Homebuilder confidence weakens as cost concerns mount

As cost and labor concerns continue to grow, homebuilder confidence retreated to 64 points in June, according to the National Association of Home Builders/Wells Fargo Housing Market Index. NAHB Chairman Greg Ugalde said while demand for single-family homes remains sound, builders continue to report rising development and construction costs, with some additional concerns over trade issues.

June 17: AE, LO jobs; private money, commercial products; flood & disaster updates; Quicken Loans settlement

I find builder’s naming policies amusing. Let’s call a subdivision “Hidden Valley” or “Lonesome Pines” when it isn’t hidden or lonesome anymore with 500 homes in it. Let’s pave over peach orchards, an area where hawks hunt, or a field of sage brush and then name roads after them. Maybe they can charge more for a house on a street with a cute name. Builders aren’t fools, and they, appraisers, and homeowners also know that houses with garages have more value. Chicago homes with garages sell for an estimated 38% more than comparable homes without them, per a new analysis from Redfin, adding nearly $47k to the sale price of a typical Chicago home. Nationwide, homes with garages sell for $23,211 more than homes without, which equates to a 12% premium. (And isn’t it great when families have so much stuff it fills the garage and pushes the cars into the driveway!)

Employment

“There’s a big shake-up going on in the mortgage industry. Wholesale brokers are picking up momentum, gaining market share, and simply dominating the mortgage space. Find out what it takes to make the switch from retail to independent at BeAMortgageBroker.com. We can help you take the next steps toward opening your own mortgage broker shop or help match you with an independent mortgage broker in your area. Call us for a free, confidential consultation and continued support throughout the process at 800.229.6342 or learn more at BeAMortgageBroker.com.”

There’s more great news from Pinnacle Home Loans in Northern California. Nevin L. Miller, President, is pleased to announce that Leif Boyd has joined their growing and dynamic leadership team as Executive Vice President of Production. Leif, who has a remarkable legacy of building production, said of his hire, “Pinnacle Home Loans is the new mortgage disruptor in California. I am very excited to be with a Company that offers originators the sharp pricing they need, paired with the service they deserve. In Pinnacle, I see a logical path for loan originators, some of whom are even thinking of becoming a mortgage broker to solve their margin compression problems, to remain in retail with all of its benefits”. Interested branch operators and qualified loan officers are invited to reach out to Leif or Nevin directly.

Congratulations to Joe Thompson of PrimeLending who won the “40 Under 40 Award.” “He goes above and beyond – not just for PrimeLending, but for the entire Houston area community. That’s why Joe Thompson, PrimeLending SVP and Regional Manager of the South Texas region, recently earned a 2019 40 Under 40 Award from the Houston Business Journal. This prestigious award goes to 40 individuals who deliver service beyond expectations in every aspect of their business, and Joe’s leadership, support and guidance made him an easy choice for the award. Joe joined PrimeLending in 2015 as an area manager and was quickly promoted after more than tripling production. Along with production, he also focused on expanding the PrimeLending footprint, helping to add need locations in the diverse, fast-growing market with his recruiting efforts. Way to go, Joe! LOs looking for great leadership never look further than PrimeLending. Contact Bobbi Jo Wiggins to learn more.”

“If career opportunity were an algebraic formula, the formula would be ‘G + C + I = O.’ That’s ‘Growth + Culture + Innovation = Opportunity.’ Quicken Loans® Mortgage Services is

growing faster than any other lender in its space. Our culture is unmatched, as evidenced by the fact that we’ve been on FORTUNE magazine’s 100 Best Companies to Work For list for 16 consecutive years. Our ability to innovate new products, processes and services is what sets us apart. We’re looking to add passionate, smart and creative people to the following roles: Account Executive (Detroit) and Credit Underwriter (Detroit). As America’s largest mortgage lender serving the needs of brokers, regional banks and credit unions, we want to attract the best and the brightest. Is that you? Are you ready to jump-start your career? Check out our job openings.”

Lender products and services

Originators and mortgage executives, here is another industry study giving out a great prize for minutes of your time. All completed will go into a raffle for a $350 Amazon Gift Card! This quick 5-minute survey is focused around growth opportunities in additional product and services. Please complete if you are an active lending executive, manager, or LO. Hurry, this survey closes June 20! Start Here.

Does your organization specialize in private money or are you looking to expand your product offering into this increasingly popular area of lending? Triumph Capital Partners can help you achieve your goals. Triumph Capital, based in Solana Beach, California, has recently hired mortgage industry veteran Brian Seligmiller as its Director of Correspondent Lending for its growing correspondent division. Triumph understands the space and is staffed by industry professionals with almost a century of combined experience. Products include fix & flip, bridge loans, construction lending, commercial multi-family with a rent and hold product on the way. With Triumph’s non-delegated program, correspondents across the country can close in their name and maintain their relationships while adding multi-transaction customers for life and increasing their bottom line. Think Bigger, Lend Better. To learn more contact Brian at Triumph Capital Partners.

Online Commercial Loan Applications, HELOCs, Mortgages, auto, & more. You asked for it and PerfectLO built it. After revolutionizing the residential mortgage process for the past three years with a true virtual online loan interview, PerfectLO updated its software to include all banking loan products. Loan questionnaires are customizable and have a rules engine that can auto create a smart doc checklist. Borrowers can start uploading their financial docs instantly. Manager, Processor and IT access and as well as notifications. Easy to adopt and onboard and its API / web-hooks makes it simple to transfer data to your LOS and CRM. MISMO ready, FNM 3.2 files, disclosures, authorizations, etc., and private labeled. Automate the front end of your business today and Sign up for a live demo. Visit its website for more details, call 800-277-1687, or email them. Perfect Loan Software dba PerfectLO.com

Now hopefully in the rearview mirror

Quicken Loans and the government have come to a resolution over a mortgage lawsuit.

It was determined that Quicken did nothing wrong, and the company agreed to pay $25.5 million for losses involving ‘human error”, plus $7 million dollars in interest.

Fifteen cubits upward did the waters prevail

FEMA has released tens of millions of records from the National Flood Insurance Program (NFIP). The data release includes over 50 million policy transactions from the past decade and information on 2.4 million damage claims dating back to 1970, representing nearly $70 billion in payments. The biggest takeaway is flood insurance claims are piling up across the nation, even in areas far from the shore. Releasing the data is a huge step toward helping scientists, decision-makers, and the public understand how the NFIP operates, where flood damages occur, and what the costs are to the nation. It’s a significant step forward for transparency of flood risk in the United States, something that NRDC, along with other organizations, has been calling on Congress and FEMA to provide for years. It seems that the flood of requests for information has finally broken through.

The House Financial Services Committee sent along H.R.3167, The National Flood Insurance Program Reauthorization Act of 2019, which reauthorizes the NFIP for five years and also includes a number of reforms to increase affordability, improve mapping, enhance mitigation, and modernize the NFIP. This bill was introduced by Rep. Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee. It was passed unanimously by a bipartisan vote of 59 to 0. Let’s hope the full House of Representatives votes on it.

Per federal flood insurance requirements, Wells Fargo Funding has updated its private flood insurance requirements for all loans. Effective July 1, 2019, Complete private flood insurance policy and documentation to validate compliance with the Office of Comptroller of the Currency (OCC) 12 Code of Federal Regulations CFR 22.3. Its Seller Guide has also been updated to clarify that proof the premium has been paid is required for all flood insurance policies.

loanDepot Wholesale/Correspondent’s What’s New Week Beginning June 10th announcement includes information on changes to Broker Compensation, Equal Credit Opportunity Act (ECOA) Policy and Oklahoma disaster announcement update.

Mortgage Solutions Financial issued a revised Announcement 08-19W, in reference to the Nebraska Flooding, Announcement 09-19W regarding the Iowa Flooding Disaster Alert, and Announcement 12-19W regarding the Oklahoma Storms Disaster Alert.

Per FEMA’s addition of Holt county to the existing Nebraska disaster declaration for the incident period of March 9th-April 1st; AmeriHome Mortgage issued a Seller reminder to review its disaster inspection requirements.

First Community Mortgage Wholesale posted a new announcement regarding IOWA disaster declarations and published a Disaster Announcement with updated information on additions to the Oklahoma disaster list.

SunWest Mortgage Company posted information regarding Counties in Oklahoma that have been declared by FEMA as Major Disaster Areas for the Incident Period Date of May 07, 2019 with a Major Disaster Declaration declared on June 01, 2019. The Designated Disaster Area includes the counties of Muskogee, Tulsa, Wagoner. To view FEMA’s recent update, click here: FEMA

Arkansas counties of Conway, Crawford, Faulkner, Jefferson, Perry, Pulaski, Sebastian and Yell have been added to the disaster declaration list for the incident period of May 21, 2019 and continuing. SunWest issued a reminder regarding its flood policy. For loans submitted with an appraisal dated on or before the incident period end date or for those submitted without an appraisal, Sun West will require an interior and exterior inspection prior-to-funding or purchase of any loans with subject properties that are determined to be at risk. The inspection must verify that the property is sound, habitable and in the same condition as when it was appraised.

Capital markets

U.S. Treasuries ended last week on a mixed note, including the 10-year unchanged at 2.09% as market headlines were dominated on Friday by the release of more disappointing data from China. China’s May Industrial Production drastically missed expectations despite posting an increase, representing the slowest growth rate since 2002. U.S. economic data served as a reminder that the U.S. economy remains is relatively strength versus other global economies: total retail sales in May posted a positive figure as the reading was combined with an upward revision to the figures for April; and both May industrial production and April total capacity utilization beat estimates. In Europe, budgeting was the name of the game, with Italy’s Deputy Prime Minister Salvini saying that Italy’s budget for 2020 must include substantial tax cuts; and EU finance ministers progressing toward establishing a eurozone budget, though the overall budget will be determined by EU leaders later this year.

Relative to Treasury yields, mortgage prices (looking at Agency MBS prices) had a difficult week last week, with current coupon spreads versus 10-year swap rate hitting their widest levels since late 2016. Looking across a wide spectrum of securities (Fannie, Freddie, and Ginnie), coupons (pass through rates), and maturities, traders reported that “Retail flows were defensive to close the week.”

Today’s calendar got under way with the June New York Fed Empire State Manufacturing Survey (-8.6, a record decline and the lowest since October 2016). The NAHB Housing Market Index for June is next up, and precedes Treasury conducting their usual T-bill business when they auction $36 billion each of 3- and 6-month bills.

Tomorrow brings the release of May Housing Starts and Building Permits, before the June FOMC Rate Decision on Wednesday, with expectations of no rate change predicted. Thursday sees central bank decisions due from the BoJ, BOE, and Norges Bank, U.S May Leading Economic Indicators and Initial Jobless Claims. The week closes with May existing home sales. We begin today with Agency MBS prices little changed versus Friday night and the 10-year yielding 2.09%.

That Wells Fargo can’t find a CEO yet has this job making the rounds:

Job Opening!

Local bank seeking self-starter CEO to help guide it out of a minor three-year crisis.

Required qualifications:

Desire to grow our business (given the constraints put in place by the Federal Reserve).

Ability to avoid a 100-mile radius of Senator Elizabeth Warren.

Experience with verifying customer approval when opening new accounts.

Recommended but not required:

The ability to parallel park a stagecoach pulled by four horses.

Don’t apply if you’re going to miss work because your band has a gig.

Don’t apply if you’re not going to be able to work weekends because you have a gallery opening.

Don’t apply if you only want to work a few weeks before heading off to Europe.

Don’t apply if you’re the type of person to close the door and cry in your office every day.

Must be able to remember to come back to work after lunch on the first day.

Contact Warren Buffett at BuffDaddy88@gmail.com.

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, “Are You Ready for CECL?” 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.)

BiggerPockets Money Podcast 77: Entrepreneuring Your Way to Financial Freedom With Pete Mockaitis

Guest Pete Mockaitis grew up in the cheapest place to live: Danville, Ill. He watched his mother work her way up the local credit union ladder from teller to CEO, simply by doing more than necessary—repeatedly. He adopted her work ethic, became an entrepreneur, and found his way to early financial freedom. Here’s how.

View the full article: BiggerPockets Money Podcast 77: Entrepreneuring Your Way to Financial Freedom With Pete Mockaitis on The BiggerPockets Blog | Real Estate Investing & Personal Finance Advice. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

7 Weekly Financial Fixes That Take 30 Minutes or Less

habits, productivity

Finances on autopilot? Dedicate 30 minutes a day for one week to bettering your money situation. You’d be shocked how much they can dramatically improve in so little time. No gimmicks, just a simple structure for financial security.

View the full article: 7 Weekly Financial Fixes That Take 30 Minutes or Less on The BiggerPockets Blog | Real Estate Investing & Personal Finance Advice. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

Should You Pull Your Money Out of the Real Estate Market?

Businessman forecasting a crystal ball

Today I’m talking about how to figure out when it’s a good time to pull your money out of the real estate market. I’m going to be perfectly transparent: I think the time is now! Let me explain why that’s the case.

View the full article: Should You Pull Your Money Out of the Real Estate Market? on The BiggerPockets Blog | Real Estate Investing & Personal Finance Advice. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

Contract Assignment 101: The Beginner’s Guide to Wholesaling Real Estate

assign-contract

Contract assignment is when one party transfers a contract’s rights, responsibilities, and benefits to another party. Sound complicated? Get the details (and learn how wholesaling real estate through contract assignment can earn you money) here!

View the full article: Contract Assignment 101: The Beginner’s Guide to Wholesaling Real Estate on The BiggerPockets Blog | Real Estate Investing & Personal Finance Advice. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.