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PPE, Audit and Risk, AI/ML Adoption, Closed-End 2nd Products; Lenders and Court Cases; CRA News

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PPE, Audit and Risk, AI/ML Adoption, Closed-End 2nd Products; Lenders and Court Cases; CRA News

By:
Rob Chrisman

Mon, Jan 29 2024, 10:57 AM

“Sometimes it takes me all day to get nothing done.” But things are always changing. When I was a kid I “got a drink of water.” Now kids “hydrate.” Really? A few years ago, a good originator could do 10-20 loans per month. Now, it is rumored that 80 percent of volume is being done by 40 percent of originators, and lenders have instituted minimum production numbers: “If you’re not funding 2 loans per month, we’re going to let you find success elsewhere.” Diving into 2023’s production via NMLS looking at 234,000 records, Ingenious found that only 24 percent of originators did 24 units or more! 30 percent did 18 or more units, 40 percent did 12 or more units, and 60 percent did 5 or more units. Has the “norm” changed? Certainly a portion of marketing has shifted to people under the age of 40s, and Mortgages with Millennials with Kristin Messerli and Robbie Chrisman talking about Overlooked Strategies to Win with Millennials tomorrow at 1PM ET. Today’s podcast can be found here and this week’s is sponsored by Calque. With The Trade-In Mortgage powered by Calque, lenders help their clients negotiate a lower purchase price, reduce their interest payments, and eliminate PMI. Hear an interview with Truv’s Richard Grieser on the latest verification solutions and how lenders can combat fraud.

Lender and Broker Software, Products, and Services

Introducing The 2024 Lender Playbook: 4 Tips to Drive Profitability in a Recovering Market. How will the coming election, housing inventory, and Fed action impact the mortgage market (and your lending success) this year? There’s a lot going on in 2024, and market recovery won’t be straightforward. The good news? You can still build a strong, forward-thinking plan for resilience and profitability. Tenured industry experts from Maxwell’s senior team helped create this guide to teach you how to reduce costs, win borrower business, and capture intermittent loan volume as it reemerges in the market. To get a leg up on the competition and build agility into your business, click here to download The 2024 Lender Playbook: 4 Tips to Drive Profitability in a Recovering Market.

Unleash Opportunities with LoanStream’s new Closed End Seconds webinar on Tuesday, February 20th, for borrowers who want to tap into their equity without refinancing or help them save money by avoiding costly mortgage insurance. Plus, it’ll include an update on the upcoming CalHFA Dream For All Loan Program. Reserve you or your Team’s spot now for this informative webinar.

The human circulatory system is more than 60,000 miles long! Running a system that complex would take all your waking energy if it wasn’t automated by your brain’s blood-flow command center. As the command center of your mortgage operation, your LOS similarly coordinates hundreds of loan tasks at once so you can focus on building relationships and running your business. And soon, your LOS could become even more powerful, adaptive, and proactive thanks to AI and machine learning. But is your organization ready? A new blog from Dark Matter Technologies offers tips for building an AI/ML adoption strategy so you can plan today for a more productive tomorrow.

“In a year where companies are trying to differentiate themselves, MQMR has that solved. While we know culture eats strategy for lunch, leaders didn’t think this could be done in a virtual environment. Happy to report that MQMR has built a thriving culture with teammates in 14 states and 3 continents, a world-class employee NPS in the high 70s, and 50%+ of its clients are multi-product clients, many of whom have been doing business since 2011. For lenders seeking an audit, risk, and compliance partner, there’s only one to choose from, so choose the one that not only delivers results but someone who has a fun culture to work with! MQMR takes care of its teammates because MQMR knows those teammates take care of you. Check out our fun year-end video with an inside look at the beating heart of our culture and in case you missed Saturday’s Spotlight, MQMR was the featured company!”

Polly, leading provider of innovative mortgage capital markets technology and operator of the industry’s first cloud-native, commercially scalable product and pricing engine (PPE), just announced the appointment of industry powerhouse Troy Coggiola as COO. Coggiola’s appointment follows a record year for Polly, both in industry adoption and product innovation. As COO, Coggiola will lead Polly’s product, implementation, support, and design teams, ensuring seamless cross-organization collaboration as the company continues to scale. Coggiola is the latest in a string of notable leadership hires; Parvesh Sahi, former SVP of Business and Client Development for ICE Mortgage Technology, joined the company as CRO in 2023. Former Fannie Mae executive and industry veteran Andrew Bon Salle, as well as former Ellie Mae CEO and mortgage industry visionary Jonathan Corr sit on the company’s board of directors. Read the press release.

Legal News and Regulations

This has absolutely nothing to do with mortgages, but what happens in the court system can be puzzling. What is the value of a human life? 33-year old Bryn Spejcher, convicted of killing her boyfriend Chad O’Melia by stabbing him 108 times during a “cannabis-induced psychosis,” received two years’ probation and ordered to perform 100 hours of community service according to the Ventura County Star. That’s it. (Ventura County Superior Court Judge David Worley, appointed by Republican Governor Arnold Schwarzenegger.)

Connecticut Banking Commissioner Jorge L. Perez issued a temporary order to cease and desist against LoanSnap, Inc., and notifying LoanSnap that its state mortgage lender license will be revoked and a civil money penalty will also be issued against it. The charges against the California-based mortgage lender include alleged violations of the Truth in Lending Act and the Fair Credit Reporting Act, but the focus was on unlicensed origination activities. According to the allegations, department examiners discovered that from at least August 29, 2022, to December 2, 2022, LoanSnap employed individuals who were not licensed as mortgage loan originators in Connecticut yet acted as mortgage loan originators by taking residential mortgage loan applications, soliciting Connecticut borrowers for residential mortgage loans, and offering or negotiating terms of residential mortgage loans. These unlicensed mortgage loan originators worked in out-of-state call centers and their titles were described as “sales development representatives” or “call center representatives.”

The U.S. District Court for the Southern District of Florida denied Freedom Mortgage’s motion to stay a case filed by the CFPB after Freedom argued that judicial economy (the preservation of the court’s time and resources) favored the stay because the defendant’s pending motion to dismiss is premised on the same constitutional issue addressing the CFPB’s funding structure now before the Supreme Court. Orrick reports that, “In opposition, the CFPB argued that the Supreme Court may take months to issue a ruling, the public interest in enforcement of consumer protection laws, and the failure to show how an adverse ruling in the Supreme Court case would definitively result in dismissal of this case… The District Court sided with the CFPB, stating that as of now, the CFPB ‘is a valid agency that is entitled to enforce the consumer financial laws.’ With the stay denied, the court will now consider the defendant’s motion to dismiss.”

Mortgage banks don’t accept deposits, so can’t reinvest them in the local community. But that hasn’t stopped some states from pushing CRA requirements onto some institutions. The Illinois Department of Financial and Professional Regulation issued a proposed rule pursuant to the Illinois Community Reinvestment Act (ILCRA). The ILCRA is modeled off the Community Reinvestment Act but expands its scope of covered financial institutions to include credit unions and licensed entities. Orrick reports that, “The proposed rule establishes a framework and criteria by which the Department will evaluate a covered mortgage licensee’s record of helping to meet the mortgage credit needs of Illinois, including low- and moderate-income neighborhoods and individuals, through different tests and performance standards depending on the number of loans made by a covered mortgage licensee. Tests and considerations for evaluating licensees’ record include a lending test, service test, performance record, data collection and reporting, and content and recordkeeping of information received from the public.

“To mitigate the impact on small businesses, a licensee that has made less than 200 home mortgage loans in Illinois in the last calendar year will not be subject to the service test. Furthermore, licensees that made less than 100 home mortgage loans in Illinois in the previous calendar year will have less frequent examinations than those with more than 100. Based on the licensee’s performance under the lending and service tests, the proposed rule specifies that a licensee’s rating of ‘outstanding,’ ‘satisfactory,’ ‘needs to improve,’ or ‘substantial noncompliance’ will affect how frequently they are evaluated. Compliance with the proposed rule is required six months from its effective date, and comments are due by February 26.”

Capital Markets

Last week closed with economic growth in the fourth quarter beating forecasts as gross domestic product increased 2.5 percent for the year. Importantly, the PCE Price Index, the inflation number that matters most to the Fed, rose 0.2 percent month-over-month, as did the core rate which excludes food and energy. Trends in annual inflation numbers continue to move lower and now sit at an almost three-year low, even with strong holiday spending. That report capped a year that began with economic “experts” warning the public of a guaranteed American recession, but inflation retreated at a much faster rate than the Fed anticipated, all while a robust job market kept driving consumer spending. The most recent data has led to more optimism that the economy can power through the Fed’s efforts to corral inflation.

This week is packed with market moving potential including the latest Federal Open Market Committee decision followed by Chair Powell’s press conference on Wednesday afternoon with the Quarterly Refunding announcement Wednesday morning. The December jobs report will be released on Friday where early estimates are for an increase of 178k in headline payrolls (versus 216k in December). Besides payrolls, the U.S. calendar includes updates on home prices, ADP employment, productivity / unit labor costs, manufacturing PMIs with factory orders and Michigan sentiment. Sweden’s Riksbank and the BoE will release their latest decisions on Wednesday and Thursday morning.

Today’s calendar sees just one data point, the non-market moving Dallas Fed Texas manufacturing for January, due out during the day. There are some short-duration Treasury auctions, and the Quarterly Refunding estimate will be announced. We begin the week with Agency MBS prices better by .125-.250, the 10-year yielding 4.10 after closing Friday at 4.16 percent, and the 2-year is at 4.33.

Employment and Transitions

“We are looking for “The Best Account Executive Ever.” If this should be your title, contact me, [email protected]. Outstanding Account Executives understand the value of their relationships and so do we. Yes, product expertise is essential but first-rate relationship management puts you head and shoulders above your competition. Explore your options with Freedom Mortgage Wholesale. We are Historically, Currently and 4EVER Wholesale. Let’s connect today. Everyone wants rates to structure winning loans for their borrowers. Have you seen what Freedom is offering? Freedom Mortgage Wholesale is making brokers and borrowers happy. Check out our FHA and VA rates for best execution…for free on LenderPrice. Reach out to Freedom for more information at 855.915.4800. Freedom Mortgage Wholesale is Historically, Currently and 4EVER Wholesale.

A&D Mortgage announced the hiring of Tommy Williams, Betsy Marvin, and Lori Welton as Account Executives. “These three industry veterans bring a wealth of experience and expertise to A&D Mortgage, especially in the Conventional mortgage business” and join recent hires Andrew Taylor and Bobby Frank. Andrew Taylor is now A&D’s Senior Vice President of Wholesale Lending Sales and Bobby Frank is Senior Vice President of Wholesale Lending Strategy. Congratulations all around!

FHA Program Analyst (Computerized Home Underwriting Management System (CHUMS) Coordinator) in Santa Ana, CA. Job duties include coordinating activities related to the CHUMS

Lender Access System (CLAS). Update software to the CKAS system to permit enhancements. Monitor and assign program code identifiers for CHUMS users. Analyze CHUMS data and develop new methods of correlating and disseminating. FHA Job Announcement 24-HUD-589-P.

FHA Senior Single Family Housing Specialist (Quality Assurance Division) Job duties include acting as HUD expert and advisor required for compliance on the lender origination and servicing practices. Prepare correspondence, technical back-up documentation, status reports, schedules, and other information. Identify actions necessary for the correction of the lender’s deficiencies. FHA Job Announcement 24-HUD-587-P.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

The Hong Kong and Boston Chase Sapphire lounge locations were the first to open, and a third spot is entering the scene: As of January 2024, the Chase Sapphire Lounge at New York’s LaGuardia Airport has opened its doors.

Here is what you can expect when you visit this two-level Chase lounge at New York-LGA.

Getting to the Sapphire Lounge LaGuardia

To get to the Chase Sapphire Lounge in Terminal B, pass through security and turn right. Go past the colorful falling water fountain. At the end of the concourse, you’ll find the entrance to the Sapphire Lounge, next to the Centurion Lounge entrance.

Take the elevator down to the ground floor to enter the lounge.

Hours of operation

The Sapphire Lounge at LaGuardia is open from 4:30 a.m. to 9:30 p.m. daily. The private Reserve Suites are open from 5 a.m. to 9 p.m.

Layout

The Sapphire Lounge by The Club at LaGuardia beats out many of its competitors on square footage alone. At 21,850 square feet, this massive Sapphire Lounge can fit a maximum of 269 people. The Centurion Lounge next door comes in at less than half the size by square footage.

There are two levels. The lower level has seating areas, play areas (not just for kids), relaxation rooms and the main dining area and bar.

(Photo by Steve Miller)

Ascend the set of stairs located to one side of the center bar and you’ll find yourself in what Chase staffers called “The Perch.” This mezzanine area features more seating and tables, a refreshment station and access to the Reserve Suites: three reservation-only rooms available to groups who want more privacy than the lounge affords.

Design

(Photo by Steve Miller)

The theme of trees and greenery runs throughout, with several large “tree trunks” breaking up space on both the first and second levels. The pervasive woodgrain, mid-century furniture and colorful, abstract art on the tambour panel walls gives the feeling of walking into a particularly chic rainforest. There’s even a canopy of plants lining the railings of the upper-level mezzanine.

The womb chairs and light, oak-colored wood are in line with current design trends. Yet, the lounge has an air of timelessness that feels sophisticated but fun — falling somewhere between the retrofuturism of the TWA Hotel at JFK and the intentional whimsy of a hip coworking space. Elevated furnishings can be found in the by-reservation private suites, but more on that later.

The lounge doesn’t have a lot of windows because of its location within the airport. However, even without natural light, there’s not a spot in the lounge that feels underlit. The sconces and variety of other lighting fixtures are a delightful detail.

(Photo by Steve Miller)

Throughout the lounge, you’ll find touches of New York City, whether it’s a book of Bill Cunningham photos on the shelf or a series of photos featuring matchbooks from iconic New York restaurants like The Bitter End.

Seating areas on the lower level

(Photo by Steve Miller)

The first floor of the lounge features plenty of space for work, relaxation, dining and even a little play. Cushy couches and chairs are scattered throughout.

A backlit, water vapor fireplace provides ambience in a more work-oriented section of the lower level where guests will also find two-person booths and a private phone room.

(Photo by Steve Miller)

No need to worry about keeping your devices charged — there are outlets galore embedded in furniture, walls, tables and the floor.

Photo booth and arcade

On top of the areas for working or relaxing, there are a few rooms dedicated entirely to play. One is a photo booth that guests can use to snap photos with their traveling companions. Photos can’t be printed, but guests can have a digital copy sent to their email.

(Photo by Steve Miller)

The photo booth doubles as an entrance to what Chase staff referred to as “the speakeasy” — a hidden arcade room featuring a pinball machine, tabletop shuffleboard and a jukebox. While there’s no drink service in the speakeasy, staffers indicated that there might be someday.

Children’s playroom

(Photo by Steve Miller)

Families can use an enclosed playroom on the lower level without having to worry about disrupting other lounge guests.

Nursing room

(Photo by Steve Miller)

A nursing room featuring a sink and changing table is available for use by families in addition to a dedicated changing room for those with babies.

The Reserve Suites

The Reserve Suites are three rooms that can be booked within the lounge that offer groups a private seating and entertainment area, access to fully-stocked showers and an upgraded menu. The privacy comes at a premium though.

Chase Sapphire Reserve® cardholders can reserve one of the two six-person suites and one four-person suite. The six-person suites feature a movable wall between and can be booked together for use by up to 12 people.

Suites are available in three-hour slots. Each of the six-person suites costs $3,000 to reserve (or $6,000 to combine the two suites) and the four-person suite is $2,200 for a reservation slot. You must book suites through the Chase mobile app at least 72 hours in advance.

So what does roughly $1,000 per hour get you?

(Photo by Steve Miller)

In addition to private showers stocked with bathrobes and high-end toiletries from Oribe and Augustinus Bader, guests get access to a personal lounge staffer and a private menu from the New York restaurant Jeffrey’s Grocery.

(Photo by Steve Miller)

Menu highlights include a hefty lobster roll and the Plateau le LaGuardia, a two-tiered tower featuring king crab legs, shrimp cocktail and a variety of tinned seafood. The suite-exclusive wine list is curated by New York City wine bar Parcelle and each of the suites includes caviar service in its price.

(Photo by Steve Miller)

In the sitting area of each suite, there’s a beautifully incorporated TV on the wall that comes with a PlayStation 5 for guests. The TV can be turned off, leaving the design element of a stark, glossy black circle on the wall rather than a blank TV — a subtle touch that’s in line with the elevated feel of these private suites.

(Photo by Steve Miller)

One of the few windows in the lounge is in the four-person suite, providing a near-panoramic view of The Perch and lower level of the lounge; though, there’s a curtain for privacy should you prefer it.

Meditation pods and treatment rooms

If you want to luxuriate a little but don’t want to shell out for the suites with their private showers, stop by the wellness area and treat yourself to some spa time.

The ordeal of engaging with commercial air travel can be more than a little de-centering. If you feel like you need some time to refocus and quiet your mind, the lounge offers two meditation pods, which can be booked in 30-minute slots via the Chase app or the QR codes found throughout the lounge. Meditation pod reservations are complimentary.

(Photo by Steve Miller)

You can also book a free spa treatment, such as jade rolls and oxygen blasts, on-site on a first-come-first-served basis. The private treatment rooms are staffed by estheticians and feature products from New York facial bar Face Haus.

🤓Nerdy Tip

Each spa guest can also snag a free travel kit of skincare products from Face Haus.

Bathrooms

There are several bathroom stalls in the men’s room and women’s room on the first floor and an all-gender restroom on the mezzanine.

Food

Cold plates and made-to-order meals

At the back of the lounge’s lower level is the main dining area. The kitchen serves breakfast (4:30 a.m. to 10:30 a.m.) and all-day fare (11 a.m. to 9:30 p.m.) with menus featuring more typical lounge options alongside special, made-to-order dishes from Joseph Leonard, a West Village bistro.

(Photo by Steve Miller)

During breakfast and regular service, cold and hot plates are available at the buffet counter. For breakfast, guests can expect the usual fare like pastries, fruit, yogurt, eggs, pancakes and French toast. Made-to-order options — including omelets, egg and cheese baos, and vegan spinach bowls — can be ordered by scanning the QR codes found at every table.

(Photo by Steve Miller)

All-day food choices include Korean fried chicken bites, pumpkin muhammara, grilled cheese and made-to-order dishes like burgers or seared salmon over braised leeks. The latter items punched a fair bit above the lounge food weight class, retaining the restaurant quality you’d expect from a curated menu.

A selection of sweets is also available at the buffet, including lemon squares, chocolate chip cookies and mini chocolate bites.

The bar

(Photo courtesy of Chase)

Situated amid the dining space and seating areas is a circular bar, beautifully appointed with white stone countertops, mauve barstools and brass accents. Chase teamed up with New York mixologists Apotheke for locally-inspired cocktails.

The cocktail menu includes drinks exclusive to the LaGuardia lounge, like The Blackburn’s Sour — a berry-forward rum drink named for one of the first passengers to disembark at LaGuardia when it opened in 1939 — and a signature cocktail that you’ll find at all Sapphire Lounge locations, fittingly and simply called Sapphire.

Other standouts include the Red Eye, an interesting take on the all-too-familar espresso martini that takes things in a more refreshing direction with the addition of black cherry.

(Photo by Steve Miller)

A wine list curated by Parcelle, spirits and a selection of beers on tap round out the bar’s menu, with soft drinks, juices and coffee also available.

Refreshment stations

(Photo by Steve Miller)

The lounge features three refreshment stations, two on the first level and one on the second. Each refreshment station includes a mini fridge of canned beverages as well as drip coffee, tea, a digital espresso machine, nonalcoholic drinks on tap and assorted fruits and biscotti.

In keeping with the locally-sourced beverages, coffee is supplied by Greenwhich Village roaster Joe Coffee and teas are from SoHo-based tea blenders Harney & Sons.

How to get into the Chase Sapphire Lounge LGA

Access to the Sapphire Lounge by the Club at LaGuardia is pretty simple: you need to carry a qualifying Chase card or have a Priority Pass membership. Some credit cards include a Priority Pass membership as a benefit.

Chase cards that get you lounge access include:

Chase Sapphire Reserve® and J.P. Morgan Reserve cardholders each get two free guests, per visit. Additional guests come at a fee of $27 each. Ritz-Carlton cardholders get unlimited guests.

Priority Pass cards that get you access to the Chase LaGuardia lounge include:

The Platinum Card® from American Express

Capital One Venture X Rewards Credit Card

Marriott Bonvoy Brilliant® American Express® Card

Hilton Honors American Express Surpass® Card

U.S. Bank Altitude™ Reserve Visa Infinite® Card

Annual fee

Priority Pass benefits

Full Priority Pass Select membership. Enrollment required. Terms apply.

Full Priority Pass Select membership. Includes two guests per visit. No restaurants.

Full Priority Pass Select membership. Enrollment required. Terms apply.

10 complimentary Priority Pass lounge visits per year. Enrollment required. Existing cardholders who enrolled in Priority Pass on or before Jan. 31, 2023 will no longer have a membership as of Feb. 1, 2024. Cardholders who enroll between Feb. 1, 2023 and Jan. 31, 2024, will continue to have membership through Oct. 31, 2024. Terms apply.

Eight free Priority Pass lounge visits per year.

Learn more

(Top photo by Steve Miller)

The information related to the J.P. Morgan Reserve and The Ritz-Carlton™ Credit Card has been collected by NerdWallet and has not been reviewed or provided by the issuer of this card.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:

Source: nerdwallet.com

Apache is functioning normally

What’s Up With Stronger Bonds Despite Stronger GDP?

By:
Matthew Graham

Thu, Jan 25 2024, 3:27 PM

What’s Up With Stronger Bonds Despite Stronger GDP?

We’re not huge fans of the GDP report as a consistent market mover for bonds/rates, but if any GDP release has a chance, it’s the “advance” (which is the first of 3 releases for any given quarter).  Today’s was quite a bit higher than the median forecast (3.3 vs 2.0).  If the market were truly interested in reacting to the economic implications of that number, we likely would have seen yields move higher.  Instead, bonds rallied.  While there were other components of the report that were more bond friendly as well as other economic reports that were more downbeat, traders were at least as interested in the spillover from European trading as today’s ECB announcement was seen as more dovish than expected.

    • Jobless Claims
      • 214k vs 200k f’cast, 189k prev
    • Durable Goods
      • 0.0 vs 1.1 f’cast, 5.5 prev
    • Q4 GDP
      • 3.3% vs 2.0 f’cast
    • GDP Deflator
      • 1.5 vs 2.3 f’cast

08:43 AM

Modestly stronger after 8:30am econ data. 10yr down 4bps at 4.14%.  MBS up about 1 tick (.03) after accounting for illiquidity. 

11:06 AM

resilience remains with help from Europe.  10yr down 5.2bps at 4.128.  MBS up 6 ticks (.19).

12:20 PM

Some weakness in Treasuries, but not spilling over to MBS.  10yr down 3.7bps at 4.143.  MBS up 7 ticks (.23).

02:30 PM

Holding near best levels after decent 7yr auction.  10yr down 5.4 bps at 4.126.  MBS up 7 ticks (.23).

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

Apache is functioning normally

Compliance, Asset Mgt., PPE, DPA Tools; Assorted TPO News; STRATMOR on Profitability

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By:
Rob Chrisman

Thu, Jan 25 2024, 2:48 PM

Who doesn’t think swearing parrots are funny? Although you wouldn’t want your parrot talking about the clap when Aunt Beatrice comes over for Sunday dinner. I’m sure that every LO has heard their share of salty words, and they deal with much more for their clients than just a loan. Working with their client’s debts, assets, rental insurance until they buy a home, even servicing after the loan funds, you name it. Everyone across the nation is feeling the brunt of seemingly usurious homeowner insurance rates, and The Mortgage Collaborative’s Rundown tomorrow has Andrew Hellard, SVP of Products with Matic, discussing why homeowner’s insurance costs have skyrocketed. IMBs have not been retaining servicing. They needed the cash. Companies like Freedom, AmeriHome, Pennymac, and Planet Home have been buying up servicing. They will retain that customer if and when refinancing kicks in. Rate and term refis will probably go to the aggregators. They bought the servicing; they want to keep that customer. What percentage of customers will go back to the original lender, increasing the recapture rate? It may very well depend on what the customer service was like initially. (Today’s podcast can be found here and this week’s is brought to you LoanCare, successfully navigating clients and homeowners through market change for 40 years. The mortgage subservicer delivers superior customer experience through personalization and convenience via its portfolio management tool, LoanCare Analytics™, supporting MSR investors with a focus on customer engagement, liquidity, and credit risk. Hear an interview with Angel Oak Mortgage Solutions’ Tom Hutchens on his real estate market outlook for 2024 and securitizations in the Non-QM space.)

Broker and Lender Products, Programs, and Software

Mortgage leaders: The home insurance market is facing unprecedented volatility with carriers declining new business and increasing premiums to an all-time high. This can delay closings and even lead to DTI exceeding acceptable limits once insurance costs are factored in. Matic, a home insurance marketplace built for the mortgage industry, helps borrowers save time by shopping multiple A-rated carriers at once and providing transparent pricing and coverage options. With flexible integration options, Matic adds visibility and control, allowing lenders to foresee potential issues that could result in delayed closings. To learn how mortgage enterprises like New American Funding and PRMG are partnering with Matic, book a demo today.

Ready to help more borrowers tackle affordability? Click n’ Close has provided more than 1.5 billion dollars in DPA-related financing to over 6,000 borrowers through its SmartBuy suite of products, with an average of nearly $12,500 in assistance per transaction. Unlike state or municipal DPA programs, SmartBuy isn’t subject to budgetary shortfalls and offers tremendous flexibility to accommodate a wider range of borrower scenarios, making it ready to help your borrowers achieve homeownership. From start to finish, SmartBuy offers a streamlined process for all parties. With lower capital requirements and short turn times, Lenders can be up and running with SmartBuy in a snap. In addition, wholesale loan program information is available in today’s leading product pricing engines (PPEs), including Optimal Blue, MeridianLink’s Price My Loan, Lender Price, and Polly. Reach out to our wholesale (Adam Rieke, Kerry Webb and Soliman Martinez) or correspondent team (Julas Hollie) to learn more.

‘App’ [noun] – an application designed for a mobile device. ‘Optimal Blue PPE’ [proper noun] – the mortgage industry’s most widely used product, pricing, and eligibility engine. These terms probably aren’t new to you, even if vocabulary wasn’t your best subject in school. But one piece of information you won’t find in a dictionary is that the Optimal Blue PPE is now available in a native mobile app for Android and iOS. That’s right: Loan officers can put “pricing in their pocket” with complete access to scenario pricing and more, the exact moment they need it. It’s time to leave your dictionary AND your laptop behind and take the power of the Optimal Blue PPE wherever business takes you. The enhanced iOS app even includes publicly accessible pricing analysis from the Optimal Blue Mortgage Market Indices. Simply have your company’s account admin enable access today.

“Planet Management Group is your trusted and proactive partner for residential and commercial asset management. Our private clients gain access to specialized technology, expert advisory services, and clear insights into residential and commercial market opportunities. Embrace performance. Experience PMG. email or call (585) 512-1030 and discover the PMG difference today.”

Successfully managing MSR portfolios can be a lucrative endeavor, but navigating regulatory compliance, risk management, and understanding market values can be daunting. Join MQMR and MCT for a webinar on February 15th at 11am PT entitled MSR Risk Management, Compliance, and Current Market Strategies, where panelists will dive into operational and regulatory best practices, share invaluable tips to avoid common MSR management pitfalls, and provide insights into current pricing trends. The joint webinar will also explore crucial topics such as servicing regulatory developments (FHFA, GSEs, NCUA, GAAP compliance), a bulk MSR market update, trends in retained vs. released vs. co-issue, and understanding the value of your portfolio. Don’t miss this opportunity to enhance your portfolio management skills and elevate your lending income. Register today for a comprehensive session that will empower your financial strategies.

STRATMOR on Profitability

In his 1943 paper, “A Theory of Human Motivation,” Abraham Maslow identified five levels of human needs, from the most basic to the most advanced. In STRATMOR Group’s January Insights Report, Senior Partner Jim Cameron borrows from Maslow’s famed “hierarchy of needs” theory to offer mortgage lenders a real-world approach to shaping their strategies in 2024. STRATMOR’s January InFocus article, “Maslow and Mortgages – The Path to Actualization in Today’s Market,” outlines a similar hierarchy that recommends lenders get back to consistent profits before embarking on their longer-term strategic goals. Check out STRATMOR’s full January Insights Report here.

News and Industry Updates

“AnnieMac Home Mortgage is delighted to share a momentous announcement that symbolizes our commitment to progress and innovation: the unveiling of our new brand… Our new brand is a reflection of AnnieMac’s journey, capturing the spirit of adaptability and forward momentum that has defined our organization. At the heart of this evolution is the distinctive chevron symbol.” (Editor’s note: Cynics would say that “momentous” might be a stretch, reserved for things like landing on the moon, finding Amelia Earhart’s plane, or scaling Mt. Everest. But hey, if it gets more business…!)

Pennymac was recently alerted to an appraiser fraud scheme where appraisal reports were completed by an unlicensed appraiser unlawfully using the identities of other actively licensed appraisers. The appraisal reports were completed over the past two-year period and there is no evidence the appraisers whose identities were used were aware of or involved in the activity. Details are posted on the in Pennymac Announcement 24-04.

Do your clients need to access home equity? Kind Lending offers Closed End Seconds (CES) financing through piggyback and standalone programs. CES financing allows borrowers to access cash from their home equity without impacting their original loan rate.

Per the Pennymac Announcement 24-02, Jumbo LLPAs will be updated effective for all Best Efforts Commitments taken on or after Monday, January 8, 2024 as follows: Improving values on the ‘Occupancy Adjustments’ LLPA grid. Updating values for the ‘Purchase’ LLPA on the ‘Loan Purpose Adjustments’ LLPA grid.

Capital Markets

The United States cannot be an island of prosperity. This week has been an excellent example of how international events can impact domestic mortgage rates. Germany’s economy is in the doldrums. Houthi rebel attacks on ships and allied responses in the Red Sea have resulted in a spike in producer costs that is likely to be passed along to consumers, hurting the Fed’s quest to return U.S. inflation to its 2 percent target. China has ramped up stimulus, saying it will reduce the reserve requirement ratio for banks by 50 basis points in early February, a move that will add $139 billion in liquidity to the market, but also stoked fears of larger contagion. The release of flash Manufacturing and Services Purchasing Manager Indices readings from major world economies mostly showed an ongoing contraction, providing markets ammo for pricing in early and deep Fed rate cuts. And quarterly corporate earnings results for companies around the globe, with a particular focus on forward looking guidance, has investors less convinced of signs that the Fed’s historic tightening cycle will tilt the economy into recession.

In this country, bond prices, and therefore rates, are based on supply & demand and we learned yesterday that the Treasury sold $61 billion in 5-year notes to weak demand. Part of that stems from stock market highs and consumer sentiment in January rebounding to the highest level since mid-2021, but also from cautious “Fed speak” recently and stronger than expected data. Attention now turns to GDP from Q4 of last year. Real GDP growth is seen slowing from Q3’s unsustainably robust 4.9 percent annualized increase and is expected to show that the economy expanded at a 2 percent annual rate in the final three months of 2023. Household spending is expected to be the main driver of both stronger growth and overall spending than was anticipated at the start of the quarter. Those factors may keep the economy from dipping into a recession even if there isn’t much help from other sources of growth. In fact, household incomes are now outpacing inflation.

Today’s economic calendar begins a deluge of data over the next several sessions and was kicked off by advanced Q4 Gross Domestic Product (+3.3 percent). GDP was expected to increase 1.3 percent versus 4.9 percent previously, with final sales 2.5 percent higher versus 3.6 percent in Q3. The core Personal Consumption Expenditure (PCE) Deflator registered +2.0 percent, unchanged from last month’s reading. The Price Index +1.5 percent.

We’ve also received Durable Goods Orders (flat on the month, ex-transportation +.6 percent), weekly jobless claims (+214k, 1.833 million continuing), advanced indicators for December (previous goods balance…, retail inventories …, and wholesale inventories…), and the Chicago Fed National Activity Index for December. Later today brings December new home sales, KC Fed manufacturing for January, the Treasury auctioning off $41 billion 7-year notes, and Freddie Mac’s latest Primary Mortgage Market Survey. Norges Bank was out with its latest monetary policy decision overnight (no change), as well as the European Central Bank’s decision (no change) with ECB head Lagarde’s press conference. We begin the day with Agency MBS prices a few ticks (32nds) better, the 10-year yielding 4.14 after closing yesterday at 4.18 percent, and 4.35 on the 2-year.

Jobs

“Attention Mortgage Brokers: Are you feeling isolated? Are you lacking support or struggling to establish relationships in this shifting market? Take your career to new heights with RWM Home Loans, a trusted name in home financing with over 30 years of excellence. With our FNMA, FREDDIE and GNMA approvals, we offer a wide range of products and direct loan servicing, empowering our sales team to fund both in-house and with brokered solutions. Whether you’re assisting first-time homebuyers, navigating Jumbo, Non-QM, reverse mortgages, or managing construction loans, we have the solutions to meet your clients’ needs. Do you want a voice at the table and the ability to provide 5-star service, best in class technology, and competitive pricing for your borrowers? If you are evaluating your options and looking for a top tier lending partner, contact us now for a confidential conversation.”

A strategic CFO is available on short notice. Experience in conventional/conforming markets, non-QM, Fix & Flip, and DSCR products, in distributed retail and wholesale channels in public and private lenders, backed by PE and venture capital. 15+ years’ experience in start-up, high growth middle market and public companies. Fintech lender experience including AI, machine learning and predictive modeling. Comfortable working at both a strategic level and a hands-on operational level. Also open to work on M&A transactions or restructurings. Interested companies should contact Chrisman LLC’s Anjelica Nixt to forward your note.

“PrimeLending offers Branch Managers the flexibility to structure their branch for maximum growth and profitability. As a Branch Manager at PrimeLending, you’ll have the power to make operational decisions, construct your team and truly lead. Branch structures range from a traditional Retail Model to our Modern Originator Model leveraging both retail and virtual production teams to our Expense Management Model giving you unparalleled control over how you invest in your business. Don’t settle for the status quo… Explore all your options and take more control over your future. We’re looking for talented, driven Branch Managers and Loan Originators! Contact Nic Hartke today!”

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

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Uneventful Week. How About The Next One?

By:
Matthew Graham

Fri, Jan 26 2024, 3:00 PM

Uneventful Week. How About The Next One?

Sure… rates moved a bit higher this week as the bond market continued the process of a modest correction against the Nov/Dec exuberance.  But Nov/Dec was just that: exuberant.  Most of it was justified, but things got a bit too optimistic by the time the Fed’s dot plot came out.  Moreover, additional gains would have required the type of economic data that we just didn’t see over the past 4 weeks.  With all that in mind, what is the Fed going to be able to say to surprise us next week?  Probably not much, but markets will immediately begin extrapolating any big beats/misses in the big economic reports to its assessment of what the Fed will say next time.

    • monthly CORE PCE
      • 0.2 vs 0.2 f’cast, 0.1 prev
    • annual CORE PCE
      • 2.9 vs 3.0 f’cast, 3.2 prev

08:53 AM

Flat overnight.  2-way volatility after PCE data.  MBS roughly unchanged.  10yr down less than 1bp at 4.112

11:19 AM

position-driven selling into the 9:30am NYSE open, but recovering a bit since then.  10s up 2.3bps at 4.143.  MBS down 3 ticks (.09).

12:58 PM

sideways after modest recovery.  MBS down 2 ticks (.06) and 10yr still at 4.143.

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

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Editor in Chief Sarah Wheeler sat down with Matt VanFossen, CEO of Absolute Home Mortgage and Mortgage Automation Technologies, to talk about his unique view of the housing ecosystem and how it influences how he builds technology. Van Fossen not only heads a mortgage lender and a tech company, but is the president of the Mortgage Bankers Association of New Jersey and a board member of the Community Home Lenders of America.

Sarah Wheeler: You wear a lot of hats. How do all those different roles influence the technology you build?

Matt VanFossen: We build technology not only to sell but that we want to use. That culture resonates throughout our company and into our product lines. A differentiating factor of our tech is that lots of point of sale systems are built to faciitate loan officers with the business they already have. While we do that, we’re also focused on driving new business — from new clients but also from the relationships they already have.

We are focused on compliance and data capture at the top of the funnel, so we look at: how do we introduce loan officers not only to new technology, but to new business opportunities?

SW: What does that look like in very practical terms?

MVF: We realized that we needed to focus on the real estate agents our loan officers work with. Over the past 10 years, loan officers have become accustomed to forwarding their application right to the referral and taking the app, but what about their real estate agent counter-parties? Right now LOs have to go and remind agents and constantly be in front of them asking about referrals.

But a real estate agent has a limited amount of resources for elevating their referral. They might be driving down the road when they get a call or text message. Then they have to take whatever information they got and manually enter into their CMS. So we recoded the point of sale system so we can partner with agents on software. Now they have their own online application, but it’s not an application for a mortgage — it’s an application to buy or sell a house.

And now, anytime the agent uses those workflows, the loan officers are privy to that information. LOs can easily go in and see if they need to be preapproved and do that from their phone. So we reverse-engineered a lot of what we’ve built for loan officers and applied it to agents.

We basically created a massive collaboration system. From the first point of contact the customer has with the agent, they are being introduced to a digital ecosphere and they can remain in sthe ame portal all the way through the transaction. It’s the same portal to sign docs, eClose, get servicing information, even post-closing information. And if they ever need to apply for a new mortgage or refinance, they’re still living inside that port. So we’re keeping our customer from the first point of interaction all the way till the end of the real estate transaction and for the remainder of their lives inside of a single ecosphere.

SW: What was the “aha” moment that led to this development?

MVF: I hang out with a lot of LOs and agents, just in a social context, so the aha moment came when I was on a trip with friends. One is an agent and the other is an LO, and they both had to step away from the table like four different times, and I realized that the agent was getting new client referrals and had to pass that back to their team manually. I had completely missed this — that real estate agents don’t have an online application. An LO can text the link to their application portal, but not the agent. I realized we’ve been focusing for a decade on how to streamline this process for LOs but had abandoned our counterparties.

Because of my positions at a tech company, a mortgage company and in regulatory compliance, I have a view into all three points of this triangle — and I have developers that can go build it! Sitting on top of all three at the same time, I can see how they are all intimately intertwined, and I can test it with my own lender. I’m a user of this tech so I’m the mad scientist that’s experimenting on himself! I can jump in and code something, call an agent to have them come in and see it, then use with my own clients first. Then we can think about the enterprise version. It’s almost farm-to-table programming.

SW: So does that mean you only build versus buy?

MVF: No, because there are differet platforms that have some amazing features. We will build over buy in certain things but you can’t take over everything. We have some fabulous vendor tech partners in this industry. We’re focused on point of sale because it gives us control over the loan officer and agent and client experience, so we want to be in the driver’s seat for that.

But even with that mini-POS for agents, it’s not a full-blown CRM and they still need to use their CRM vendors, who will be better at journey campaigns, for example. And we work with awesome loan origination systems like Encompass to maintain compliance and a database. We can’t conquer every avenue so for us it’s about strategy and where we can get the biggest lift with our own tech and then shop the marketplace for strategic partners.

SW: What keeps you up at night? Security?

MVF: I am constantly thinking about this and how I’m not only responsible for cybersecurity for my various companies but also now my point of sale. But we’re very unique and the architecture we built for it was not possible more than a year ago. So rather than having two databases — one POS database where people apply online and then that application goes into another database where you hold that PII inside of it, and you synch those through an API — we don’t do it that way. We have single source of truth.

When an application comes in, or any of the Realtor referrals come in, they all get logged immediately into ICE’s Encompass. We don’t have a database — it all instantaneously, through an encrypted API transaction, as soon as the application hits it goes into Encompass. So there’s only one place and location and all of the loan data resides in that. So we are now more secure than ever because ICE has phenomenal information security. So what we do is put a customization layer on top of it. It’s a highly configurable, easy-to-use user interface that shares a database, rather than maintaining two databases. And that solves a lot of cybersecurity issues.

The other thing that keeps me up is mortgage rates and when we’ll see quantitative easing. What the industry really needs is to get some tailwind into the market.

When you look at the three things I’m involved in — I’m running a lender, I’m running a FinTech and I’m in advocacy. What solves all of that is a little bit lower interest rates. That will strengthen the housing market and make sure that independent mortgage bankers have stability in extremely volatile times. That ensures the tech company will continue to innovate, and all of those things together is going to help consumers, especially low to moderate income consumers.

Source: housingwire.com

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  • TJ Maxx is one of the largest discount retailers in the US, with more than 1,300 stores nationwide.
  • An interior decorator told Business Insider which items she always buys there.
  • It’s a great place to score deals on artwork, mirrors, and on-trend furniture, she said.

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Even interior designers and professional decorators can be proud Maxxinistas.

Business Insider spoke with Emily Maldonado, the owner of the full-service interior-decorating and home-styling company Styled Mi Casa, about the home-decor pieces she always buys at TJ Maxx for her clients and her own home.

Maldonado, who has worked in mortgages, real estate, and home-flipping for 20 years, got into decorating and home styling about two and a ½ years ago when she moved to Texas — and there are many budget-friendly items she looks for when creating her “modern organic” decorating style.

Here are six things you should always buy at TJ Maxx, according to an interior decorator.

Source: businessinsider.com