business flow. If interested in having an initial discussion, please email Rob Chrisman so a direct connection can be made." Please specify opportunity, and excuse any delays due to travel from Florida.
 
The clock is ticking. With audit and tax season almost here, you must be certain you’re working with the best possible firm – one with responsive, seasoned CPAs who are mortgage experts. Spiegel Accountancy Corp. (SAC) recently formed an alliance with 5X Solutions, a mortgage research and data analytics company, that combines the powerful technology of 5X Solutions’ flagship product, Telemetry MBI, with the tax and audit experience of SAC’s experts to offer you unique financial solutions to optimize performance. Email Henry Chavez for more information and be sure to ask about a complimentary advisory and financial statement reporting consultation valued at $1,500. 
 
Gold Star Financial Group COO AJ Franchi is leveraging mortgage business intelligence (MBI) technology to gain a competitive advantage through increased profitability, productivity, efficiency, and compliance. “We’ve shifted to a culture of accountability. There’s no more hiding behind emails, there’s no more hiding in individual loans. Culturally, we’ve shifted to a position where everybody is very performance-minded”. For Franchi, this was just the beginning. His desire to be at the cutting edge of how lenders interact with their data has driven him to integrate his MBI platform with Amazon’s Alexa so that his system can now respond to verbal commands and deliver critical performance information hands-free. Like hundreds of other lenders, Gold Star chose to partner with Motivity over other BI companies because no other provider can match the depth of experience and expertise in deploying this technology to mortgage lenders. Learn more about how MBI technology can lead to better performance.
 
The Milken Institute is mobilizing efforts for the next phase of housing finance reform as policymakers work through the complexities of building a sustainable system. Today, the Institute announced a new policy team with deep expertise across the field. Congrats to Eric Kaplan, a leading voice for mortgage-backed securities reform, who now heads the group as director of the Institute’s Housing Finance Program within the Center for Financial Markets. He was most recently a managing partner with Ranieri Strategies LLC and, prior to that, a managing director of Shellpoint Partners LLC, where he built a post-crisis non-agency securitization platform. The Center’s bipartisan group of senior fellows include Ted Tozer, Michael Stegman, and Phillip Swagel.
 
Disaster news: Hello Irma
 
Before going on, readers should a commentary piece yesterday was written by NerdWallet’s Holden Lewis. The article for those impacted by disasters is titled, “What to do after a disaster hits your home, mortgage,” was published on Sept. 1 and can be found on this page. Credit is due where credit is due, and in this case to Mr. Lewis – my apologies.
 
Hurricane Irma is expected to hit Florida this weekend. Between Harvey and Irma (and Jose who is a few days behind Irma) FEMA will run out of money. With its winds Irma could be much more dangerous than Harvey. Brent Nyitray writes, “Expect a quick resolution to the debt ceiling. Nobody is going to be grandstanding over the national debt with this going on.”
 
After the storm(s), the residential construction business and investment community jumps into action.
 
The House is expected to consider a $7.85 billion package for Hurricane Harvey assistance that is likely to serve as the legislative vehicle for increasing the debt ceiling. Amid rumors of warehouse banks cutting off funding, agencies, investors and lenders reminded clients of their policies.
 
Warehouse lending? I received this note from a warehouse vet. “Every warehouse lender out there has rules to ensure that all clients understand that they, ultimately, are responsible for all loans they generate and place on a warehouse line. Thus, it seems, most, but not all, clients have either stopped their own fundings or are in areas that have certified the property’s condition prior to funding.
 
“It may be that the only thing warehouse lenders do is to relax on some delivery times since the curriers will not be operating in full fashion. My clients are all big boys that wear big boy pants – it’s not for me to dictate how they run their business.”
 
Another industry vet wrote to me saying, “The question people should be asking is, ‘What does all this do to the servicing values and cash flows? The bond holders of all the Ginnie Maes don’t care about HUD waiving payments to the victims. The bond holders want their monies owed for their own constituency. Some servicers may have to dump servicing into the market at discounts thus impacting valuations for the industry.’”
 
From a correspondent investor comes, “So far I’ve only heard of issues obtaining insurance binders. My clients are not reporting warehouse issues but several are choosing not to close loans after today. Miami has officially posted evacuation zone notices, so offices will start clearing out.”
 
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and state bank regulators recognize the serious impact of Hurricane Irma on the customers and operations of many financial institutions and will provide regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions in the affected areas to meet the financial services needs of their communities. A complete list of the affected disaster areas can be found at www.fema.gov.
 
Regarding lending, “Bankers should work constructively with borrowers in communities affected by Hurricane Irma. The agencies realize that the effects of natural disasters on local businesses and individuals are often transitory, and prudent efforts to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism. In supervising institutions affected by the hurricane, the agencies will consider the unusual circumstances they face.”
 
Of particular interest to lenders looking to pick up a point or two is the Community Reinvestment Act (CRA) information. “Financial institutions may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas. For additional information, institutions should review the Interagency Questions and Answers Regarding Community Reinvestment here.”
 
Freddie Mac confirmed that its disaster relief options, like Harvey, will be available to homeowners in impacted areas. “Freddie Mac’s disaster relief options will be available to borrowers with homes in presidentially-declared Major Disaster Areas where federal Individual Assistance programs are made available to affected individuals and households…Freddie Mac mortgage relief options for affected borrowers in these areas include: Suspending foreclosures by providing forbearance for up to 12 months; Waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and not reporting forbearance or delinquencies caused by the disaster to the nation’s credit bureaus.”
 
Wells Fargo Funding sent its correspondent clients, “If your operations become affected by Hurricane Irma, please contact your Regional Sales Manager or a member of your regional team to discuss options around suspense fee relief on Best Effort and Mandatory Loans. Please watch for communications from Wells Fargo Funding…refer to our Disaster Policy in Seller Guide Section 820.19, FHA and VA Handbooks, and the FEMA website for disaster declarations.”
 
Penny Mac sent out its announcement: 17-31: Fundings Paused Due to Hurricane Irma.
 
Florida’s Multi-Bank Securities sent, “In light of the impending Hurricane Irma headed our way, we will be working remote as our office building will be evacuated starting tomorrow…We will be available for trading and customer service, just simply working remote.”
 
From Caliber comes, “The Florida governor has declared a state of emergency for all 67 counties in the state in response to Hurricane Irma…Caliber Home Loans is closing all offices in Florida Thursday September 7 and Friday September 8th and will closely monitor the situation. Additionally, Caliber will be extending locks on all loan closings in Florida.”
 
Plaza Home Mortgage sent, “…Plaza will pause funding on loans for properties located in the State of Florida…”
 
Capital markets
 
Federal Reserve Vice Chair Stanley Fischer resigned, effective in mid-October. Mr. Fischer’s term was not set to expire until June 12, 2018 so President trump now has 4 vacancies to fill on the Federal Reserve Board (not counting Chair Yellen). How will this impact monetary policy is the question. As Cantor Fitzgerald points out, “What we do know is that the President has said he ‘likes’ low interest rates. [Editor’s note: About as vague as the CFPB doesn’t like MSAs.] Gary Cohn, currently the odds maker favorite to replace Yellen as Chair, is a banker who, probably in his bones, likes low rates. It’s hard to believe that any appointee(s) would fall into the tight monetary policy school or in favor of more regulatory action.
 
“Current policy plans for rate hikes and balance sheet reduction are in place and still on track, depending on data and conditions. If there is new leadership in place after February 2018, however, the conceptual underpinnings and thrust of policy may be significantly changed.”
 
U.S. Treasuries & MBS prices ended Wednesday on a lower note, retreating after reports of an agreement between President Trump and Democratic leaders to extend the debt limit for three months. Obviously, this is “kicking the can down the road” and has inherent problems – and is just chatter at this point. The yield curve is certainly worth watching. The spread between 2-year Treasury and 10-year Treasury securities hit their most compressed levels of the year at 76.4bp. An indication that the Fed is going to raise rates again but that the U.S. economy is not doing well? That is not good for banks who tend to borrow short and lend long. But we’re still stuck in the low end of the range we’ve been in all of 2017, and the 10-year note closed at 2.11%.
 
This morning we’ll have the ECB’s release of their monetary policy decision, U.S. weekly jobless claims, and productivity and unit labor costs (fQ2). We’ll also have the usual spate of Fed Presidents speaking around the country. As I head out of Florida, it is too early to know where rates are precisely – but probably not much different from Wednesday.
 
 
One rule which woe betides the banker who fails to heed it.
Never lend any money to anybody unless they don’t need it.
(Ogden Nash)
 
 
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.)