Homeowners with debt are willing to go into more debt to renovate their home

Nearly two-thirds of homeowners who have $10,000 or more of unsecured debt say they are planning on doing renovations to their home in the next five years, according to a survey from Freedom Debt Relief. Despite those plans, approximately 60% of homeowners say they can’t afford the necessary renovations to their home, but are willing to go even more into debt to make it happen. 

Aug. 14: Management, Ops, LO, AE jobs; broker, non-QM products; policy & procedure trends

Data compiled by the American Bar Association shows that average lawyer pay has nearly doubled since 1997! Mortgage loan originators enjoy comparing themselves to attorneys, despite the formal educational differences, the time involved with case work stretching out years, and the initial expense of law school most attorneys attend after college. And then there’s the bar exam with its “not a sure thing” passing rate. How about an exam for homebuyers before a sale can be approved? Spain has one. Also known as the Housing Credit Law, “it should greatly diversify what is on offer for homebuyers while providing better protections.” How about an exam for borrowers, the first question being, “Do you know that you must pay back a loan?” Okay, I’ll stop being snippy.

Jobs & hires

11 Mortgage is looking for champion AEs in TX, FL, GA, WA, AZ, and Northern CA. A Fannie Mae and Freddie Mac Seller/Servicer and Ginnie Mae issuer, approved in 46 states, 11 MORTGAGE is a price leader and offers a full line of products which include VA, Co-Ops, Non-QM, CalHFA, USDA, Jumbo, to name a few. 11 MORTGAGE is taking mortgage broker’s & banker’s experience to a whole new level! What makes us different? No overlays. None! 4hours CTC to Docs, guaranteed! 11 minutes funding turn time, no joke! No AMC used, ever! Every approval is called out, and our underwriters will go over each condition on every loan. Our pricing ranking in Loansifter is generating daily leads in untapped territories. 11 MORTGAGE is committed to ensure that all AEs become successful, and our records show that 80% of our AEs are funding > $5mm. If you are ready to work for a company who will not jam a bunch of AEs in your backyard, contact Thomas Michel, EVP of Wholesale, today!”

A fast-growing, up-and-coming Texas Correspondent Lender seeks an experienced Underwriting Manager. Position is a once-in-a-lifetime opportunity to grow your career and collaborate with sales and operations leaders. Ideal candidate is designated FHA & VA, with minimum 5 years’ experience as an underwriter. Underwriting Manager is responsible for credit policy excellence and operations efficiency. If you are a leader with the skills to build a team of elite underwriters, email your confidential resume to Anjelica Nixt.

“Would you like to join a well-capitalized, independent mortgage company with a National presence? We are looking for an experienced and highly motivated Consumer Direct Sales Manager who can bring a team of at least 10-15+ MLOs to be a part of an incredible strategic growth opportunity. We offer highly competitive rates and a diverse product offering that includes Conventional, USDA, VA, FHA, Non-QM, and 2nd Lien products. We are offering a strong compensation model (with over-rides) coupled with access to market leading technology platforms including Encompass, Velocify, Dial-IQ, Automated Email Marketing and a Digital Mortgage Application powered by Blend. Hybrid MLO lead delivery model includes a mix of portfolio leads, aggregator, rate table and organic lead sources. We are also offering a strong foundation and growth opportunity for the right team through our additional portfolio partnerships. Pipeline buyout or portfolio bridge may be considered. Don’t miss out!” Interested candidates please contact Anjelica Nixt and specify this role.

There is a lender that is emerging as a national player in Retail Mortgage banking. Presently, Pacific Residential Mortgage (PacRes), headquartered in Lake Oswego, Oregon is a dominant Pacific Northwest company. With soon to be announced branches in Arizona, Texas and Montana, more will be added across another 15 states. PacRes is a 15+ year old company, with retail offerings for both P&L and corporate branches, producing and non-producing branch managers seeking to expand aggressively. As a GSE approved servicer, PacRes underwrites to DU guidelines, and is one of the most stable and well capitalized Mortgage Lenders in the United States. New opportunities to run production for target markets and to add the next billion in production are available. For Regional Production Leaders, Branch Managers and Loan Officers, e-mail: JoinPacRes@pacresmortgage.com. Or check out PacRes’ Ad for consumers and to learn more about how PacRes Approves Dreams Daily, by going to https://pacresmortgage.com/recruitment.

For the 2nd year in a row Caliber Home Loans, Inc. has been recognized by Victory Media as a Military Friendly® Employer 2020. This designation measures a company’s commitment to serving the military and veteran community thru charitable work, hiring and career advancement. Caliber has also received recognition for its VA loan production. Caliber ended 2018 as the #2 non-bank purchase lender in the country (IMF) for VA loan volume. As a leading VA loan lender, we’re committed to assisting our active military and veterans in every way possible – from assistance with home financing to our community outreach initiatives. We’re looking for a few good loan officers and operations staff to join the ranks of our sales organization! Contact Jeremy DeRosa or visit our website to learn more.

AXIS Appraisal Management Solutions, a leading national provider of collateral and appraisal services, announced the addition of Jeff Briggs to the AXIS Team as Midwest Regional Sales Manager. Jeff brings 25 years of mortgage lending and appraisal experience to his new role at AXIS, and stated, “AXIS is a company that aligned with my belief in high quality and ethics when we worked together as lender and vendor. I couldn’t be more excited to be part of their team.”

Lender products and services

As more and more mortgage lenders turn to technology to enhance their business, digital mortgage platforms are generating quite a buzz. But deploying new technology is daunting, and many lenders worry about how to see a positive impact as quickly as possible in their organization and increase their ROI. A strategic plan for implementation and adoption is critical for success. A new eBook from Maxwell, The Digital Mortgage Implementation & Adoption Guide,” provides a thorough and unbiased guide of tips and best practices to maximize your success when launching digital mortgage technology. A great read for anyone looking to better incorporate technology into their workflow today. No form required and an exclusive to Rob Chrisman readers today. Get your copy here!

Informative Research expanded its credit services and integrated with both SimpleNexus and Floify in the past month. SimpleNexus users now have access to Informative Research’s TriMerge Credit Report and their popular SoftQual report. SoftQual is an effective pre-qualifying solution that enables lenders to collect all the information they need to match applicants to the right loan options via a “soft” inquiry. This means that SoftQual inquiries are not recorded in applicants’ credit histories so it cannot be seen by competing mortgage firms that might try to undercut the original lender’s loan offer. For the Floify integration, users can now order a dual or TriMerge Credit Report viatheir existing Informative Research account once they convert a loan application into a live loan; or on-demand directly from their Floify account. To learn more about these integrations, feel free to contact an Informative Research team member here.

“Vacation Rental or Long-term Rental? Visio Lending is the nation’s leader in Non-QM loans for buy and hold SFR rentals. 30-year terms, buy ups and buy downs on rates and pre-pays, I/O available. No personal DTI or tax documentation. Through our top-notch Broker Program, brokers are able to earn up to 3 points per closed loan, Visio always pays the broker the first 1%. Additionally, Visio Broker can count on a designated Account Executive and in-house processing.”

One warehouse lending organization gets noticed in the marketplace for doing things the right way. ResX Warehouse Lending is a division of Connecticut-based United Bank, a respected commercial lender with a long track record of building long-term relationships with its clients. They’re not new to the warehouse lending business, but if you haven’t heard the name yet, it’s only because they’re not promoting themselves with every new trend or fad to hit the market.  These are serious experts looking to build relationships with clients like you who are focused on sustainable growth…one relationship at a time. ResX Warehouse’s clients rave about the lender’s proactive approach. And that expertise is provided by seasoned, top-level professionals. Customers also love their commitment to delivering more effective and efficient processes. Combined with United Bank’s full-service array of products and resources, ResX is the ideal platform for the correspondent focused on real growth. Learn More.

Simplify your underwriting process with Loan Product Advisor® asset and income modeler (AIM). Through the expertise of third-party service providers, AIM automates the manual processes of assessing borrower assets and income. AIM reduces the burden of traditional documentation, speeds up the loan origination process and helps you close loans faster. Freddie Mac is working hard to bring you solutions that create efficiencies for your business and improve the borrower experience – giving you a competitive edge. These capabilities are available now. Gain greater efficiency in your underwriting processes with AIM – get The Freddie EdgeSM.

Stearns Lending continues to invest in the mortgage broker channel through innovative technology that reduces clicks and improves the overall client experience. Our latest enhancements include the ability for our clients to resend disclosures to the borrower directly out of SNAP 2.0 and a more streamlined way to track Change of Circumstance requests. Not to be outdone, our Non-Delegated Correspondent channel has developed an end to end solution where our Sellers can initiate disclosures, generate a CD and track the closing package being sent to the borrower. If you’re interested in partnering with a lender that combines the power of people and technology please reach out to Wholesaleleadership@stearns.com.

Policy and procedure updates from around the biz

In the secondary markets, investors prefer lenders to have solid guidelines that they follow. Of course lenders are always seeking ways to streamline loan processing without sacrificing quality. Let’s take a random walk on some of the changes being made out there.

Wells Fargo Funding added additional enhancement to eligibility messages and price adjuster description on Best Effort Non-Conforming Loans, effective August 26.

AmeriHome Mortgage partners should note that loans submitted through the Non-Delegated Underwriting Program, a new Loan Submission Form will replace the existing Non-Delegated Contact Information Form available until 8/19/2019. Use of the new form will be required beginning 8/19/2019. And AmeriHome’s Purchase Advice and Wire Details (Purchase Advice) changed last month. The pre-wire Purchase Advice will be provided the morning of, rather than evening before, the scheduled wire and will no longer be titled “preliminary.”

U.S. Bank Correspondent/HFA posted Seller Guide 2019-035 which includes information on Maximum TLTV/LTV on FHA loans with Community Seconds, Certification of Revocable Trust, Fannie Mae’s eligibility matrix and more.

The Fifth Third Correspondent Underwriting Manual has been updated with Private Flood Insurance eligibility guidelines. Private flood insurance policies must comply with the flood rule:

Private flood insurance policies that include the Compliance Aid Policy Provision (“This policy meets the definition of private flood insurance contained in 42 U.S.C. 4012a(b)(7) and the corresponding regulation.”) are eligible. Private flood insurance policies without the Compliance Aid Provision must meet the rule’s mandatory review requirements. Private flood insurance policies that the Correspondent accepted under the flood rule’s discretionary review provision are ineligible. Loans in special flood hazard area with a private flood insurance policy that do not meet these requirements are ineligible.

FCM posted Bulletin 2019-33 – Wholesale Guideline Updates. Information contained in the bulletin include Well & Septic Systems, Net Tangible Benefit Test, VA Laon Seasoning, Contributions by Interested Parties and more.

Mortgage Solutions Financial posted Announcement 21-19C regarding the UDM Procedure and Guideline Updates.

Capital markets

U.S. Treasuries continued their recent volatile manner in the second session of the week, retreating on Tuesday, including the 10-year closing +4 bps to 1.68 percent after the release of a hotter-than-expected core CPI for July, though the print shouldn’t be enough to quell calls for a September rate cut. The real headline news came later in the morning after it was reported that the office of the U.S. Trade Representative recommended that tariffs on cell phones, laptops, video game consoles, certain toys, computer monitors, and certain apparel items from China, $80 billion in total, should be delayed until mid-December. And Hong Kong continued to make headlines, where riot police confronted protesters at the city’s airport.

Today’s light calendar is underway with mortgage applications increasing 21.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending August 9. Refis were up 37 percent from the previous week to its highest level since July 2016, and was 196 percent higher than the same week one year ago. Purchase apps were up slightly. Borrowers are not sitting idly by. Fannie Mae 30-year prepayment speeds rose 29 percent in July, and at current rates a majority of borrowers have an incentive to refinance. The 30-year fixed mortgage rate decreased eight basis points during this past week’s survey period to 3.93 percent, the lowest level since November 2016, now more than 80 basis points less than the beginning of this year.

The only other releases due out this morning are July import/export prices (both +.2%). We begin the day with agency MBS prices better .125-.250 and the 10-year yielding 1.61%.

This morning I head to upstate Michigan for the MMLA conference. Michigan humor? There’s plenty.

If you consider it a sport to gather your food by drilling through 18 inches of ice and sitting there all day hoping that the food will swim by, you might live in Michigan.

If you’re proud that your region makes the national news 96 nights each year because Pellston is the coldest spot in the nation, you might live in Michigan.

You know several people who have hit a deer more than once.

If your local Dairy Queen is closed from November through March, you might live in Michigan.

If your town has an equal number of bars and churches, you might live in Michigan.

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, “Residential Lending, Banks, and Market Share.” 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.)

Krebs says the SEC is investigating First American data exposure

The SEC is reportedly investigating an alleged security incident involving First American’s website that may have exposed more than 885 million records related to real estate closings and mortgage fundings going back to 2003, cybersecurity expert Brian Krebs said on Monday. Ben Shoval, a Seattle real estate developer cited by Krebs in May as the person who alerted him to the exposed data, said he received a letter last week from the SEC’s enforcement division stating it was investigating.

Eisman, famed for shorting subprime, explains why he’s betting against Zillow

Steve Eisman, the Neuberger Berman portfolio manager who famously profited during the 2008 collapse of the subprime mortgage market, criticized Zillow’s business model in a CNBC interview. Eisman disclosed he’s shorting the stock, which means he makes money if the share price declines. “Zillow has one of the most flawed business models I’ve seen in a very, very long time,” Eisman said.