Apr. 3: LO jobs; outsourcing, marketing, broker products; non-conforming & jumbo trends

Anyone traveling near San Francisco may have seen “The Flintstones House” perched on a hill next to the freeway. Neighbors don’t like it. But I guess my mind is officially warped as all I can think of is, “How does an appraiser handle this oddity?” Speaking of odd things, California is opening an office in Boise, Idaho to help its former citizens adapt to Idaho. Yup, folks are leaving CA due to the 13% state taxes, congestion, and political trends. (Besides, lots of folks from all over the nation are heading to Idaho.) Yet back in CA, it is growing, and near Sacramento there are plans to build another 11,000 homes.

Employment & transitions

Arriba! Arriba! Academy Mortgage recently returned from the company’s President’s Club and Executive Club Sales Conference in Los Cabos, Mexico. Old friends met new faces, as Academy welcomed more than a dozen first-time attendees. President James MacPherson facilitated the sharing of best practices in the General Session, before attendees departed for popular off-resort excursions like deep-sea fishing, whale watching, zip-line adventures, ATV trips, and sunset cruises to see the famous Land’s End Arch. Every conference’s Awards Dinner has a different theme, and pirates abounded at this year’s event to celebrate their mateys’ achievements in the previous year, including the presentation of the Duane Shaw Achievement Award, Academy’s highest honor, to Sales Manager Tera Davis. Watch a recap video of Academy’s Los Cabos Sales Conference. Academy is headed to Israel and Oahu in 2020. Contact Chad Melin, VP of National Business Development, if you are interested in joining.

Sales coaching can change the trajectory of a loan officer’s career. Ask Movement Mortgage LOs Tiffany and Joseph Spell. Now perennial members of Scotsman Guide Top Originator lists, the Spells worked with Movement National Director of Sales Coaching Tim Davis to transform their business, going from rock bottom to President’s Club in just two years. Watch their story here and learn more about how Movement is committed to empowering both leaders and originators with tools like coaching, technology and marketing to increase business at MovementLO.com.

PRMG retail is seeing tremendous growth as it expands its national footprint by opening 7 new branches during the month of March! Along with the drive and ambition to bring the American Dream of Homeownership to all cities across the country, PRMG has now opened its doors in Stuart, FL; San Pedro, CA; Burnsville, MN; Dadeland (Miami), FL; Annadale, VA; Thousand Oaks, CA; and Fairfax, VA. Ranked No. 1 for mortgage companies employing over 500 employees by Mortgage Professional America (MPA), Voted TOP 5 of the 50 Best Companies to Work for in America, NMP Visionary Organization 2017, CAMP Corporate Affiliate of the Year 2017, TOP 25 of 100 Mortgage Companies in America and MORE! PRMG is Built by Originators for OriginatorsTM and is devoted to continuously growing their retail platform. If you are a Motivated Loan Originator who wants to be Progressively Better, contact Chris Sorensen (909.262.0452).

Lender Price announced that David Colwell, EVP of business strategy, and Linn Cook, SVP of marketing and sales, are joining its management team. David will oversee all aspects of revenue generation, strategic planning, business partnerships and financial forecasting. Linn “will draw on his successes in credit reporting, PPE and mortgage LOS technology to drive revenue and increase visibility of the Lender Price brand.”

Lender products and services

Home Point Financial has just enhanced its proprietary Home Point Edge Non-QM lending platform with the introduction of its new AUS Express product. With the arrival of AUS Express, brokers can leverage DU findings for self-employed borrowers using bank statement income for qualification purposes. The Edge AUS Express product has a max LTV of 85% LTV up to a $2MM loan amount and is capped at 50% DTI. The Home Point Edge suite of Non-QM products continues to provide extremely competitive rates, a 95% Jumbo option w/ no MI for well-qualified full doc borrowers, 90% purchase options for self-employed consumers, asset utilization loans, non-warrantable condos and so much more. To find out how you can get an Edge on the competition or become a Home Point partner, click here.

Stearns Wholesale has an unrelenting commitment to providing its brokers with a full range of products and superior service, including the addition of CalHFA loan program. As an approved lender with CalHFA, Stearns is well-versed in the benefits of each mortgage and the program requirements. Stearns continues to add new product offerings to help you grow your business. Hear from one of Stearns’ own: RVP, Erin Futterer talks about the importance of a support system. Watch here: https://www.youtube.com/watch?v=fxEixDHGCUs

Flagstar Bank aims to make brokers more competitive than ever with enhancements to its pioneering Loantrac LOS, partnerships with industry leading POS/LOS systems provider Arive, and integration with Calyx. Updates to Loantrac 2.0 improve speed and make working with the platform more intuitive, especially at closing. A new customizable dashboard allows brokers a holistic view of their pipeline, and a seamless document management and delivery system simplifies collaboration. Flagstar’s Arive and Calyx integrations honor its intention to be platform agnostic and deliver on broker operational efficiency. Flagstar plans to expand its integration with Calyx as part of the NAMB All-In solution, while the Arive partnership allows for an all-digital mortgage “ecosystem” experience with a single sign-on, adding ease and efficiency. All of Flagstar’s technology improvements and strategic partnerships are intended to strengthen brokers’ competitive advantage in an increasingly dynamic market.

Stop Losing Money in 2019! With the mortgage industry becoming increasingly difficult to survive let alone thrive, companies are in search of new marketing strategies to compete in this new era of credit. “The Decision Science team at BBM has created an advanced suite of propensity data models that help professional origination marketers identify homeowners who are actively in the market for FHA, VA, Jumbo and Non-Agency loan options. Our average loan amount for active FHA/VA and Non-Agency applications exceed $350K and gross top line revenue of nearly $15,000. If you’re marketing is not reaching these levels of performance than let BBM show you how a targeted marketing strategy focused on propensity modeling and targeted revenue opportunity can change the trajectory of your company.” For more information about BBM Marketing Services and about becoming an approved origination partner; please contact Bill Senteno and visit www.bbm.company.

Name changes

ISGN Solutions recently changed its name to Sourcepoint, a significant step in the brand’s evolution. It’s also transforming into a “product”-led solutions company from ideation through conceptualization, creation, delivery and education. For example, Sourcepoint’s Business Process Outsourcing services utilize a flexible model that allows lenders to select solutions based on their unique challenges and operational requirements. Today, Sourcepoint’s global solutions support lenders across Retail, Consumer Direct, Wholesale, and their Correspondent channels, along with post-close and shared services functions. Sourcepoint also supports forward and reverse servicers throughout the loan lifecycle, from loan-boarding, to cash, investor reporting, through loss mitigation, claims, foreclosure and bankruptcy along with other functions. Sourcepoint’s solutions span the mortgage lifecycle and are delivered through an onshore, offshore or hybrid delivery model that’s designed to meet lenders and servicers needs, resulting in increased compliance, customer satisfaction and profitability. Learn what Sourcepoint can do for your lending operation here.

Wholesaler and retailer Ethos Lending is transitioning to One American Bank and its third-party origination channel will be operating under One American Mortgage. “All of our current systems and technology will continue to operate as is and just be transitioned to One American Mortgage. Starting April 2, 2019, please login to www.oneamericanmortgage.com. You will be able to access your current loans with Ethos and all new loans with One American Mortgage in the current Ethos Lending Broker Portal. The website will just be re-branded to One American Mortgage. All current float loans will have to be resubmitted starting Tuesday, April 2, 2019, to One American Mortgage. All Locked loans as of Monday, April 1, 2019 will fund with Ethos Lending.

Jumbo & non-conforming trends

Without a 52 basis point gfee built in to pricing, of course jumbo or portfolio product rates will be more attractive for some programs than conventional conforming. Let’s see who’s doing what.

loanDepot Wholesale’s proprietary Jumbo Product Suit does not require investor approvals or 2nd signature underwrites. View its Products Page. It does not require investor approvals or 2nd signature underwrites. Click here to view its products page and then contact Carla Meyers for more details.

The LoanDepot Wholesale/Correspondent weekly “what’s new” announcement for March 8th includes topics related to expansion of the Jumbo Advantage program, its new program Credit Advantage, 4506T reminders and Broker Compensation of $0.

PRMG Mortgage retired its Silver Medal Jumbo product. Any loans that were locked under this program will be able to be funded but no extensions will be granted. It is now offering in-house delegated underwriting on the Platinum and Diamond jumbo products. The Platinum and Diamond jumbo products are now completely delegated up to the maximum loan amount and will only be subject to an in-house second level review.  As a reminder, all jumbo and non-conforming products are underwritten by the corporate jumbo/non-conforming underwriting team.

Effective April 16 Wells Fargo Funding is updating its requirements for alimony and separate maintenance (payments and income) on Non-Conforming Loans.

The previously announced implementation date of Wells Fargo Funding’s policy expansion allowing co-ops and second home cash our refinances for non-conforming CCU loans has been pushed out to an effective date of March 18th, 2019.

Late last year Wells Fargo discontinued its Non-Conforming Preferred Payment Plan product line(s). As a result, these products were no longer be offered in the Optimal Blue system. Customers utilizing this content for proprietary products have six months from 10/29/2018 to reconfigure eligibility/adjustment sourcing. The preferred payment plan feature/pricing is now incorporated into the standard non-conforming products. So Wells is no longer requiring enrollment in the Preferred Payment PlanSM to receive improved pricing and reduced interest rates on Non-Conforming Loans. All pricing and the borrower’s interest rate will be the same whether enrolled in the Preferred Payment Plan or not. Wells continues to encourage borrowers to set up automatic withdrawal for their Loan payments.

Plaza Wholesale improved the CLTV adjustments for FICOs < 760 on its Simultaneous Closed-End Second Lien program, effective for locks on or after March 5, 2019. Also, new rate adjustments have been added for DTI > 43%. Plaza also announced the removal of LTV and Reserves price adjustments on its AUS Non-Conforming program for new locks effective immediately. The result is improved pricing for all loans with less than 16 months reserves and no change to loans with greater reserves.

MWF borrowers are no longer required to enroll in the Preferred Payment Plan in order to receive improved pricing on an MWF Jumbo 2 loan.  Improved pricing is available on all MWF Jumbo 2 loans without enrolling in the Preferred Payment Plan option.

The mortgage market might have borrowers feeling limited especially with higher priced homes. Angel Oak has an array of options including its Platinum Jumbo product which now offers LTV to 95% with no MI. Visit the Angel Oak website for more information.

The mortgage market might have borrowers feeling limited especially with higher priced homes. Angel Oak has an array of options including its Platinum Jumbo product which now offers LTV to 95% with no MI. Visit the Angel Oak website for more information.

Conforming high balance loan amounts are doable using LHF’s Jumbo Elite Product. Contact Mark Sheridan at 925-246-2396 for details.

United Wholesale Mortgage has introduced its Jumbo Bank Buster program available on loan amounts up to $1.5 million and an 80% LTV, for borrowers with 700 minimum FICO. It can be used for primary and second homes and on purchases or refinances.

Bank of America is offering jumbo loans up to $5 million.

Capital markets

U.S. Treasuries took a pause on Tuesday from their recent volatility with the 10-year closing yielding 2.48%. Sure, as always there was some price movement between coupons, securities, and maturities, but nothing of great consequence. Looking at rate sheets, mortgage rates are now near their lowest levels in over a year with the spring-time home buying season under way.

This morning we learned that last week’s retail apps were up over 18%, with refis up 39% hitting their highest level in over three years. (Purchases were up 3%.) The MBA reported that the average refinance loan size was $438,900, a new survey record, and the refi share of mortgage activity increased to 47.4 percent. Interestingly the adjustable-rate mortgage (ARM) share of activity increased to 9.5 percent of total applications.

Besides apps we’ve had ADP employment (+129k, weaker than forecast). ISM nonmanufacturing PMI will be released at 10AM ET with both the headline figure and Business Activity components expected to decline from the previous reading. We have a decent amount of mid-week Fed speak, with Atlanta Fed President Bostic, Richmond’s Barkin, and Kansas City’s George, and Minneapolis President Kashkari all taking the stage at some point today. We begin today with agency MBS prices worse a solid .125 and the 10-year yielding 2.51%.

A tax attorney defended case of tax evasion for an affluent client. He devoted over a year to the case, familiarizing himself with every loophole and angle of current legislation, and made a brilliant argument before the court.

His client was called out of town when the jury returned with its verdict, a sweeping victory for his client on every count.

Flushed with victory, the lawyer exuberantly sent an email to his client, “Justice has triumphed!”

The client immediately emailed back, “Appeal at once!”

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Changes in the role of the LO and Their Compensation.” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.

Rob

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are hundreds of mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2019 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)