TPO Archives - Page 6 of 13 - Hanover Mortgages

Apache is functioning normally

January 6, 2024 by Brett Tams

Verification, Lien Release Products; Relying on Interest Rate Predictions? STRATMOR Outlook

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Verification, Lien Release Products; Relying on Interest Rate Predictions? STRATMOR Outlook

By:
Rob Chrisman

Thu, Jan 4 2024, 11:00 AM

“My dad always said to me, ‘Work until your bank account looks like a phone number’ so I did. Account balance: $9.11.” You can work harder, or you can work smarter. (I have severe doubts about the validity of this clip; it gave me the willies watching it.) Swimming is certainly a competitive sport. Do you have competitors? Most businesses do. Which is a reason that hotels offer free ice, thanks to a hotel chain that began in Memphis, TN. If the Mortgage Bankers Association is right, and volume does pick up some in 2024, that doesn’t mean the competition to do that business is going to go away. Numbers game. 5 calls, 25 a week, one closed loan $4k, two loans $8k. At these rates, less competition. If rates come down, competition for inventory just increases. (Today’s podcast can be found here, and this week’s is sponsored by the STRATMOR Group, the data-driven mortgage advisory. At STRATMOR, insights and knowledge are applied to guide mortgage clients to make sound strategic decisions and take actions that improve their success. Hear an interview with the STRATMOR Group’s Garth Graham on if industry forecasts for a better market should lead to industry optimism.)

Broker and Lender Programs and Software

Servicers know how much work it takes to release a lien once a mortgage has been paid off. That’s why they’re turning to the new Automated Lien ReleaseSM (ALR) capability in the ICE MSP® servicing system to help lighten the load at the end of a loan. ALR combines document creation and automated workflows to streamline the lien release process. It helps with eSigning and eRecording where available (and prints the release package for wet sign where it’s not) to help servicers cut through the delays and release liens faster. Read the press release to see how you can start releasing fully paid liens in days instead of weeks.

Truv is now an approved third-party service provider supporting Freddie Mac Loan Product Advisor® asset and income modeler (AIM) Revolution Mortgage estimates that they can save up to $20,000 in cost on verifications with TRUV over competitors. “Let’s talk about our documentation costs and those giant monopolies that are out there and laughing at customers and increasing prices because they have a particular monopoly. You want to lower your manufacturing costs” said Femi Ayi, EVP Operations. Contact TRUV today to discuss how we can help you with your income, employment, insurance, and asset verifications. Come join us!

Be Wary of Relying on Interest Rate Predictions

I am asked all the time, “Hey Rob, where do you think rates will be in six months?” My answer, after I say that I can’t even predict where I’m going to have lunch tomorrow, is always the same, “Higher, or lower, or possibly the same.” Or sure, one can have a prediction until a ship becomes stuck in the Suez Canal, a ship is attacked in the Red Sea, or a pandemic occurs. A recent STRATMOR blog is titled, “Interest Rates are Like the Weather? Or Like Signs of the Zodiac?”

The interest rate markets have a way of humbling almost all the ‘experts’ and the very first thing you learn in Secondary Marketing is that you shouldn’t take a view on where rates are headed because half the time, you’re wrong anyway. In Q4 of 2022 the arm-chair prognosticators were predicting that we’d see rates come down by the end of 2023. After reaching a peak in October, Treasury rates did come down to where they were at the beginning of 2023. But mortgage rates were well into the 7 percent range.

The Federal Reserve, in its attempts to control inflation and cool a very strong economy, raised fed funds several times in 2023. Throughout the year, however, we heard, inside the world of mortgage banking, opinions expressed that rates will not only come down, but when to expect this to happen. Based upon what data, one should ask, are their views speculative, biased, or just hopeful?

I would challenge these prognosticators as to the reasons why mortgage rates are positioned to fall. What leads them to predict that? I’m sure some opinions are based on fundamentals: Fed raises rates to control inflation, money is taken out of the economy, the economy cools, Fed cuts rates, and mortgages come down to some predicted level. A lot of the predictions I see are not rooted in actuality, but rather rooted in exuberance for mortgage banking.

In the summer of 2023, little of the macro data even hinted at a reduction of short-term interest rates. Inflation, which has been grinding lower, was a tad north of 4 percent with the Federal Reserve’s target set at 2 percent. Economists have modeled that unemployment would need to reach as high as 7 percent in order for inflation to come down to 2 percent… Not a pretty picture. Remember, when an economy ‘slows’ jobs are not created, historically they’re lost.

The Fed was relatively “hawkish” in its monetary policy for the remainder of 2023 until the end. Anyone predicting where interest rates will be in the future would need to start by predicting where the Federal Funds rate NEEDS to be in order to see inflation that’s appealing to the Fed, and then ultimately, HOW LONG rates needs to remain there; when is it warranted to reduce borrowing rates under recessionary fears? These are two almost impossible questions to answer since the number of variables that you need to get right, coupled with unpredictable world events, play such a strong role in forecasting interest rates.

A year from now, rates will either be higher, lower or the same. So, focus on your products and services!

Capital Markets

Ever wondered how to hedge a mortgage pipeline? Hedging one’s mortgage pipeline typically produces the greatest return over long-term macroeconomic cycles, which is why it is considered an essential step in the growth of a mortgage lender. In MCT’s whitepaper, Mortgage Pipeline Hedging 101, their experts explain what hedging is and why it is a valuable strategy for maximizing profitability in the secondary market. The whitepaper also reviews information on moving to mandatory loan sales, the strategy of hedging, the benefits of hedging, and how to determine if you are ready. Download the whitepaper or join MCT’s newsletter for upcoming releases.

Turning to interest rates, what’s that you say? Markets have gotten ahead of the Fed again? Gasp! Yes, markets aren’t looking all that cheerful in the new year. I don’t put much opinion in here, but I’d say it’s because of investors’ own doing. The added potential for interest rates to stay high for some time is forcing investors to continue to unwind optimistic trades placed in late 2023. The Federal Reserve’s policy makers poured water on predictions of early 2024 interest rate cuts, revealed the minutes from the most recent Federal Open Market Committee meeting, with several voting members seeing the potential for the fed funds rate range to stay at a peak level for longer than the market expects.

Policymakers did acknowledge that we are probably at the peak of rates and that projections show cuts by year-end. Richmond Fed President Barkin cautioned that the potential for more rate hikes remains alive, called a soft landing “increasingly conceivable but in no way inevitable,” and added that any decision on a March cut is a “long way away.” Staff projections point to rate cuts by the end of 2024, but officials do not seem to be supportive of a series of cuts at this time.

The minutes from the Federal Open Market Committee meeting hinted at hard landing concerns amongst board members while recognizing that they could “face a tradeoff between its dual-mandate goals in the period ahead.” Fortunately, there were more indications of optimism about inflation, which is supported by the latest jobs data showing cooling.

U.S. job openings fell in November to 8.79 million in November, the lowest level since early 2021 as fewer workers voluntarily quit and the number of hires fell. People who voluntarily left their jobs as a share of total employment fell to the lowest point since September 2020, signifying that Americans are feeling less confident in their ability to find new jobs or better paying jobs in the current market.

Separately, we also learned yesterday that the December ISM Manufacturing PMI indicated an ongoing contraction in the manufacturing sector, but at a slower pace than the previous month. December marked the 14th straight month the PMI reading has been in contractionary territory. The report was not devoid of good market news, as the Prices Index reflected a further easing of inflation pressures.

Today’s calendar sees some early labor market indicators ahead of tomorrow’s payrolls report. Markets have already received December job cuts from Challenger, Gray & Christmas (34,817 cuts in December, down 24 percent from the 45,510 cuts announced in November) as well as ADP employment for November (164k, higher than expected), and initial (202k, down from 218k) and continued (1.855 million) jobless claims. Later today brings the final December S&P Global services PMI, Treasury announcing the details of next week’s mini-Refunding (consisting of $52 billion 3-year notes, $37 billion reopened 10-year notes, and $21 billion 30-year bonds), and Freddie Mac’s Primary Mortgage Market Survey. We begin the day with Agency MBS prices worse .125-.250, the 10-year yielding 3.98 after closing yesterday at 3.91 percent, and the 2-year at 4.36 after a spate of employment data.

Employment

It’s a new year and Merchants Bank, is off and running, continuing to leverage its diversified business model to grow market share and assist Merchant’s lending partners. Merchants Bank’s Correspondent channel, offering Non-Delegated and Delegated options, recently hired Liberty Tribe as Sales Executive to help grow TX and the Mid South Region. Liberty along with Dan Hastings, CMB, AMP cover the Mid-South (TX, LA, AR, MO, OK, KS). In addition, Merchants is expanding its Financial Institutions channel by adding a Mini-Correspondent offering to their TPO Wholesale platform. If you are interested in learning more, contact Rob Wilson. On the Retail front, Merchants Bank continues to grow there as well and if you are looking for stability, support and products, they want to hear from you. Contact Ron Berry for more information. Their LO centric platform along with the strength and balance sheet of the bank allows them to expand market share in their regional markets.

Planet Home Lending’s new Vice President, Construction Sales Melony Harpe is paving the way for Planet MLOs to increase their construction loan volume in 2024. Interested in building your construction business? Join Planet and you’ll have support for calls with builders, resolving construction issues, and educating stakeholders. “I want MLOs and retail branches to feel confident and supported in their construction lending efforts,” Harpe said. “My role is to give MLOs the tools and resources needed to navigate the complexities of construction lending and expand their connections with builders.” To lay the foundation for a better 2024, contact VP of Talent Peter Briggs or 949-202-8213; all inquiries will be held in strict confidence.

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

Source: mortgagenewsdaily.com

Apache is functioning normally

December 28, 2023 by Brett Tams

CAAS, TPO, Tech, LOS Products; Fitch on First American’s Hack; Freddie and Fannie Forecasts

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CAAS, TPO, Tech, LOS Products; Fitch on First American’s Hack; Freddie and Fannie Forecasts

By:
Rob Chrisman

Wed, Dec 27 2023, 10:54 AM

Susan Toste writes to Ira Selwin who sends me (see how these things work?), “Can you believe it is 364 days until Christmas and people already have their lights up?” Goldman Sachs asks interviewees, “How many square feet of pizza are eaten in the U.S. each year?” (The trick is to work through the logic, not necessarily come up with the right answer.) Learning math is something that everyone does, to one degree or another, and doesn’t typically go onto a resume. (I learned math a whole different way than they do now in China or Japan.) What’s on your resume? How about Scapulothoracic Hypermobility? The Financial Times reports that “Banks (worldwide) shed 60,000 jobs in one of worst years for cuts since financial crisis.” I regularly receive questions about the number of LOs who have left our business. “Plenty” doesn’t ever satisfy the person asking the question, but I don’t know the exact number. Many LOs gradually scale back the number of states in which they’re licensed but continue originating: how do you count them? But a decent source is the NMLS site: knock yourself out. Anyone searching for a new company home can post their resume for free at www.lendernews.com where employers can view them for a nominal charge of $75. Today’s podcast can be found here, and this week’s is sponsored by Gallus Insights. Mortgage KPIs, automated at your fingertips. Gallus allows you to go from data to actionable insights. If you can use Google, you can use Gallus. Hear an interview with Gallus Insights’ Augie Del Rio on how lenders are benchmarking and leveraging data to make more informed analytical decisions.

Broker and Lender Programs, Software, and Products

Amazon was able to fulfill the one billion purchases made during its cyber deals event thanks to automated decision systems developed by its Supply Chain Optimization Technologies team. Much like Amazon, Dark Matter Technologies’ Empower LOS uses process automation to drive down costs and make loan production faster and more efficient. With solutions for retail, wholesale and correspondent lenders, Empower’s all-in-one functionality provides users with lights-out automation, unrivaled efficiency and exceptional borrower and user experiences in a new era of mortgage lending. Explore how Empower can transform your business.

“Did you know yesterday was National Thank You Note Day? At Optimal Blue, we couldn’t think of a better opportunity to express our sincere gratitude for our clients and partners across the industry. This includes 3,500+ originators, 1,200 lender companies (including 64 percent of the top 500 lenders), 2,400 broker companies, 260 investors, and 70+ industry vendors. While we didn’t drop handwritten cards in the mail, we are packaging up plenty of product innovations to send to you in 2024. In fact, we plan to bring you even more innovation in the coming year. And as a company that already averages 300+ product enhancement releases annually, this is not a commitment we make lightly. On behalf of the entire Optimal Blue team, we wish you a happy New Year. We can’t wait to tackle the year ahead as your trusted partner.”

“AFR Wholesale® is excited to present a unique opportunity that benefits you and your clients: the Jingle Bell Float Down. From now until 12/29/2023, lock your loans with us and enjoy the security of our special offer. With the Jingle Bell Float Down, you can lock your loan for up to 30 days. When the loan goes for final review, we’ll adjust to the current day’s rate, ensuring you get the best deal without falling below your locked price. This offer applies to all AFR’s loan programs and is available through the Correspondent Non-Delegated, Correspondent Table Funded, and Brokered Channels. *Please note, some exclusions do apply. Ready to lock in your loans? Visit the AFR Loan Center now! To learn more about this exciting opportunity, connect with AFR: visit here, email us, or call: 1-800-375-6071. Don’t miss out on this special offer: Contact AFR today!”

Tired of high fixed costs and low retail volume? Thinking of adding a correspondent channel but not sure how to do it efficiently? Blue Water (“Blue Water Financial Technologies Services, LLC”) has a comprehensive Correspondent-as-a-Service (CAAS) solution that allows firms of any size to quickly go from 0-60… fast. NonQM, Seconds, Whole Loans and/or regular way agency loans and MSRs are ALL supported. Ingest multi-seller tapes, price different product types, access agency pricing + LLPAs and price them quickly and automatically! Manage AOT, manage investors, optimize for pools, and analyze commitments all within the same system. We’ll help you integrate with your LOS for point and click onboarding, and with integrated transfer and exceptions remediation tools operations have never been easier or more reliable. From pricing, valuations, transactions, transfer, QC, to boarding, Blue Water makes it easy to scale up your origination business. Connect with our expert Sales Team.

First American: Fitch Weighs In

As reported last week in this Commentary and continuing yesterday, on Dec. 22, FAF announced via an 8K SEC filing that on Dec. 20 it had experienced a cybersecurity incident and decided to isolate certain systems. The company is actively working to restore operations and has retained outside third parties and notified law enforcement and regulatory authorities.

Last week’s cyber incident is supposedly unrelated to the May 2019 cyber incident where FAF reached a $1 million settlement with the New York Department of Financial Services in late November 2023. Four years!? Title insurance companies routinely work with sensitive personal information including bank records, and therefore data protection is critical to their operational success. The same, of course, can be said for mortgage banks, credit unions, and banks.

Gerry Glombicki, CPA, CISSP, CCSP, CISA, ARM, and a Senior Director at Fitch Ratings, writes, “First American Financial Corporation’s (FAF) recently disclosed cybersecurity incident is unlikely to affect the company’s ratings in the near term due to the significant headroom in the ratings, according to Fitch Ratings. However, the ratings could be impacted the longer business operations remain constrained, if the investigation shows weak corporate governance or risk management, or material adverse information is disclosed.

“Fitch does not believe that the recent cyber incident will materially affect FAF’s capital position or financial performance because the company is the second largest U.S. residential title insurer and a leader in the commercial title market. However, future rating actions cannot be completely ruled out until the incident is resolved and all relevant information is disclosed.

“Fitch affirmed the ratings of FAF’s senior debt ratings at ‘BBB’ and the company’s title insurance operating subsidiaries Insurer Financial Strength (IFS) ratings at ‘A’, all with a Stable Rating Outlook, on Aug. 24, 2023.”

Fannie and Freddie’s Thoughts on 2024

Many will say that economic forecasting is like driving a car blindfolded and getting instruction from a person looking out the rear window. But that doesn’t stop people and companies from taking periodic stabs at it.

If you’re hoping that lower borrowing costs will boost activity, Fannie Mae’s right there with you. But home sales will only marginally rise higher. Mortgage rates will average 6.7 percent next year, close to levels seen this summer. The housing market will see some upside in the coming years, but persistent challenges will limit a bigger shift, according to Fannie Mae’s latest forecast. “Total home sales in 2024 will come in at about 4.8 million, largely flat compared to this year’s expected level, followed by a jump to 5.4 million in 2025.

“The drivers of slow sales are well known at this point: unaffordability, lock-in effects, and a lack of existing inventories freezing much of the housing market. While we believe these dynamics will slowly dissipate over time, they will remain obstacles in 2024. Still, existing home sales will undergo a slow recovery starting next year, after they hit a likely low point in October, at a seasonally adjusted annualized rate of 3.79 million. Meanwhile, sales of new homes have also continued benefiting from the housing shortage, as well as builders’ willingness to provide mortgage buydowns.

“This trend continues into our 2024 forecast, in which we expect new home sales to decline from current levels only slightly due to a modest economic contraction,” according to the report.

While the shift in monetary policy has spurred a sharp drop mortgage rates this quarter, Fannie Mae noted a limit to how far these rates will fall: it projects that the 30-year fixed rate will average 6.7 percent in 2024, before falling to 6.2 percent in 2025. That’s down from the current level of just below 7 percent, after they soared close to 8 percent earlier this year.”

Fannie’s somewhat friendly competitor also sent out its outlook. If you don’t want to take the time to click on the link: economic growth lower than 2023, unemployment higher (stop me if you’ve heard this before), mortgage rates are expected to be in the 6-7 percent range during the year, and Freddie thinks that home prices will rise more than 6 percent. For the tens of millions of Millennials who don’t own a home yet, for-sale inventory is expected to remain depressed, and Freddie sees a slight increase in dollar volume for purchase originations while refinancing is stagnant. Lastly, Freddie believes that the U.S. Federal Reserve will start cutting rates. All pretty safe bets.

According to the ICE First Look at November mortgage performance data report, mortgage delinquencies remained historically low in November, despite a seasonal rise. While default rates remain low overall, past-due FHA loans hit a 9-year high in November (excluding a surge at the start of the pandemic) and early-stage VA delinquencies reached their highest non-pandemic level since 2009; both segments bear close watching in the months ahead. Fewer serious delinquencies, combined with low foreclosure referral rates, contributed to Foreclosure starts and active foreclosures running 23 percent and 24 percent below 2019 levels, respectively. Prepayments fell again amid the usual seasonal pullback in home purchases, combined with the residual effects of elevated interest rates.

Capital Markets

As expected, this week began with a quiet start in the bond markets. There isn’t a whole lot to report, aside from the U.S. Treasury completing a solid $57 billion 2-year note sale in the early afternoon yesterday. Additionally, the FHFA Housing Price Index was up 0.3 percent month-over-month in October after increasing a revised 0.7 percent in September. The S&P Case-Shiller Home Price Index was up 4.9 percent year-over-year in October after increasing 3.9 percent in September.

Forecasts by “the smartest guys in the room” about a housing price collapse have proven to be entirely wrong. The S&P 10-city composite rose 5.7 percent, up from a 4.8 percent increase in the previous month, and as noted above the 20-city composite rose 4.9 percent. Sure, some over-inflated markets, like San Francisco, saw a small decline, but the strength in home prices came despite a sharp rise in mortgage interest rates in October. We all know that the average rate on the 30-year fixed loan crossed 8 percent before Halloween, the highest level in more than two decades. Rates, however, dropped steadily through November and more sharply in December, with the 30-year fixed rate now hovering around 6.7. That should help prices.

Much like yesterday, the domestic highlight of today’s calendar once again will be Treasury supply, headlined by $26 billion reopened 2-year FRNs and $58 billion 5-year notes. As for economic news, it consists of just Richmond Fed’s manufacturing and services indexes and Dallas Fed Texas services, both for December, and both due out later this morning. The MBA’s mortgage application survey won’t be published but will be back next Wednesday morning and will consist of two weeks’ worth of stats. We begin the day with Agency MBS prices a touch better/higher than Tuesday’s close and the 10-year yielding 3.86 after closing yesterday at 3.89 percent.

Employment for AEs

Logan Finance Bucks Mortgage Industry Trends with Strong Q4 Growth! As the year-end fast approaches, Logan Finance finds itself in a thriving environment sparking growth that has more than doubled over the last two years. “There’s a great need for Non-QM lending and we are positioned well to handle the influx of new business,” says Aaron Samples, Logan’s Chief Revenue Officer. TPO partners, if you missed the year-end pricing special announcement, see our LinkedIn profile at Logan Finance Corporation. Mortgage broker clients can get rate discounts of up to .375 on select loan products through the end of December, so bring your deals to Logan! Logan’s growth is also fueling several new hires including Wholesale and Correspondent industry veterans Nick Pabarcus and Dave Weatherford, who will focus on recruiting and growing our network. And speaking of hiring, Logan Finance is looking for Non-QM superstar AEs, so contact Aaron Samples for hiring information. Learn more about Logan’s growth at Loganwholesale.com and Logancorrespondent.com.

“Spring EQ’s TPO division continues to experience rapid growth as demand for home equity solutions accelerates. To meet this demand, Spring EQ is excited to announce a new second lien program designed for Correspondent partners. Eligible delegated and non-delegated sellers will now have the opportunity to take advantage of Spring EQ’s competitive suite of products, including fixed-rate second mortgages and adjustable-rate HELOCs. Explore Spring EQ job postings and come join our growing team of fun and experienced mortgage professionals! At Spring EQ our primary focus is second mortgages. So, think of us first for all your seconds. Want to become a Spring EQ Correspondent partner? Click here to get started.”

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

Source: mortgagenewsdaily.com

Apache is functioning normally

December 22, 2023 by Brett Tams

TPO, Anti-Valuation Bias Tools; Retail and Broker News; Interview on Home Equity Levels

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TPO, Anti-Valuation Bias Tools; Retail and Broker News; Interview on Home Equity Levels

By:
Rob Chrisman

Thu, Dec 21 2023, 10:43 AM

“What do you call a Christmas wreath made out of $100 bills? Aretha Franklins.” It’s cutting-edge humor like this that keeps readers coming back for more, right? Or astronomy tips, as today is the Winter Solstice, with the least amount of sunlight in the Northern Hemisphere and a little music to go along with it. “The winter is here again, oh Lord. Haven’t been home in a year or more.” (Look at that hair!) Lenders and vendors are hoping that the decline in rates keeps the “winter” away from lending, and holds more salary cuts, layoffs, and furloughs at bay. Mortgage banking is not alone in expanding automation and trying to save money. Do you think that you deserve a lower price for checking out of a store yourself and not using a paid clerk? Many do. The number of people who work as cashiers dropped from 1.4 million in 2019 to 1.2 million today, and over the next decade the BLS projects an additional 10 percent decline. (Today’s podcast can be found here, and this week’s is sponsored by Lender Toolkit’s AI-powered AI Underwriter and Prism borrower income automation tools. Get loans approved in under two minutes. By providing lightning-fast underwriting decisions, your market reputation with borrowers and Realtors will soar. Listen to an interview with Hometap’s Dan Burnett on record home equity levels and how Americans can best leverage them.)

Lender and Broker Products, Programs, and Services

“With increased regulatory focus on property-valuation bias, lenders need robust risk-management processes in place. The recently released interagency proposals on AVM-quality control and ROV-process guidance are designed to prevent valuation bias and help ensure industry stakeholders follow fair-lending practices. Watch our complimentary on-demand webinar to learn how you can prepare, and implement the tools needed to support the proposed changes.* Our experts discuss how to identify potential bias in valuations, ways to mitigate bias risk, how to monitor AVM and appraisal compliance with fair-lending requirements, and more. Watch this timely and important webinar here. *Check with your compliance or legal department for information on complying with applicable law.”

“As the year draws to a close, Planet Home Lending extends our heartfelt gratitude to our invaluable correspondent partners. Together, we’ve stood strong in the face of challenges in a demanding market. Thank you for being an integral part of our shared journey. As we look forward to 2024, we continue our commitment to being your go-to team, your reliable partner, your toolkit, and your product gateway. Here’s to a smooth finish for 2023 and a prosperous New Year.”

“Ready to make your borrowers’ dreams of homeownership a reality? Kind ‘s blended FICO (conventional representative score) loan options can help make it happen! With this option, your borrowers have a greater chance of final approval for a home loan based on their average combined score. Kind has the tools & resources to help you get the job done fast and easy! Using the Kwik Pricer in our broker platform, Kwikie – built with brokers in mind, you’ll be able to knock out deals hassle-free! Learn more by connecting with your Kind Account Executive. If you’re not yet a partner with us, join the #kindmovement today by submitting your broker inquiry.”

Disaster Updates and Other Industry News

On December 13, 2023, with DR-4751-TN, the Federal Emergency Management Agency (FEMA) declared that federal disaster aid with individual assistance has been made available to four Tennessee counties; Davidson, Dickson, Montgomery and Sumner to supplement recovery efforts in the areas affected by severe storms and tornadoes on December 9, 2023.

On 12/13/2023, with DR-4751, FEMA declared federal disaster aid with individual assistance has been made available to counties affected by severe storms and tornadoes on 12/9/2023. See AmeriHome Mortgage Disaster Announcement 20231205-CL for inspection requirements.

Hometown Equity Mortgage is offering G-PA 525 Fast closings 21-30 days, 5-25 units can be mixed use, Mixed use is viable with 70 percent residential, no prepay, I/O 12/24, Up to 75 percent LTV.

Create opportunities with ITIN borrowers in the new year. If you’re not sure how, reach out to the Champs of Non-QM. Champions Funding is steadfast in its mission to help you and your borrowers access loan products outside of traditional agency options. Don’t miss out on learning all the CDFI benefits too! Not yet partnered with the Champs? Sign up today!

loanDepot, Inc. a leading provider of home lending solutions that enable customers to achieve the dream of home ownership, unveiled its fully automated melloNow underwriting engine, changing the game for mortgage borrowers by delivering a fully conditional loan approval in minutes rather than hours or days. Utilizing a fully digital verification process, melloNow swiftly analyzes credit reports, detects fraud, and validates income and employment data at the point of sale, instantaneously generating unique borrower conditions. Now, with the melloNow digital underwriting engine, many loanDepot customers will enjoy a dramatically improved experience.

Newfi Wholesale announced its partnership with the popular technology solution, ARIVE to bring its full suite of Non-QM products to loan officers and brokers. With this partnership, ARIVE is now expanding its capabilities to include DSCR loans. This illustrates the industry-wide shift towards the growing Non-QM sector. Specializing in alternative lending products, Newfi has led the way with innovative solutions relevant for today’s markets. This strategic partnership will empower mortgage brokers with a one-stop shop mortgage experience to a wide array of niche loan programs. Newfi approved brokers will gain immediate access to Newfi’s diverse product lineup and competitive pricing in seamless technological experience, with deeper integrations in development and are set to be unveiled soon, further enriching our shared platform’s capabilities. Brokers interested in working with Newfi can sign up here.

Effective for FHA case number assignments on or after January 1, 2024, AmeriHome’s 2024 Loan Limit Pricing will be available. For additional information including updates on VA loan limits, see AmeriHome Mortgage announcement 20231207-CL for details.

For Mortgage Loans converted from interim construction financing to a permanent loan with a modification, the Loan Modification Agreement required to be included in the Collateral Package may be a certified copy with the original document treated as a Trailing Document. View AmeriHome Mortgage Product Announcement 20231206-CL for details.

VA announced an update to VA Lenders Handbook Chapter 4 Topic 7, Subsection b on Collection Accounts. See AmeriHome Mortgage announcement 20231204-CL for details.

Jet Mortgage is offering a new FHA DPA, 100 percent LTV FHA with New Improved Pricing. Jet 200 FHA DPA Highlights include 600 Min FICO, 1 Unit, Condo’s, Townhomes, Repayable & Forgivable Option, Max 2 percent BPC/LPC – Max 2 percent Discount Points. Must be DU Approve/Eligible, no Manual Underwrites allowed. Contact Jet Mortgage for more information.

VA has issued Circular 26-23-26 regarding the impact of 2024 Conforming Loan Limits on VA loans. Contact Kind Lending with questions about impacts to VA loans regarding changes to conforming loan limits for 2024

Capital Markets

Bonds enjoyed another winning session yesterday on the back of some market-friendly inflation data for November out of the United Kingdom, geopolitical angst tied to a potential military response to Houthi rebels disrupting shipping activity in the Red Sea, slowdown worries linked to disappointing forward revenue guidance from economic bellwether FedEx, and some safe-haven positioning before the extended Christmas weekend. The market largely overlooked some stronger-than-expected existing home sales activity in November, a nice pickup in consumer confidence in December, and a weak 20-year bond reopening auction.

In housing/real-estate news, Existing Home sales rose 0.8 percent month-over-month in November to a seasonally adjusted annual rate of 3.82 million, ending a five-month decline. Despite the rise, sales still sit 7.3 percent lower than a year ago largely due to mortgage rates spiking in September and October. Sales of existing homes continue to be hindered by high mortgage rates, high selling prices, and limited inventory. Inventory remains light, with only 3.5 months’ worth at the current pace. Fortunately, the recent drop in mortgage rates is expected to be a driver of stronger sales activity in December. The median home price rose 4 percent year-over-year to $387,600, while the first-time homebuyer share rose to 31 percent from 28 percent from the month prior.

As previously mentioned, this week contains a lot of housing data. After learning Tuesday of a substantial pick-up in residential activity recently, it would appear that home builders are becoming more optimistic as mortgage rates trend lower and economic growth remains resilient. Speaking of optimism, we also learned yesterday that the Conference Board’s Consumer Confidence Index increased in December as there was renewed optimism across all ages and household income levels with attention being paid to improved inflation trends, business conditions, and job availability. Consumer confidence is highly influenced by gasoline prices, which have been falling.

There will be little data of importance on the economic front until we get into the new year, though we do have a busy economic calendar today that is underway with the third look at Q3 GDP (4.9 percent, revised slightly downward). We’ve also received weekly jobless claims (205k, up from 202k) and Philadelphia Fed manufacturing (-10.5, much lower than expected). The core PCE deflator was expected to be unchanged at 2.3 percent. Later today brings leading indicators for November, KC Fed manufacturing for December, Treasury announcing next week’s laundry list of supply including 2-, 5- and 7-year notes before auctioning $20 billion reopened 5-year TIPS, and Freddie Mac’s Primary Mortgage Market Survey with the prior week’s 30-year mortgage rate slipping eight basis points to 6.95 percent. We begin the day with Agency MBS prices unchanged from Wednesday night, the 10-year yielding 3.87 after closing yesterday at 3.88 percent, and the 2-year at 4.36. With yesterday’s gains, the 10-year note yield returned to unchanged for 2023 after hitting 5.02 percent intraday in the middle of October.

Employment

“Logan Finance bucks mortgage industry trends with strong Q4 growth! As the year-end fast approaches, Logan Finance finds itself in a thriving environment sparking growth that has more than doubled over the last two years. “There’s a great need for Non-QM lending and we are positioned well to handle the influx of new business,” says Aaron Samples, Logan’s Chief Revenue Officer. TPO partners, if you missed the year-end pricing special announcement, see our LinkedIn profile at Logan Finance Corporation. Mortgage broker clients can get rate discounts of up to .375 on select loan products through the end of December, so bring your deals to Logan! Logan’s growth is also fueling several new hires including Wholesale and Correspondent industry veterans Nick Pabarcus and Dave Weatherford, who will focus on recruiting and growing our network. And speaking of hiring, we’re looking for Non-QM superstar AE’s, so contact Aaron Samples for hiring information. Learn more about Logan’s growth at Loganwholesale.com and Logancorrespondent.com.”

Happy Holidays from PrimeLending! Looking back at 2023, are you wrapping up the year feeling more confident of where your career is headed than when you started? Did you receive the coaching and support needed to strengthen critical skills, harness cutting-edge tools, and propel yourself to new heights? As you gear up for 2024, why settle for treading water? Take charge and position yourself to thrive at PrimeLending. Our LOs are transforming their professional journeys through One More, our exclusive peer-to-peer coaching program. Designed to empower producers to excel in today’s volatile market, One More offers a dynamic, fast-paced, and results-oriented small group support system where LOs can connect, collaborate, and ultimately surpass their goals. We’d love to talk with you about how we can help you flourish more too. Contact Nic Hartke for more information.

A Greater Town has built a robust real estate portal into its national hyperlocal marketing site and is looking for one mortgage lender (or a few select mortgage lenders) to “own” it, similar to having your own Zillow or Rocket Homes. About 600 MLS associations are represented with over 1,100,000 listings & 750,000 real estate agents & brokers. A comprehensive directory of every mortgage lender & MLO in the country is in construction as well. It’s the ideal environment for a national lender to set up shop. Examples include Editors Picks, Sally Forster Jones, Founder & CEO of the Sally Forster Jones Group at Compass, and Jerry & Lisa String, Listing & Buyer Agents at Realty ONE Group DocksideSouth. For further information, please contact Drew Knapp, CEO of A Greater Town, (973-477-7154).

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

Source: mortgagenewsdaily.com

Apache is functioning normally

December 10, 2023 by Brett Tams

Bulk Sales, Best-Ex, Accounting Outsourcing, Verification Tools; FHA and Ginnie News; STRATMOR Tech Survey

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Bulk Sales, Best-Ex, Accounting Outsourcing, Verification Tools; FHA and Ginnie News; STRATMOR Tech Survey

By:
Rob Chrisman

Thu, Dec 7 2023, 10:58 AM

Time flies (see joke at bottom), and here we are at Pearl Harbor Day already. “I’m a multitasker. I can listen, ignore, and forget all at the same time!” Occasionally someone will accuse me of having a sense of humor. If true, it can be traced back to my parents, but a portion of it came from watching Norman Lear’s shows like All in the Family, Sanford and Son, Maude, The Jeffersons, and movies like The Princess Bride (“as you wish”). Mr. Lear died yesterday, but his impact will be long felt. Audiences loved his shows. Does your customer love you, no matter the price? That’s the case with Coke. The average price of a 12-ounce can of Diet Coke in a package of 12 was 34 cents in 2018 but hit 56 cents per can in October 2023, a 65 percent increase. In general, Diet or regular, prices have shot up: The average price of a Diet Coke at a restaurant hopped up from $2.05 to $2.77. Inflation at many levels is impacting rates, including Treasury and mortgage-backed securities: STRATMOR’s current blog is titled, “How Treasury Auctions Influence Mortgage Rates”. (Today’s podcast can be found here, and this week’s is sponsored 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. Hear an interview with United One’s Sean Higgins on the vendor status of full-service mortgage, credit reporting, fraud solutions, appraisals, title insurance, and loan closing support.)

Lender and Broker Products, and Services

Revolution Mortgage estimates that they can save up to $20,000 in cost on verifications with TRUV over competitors. Femi Ayi, EVP Operations shares how he estimates he is saving 80 percent on his verification costs with Truv in this recorded event. Let’s talk about our documentation costs and those giant monopolies that are out there laughing at customers and increasing prices because they have a particular monopoly. You want to lower your manufacturing costs. Contact TRUV today to discuss how we can help you with your income, employment, insurance, and asset verifications.

“Are you struggling with declining production volumes and increasing costs per loan? Look no further. Outsourcing accounting is the elegant answer to this common challenge faced by independent mortgage banks. Whether you lack accounting expertise in-house or have a new team with no mortgage experience, the Richey May Client Accounting and Advisory Services (CAAS) team is here to provide the support you need. Our team consists of industry experts who can customize a solution to meet your specific needs in this volatile time, without requiring any additional training. Whether you need help transitioning to loan level accounting, a fully outsourced function, or industry training for your controller, we’ve got you covered. Contact Richey May today!”

Missed the chance to meet with Planet at IMN’s SFR Forum West? Connect with Planet’s commercial team to explore how our expertise enhances Single-Family Rental investments. Managing $100B+ in assets, we offer top-tier service, savings-focused strategies, and complimentary access to proprietary tools. Unlock the full potential of your investments: schedule your meeting now or call (585) 512-1030. Discover the Planet difference today!

Chief Sales Officer at Deephaven Tom Davis will join Rob Chrisman on a webinar you won’t want to miss. In today’s market, originators need Non-QM to fully serve borrowers and to stay competitive. Learning how to utilize and market Non-QM isn’t difficult when you partner with the right lender. Please find out how easy it is by attending the webinar on December 12th! Register now.

Nobody wants to be sold, they want to be served. Serve every homeowner in your database and get busy investing in relationships. Eric Spottswood, Regional Market Manager at Prosperity Home Mortgage did. Here’s what he had to say: “Recognizing that staying top of mind is crucial for securing repeat business, Milestones provides an excellent opportunity to consistently engage with our clients and reinforce those valuable connections with a one-stop home management platform. The bonus of having my team and our partners prominently featured in the portals is the icing on the cake. It’s not just a product I endorse – I actively use my own hub, and I’m thoroughly impressed with it! Milestones delivers the client engagement tools you need to retain every client you have. Book a demo today.

STRAMOR Tech Survey

Lenders, there’s still time to participate in the Digital Innovations Survey of STRATMOR Group’s Technology Insight® Study. Whether you are well on your way with your digital plans or are thinking through what to do in 2024, you’ll want the data that is only available from this study. This survey takes less than 10 minutes and participating lenders receive the survey report for free. Don’t miss your chance to have data on the key digital capabilities and the benefits and barriers to the digital technology available in the mortgage market today: take the Digital Innovations Survey now!

FHA and Ginnie Mae News

FHA announced new loan limits for calendar year 2024 its Single Family Title II forward and Home Equity Conversion Mortgage (HECM) insurance programs. FHA published Mortgagee Letter 2023-21, 2024 Nationwide Forward Mortgage Limits, which provides the maximum mortgage limits for FHA-insured Title II forward mortgages. These new loan limits are effective for case numbers assigned on or after January 1, 2024. Mortgagees may view the list of areas at the “ceiling” and areas with limits between the “floor” and “ceiling” along with lists that can be sorted by state, county, or Metropolitan Statistical Area (MSA) or by calendar year on the Maximum Mortgage Limits web page.

Mortgagee Letter 2023-22, 2024 Nationwide Home Equity Conversion Mortgage (HECM) Limits, which provides the Calendar Year (CY) 2024 maximum claim amount for FHA-insured traditional HECM, HECM for purchase, and HECM-to-HECM refinances. The maximum claim amount for FHA-insured HECMs for all areas, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands, in CY 2024 will be $1,149,825; 150 percent of the Federal Home Loan Mortgage Corporation’s (Freddie Mac) national conforming limit of $766,550. This new maximum claim amount applies to case numbers assigned on or after January 1, 2024.

FHA published Mortgage Letter (ML) 2023-23, Updates to the Home Equity Conversion Mortgage Program. This ML updates and streamlines Home Equity Conversion Mortgage (HECM) servicing policy to enhance the program’s financial stability and improve overall performance. These changes reinforce FHA’s commitment to serving seniors choosing to age in place in their own homes through the HECM program. Loan officers and down payment assistance program providers can visit the DPA One website for more information and to request a demo.

In Multiclass Participants Memorandum (MPM) 23-03, Ginnie Mae announced an optional early closing date for multiclass transactions beginning in December 2023. This option will allow sponsors to close transactions either on the Closing Date specified on the Ginnie Mae REMIC monthly calendar available on Ginnie Mae’s website or on the Business Day immediately preceding such specified Closing Date (an “early Closing Date”). Those sponsors choosing an early Closing Date must notify Ginnie Mae no later than the Final Structure Date and be aware that document delivery requirements outlined in the Ginnie Mae Multiclass Securities Guide (the “Guide”) will apply equally to the early Closing Date. All other transaction dates on the REMIC calendar will remain the same, regardless of the type of Closing Date chosen. For information on capitalized terms used herein, but not defined, refer to the Guide currently in effect, found on the Ginnie Mae website.

In All Participants Memorandum (APM) 23-13, Ginnie Mae announced revisions to its definition of High Balance Loans. These revisions align with the increased conforming loan limits recently announced by the Federal Housing Finance Agency (FHFA).

PRMG TPO Resource Center Updates 23-12 includes updates to Training/Instructional Material, VA Forms, Appraisal Forms, Second Mortgage Product Forms and Information, Non-QM Product Forms and Information, Updates on Bond/Housing Authority/DPA Products, Compliance and Quality Control Information.

Capital Markets

In any market scenario, it is crucial for lenders to analyze the best execution options to maximize profitability when selling loans in the secondary market. Determining what execution is most efficient and profitable will have a big impact on the bottom line. In MCT’s latest whitepaper, Optimizing your Best Execution Loan Sale Analysis, they provide insight into determining your company strategy, delivery options, retain release decisions, and more. Download the whitepaper or join MCT’s newsletter to stay up to date on the latest educational content.

MAXEX is now offering daily mandatory bids on bulk pools of Agency-eligible NOO and second home loans. Like our industry leading MAXEX Conforming flow program, get competitive pricing from five leading institutional buyers and avoid costly Agency LLPAs, all through a single contract and a single, standardized clearinghouse. MAXEX buys to agency guidelines via your existing bulk trading process. Visit here to learn more.

Taking a look at rates, which have improved, as the debate rages over when next year the U.S. Federal Reserve will begin cutting rates we learned yesterday that American employers unexpectedly cut back hiring in November, according to data from ADP. It’s yet another sign of the labor market softening, but don’t read too much into it before tomorrow’s payrolls number, history shows it’s a very bad guide. Despite pullbacks in hiring and spending, the service sector expanded at a faster pace last month on improved business activity.

Challenger, Gray & Christmas, Inc. tells us that U.S.-based employers announced 45,510 cuts in November, a 24 percent increase from the 36,836 cuts announced one month prior but 41 percent lower than the 76,835 cuts announced in the same month in 2022 and marks the first time cuts were lower than the corresponding month a year ago since July. So far this year, companies have announced plans to cut 687k jobs, a 115 percent increase from the 320k cuts announced in the same period last year. The job market is loosening, and employers are not as quick to hire. The labor market appears to be stabilizing with a more normal “churn.”

Today’s economic calendar also includes weekly jobless claims (220k; continuing claims 1.86 million), and wholesale inventories and sales for October. The U.S. Treasury will then announce the details of next week’s mini-Refunding package, estimated to be consisting of $50 billion 3-years, $37 billion reopened 10-years, and $21 billion reopened 30-years. And Freddie Mac will release its Primary Mortgage Market Survey. We begin the day with Agency MBS prices worse than Wednesday night by .125-.250 and the 10-year yielding 4.17 after closing yesterday at 4.12 percent; the 2-year is at 4.61.

Employment

Did you know that Houston, TX is the top area for TSAHC down payment assistance loans? Also, did you know that Mortgage Financial Services TPO (MFStpo) is the only wholesaler both TSAHC and TDHCA down payment and closing cost assistance programs to the mortgage broker community. MFStpo pioneered TSAHC for brokers and until recently, TDHCA was only available to retail LO’s. Brokers are growing with MFStpo by serving more families and referral partners and adding LO’s by recruiting with these programs. MFStpo is actively seeking to enhance support for brokers in the Houston market by hiring an experienced Account Executive. By making TSAHC and TDHCA DPA easy for brokers, MFStpo presents a compelling opportunity for AEs today. Notably, MFStpo also excels in non-DPA loans with great rates and a strong support team. Reach out to EVP John Hudson at 817.247.4766 for more info on this exciting opportunity in Houston!

“PrimeLending LOs have an exciting new mortgage solution to offer their customers looking to save money, increase home value and protect the planet: Green Home Loans from PrimeLending. It’s clear that energy efficiency is not just a trend; it’s a priority for the modern homeowner. According to a 2023 study by Thumbtack, 71 percent of homeowners consider sustainability a top priority, yet only one-third can afford the upgrades. Green Home Loans from PrimeLending is here to bridge the gap by helping borrowers finance green improvements immediately. With more than 400 mortgage solutions in our arsenal, including eco-friendly programs, we’re committed to helping our LOs not only beat the competition, but lead the way in offering the latest mortgage alternatives. If you’re looking for a sustainable career, your future may be at PrimeLending. Contact Nic Hartke for more information.”

“If you ask 50 people for their outlook on the Mortgage and Housing market in 2024, you’ll get 50 different responses (and we can attest to that!). Regardless of market conditions, our team at Pezian Search Group wants to make sure that YOUR organization is properly prepared for what’s next. Since 2010, we’ve spent much of December consulting and partnering with new and existing clients to discuss their outlook, upcoming needs, and to strategize ways to ensure ongoing success. We also take the time to uncover our candidates career goals and prepare them for growth, and we’d love to do the same for you. Reach out to us directly and let us show you how we can be a value add for your organization and in your career search. You can also connect with us on LinkedIn, and view all of our current openings here.”

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

Source: mortgagenewsdaily.com

Apache is functioning normally

December 8, 2023 by Brett Tams

LO Technology, Broker PPE Products; Training and Webinars This Week; 3.7% Unemployment

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LO Technology, Broker PPE Products; Training and Webinars This Week; 3.7% Unemployment

By:
Rob Chrisman

7 Hours, 19 Min ago

“What do you call James Bond having a bath? Bubble 07.” In different bond matters, mortgage rates will always be higher than Treasury rates, in part because of the prepayment risk in mortgages that doesn’t exist with Treasury bonds. With the drop in rates, sales management personnel at lenders are busy figuring out how best to remind the staff about EPO (early payoff) penalties levied by investors while at the same time working on ways to save money besides furloughing, cutting staff, outsourcing, and re-doing vendor contracts. The recent decline in rates and increase in applications is welcome: According to Curinos, November 2023 funded mortgage volume decreased 11 percent YoY and 10 percent MoM. In the Retail channel, funded volume was down 22 percent YoY and 10% MoM. The average 30-year conforming retail funded rate in November was 7.45 percent, 25bps higher than October and 85bps higher than the same month last year. (Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures, and drills into this data further here.) Today’s podcast can be found here, and this week’s is sponsored 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. Hear an Interview with nCino’s Ben Miller on incentive compensation data and origination cost reductions that are separating profitable from unprofitable companies in the mortgage industry.

Lender and Broker Products, Programs, and Services

Loan Vision exclusively serves the mortgage industry by providing software built by the mortgage industry for the mortgage industry. With Loan Vision, customers see improvements of 30%+ decrease in days to close the books, 20%+ reduction in accounting headcount, complete LOS to G/L automation, and improved reporting and visibility. Interested in learning how Loan Vision can help you run a more efficient and profitable company? Contact Carl Wooloff to schedule a call today.

When Encompass Lending Group set out to reimagine its borrower experience, it chose LiteSpeed by LenderLogix. “We understand every borrower is different. Our services are custom-tailored to every borrower, and we thought our technology should reflect that,” said Encompass Lending Group’s Paul Marsh, EVP of National Sales. Read more about their implementation here.

Seems like there is “AI” everything now. Washing machines, clothing, cookie dough? One place you should deploy AI is in helping your customers find their best opportunity. LoanCraft now offers its ViLO technology via an API (patent pending). ViLO is a virtual loan officer technology that asks your customers questions about their goals and needs, and provides offers along with tailored English-language recommendations. The API lets you easily incorporate this into your consumer facing technology, or LoanCraft will build your front end for you. Regents Financial is using ViLO, so you can see how it works here. Contact Jessica West at LoanCraft for more information.

In this market, hustle is everything. You can’t afford to waste a single deal, or a single minute. That’s why ReadyPrice has launched Shop, Lock, Deliver, an innovative platform designed to help independent mortgage brokers and their lenders save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders, all on a single platform, at no cost to brokers. It’s already helping brokers around the country thrive and compete in the toughest market. Multiple lenders. One platform. Zero b.s. Come check us out today. ReadyPrice gives you the ability to manage your lenders, search loan product pricing across the wholesale channel, and deliver loans to the lender of your choice.

Events, Training, and Webinars

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

Today, December 8, is the next episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Listen to Rich Kuegler with Stewart Title!

Chief Sales Officer at Deephaven Tom Davis will join Rob Chrisman on a webinar you won’t want to miss. In today’s market, originators need Non-QM to fully serve borrowers and to stay competitive. Learning how to utilize and market Non-QM isn’t difficult when you partner with the right lender. Please find out how easy it is by joining the webinar on December 12th! Register now.

Tuesday, 12/12, is the next Mortgages with Millennials with Kristin Messerli and Robbie Chrisman. Tune in every Tuesday at 1PM ET to the weekly video show designed to empower mortgage professionals to tap into the millennial market. This show demystifies the psychology of first-time homebuyers and offers strategies to win more market share with a key segment of the market. Sign up for a weekly reminder with the link to join and a sneak peek into the next episode. Next week’s guest is Catalina Kaiyoorawongs, Founder and CEO of LoanSense.

Have you registered yet for LIRC23? Discover the newest developments in legal and regulatory compliance for residential lenders. Join California MBA at the Irvine Marriott Hotel on December 11 – 12 for the 2023 Legal Issues and Regulatory Compliance Conference. This is your opportunity to hear from some of the nation’s top industry experts and learn about the hottest topics. You’ll be informed and empowered, don’t miss out.

What are the forces that will shape the 2024 economy and real estate market? Find out at the Real Estate Forecast Summit: The Year Ahead on December 12, 1-2 p.m. ET. NAR’s Dr. Lawrence Yun and Dr. Jessica Lautz are teaming with expert economists and thought leaders to review 2023 and discuss their expectations for 2024. They will cover the residential and commercial markets, plus demographic and market outlook data. There is no cost to attend, but you must register in advance.

“As 2023 comes to a close, empower your financial strategy with insights tailored for lenders. Join CWDL for a webinar on Tuesday, December 12 as we recap the year in accounting and tax and identify what action you need to take before the year ends. Our mortgage banking experts will review tax legislation passed in 2023 and what’s coming for 2024, share tips to get year-end financials closed accurately and efficiently, discuss preparing for your audit, review HUD and GNMA reporting requirements, address going concern analysis, and more. Reach out to Kasey English to register for this free webinar, and emerge with actionable insights to take advantage of these last few weeks of 2023.”

Vince Furey, SVP of Sales for MeridianLink, has some valuable market insights and strategies that can help your credit union not only survive but also thrive in this changing landscape. Don’t miss the upcoming ACUMA Inside Track webinar on December 12th at 1 pm CST, where you can learn how to capture and serve this important market segment and take your mortgage loan program to new heights.

Wednesday the 13th, looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. Next week’s guest is.

Dec 13, at 12:00 PM PT, will be a webinar to learn about innovative approaches to recruiting loan officers in the mortgage industry. Heidi Iverson and NAMBA’s Tony Thompson will explore data-driven recruitment strategies with Mobility Market Intelligence (MMI), a powerful tool for Mortgage Lenders.

Join Curinos home equity experts Richard Martin, Ken Flaherty and Kinley Hicks on December 13th as they debut their new national home equity market forecast and discuss how home equity could impact growth initiatives and balance sheets in 2024. Register now.

Our very own MBA has some webinars, including California’s Corporate Climate Data Accountability Act, MBA on December 14.

For a deeper dive into Pennymac TPO’s new product and how to position it with your borrowers, contact your Account Executive, and register for their Power Your Business Webinar, “Home Equity Seconds Product Overview,” on December 14 at 10am PT/1 pm ET.

The Knowledge Coop’s new membership platform offers all state and federal Continuing Education courses in an engaging and exciting video format that you’re sure to actually enjoy. Want to give yourself a sharper competitive edge? They also offer in-depth training on specific topics like VA Loans and FHA within their Coop Academy. Get access to industry experts and connect with other mortgage professionals all in one space. Use Code Chrisman10 for 10 percent off your first year of membership here.

Join in for “Hot Topics” with the Single-Family Housing Guaranteed Loan Program. Free, Live, virtual training for all USDA lenders and real estate agents. Don’t pass up the opportunity to say YES to more potential clients. Embrace the GUS recommendation, Thursday, December 14, 2-3 PM ET.

National MI posted its upcoming December 2023 webinar sessions. December options include the following: Income Case Studies with Marianne Collins – December 12th at 1pm ET. 2024 Business Planning for Purchase Business with Bruce Lund – December 13th at 2pm ET. Maximize Your Relationships: The Art of Annual Mortgage Reviews with Rebecca Lorenz – December 14th at 1pm ET.

This month, catch up on the latest underwriting and processing trends at your convenience with Arch MI’s online videos and podcasts. Choose Arch MI’s wide range of course offerings that cover the essentials for mortgage professionals. On the 14th, the co-authors of HaMMR Digest, Arch Chief Economist Parker Ross, and Director of Real Estate Economics Leonidas Mourelatos, present their assessment of the market environment, where rates and home prices are heading, and the implications for mortgage professionals in the new year. Register for Arch MI Housing Update Webinar on December 14 at 1 p.m. ET.

Friday, December 15th, is next week’s episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Hear from MGIC’s Terry Aikin!

Capital Markets

As job markets loosen and employers are not as quick to hire, investors are betting on when central banks across the globe will begin rate cutting cycles. Yesterday’s private payrolls from ADP printed lower than analyst expectations ahead of today’s release of the November jobs report. Thoughts that the Fed is done tightening helped mortgage rates drop closer to 7 percent, the lowest level since August, according to this week’s Primary Mortgage Market Survey from Freddie Mac. 30-year fixed mortgage rates have fallen 76 basis points since the end of October.

Today brought the November payrolls report where forecasts didn’t see all that much variability from October. November nonfarm payrolls registered 199k versus 186k expectations. The unemployment rate came in at 3.7 percent when it was seen holding steady at 3.9 percent. Average hourly earnings were when the number was seen increasing 0.4 percent month-over-month and 4.1 percent year-over-year versus 0.2 percent and 4.1 percent previously. Later today brings preliminary December Michigan sentiment, which is expected to tick up modestly. We begin the day with Agency MBS prices and the 10-year yielding 4.25 after closing yesterday at 4.13 percent (the 2-year is up to 4.71) after the employment numbers.

Employment

“Freedom Mortgage is seeking the best Account Executives nationwide. We understand the best are not just product experts but, also relationship builders. We seek industry leaders. Freedom Mortgage Wholesale believes Account Executives are vital to our success. Freedom Mortgage has been creating success for 30 years. Our people and processes are time-tested giving us trusted stability, no matter market conditions. Our deep roots throughout the mortgage industry provide confidence for the future. Freedom Mortgage is 4EVER Wholesale. Join our strong group of Account Executives who average 15 years in industry and 10+ years at Freedom Mortgage. If you are the best and want to work with a financially stable company to build your future, contact us.”

Newrez Wholesale is thrilled to announce the appointment of Divisional Vice President John McElhone to the Inaugural Corporate Board of Directors for NAMB (National Association of Mortgage Brokers®). “For 50 years NAMB has been the leading voice for the mortgage industry, and I am proud of the organization for creating its corporate board of governors as it will increase NAMB’s impact on the industry,” said McElhone. “Thank you to NAMB for inviting me to join the board and I am eager to bring my decades of experience I’ve obtained in my professional career to each and every day.” Way to go, John! Learn more about the new corporate board.

“Are you a go-getter who embraces hustle and strives for growth? Are you passionate about helping others on the path to success? If you answered yes, we want you! Kind Lending is seeking knowledgeable Wholesale Account Executives with experience in the mortgage lending space. As one of the fastest growing mortgage lenders in the country, we’re building an upbeat and collaborative team that strives to put people first in everything we do, infusing happiness around every corner. Our people believe kindness matters and a client’s positive experience is everything. Join the #kindmovemovement and come grow your business with an expanded product offering and best in class operational experience! Contact: Delfino Aguilar, SVP TPO Production, 619.726.0377.”

JMAC Lending, an industry-leading TPO lender for more than 25 years, has hired Eric Yang as Executive Vice-President of TPO Sales. Formerly VP of TPO Sales at Pennymac, Yang will lead JMAC’s team of Account Executives for both wholesale and correspondent. “Eric’s business approach aligns with our company mission and values: trust, teamwork and integrity,” JMAC Lending’s President Christina Pham said. “We are excited to have Eric lead our growing sales team, where we will continue to provide excellent support to our lender partners, especially in this unique market environment.” “Eric can navigate complex market landscapes and deliver results,” Pham says. “He has a deep understanding of the industry, and we are confident that his expertise will elevate our sales operations.” Start lending with JMAC today! Click here join JMAC and sign up for marketing and rates, or contact sales. Let’s grow your business and fund more loans in 2024.

Thank you to Julie Cooper who reminded me that, in the Northwest, “State Departments of Commerce Housing Divisions or Housing Departments are hiring folks versed in mortgage, title, escrow and real estate. County and Municipal Departments of Community Development and non-profit housing developers in Washington State are hiring in record numbers, as well, developing affordable multifamily, single-family housing for ownership and rental. Julie observed, “I think one way forward for our industry is private/public partnership. These developments, acquisition and construction projects need mortgage companies to help with homeownership, especially those who can do community land trusts and every transaction needs a title insurance policy and escrow provider. Ultimately, we are all stakeholders in housing and it’s really cool to be part of these innovative programs.”

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

Source: mortgagenewsdaily.com

Apache is functioning normally

December 7, 2023 by Brett Tams

Compliance, CRM, LOS, Servicing, Workflow, Internal Audit Products; Non-QM and Jumbo News

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Compliance, CRM, LOS, Servicing, Workflow, Internal Audit Products; Non-QM and Jumbo News

By:
Rob Chrisman

Tue, Dec 5 2023, 11:33 AM

My cat Myrtle doesn’t have a lot of rizz, and there are those that will argue that no cat has any charisma whatsoever. But plenty of marketing people do, or can create it, and even if you’re not in marketing, there are some clever marketing people out there. Creative minds as well, and if you’re looking for a Christmas present, here are the “best inventions of 2023” per Time Magazine. There is also cleverness and creativeness in the modular home manufacturing industry, probably far outpacing the ability of state and local government to issue permits. Meanwhile, lenders are facing a winter trying to figure out if they are in the “Survive until ‘25” camp or the “Grow more in ‘24” mindset? The credit industry is reeling as lenders grapple with soft versus hard pulls, renegotiating pricing, and bundled deals. And for some reason LO comp continues to be unsettled: dual comp, MLOs as real estate agents, transferring pipeline data when changing jobs, different fee structures within the same state, and so on. (Today’s podcast can be found here, and this week’s is sponsored 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. Hear an interview with Mayer Brown LLP’s Holly Spencer Bunting on RESPA happenings and how the industry can get to better regulation.)

Lender and Broker Products, and Services

Out with the old; in with the new! One of the things we most look forward to in December (besides the holidays, of course!) is the opportunity to envision and plan for a great future. We’ve curated a killer panel of industry execs who will share best practices and their favorite secrets to help you usher in 2024 at the highest possible note. TrustEngine’s Dave Savage hosts Dustin Owen of Waterstone Mortgage and Brian Covey of Revolution Mortgage in “Chaos to Clarity”, a sure-to-be deliciously juicy webinar that will inspire and energize you to end 2023 with a bang and move powerfully into the new year. Register now to save your seat!

What’s an internal audit anyway and do you need one? An internal audit acts as a third line of defense for your mortgage operation. It provides comprehensive assurance based on the highest level of independence and objectivity to evaluate the effectiveness of management’s internal controls. This function should advise your mortgage operation on plans to achieve the company’s strategic, operational, financial and compliance goals. An effective internal audit should go far beyond just checking a compliance box; it should be an integral part of protecting your company. If you want to ensure you’re adhering to regulatory requirements and demonstrating good faith business practices, a Richey May internal audit is a good fit. If you’re looking to be Fannie Mae approved in the future or want to maintain your approved status, it’s required. If you’re unsure whether you need an internal audit, ask one of Richey May’s experts today or learn more here.

“Is it a challenge getting what was promised out of your current subservicer? New regulations are always moving the compliance goal posts and your customers are craving the newest technology and high-quality customer experience to meet their needs. After all, aren’t those the reasons you contracted with them? Perhaps it’s time for a change. Come meet Servbank at the MBA Servicing Solutions 2023 and let us show you how our cutting-edge, fully transparent and award-winning servicing platform (SIME), combined with our family of caring Customer Care reps, will protect your company from regulatory misses and keep your customers loyal by delivering a superior experience every time. If your current subservicer promised to make life easier for you, but continues to miss the mark, now is the time to partner with Servbank, the nation’s only fintech bank subservicer, who can meet your unique needs. Stop by booth #601, or schedule a meeting with Servbank.”

Right in time for the holidays, Floify has launched Floify Broker Edition, a one-stop lending platform that makes it easy for brokers to manage loans in one place. Wrapped in Floify’s famously sleek interface, Floify Broker Edition is packed with magical features that save precious time and money, such as automated mortgage call reporting, dual AUS functionality, and PPE and wholesaler integrations. Just like Santa’s elves, automated workflows advance loans behind the scenes so brokers can spend more time spreading the joy of homeownership and less time pushing paper. Treat yourself (and your borrowers!) this holiday season with a lending platform that’s a joy to use. Experience the magic of Floify Broker Edition firsthand and book a demo today.

Take advantage of more opportunities by adjusting your business to match the market. Recently, lenders who could quickly scale their home equity products were able to capitalize on the increased demand. Are you maximizing home equity lending in your system of record? Encompass® by ICE Mortgage Technology® is the only solution on the market that can be easily configured without any development efforts to support a user’s unique products and workflows for each of their channels, including retail, consumer direct, HELOC, wholesale and correspondent. This means you can quickly react to market changes and manage your business in your own way. Click here to read our recent blog that shares strategies to maximize your home equity lending business and how Encompass makes it easy.

A borrower’s servicing experience is only as good as the back-office environment that supports it, which is only as good as the technology that powers it. That’s why ICE is actively moving servicing forward through digitizing the consumer experience and streamlining back-office operations. The mortgage technology experts at ICE understand that effective servicing solutions are built from the “outside in”, designing with the customer in mind and working until the same level of convenience is brought to those working behind the scenes. Read the new blog from Sandra Madigan, Chief Digital Officer at ICE Mortgage Technology, to see how ICE is engineering with empathy, and helping people achieve and maintain the dream of homeownership.

In Naples, people hurl plates, appliances and even furniture out of their windows on New Year’s Eve to symbolize making room for the new. If your LOS has been causing you strife, take a cue from the Neapolitans and chuck it out the window. Dark Matter Technologies is here to help you usher in a more prosperous 2024 with its Empower LOS. A fully cloud-based system, Empower brings your tech ecosystem together in one place and intelligently orchestrates delightful borrower experiences and efficient loan production. Schedule a demo with the Dark Matter team to learn how Empower can elevate your business in the year ahead.

Two things come to mind when looking for strategies to help LOs today. First, understand home buyers in the context of uncertainty in the market today. Get back to basics of why homeownership still makes sense: pride of ownership, building equity for the future, and a better environment for their family to live and grow. Next, be able to articulate good solid strategies to make home buying more affordable, both down payment strategies and ARMs to lower payments. It’s also important to understand buyer’s bias against ARMs and counter with common sense arguments. Usherpa, the #1 ranked mortgage CRM in customer satisfaction and loyalty, is offering these FREE printable handouts with informational scripts to use when talking with your homebuyers and valuable resources you can easily send them about ARMs.

ActiveComply is thrilled to introduce a brand-new product, WebCompass™, to discover and manage your websites for branding, compliance, and accessibility. The same power as SocialShield™ for Social Media but now for website and brand compliance. With WebCompass™ you can discover and monitor company and employee websites & web pages, protect your brand with website content scans and compliance tracking, uncover rogue or unauthorized websites, and streamline reporting demands during regulatory examinations. Sign up today for a demo and the first 25 customers will receive a discount. ActiveComply cloud-based solutions help highly regulated industries confidently manage their social media and website compliance and virtual inspections.

Non-QM, DSCR, Jumbo Broker and Correspondent Program News

Can we continue our same ad please: Long-term Rental or Vacation Rental? Visio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.5 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.

PRMG offers several Non-QM resources such as product matrices, job aids, trainings, calculators, worksheets, and other information to assist with using Non-QM loan products. Access the TPO Non-QM Resources page for detailed information.

Angel Oak Mortgage Solutions announced the release of its Blended Rate Calculator, providing borrowers with a quick and straightforward tool to estimate potential loan scenarios.

In tandem with its Angel Oak Mortgage Closed End Second Loans program, the Blended rate calculator helps you show borrowers what their 1st and 2nd payments, as well as LTV and blended rates, will be for both mortgages. This tool enables borrowers to easily assess how they can tap into their home’s equity while retaining their first mortgage.

PHH Mortgage announced new products for Non-Agency offering as of November 28th. Go to the company library to view the information.

A Jumbo option designed to empower homebuyers in high-value markets to secure their dream homes. Explore the advantages of Plaza’s new Jumbo Champion loan program, featuring top-notch pricing, loan amounts up to $3 million, and eligibility for FICO scores starting from 720.

LendSure Mortgage Corp., a Non-QM wholesale lender, announced the launch of its new Profit & Loss (P&L) Loan Program offering “a simplified and user-friendly process for business owners seeking capital in a complex financial landscape.” LendSure’s P&L Loan Program is designed to cater to business owners and self-employed investors with fluctuating seasonal income or cash businesses. It eliminates the need for a self-employment questionnaire, simplifying and speeding up the application process and making it more convenient for borrowers to secure financing. “We aim to empower business owners, redefining industry standards and facilitating their path to financial success… The program offers two tiers of loan amounts, giving borrowers the choice to provide only P&L statements for loan amounts up to $1,000,000 or supply two months of bank statements with P&L statements for loan amounts up to $1,500,000. This flexibility enhances the broker-customer relationship by providing a straightforward, efficient solution for business owners. Reach out to LendSure for more information.

First time home buyer/ first time investors now have a chance to buy an investment property with no income. Hometown Equity Mortgage offers a Bridge for First time home buyers; up to 75 percent LTV on a purchase, no ratio DSCR product, NO VOR/VOM, allowed to live rent free. FICO down to 650, Flexible guidelines, 12-24 month I/O with no prepay or EPO.

HighTech Lending Wholesale is now offering Jumbo Reverse Mortgages the Platinum Reverse which comes in three variations: Maximum LTV Fixed Rate, Adjustable Rate with a Line of Credit, and Reduced LTV with a lower Fixed Rate. The minimum age for the Platinum is 55 in most states, but some require the borrower to be 60 or 62.

Capital Markets

First Community Mortgage has named Jeff Pancer to the new position of Executive Vice President, Capital Markets. Congratulations!

Markets finally paused recent optimism that has been riding on the assumption that the Fed will lower interest rates in 2024. Until yesterday, that optimism had fueled rallies in both stocks and bonds over the past few weeks, with investors continuing to overlook Fed rhetoric and bet on deep interest rate cuts next year. Fed Chair Powell on Friday reiterated that it is too early to consider cutting rates, and that the Federal Open Market Committee plans to keep policy restrictive for some time. Despite his stance, markets are still at odds with the Fed, pricing in the first rate cut as early as March and 125 basis points of rate cuts in total for 2024. Remember, sticky inflation can prevent the Fed from cutting.

The Fed is widely expected to leave rates unchanged for the third consecutive FOMC meeting next week, in what would be no change for the fourth out of the past five meetings. However, the post-meeting statement will likely continue to indicate that additional tightening is possible. The fear is that the Fed declaring victory too early while the economy is growing, and the labor market is tight is a risk if inflation spikes back up. The Fed has entered its blackout period ahead of the meeting, so we won’t get any more chatter from FOMC members until after the meeting. Additionally, there will be no Treasury note or bond auctions this week. This week will be dominated by the jobs report on Friday where expectations are for an improvement from October’s report: an increase of 180,000 jobs in November and no change in unemployment.

Today’s economic calendar has a lot of non-market moving releases: Redbook same store sales for the week ending December 2, final November S&P Global services PMI, expected to decline slightly, ISM non-manufacturing PMI for November, expected to tick up, and JOLTS job opening for October, supposedly sliding to 9.35 million from 9.55 million in September. We begin the day with Agency MBS prices better by .125-.250, the 10-year yielding 4.23 after closing yesterday at 4.29 percent, and the 2-year yield down to 4.52 as investors continue to believe, perhaps mistakenly, that the Fed is not only done raising rates but will come around to cutting them.

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

Source: mortgagenewsdaily.com

Apache is functioning normally

December 6, 2023 by Brett Tams

California-based Pennymac Financial Services’s broker division, Pennymac TPO, launched a home equity loan product as tappable home equity nears its 2022 peak.

“Pennymac’s broker partners can now offer their clients a home equity loan as a second lien solution to access more cash, while still preserving the low interest rate of their first mortgage,” the company said.

A home equity loan — also known as a second mortgage — enables a homeowner to borrow money by leveraging equity in a home. The borrower receives the loan amount in one lump sum, which is paid back in monthly payments, typically for a term of up to 30 years.

The product is eligible only for primary residences with fixed-rate term structures of 10, 15, 20 or 30 years.

Currently available in 11 states, the minimum loan amount is $50,000 and the maximum is $500,000 with an 85% loan-to-value (LTV).

Pennymac’s home equity loan for brokers comes as U.S. homeowners sit on some $16.4 trillion of home equity in the third quarter of 2023. Tappable equity – the amount that can be accessed after retaining a 20% equity stake – stood at $10.6 trillion, nearing the peak in 2022, according to ICE Mortgage Technology‘s mortgage monitor report.

While cash-out refinancing was a popular way to access accumulated home equity when mortgage rates were lower, that’s a lot less appealing with rates over 7%.

Even with higher levels of home equity, borrowers are more likely to take out a second-lien mortgage rather than lose a low rate on their first mortgage through a cash-out refi.

Pennymac reported a total of $19 billion in total acquisitions and originations to date in the fourth quarter, including $16.3 billion in correspondent acquisitions; $1.6 billion in broker direct originations; and $600 million in consumer direct originations, according to its latest 8-K filing with the U.S. Securities and Exchange Commission (SEC) on Monday.

Apache is functioning normally

December 5, 2023 by Brett Tams

TPO, Subservicing, Marketing, CRA Products; Training and Webinars; Podcast Interview with Dr. Elliot Eisenberg

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TPO, Subservicing, Marketing, CRA Products; Training and Webinars; Podcast Interview with Dr. Elliot Eisenberg

By:
Rob Chrisman

Mon, Dec 4 2023, 10:43 AM

“People would learn more from their mistakes if they weren’t so busy denying them.” Here’s a little trivia for the compliance folks in the coffee room: The CFPB handles 20,000 consumer complaints per week, and given that financing a home, and then servicing the loan, is the largest financial transaction most individuals go through, you gotta figure a chunk of the 20,000 involve mortgages. While we’re on the CFPB, Director Chopra addressed issues related to refinancing in a hearing on Capitol Hill last Thursday. But the headlines have been grabbed by interest rate improvements in our free market economy, and the economics calendar this week will be highlighted by the U.S. jobs report on Friday, arriving just five days before the Federal Reserve’s December 13 meeting. (Expect payrolls growth will rise to 200K in November from 150k job additions in October, and the unemployment rate to stay steady at 3.9 percent.) Today’s podcast can be found here, and this week’s is sponsored 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 has a wide-ranging interview with economist Elliot Eisenberg on government spending, the Fed’s balance sheet, and “Eisenbergian Economics.”

Lender and Broker Products, and Services

Servicing transfers are complicated, so it is critically important that you nail down the prep work beforehand. If you don’t, and the servicing transfer goes awry, it’s not only servicers who suffer, their customers do, too. The professional services team at ICE Mortgage Technology break down exactly what’s on the line, and what happens when poorly handled servicing transfers leave customers in a lurch. Read its new blog here to learn just how “high stakes” loan transfers can be, and the steps servicers can take to avoid borrower confusion, retention concerns, and even reputational risk, before they become a problem.

Exclusive data: Maxwell Q3 2023 Mortgage Lending Report reveals trends in interest rates, loan volume, and borrower demographics. Q3 brought continued challenges for home buyers and lenders. Despite 11 Fed rate hikes over the past year and a half, interest rates averaged 7.2 percent in Q3, the highest Maxwell data has recorded within the current market cycle. Still, Maxwell’s new report, which derives insights across more than 300 lenders and $290B in loan volume, shows signs of stabilization in Q3. Motivated borrower groups found creative paths to homeownership despite adversity, flocking to remaining pockets of affordability (hint: West Virginia). For insightful market data along with actionable advice from Maxwell experts on how to form a strong 2024 strategy, click here to get your free copy of Maxwell’s Q3 2023 Mortgage Lending Report.

Community Reinvestment Act (CRA) Final Rule: Preparing Your Bank for CRA Modernization! After years of discussions and false starts, the Federal Reserve, FDIC, and OCC issued their final rule modernizing the Community Reinvestment Act (CRA) in October. The almost 1,500-page final rule will take effect on April 1st, 2024. This means banks must comply with all the rule’s provisions by January 1, 2026 (aside from certain requirements taking effect January 1, 2027). How will CRA modernization impact your bank? What do regulators hope to achieve? What are they looking for from banks? What should your bank do to prepare? In this new article, experts from Ncontracts discuss this and more, plus offer insights on how the right resources can ease these regulatory burdens. Read the full article for more information.

Variety is the spice of life, which is why ICE maintains an ever-growing library of multimedia marketing content with its Surefire℠ CRM and Mortgage Marketing Engine. Intelligently automated Blueprints for Success give lenders a leg up with effective marketing workflows without the hassles of A/B testing and complex configuration. Whether a lender launches our Blueprints for Success out-of-the-box or configures them to meet unique goals, these automated campaigns help nurture relationships, improve pull-through and power sales across the entire homeownership lifecycle. Explore how Surefire can power your sales strategy in 2024 and schedule a demo with the ICE team today.

Delinquencies have remained statistically low, but recent market data indicates an uptick in early-stage delinquencies, unemployment, and more Americans relying on credit to make ends meet, so that rate may continue to rise. Computershare Loan Services (CLS) is a highly rated subservicer that can take the heavy lifting of managing high-risk loans off your shoulders. All its services (originations fulfillment, co-issue MSR acquisition, subservicing, and its mortgage cooperative) help keep lenders one step ahead. In this industry, you deserve a partner that has it all. Contact CLS to find out how they can help you reach your goals, in any market.

Broker and Correspondent Programs

Give Your Pipeline a Boost this December with LoanStream’s Winter Specials on Non-QM and Prime! Purchase, Rate/Term & Refi Cash-Out on both. Non-QM, 50bps >65% to <= 75% LTV & 720+ FICO, 75bps >55% to <= 65% LTV & 720+ FICO, 100bps <= 55% LTV & 720+ FICO. These are only here for a limited time so take advantage and Contact your Account Executive for details. For loans locked 12/1/2023 through 12/31/2023. Restrictions apply. Interested in getting approved? Visit our Get Approved page now: Get Approved LoanStream Wholesale – Wholesale Mortgage Lending.

With the holiday season underway, Rocket Pro TPO is kicking off its December to Remember campaign by introducing a series of exciting and valuable wins throughout the month of December to celebrate and support Rocket Pro’s broker partners. On Friday, the first win was introduced: a 25 bps LLPA on 30-year fixed rate conforming VA loans that will be available all month. Check out this video message from EVP Mike Fawaz. And, today, Rocket Pro’s highly popular Fast 15 Loan Guarantee is back now through January 31st! This special offer for brokers guarantees that all eligible loans will be clear to close in 15 business days or they will pay your client $2,500. For correspondent partners, they guarantee that eligible loans will be clear to close in 15 business days, or they will waive the $999 acquisition fee. Requirements and rules apply. Partners are encouraged to watch their inboxes and Rocket Pro TPO’s social media channels for more wins to come. Interested in learning more about a Broker or Non-Delegated Correspondent partnership? Contact Rocket Pro TPO to learn more.

Events, Training, and Webinars in December

TOP CEOs DISCUSS WINNING STRATEGIES FOR THE 2024-25 MORTGAGE CYCLE. Tomorrow, 12/5, at 2 PM ET, tune into HousingWire as Sagent CEO Dan Sogorka digs into this topic with industry leader Mark O’Donovan (Chase), moderated by Julian Hebron of The Basis Point. These 3 mortgage experts will uncover how lenders can thrive through 2025 and beyond, discussing vital topics such as navigating homebuyer affordability, lender priorities, FHFA, CFPB insights, and more. Don’t miss this powerhouse session! Register here to refine your strategies for the upcoming year or catch the recording if you can’t attend live.

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

Tomorrow, 12/5, is the next Mortgages with Millennials with Kristin Messerli and Robbie Chrisman. Tune in every Tuesday at 1PM ET to the weekly video show designed to empower mortgage professionals to tap into the millennial market. This show demystifies the psychology of first-time homebuyers and offers strategies to win more market share with a key segment of the market. Sign up for a weekly reminder with the link to join and a sneak peek into the next episode. This week’s guest is Kayla Gatmaitan, and education-focused LO for first time homebuyers.

If business is slow and you’re looking for new opportunities, register for MBA Eastern Pennsylvania’s upcoming free session with Freddie Mac on Tuesday, December 5 at 11:00 a.m. One of the challenges homebuyers face in today’s market is saving for the down payment. In this session, the benefits and differences between two low down-payment offerings, Home Possible® and HomeOne® will be explored. Additionally, the session will cover Freddie Mac BorrowSmart AccessSM, a program that offers up to $3,000 in down payment and closing cost assistance to help your clients reach homeownership.

The title industry faces many challenges going into 2024 and October Research wants to help you prepare your business. Orrick Partner Sherry-Maria Safchuk and CATIC SVP and National Agency Manager Kyle Rank will share their expertise and address critical issues such as consumer protection, cybersecurity trends, remote online notarizations, updates on the 1033 rule and more on the latest Industry and Regulatory Outlook webinar Dec. 5th. Stay ahead of the competition and start the new year strong. Register today at DoddFrankUpdate.com.

2023 Financial Institutions Professionals Webinar Series, presented by the Bonadio Group, December 5th, 6th, and 7th at 8:00 PST. During this complimentary event, industry experts will discuss emerging issues, impacts, insights, & more. Create your own personal agenda by choosing from several sessions, each designed as a roadmap to help you navigate what’s to come in the ever-changing financial services landscape. Each session offers 1 (one) credit of CPE.

Wednesday the 6th, looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. This week’s guest is Mark Jones, President of Union Home Mortgage and Chairman of the MBA.

Join MBA St. Louis at St. Charles Realtors, Wednesday, December 6th, 8:00 am – 10:30 am, and test your knowledge on Conventional Loans. This engaging and interactive course led by Trainer MaryKay Scully, Enact MI’s Director of Customer Education will review the key areas of Credit, Income, Collateral, Liabilities, Assets, HomeReady and Home Possible. It will inform and engage participants. Assessing knowledge, while reviewing Fannie Mae and Freddie Mac guidelines, as well as Desktop Underwriter and Loan Product Adviser. Cost: $20 (covers light snacks and room rental).

Freddie Mac added enhancements to its HFA Advantage® mortgage offering, providing a competitive solution for housing professionals to consider for first-time and repeat homebuyers. In a free webinar, Thursday, December 7th, 2 p.m. – 3:30 p.m. ET, you’ll learn more about HFA Advantage’s features and benefits, eligibility and homebuyer education requirements and new product enhancements.

With a residential real estate market that continues to change and evolve, WMBA has gathered industry professionals that offer different perspectives to give real insight into “Build for Rent” model, an increasing popular approach to residential new construction being built and held as rental properties. Join WMBA for the Income Property Luncheons on Thursday, December 7th, In Person Attendees: 11:30-1:00pm, Virtual Attendees: 12:00pm-1:00pm.

Join Angel Oak Mortgage on Thursday, December 7 at 10:00 PST for a webinar detailing its Investor Cash Flow (DSCR) programs and cover the top 20 broker questions. Learn how easily these loans close and help add to the bottom line.

Success leaves clues. Not surprisingly, many of the traits shared by high achievers are common sense in theory, but not necessarily common practice (otherwise, everyone would be a high achiever, right?). Discover the keys to having your best year ever, the most important (yet often missing) part of the formula for success and disciplines you often don’t think about. Join Hannah J. Barton and Blaine Rada, CSP, to discover these habits and incorporate them into your own life. TMBA Webinar, Habits of High Achievers, Thursday, December 7 at 11:00 am – 12:00 pm.

Join LSEG Academy session Central Bank & Bond market outlook – Insight from IFR Markets,

Thursday, December 7th | 8:00 PST., as industry experts examine recent benchmark interest rate increases and likely changes to the direction of central banks’ monetary policies. They will also look at the commentary and insight provided by IFR Markets and showcase how benchmark rates have been impacting the bond and rates markets utilizing LSEG Workspace tools. The discussion will include expectations for interest rate moves in 2024 and provide an opportunity to ask questions to industry experts.

Friday, December 8, is the next episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Listen to Rich Kuegler with Stewart Title!

Capital Markets

As mortgage rates dropped for the fifth consecutive week last week, Federal Reserve Chair Powell said that any speculation of potential rate cuts is still “premature.” Yes, inflation is easing, and the U.S. economy is cooling with Fed policy now well into restrictive territory. The full effect of higher rates is still working its way through the economy and the central bank has noted progress against inflation over the past six months. The hiking cycle is likely over, but the Fed is reluctant to admit as much or discuss any sort of rate cuts.

Economic data over the last week continued to show the U.S. economy is still expanding while inflation trends lower. Real GDP was revised up to 5.2 percent in the second update from 4.9 percent in the advance update. Consumer spending on services increased 0.2 percent in October and spending on nondurable goods increased 0.3 percent. The October PCE deflator was unchanged in October and showed prices were 3.0 percent higher than twelve months ago; the lowest annual reading since March 2021. While prices are still rising faster than the Fed’s preferred rate, the pace continues to slow and bodes well for a soft landing for the U.S. economy.

This can also be seen in housing prices which rose 0.7 percent in September and 3.9 percent from one year ago, according to the S&P CoreLogic Case-Shiller Home Price Index. While elevated mortgage rates helped the slowdown, limited available for sale inventory has kept prices from outright declines. As a result of the continued progress on inflation and recent Fed comments around being well into restrictive territory, the markets expect the Fed is done hiking and will begin to cut rates in 2024.

This week’s economic calendar contains several higher tiered releases including the November payrolls report and preliminary December consumer sentiment on Friday. Between now and then, we will receive ISM Services for November, some labor market indicators, wholesale trade, and consumer credit. The week kicks off with just factory orders for October, due out later this morning. We begin Monday with Agency MBS prices roughly unchanged from Friday evening, the 10-year yielding 4.25 after closing last week at 4.23 percent, and the 2-year at 4.61.

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

Source: mortgagenewsdaily.com

Apache is functioning normally

November 25, 2023 by Brett Tams

Efficiency, AVM, POS Products; MI, Wholesaler, Correspondent News; STRATMOR M&A Interview

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Efficiency, AVM, POS Products; MI, Wholesaler, Correspondent News; STRATMOR M&A Interview

By:
Rob Chrisman

Wed, Nov 22 2023, 9:42 AM

“I threw my phone from the roof, and it broke. I guess airplane mode wasn’t working.” Plenty of folks will be traveling soon. Here’s some trivia for tomorrow at the dinner table! (One wonders if residential lending is heading in this direction) … But there are only 12 passenger airlines in the United States. That’s up from 10 just a few years ago but down from about 80 airlines at the peak industry in the 1980s due to a series of bankruptcies and mergers. Four of those companies (Delta, United, American, and Southwest) control 80 percent of the market, with the remaining 20 percent being low-budget airlines that are increasingly struggling. The average airline fare has declined 13 percent over the past year, and that’s been causing issues for the companies that specialize in lower fares, as many of their customers are now seeing the big guys as more accessible than before. (Today’s podcast can be found here, sponsored by Candor. Candor’s patented automated underwriting decision engine, CogniTech, is a state-of-the-art, 100 percent machine platform that can handle infinite loan scenarios. Hear an interview with the STRATMOR Group’s Garth Graham on M&A activity in 2023 and trends in the space heading into 2024.)

Lender and Broker Software, Products, and Services

With increased regulatory focus on property-valuation bias, lenders need robust risk-management processes in place. The recently released interagency proposals on AVM quality control and ROV-process guidance are designed to prevent valuation bias and help ensure industry stakeholders follow fair-lending practices. Watch our complimentary on-demand webinar to learn how you can prepare, and implement the tools needed to support the proposed AVM standards and ROV guidance.* Our experts discuss how to identify potential bias in valuations, ways to mitigate bias risk, how to monitor AVM and appraisal compliance with fair-lending requirements, and more. Watch this timely and important webinar here. *Check with your compliance or legal department for information on complying with applicable law.

Pipeline as dry as your mother-in-law’s turkey this time of year? Moisten it up with LiteSpeed by LenderLogix.

From zero to correspondent in 60 seconds… Building a correspondent channel requires exceptional customer service, precise execution, & immediate responses. Regular way, it’s costly & inefficient. Blue Water has solved this. Our comprehensive Correspondent-as-a-Service (CAAS) solution allows firms of ANY size to quickly streamline their operations and get up and running. Automated bidding provides instant pricing via email, branded portal & bid desk for sellers facilitated by our tape crack features and customizable seller settings. Ingest multi-seller tapes, price different product types, access agency pricing and LLPAs. (“Blue Water”) will integrate with your LOS for point and click onboarding, help you transfer loans, and manufacture clean product. Choose an optimal Servicing execution, best-ex in-bound loans and drive volume. Make $, grow your business and pay as you go with no upfront cost. From pricing, valuations, transactions, transfer, QC, to boarding, Blue Water makes it easy to scale up your business. Connect with our expert Sales Team.

Orion Lending slashed its annual expenses by $300,000 and boosted its conversion rate by 32 percent using Truv’s income and employment verification solution. “Truv transformed our verification process, expanding our reach and cutting costs,” asserts Richard Plummer, EVP of Operations at Orion Lending. Stop Overpaying. Highlights include impacting $300,000 annually in savings as a result of increased conversion rates, 32 percent end-to-end conversion rate, an increase of $100 in savings per application, implementing Truv in a couple of weeks, and reduced the loan manufacturing time and approval process by several days. Contact TRUV today for your income, employment, insurance, and asset verifications.

Miscellaneous Wholesaler, Correspondent, and MI News

Angel Oak Mortgage Solutions announced the release of its new DSRC Loan Calculator, providing borrowers with a quick and straightforward tool to estimate whether or not a property’s expected cash flows are sufficient to repay the mortgage loan. In tandem with Angel Oak’s DSCR Loan program, the DSCR Loan Calculator helps you show borrowers what their monthly fixed payment or monthly interest only payment would be depending on the option they seek.

Fifth Third Correspondent Lending News 2023-7-11.13.23 discusses Final Document Reminders, and Fannie Mae Products 2-4 Unit LTV.

PRMG Product Update 23-52 clarifies information on Expanded Access including multiple Financed Properties requirements for Pime and Plus connect, prepay is no longer allowed in KY and LA. Also, due to prepay not being allowed in KY, Investor Premier is no longer eligible in KY. Updates to Choice Products Profile and/or Expanded Guidelines which includes revisions to investment properties standard prepay penalty amount and increased maximum interested party contributions. Revised guidelines for Short Term Rental income. Updates to Product Profile and/or Expanded Guidelines on Choice Stretched Prime and Choice Non-Prime, Choice DSCR, and Closed End Second Products.

Reach more clients with loan programs that allow Manufactured Homes. LoanStream Mortgage knows the complexity of financing these types of homes and can help your borrowers attain a mortgage by offering a variety of loan solutions to fit their needs. Loan Programs allowing Purchase & Refinance Manufactured Homes include Conventional – Fannie Mae FNMA, RefiNow, FHA, VA, MaxONE. The following are not allowed on these programs: Non-QM / NanQ, Conventional – Freddie Mac – FHLMC, USDA, and Jumbo ONE.

Did you know that borrowers can turn cash-only properties into their dream homes with a renovation loan? When homes don’t meet the minimum property requirements (MPR), Plaza Home Mortgage® has the solution. Renovation loans can help elevate homes to meet MPR standards, and the improvements can even take place after the closing process. What’s more, qualified borrowers can be approved based on the future value of the improved property, making this option accessible to even first-time homebuyers. Renovation is becoming an increasingly popular strategy in today’s high-cost, tight inventory housing environment. Plaza Home Mortgage® makes it easy to capture more business in this growing lending segment. We offer multiple renovation loan options and have a department of dedicated renovation specialists to walk you through every step.

An ADU, or Accessory Dwelling Unit, is defined as an additional unit on a residential lot in addition to the main house (or main multi-family building). Recently in Los Angeles County, Orange County and California as a whole, new laws SB9 & SB10 and guidelines regarding ADU’s have been modified to allow for more ADU construction as a way to help solve the CA Housing shortage. The newer laws allow for much higher density in transit rich areas or urban infill areas. Visit 17th Street Capital for Lending Criteria & Guidelines.

The availability of 2-1 Seller Paid Buydown options with CalHFA programs from Kind Lending. This new option will be offered on both CalHFA Conforming & CalHFA FHA 1st loans: the Seller or Agent may provide buydown funds, subject to the standard IPC limits, Lender paid buydowns are not offered. Buydowns are allowed for conforming and high balance loan amounts. The borrower is qualified at the note rate fully amortized (not the buydown rate).

National MI announced updates and clarifications regarding underwriting changes to support affordable housing initiatives, effective November 18, 2023. View National MI Announcement Bulletin: UW 2023-04, and Servicing Guide for details. Additionally, National MI posted a Rescission Relief Guide in alignment with Fannie Mae and Freddie Mac retirement of Covid-19 forbearance requirements for all forbearance evaluations with an evaluation date on or after November 1, 2023, including evaluations for new forbearance plans and evaluations for extensions to existing Covid-19 forbearance plans.

Arch MI noted, “In response to Fannie Mae’s recent Desktop Underwriter Release Notes expanding LTV ratios for 2- to 4-unit properties and to further support affordable housing, Arch MI reminds our customers that our EZ DecisioningSM Program allows 2 to 4 units at a maximum 95% LTV ratio as follows…” (See the bulletin for full details.)

Radian MI revised its Eligibility Matrices to include One Underwrite (AUS) to reduce the minimum FICO from 700 to 620 for 3-4 unit properties.

MGIC reminded clients of the tools that can help turn renters into first time home buyers.

Capital Markets

Markets largely shrugged off the release of Fed minutes from the November meeting yesterday as old news with no surprises. Minutes showed that policymakers see room for additional tightening if incoming data shows insufficient progress toward slowing inflation, but they would also like to see more evidence to suggest that inflation is slowing toward the central bank’s target. Yes, the markets are pricing in rate cuts as early as March of 2024, but the markets and the Fed have been on different pages for most of the post-pandemic economy. Higher-for-longer rates have created a frozen U.S. housing market as homeowners are reluctant to sell and buyers are squeezed. The U.S. 30-year fixed mortgage rate has risen 460 basis points over the past three years.

Existing home sales fell 4.1 percent in October to a seasonally adjusted annual rate of 3.79 million, according to the National Association of Realtors. That is the slowest pace of sales since August 2010. Sales were down 14.6 percent from one year ago, though the median home price rose 3.4 percent to $391,800, the fourth consecutive month of year-over-year price increases. Sales continue to be hurt by persistent lack of housing inventory, high prices, and the highest mortgage rates in a generation. The inventory of unsold existing homes grew 1.8 percent from the previous month to the equivalent of 3.6 months’ supply at the current monthly sales pace. Multiple offers are still occurring, especially on starter and mid-priced homes, even as price concessions are happening in the upper end of the market.

As U.S. bond yields continue to fall, mortgage applications increased 3.0 percent from one week earlier, the third straight increase according to MBA. That kicked off today’s economic calendar, and was followed by October durable goods orders (soggy), and weekly jobless claims (209k, down from 231k, better than expected). Later today brings final November Michigan sentiment, Treasury announcing the auction sizes for next week’s 2-, 5-, and 7-year notes, and Freddie Mac’s Primary Mortgage Market Survey. Unlike Friday, today is not an early close, but it is likely to trade like one. We begin the last full session of the week with Thanksgiving looming tomorrow and an early close on Friday with Agency MBS prices better .125-.250 and the 10-year yielding 4.38 after closing yesterday at 4.42 percent.

Employment and Transitions

“It is with great pleasure that GHMC TPO announces the latest addition to our esteemed sales team: Mr. Tom Carroll. Tom assumes the role of National Account Executive, overseeing our Midwest region. We are excited about Tom joining our team and eagerly anticipate the opportunity for you to benefit firsthand from his experience and exemplary customer service. Furthermore, GHMC TPO has successfully completed the transition into the First Colony Mortgage family. We are on a mission to be the first choice of loan officers nationwide by offering consistent competitive pricing, superior service, and best in class technology. Check us out here or email Rex Hagood.”

“SWBC Mortgage fosters an environment where our Loan Officers can thrive and continue to provide exceptional service to their clients and partners, even during tough times. One of the most successful ways our team has stayed connected and engaged this year is by hosting educational workshops across the country. One in particular features Blake Hastings, SVP Corporate Strategy & Chief Economist at SWBC. As keynote speaker of 12 workshops, he has covered local and national economic analysis and provided dynamic forecasts for the coming months. Support is more important now than ever before. Because SWBC Mortgage has the right resources available to our teams, we are able to navigate challenges with resilience, while continuing to grow in a down market. To learn more about career opportunities at SWBC Mortgage contact Scott Brown, EVP of Retail Sales or visit us here.”

Movement Mortgage is helping builders and buyers navigate the high-rate environment with its new Lock It & List It program. Designed for new home builders, the program allows builders to lock in and buy down an interest rate today, PLUS pay up to the maximum amount of seller contributions toward closing costs. With Lock It & List It, builders can attract new buyers with competitive interest rates and closing cost savings, give buyers rate confidence with one free float down, and meet many buyers’ needs as the program is available for 30-year conventional, VA and FHA loans. By empowering builders to enhance home affordability and attract a broader pool of buyers, Movement is revolutionizing how builders navigate the complexities of today’s real estate landscape. Learn more here and contact Movement today to get locked in!

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

Source: mortgagenewsdaily.com

Apache is functioning normally

November 20, 2023 by Brett Tams

TPO and Correspondent, Non-Agency Best Ex, Verification; Equity Figures for Refis; STRATMOR on Customer Experience

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TPO and Correspondent, Non-Agency Best Ex, Verification; Equity Figures for Refis; STRATMOR on Customer Experience

By:
Rob Chrisman

Fri, Nov 17 2023, 11:13 AM

Talk can be humorous. “That lowdown scoundrel deserves to be kicked to death by a jackass, and I’m just the one to do it.” (Attributed to a congressional candidate in Texas.) Here in Dallas, mortgage talk is certainly wide-ranging and varied as there’s a lot going on out there as we head toward Thanksgiving week, including cost cutting, M&A, and Fair Lending. Today’s Rundown features Feliks Viner, VP of Capital Markets with First World Mortgage discussing rate volatility at 3PM ET. We have the Wall Street Journal story about the union between hoops and loans: “Mortgage King Wants the NBA Crown, Too.” Some housing industry observers may only think it was “only a flesh wound,” but the Realtors™ antitrust case decision in Missouri, coupled with other recent settlements and an onslaught of new cases, likely portend real changes for how homes are bought and sold in the US with the assistance of real estate brokers. Attorney Brian Levy, breaks it down and offers his view of the crumbling dam for buyer broker commissions and the Realtors’ control over local listings in his most recent Levy’s Mortgage Musings. (Today’s podcast can be found here, sponsored by LoanCare, the mortgage subservicer known for delivering superior customer experience through personalization and convenience. Its award-winning portfolio management tool, LoanCare Analytics, supports MSR investors with a focus on customer engagement, liquidity, and credit risk. Interview with Calque’s Chandra Srivastava on the inner workings of a mortgage marketing department and how companies justify ROI on marketing spend.)

Lender and Broker Software, Products, and Services

“Truv is saving Lenders 60-80 percent over competitors. That’s the savings of multiple full-time employees. For example, Compass Mortgage saved roughly 60 percent in verification costs and maintained their same conversion rate. “Truv has given us the ability to lower costs, all while speeding up the verification process and providing better employment data” said Justin Venhousen, COO, Compass Mortgage. Stop wasting money. Contact TRUV today to discuss how we can help you with your income, employment, insurance, and asset verifications.”

The Work Number® can help streamline processes and provide greater value to employment and income verification processes. Wider data coverage can help streamline lending processes. The Work Number is the largest commercial repository for consolidated income and employment data with access to 641 million instantly returned records, updated each pay cycle, provided directly by employers and payroll providers, so there’s no need to collect an applicant’s private banking or payroll credentials, potentially exposing them and yourself to risk. Lenders and brokers have a choice: access The Work Number directly from Equifax OR through our pre-built integrations with over 60 Point of Sale (POS) and Loan Origination Systems (LOS). Not all methods for verification of income and employment are created equal. Discover why The Work Number is the leading choice for seamless, swift, and automated verifications.

In this market, hustle is everything. You can’t afford to waste a single deal, or a single minute. That’s why ReadyPrice has launched Shop, Lock, Deliver, an innovative platform designed to help independent mortgage brokers and their lenders save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders, all on a single platform, at no cost to brokers. It’s already helping brokers around the country thrive and compete in the toughest market. Multiple lenders. One platform. Zero b.s. Come check us out today.

Join MAXEX at 2 p.m. ET on Thursday, December 7, for a special webinar on how the company is expanding its role as the cash window for the non-agency market. MAXEX’s multi-buyer-to-multi-seller exchange now provides more than 300 originators with access to more than 25 leading jumbo, non-QM, DSCR, Agency-eligible (NOO and 2nd Homes), and scratch & dent investors through a single clearinghouse. Join this event to learn about how MAXEX can help your business stay nimble and prepare for profitable, efficient growth in 2024.

Homebot is making a move towards an even more connected consumer experience through its launch of the Homebot Mobile App, allowing clients to connect with their trusted home advisors in a single tap right from their mobile device. With this announcement, every Homebot customer has the opportunity to engage their clients more deeply while generating more relationships with first-time homebuyers. See full story here.

Broker and Correspondent Products

Spring EQ Wholesale is now offering investment property HELOCs for 1st and 2nd lien positions! There is high demand for this product, and now is a great time to reach out to your clients who own investment properties and offer a way to access the equity in those homes. Need help with pricing? Click here to submit a scenario to Spring EQ’s team of Account Executives. Don’t forget, with Spring EQ you can earn up to 2.5 percent in traditional broker compensation on HELOCs and HELOANs. Looking for new opportunities in the mortgage space? We’d love to speak with you! Explore our job postings and come join our growing team of fun and experienced mortgage professionals! At Spring EQ our primary focus is second mortgages. So, think of us first for all your seconds. Become a partner now or contact your Account Executive to learn more.

“Now is the perfect time to align yourself with a top-tier correspondent partner like Newrez Correspondent. How are you going to meet and exceed your 2024 goals in this challenging market? By choosing a partner with the strength, size, and quality of Newrez. We provide competitive pricing, an expansive product line and an unwavering commitment to service. Don’t take it from us. Visit our website to read what our valued clients have to say. More reasons? We offer multiple affordable lending options, a comprehensive monthly client training calendar and access to marketing materials you can customize on The Marketplace by Newrez. Non delegated/Non-QM product availability with access to LoanNEX (pricing and product eligibility platform). Contact your RSM to learn more by clicking here. At Newrez, there is much to be thankful for: our team, our clients, and our families. Wishing you and yours a safe and Happy Thanksgiving.”

What if you had a powerful tool that could help you close your purchase pipeline at four times the rate? Rocket Pro TPO’s Verified Approval (VAL) goes beyond typical pre-approvals by providing a fully underwritten solution that includes a review of your client’s credit, income, and assets. As a result, you will realize the benefit of more committed clients with a clear picture of affordability and the confidence to start shopping. And partners can rely on fast Verified Approval reviews to jump start the purchase process: VALs are available to partners from their portal in as little as 24 hours after the request. Plus, clients using a VAL have the option to lock their rate before finding their new home! Interested in learning more about a Broker or Non-Delegated Correspondent partnership? Contact Rocket Pro TPO to learn more.

STRATMOR on Customer Relationships

What if our response to the prolonged market downturn was less about waiting it out, and more about learning and improving? What if we became learners and doers, not just survivors? In his November Customer Experience Tip, STRATMOR CX Director Mike Seminari talks about the need for being active in the downtime, building relationships, gaining product knowledge, reading books and listening to podcasts, always in pursuit of self-betterment and excellence in customer care. He shares three lessons that 2023 has taught us and how we can parlay them into success in 2024. Check out, “Top Three CX Lessons That Will Drive 2024 Success.”

M&A is not Lender-Exlusive

Lenders are not the only ones in our biz with shrinking balance sheets, competitive pressures, and owners looking at strategic alternatives to battling it out every day.

Stavvy, a fintech firm specializing in digital and remote collaboration for lending and real estate companies, acquired SigniaDocuments, a technology suite from Texas-based lender Evolve Mortgage Services. “Stavvy will acquire assets, including eClosing tools, eNote and eVault services, eRegistry capabilities for agency and non-agency loans and SigniaDocuments’ SMART Doc technology – a data-driven electronic document engine.” Stavvy will offer eNote, SMART Doc disclosures and loan documents for all 50 states across all loan programs and Evolve’s Charlie Epperson and Tim Anderson will join Stavvy as chief product officer and EVP of digital mortgage strategy, respectively. Recall that in August, Stavvy acquired digital mortgage servicing tech firm Brace to provide a streamlined platform for mortgage servicers and homeowners.

Equity and the Future of Refinance

A report from ATTOM shows that in Q3 2023, fewer homes were equity-rich, meaning their loan balances were less than half of their market values. The share of equity rich mortgaged homes was 47.4 percent. This is a drop from 49.2 percent in Q2 2023, making it the largest quarterly decline since 2019. The decline in equity-rich properties happened despite recent home value rebounds. That said, the percentage of seriously underwater mortgaged homes continued to improve. Only 2.5 percent were considered seriously underwater in Q3 2023. That’s the lowest point in the past four years. It’s down from 1 in 36 homes in Q2 2023 and 1 in 35 homes in Q3 2022.

Elliot F. Eisenberg, Ph.D. writes, “As of 9/23, the percentage of home mortgage holders with negative equity is just 383,000 or 0.7 percent, less than half the percentage prior to Covid and prior to the Housing Bust. The percentage peaked in 2009 at 30 percent. Currently, the city with the highest percentage of underwater mortgage holders is Austin at 2.1 percent, because prices are 14 percent off 2022 peaks, followed by Las Vegas at 1.7% and Phoenix at 1.6 percent.”

Capital Markets

Have you stopped your spending? Inflationary price tags, high interest rates and the return of student loan payments were thought to prompt many Americans to hold back on opening their wallets, but that doesn’t appear to be the case. A strong labor market has helped keep spending afloat across the economy, with new revisions even showing that the blowout retail reports from the summer were even better than initially estimated. Those trends are expected to continue with Black Friday only a week away, followed by the traditional holiday spending spree.

But as the fabled “soft landing” for the U.S. economy comes more and more into focus, we have seen mortgage rates and other bond yields drop as of late. Yesterday morning’s batch of data showed a larger than expected increase in weekly jobless claims coupled with a two-year high in continuing claims, fitting the Fed’s preferred script of seeing some softening in the labor market. Initial claims are at their highest levels since August and continuing jobless claims are at their highest level since November 2021. Export prices were down 1.1 percent month-over-month in October and down 4.9 percent year-over-year. Import prices were down 0.8 percent month-over-month and down 2.0 percent year-over-year. And total industrial production declined 0.6 percent month-over-month in October while the capacity utilization rate fell to 78.9 percent, though all figures were adversely affected by the UAW strike. Today’s calendar kicked off with housing starts and building permits for October (+1.9 percent and +1.1 percent, respectively). As has been the case all week, there are plenty of Fed speakers, and today features Boston President Collins, Vice Chair for Supervision Barr, San Francisco President Daly, and Chicago President Goolsbee. Today is also 48-hour notification for Class D MBS. We begin the day with Agency MBS prices better by .125-.250 and the 10-year yielding 4.40 after closing yesterday at 4.45 percent.

Employment

“If you are looking for a lifeline to save your people and your business in this challenging rate environment, you have an opportunity to partner with a well-capitalized independent mortgage company with over 40 years of experience. We offer a portfolio product line that gives our origination team the opportunity to quote unique scenarios for DPA, 2nd liens, ARMs, non-owner, Jumbo, Doctor/Professional, and more. Our proprietary coaching program is free to all Loan Officers. Even in this market, we’ve doubled-down on the support we provide, from a dollar-for-dollar marketing match to in-house creative & design services, video marketing, social media, training, and credit services. With unmatched operations support at the branch and corporate levels, your clients and referral partners will be more than impressed. Our company is Fannie and Freddie seller/servicer, FHA, VA, and USDA approved. For a confidential conversation, please contact Anjelica Nixt and mention this opportunity.”

“It’s all part of the Plan! Operating as MWF Home Loans in Tennessee, Mountain West Financial is continuing our expansion plans in Tennessee. Throughout this year, we have continued our growth with recent launches in North Carolina, South Carolina, Florida, and several other states east of Texas. The expansion is part of our overall growth strategy to expand our footprint. EVP and Board member, Ben Holloway has relocated to Tennessee in an effort to help drive our expansion. For more information about our growth plans and career opportunities, contact Ed Adams or Ben Holloway. Or visit us here for more information.”

“At Evergreen Home Loans™, we’ve always believed in supporting our associates and team members in their commitment to local causes. With the establishment of the Evergreen Cares Foundation, we’ve provided a powerful tool to help them do just that. The Evergreen Cares Foundation is our way of enabling our team to make a difference in the community. Whether it’s addressing hunger, promoting education, or providing assistance during crises, this foundation reflects our dedication to community well-being. Our associates are passionate about giving back, and this foundation allows them to channel their energy and resources toward causes they care deeply about. By doing so, we strengthen our community and embody our core values of empathy and support. Learn more about the Evergreen Cares Foundation and the remarkable impact it’s making. Together, we can build a brighter future for everyone.”

“Explore Spring EQ’s job postings and come join our growing team of fun and experienced mortgage professionals! At Spring EQ our primary focus is second mortgages.”

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

Source: mortgagenewsdaily.com

Hanover Mortgages

The Refined Mortgage Lending Company & Home Loan Lenders

TPO

Verification, Lien Release Products; Relying on Interest Rate Predictions? STRATMOR Outlook

CAAS, TPO, Tech, LOS Products; Fitch on First American’s Hack; Freddie and Fannie Forecasts

TPO, Anti-Valuation Bias Tools; Retail and Broker News; Interview on Home Equity Levels

Bulk Sales, Best-Ex, Accounting Outsourcing, Verification Tools; FHA and Ginnie News; STRATMOR Tech Survey

LO Technology, Broker PPE Products; Training and Webinars This Week; 3.7% Unemployment

Compliance, CRM, LOS, Servicing, Workflow, Internal Audit Products; Non-QM and Jumbo News

Apache is functioning normally

Related

TPO, Subservicing, Marketing, CRA Products; Training and Webinars; Podcast Interview with Dr. Elliot Eisenberg

Efficiency, AVM, POS Products; MI, Wholesaler, Correspondent News; STRATMOR M&A Interview

TPO and Correspondent, Non-Agency Best Ex, Verification; Equity Figures for Refis; STRATMOR on Customer Experience

Verification, Lien Release Products; Relying on Interest Rate Predictions? STRATMOR Outlook

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CAAS, TPO, Tech, LOS Products; Fitch on First American’s Hack; Freddie and Fannie Forecasts

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TPO, Anti-Valuation Bias Tools; Retail and Broker News; Interview on Home Equity Levels

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Bulk Sales, Best-Ex, Accounting Outsourcing, Verification Tools; FHA and Ginnie News; STRATMOR Tech Survey

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LO Technology, Broker PPE Products; Training and Webinars This Week; 3.7% Unemployment

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Compliance, CRM, LOS, Servicing, Workflow, Internal Audit Products; Non-QM and Jumbo News

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Related

TPO, Subservicing, Marketing, CRA Products; Training and Webinars; Podcast Interview with Dr. Elliot Eisenberg

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Efficiency, AVM, POS Products; MI, Wholesaler, Correspondent News; STRATMOR M&A Interview

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TPO and Correspondent, Non-Agency Best Ex, Verification; Equity Figures for Refis; STRATMOR on Customer Experience

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