Marketplace

Apache is functioning normally

MSR Valuation, Non-QM, VOIE, Online Auction, Broker to Banker Tools; Webinars, Events, and Training

<meta name="smartbanner:author" content="We now have a native iPhone
and Android app.
Download the NEW APP”>


This website requires Javascrip to run properly.

MSR Valuation, Non-QM, VOIE, Online Auction, Broker to Banker Tools; Webinars, Events, and Training

By:
Rob Chrisman

Thu, Jun 13 2024, 11:42 AM

This morning I head to Chicago, IL, a state with 972 licensed mortgage banking companies. Illinois has had its share of severe storm damage (heck, in Sarasota we just had upwards of 10 inches of rain in about 12 hours), and may be joining the ranks of places in the U.S. where the cost of insurance passes the cost of property tax. Coach a borrower through that! The cost and availability of homeowner’s insurance is a big topic in Florida, as is the PACE program. Florida is one of three states (with California and Missouri) that offer this loan program for clean energy. The Florida legislature put some consumer protection provisions into the program, but for various reasons mortgage organizations like the MBAF were sorry to see the bill pass and are working on a veto. For instance, these loans are put into first priority ahead of the homeowner’s mortgage (no one wants to read “predatory” when it comes to any program), and what lender or servicer needs that? (Today’s podcast is found here, and this week’s are sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, cybersecurity, technology, and other services to the mortgage industry. Hear an interview with Richey May’s Michael Nougier on best practices for companies to put in place regarding preventing and reporting cybersecurity breaches.)

Software, Products, and Services for Lenders and Brokers

Interest rates are now double where they were in 2022. Tipping over 8 percent at the end of 2023 and hanging in the 7 percent range nearly all of this year, the current interest rate environment is not helping delinquent homeowners. Gone are the days when modifying your mortgage payment was supported by dropping the interest rate. There is a solution. FHA’s Payment Supplement program doesn’t change the terms of the first mortgage. Read Clarifire’s recent blog, “Servicing Answers to High Interest Rate Pressures,” to find out the details of this solution, along with how old pitfalls could impact your implementation of this program and future loss mitigation options. Don’t let old automation cripple your success. Make sure you’re in a position to help your distressed borrowers navigate economic volatility and avoid default with CLARIFIRE ®, a modern, intelligent innovation that’s truly BRIGHTER AUTOMATION®.

National Homeownership Month presents a prime opportunity for the mortgage business. MortgageFlex executives advise lenders to focus on prequalification to engage potential buyers and start conversations about affordable homeownership. The MortgageFlexONE LOS offers borrower-facing tools and direct CRM access to help lenders engage with prospective buyers and jumpstart the sales process. This proactive approach can instill the dream of homeownership in potential buyers’ minds and expand a lender’s client base. To learn more about the tools driving success in today’s market and how to build your business, reach out to John McCrea.

On the heels of the MBA Secondary in NY and almost 100 client meetings, the AmeriHome team wants you to know that they are listening. Based on client feedback, AmeriHome will focus on developing the products and services that its clients need. To enable that, AmeriHome is hiring in several key areas, including underwriters and a Salesforce Admin! Check out the Careers page for details on all open jobs. If you’re a mortgage broker wanting to leverage the advantages of being a banker but are hesitant because of the complexities and risk associated with compliance and closing documentation, AmeriHome’s Emerging Banker program makes it easy with its new Initial Disclosure and Closing Documents Program! Demand is also increasing for Warehouse Lines, MSR financing and Treasury Management Services offered through its relationship with Western Alliance Bank: click for details. Check out AmeriHome’s Upcoming Events, find your sales rep here, or email them to find out more about what AmeriHome can do for you!

For more than 20 years, RealtyBid has had one focus: bringing buyers and sellers together. Today, the online auction marketplace has become the go-to for exciting real estate buying opportunities and an unsurpassed disposition strategy for sellers. With support from a knowledgeable and experienced staff, RealtyBid’s technology makes real estate transactions less cumbersome and more cost effective for all parties. The RealtyBid platform sets a new standard for online real estate auctions. Check out the new look and learn more about the new enhanced features that just rolled out this month here.

“Truv is the only consumer-permissioned VOIE platform approved with both GSEs, solidifying our commitment to delivering top-notch verification services tailored for mortgage lenders, banks, and credit unions. What does this mean for your business? Faster turn times, lower buyback risks, compliance assurance, and reduced operational costs. Read about why this matters for your business here.”

Cookie-cutter solutions no longer cut it. In today’s market, look for non-conventional financing from an industry leader like Flagstar Bank. Flagstar offers three competitively priced non-QM products: Advantage Bank Statement, Advantage, and Advantage Plus loans. Advantage Bank Statement features flexible qualifying guidelines based on 12 months of bank statements, making it a great choice for self-employed borrowers. The other two, Advantage and Advantage Plus, offer 12-month seasoning on derogatory events, 1-year income documentation, asset depletion, and unlimited cash-outs. Flagstar delivers in the non-QM space, with LTVs up to 90%, loan limits from $100,000 to $3 million, and flexible guidelines, including up to 55% DTI. Looking for a government loan? Flagstar has been doing them since its earliest days. Take advantage of their seasoned government underwriting specialists and limited-time LLPA reductions for no-score borrowers. For almost four decades, Flagstar has provided smart lending solutions to its broker partners, and, with $113 billion in assets, they have the strength and resources you can rely on. Start a conversation with your AE today, or click here to learn more.

Events, Training, and Webinars Through Next Week

Over the last three months, the Optimal Blue Mortgage Market Indices has seen an increase of 45 bps, followed by a 25-bps decrease to 6.91 on June 5. This fluctuation is an indication that the rate market has experienced increased volatility over the last quarter. Market volatility makes hedging profit margins significantly more challenging, which can result in your hedge underperforming, impacting profit margins even further. To learn more about advanced hedging concepts, join the Hedging 201 webinar led by Optimal Blue experts on June 18 at 1 p.m. CT. This session will cover essential topics such as pull-through rates, the impact of clean data on your model, loan sale best practices, duration models, as well as position and gain/loss reconciliation. Secure your spot for the Hedging 201 webinar today to gain valuable insights on hedging in a volatile market.

Join Curinos on Jun 18th at 1pm CT for an insightful webinar on margin-management strategies to optimize your mortgage market position, sustain competitive advantage and maximize profitability. In this session, we’ll explore key metrics and methodologies for understanding your current market position, identifying optimal pricing strategies and maintaining a strong go-to-market framework. Whether you’re a seasoned margin-management professional or only peripherally involved in pricing decisions, this webinar offers valuable insights and practical pointers to help you navigate market complexities and achieve sustainable success. Reserve your spot now!

A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future.

Today will be another episode of The Big Picture at 3PM ET, Rich Swerbinsky is interviewing the esteemed Jodi Hall about all things mortgage.

Simplify the process of reverse mortgages with the Plaza Home Mortgage live session on Thursday, June 13, 11:00 AM PT / 2:00 PM ET featuring Mark Reeve, Vice President of Plaza’s Reverse Mortgage Division.

Join CoAMP and Advantage Credit on June 13th, 5-7 PM at Sheraton DTC for a fun filled Happy Hour that includes networking and an update on current credit issues/practices by Dena Falbo w/Advantage Credit. Admission is free, there will be food and beverages for purchase.

Friday the 14th will see an episode of The Mortgage Collaborative’s Rundown with Melissa Langdale and me covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET. We have Austin Lampson who was just highlighted as one of the top 5 female loan originators in the country in 2023 and have been in the top 1 percent of loan originators since 2014!

On June 17, 9:00 AM – 4:00 PM (Eastern), FHA is offering a free, in-person FHA Appraisal Training in Nashville, TN. This training will take an in-depth look at a variety of appraisal-related topics including property acceptability criteria; minimum property requirements; property defects; appraiser responsibilities and requirements.

It’s that time again, Pensford’s Q2 Interest Rate Webinar with JP Conklin takes place June 18th at 1:00pm ET. Topics of discussion include fixed and floating rate forecasts, rate cuts in 2024, hedging costs and strategies, soft landing or recession, disinflation and labor market weakness.

FHA Credit Underwriting Training in Nashville, TN, June 18, 9:00 AM – 4:00 PM (Eastern). This free, in-person training will provide an overview of FHA underwriting procedures and take an in-depth look at a variety of topics including credit, income, and asset (CIA) documentation; manual underwriting; automated underwriting systems (AUS); closing; and more.

Your 2024 Midpoint Reset with Dr. Bruce Lund, June 18th at 2pm ET.

Learn more about HFA Advantage’s features and benefits, eligibility and homebuyer education requirements and new product enhancements, register for a Freddie Mac complimentary webinar on Tuesday, June 18, 2:00 PM -3:30 PM (EST). You’ll also learn more about DPA One®, a new online platform developed to help lenders and loan officers find and match their borrowers to eligible down payment assistance programs through a single, online access point.

Join Texas Mortgage Bankers Association on Thursday, June 20 at 11:30 am – 12:30 pm for an insightful and impactful webinar on Strategies for Growing Builder Business with Nicollette Chapman, Senior Vice President of the Mortgage Division at Zonda, and moderated by Bryan Walker, Director of Business Development at Zonda.

June 20-21, in the one and only Honolulu, the MBAH’s annual conference will take place! No neckties required!

Join TMBA for an insightful and impactful webinar on Strategies for Growing Builder Business, June 20th from 11:30 am – 12:30 pm, with Nicollette Chapman, Senior Vice President of the Mortgage Division at Zonda, and moderated by Bryan Walker, Director of Business Development at Zonda.

FHA’s Office of Single Family Housing, in collaboration with the Department of Housing and Urban Development’s (HUD) Office of Housing Counseling announced the availability of its new, pre-recorded webinar, Overview of Resources for First-Time Homebuyers. For both program participants and prospective homebuyers, this free webinar addresses some key home buying myths, provides an overview of FHA single family mortgage programs, and offers guidance on working with HUD-approved housing counseling agencies. Read HUD’s press release for more information.

The Non-QM Town Hall is back bringing you a deep dive into the market dynamics of Non-QM, sharing secondary market updates, providing insights for seasoned Non-QM professionals, and exploring strategies for newcomers. This Town Hall format fosters an interactive dialogue with our featured Non-QM leaders. The first session is Thursday, June 20 with the State of Non-QM, followed by two sessions aimed at Non-QM’s primary audiences: Business Owners in July and Real Estate Investors in August. Sign up here.

Capital Markets

MCT and Lender Price announced today that they have joined forces to improve mortgage pricing with loan-level MSR values. MCT’s MSR grids now allow Lender Price PPE clients to be more granular, profitable, and efficient when generating their front-end borrower pricing and managing their MSR portfolio. “Lender Price has shown a commitment to providing the top-performing pricing experience for mortgage lenders by integrating the industry’s most granular MSR values,” said Curtis Richins, president and CEO of MCT. Mortgage lenders will save time and money through faster and more strategic best execution decisions, dynamic margin management, and stronger pricing analytics, all in one enterprise pricing engine. “Our collaboration with MCT marks a significant milestone in our mission to provide lenders with innovative tools,” said Dawar Alimi, CEO and Co-Founder of Lender Price. Read the full press release to learn more about this partnership and the advancements improving performance for mortgage lenders.

For you capital markets nerds, Freddie Mac announced it will voluntarily delist its last remaining security trading on the New York Stock Exchange (NYSE). The bond, Debt Securities Due 2025 (CUSIP 3134A2HG6), trades under ticker symbol FMCC. It was issued in 1998. Freddie Mac will take all necessary steps to delist the bond, including filing a Form 25 with the Securities and Exchange Commission and the NYSE after the ten-day notice period has elapsed. Freddie Mac has not arranged for listing and/or registration of the bond on another national securities exchange or for its quotation in a quotation medium. Freddie Mac expects the last day of trading to be on or around July 1. Freddie Mac voluntarily delisted its common stock from the NYSE in 2010 at the direction of its conservator, the Federal Housing Finance Agency. The continued listing of this bond would subject Freddie Mac to rules and administration that are unnecessary given its status in government conservatorship.

Yesterday, Guaranteed Rate, the second-largest retail mortgage lender in the United States, announced the launch of its first Residential Mortgage-Backed Securities (RMBS) deal of 2024, marking the company as the first 100 percent retail non-bank lender to re-enter the securitization space with a Prime Jumbo deal since the pandemic. “This deal highlights the shift in strategy Guaranteed Rate has implemented to prove its commitment to offering robust financial solutions regardless of market conditions. By providing a new outlet for liquidity, the company is doubling down on supporting the industry and its borrowers while banks are exiting the mortgage lending space due to new regulations.”

Yesterday was quite a pivotal day for markets with both the latest CPI inflation reading and FOMC rate decision. May’s inflation data came in softer than expected (good news for the Fed), though the Federal Open Market Committee unanimously voted to leave the federal funds rate target range unchanged at 5.25-5.50 percent. The FOMC is now projecting only one rate cut in 2024, with some participants believing there will be two cuts, compared to the consensus three rate cuts predicted this year at the March meeting. The FOMC also moved up its projection for the terminal rate, reinforcing policymakers’ public calls to keep borrowing costs higher for longer to suppress inflation. For those keeping track, headline CPI was unchanged in the month, the first flat reading since July 2022. Core CPI increased by 0.2 percent, the smallest increase since August 2021.

PPI (-2. percent) and weekly jobless claims (242k) kicked off today’s economic calendar. Later today brings several Treasury auctions that will be headlined by reopened 20-year bonds, 5-year TIPS, and reopened 30-year bonds, Freddie Mac’s Primary Mortgage Market Survey, and Fedspeak resumes with New York Fed President Williams delivering remarks. We begin the day with Agency MBS prices better by about .125 from Wednesday’s close, the 10-year yielding 4.26 after closing yesterday at 4.30 percent, and the 2-year at 4.68 after continued inflation news.

Board Member Wanted

The American Credit Union Mortgage Association (ACUMA) is seeking a volunteer board member to join the association’s governing Board of Directors and provide guidance to it and ACUMA on how best to serve its growing membership. “ACUMA is a non-profit association dedicated to advancing mortgage lending opportunities and practices within credit unions. The ACUMA Board of Directors, numbering nine volunteers, sets the association’s governance and provides guidance to the ACUMA President. Board members each serve three-year terms, staggered to maintain experience and continuity while gaining access to new ideas and guidance. Among other things, to be eligible for a full or associate board position the candidate must be employed at an ACUMA member credit union or CUSO. Submit your resume with a request for consideration to ACUMA board member Pam Davis.

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

Source: mortgagenewsdaily.com

SKIP ADVERTISEMENT

Source: nytimes.com

Apache is functioning normally

2024 Market Research Unveils Untapped Online Potential Amid Strong In-Store Shopping Preference

CHARLESTON, S.C., Feb. 26, 2024 /PRNewswire/ — In a groundbreaking study that could redefine ecommerce strategies, the 2024 Home Decor Ecommerce Market Research Report by 2 Visions has revealed a significant willingness among consumers to purchase home decor items online, with an astounding 82.46% expressing openness to online shopping. This finding challenges the long-held belief that physical retail spaces hold undisputed dominance in the home decor sector.

View the full 2024 Home Décor Ecommerce Market Research Report.


Continue Reading

Post this

Source: prnewswire.com

Apache is functioning normally

Editor’s Note: Parts of this story were auto-populated using data from Curinos, a mortgage research firm that collects data from more than 250 lenders. For more details on how we compile daily mortgage data, check out our methodology here.

Mortgage rates continue their modest decline this week, although 30-year fixed rates continue to hover well above 7%. According to data from Curinos analyzed by MarketWatch Guides, today’s 30-year fixed rate is down to 7.22% APR. 

On Friday, a stronger-than-expected jobs report led Lawrence Yun, chief economist for the National Association of Realtors, to predict rates will continue to remain above 7% for the next month. 

While high rates continue to affect the housing market, there’s a silver lining for younger and first-time homebuyers. Real estate marketplace Realtor.com released data Tuesday indicating there are more smaller and lower-priced homes on the market than this time last year, based on price-per-square-foot data. Since last May, there has been a 46.6% increase in the amount of homes in the $200,000 to $350,000 price range across the U.S.

Here are today’s average mortgage rates:

  • 30-year fixed mortgage rate: 7.22%
  • 15-year fixed mortgage rate: 6.47%
  • 5/6 ARM mortgage rate: 7.09%
  • Jumbo mortgage rate: 7.15%

Current Mortgage Rates

Product Rate Last Week Change
30-Year Fixed Rate 7.22% 7.40% -0.18
15-Year Fixed Rate 6.47% 6.71% -0.24
5/6 ARM 7.09% 7.07% +0.02
7/6 ARM 7.20% 7.24% -0.04
10/6 ARM 7.27% 7.30% -0.03
30-Year Fixed Rate Jumbo 7.15% 7.25% -0.10
30-Year Fixed Rate FHA 6.89% 7.02% -0.13
30-Year Fixed Rate VA 6.91% 7.04% -0.13

Disclaimer: The rates above are based on data from Curinos, LLC. All rate data is accurate as of Friday, June 14, 2024. Actual rates may vary.

>> View historical mortgage rate trends

Mortgage Rates for Home Purchase

30-year fixed-rate mortgages are down, -0.18

The average 30-year fixed-mortgage rate is 7.22%. Since the same time last week, the rate is down, changing -0.18 percentage points.

At the current average rate, you’ll pay $680.14 per month in principal and interest for every $100,000 you borrow. You’re paying less compared to last week when the average rate was 7.40%.

15-year fixed-rate mortgages are down, -0.24

The average rate you’ll pay for a 15-year fixed-mortgage is 6.47%, a decrease of -0.24 percentage points compared to last week.

Monthly payments on a 15-year fixed-mortgage at a rate of 6.47% will cost approximately $869.46 per $100,000 borrowed. With the rate of 6.71% last week, you would’ve paid $882.69 per month.

5/6 adjustable-rate mortgages are up, +0.02

The average rate on a 5/6 adjustable rate mortgage is 7.09%, an increase of +0.02 percentage points over the last seven days.

Adjustable-rate mortgages, commonly referred to as ARMs, are mortgages with a fixed interest rate for a set period of time followed by a rate that adjusts on a regular basis. With a 5/6 ARM, the rate is fixed for the first 5 years and then adjusts every six months over the next 25 years.

Monthly payments on a 5/6 ARM at a rate of 7.09% will cost approximately $671.36 per $100,000 borrowed over the first 5 years of the loan.

Jumbo loan interest rates are down, -0.10

The average jumbo mortgage rate today is 7.15%, a decrease of -0.10 percentage points over the past week.

Jumbo loans are mortgages that exceed loan limits set by the Federal Housing Finance Agency (FHFA) and funding criteria of Freddie Mac and Fannie Mae. This generally means that the amount of money borrowed is higher than $726,200.

Product Monthly P&I per $100,000 Last Week Change
30-Year Fixed Rate $680.14 $692.38 -$12.24
15-Year Fixed Rate $869.46 $882.69 -$13.23
5/6 ARM $671.36 $670.01 +$1.35
7/6 ARM $678.79 $681.50 -$2.71
10/6 ARM $683.53 $685.57 -$2.04
30-Year Fixed Rate Jumbo $675.41 $682.18 -$6.77
30-Year Fixed Rate FHA $657.93 $666.65 -$8.72
30-Year Fixed Rate VA $659.27 $667.99 -$8.72

Note: Monthly payments on adjustable-rate mortgages are shown for the first five, seven and 10 years of the loan, respectively.

Factors That Affect Your Mortgage Rate

Mortgage rates change frequently based on the economic environment. Inflation, the federal funds rate, housing market conditions and other factors all play into how rates move from week-to-week and month-to-month.

But outside of macroeconomic trends, several other factors specific to the borrower will affect the mortgage interest rate. They include:

  • Financial situation: Mortgage lenders use past financial decisions of borrowers as a way to evaluate the risk of loaning money.
  • Loan amount and structure: The amount of money that bank or mortgage lender loans and its structure (including both the term and whether its a fixed-rate or adjustable-rate).
  • Location: Mortgage rates vary by where you are buying a home. Areas with more lenders, and thus more competition, may have lower rates. Foreclosure laws can also impact a lender’s risk, affecting rates.
  • Whether borrowers are first-time homebuyers: Oftentimes first-time homebuyer programs will offer new homeowners lower rates.
  • Lenders: Banks, credit unions and online lenders all may offer slightly different rates depending on their internal determination.

How To Shop for the Best Mortgage Rate

Comparison shopping for a mortgage can be overwhelming, but it’s shown to be worth the effort. Homeowners may be able to save between $600 and $1,200 annually by shopping around for the best rate, researchers found in a recent study by Freddie Mac. That’s why we put together steps on how to shop for the best mortgage rate.

1. Check credit scores and credit reports

A borrower’s credit situation will likely determine the type of mortgage they can pursue, as well as their rate. Conventional loans are typically only offered to borrowers with a credit score of 620 or higher, while FHA loans may be the best option for borrowers with a FICO score between 500 and 619. Additionally, individuals with higher credit scores are more likely to be offered a lower mortgage interest rate. 

Mortgage lenders often review scores from the three major credit bureaus: Equifax, Experian and TransUnion. By viewing your scores ahead of lenders considering you for a loan, you can check for errors and even work to improve your score by paying down balances and limiting new credit cards and loans. 

2. Know the options

There are four standard mortgage programs: conventional, FHA, VA and USDA. To get the best mortgage rate and increase your odds of approval, it’s important for potential borrowers to do their research and apply for the mortgage program that best fits their financial situation. 

The table below describes each program, highlighting minimum credit score and down payment requirements. 

Though conventional mortgages are most common, borrowers will also need to consider their repayment plan and term. Rates can be either fixed or adjustable and terms can range from 10 to 30 years, though most homeowners opt for a 15- or 30-year mortgage. 

3. Compare quotes across multiple lenders

Shopping around for a mortgage goes beyond comparing rates online. We recommend reaching out to lenders directly to see the “real” rate as figures listed online may not be representative of a borrower’s particular situation. While most experts recommend getting quotes from three to five lenders, there is no limit on the number of mortgage companies you can apply with. In many cases, lenders will allow borrowers to prequalify for a mortgage and receive a tentative loan offer with no impact to their credit score.

After gathering your loan documents – including proof of income, assets and credit – borrowers may also apply for pre-approval. Pre-approval will let them know where they stand with lenders and may also improve  negotiating power with home sellers. 

4. Review loan estimates

To fully understand which lender is offering the cheapest loan overall, take a look at the loan estimate provided by each lender. A loan estimate will list not only the mortgage rate, but also a borrower’s annual percentage rate (APR), which includes the interest rate and other lender fees such as closing costs and discount points. 

By comparing loan estimates across lenders, borrowers can see the full breakdown of their possible costs. One lender may offer lower interest rates, but higher fees and vice versa. Looking at the loan’s APR can give you a good apples-to-apples comparison between lenders that takes into account both rates and fees.

5. Consider negotiating with lenders on rates

Mortgage lenders want to do business. This means that borrowers may use competing offers as leverage to adjust fees and interest rates. Many lenders may not lower their offered rate by much, but even a few basis points may save borrowers more than they might think in the long run. For instance, the difference between 6.8% and 7.0% on a 30-year, fixed-rate $100,000 mortgage is roughly $5,000 over the life of the loan.

Expert Forecasts for Mortgage Rates

Mortgage rates have cooled significantly over the past several months. After the 30-year fixed-rate mortgage hit 8% last October, it ended 2023 closer to 7%. In fact, the average for Q4 2023 was 7.3%.

Analysts with Fannie Mae and the Mortgage Bankers Association (MBA) both project that rates will fall going into 2024 and throughout next year.

Fannie Mae economists expect rates to drop more quickly, falling below 6% by Q4 2024. Meanwhile, the MBA’s forecast for Q4 2024 is 6.1% and 5.9% for Q1 2025.

More Mortgage Resources

Methodology

Every weekday, MarketWatch Guides provides readers with the latest rates on 11 different types of mortgages. Data for these daily averages comes from Curinos, LLC, a leading provider of mortgage research that collects data from more than 250 lenders. For more details on how we compile daily mortgage data, check out our comprehensive methodology here. Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.

Source: marketwatch.com

Apache is functioning normally

Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.

  Home equity loan Home equity line of credit (HELOC) Interest rate Fixed Variable Monthly payment amount Fixed Variable Closing costs and fees Yes  Yes, might be lower than other loan types  Repayment period Typically 5-30 years Typically 10-20 years

FAQ

What is a rate lock?

Interest rates on mortgages fluctuate all the time, but a rate lock allows you to lock in your current rate for a set amount of time. This ensures you get the rate you want as you complete the homebuying process.

What are mortgage points?

Mortgage points are a type of prepaid interest that you can pay upfront — often as part of your closing costs — for a lower overall interest rate. This can lower your APR and monthly payments. 

What are closing costs?

Closing costs are the fees you, as the buyer, need to pay before getting a loan. Common fees include attorney fees, home appraisal fees, origination fees, and application fees.

If you’re trying to find the right mortgage rate, consider using Credible. You can use Credible’s free online tool to easily compare multiple lenders and see prequalified rates in just a few minutes.

Source: foxbusiness.com

Apache is functioning normally

Processing, Correspondent, Valuation Tools; CPI! The CFPB Proposes What? Figure Streamlining HELOCs and More

<meta name="smartbanner:author" content="We now have a native iPhone
and Android app.
Download the NEW APP”>


This website requires Javascrip to run properly.

Processing, Correspondent, Valuation Tools; CPI! The CFPB Proposes What? Figure Streamlining HELOCs and More

By:
Rob Chrisman

Wed, Jun 12 2024, 11:35 AM

Florida became a state in 1845. Sixteen years later, kites were used in the American Civil War to deliver letters, news, and newspapers. Now we have… the internet. Here in Sarasota, at the MBA Florida Conference, yesterday’s CFPB proposal turned heads. A “rule” would remove medical bills from most credit reports, “increase privacy protections, help to increase credit scores and loan approvals, prevent debt collectors from using the credit reporting system to coerce people to pay, stop credit reporting companies from sharing medical debts with lenders and prohibits lenders from making lending decisions based on medical information.” “Just because little Timmy can’t hit a baseball doesn’t mean they need to narrow the plate to make throwing strikes harder,” said one person. “Do we need more people bidding up starter homes?” asked another. “Let’s leave off mortgage payments, or late payments, from credit reports,” said sarcastically said another. Click on the link above to comment and stay tuned! (Today’s podcast is found here, and this week’s are sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, cybersecurity, technology, and other services to the mortgage industry. Hear an interview with Zavvie’s Maya Velazquez on cash offers and buy-before-you-sell modern bridge solutions to empower buyers.)

Software, Products, and Services for Lenders and Brokers

Fewer new mortgages are being originated than in years past as homeowners are reluctant to give up record-low interest rates to finance a new property at rates north of 6 percent. Now, lenders are turning to special loan products to earn borrowers’ business. From ARMs to buydowns, SCRA loans and more, servicers need to make sure their teams are ready to handle these special loans. Read ICE’s new blog to learn why special loan products are rising in popularity, and to see how the ICE Mortgage Technology Professional Services experts can help bring your team up to speed.

The Non-QM Town Hall is back bringing you a deep dive into the market dynamics of Non-QM, sharing secondary market updates, providing insights for seasoned Non-QM professionals, and exploring strategies for newcomers. This Town Hall format fosters an interactive dialogue with our featured Non-QM leaders. The first session is Thursday, June 20 with the State of Non-QM, followed by two sessions aimed at Non-QM’s primary audiences: Business Owners in July and Real Estate Investors in August. Guided by our panel of experts (Aaron Samples, Chief Revenue Officer of Logan Finance Corporation, Tom Davis, Chief Sales Officer of Deephaven Mortgage, and Tom Hutchens, Executive Vice President of Production for Angel Oak Mortgage Solutions) it is moderated by Andrew Berman, Head of Outreach and Engagement at American Business Media. Expect engaging discussions on finding Non-QM borrowers, understanding their needs, and leveraging Non-QM loans to grow your business, backed by the wealth of knowledge and experience of our panelists. Sign up here.

The GSEs and FHA recently issued updates to their selling guides and appraisal requirements, outlining changes for lenders and appraisers concerning ROVs. These requirements have an implementation deadline, making it imperative for lenders and appraisers to fully comprehend the changes ahead. To help with this, Class Valuation is hosting a webinar on Friday, June 28, titled “Navigating New Reconsideration of Value (ROV) Requirements for Lenders.” Expert panelists will provide a clear and actionable guide to understanding what changes need to be made and how to make them. You will learn the impact of the new ROV guidelines on lenders, how the borrower-initiated ROV process works, and your responsibilities as a lender under the new guidelines. Register here.

“In today’s competitive marketplace, Citizens stands out with a culture of unparalleled service and a commitment to personal relationships. These characteristics have always been the hallmark of our correspondent channel. Citizens Correspondent Lending remains committed to our community of nationwide lenders and we very excited for the remainder of 2024 and beyond! We are investing in our future with a vision to be able to do more for our valued partners than ever before, including a new strategic partnership with ICE Mortgage Technology and a transition to the Encompass platform. We also continue to expand our presence and add new partners in all markets. We offer a full suite of execution and delivery options, including Bulk Mandatory, AOT, Delegated Best-Efforts and Non-Delegated Best-Efforts, all Backed by the strength and security of one of the country’s oldest and largest financial institutions. Our team of experienced Regional Account Managers and best-in-class Operations and Underwriting colleagues are ready to partner with you today! Find a Senior Regional Account Manager near you at correspondent.citizensbank.com.”

Want to soak up some sun instead of being stuck in the office this summer? Make sure your pipeline keeps churning with wemlo® processing support. Processors at wemlo, who support a variety of loan products and lenders, hustle behind the scenes so your business never skips a beat. Plus, lining up wemlo processing support is a breeze. Simply book a 1:1 call, set up your profile, go over the processing agreement, meet your pod (1 manager and 2 processors), and start submitting loans. Ready to trade office hours for beach hours? Enjoy peace of mind knowing your business is in good hands: book your wemlo demo today.

Figure Attracting Attention

Figure Technology Solutions has launched Figure Connect, a “first-of-its-kind blockchain-based multi-seller, multi-buyer marketplace of private credit loans.” With Figure’s HELOC product, consumers can get approved for a loan in as few as 5 minutes, with funding in as little as five days. “With Figure Connect, originators can receive forward commitments from buyers, lock active bids, control loan pricing to balance profitability and volume, and deliver pools of loans into those commitments. This functionality is facilitated with common, standardized sale terms and documentation. Figure Connect is designed to drive efficiencies for loan buyers and sellers and reduce an often months-long settlement process into days.”

“Leveraging the power of the Provenance Blockchain, a distributed, proof-of-stake blockchain, Figure Connect is designed to drive efficiencies for loan buyers and sellers and reduce an often months-long settlement process into days. Figure Connect helps disintermediate the loan delivery process, standardizing key characteristics of loan pools and sale terms, and creating greater price certainty ahead of the initial loan origination. Ultimately, Figure believes this engenders market liquidity by adding certainty of funding to loan originators and collateral composition to loan buyers.”

“Figure Connect marks another transformative step towards creating the first highly liquid private capital marketplace for loans, as we now offer unique certainty of funding to loan originators and standardization to loan buyers,” said Michael Tannenbaum, CEO of Figure. Figure Connect’s initial partners include The Loan Store, Movement Mortgage, Bayview Asset Management, and Saluda Grade. The Figure Connect marketplace is now available to all other participants in Figure’s lending ecosystem. (Those interested can email [email protected].)

Figure stated, “Today’s private consumer credit capital markets don’t work. Take non-QM mortgage as an example. Every lender has their own unique origination standards. Lenders negotiate one-off loan purchase agreements (LPAs) with buyers, where no two LPAs are the same. Once a lender delivers their contractual obligation of loans, they hope the buyer either re-ups for more loans or a new buyer takes their place, with yet another new and different LPA. The resulting loan pools are bespoke, non-homogenous, and illiquid. The only path to liquidity is frequently pledging loans into the capital markets for securitization.

“Periodically, but with consistency, capital markets shut down. When this happens, not only do buyers not re-up on new LPAs, they often stop buying outright, even with outstanding commitments to do so. How do they do this when there is a contract in place to buy? They delay wires, reject delivered loans or, as in 2008, they say, ‘sue me.’

“Lenders can’t turn off loan origination… Doing so kills their business. To manage inevitable capital market shutdowns and keep the loans flowing, lenders need to hold excess equity on their balance sheet. Limiting production negatively impacts consumers. Non-QM mortgages came to the market with great fanfare, offering flexibility a conforming mortgage couldn’t, but represented just 2 percent of 2023 mortgage production. The lack of a persistent and deep capital market ultimately puts a limit on origination and results in restrictive terms and higher rates for consumers.

“Contrast this to the government sponsored entity (GSE) conforming mortgage market (e.g., Fannie Mae and Freddie Mac). The same non-QM lender that needs to throttle monthly production due to the volatile capital markets and their own equity constraints can originate an unlimited amount of Fannie Mae and Freddie Mac loans, as the bid is always there. The GSEs standardize production. Fannie Mae uses Decision Underwriter and Freddie Mac uses Loan Prospector to standardize underwriting. There are single seller agreements for each GSE – not bespoke LPAs. They support a to-be-announced (TBA) security market. TBAs allow lenders to sell forward production, locking in prices and liquidity. The GSE mortgage TBA market is the second largest market in the world (behind only U.S. Treasuries) and trades $200B+ a day. And the GSEs guarantee the cash flows of their pass-through securities. While government backing was always implicit, it became explicit when the GSEs went into conservatorship. Investors only take first order rate risk when buying Fannie Mae and Freddie Mac paper (with second order credit exposure to the guarantor).

“Figure believes that the fundamentals of mortgage underwriting (credit, income, and property) can all be captured electronically without any humans. Figure built a loan origination system (LOS) and capital market to do this. And to ensure the immutability of the data and our adherence to process, Figure put the loans and all of the underlying data on a public blockchain, Provenance Blockchain. Figure secured warehouse lending in 2018, did the first securitization of its loans in 2020, and in 2023 did the first AAA-rated securitization of its loans. Removing humans from the origination process and using immutable technology allowed Figure to dramatically reduce the TPR process, saving significant dollars on warehouse pledging, trades, and securitizations.

“Figure has a B2B2C model for third parties to use Figure’s automated LOS. Since launch, Figure and its current 90+ third party partners have originated over $10 billion in HELOCs. Because of the automation of the underwriting, all the loans are the same irrespective of the lender. Figure’s LOS brought GSE-like AAA-rated homogeneity, transparency, and certainty to the market.

“Figure recently facilitated a milestone transaction: the first loan sale on the ‘Figure Connect’ marketplace, with multiple buyers and sellers using a common LPA and leveraging Figure’s LOS for standardized origination. The launch of Figure Connect, which connects originators directly with buyers for loan sales using common documentation, reps and warranties, was years in the making: Figure built a partner lender network on its common LOS, and convince loan buyers that (1) their unique differences across LPAs did not result in any performance improvement and a common LPA would work and (2) Figure Connect was their best opportunity to source collateral. Figure had to prove we could achieve a highly competitive AAA-rated securitization takeout for a fully automated underwriting process.

“The multi-buyer, multi-seller common LPA paradigm sets the foundation for a permanent capital vehicle that can buy loans from the marketplace, package those loans into an ‘guaranteed’ pass through and sell to investors. Figure is working with capital partners to stand up this vehicle to facilitate a TBA market for lenders and investors, and we are also working with sell-side banks that can make markets in both the TBA and the pass-throughs. This ecosystem will leverage Figure’s LOS for homogeneity, efficiency and ratings and Figure Connect for liquidity. The goal is to deliver a market first by year end 2024: an “always on” liquid GSE-like market for non-GSE credit.

“Without blockchain, Figure could not stand up and sustain this new capital market ecosystem. Blockchain displaces trust with truth. The ability to capture data electronically and store that data in an immutable ledger dramatically reduces the need for TPR. Remit and loan performance can be shown real time. The certainty of data reduces the guarantor cost of credit support. And with loans, pass-through securities, remit data and the guarantor’s capital all recorded on public blockchain, we can swap the opaqueness that took down the mortgage guarantors in 2008 with real-time, shared transparency that should keep access to capital open, when needed.

“And blockchain facilitates frictionless markets. Figure uses the Digital Asset Registry (DART) to record loan ownership on blockchain. Unlike the Mortgage Electronic Registry System (MERS), DART ‘listens’ for transactions, updating the registry as transactions occur. Unlike MERS in 2008, the record of ownership is never out of date. Figure uses Figure Market’s ATS for the trading of pass through and TBA securities, allowing for 24x7x365 bilateral transactions with instant settlement.

“Freddie Mac’s recent interest in the second lien space has prompted many to question how the GSEs might impact Figure’s business. However, given the automation and lower costs that Figure has brought to the ecosystem, the right question is actually when will Figure impact the mass market mortgage business today dominated by the GSEs.

“The Figure HELOC process lowers costs by 80 percent. With its meaningful investment in artificial intelligence, this cost advantage will only grow. Figure’s modern loan settlement and payment infrastructure ensures loan investors get paid with significantly greater speed and accuracy vs. the status quo.

“We see Figure Connect’s value in ALL lending markets – not just HELOC. The Figure LOS that our partners use today not only originates HELOCs, it is designed to originate everything from auto to first lien mortgage loans using the same automated processes. We believe Figure Connect benefits from economies of scale and diversification of credit, while lenders capture a much lower origination cost coupled with certainty in takeout. This combination makes every market, including conforming loans, open to change.”

Capital Markets

Bond prices finally rose yesterday after two days of losses following last Friday’s release of a stronger-than-expected jobs report for May. Yesterday’s bond market action was helped by a strong $39 billion 10-year note sale, which met much better demand than note sales over the past couple of weeks. It was a large chunk of this week’s Treasury debt issuance, totaling $127 billion.

But most of this week’s market movement hinges on today, with the June Federal Open Market Committee meeting (no change expected, but pay attention to the dot plot) and the Consumer Price Index release (the annualized headline reading was expected to remain static at 3.4 percent, while the annualized core reading was expected to cool by a tenth of a percent to 3.5 percent). Hope amongst investors today is that CPI data supports the case for the Fed to cut rates this year. We did learn yesterday that the NFIB Small Business Optimism Index posted another modest gain in May, reaching the highest level this year, although it remains below its 50-year average.

Today’s risk-filled calendar kicked off with mortgage applications from MBA increasing 15.6 percent from one week earlier, a big jump. We’ve also received all-important May consumer prices. CPI increased .2 percent month-over-month and the core, ex-food & energy, was +.2 as well, +3.4 percent year-over-year versus 0.3 percent and 3.4 percent previously with the core up () versus. 0.3 percent and 3.6 percent in April. Real weekly earnings () when they were seen increasing 0.2 percent month-over-month after falling 0.4 percent in the prior reading.

Now that the CPI data has been released, attention will turn to the conclusion of the FOMC meeting this afternoon, with the Fed’s interest rate decision and Fed Chair Powell’s follow-up press conference. The Fed is anticipated to maintain its current forward guidance, weighing the potential need for further rate hikes to control inflation against the belief that existing rates are adequate to continue reducing inflation. After CPI, Agency MBS prices are better by roughly .5 and the 10-year yielding 4.27 after closing Tuesday at 4.40 percent; the 2-year is down to 4.69.

Employment

Midwest growth and expansion opportunity! A strong, stable IMB with 35 years of lending experience is looking to expand its national footprint in the Midwest through an acquisition or a partnership with production teams or a regional bank. The IMB is licensed in 48 states with a stable capital base and is looking to partner/acquire loan production teams that are looking for the support they need to survive and thrive. They are looking for strong leaders that can see a vision for growth and opportunity to growth the Midwest into a region of strength. If you are a strong retail loan origination team or regional bank looking for stability and an amazing growth opportunity, please reach out to Chrisman LLC’s Anjelica Nixt to forward your confidential inquiry.

Incenter Lender Services announced the promotion of Shelley Duffy to EVP, National Sales, “Responsible for all aspects of Incenter’s expanding Enterprise Business Development team as the company innovates new solutions to strengthen clients’ competitive advantage.” Congratulations! “Ms. Duffy’s priority is empowering her team to match prospects and clients with the right outsourced or technology-based services depending on their needs.”

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Figure Technology Solutions, the parent company of Figure Lending LLC, has launched a blockchain-based marketplace to connect buyers and sellers of private credit loans, promising to reduce settlement timelines and create greater pricing certainty. 

The launch, announced on Wednesday, comes less than two months after Figure named tech veteran Michael Tannenbaum — who led fintech company Brex for seven years — as its new CEO. Tannenbaum replaced founder Mike Cagney, who continues to serve as executive chairman. 

The new platform, Figure Connect, allows originators to “receive forward commitments from buyers, lock active bids, control loan pricing to balance profitability and volume, and deliver pools of loans into those commitments,” the company explained in a news release. It’s integrated into Figure’s loan ecosystem and is available to all participants.

Based on Provenance Blockchain, the platform offers common and standardized key characteristics of loan pools and sale terms, reducing the typical settlement process from months to days, Figure stated. 

Tannenbaum said the platform creates “the first highly liquid private capital marketplace for loans” and offers “unique certainty of funding” to originators and “standardization to loan buyers.”

Initial partners include The Loan Store, Movement Mortgage, Bayview Asset Management and Saluda Grade.

In early April, Figure announced the rollout of its Digital Asset Registration Technologies (DART) platform, which was made available to private and wholesale lending partners. DART is a mortgage processing product designed to offer the industry an alternative to offerings from Mortgage Electronic Registration Systems (MERS). 

In March, the company took a step toward becoming public by submitting a draft registration statement with the U.S. Securities and Exchange Commission (SEC) regarding a proposed initial public offering of its equity securities.

Source: housingwire.com