earnings

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Bear Stearns reported a larger-than-expected writedown in its mortgage portfolio, leading its first quarterly loss in its 84-year history.

The nation’s fifth-largest investment bank, who is also a mortgage lender, took a $1.9 billion writedown in the quarter ended November 30, significantly larger than its earlier estimate in November of $1.2 billion.

“The continued repricing of credit risk and the severe dislocation in the structured products market led to illiquidity in the fixed-income markets, lower levels of client activity across the fixed-income sector and a significant revaluation of mortgage inventory,” Bear Stearns said in the earnings release.

The fiscal fourth-quarter loss after preferred dividends was $859 million, or $6.90 per share, compared to a profit of $558 million, or $4 per share, a year ago.

The company reported negative net revenue of $379 million, compared to revenue of $2.41 billion a year earlier.

It’s likely 2007 is a year Bear Stearns would prefer to soon forget, as profit during the year fell 90 percent from the year-ago period to a meager $212 million.

“We are obviously upset with our 2007 results, particularly in light of the fact that weakness in fixed income more than offset strong and, in some areas, record-setting performance in other businesses,” Chief Executive Jimmy Cayne said in a statement.

Chief Financial Officer Sam Molinaro said during a conference call with analysts that the company cut 1,400 jobs, or about 9 percent of its workforce during the quarter amid ongoing turmoil in the credit markets.

The firm incurred $100 million in severance costs as a result of the layoffs, but they will offset operating costs by more than $250 million, helping to boost profitability in 2008, Molinaro added.

Earlier this week, Bear Stearns cut another 150 jobs as it shut down its loan production operations in Irvine, CA.

The company is also being sued by Barclays, who claims Bear Stearns hid negative information about the performance of two subprime hedge funds the English bank had invested in.

Shares of Bear were down 16 cents, or 0.18%, to $90.44 in late morning trading on Wall Street, just narrowly above their 52-week low of $89.55.

Source: thetruthaboutmortgage.com

Apache is functioning normally

While it can be a challenge to keep up with both work and school, getting a part-time job while in college can help you cover your expenses and gain valuable work experience at the same time. In addition, some employers may even offer to pay a portion of your college tuition as a part of their benefits package.

There are all kinds of jobs for college students — from on-campus jobs with regular hours to side gigs you can do in your spare time. While students often find work in the retail and service industry, it’s also worth exploring other avenues for employment, including office work and even jobs related to your field of study. Read on for a basic guide to finding a job that can help you pay for college.

Table of Contents

Part-Time Jobs That Help Pay for College

Working part-time while you’re in college can help you pay for tuition and other expenses. These jobs typically offer flexible hours, allowing you to work around your class schedule.

You might start your search for jobs that help pay for college with businesses you already know and love. For example, you could see if your favorite cafe is hiring or ask about opportunities at the yoga studio you love. Even if they don’t have a paying position, some small businesses offer “service swaps” where you might be able to score free coffee, meals, or exercise classes for some light work. It pays to ask!

Here’s a look at other job opportunities that can help students earn money for college.
💡 Quick Tip: Make no payments on SoFi private student loans for six months after graduation.

On-Campus Jobs

Colleges and universities hire students for a variety of jobs on campus. Part-time on-campus jobs are not only convenient but typically provide flexibility so you can work around your class schedule. Plus, a lot of on-campus jobs can help you build relevant skills that will serve you after graduation.

The career center at your school will likely have lots of resources that can help you find employment on campus, including an online job board. Your school can also help you find a job campus through the federal work-study program. To see out if you’re eligible for work-study, which is a needs-based program, you need to fill out the Free Application for Federal Student Aid, or FAFSA.

Below is just a sampling of on-campus job options you might consider, plus what they pay, on average, per hour:

•   Administrative Assistant: $16.80 per hour

•   Teaching Assistant: $17.56 per hour

•   Research Assistant: $20.62 per hour

•   Fitness or Recreation Center Attendant: $14.10 per hour

•   Lifeguard: $16 per hour

•   Peer Tutor: $12.73 per hour

•   Library Assistant: $14.49 per hour

•   Campus tour guide: $14.81 per hour

Paid Internships

Your school’s career center may also be able to provide information about internship opportunities in your field of study. Some college internships provide college credits, which can help you pay for college by reducing your tuition bill. In other cases, internships are paid. On average, college interns in the U.S. earn $24.63 per hour.

Don’t want to work during the school year? Summer can be a great time to focus on a career-boosting internship without distracting you from your coursework. According to a 2023 Glassdoor report , some summer internships are paying as much as $9,064 a month.

Securing a paid internship tends to be competitive, so it can be wise to apply early and make sure your application materials are compelling and complete. Internships can provide valuable learning opportunities and some of the top-rated internships even offer the opportunity for future full-time employment.

Serving, Bartending, or other Service jobs

Many college students work part time in the service industry because the hours are flexible and you can often earn tips in addition to an hourly pay. This can be especially helpful during peak hours and holidays because your income could be higher than usual. Here’s a look at some service jobs and their average hourly pay and tips:

•   Barista: $14.86 per hour (plus $20 in tips per day)

•   Restaurant server: $16.06 per hour (plus $100 in tips per day)

•   Restaurant host: $14.79 per hour (plus $35.00 in tips per day)

•   Bartender: $15.97 per hour (plus $150 in tips per day)

Recommended: Guide to Paying for College

Retail jobs

If you’re looking for a part-time job that will help pay for college, you might consider working in a local boutique or other type of retail store. These jobs also provide you with valuable human and workplace skills that can be used later in your professional career.

A retail sales associate is typically required to set up store merchandise and assist customers with their shopping needs. You also might even be able to get employee discounts or earn a commission. The average retail sales associate salary in the U.S. is $14.90 an hour.

Tutoring

You’ve been hitting the books and now it’s time to put all of that newfound knowledge to good use. You may be paying for your education, but there are also people out there willing to pay you to share what you’ve learned, which can help make college more affordable. Consider tutoring other college students or younger students in your area of expertise. Rates will vary based on location, subject matter, and your experience level. On average, private tutors earn $25.12 an hour.

Virtual Assistant

Sometimes small businesses and entrepreneurs need someone who can answer their emails, perform odd jobs online, and otherwise provide administrative support virtually. You might look for these gigs online or through your school’s career development office. Before you take on a role, it’s important to know what’s expected: Are they looking for someone to be available during specific hours or could you get everything done on your own time?

On average, a virtual assistant makes $19.19 an hour.

Recommended: 3 Summer Jobs Ideas for College Students

Babysitting or Caregiving

Babysitting can be another job option to help pay for college if you’re looking for flexibility. You can schedule jobs for weekends or nights if you’re worried about work conflicting with your school schedule. As a bonus, you may be able to squeeze in some studying while the little ones are asleep. On average, part-time college nanny jobs pay $25 an hour.

Keep in mind that caregiving isn’t just limited to little kids. You may find meaningful roles working with elderly or ill people who need help, either with day-to-day tasks or with errand running, housekeeping, or even just keeping someone company while they shop. On average, a part-time caregiver earns $15 an hour.

Dog Walking

Having flexibility during the day can mean everything for people who work 9 to 5 and need someone to care for Fido. Consider working for a walking service rather than striking it out on your own: It may provide guaranteed hours or jobs, so you can get to know the pooches you work with. The average salary for a dog walker in the U.S. earns $17 per hour.

Ridesharing or Delivery Driving

Driving for a ride-sharing or delivery service can be a good option during college, since you can generally set your own hours and fit the job into your schedule. How much you could make will depend on your location and the times you’re available to drive. Many Uber drivers make between $15 and $25 per hour, while the average hourly wage for food delivery drivers nationwide is $19/hour.

It can also be helpful to talk to locals to get the lay of the land — national earnings surveys may be very different from your local area, and it can be helpful to anticipate just how much demand there might be before you sign on.

Recommended: 11 Ways to Make Money While You Drive

Freelance or Start a Side Hustle

If you have a sought-after skill or talent, such as writing, website design, photography, or coding, you might consider starting your own freelance business or side hustle. You can advertise your skills on a freelance platform like Fiverr or Upwork. Or, you could solicit clients in your community. For example, you might be able to build a website for a local small business or get hired to manage an off-campus store’s online brand and marketing.

Consider Companies That Help Pay Your Tuition

Part-time jobs can be one option to help you pay for college, but what if you can find a job that not only pays you a salary but also pays for tuition? There are some major companies that offer stipends or reimbursements toward college tuition or expenses like books, even for part-time employees.

Employers generally offer tuition assistance in one of three ways:

•   Tuition reimbursement Here, the company reimburses you for tuition you’ve paid. There may be a tuition cap and/or a requirement to work a certain number of hours or months before the benefit kicks in.

•   Direct payment Some employers will pay eligible college costs directly to the school. In some cases, they only partner with certain schools.

•   Scholarships Some employers offer education scholarships to employees for a set amount of money. As with other types of scholarships, you typically need to submit an application for the award and may also be required to maintain a certain GPA.

Here are some national companies that have well-publicized tuition assistance policies:

Chipotle

At Chipotle , tuition reimbursement (up to $5,250 each year) is available for both part-time and full-time employees. They also offer a Debt-Free Degree program, which covers the full cost of a four-year degree at one of 10 universities. Typically, employees must work at least 15 hours a week for four months to qualify for tuition benefits.

Smuckers

Smucker’s helps employees further their knowledge and skills by reimbursing them for some of the costs of qualifying continued and/or higher education. The company also offers a scholarship program for children of employees.

Publix

At Publix , associates with 90 days of continuous service who work an average of 10 hours a week are eligible to participate in the company’s tuition reimbursement program. The program covers graduate and undergraduate degree coursework, as well as some individual courses, online programs, and technical training.

Starbucks

Starbucks is often featured on these lists for a reason: They partnered with Arizona State University (ASU) to create the Starbucks College Achievement Plan which offers 100% tuition coverage for a first-time bachelor’s degree through Arizona State University’s online program. All employees eligible for benefits (this includes part-time employees) may take advantage of this program.

If an employee doesn’t qualify for admission to ASU, they can take part in the Pathway to Admission program, which will help them qualify for admission, tuition-free.

UPS

UPS offers a tuition assistance program at most locations in the U.S. Through their “Earn and Learn” program, you can receive up to $5,250 per calendar year, with a lifetime maximum of $25,000. There are no course or subject restrictions.

Walmart

Walmart will pay 100% of tuition and books for an associate or bachelor’s degree program through several online accredited universities. This benefit is available to hourly part-time and full-time associates without a prior bachelor’s degree starting on day one.

Amazon

Amazon offers tuition assistance for employees seeking a Bachelor’s degree, a high school GED, or English-as-a-Second-Language (ESL) proficiency certification. You’re eligible for the program after 90 days of employment for as many years as you work in a regular, full-time role at Amazon.

Recommended: Finding Jobs That Pay Off Student Loans

Think About Your First Job Out Of School

Another benefit of finding a job that helps pay for college: You can figure out what you do (and don’t) want to do for a living. It can also be helpful to assess certain job paths, including how much they may pay entry-level employees. While there are always lists of most and least lucrative majors, the reality is that your major doesn’t necessarily determine your career. Talk to alums and people a few years out of school and have them give you the lowdown on their job path.

When looking for your first full-time job out of college, it’s also important to consider not just your salary, but what benefits may come into play. For example, many companies now offer employees assistance in paying off student loans. How it works varies by company, but the typical plan offers matching funds or a predetermined recurring monthly payment towards your loan. Usually, there’s a maximum dollar amount you can receive and some employers require a minimum amount of time on the job.
💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.

The Takeaway

The combination of scholarships, student loans, and a part-time job can help you cover the cost of going to college for four (or more) years. A part-time job will not only help you earn some money, but it could also help boost your resume. In addition, some companies offer tuition reimbursement or assistance programs for part- or full-time employees pursuing higher education. These programs may have specific requirements, such as attending a certain school or working a set number of hours per week, so be sure you understand the requirements.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

How do you ask a company if they offer tuition reimbursement?

To find out if a company offers education benefits like tuition assistance, you can talk to your manager or HR representative (if you already work there). If you’re in the interviewing process, you can ask the recruiter or hiring manager. Or, you can check the company’s website (often they will describe their benefits, including who is eligible and any other stipulations).

What are the disadvantages of tuition reimbursement?

One disadvantage of tuition reimbursement is that you typically need to pay for your classes upfront, then submit the bill to your company for reimbursement. Some tuition reimbursement programs also have strict requirements and limitations, such as a cap on the amount of money that can be reimbursed, or only covering certain types of courses or degrees.

Also keep in mind that balancing work and courses can also be challenging for some employees to manage successfully.

Why would a company offer generous tuition reimbursement?

Many companies offer generous tuition assistance programs in order to attract, develop, and retain high-performing employees.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Source: sofi.com

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Hedging, Servicing, Fulfillment, Non-QM Products; Senators, The CFPB, and Navy Federal

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Hedging, Servicing, Fulfillment, Non-QM Products; Senators, The CFPB, and Navy Federal

By:
Rob Chrisman

Wed, Jan 17 2024, 11:20 AM

Today I am in San Diego for the SD CAMP event. At the same latitude, a poll was taken by Texas Governor Greg Abbott’s office which asked whether people who live in Texas think illegal immigration is a serious problem. 29 percent of respondents answered: “Yes, it is a serious problem.” 71 percent of respondents answered: “No es una problema seriosa.” (Did you know that Texas even has its own pledge of allegiance?) Politics aside, Texas is home to many lenders. And many hotels. Marriott certainly has the business travel market dialed in, but just six companies in the United States control 80 percent of branded hotels, and two companies (Choice Hotels and Wyndham) may merge giving us five. Choice owns Radisson, Quality Inn and Econolodge brands; Wyndham owns Ramada, La Quinta, Days Inn, Super 8, and Howard Johnson. If a takeover/merger occurs, 16,500 hotels and 46 brands will be run by a single entity. Yikes! Today’s podcast can be found here, and this week’s is brought to you by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products (nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics) unite the people, systems, and stages of the mortgage process. Today’s features an interview with nCino’s Pam Faulkner on a topic that every mortgage lender has to contend with: change management.

Lender and Broker Services and Software

Short-term rental analysis product announcement! Opteon AMC, a top nationwide appraisal management company (AMC), announced its pioneering Short-Term Rental Analysis (STRA) product last week. The first of its kind on the market, Opteon collaborated with AirDNA, a leading short-term rental (STR) data and analytics provider, on this innovative tool set to revolutionize how non-QM lenders assess properties for STR investment. It will equip lenders with accurate rental potential, occupancy rate predictions, market trends with comparables, and an expert appraiser analysis. This appraiser-approved Short-Term Rental Analysis replaces the existing 1007 form which, while widely used, falls short in addressing the unique dynamics of STR investments. Opteon and AirDNA partnered together to create a simple, comprehensive solution that promises to reshape the appraisal process for STRs. This product is exclusively available to Opteon customers as of January 8, 2023. To learn more, visit: www.opteonusa.com or contact [email protected].

“FundingShield, the market leader in wire & title fraud prevention, released its Q4-2023 report showing an all-time high 51.8 percent of transactions had deficiencies. During Q4-2023, 49.23 percent of transactions had CPL issues, 7.6 percent had CPL Validation issues and 8.45 percent had increased Wire risks. This increase highlights ongoing cybersecurity challenges such as Business Email Compromise (BEC) events and phishing attacks. “Cyber-Breach Events at First American and Fidelity National Financial are driving additional demand for funding controls, cyber-security defenses and closing-agent vetting as auditors, regulators or investors ask for evidence of controls. Our tech-driven solutions to manage payment risk, vendor selection, live monitoring of service providers and more are addressing these needs with customized solutions. These sophisticated, intentional acts of cybercrime create financial losses within impacted firms and threaten enterprise valuations of listed public firms. This creates additional motivation for short players who are looking to express their negative view in free markets,” shared Ike Suri, CEO. Contact us for demos and free trials.”

“Increase your company’s pipeline and margins with Non-QM loans through Verus Mortgage Capital. The Mortgage Bankers Association (MBA) forecasts mortgage originations to increase to $2 trillion. With mortgage rates expected to stabilize through the end of the year and the possibility of a Fed interest rate cut soon, the stage is set for growth. Give your production pipeline an extra boost by adding Non-QM loans. Now’s the perfect time to partner with Verus, the nation’s largest issuer of securitizations backed by non-qualified mortgage (Non-QM) loans. We offer flexible non-agency loans for property investors, foreign nationals, and many others. Navigate the evolving landscape with confidence, backed by our Non-QM expertise. We’re not just a solution, we are your key to unlocking new opportunities. To learn more, contact Jeff Schaefer, EVP – National Sales or 202-534-1821.”

“Wholesale lending is more competitive than ever. These lenders are competing to win a shrinking volume of loans, fighting for attention among a sea of loan originators. Giant lenders are brandishing technology tools that only the giants can afford and using them to shoulder out smaller competitors. But as the market thaws and lenders find firmer footing, there’s an opportunity to fight back. Join our webinar, ‘Mastering the Art of Mortgage Broker Engagement’ on January 24th at 10 am PST to learn best practices and strategies that wholesale lenders are using to thrive in the TPO market. This webinar will show you proven tactics and technology tools that are helping wholesale lenders create efficient sales processes that are both scalable and effective. Click here to register for the webinar and gain insight on an origination channel that needs more attention.”

Save over 20 percent on costs and gain valuable flexibility with outsourced loan fulfillment. Maxwell’s on-demand underwriting provides the agility lenders need to scale their fulfillment expenses in proportion to loan volume. With direct integration to your LOS, Maxwell’s experienced onshore team of underwriters provides a seamless, fast, and cost-effective experience. Plus, you’ll be able to maintain your operations even during gaps in in-house coverage, ensuring an uninterrupted workflow no matter the market conditions. To learn more about Maxwell’s on-demand underwriting and other fulfillment services, click here or schedule a call today.

Servicing Assistance and Software

“LoanCare®, a top U.S. mortgage subservicer, has re-imagined the homeowner digital experienced with our newly re-engineered and re-designed homeowner website: myloancare.com. Powered by LoanCare’s own proprietary software, our consumer digital experience is a fully white label capable platform designed to help you maximize your brand, recapture customers, and build lasting relationships. Frictionless functionality coupled with advanced security features, intuitive design, and comprehensive line of sight into the homeowner experience mean our clients are in the driver’s seat managing their portfolio from every angle. And did we mention? The site is available in both English and Spanish! Contact us to learn more today.”

“Delivering the Best Homeowner Experience! Cenlar is more than just a mortgage subservicer. We strive to be our clients’ trusted partner each and every day. And a big part of that is how we care for our clients’ homeowners. A home is most likely someone’s largest asset. That’s why we continue to deliver industry-leading subservicing solutions that offer the very best experience for our clients and their homeowners. Whether that’s the regular cycle of onboarding, escrow, monthly payments and year-end or challenges facing homeowners like natural disasters, we are responsive, anticipatory and always caring. Let’s discuss how Cenlar can meet the mortgage servicing needs of your organization. Call 1-888-SUBSERV (782-7378) or visit here. We want to be your trusted partner, each and every day.”

Monitoring the State of the Markets

To me, and many that I speak with, the lending biz has continued to be quiet after the flurry of activity in November. But that is just a feeling that I have. There are groups that actually provide a quantitative analysis of what is going on. Glancing around the biz…

A group of U.S. senators are calling on the Department of Housing and Urban Development (HUD) and the Consumer Financial Protection Bureau (CFPB) to review the gap in mortgage approval rates between white applicants and Black and Hispanic applicants at Navy Federal Credit Union.

Optimal Blue announced the release of its Originations Market Monitor report, looking at mortgage origination data through December month-end. Leveraging daily rate lock data from the Optimal Blue PPE, the industry’s most widely used product, pricing, and eligibility engine, the Originations Market Monitor provides a comprehensive and timely view into origination activity.

The latest ICE Home Price Index data for November 2023 showed continued home price growth resiliency, rising demand, and falling 30-year rates provided some affordability relief. ICE Vice President of Enterprise Research Andy Walden explained, “In simple dollars and cents, it requires $279 less per month to purchase the median priced home when compared to late October. Given that improvement, it’s no surprise mortgage applications have risen in recent weeks, hitting their highest adjusted levels since early September.” Annual home price growth rose to +5.1 percent in November, up from a revised +4.5 percent in October, as momentum from early year increases. On a non-adjusted basis, home prices fell by -0.46 percent in the month, but when adjusted for seasonality prices were up +0.14 percent, slightly above October’s +0.09 percent. While home affordability remains a significant challenge, falling rates in recent weeks. Due to the holidays ICE Mortgage Monitor will not publish a report in January. Reports for previous months are available online at https://www.blackknightinc.com/data-reports/. The next ICE Mortgage Monitor will be published February 5, 2024.

Capital Markets

“As a secondary marketing professional, your top priorities are managing interest rate risk and maximizing loan sale execution. But when’s the last time you stopped to consider whether your hedging software helps you achieve those goals? Optimal Blue offers the most comprehensive hedging solution in the industry, complete with exclusive API connections to the Optimal Blue PPE and aggregator bulk-bidding via the CompassPoint buy-side bid tool. This powerful combination provides you with the most accurate price discovery to drive your front-end pricing, mark to market, and best execution. Plus, optimization tools and bulk bid/AOT functionality help you squeeze every basis point out of your loan sales. Optimal Blue sets itself apart when it comes to managing risk through precise valuation and fallout modeling, use of spec pay-ups and spec durations, real-time MSR values, and much more. Contact our team to learn what this can mean for your business.”

As investors returned from a three-day weekend, corporate earnings were in focus to open the trading week. There was some optimism amongst market participants about the economy as Goldman Sachs and Morgan Stanley reported better than expected results for Q4. However, a strong economy means that the Fed is less likely to cut rates as soon as investors are predicting. Market expectations are still for up to six cuts in 2024. Fed Governor Waller yesterday urged caution for central bankers when the time comes to lower rates. He said that the U.S. central bank should take a cautious and systematic approach when it begins cutting interest rates, a process that can start in 2024 absent a rebound in inflation.

The U.S. economy continues to be resilient, with robust consumer spending. While 2024 started with expectations that inflationary pressures around the world were abating, higher military spending due to various global conflicts as well as rising healthcare costs may lead inflation to be stickier and rates to be higher than markets expect. An escalation in geopolitical tensions in the Middle East, more from incidents in the Red Sea than the war in Gaza, has introduced added costs of recalibrating shipping routes and upward pressure on energy prices. That, along with an economy fueled by large amounts of government deficit spending and past stimulus makes for a thorn in the side of central banks around the globe trying to bring inflation down.

Today’s busy economic calendar began with mortgage applications increasing 10.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending January 12, 2024. Last week’s results included an adjustment to account for the New Year’s holiday. Another increase was expected after the year-end slowing, while the 10-year yield fell 9 basis points during the reporting period with 30-year mortgage rates following suit.

Markets have also received retail sales for December (+.6 percent, also +.6 percent ex auto and gas) and import prices (flat). Later today brings Redbook same store sales, industrial production and capacity utilization for December, November business inventories, the NAHB Housing Market Index for January, a $13 billion Treasury auction of reopened 20-year bonds, and the latest Beige Book from the Fed. Three Fed speakers are scheduled: Vice Chair for Supervision Barr, Governor Bowman, and New York President Williams. We begin the day with Agency MBS prices worse .125-.250 from Tuesday and the 10-year yielding 4.11 after closing yesterday at 4.07 percent after the strong retail sales figures.

Employment

A trillion dollars in credit card debt. That’s A LOT and it’s what Americans currently owe.* The good news? There’s something you can do about it. With access to a wide variety of loan products, you can help your borrowers and boost business while you’re at it. The ability to shop hundreds of loan options with dozens of lenders means you can: * help your clients consolidate debt* and *get creative with home financing so they can reach their homeownership goals.* So, how do you get all this access? By joining your local Motto Mortgage office. Motto Mortgage brokerages are hiring talented loan originators in: AK, AZ, CA, CO, CT, FL, GA, ID, IL, IN, KS, KY, MA, MI, MN, MO, MS, NC, NJ, NM, NV, OH, OK, OR, PA, SC, TN, TX, UT, VA, WA, WI. More of a “make it happen” kind of LO? Schedule a chat to learn about joining Motto HERE.

The Association of Independent Mortgage Experts (AIME) and its advocacy group and political action committee, Broker Action Coalition (BAC) and BACPAC announced they are acting independently (AIME focuses on member services and BAC on advocacy initiatives) and AIME’s CEO Katie Sweeney will be stepping down at the end of March from her current role to lead BAC full time. “AIME has been the backbone of the independent mortgage broker community since 2018, and that’s not going to change,” stated Marc Summers, President of AIME. Along with Sweeney, BAC’s leadership will include former AIME President of Advocacy Brendan McKay who will focus on growing the advocacy network’s members, donors, and programs as the co-founder and Chief Advocacy Officer. Congratulations!

Ranieri Solutions, which has been developing a platform to address the antiquated state of mortgage servicing technology, today announced the appointment of Rob Lux as its Chief Executive Officer to spearhead the company’s go-to-market efforts for its cloud-native servicing platform. The addition of a new CEO is coupled with the recent announcement of a partnership with SAP Fioneer. (The Ranieri platform’s standout feature is its elegant, uniform core and modern user interface which we believe will lower the risk of misconfiguration and incompatibilities. Servicers need the agility to quickly respond to industry changes and seize market opportunities. This modern cloud-based platform was built from the ground-up with servicers in mind.)

The Mortgage Firm announce the promotion of Sheri Nedley to the position of Chief Operating Officer. With a remarkable journey spanning 25 years at the company, Nedley’s promotion is a testament to her exceptional leadership and dedication with time spent as Closing Manager, SVP of Operations, and Head of Capital Markets. As COO, Sheri will oversee the company’s day-to-day operational strategies, aiming to enhance customer experience and drive sustainable growth. Her focus will be on leveraging technology, optimizing operational processes, and nurturing a culture of excellence within the organization.

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Source: mortgagenewsdaily.com

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Servicing, Jumbo, Appraisal, HELOC Products; CA ADU News; Why Extensions Cost Money; Recruiter Interview

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Servicing, Jumbo, Appraisal, HELOC Products; CA ADU News; Why Extensions Cost Money; Recruiter Interview

By:
Rob Chrisman

2 Hours, 29 Min ago

“I’m supposed to respect my elders, but now it’s getting harder and harder for me to find one.” Gradually it’s becoming harder and harder to find a bank that does loans outside of its footprint. Finding people in their late 30s or 40’s is not hard: The median age in the United States is 38. There are plenty of people in our industry in their 40s. You know, the 40s… when you’re like an iPhone 6: you don’t have all the features of the newer models but you’re dependable and affordable. While we’re on ages, yesterday a few folks pointed out that Happy Days first aired on ABC (remember network TV?) fifty years ago yesterday. (It went for 10 years until July 1984.) The show was “set” in Milwaukee but filmed in California which accounts for 20-25 percent of residential loan production and is in the news for its ADU policy. (More below.) Today’s podcast can be found here, and this week’s is brought to you by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products (nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics) unite the people, systems, and stages of the mortgage process. Today’s features an interview with recruiter Brianna King on how job candidates can separate themselves from their competition and common résumé faux pas.

Lender and Broker Services and Software

Spring EQ, ranked as the #1 non-bank and #6 overall home equity lender according to reported data from Bankrate (based on statistics from Inside Mortgage Finance,) knows money can be tight after the holidays. Now is the time to assist your borrowers in tackling their seasonal debt! Spring EQ’s fixed-rate home equity loans and adjustable-rate HELOCs (3yr & 10yr) can help your borrowers get the cash they need without refinancing a low first mortgage rate. Need pricing for a loan? Try Spring EQ’s quick Pricing Calculator and get multiple options in seconds! And with Spring EQ, you can earn up to 2.5 percent in broker compensation on HELOCs and HELOANs. Start 2024 off right and join today’s webinar, which will review the many reasons borrowers want to tap their home equity. Think of Spring EQ first for all your seconds. Become a partner now or contact your Account Executive today.

At this point, the phrase “appraisal modernization” is nothing new, but does it make sense? Are you lost in a jargon jungle, unsure what it means for you? This free webinar recording, “Decoding the Modern Appraisal,” clears the fog and equips you with the knowledge to navigate all things appraisal modernization. Consider it your modern appraisal masterclass, your go-to guide. Industry experts like Scot Rose from Class Valuation, Rachel Robinson from Rocket Mortgage, and Julie Giesbrecht from the FHFA answer your toughest questions like: How are lenders utilizing modern appraisal options? What are the real-world results and benefits of these efforts? How do modern appraisals combat bias? What does the property data collection process look like? And more! Get ahead, get informed, and unlock the secrets of appraisal modernization. Click here to watch and navigate this ever-evolving landscape with confidence!

“Discover your secret weapon in today’s mortgage market: the Lakeview Correspondent Team. In an era where reliable partners are vital, our Correspondent team stands out, providing solutions that enable mortgage lenders to not just compete, but thrive. With the Bayview Non-Agency Product Suite, including Bank Statement, DSCR, and Prime Jumbo ARM’s programs, among others; lenders are equipped with the innovative products necessary to pave a successful path into 2024 and beyond. Don’t be left behind: contact our Regional Business Development professionals today and set your team up for success.”

Servicing Assistance and Software

“Can digitization change the customer experience in 2024? Absolutely! Ask yourself if your potential and existing customers can access the information, decision-making, and results they need 24/7, real-time, and from any device? This is the expectation. Regretfully, many servicers have limited capabilities in this area, and past industry volatility may have impaired your organizational capacity to meet the needs of today’s customers. However, bridging the gap between current functionality and delivering a digital experience doesn’t have to be daunting. Our recent blog, “Break the Rules: Reimagine a Digital Customer Experience in 2024,” explores how digital capabilities can be readily incorporated into your existing processes, delivering innovation, self-serve access, dynamic results, operational efficiencies, cost savings, and more. Want to see how? Meet us in Orlando for MBA’s Servicing Solutions Conference & Expo. A reimagined digital customer experience starts with a better approach, better results, and better software. CLARIFIRE®, truly BRIGHTER AUTOMATION®.”

MBA’s Servicing Solutions Conference and Expo is around the corner, which means it’s almost time for Martini Hour. Servbank, the nation’s premier bank subservicer, and Auction.com are hosting a martini hour that promises to shine and be as lively as the city of Orlando. Indulge in martini flights and delicious food while enjoying the company of friends. The martinis begin flowing on Wednesday, February 21, between 5-9PM ET, at Blue Martini, 9101 International Dr #1182, Orlando, FL 32819. RSVP here. No time for martinis? Meet Servbank, the nation’s premier bank subservicer, at booth #601 or set up some time to connect by emailing us.

When your customers are hit by a natural disaster, they can find themselves face-to-face with financial challenges they never would have expected. And since experts predict the number and intensity of natural disasters will only increase, servicers need to rethink how they help homeowners, before the next crisis hits. After all, ICE data shows that most borrowers in forbearance after disaster events ultimately return to performing status. And what’s more, a multi-year analysis revealed that access to self-service technology may help more borrowers stay in their homes during periods of financial hardship. Read more in ICE’s complimentary case study, “Helping Homeowners in Times of Financial Hardship.”

ADUs: As California Goes, So Goes the Nation?

Are you ready to lend on them? AB-1033 gives California cities the option to allow homeowners to sell their ADUs separately from the main house. Accessory dwelling units, also referred to as ADUs and “granny flats,” have been available in California only as rentals. But the new law, Assembly Bill 1033, is giving Californians the opportunity to buy and sell them as condominiums.

California MBA CEO Susan Milazzo sent me a note yesterday. “The California MBA monitored AB 1033 throughout 2023 and worked to ensure certain amendments were taken to address mortgage industry concerns. Specifically of concern was whether the ADU sale would impact the mortgage note on the primary property. Eventually amendments were taken to include that the country recorder cannot record the separate ADU/condominium with the consent of all lien holders, which addressed our major concerns and allowed us to remove our opposition.”

Lenders and property owners across the nation that ADUs come in all shapes and sizes, like converted garages, a small structure in the backyard, or, as often seen in San Francisco, an unused portion of the main house.

Assemblyman Phil Ting (D-San Francisco) drafted the legislation where property owners in participating cities will be able to construct an ADU on their land and sell it separately, following the same rules that apply to condominiums. It gives homeowners more options for building on their property, and “the hope is, it would create more homeownership,” said Ting.

As with new condominiums, homeowners building ADUs must notify the local utilities, including water, sewer, gas and electric, of the creation and separate conveyance of the unit. The main residence and the ADU will have two different property taxes. Each property will also have to form a homeowner’s association to assess dues to cover the cost of caring for the property’s exterior and shared spaces, such as the driveway, a pool, or a common roof.

California, however, is not the first. Selling ADUs as condominiums is having success in places such as Oregon, Texas, and Seattle, primarily to friends or family members. When Seattle removed regulatory barriers that discouraged property owners from constructing ADUs in 2019, the city issued nearly 1,000 ADU permits, more than four times the number permitted in 2018. In 2022, the city permitted 437 attached ADUs and 551 detached ADUs, which it referred to as backyard cottages. Just under half were on sites with multiple ADUs and one-third were part of a development that included a new single-family residence and sold mostly between $500-800k.

The law, with the backing of the California MBA, removes a state prohibition on the conversion of accessory dwelling units (ADUs) to condominiums. It ties in nicely with the FHFA’s goal of increasing the supply of affordable housing. “FHFA asked the Enterprises to review AB 1033 in the form passed by the California Assembly on May 31, 2023. Specifically, the bill’s proposed language related to the separation of an ADU, and lienholder consent (Section 2) does not appear to conflict with the current Selling Guides of either Enterprise.”

A letter sent to the FHFA, which oversees Freddie Mac and Fannie Mae, earned a response with, “Your letter requests a formal confirmation regarding the Enterprises’ policies for purchases of loans on 2-to-4-unit condominium projects, including projects that were previously single-family homes with an ADU that are converted to condominiums. Information about the Enterprises’ current policies for condominium projects can be found through these links: Fannie Mae Selling Guide Section B4-2.1-01, General Information on Project Standards, Fannie Mae Glossary 2-to-4-unit Condominium Project Characteristics, Freddie Mac Selling Guide Section 5701.2 Condominium Project Review and General Condominium Project Eligibility, and Freddie Mac 2-to-4-unit Condominium Projects.

Capital Markets

For MLOs who locked their borrowers at the lows, I continue to be asked about why extending a rate lock, if even for a few days for something beyond the control of the borrower, costs money. The cost to extend a best-efforts lock reflects the cost incurred by Secondary Marketing to move the corresponding hedge to reflect the new closing date. It’s an easier concept to understand if you acknowledge the inequity of hedging a mortgage pipeline: best efforts locks, which may or may not close, are given for FREE to Loan Officers, then hedged with mandatory security instruments. When a lock extension is granted, the hedge needs to reflect the change in delivery dates.

For example, when a loan comes in with a 45-day lock, your hedge model will pull from your LOS the estimated closing date, to best execute that loan for delivery into the secondary markets. In the process it determines what month security needs to be sold to off-set the 45+ days of interest rate exposure that loan will incur. If that 45-day lock was taken out January 2nd, with an February 15th estimated funding, a February security would probably be sold as the hedge instrument; a ‘only 7 days’ extension might just mean that loan now best executes into a March commitment, meaning you now must buy-back your February coverage, and sell a March security to match the new closing date. This “roll,” from a front month security to a “back” month, has a transactional cost. Much of the fee charged to extend a loan with your secondary group reflects this cost.

In the next four days we’ll have some Fed surveys, retail sales, import prices, housing-related data, and Michigan sentiment on Friday. Besides bills, Treasury supply consists of $13 billion reopened 20-year bonds on Wednesday and $18 billion 10-year TIPS on Thursday. But today there isn’t much to move rates (NY Fed manufacturing for January, Fed Governor Waller speaking, the Treasury auctioning off $75bn of 3- and $68bn of 6-month bills followed by $70bn 42-day CMBs at 1:00pm, and some bank earnings). Last Friday the U.S. 10-year T-note closed yielding 3.95. This morning it’s at 4.01 while current coupon Agency MBS prices are worse by about .250. (The 2-year is at 4.20.)

Employment

A well-capitalized IMB, based in the NJ/PA tri- state market, is seeking Loan Officers, Sales Teams, or possible acquisition opportunities of small to midsize IMBs in NJ, NY, CT, FL, and PA, while expanding in MD, DC, VA, NC, and SC. The IMB’s focus is a highly personable and high touch experience for LOs and Realtors. Organizationally lean, very competitive pricing, a wide array of products, and much higher LO Comp than what is offered by other larger IMBs. The focus is to attract serious loan officers who want an unparalleled service, where your voice matters and you have a seat at the table in growth. If interested, message Anjelica Nixt for a confidential discussion.

“Sagent named #32 on Builtin’s best remote places to work! Sagent is proud to share our recognition from BuiltIn’s 2024 Best Places to Work awards. Securing positions as 32nd among Top 100 U.S. Remote Companies and 76 among Best Mid-Size Companies in the US, this achievement is not just ours, but a direct result of our dynamic team of talented associates who live our values of relevance, reliability, and relentlessness and exemplify intentionality in fostering this cohesive culture in a fully remote setting. Read the blog to learn more here, and we’re hiring! If a dynamic, remote-first culture sounds like your style, head on over to our Careers page to see if there’s a good fit. Come be a part of the best team in fintech that’s building the future of servicing.”

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Source: mortgagenewsdaily.com

Apache is functioning normally

Booking a flight used to be simple. Travelers had the option of booking a seat in either economy or first class. However, more recently, airlines like American Airlines have focused on “product segmentation” — adding in additional fare classes and cabins in an effort to maximize revenue.

Now, travelers have seemingly endless fare options when trying to book a flight. Should you book basic economy or “Main Cabin” — American Airlines’ new term for a standard economy ticket? And what the heck is Main Plus? Let’s dig into the American Airlines class codes, fare classes and more so you can make sense of it all.

American Airlines booking classes

American Airlines uses the following booking classes for revenue (non-award) fares:

  • Basic economy: B.

  • Main Cabin: O, Q, N, S, G, V, M, L, K, H, Y.

  • Premium economy: P, W.

  • Business class: I, R, D, C, J.

  • First class: A, F.

You’ll notice that there aren’t separate booking fare classes for Main Cabin Extra, Main Plus, Main Select or Flagship Business Plus as these are just add-on packages on top of the standard fare in that cabin.

American Airlines fare classes

At current count, American Airlines offers at least 11 different fare classes:

  4. First class (domestic).

  7. Main Select.

  8. Main Plus.

Not every flight is going to have every one of these classes. For example, a domestic U.S. flight will typically offer first class, Main Cabin Extra and Main Cabin seating — with basic economy, Main Plus and maybe even Main Select fares sold on that flight.

Meanwhile, an international flight on American Airlines’ flagship Boeing 777-300ER will offer Flagship first class, Flagship business class, premium economy, Main Cabin Extra and Main Cabin seating — typically with basic economy, Main Plus, and sometimes Main Select fares sold in the Main Cabin and the option to buy Flagship Business Plus in business class.

American Airlines different classes of economy fares

Almost every American Airlines flight offers Main Cabin Extra, Main Cabin and basic economy fares. There are also two fare options — Main Plus and Main Select — that give you access to Main Cabin Extra seats and a few other perks.

So, let’s break down the differences between these American Airlines economy fare classes:

Fare Class

Basic economy

Main Cabin

Main Cabin Extra

Main Select

Changes allowed

Yes, with no fee.

Yes, with no fee.

Yes, with no fee.

Fully refundable.

Seat selection

For a fee.

Free for standard seats.

Complimentary for any extra-legroom seat.

Complimentary access to Main Cabin Extra and Preferred seats.

Complimentary access to Main Cabin Extra and Preferred seats.

Carry-on bag

1 personal item and 1 carry-on.

1 personal item and 1 carry-on.

1 personal item and 1 carry-on.

1 personal item and 1 carry-on.

1 personal item and 1 carry-on.

Boarding group (out of 9 groups)

Group 9 (Group 8 on certain international flights).

Group 7 and 8.

Alcoholic drinks

Available for purchase.

Available for purchase.

Complimentary beer, wine and spirits.

Complimentary beer, wine and spirits, when you select a Main Cabin Extra seat.

Complimentary beer, wine and spirits, when you select a Main Cabin Extra seat.

Eligible for upgrades

Base mileage earnings

2 miles per dollar.

5 miles per dollar.

5 miles per dollar.

5 miles per dollar.

5 miles per dollar.

Compared to other airlines — looking at you, United Airlines — American Airlines’ basic economy isn’t as punitive. Basic economy passengers still get a full-size carry-on bag, are able to purchase seats from the time of booking and AAdvantage elites are still eligible for upgrades to first class.

However, American Airlines passengers earn 60% fewer miles when booking a basic economy seat compared to a Main Cabin fare. Plus, you won’t be able to change your booking.

Purchasing a Main Cabin fare gets you a higher mileage earning rate, free changes (though a fare difference may apply), free seat selection and a slightly earlier boarding group. However, your seat and in-flight experience will be the same — unless you purchase a Main Cabin Extra seat.

Main Cabin Extra technically isn’t a different fare class. Instead, you score a couple of extra perks by purchasing a “Main Cabin Extra” extra-legroom seat — or selecting it for free if you have AAdvantage elite status. In addition to extra legroom, perks include an earlier boarding group and complimentary beer, wine and spirits. However, you still generally get the same seat type and service as Main Cabin.

Main Plus is essentially a fare class package that adds a free checked bag and Main Cabin Extra on top of a standard Main Cabin ticket.

Likewise, Main Select is a different type of fare package that makes your fare fully refundable, bumps you up to Group 4 priority boarding and lets you make confirmed flight changes the day of departure. However, you don’t get a free checked bag with this option.

Why do American Airlines class codes matter?

If you’re opting to earn AAdvantage miles on an American Airlines flight, your booking class generally doesn’t matter. If you booked basic economy, you’ll earn a base of 2 miles per eligible dollar spent. Otherwise, you’ll earn a base of 5 AAdvantage miles per dollar spent. And AAdvantage elites earn a bonus on top of those base earning rates.

However, your booking class matters if you booked a special fare (e.g. as part of a package), plan to apply a mileage upgrade or plan to credit your flight to another mileage program. In these cases, your American Airlines class codes will determine how many miles you earn or how much your upgrade will cost.

For instance, let’s take a flight from New York-John F. Kennedy to Los Angeles. Booking a $108 one-way basic economy fare will earn a base AAdvantage member 174 miles (2x the base fare of $87). If you book the flight as part of a package, it may code as a special fare and earn 248 miles (10% of the 2,475-mile distance). Or, you can credit this basic economy flight to British Airways to earn 619 Avios (25% of the 2,475-mile distance).

However, if you select the $153 Main Cabin fare instead, you’ll earn 645 AAdvantage miles (619 if booked as a special fare) or 619 Avios. Plus, you gain the ability to upgrade this fare to business class for 15,000 miles plus $75 — if there’s upgrade availability.

If you book at the last-minute or a flight is almost sold out, you’ll likely book into a higher American Airlines fare class. AAdvantage mileage earnings would still be calculated based on the cost, but you’ll earn additional miles when crediting to another mileage program.

How do I find my fare class on American Airlines?

When you’re shopping for a ticket on American, the fare classes are listed under “Details” under each departure time.

Click the “Details” button and a screen will pop up with class code info, broken out by ticket type.

For example, in the screenshot above, the flight from Chicago to Dallas has the following fare classes: B in basic economy, N in main cabin and I in first class.

American Airlines classes and fares recapped

American Airlines offers a large variety of fare classes and booking codes.

While the alphabet soup of booking fare codes has been a part of airlines for years, new American Airlines fare classes like Main Plus, Main Select and Flagship Business Plus add new complications when travelers are booking a flight.

However, knowing the differences between the fare classes and picking the right one can help you get the features you value most — whether that’s an extra legroom seat or higher mileage earnings.

(Top photo courtesy of American Airlines)

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

Bear Stearns CEO James Cayne is expected to resign today amid increasing pressure from investors over record losses and the collapse of two hedge funds last summer.

He will join Citigroup’s Charles Prince and Merrill Lynch’s Stan O’Neal, who now sit on the sidelines.

Cayne will likely be replaced by current President Alan Schwartz, a 57-year-old investment banker known for his strong deal-making ability.

Punk Ziegel analyst Richard Bove believes Schwartz is the “right choice” for the job, but warned that the position wouldn’t be easy.

“The task facing Mr. Schwartz is sizable. Outsiders may now be attempting to take control of the company. He must fight this off,” Bove said.

“I believe, as I have written for about a year, that Mr. Cayne must go. He was the architect of what now appears to have been a failed business strategy,” Bove wrote in a note to clients.

The analyst, who maintained a “sell” rating on the stock, slashed his price target on Bear Stearns to $67 from $94 and again reduced his 2008 earnings estimate.

For fiscal 2008, he cut his estimate to $6.59 a share from a previous $7.96 a share, and lowered his 2009 estimate to $7.10 a share from $8.54 a share.

“Its core businesses like mortgages, credit derivatives, prime brokerage, and investment banking may all be facing contraction while the company is losing market share in these shrinking markets. This firm needs to shrink rapidly and then rebuild on a more solid base,” Bove recommended.

Bear Stearns, the fifth-largest U.S. investment bank, took a $1.9 billion write-down in the quarter ended November 30 related to the falling value of subprime mortgage-related securities, leading to its first quarterly loss ever.

And Bove believes the struggling bank and mortgage lender will likely see further writedowns and post higher loan loss reserves in coming quarters.

Shares of Bear Stearns, which have lost 52 percent of their value over the past year, closed at $76.25 Monday on the New York Stock Exchange.

Source: thetruthaboutmortgage.com