July 16: Ops, AE, LO jobs; broker, cost analysis, audit, credit tools; CFPB’s legal action; lots of activity in the capital markets

I was on the phone yesterday with my psychic who told me, “You will live a long and healthy life if you abstain from anything that brings you joy.” Okay, I don’t really have a psychic. Besides, who could predict that an event in 2021 would already be cancelled: the Rose Parade! Five months ago what fortune teller was predicting this mess? Here’s the latest volume prediction from the MBA. And what lender was predicting they’d be cutting back “peripheral” products from their product lineups in an effort to focus on funding the most loans in the shortest amount of time? No LO or underwriter wants to be bogged down originating a loan in an obscure program when there are five cookie-cooker deals in the hopper. It’s a good time to be an originator. The historic low rates and the ensuing refinance windfall have been a welcomed sight in these pandemic times, but this “perfect storm” will eventually dissipate. But when? And when it does happen, the originators who survive, and thrive, will be those who continued to build referral relationships throughout the refinance boom. In 2019, 46 percent of purchase loans came via a real estate agent referral, so it quite literally pays to keep referral partners happy. In this month’s MortgageSAT Tip, STRATMOR Group’s Mike Seminari discusses how originators can find ways to invest in referral partner relationships in a refinance-driven market.

Employment & moves

Parkside Lending is proud to welcome Dave Ryan as EVP, National Operations, Robert Meachum as EVP, Servicing, Arlene Lam as VP of Quality Control, and Jay Royce-Procopio as VP, National Underwriting. Dave, Robert, Arlene, and Jay are proven leaders in their respective areas of expertise and a great fit with Parkside’s culture. The Power of Caring goes beyond typical loan processing. Our Community Hero program, focused on helping those on the front lines during COVID-19 has been a huge success, saving those borrower’s a total of over $1,000,000 in loan fees. If you are an Underwriter, Customer Service Representative, Doc Drawer or Closer looking to become a team member at a growing, innovative and caring company, please send your resume to Gordon Maxwell, with the job title in the subject line and experience the Power of Caring that Parkside Lending provides our customers and employees.

We Care! Home Point Financial’s philosophy starts at the top with our CEO, Willie Newman, and permeates every part of our business. Our immediate response to the ongoing COVID-19 pandemic is an example of We Care in action. Home Point understands the stress of COVID-19 goes well beyond remote work, constant childcare, and homeschooling, so we donated $500 to any Associate in need – with absolutely no questions asked. In less than one week, Home Point raised over $57,000 to support Associates experiencing financial stress, such as a spouse laid off or supporting extended family. Through all of Home Point’s We Care programs, we’ve provided more than 14 million annually to our Associates. We understand these are challenging times. Come join our family and we’ll support yours. We are hiring over 800 positions this year, and you can apply here or send your resume to John Eite.

Originators… how many applications have you had in the last twelve months for clients who couldn’t qualify? Multiply that by 90%.  What’s your number? If that many clients returned to you today, credit-ready and motivated to close, what would that do for your business? Last spring, Thrive Mortgage rolled out the Thrive4Home initiative, an incubation process centered on educating credit-challenged consumers. “Not only do we excel at conforming, govie, construction, and reverse production, we also help those who felt they were out of options discover the pride that comes with responsible homeownership,” stated Randell Gillespie, National Sales Director. Steve Ferguson, Director of Homeownership Initiatives, added, “The greatest value to consumers is having a lender willing to stand by them throughout the process step-by-step. We tell them it’s not a matter of ‘if’, it’s a matter of ‘when’.”  To learn more about Thrive Mortgage, contact Jamal Chubb or Josh Harvith.

Lender & broker services and products

Caliber Home Loans CEO, Sanjiv Das, is participating in the CEO roundtable at the National Association of Minority Mortgage Bankers of America (NAMMBA) ‘State of the Industry’ town hall series, The Color of COVID. Sanjiv will discuss the impact COVID-19 has had on communities of color and solutions that the mortgage industry can implement to keep people in their homes. “At Caliber, we help our customers at all stages of home ownership. Ensuring these communities maintain a healthy home ownership rate in the coming year is vital to our industry. You can register for the webinar which begins at 1:00 p.m. ET, Friday, July 17th. We hope you can listen in!”

A new post on Maxwell’s blog from one of their product managers, Josiah Feuerbacher, details how the company thinks about the evolution of their digital mortgage platform and, most importantly, what that means for lenders in today’s lending climate. This quick, 3-min read will give you a peek into what Maxwell’s got up their sleeve in 2020 and in the future. Check it out here. While you’re there, check out the other great posts on their blog (and don’t forget to subscribe).

Sales Boomerang notifies mortgage lenders when someone in their database is ready for a loan. ‘Look at the opportunity cost you have by not having Sales Boomerang. Last year we closed over $72M in loans that we would have lost from not having Sale Boomerang.’ (Stephen Barton, Eustis Mortgage) ‘In the first 4 months we took in $180M in applications and we have about 100 LOs. That is a significant impact to our business. My top performing LO attributes 25% of her business to Sales Boomerang alerts.’ (Katherine Campbell, Assurance Financial) ‘Sales Boomerang gives us a conversion that is 2 ½ times better than our normal conversions.’ (Tim Lewis, Castle and Cooke) The numbers speak for themselves: 20x Avg. ROI, $240 Avg Cost Per Acquired Loan, 10-20% Avg Lift to Loan Volume. Want to see exactly how much you lost this year? Request your report today. We will show you which competitor took your deal, what was the loan amount, what type of loan it was, the term and much more.”

ReadyPrice Launches Today! The newest wholesale mortgage technology makes it even easier for lenders to get more business from their brokers. Wholesale brokers can easily search your rates, complete FNMA underwriting, and deliver approved loan files directly to you with the click of a button. In addition to the improved process flow for your brokers, ReadyPrice opens up a new, low-cost marketing channel to put your rates in front of growing firms across the nation, as well as provide them with simple onboarding integrations to get new customers up and running with your AEs even quicker. For more information on becoming a ReadyPrice Lender visit www.readyprice.com/lenders and schedule a call with the ReadyPrice team today.

Quickly identify loans in forbearance, deferment, or impacted by natural disaster: Factual Data® is offering Innovis Credit Reports at NO COST through 2020. “After passage of the CARES Act, we were inundated with calls from our customers wanting to know if loans were in forbearance,” said Factual Data CEO Ken Viviano. “Innovis credit reports from Factual Data show forbearance, deferment or natural disaster comment code reporting right on the tradeline throughout the origination process. The reports can also help lenders monitor other loan payment activity, like auto loans.” At Factual Data, our goal is to help the lending community and secondary markets during this critical time, by eliminating friction in the process and providing clear access to data and data furnisher reporting quickly. For more information, please visit factualdata.com/forbearanceoffer. Follow us on social media at LinkedIn for the latest updates!

Does the following phrase look familiar? “Because your organization was named as the Servicer on 1,000 or more MINs [on the MERS System] on March 31st, you will need to select an external third-party reviewer that is not affiliated with your organization.” If so, MQMR can help. Deadlines come up quickly, and your MERS Annual Audit Report is no exception. Thankfully, there is no need to wait until the last minute, as your Annual Audit Report may be submitted anytime between now and December 31, 2020. Turn December into a day at the beach by starting your MERS QA Audit in July. Click here for more information or to schedule a call to discuss your MERS Annual Audit Report options with MQMR.

Attracting and converting borrower leads takes time, money, and an investment in technology. That’s why Union Home Mortgage turned to the Mortgage Coach and SimpleNexus integration. In the first 90 days of the implementation, Union Home Mortgage delivered over 20,000 personalized Mortgage Coach Total Cost Analysis presentations from leads created in the SimpleNexus consumer portal. The result for Union Home Mortgage was an increase in completed loan applications and fewer abandoned loans. In addition, they realized faster commitments leading to more closed loans. Join us on July 21, 12 pm CST to get a first-hand look at how this integration can go to work for you. Register now:  https://bit.ly/2CcPoKR.

In three short months, QLMS added another 1,000 partners to its network, which is now 8,000 strong – representing roughly 45,000 passionate LOs and processors across the country. A broker’s superpower is choice, and the very best work with numerous strong lenders that give their clients the best price, product, and operational excellence. It’s clear from this incredible increase in partners that the community sees tremendous value in having QLMS in their lender arsenal. To work with QLMS and become Stronger Together, click HERE and you can be approved and writing loans in as few as 24 hours.

CFPB in the news

The Consumer Financial Protection Bureau (CFPB) officially sued Chicago’s Townstone Financial for violations of the Equal Credit Opportunity Act (ECOA). Townstone Financial, a three-person mortgage company in Chicago, is being charged with making statements during marketing ventures, including weekly radio shows and podcasts, that illegally discouraged prospective African-American applicants from applying to Townstone for mortgage loans. Paragraphs 41-43 should be read by anyone in marketing.

Capital markets

MIAC Capital Markets Group is representing a seller of $5.27 Billion FNMA MSR, a highly capitalized institution who is liquidating its mortgage exposure. The portfolio has a nationwide footprint, an average loan size of $117k, weighted average rate of 4.08% and a weighted average loan age of 53 months. Bids are due 7/21/20 at 5PM ET. For additional information including the offering memo and detailed loan data, please contact your MIAC sales representative at 212-233-1250 or $5.27 Billion FNMA MSR.

Yesterday was more about global news, whereas today is more about economic releases. The Treasury yield curve steepened yesterday, and equities were in rally mode, as a coronavirus vaccine trial injected some optimism into the market. On the geopolitical front, President Trump signed an executive order to end Hong Kong’s preferential treatment and said that he is not currently interested in continuing trade negotiations with officials from China. He did restrain from imposing sanctions at this time. The 10-year yield ended the day +2 bps.

There were a couple economic releases of note after the commentary was published. The Federal Reserve’s July Beige Book observed an increase in consumer spending across all districts, though spending on restaurant services, hospitality, manufacturing, construction, and demand for professional services all were weak compared to last year. A trend you are about to see. Total industrial production increased more than expected in June following an increase in May. The capacity utilization rate improved in May, but fell at an annual rate for the whole of Q2 that marked the worst downturn since the end of World War II. The Empire State Manufacturing Survey beat expectations in July, and import prices increased at a higher rate in June than in May.

It’s already been a busy morning. In Europe, the ECB was out with its latest monetary policy decision, and ECB President Lagarde’s press conference is currently underway. We’ve also had more bank earnings of interest, this time from Morgan Stanley and Bank of America. As far as economic releases go, weekly initial claims for the week ending July 11 (1.3 million – yikes!), continuing claims for the week ending July 4 (17.3 million). Remember, the last expanded unemployment checks from the Congressional bailout providing temporary income support to the unemployed go out July 25. The loss of those checks will mean a massive income hit that, due to America’s failure to contain the virus, private sector spending will be unable to replace. Additionally, all kinds of moratoriums that were put in place on things like evictions and foreclosures are expiring soon.

Rounding out the early releases, June Retail Sales (strong at +7.5 percent), ex-auto (+7.3 percent), and July Philadelphia Fed Survey (24.1). Later this morning brings May Business Inventories and the July NAHB Housing Market Index. The NY Fed will again conduct three FedTrade purchase operations totaling up to $5.9 billion including $2.5 billion UMBS30 2 percent through 3 percent and $868 million UMBS15 2 percent and 2.5 percent. In other Fed-related events, there will be three Fed speakers (New York’s Williams, Atlanta’s Bostic, Chicago’s Evans), and the Desk will report on MBS purchases for the week ending July 15 in the afternoon. We begin the day with Agency MBS prices better/up a few 32nds and the 10-year yielding .61 after closing yesterday at 0.63 percent.

2014: Didn’t jog.

2015: Didn’t jog.

2016: Didn’t jog.

2017: Didn’t jog.

2018: Didn’t jog.

2019: Didn’t jog.

2020: Still haven’t jogged.

This is a running joke.

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, “Mortgage Outlook: What if it is Cloudy?”, focused on the current political climate. If you have the 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. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

July 15: Ops, AE, LO jobs; non-QM, QC, construction loan products; events & training; big bank mortgage stats

I woke up this morning trying to remember if I was working where I am living, or living where I am working. “Personal” and “professional” often overlap. Caliber, and other wholesalers, are taking the high road in this week’s awful mix of personal and professional lives. Flagstar Bank summed up this week’s controversy in the wholesale channel. “We want to respond to the recent statements highlighted in the news by the chairman of AIME. While we strongly support the broker community and the vision and purpose of AIME, we do not in any way support the recent public words and behavior of its chairman. As a company, Flagstar Bank is committed to treating its employees with respect and creating an environment that is free of the kind of harassment, abusive language, and personal attacks made by the chairman of AIME. We expect no less of our business partners. That is why we are taking the step of suspending all relationships with the organization at this time. Again, this action does not reflect on AIME as an organization nor does it diminish our commitment to the broker channel, which is the foundation of Flagstar’s 30-year commitment to the mortgage business.”

Employment & personnel moves

Digital mortgage and fulfillment solutions provider, Promontory MortgagePath, announced the opening of its new Denver fulfillment center, building on its ongoing success and supporting its accelerated growth. Promontory MortgagePath (PMP) combines a collaborative digital-mortgage platform with comprehensive fulfillment services, giving lenders the technology and scalability required to compete in today’s market. PMP’s chief operating officer and Denver-area resident, Deb Aydelotte, said: “Expanding fulfillment operations into Denver better positions us to expertly service our clients nationwide and gives us the opportunity to tap into the area’s rich talent pool.” The Denver site joins PMP’s current Danbury operations site and bolsters the company’s recruiting strategy, with plans to add senior underwriters, processors and closers, lock desk analysts, and more to its ever-growing team. Denver-area mortgage experts interested in learning more about Promontory MortgagePath’s employment opportunities, including great benefits and the opportunity for a generous signing bonus, email careers@mortgagepath.com.

 

“Due to the economic impact of COVID-19, Home Point Financial saw many Associates’ spouses, partners, and family members lose their jobs. As a result, we launched a program called ‘Family First,’ which gives priority to applicants from extended family regardless of their experience in the mortgage industry. Since launching in April, Home Point has hired 84 new Associates as a result of Family First, and we’re not stopping there. We currently have hundreds of open remote positions that we’re looking to hire by the end of the year. Join our team, and we promise always to support yours whenever and however we can.” For immediate consideration, please send your resume to John Eite.

 

Our operations staff at Stearns Wholesale Lending helps foster growth and empowers our employees to achieve their goals. With an array of products, marketing programs, innovative technology, and dynamic retention strategies, we have created a kinetic culture that supports collaboration amongst our team members to produce extraordinary results. Darrin Miller, one of our Account Executives, has praised his relationship with our operations, which has helped develop his career and transformed him into a leader at Stearns Wholesale. Click HERE to see Darrin’s thoughts on what makes the Stearns very special.”

“Just like Dallas in mid-July, Mr. Cooper is HOT! We are proud to continue to deliver exciting enhancements, which includes being one of the first investors to allow Remote Online Notarizations (RONs), strengthening our eNote offering as well as lowering our FHA minimum FICO to 600. Mr. Cooper provides our clients a robust suite of execution options across Mandatory, Best Efforts and Co-issue across all Conventional and Government products.  Living our core values, we’re Champion for our Customers and deliver on this promise by providing industry-leading turn times, access to capital and a client-focused team. Contact our Regional Sales team for more information. If you’d like to be part of our dynamic Delegated and Non-Delegated Operations teams, we’re hiring! Contact Pamela Peak.  Mr. Cooper is a Top Correspondent Lender, proud to be certified as a Greatest Place to Work and the largest non-bank servicer with a portfolio of $600B+.”

“At Wyndham Capital Mortgage, we enable our loan officers to lead the charge in establishing a culture of innovation and human potential. Leveraging the power of the four pillars of a Fintech Mortgage Lender (Intelligent Automation, Perpetual Marketing Operating System, Deep Data Utilization and Corporate Culture) Wyndham Capital has broken the mold of mortgage lending. This drives the delivery of enhanced efficiency, maximum success, and an elevated work/life balance. But it’s not enough to say you have technological solutions or to say you’re entering the digital lending space. Success depends on the ability to take the next step – to use the Fintech Mortgage Lender pillars to empower your loan officers. Empower them to have the highest success rates, offer five-star customer service, fund twice the industry average in loans per employee and more. Click here to learn more about how you can be a part of the future of mortgage lending.”

The StoneHill Group announced that Julie Joseforsky is its new Director of Fulfillment Services to provide senior leadership for strategy and execution of the Company’s robust suite of loan origination fulfillment services.

Lender services and products

 

Identifying and successfully recruiting high-performing loan officers has become a real challenge as lenders manage increased volume. Seroka can support your current LO recruiting efforts with a customized marketing strategy that targets the LOs you are most interested in hiring and positions your company as a great place to work. Seroka will help you identify the key messages you should be conveying to attract talent and then develop a robust strategy that includes direct marketing, social media content and deployment, targeted ads, and public relations tactics. Is your website up to attracting great talent? If you’re uncertain, Seroka will review it and make sure it is! Check out this video to learn more. For additional information about how Seroka can bolster your recruiting efforts, click here and get ready to #turnupyourbrand.

Discover how JFQ Lending is using direct mail with Monster Lead Group to surpass $4.2 billion in originations for 2020: In just its first 3 years, the JFQ team has grown to approximately 120 MLOs, funding upward of $400 million in a given month. JFQ Lending’s President, John Kresevic reveals “75%-80% of our growth comes from Monster.” Kresevic explains, “We’ve been successful with the strategies we get from Monster. I know what’s certain every week; Monday around 12 o’clock Pacific the phones are going to start ringing and they’re going to ring the rest of the week.  I know that as long as I spend ‘X, my return’s going to be Y.” If you want consistent phones and predictable ROI from your direct mail like JFQ, go to https://www.monsterleadgroup.com/jfqlending/ right now.

Truepic Helps OneTrust Home Loans (“OneTrust”) Increase Construction Loan Velocity: Truepic’s virtual inspection platform is being used by OneTrust, a national mortgage bank and balance sheet lender, to increase the velocity and accuracy of its inspections for the Agency and Portfolio construction and rehab loan programs it offers.  They are leveraging Truepic’s technology to drive virtual verification of the condition and/or current state of a construction-related lending project, dramatically speeding up a borrower’s ability to submit a draw request, reducing the ability to fulfill draws to under 24 hours. The technology enables a borrower to capture 100% authentic and verified photos and videos directly from their own smartphone while running fraud detection and prevention tests behind every image submitted. This allows OneTrust to minimize their reliance on 3rd-party physical site inspections. Click here to learn more or to schedule a live-demo via a screen share email: sales@truepic.com.

The underserved deserve “historically low rates” too! Not all 600’s are risky (nor, are all 700’s safe!). But overlays, shuttered programs, and jacked spreads hurt those most in need, an unforced error. “Inclusive lending” doesn’t have to mean more risk. The actionable Mortgage Risk & Fairness Score is a powerful, predictive & prescriptive, data-driven “intelligence” tool that enables lenders, servicers, investors, and MI’s to know borrowers holistically. Then, use that deep, incremental risk & behavioral intelligence (propensity, segmentation, ability, resiliency, and “willingness” to pay) to better manage crisis-cycle credit risk & blind spots, latency, financial inclusion, pricing, capacity, regulation, and servicing. Bottom line: MRS delivers powerful incremental intelligence for origination, underwriting, secondary, and servicing to increase volume, inclusion, confidence, margins, efficiency, and capacity, while decreasing risk. MRS is plug-n-play, validated (top 10 bank) and vetted (CFPB, OCC, Fed). CLICK for Info


QC NOW Web Series – Key Data Elements for Impactful Reporting – Making Your Data Work For YouThe upcoming video in ARMCO’s QC NOW web series will be July 23rd, 2020 at 11 a.m. PST and hosted by ARMCO Executive Vice President, Sharon Reichhardt. Topics covered include what data is needed for an effective QC program, how to leverage the power of data through robust reporting, and leveled reporting that speak to each target. QC NOW features insights and tips to help QC professionals navigate the changes impacting your business today. Register Today!


Non-QM news

Calculated Risk Analytics LLC, dba Excelerate Capital (“Excelerate”) announces the RE-launch of NON-QM 2.0 for Investor Programs and Prime Borrowers. As a proud industry leader and early adopter of Non-QM lending, Excelerate Capital is pleased to announce the roll-out of “NonQM 2.0” which includes the classic Non-QM Full Doc and Bank Statement Programs as well as DSCR Cashflow Investor Programs. The Non-QM sector was temporarily tested by the coronavirus-driven liquidity crisis that seized the capital markets in March and April of this year. Now in July, NonQM lending has returned and is even out-performing Agency QM loans, eagerly returning capital to the RMBS markets. Excelerate Capital remains highly confident in the quality and viability of Non-QM financing and remains eager to serve borrowers in their pursuit of homeownership and real estate investment though they may not qualify for Agency QM loans. Contact Excelerate for more information.

Big banks & mortgages

Wells Fargo earnings showed the bank had a net loss ($2.4 billion in the second quarter) for the first time since 2008. Revenue of $17.8 billion was also weaker than analysts’ estimate, and the bank set aside $8.4 billion in loan loss reserves tied to the coronavirus pandemic. Origination volumes at WFC rose +23% Q/Q, and gain-on-sale (GOS) margins were +96 bp Q/Q. (WFC books GOS income when the loan is sold versus at the time of rate lock which is the common method for most lenders.)

JPMorgan shares jumped upward after record trading revenue drove stronger-than-expected second quarter profit. Earnings per share also exceeded expectations. Mortgage production income was up sharply Q/Q, gain-on-sale (GOS) margins were strong, although JPM saw a slight decline in volumes. Origination volumes decreased -13% Q/Q but the GOS margin rose +193 bp Q/Q to 307 bp, which KBW’s Bose George attributes to both mix (the higher-margin retail channel grew from 50% to 74%) and wide primary/secondary spreads. The MSR valuation was down just -2% Q/Q, a bit better than his expectation for the industry of around -5%. CEO Jamie Dimon still said the bank faces much uncertainty regarding the future path of the economy.

Events this week and next

VantageScore has partnered with American Banker to host the webinar “Consumer Dislocation and Credit Score Impacts”, next Wednesday, today at 2PM EST.

MBA/MW is providing a webinar, today at 2:00, Ginnie Mae, eNotes and You: Let’s Begin

Join Berkadia for a Conversations with the C-Suite: Affordable Housing, Register for the Webinar on Thursday July 16th at Noon ET.

Join MCT on July 16th at 11AM PT for a webinar on Advanced Hedging Strategies. MCT’s Director of Analytics, Bill Berliner, will discuss the use of human intuition as a hedging model, the implications of current securitization practices on hedging/trading, and how to address current market quandaries.


NAMMBA
 is hosting a special state of the industry town hall series titled The COLOR of COVID on Friday, July 17, from 1- 4PM ET which will include an open discussion on how COVID 19 has impacted communities of color across the country and solutions the industry can implement to reduce foreclosures. This month’s townhall will feature CEO’s Patty Arvielo (New American Funding), Casey Crawford (Movement Mortgage), and Sanjiv Das (Caliber Home Loans) as well as the leaders from NAHREP, AREAA and NAREB. Additionally, MBA’s President/CEO Bob Broeksmit, CMB will share a state of the industry update. To register, CLICK HERE (to get a copy of the recording).

Save the date! Josh Friend will be going live with Rob Chrisman (me!?), Capital Markets Consultant. You don’t want to miss this Insellerate conversation as they discuss the economy, industry trends, and provide an outlook on the second half of 2020. It’s taking place on Tuesday, July 21st at 10:00 AM PST.

 

LBA Ware is hosting The Sophisticated Payroll Coordinators Guide to the LO Comp Rule on Thursday, July 23 at 2:00 pm ET, a webinar designed to bring your staff up to speed on LO comp dos, don’ts and best practices.

Easily Find Industry Events at The Mortgage List Event Calendar. July webinars include What You Need About the Index Moving from LIBOR to SOFR (Join the National Association of Mortgage Brokers and Finance of America TPO, on July 21st to find out what you need to know about the transition from London Interbank Offered Rate – LIBOR – to Secured Overnight Financing Rate – SOFR), HELOC Loan Program (Join Finance of America TPO on July 21st as they share an overview of their new HELOC Loan Program), and Arch MI – Creating Customer Communication Strategy Plan (Arch MI, on July 24th, partners with Ginger Bell to share how to create a customer communication strategy plan that will keep consumers engaged and informed). For a complete list of industry events go to The Mortgage List. To find out how to add your events onto The Mortgage List, contact Ginger Bell.

FHA-Approved Lender Notifications and Updates: What FHA Needs to Know and When. Register for this free FHA Webinar on Wednesday, July 22nd from 2:00-3:30 PM (Eastern).

To showcase their new integration and address trends and mounting challenges in the mortgage market, Wipro Gallagher Solutions and DocMagic will be holding a webinar on

July 22nd at 11 AM CT: Digital innovations for lenders during the times of social distancing.

COVID gave us lemons; and we made lemonade, Register for the September 16th-18thSales Mastery 2020 Live Digital Experience. Individual Advanced Pricing of $299 is available until July 15th, register now.

To view the AEI Housing Center’s July 1st Housing Market Indicators briefing presentation, please click here.

Capital markets

Tuesday was a pretty good carbon copy of Monday for the market: not much news but comments from a Fed President making headlines. U.S. Treasuries ended Tuesday rallying in curve-flattening fashion (on a relative basis, it may occur when short-term rates move a little higher, long-term rates move a little lower, mid-maturity rates don’t do much). Quarterly reports from three big banks showed increases in loan loss reserves while Fed Governor Lael Brainard said that the central bank’s policy needs to shift from stabilization to a more accommodative stance, and that yield curve control policies may be helpful in the future, but more analysis must be done. Economic releases included CPI for June, which increased slightly more than expected and core CPI posted its first increase since February, though inflation remains in a subdued state.

Mortgage applications for the week ending July 10 kicked off today’s economic calendar, increasing 5.1 percent from one week earlier, including an adjustment for the Independence Day holiday. We’ve also had Empire manufacturing for July (17.2, first positive number since February) and June import & export prices (both +1.4 percent). Later this morning brings industrial production and capacity utilization. The lone scheduled Fed speaker sees Philadelphia President Harker speak on the economic outlook with the latest Beige Book released in the afternoon. The Desk will conduct three FedTrade operations totaling up to $4.9 billion starting with $1.5 billion GNII 2.5 percent and 3 percent followed by $2.5 billion UMBS30 2 percent through 3 percent and $868 million UMBS15 2 percent and 2.5 percent. We start Hump Day with Agency MBS prices worse/down a few ticks and the 10-year yielding .66 after closing yesterday at 0.62 percent.

Whoever said, “Out of sight, out of mind” never had a spider disappear in the bedroom.

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, “Mortgage Outlook: What if it is Cloudy?”, focused on the current political climate. If you have the 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. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

July 14: LO, U/W jobs; data, loss mit, disclosure, comp products; flood & disaster changes

Here’s your life graphically under COVID. Many in our business will argue that homes should not be used as piggy banks, COVID or no COVID. For others it is their lifeblood of business. Others say that good moms let you lick the beaters, but great moms turn them off first. (Okay, I just threw that in there to see if you’re paying attention.) Given that 10,000 people a day are turning 62, it is good to know what is happening at that end of the age curve. Housing wealth for American seniors aged 62 and older increased by 1.6% in Q1 2020, to a new all-time high of $7.54 trillion. Senior home values were one of the main factors leading to the new high, increasing by 1.4%, or $132 billion. With record high housing wealth, reverse mortgages continue to be relevant.

Employment

 

“In just five years, Home Point Financial has grown to be the second largest wholesale lender and the thirteenth largest correspondent lender. How? Because of a record-breaking increase in the customer base, not low rates. To meet Home Point’s continued demand, we’re hiring over 75 permanent underwriters at every experience level. Home Point’s “We Care” culture truly sets us apart, and we offer 1) Remote Work Environment 2) Competitive Salary Plus Productivity Bonus 3) Management Opportunities 4) Full Benefits Through Aetna 5) Matching 401K, and 6) Overtime. Join the Home Point family today! Send your resume to John Eite.”

In today’s highly competitive recruiting environment, almost every mortgage company is facing a significant challenge in finding qualified operations personnel. What can make this challenge even more difficult is when the focus becomes simply getting resumes before clearly defining a candidate criteria and successful employee profile. Agility 360 a mortgage-centric recruiting and project staffing firm offers a sophisticated recruiting approach that identifies key criteria such as specific job skills, previous experience, and unique personality characteristics to identify the best candidates for the job. That is, Agility 360 focuses on the quality of candidates vs. the quantity of resumes. Over the past six years, Agility 360 has refined a proprietary vetting and testing process for mortgage positions that will find the right person for the job, every time. If you’d like to learn more, please contact Raj Sharma (469-208-6337).

“Many LOs struggle to trust their leadership & company’s stability. Churchill Mortgage not only has a world class leadership team, but it’s also an E.S.O.P! Our employees are partial owners. We’re a company of leaders, focused on the success of our company & our customers. We’ve been voted a Top Workplace for 7 consecutive years! According to LinkedIn, Churchill Mortgage loan officers have an average tenure of 4.3 years compared to the industry average of 1.7 years! Also, 13% of our Loan Officers have been with us for over 7 years. “I’ve been in the mortgage and finance business for over 40 years, & have found it’s truly a ‘people’ business where there must be a relationship of trust,” explained Churchill Mortgage president and CEO, Mike Hardwick. We’re proud of our past & confident in our future. If this type of environment and leadership mentality interests you, contact Churchill Mortgage.”

Total Expert has added Kevin Dotzenrod as VP of Engineering (to lead the engineering team as it scales product architecture to a high-throughput enterprise system) and Laura Theodore as VP of Customer Success (to further develop Total Expert’s process-driven, highly scalable, and customer-centric approach to product experience and engagement).

Lender & broker services and products

We all know volume and lender demands are at an all-time high. With the floodgates open, the right technology should work for you, not against you. Maxwell’s digital mortgage point-of-sale platform is powered with thoughtful automation at every step of the mortgage process. Maxwell enables over 200 small-to-midsize lenders to realize faster turn-times, less underwriting touches, and happier real estate partners. And it shows up in the numbers: Loans on Maxwell are closing 45% faster, helping lenders on Maxwell’s platform to manage (and close) more loans with the same staff, a critical benefit in these tsunami volume times. Click here to learn more about the Maxwell platform, and request a demo today.

The nuances of the CFPB’s strictly regulated LO Comp Rule are a known cause of headaches for mortgage lenders. Because of its unintuitive nature, the rule is not always fully understood by those actually managing loan commissions. To help lenders stay compliant from the bottom up, LBA Ware is hosting The Sophisticated Payroll Coordinators Guide to the LO Comp Rule on Thursday, July 23 at 2:00 pm ET, a webinar designed to bring your staff up to speed on LO comp dos, don’ts and best practices. Hosted with Ballard Spahr partner Richard Andreano, your team will get definitive answers to all their burning questions like, “Is it really okay to vary compensation for purchase and refinance loans?”. Register now or forward this to your payroll department, branch managers or anyone who would benefit from LO Comp Rule education.

 

Here’s an instance of a technology vendor hitting it out of the park. SimpleNexus writes that adoption of its disclosures solution has skyrocketed, having generated 182,000 disclosures in the month of June. When asked why their disclosures solution has been so well received, they say the answer is simple: they’ve made it easy for lenders to send, and for borrowers to review and sign, disclosures from any device at any time. According to COO Ben Miller: “We’ve developed our disclosures solution with lender input to eliminate more than a dozen pain points that occur in other solutions. Together, these optimizations add up to a better borrower experience, massive time savings and stronger pull-through.” Sign up for a demo to learn more.

 

What’s rapid borrower relief? It’s the ability to process the staggering number of COVID-19 forbearance requests in bulk, and it’s what servicers need most right now. With more than 2 million forbearance agreements currently at the point of extension, deferral, or repayment, it’s time to get ready to manage the next phase of options: eligibility determination and workout alignment. That means it’s time for automated rapid borrower relief that brings a level of functionality far beyond simply ingesting data in mass. Through self-service capabilities and system automation, servicers can underwrite their COVID-19 loss mitigation processes to manage incoming requests, upload data, approve workouts, generate borrower communications, and launch future workflows with ease. Ready to make a real difference and lead your organization to success with rapid implementation of automated workflows, backed by industry expertise? Check out our Loss Mitigation Automation for Rapid Borrower Relief eBook and find out how to future-proof your organization with CLARIFIRE.

 

Optimal Blue Mortgage Market Indices (OBMMI) are now available on the Nasdaq Global Index Data Service (GIDS). Nasdaq GIDS distributes real-time data to more than 700 financial services companies around the globe, including all major market data vendors, market exchanges, sell-side banks, buy-side firms, trade automation providers, and financial web portals. The availability of highly accurate, granular indices that depict the daily movement of mortgage rates provide timely information and unique opportunities for today’s consumers, as well as mortgage and finance professionals. In fact, the mortgage industry saw rates hit another all-time, historic low just last Friday. As reported by Optimal Blue’s OBMMI, the national rate average on the 30- and 15-year conforming mortgages fell to an astounding 3.025% and 2.528% respectively. Track accurate rates yourself every day with Optimal Blue’s OBMMI.

Floods, earthquakes, storms…

Yes, Death Valley just set a record for heat, but hurricane season will be starting soon with the usual news coverage of traffic jams from people fleeing them. FEMA, as always, is the primary source, and driver, of lender’s disaster policies and procedures. And of course every year Congress debates extending flood laws and they are often, unfortunately, used in political negotiations.

In the July 6, 2020, issue of the Federal Register (85 FR 40442), the  Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), the Farm Credit Administration (FCA), and the National Credit Union Administration (NCUA), (collectively the “Agencies”), jointly published proposed Interagency Questions and Answers Regarding Flood Insurance that reorganize, revise and expand the existing Interagency Questions and Answers Regarding Flood Insurance. The Agencies are requesting comments on these proposed Interagency Questions and Answers Regarding Flood Insurance. Interested parties who wish to submit comments must do so on or before September 4, 2020. The addresses and methods for submitting comments to one or more of the Agencies is set out on pages 40442 and 40443 of the above hyperlinked Federal Register.

Whether or not you agree with man-made climate change, it is affecting the housing sector. Follow the money, right? Flood risk calculations and maps are being changed, and flood risk research fintech First Street Foundation is addressing that problem through its Flood Factor platform, an online visualization tool that offers property specific, past and present flood risk data, along with future risk assessments, for more than 142 million homes and properties across the country.

Recently released U.S. Census Bureau housing unit estimates show the impact of natural disasters in towns and cities across the country using FEMA data to paint a more current picture of population shifts in communities. California’s Butte County, site of the Camp Fire in 2018, saw the biggest decline of any county in the U.S. between 2018 and 2019, losing 13.9 percent of total housing units. Fires in California over the last couple years also affected Shasta and Lake Counties, drastically, costing 570 and 140 housing units, respectively. Additionally, Lake County lost over 1,100 units between 2015 and 2016 due to a separate fire. Fires are only one type of disaster impacting housing units. Calhoun, and Jackson Counties in the Florida panhandle were impacted by Hurricane Michael in October 2018. Calhoun County lost over 80 housing units between 2018 and 2019. Jackson County lost nearly 70 housing units over the same period. And flooding in Iowa during the spring of 2019 impacted Mills and Fremont Counties, costing the counties 70 housing units and 20 units, respectively.

On 7/9/2020, with DR-4548, FEMA declared federal disaster aid with individual assistance has been made available to 2 Utah counties affected by earthquake and aftershocks during 3/18/2020 – 4/17/2020. AmeriHome reminded clients that disaster inspections are required for the Davis and Salt Lake Counties.

Recall that with DR-4542, FEMA declared federal disaster aid with individual assistance has been made available to 7 South Carolina counties affected by severe storms, tornadoes, and straight-line winds during 4/12/2020 – 4/13/2020.

AmeriHome will require disaster inspections for the following Michigan counties: Arenac, Gladwin, Iosco, Midland and Saginaw due to the FEMA declaration from severe storms and flooding during the period of May 16, 2020, through May 22, 2020.

On June 29th, Flagstar posted updates on the Mississippi Severe Storms, Tornadoes, Straight Line Winds and Flooding (DR-4536) and the South Carolina Severe Storms, Tornadoes and Straight-line Winds (DR4542) regarding the effective date to determine if a re-inspection is required.

Due to the effects of severe storms, tornadoes, straight-line winds, and flooding in South Carolina, FEMA has issued a disaster declaration for the Incident Period: April 12, 2020 – April 13, 2020. The declaration includes the following counties in South Carolina: Aiken, Barnwell, Berkeley, Colleton, Hampton, Marlboro, Oconee, Orangeburg, and Pickens counties. Consult the Caliber Home Loans Sellers Guide for details.

Mortgage Solutions Financial issued revised disaster alerts in 07-20W and 07-20C regarding the South Carolina Severe Storms, issued revised disaster alerts in Announcement 05-20W and Announcement 05-20C regarding the Mississippi flooding, and sent out Announcement 11-20C regarding the Michigan Severe Storms – Disaster Alert.

First Community Mortgage posted updated information for both Wholesale and Correspondent regarding the Mississippi flooding.

Capital markets

Much of the markets attention last week was devoted to the resurgence of Covid-19 infections and new hot spots in the US. deflation concerns, which have once again crept into the minds of marker participants, were augmented with a surprise drop in the producer price index. As a result, bond yields drifted lower and the Freddie Mac Primary Mortgage Market Survey hit an all-time low dating back to the series commencement in 1971. Purchase mortgage applications were up 5 percent for the week ending July 3 and refinance applications inched up. The indices are up 33 percent and 111 percent respectively from one year ago. Pending home sales rebounded in May as people were once again able to get out and shop and sales are expected to rebound through the remainder of the summer buying season which should bode well for mortgage volume. The resurgence of Covid-19 infections, including California shutting back down, will continue to impact economic activity although many do not expect a return to the widespread shutdowns experienced in March and April. The rate of improvement will likely slow as people and businesses adjust to new operating and safety standards to mitigate exposure to the virus.

It seems we are certainly nearing the dog days of summer, as there hasn’t been much news or movement of MBS or rates since the holiday. The big news yesterday was Dallas Fed President Kaplan suggesting that the central bank’s emergency lending facilities could be removed if market conditions continue improving. The central bank remains on track to purchase $40 billion in Treasury securities over the next two weeks. Longer Treasury yields ended yesterday up a bp, which was surprising considering there was somewhat poor news on the geopolitical front. Secretary of State Pompeo announced that the U.S. will strengthen its policy on China’s territorial claims in the South China Sea. And China sanctioned several members of Congress and the U.S. Congressional-Executive Commission on China.

If that wasn’t enough news (you didn’t care to read) for you, the U.S. will impose a 25 percent tariff on $1.3 billion worth of imports from France as retaliation for France’s plan to impose a digital tax. Economic releases included the Treasury Budget for June posting a record $864 billion deficit for the month of June. (The deficit in June 2019 was $8.5 billion.) The figure reflects the huge imbalance of tax receipts with the huge sums of fiscal support provided to by congress to help with the effects of COVID.

Today’s economic calendar is already underway with the NFIB Small Business Optimism Index for June (+6.2). We’ve also had June Consumer Price Index (+.6 percent, +.6 percent year over year, mostly due to gasoline prices) and core CPI (+.2 percent). Coming up is a trio of scheduled Fed speakers: Richmond’s Barkin, Fed Governor Brainard, St. Louis’ Bullard. A new schedule will see the Desk conducting two FedTrade purchase operations totaling up to $4 billion starting with $2.5 billion UMBS30 2 percent through 3 percent followed by up to $1.5 billion GNII 2.5 percent and 3 percent. We begin the day with Agency MBS prices close to unchanged and the 10-year yielding .62 after closing yesterday at 0.64 percent.

Thank you to Ed W. from California who sent, “Did you hear they edited Blazing Saddles due to current conditions? Its slated to air tonight on Channel 7 from 8:00 to 8:07. And Silver Streak will air from 8:30 to 8:35.”

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, “Mortgage Outlook: What if it is Cloudy?”, focused on the current political climate. If you have the 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. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

July 13: QC, Ops, LO, reverse, AE, correspondent jobs; marketing, TPO products; wholesale updates & mudslinging

While in captivity it is important to remember good grooming is important. Good communication is important also. Are salespeople all on the way to having two cell phones, and two phone numbers? If you haven’t heard of Gong, your boss probably has. Gong is a “revenue intelligence platform for B2B sales teams. It helps you close more deals by shining the light on your remote team’s sales conversations. It records, transcribes, and analyzes all sales calls so you can drive sales effectiveness across your entire team.” Far be it from me to say it sounds like Nineteen Eighty-Four’s “fictional” character Big Brother. But some might, and won’t want a transcript of their every phone call circulated through the company. And while we’re on surveillance, how about street security cameras in San Francisco that can see the number on a cell phone?

Employment

DFW based Caliber Home Loans is committed to keeping families in their homes through all stages of home ownership and to giving back to the communities they serve. Caliber is proud to have recently donated $7,500 to the JJ Barea Foundation, an important philanthropic organization in Puerto Rico. Originally formed to provide free basketball camps to children in Puerto Rico, the organization has been a driving force raising funds for displaced families, delivering food, water, and medical supplies for families affected by Hurricane Maria. Since COVID-19, the Foundation continues to build basketball courts at public schools in Puerto Rico, provides internet workouts, and sponsors reading programs to keep children active physically and mentally. Be an influencer of positive change in your community, join Caliber Home Loans!

Towne Mortgage, a full-service lender located in Troy, MI is hiring! “We are looking for experienced, high performing Operations, Quality Control, Human Resources and Finance team members. Founded in 1982, The Towne Mortgage Family of Companies has nearly 40 years of experience in the mortgage industry dedicated to our clients, community, and team members. Come join a growing company and help make a difference. Our volume has increased by 300% over the last year! We have a strong benefit offering and full-time, on-site, remote, and flexible/part-time opportunities available. If interested, please contact Jessie James to learn more.”

RMF has exciting new remote opportunities available for Direct Endorsement (DE) Underwriter, Reverse Mortgage Processor, and Reverse Mortgage Closer positions! “To join our industry-leading underwriting team, candidates will possess 1+ year of experience as a DE Underwriter in the reverse mortgage industry. This position requires underwriting residential reverse mortgage loans, ensuring compliance with FHA and secondary market guidelines. RMF’s Reverse Mortgage Processor position requires 1+ year of experience in mortgage loan processing. Day-to-day responsibilities include processing applications from time of receipt to submission of the loan package to underwriting. Ideal Reverse Mortgage Closer candidates will have 1+ year of experience in mortgage processing, closing, and/or post-closing. Responsibilities include tracking loans clear to close and generating closing documents for FHA HECM loans. To apply, please email Jennifer Brown.

Red Adair warned, “If you think it’s expensive to hire a professional, wait until you hire an amateur.” In a time when some recruiters are pulling back because of full pipelines and increased workloads, there are the other recruiters seizing the moment and having valuable conversations with top tier talent. What are your long-term business plans? How are you preparing for the second half of 2020…or how about 2021? Over the past 20 years, Model Match has been connecting organizations with highly qualified industry professionals that make an immediate impact and hit the ground running. Model Match has designed tools and resources that allow you to quickly build your pipeline across your entire geographical footprint, manage your team and monitor effectiveness all in one central, collaborative space. We have found that “people work for people, not companies” and Model Match creates the environment which creates the opportunity for success. Connect with the Model Match team today to learn how you can build your recruiting pipeline with qualified individuals and make the second half of 2020 the best part of your year.

“Great things are happening here at Finance of America Mortgage TPO. We are on a growth plan to become one of the top TPO lenders in the country. We have significant resources, an extensive footprint operationally, and have recently invested in a long-term capacity plan. Whether it’s our two new operations/underwriting centers on both the west and east coast, investing in innovative technology, or our competitive products and pricing, we are positioning ourselves and our employees for success. With so much going on, we are currently looking for top-notch account executives to cover our national footprint. For more information, contact R.J. Arnett, SVP/National Sales Manager TPO, today. Find out why top people in the industry are joining FAM TPO!”

TruLoan Mortgage, home of “The Lending Experience You’ll Love,” in Charlotte, NC is expanding. Founded by retail branching industry veterans Daniel Jacobs and partners, TruLoan Mortgage is a boutique lender providing enhanced levels of support to help successful producers double their business. Leave the corporate red tape and status quo behind, and experience action, support, innovation, and growth now! Be a part of a team with impactful millennial homebuying seminars (last virtual event attracted 60 attendees and 18 highly qualified applicants!), closings loans in 8-21. days, 5-star reviews and a lot of fun doing it. TruLoan Mortgage is delivering on its promise for a lending experience you’ll love. If you’re a successful producer or team of producers in the Charlotte market or in the Southeastern US, want the support you deserve and an environment to grow, earn more, and have fun, contact us now at Grow at TruLoan.

Lender & broker products & services

Franklin American Mortgage is proud to announce its partnership with Cloudvirga, a leading fintech firm, to power a new digital and point of sale mortgage experience. Through this partnership, Franklin American Mortgage will leverage the most robust wholesale lending platform in the market to provide the fully digital, automated experience brokers expect. “In today’s wholesale environment, lenders have a responsibility to empower their brokers with the tools they need to be successful,” said Scott Tansil, Executive Vice President of Third-Party Origination at Franklin American Mortgage, a division of Citizens Bank N.A. “Cloudvirga TPO provides a world-class digital ecosystem for brokers and helps us streamline the loan process. This exciting partnership is just another example of how Franklin American Mortgage is continuing to invest in modern technology to reimagine wholesale!” To learn more, visit Franklin American.

The NewRez Correspondent Division is looking for non-delegated lenders to partner with in the Southeast, Mid-Atlantic, and Midwest markets. “Over the last two months, we have doubled our Non-Delegated sales team, completely streamlined processes, and increased Underwriting capacity – subsequently transforming our lender experience. If you are interested in learning how to expand your capacity through non-delegated partnership NewRez Correspondent, visit our website or contact SVP National Sales, John Davis.”

Discover how JFQ Lending is using direct mail with Monster Lead Group to surpass $4.2 billion in originations for 2020: In just its first 3 years, the JFQ team has grown to approximately 120 MLOs, funding upward of $400 million in a given month. JFQ Lending’s President, John Kresevic reveals “75%-80% of our growth comes from Monster.” Kresevic explains, “We’ve been successful with the strategies we get from Monster. I know what’s certain every week; Monday around 12 o’clock Pacific the phones are going to start ringing and they’re going to ring the rest of the week.  I know that as long as I spend ‘X, my return’s going to be Y.” If you want consistent phones and predictable ROI from your direct mail like JFQ, go to https://www.monsterleadgroup.com/jfqlending/ right now.

News from the wholesale arena

Mi Casa, Sue Casa? Over the weekend, mortgage banker emails lit up with a story of videos and other communications showing nasty incivility by prominent industry executives that, believe it or not, had nothing to do with wearing a mask in public. The facts around these communications are now the subject of a lawsuit, but it is unclear at this time what, if anything, precipitated the exchange. You don’t have to like your competitors, but there is no place in mortgage banking for childish and/or vulgar bullying among competitors, and it certainly does not help our industry. Quite the opposite. (The case can be found at the Circuit Court for the County of Oakland, 2020-182256-NO, Plaintiff Theresa Carole Niemiec, Defendant Anthony Casa, Judge Rae Lee Chabot, an eFiling Case.

LodeStar has Launched A Secret Shopping Service. To find out more, click here.

The Caliber Weekly communication for the week beginning June 29 is linked here: Caliber Weekly for Brokers & Non-Delegated CL Clients June 29.

Mountain West Financial Wholesale announced All REFINANCE transactions during the month of July will receive a 60-day lock for the price of 30 days for NEW LOCKS ONLY.

LoanStream is now Lending in Hawaii. View its Updated Matrices for Government and Non-QM products here. The most up to date Announcements & News from LoanStream include the elimination of its WVOE Only Program and updates to Employment Re-Verification

First Community Mortgage posted updates to its Wholesale Guidelines specific to USDA and Conventional programs. Updates include RD Conditional Commitment, credit, and inquiries. Conventional updates include Salaried or Hourly Wage Earner, Rental Income, Title Commitment and DU release notes. FCM posted a Guideline update in Wholesale Announcement 2020-30 regarding changes from THDA.

With the new One-Click AUS in BREEZE from Plaza Home Mortgage, you can run DU® and LPA® at the same time and instantly generate a side-by-side comparison, allowing you to quickly evaluate the findings and determine what’s best for your borrower. Of course, you can still run DU and LPA separately if you prefer.

Capital markets

Global economic data continued to improve throughout June as more socially restrictive policies were lifted across the US and the world. The rate of global contraction as measured by the JP Mortgage Global Composite Purchasing Managers Index eased from 36.3 in May to 47.7 in June with China, Australia, and France moving into expansion territory. The ISM Non-Manufacturing Index improved in June from May, the single largest monthly percentage-point increased since the inception of the series in 1997. Measures of both the service and manufacturing sides of the economy indicate broad-based economic expansion during June. There are still a significant number of workers, however, who remain out of a job and 1.3 million new claims for unemployment were filed for the week ending July 4. While weekly new claims continue to fall, the pace of decline has slowed and nearly 18 million workers continue to receive benefits. Keep in mind that during the last recession, the number of unemployed peaked at around 15.3 million in April 2010.

For many market participants, last week was about getting back in the swing of things after a long holiday weekend. A pullback in MBS and Treasury yields to close the week took place as equities showed continued resilience and stocks jumped amid indications that the world could be closer to an effective treatment for Covid-19, even as cases rise. Economic releases showed the Producer Price Index for final demand decreased when it was expected to increase, following an increase in May. On a year-over-year basis, the index for final demand is down 0.8 percent while core PPI is up just 0.1 percent, meaning there are few, if any, inflation pressures at the producer level due to generally weak demand. And President Trump continued his tensions with China, saying phase two trade deal with China is unlikely, due to “severely damaged” ties with Beijing. Additionally, the U.S. imposed sanctions on Chinese officials deemed responsible for human rights abuses.

With no real data of note today, let’s turn to the rest of the week. There are several Fed speakers currently scheduled, including New York Fed President Williams today, ahead of next week’s blackout period with the FOMC meeting on the 28th and 29th. Things pick back up tomorrow with June CPI and Core CPI. Wednesday sees the latest monetary policy decisions from the Bank of Japan and Bank of Canada, last week’s application data, June Import/Export Prices, June Industrial Production and Capacity Utilization, and the latest Fed Beige Book. Thursday’s busy calendar includes June Retail Sales, the July Philadelphia Fed Survey, May Business Inventories, and the July NAHB Housing Market Index, before the week closes with June Housing Starts and Building Permits, and preliminary July Michigan Consumer Sentiment Survey.

Turning back to today, the NY Fed will conduct two FedTrade purchase operations totaling up to $4.7 billion starting with $1. billion GNII 2.5 percent and 3 percent followed by up to $2.9 billion UMBS30 2 percent through 3 percent. The most recent Fed balance sheet on July 8 showed a $88.3 billion drop in assets for the week, the fourth weekly drop in a row, taking the total decline over the last month to almost $250 billion and total assets below $7 trillion for the first time in almost two months. The fall is due mainly to the declining usage of the Fed’s emergency services, the repo and dollar swap facilities it rolled out for primary dealers and foreign central banks at the height of the market turmoil in March and April. Later this afternoon, the Desk will release a new two-week FedTrade purchase schedule along with the four-week reinvestment estimate. We begin the week with Agency MBS prices unchanged from Friday and the 10-year yielding .65 after closing last week at 0.63 percent, with no substantive economic news.

First alcohol was reported to kill COVID. Then heat supposedly killed COVID. Then direct sunlight was rumored to kill COVID, with masks stopping its spread. If you see me outside in the backyard, drunk, naked, laying in the sun with a mask on, mind your own business. I’m conducting important medical research.

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, “Mortgage Outlook: What if it is Cloudy?”, focused on the current political climate. If you have the 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. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

July 11: Supply & demand on bananas, hard seltzer, and… wood prices!? Saturday Spotlight: PrimeLending

“History is not there for you to like or dislike. It is there for you to learn from it. And if it offends you, even better. Because then you are less likely to repeat it. It is not yours to erase. It belongs to all of us.” Contrast that versus, “We should not teach history. You hear the stories of the victors from their own point of view and then you want to start your own violence and wars to do your own good part. We don’t learn how to avoid wars, but how good they are.” And given that our business touches and helps millions of lives every day, our industry, and the people in it, are smack dab in the middle of it.

Dixie flags, tearing down statues, politics, and renaming things aside, everyone should remember that we are living in historic times right now. It certainly isn’t glamorous to eat Grape Nuts five days in a row, and only wash your every-day sweatpants once every two weeks, but scientists, political scientists, sociologists, and psychologists will be studying us for centuries. Every lender is busy being waist deep in volume, but some will argue that the mortgage industry hasn’t considered the long-term economic consequences from COVID. What will mortgages look like post COVID? It’s all reactionary at the moment. But this time next year is going to be challenging, as not only will most borrowers have 30-year rates at 3 percent or lower, but the impact of forbearance will be truly seen. As well as the job market, as some economists see the unemployment rate continuing to rise based on recent re-openings closing back up. Lots more below on some of the non-mortgage economic signals the nation is giving us.

Saturday Company Spotlight

This week we highlight PrimeLending’s focus on the founding, growth, employee mentoring in a work from home environment, entrepreneurship and charity work.

In 3-5 sentences, describe PrimeLending (when was it founded and why, what it does, where, recent growth, and plans for near-term future growth). A perennial powerhouse in the industry for more than 30 years, PrimeLending’s sole focus is delivering the ultimate mortgage experience for both borrowers and business partners alike. That’s why we introduced the Modern Originator, our forward-looking initiative to empower and equip our loan officers to deliver an extraordinary customer experience. As a company, we are committed to providing every member of our team with the tools, technology and training needed to originate more loans and grow their business in today’s digital marketplace. For example, this spring we successfully completed two huge technology implementations: Blue Sage, our state-of-the-art LOS, and Total Expert, the industry-leading digital marketing platform. With the addition of both Blue Sage and Total Expert, we’ve never been better positioned to not only compete, but win in the marketplace.

 

Tell us about company culture and what type of volunteer work employees are encouraged to engage in, or charities your company supports, and why. Simply stated, our Core Purpose is to make a profound and positive impact on the lives of all we serve. That’s why PrimeLending recently allotted $250,000 for our branches to make charitable donations to local charities. We’ve been able to assist food banks, medical centers, community response funds, youth programs, educational scholarships, and other nonprofits all across the country. Our employees’ efforts aren’t limited to financial contributions. We’ve also seen an outstanding response through volunteer work, feeding essential workers, hosting drives, and providing frontline assistance.

 

What does your company do to help elevate your employees’ growth? Describe any mentoring programs, outside classes or training, in-house training. How does the company help people develop?

 

PrimeLending success has been built around one simple belief: investing in our talented, dedicated employees. It’s the secret to PrimeLending’s longevity and success, and the reason so many home buyers trust us to guide them through the mortgage process. Our award-winning onboarding and training programs not only prepare new team members to begin originating loans on day one, but continually provide valuable resources and learning opportunities to help loan officers build their business and achieve their goals. Each year, we host Sales Rally, a world-class, can’t-miss experience that brings together loan officers from across the country to discover best practices from top producers, learn new tools to grow their business and get inspired by company leaders and top-rated industry speakers.

 

Tell us how your company maintains its culture in the office, or in a work-from-home environment if applicable. Putting people first defines the PrimeLending culture, and we see it every day in the way our team works together and supports each other. We know having a passionate, motivated team that cares about our customers, business partners and each other is our greatest asset.

As other businesses found themselves grappling with appropriate responses to the COVID-19 pandemic, PrimeLending swiftly acted to ensure our highest priority remains the safety and the well-being of our co-workers, customers, and communities. While most of our team is working from home during these unprecedented times, we’ve increased the number of communications from our leadership team, added eCulture activities and provided manager tips, all in an effort to maintain team unity. It’s thanks to our team-oriented culture and resilient employees that we were able to adjust so quickly, and without skipping a beat. (We’re actively hiring builders, doers, visionaries, and entrepreneurs. If you’re a mortgage superstar and you’re interested in being a part of our award-winning organization, contact Nic Hartke.)

(For more information on having your firm featured, contact Chrisman LLC’s Anjelica Nixt.)

Mortgage banking touches many areas

I received this email. “We may be in for some tough times as the economic fallout will last long after COVID. My concern is the rate at which people are not making their credit card payments. It’s the first thing people stop making payments on. It’s unsecured debt, and there is little recourse credit card companies have to collect. There is going to be a lot of ‘dinked up’ credit this time next year. How will the mortgage industry accommodate this when they come in to apply for a home loan? Also, I’m already seeing people with loans in forbearance trying to refi out of it. Very few will be able to pay the balloon payment at the end and if they can’t refi out of it then you will see the loan mods rolling in. This has a direct impact on the mortgage industry and the economy. People who can’t obtain credit don’t spend money on items that are considered economic drivers, such as cars, housing, travel, etc.”

So what you will about them through the history of the United States, immigrants have made a huge contribution to our society. The Federal Reserve Bank of Dallas recently published a paper about the effect of immigration on business dynamics and unemployment. The study combined U.S. data on immigrant inflows from the Current Population Survey with data on business formation and survival and job creation and destruction from the National Establishment Time Series (NETS) database for the period 1997 to 2013. The hypothesis was that immigration, as a positive labor supply shock, should increase the return to capital and spur business investment, particularly in areas that receive large immigrant inflows. The results indicated that immigration increases the business growth rate by boosting business survival and raises employment by reducing job destruction, largely driven by less-educated immigrants. As a result of lower labor and search costs, this spurs to capital investment and economic growth in the medium to long term.

Lenders and vendors are grappling with office space, and office space needs, if and when they bring people back to working together. WFH versus WTF: know the difference! Millions around the nation are now working from home (WFH) according to an MIT report, 34 percent or more of Americans who had previously commuted to work said that they were working from home. According to a University of Chicago estimate that 34 percent of people have the capacity to work from home based on the nature of their occupation, that means we’re pretty much at the point where everyone who can, is. Previously, only about 4 percent of the U.S. workforce worked from home half the time or more. Even as early April the smart money is saying that this will get a lot of the people trying it out to come out and say that they want to do this more, and there may be a significant shift ahead for how companies handle their office environments. The consulting firm Global Workplace Analytics projects 30 percent of people will work from home multiple days per week within a few years, and that this unexpected situation is releasing some pretty pent-up demand for such flexibility.

Prices for lumber and plywood are skyrocketing thanks to a boom time in improvised expanded outdoor seating in restaurants, as well as a surge in do-it-yourself projects. On July 8, the spot price per thousand board feet of lumber was $469.40, up from the lows seen in early April when the same amount of lumber was going for a low of $264.10. That 80 percent increase is above the pre-pandemic high of $463.00, a price hit during a hot home-building market. With restaurants building outdoor decks on the fly around the world, orders are up 40 percent at a Pittsburgh company that makes the chemicals to treat wood for decks.

Of course sports are in shambles. The Ivy League cancelled its football programs for the autumn. The XFL was a start-up football league that played all of five games in its most recent first season, but was forced to fold because of widespread shutdowns and also a curse on the concept of the XFL. The company outlined plans to sell the league, using a $3.5 million loan offered by founder and WWE Chairman Vince McMahon to sell the IP by July 15. If you’re in the market, it’s not often that a sports league goes up for sale; the XFL’s name, trademarks, slogan, and eight teams (all owned by the league directly, including their merch, equipment and individual IP rights) are up for grabs. The XFL had roughly $5.6 million cash on hand, and may need to burn some of that before hitting up Vince for a loan. XFL season tickets, costing $100 to $600 each, need to be refunded, but one can only assume they knew the risks of buying season tickets to the XFL, essentially the sporting equivalent of buying the stud rights to a mayfly.

Remember mortgage conferences, and hotel breakfasts, where there would be bananas? The Philippines produced about 20 percent of the world’s banana shipments in 2019, and in Asia the country accounts for 90 percent of banana export volumes. The problem? The main island, Luzon, has been locked down since mid-March, and bananas need to be harvested every day or else they’ll spoil on the tree. Right now, projections are that exports will be down 40 percent this year, down to 2.5 million tons of bananas from 4 million last year. Know that banana bread has trounced its competitors as comfort food during quarantining.

In 2015, U.S. sales of hard seltzer were roughly $6 million. By 2019, those wrapped at nearly $1.7 billion, having cemented their place in the beverage landscape by appealing to young people who wanted to drink, but not drink a ton of calories. Overall, they’re still maintaining a 215 percent growth, and part of that is the various beer colossi roaming the countryside that see their market share diminishing and desire some of the action: Bud Light Seltzer joined the market, as has Pabst Blue Ribbon’s Stronger Seltzer. As far back as April reporters saw the developments starting.

And plenty of people in our residential lending business play golf. It turns out that there are fewer every year, and many of those in business have temporarily closed. Dartmouth closed their golf programs yesterday. According to an industry survey, early in the pandemic a majority of golf courses in the United States remained open for business. Indeed, online bookings of tee times in the first quarter were up 10 percent from last year, and only a few states in the Midwest, Northeast and Pacific coast have statewide enforced closures. As of April 10, just 45.2 percent of 5,350 U.S. courses surveyed by GolfNow had closed up shop, and as recently as late March that was in the mid-20s percent.

His request approved, the CNN News photographer quickly used a cell phone to call the local airport to charter a flight.

He was told a twin-engine plane would be waiting for him at the airport.

Arriving at the airfield, he spotted a plane warming up outside a hanger.

He jumped in with his bag, slammed the door shut, and shouted, “Let’s go!”

The pilot taxied out, swung the plane into the wind and took off.

Once in the air, the photographer instructed the pilot, “Fly over the valley and make low passes so I can take pictures of the fires on the hillsides.”

“Why?” asked the pilot.

“Because I’m a photographer for CNN,” he responded, “and I need to get some close-up shots.”

The pilot was strangely silent for a moment.

Finally he stammered, “So, what you’re telling me, is…You’re NOT my flight instructor?”

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, “Mortgage Outlook: What if it is Cloudy?”, focused on the current political climate. If you have the 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. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

 

July 10: Ops, LO, AE jobs; servicing, lead, marketing products; flood of conventional conforming changes

Bubonic plague in China? What’s next, frogs falling from the sky? Water turning into blood, darkness for three days? A big bank requiring $1 million in your account for some retail jumbo refis? Oh wait… that happened. (That’s one way to manage capacity.) Ivy League football has been yanked, and hurricane season is approaching in the Southeast with the periodic rushes to buy plywood and drinking water. We already have our hands full with temporary lay-offs and cutbacks turning into permanent job losses, something that the Federal Reserve has been trying to avoid. For good news, lenders are focused on “tappable” home equity topping $6.5 trillion, which is a record per Black Knight. One official noted that with mortgage interest rates hitting record lows, 90 percent of homeowners with tappable equity now have first lien rates above the prevailing market average. And Black Knight’s research suggests that cash-outs accounted for just 42 percent of refinance loans in the first quarter, roughly half of what was seen at the recent high in Q4 2018 and the lowest such share since Q1 2016. LOs: Go get ‘em!

Employment and transitions

Prime Choice Funding (PCF) is adding operations and sales staff to support both our Retail and Wholesale divisions and will continue growing throughout 2020! PCF is looking for a VP of Operations, a Credit Manager, Underwriters, and sales professional. Being an aggressively priced lender in the industry, we offer an aggressive comp plan and support. The company offers competitive compensation, outstanding benefits, great culture, and state-of-the-art technology. For more information or to submit your resume,  please contact Join Team PCF.”

Norcom Mortgage’s Area Manager, Buddy Moore, is continuing Norcom’s rapid growth in Florida. Norcom is approved by Ginnie, Freddie, and Fannie, and owns its servicing portfolio. Norcom’s innovative systems and total marketing support have guaranteed their loan officers and branch managers growth. If you are a driven, self-starting, entrepreneurial Loan Officer, ready to take the next step to becoming a Branch Manager, please reach out to Buddy Moore today.

“Looking for a company offering continuous growth, a full-scale marketing strategy, continued training, career improvement courses? At Carrington Mortgage we offer a complete suite of products including FHA, VA, FNMA, FHLMC and a robust menu of loan programs which has further fueled our growth. We are currently recruiting for an experienced AEs with FHA and VA experience for the Orange County, California market. This position comes with an existing account base!” If you feel your sales skills and experience would be a fit with Carrington, please email John Cervantes.

NewRez Wholesale is hiring experienced Account Executives as well as Operational positions nationwide. As a Top Ten Wholesale Lender, NewRez offers a large national footprint with robust territories, dedicated broker support, leading technology, and innovative marketing tools that create an end-to-end customer experience lasting through in-house loan servicing. If you bring an entrepreneurial spirit and proven track record in sales or operations, contact Cathy Fox or Jennifer Mercedes to learn more about growth opportunities at NewRez.

“At Mr. Cooper, we hold the honor of being a “Great Place To Work”, and we’re looking to make it even greater by adding great, new talent. We’re significantly building out our teams across the board. Open positions include Underwriting Managers, Underwriting Team Leads, and Underwriters in both our Correspondent (Delegated and Non-Delegated) and Direct-to-Consumer divisions – just to name a few. We’re also looking for a dynamic Client Relationship Representative for our Correspondent Non-Delegated division as well as Sales and Processors/Processing Managers in our DTC division. If you’re ready to bring your experience to our great team, we want to talk to you! Contact Pamela Peak to learn about all opportunities. Mr. Cooper is the largest non-bank servicer with over 3.8 million customers, a portfolio of $600B+ and 9000+ Cooper colleagues nationwide. Our culture, our technology, and our compelling benefits package are just some of the offerings that make us great. Visit our Cooper Career page for more.”

Kristy Fercho is joining Wells Fargo at the beginning of August as the new head of Wells Fargo Home Lending and replacing Michael DeVito who is retiring. Mr. DeVito had a short tenure at Wells of only 23 years – a virtual rookie. Kristy’s had 18 years of leadership via Flagstar Bank and Fannie Mae, along with being the vice chair of the board of the Mortgage Bankers Association, vice chair of the MBA’s Diversity and Inclusion Advisory Committee, and a long list of associations with various organizations and of various accolades. Wells Fargo will be chairing the MBA!?

Mortgage Connect LP announced the addition of 26-year vet Gabe Minton as Chief Information Officer. Gabe has made a name for himself as an expert system architect and was a founding MISMO member.

Indecomm Global Services announced that Narayan Bharadwaj has joined the company as SVP of Automation responsible for automation strategy and execution with a goal of transforming the operations and technology landscape of the mortgage industry.

Guaranteed Rate Affinity, a mortgage origination joint venture between Guaranteed Rate and Realogy Holdings Corp. appointed Jim Anderson as SVP of Strategic Growth to “strengthen the company’s partnerships and leverage in the marketplace.”

Broker & lender services & products

Plunging house prices (CoreLogic HPI Forecast) makes understanding borrower behavior & attitude (i.e., willingness to pay) paramount. Houses don’t pay the mortgage, people do. And socioeconomic uncertainty, falling house prices, and vanishing equity make “some” people behave anomalously, regardless of their income & asset levels. Heck, overstated (and understated) credit scores are daunting enough on lenders. Throw falling house prices into the mix, and the actionable Mortgage Risk & Fairness Score is the only solution. MRS is a powerful, predictive & prescriptive, data-driven “intelligence” tool that enables lenders, servicers, investors, and MI’s to get to know borrowers better, holistically. Then, use that deep, incremental intelligence – propensity, segmentation, ability, resiliency, and “willingness” to pay – to better manage crisis-cycle credit risk & blind spots, latency, financial inclusion, pricing, capacity, regulation, and servicing. MRS is plug-n-play, validated (top 10 bank) and vetted (CFPB, OCC, Fed). Click for Info.

 

Modern real estate experts and mortgage lenders must adapt the way they identify and engage their audiences to meet the unique challenge of a quickly changing landscape. DataTree Lists is a powerful new customer acquisition and marketing list solution for marketers, list brokers and lead consultants. DataTree Lists provides highly targeted, direct marketing leads sourced from the largest, most comprehensive database of U.S. property and homeownership information, including public record data covering nearly the entire U.S. housing stock, over 7 billion recorded document images, title plants, homeowner association (HOA) information, listing data and more. From equity to new movers, foreclosure properties, distressed homeowners and more, quickly identify and reach specific and unique target markets, including advanced segmentation by available property equity, propensity scoring, new movers listing status, tax and foreclosure status, and loan and financing specifications. See what DataTree Lists can do for you.

Mortgage servicing disruptor Sagent adds two big hires. Tim Von Kaenel will lead product vision and M&A as Chief Innovation Officer. Tim ushered in the digital mortgage era by bringing push-button, phone-based simplicity to mortgage originations as head of product at LoanDepot and Cloudvirga. “After being on the front lines of modernizing originations, it’s a natural progression to expand this vision to servicing,” said Tim. Also Shawn Stroud joins Sagent from mortgage compliance and ops giant Computershare as Director of Information Security to keep America’s largest banks/lenders secure and in real-time compliance with real-time policymaking. These are the latest in a series of exec hires as CEO Dan Sogorka and Sagent redefine homeownership for servicers, consumers, and America’s housing system. Contact business development head David Doyle to discuss partnership opportunities, or contact sales head Hernan Lardiez to discuss Sagent’s cloud-based servicing suite.

Agency shifts

The FHFA just announced another extension, to August 31 from July 31, on several of its loan origination flexibilities “to ensure continued support for borrowers during the COVID-19 national emergency.” These include alternative appraisals on purchase and rate term refis and alternative methods for documenting employment and income.

Bloomberg reported that “the U.S. Supreme Court agreed to decide (in October) whether investors can challenge the 2012 agreements that let the federal government collect hundreds of billions of dollars of Fannie Mae and Freddie Mac’s profits. The justices said they will hear an appeal by President Donald Trump’s administration of a ruling that would force the government to defend against a shareholder lawsuit. The investors say the agreements exceed the authority of the Federal Housing Finance Agency… A ruling in the investors’ favor would give them a chance to collect a massive settlement.”

Fannie Mae published a new Lender Letter (LL-2020-10), Usage of Redesigned Form 1003 Before January 2021, to provide guidance to lenders on use of the redesigned Uniform Residential Loan Application (URLA/Form 1003). Also, Fannie Mae and Freddie Mac have published updated Spanish Translation Aids to assist borrowers in completing the English version of the redesigned URLA, and an updated Uniform Loan Application Dataset Mapping Document.

Fannie Mae released an overview of the process for titling manufactured homes as real property in all 50 states. Such titling is a critical step in making a mortgage on a manufactured home eligible for sale to Fannie Mae.

To meet Agency delivery requirements, Wells Fargo Funding updated its maximum loan age for conventional Conforming Loans from 10 months to four months effective for loans purchased on or after June 16th. (Wells Fargo Funding had aligned its effective date for the previously communicated COVID 19 temporary flexibilities with the extended date the Agencies announced on May 5, 2020. Temporary flexibilities are extended to include Loans with application dates on or before June 30, 2020: Age of documentation, market-based assets, and self-employment verification – conventional Conforming Loans. This also includes temporary flexibilities for verbal VOEs and appraisals for conventional Conforming Loans. In addition, Wells is aligning with Agencies’ temporary appraisal flexibilities for new construction properties. However, Wells is not aligning with the Agencies’ temporary policies on Remote ink-signed notarization (RIN), the use of RIN is ineligible for Wells transactions.)

Flagstar issued a memo regarding Conventional and Government Employment Verification and Income Updates Due to COVID-19.

Arizona Industrial Development Authority (AzIDA) is updating its program income limits to align with Fannie and Freddie HFA limits. AzIDA will have a pipeline of transactions to work through with different income limits based on the specific casefile date. Keep these new limits in mind when talking with your borrowers/potential borrowers. For more information, view the Mountain West Financial Wholesale.

United Wholesale tightened its self-employed guidelines, reflecting Freddie and Fannie’s changes. Audited P&L and/or bank statements are key for the self-employed.

Effective for loans with application dates on and after June 3, 2020, Caliber Home Loans released updates to its published COVID-19 Overlay document for Conventional and USDA to align with recent Fannie Mae and Freddie Mac Bulletins. For complete details and requirements, review the revised COVID-19 Overlay document published in AllRegs.

loanDepot Wholesale/Correspondent posted Freddie Mac Home Possible® and Fannie Mae HomeReady® Income Limit Updates.

PRMG’s Product Update 20-34 includes clarification applicable to conventional loan application date in conjunction with the “current status” of the borrower’s existing mortgage. LPA approved loans, Agency Fixed, Agency LP Fixed and ARMS, Home Possible, updated requirements in alignment with Freddie Mac for properties that are eligible for property waivers.

AmeriHome has aligned with Freddie Mac changes listed in Bulletin 2020-13 with the exception of the upcoming Freddie Mac SOFR Indexed ARM products. AmeriHome Credit Administration is currently reviewing. Updates will be provided as they become available.

Plaza Home Mortgage announced that the .750 loan level price adjustment for all conventional cash-out refinances (announced on May 4, 2020) will be reduced to .250 for all new locks. The additional cash-out LLPA continues to be in addition to any other standard cash-out price adjustments.

FCM lifted its temporary conventional cash out overlay. Details can be found in its Wholesale Announcement 2020-28 and Delegated Correspondent Announcement 2020-26.

FAMC Correspondent National Bulletin 2020-24 includes information on COVID-19 Updates announcing temporary guidance on Conventional Products Self-Employed Borrowers and USDA-RD Product Tax Transcripts.

In June MWF sent out Bulletin #20W-069, saying that temporary Self Employment guidance during COVID-19 will be rescinded in its entirety.

The PennyMac Correspondent Group posted Announcement 20-43 regarding Fannie Mae and Freddie Mac Updates and an Amendment to previous PennyMac Announcement.

Previously, PennyMac announced it would not purchase any delegated or nondelegated conventional loan where the appraisal has a Collateral Underwriter (CU) score of 5. PennyMac has rescinded that announcement (#20-23) and will accept appraisals with the same requirements as prior to the announcement. Correspondents are encouraged to work with appraisers and their AMCs to resolve issues that result in high-risk scores. PennyMac will complete an internal appraisal review of all appraisals with CU 5s and will determine if the appraisal or property is acceptable

PennyMac is updating the requirement for a verbal verification of employment to be required no earlier than 10 business days prior to close for all conventional Fannie Mae and Freddie Mac loans. Please note, due to the ongoing pandemic and related economic concerns, PennyMac recommends the VVOE be completed as close to the note date as possible.

Recent Flagstar Bank announcements include QM Points and Fees Lock Enhancement, Temporary Eligibility Requirements for Conventional Purchase and Refinance Transactions, Temporary eligibility requirements for self-employed borrowers based on the announcements made by Fannie Mae and Freddie Mac.

AmeriHome Mortgage Company has adopted recent COVID-19 interim Agency guidance from Fannie Mae and Freddie Mac for self-employed borrowers. Guidance updates include changes to minimum additional income documentation requirements. Reviewing YTD P&L statements, business account statements, and other relevant documentation as well as calculating and establishing stable monthly income. Note that loan proceeds from the Small Business Administration (SBA) PPP or any other similar COVID-19 related loans or grants are not considered business assets.

Capital markets

MIAC Capital Markets Group is pleased to represent a seller of $5.27 Billion FNMA MSR. The seller is a highly capitalized institution who is liquidating their mortgage exposure. The portfolio has a nationwide footprint, an average loan size of $117k, weighted average rate of 4.082 percent and a weighted average loan age of 53 months. Bids are due 7/21/20 at 5PM ET. For additional information including the offering memo and detailed loan data, please contact your MIAC sales representative at 212-233-1250 or $5.27 Billion FNMA MSR.

It was another rally yesterday for U.S. Treasuries and MBS, sending yields on the 10-year note and the 30-year toward eight-week lows due to a poor showing in the stock market, good demand for a 30-year bond sale, and an unexpected jobless claims number. Initial claims decreased by 99,000 to 1.314 million, a bit better than feared, but still well up from February and over 1.1 million higher than at this point a year ago. Continuing claims fell but were still above 18 million. Less bad, but bad. Freddie Mac revealed new lows in both the 15- and 30-year fixed rates of 2.51 percent and 3.03 percent, respectively. In other MBS-related news, the FHFA announced another 1-month extension (to August 31) to some loan origination flexibilities due to coronavirus related hardships.

Today’s calendar is done and dusted, with June PPI (weak at -.2 percent, ex-food/energy -.3 percent). The day’s two MBS FedTrade operations will see the Desk purchase up to $4.7 billion starting with up to $2.9 billion UMBS30 2 percent through 3 percent followed by $1.8 billion GNII 2.5 percent and 3 percent. Daily Fed support is set to increase starting next week based on the paydowns in the Fed’s portfolio. We begin the day with Agency MBS prices up/better by .125 and the 10-year yielding .57 after closing yesterday at 0.61 percent.

I have a scary math joke, but I’m 2² to say it.

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, “Mortgage Outlook: What if it is Cloudy?”, focused on the current political climate. If you have the 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. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

 

July 9: QC, LO, reverse opportunities; sec. mktg., marketing products; compliance news: is a “like” a “thing of value”?

United Airlines may lay off 36,000? Bed, Bath, and Beyond closing 200 stores? Walgreen’s cutting 4,000? Yup. Lower rates won’t save those jobs, but we’ll have low rates for a long time. Things are different for residential lenders. When we began 2020, who thought things would be where they are now in our biz to the point of me receiving this note from the CEO of a well-known retail lender: “We’re seeing crazy volumes and profits. Controlling overhead and making money is not our problem. My LOs have been working twelve hours a day, seven days a week, as have processors and many of my Ops staff. Burnout is the problem. The days of aggregators pricing servicing at zero are gone, although few want low credit score product, spec pool bids have come roaring back, fears of escalating forbearance problems have temporarily subsided, our margin-related cash crunch has gone away, our strategy of retaining the servicing on a certain portion of our loans is paying off. There is worry about pools of servicing hitting the market later in the year, but for now, let the good times roll!” What has also caught the attention of the biz is the release of mortgage companies who took advantage of the PPP (click here for a link to the story, which has a link to the spreadsheet). Times were different a few months ago, when chaos was the norm, margin calls reigned, investors were bailing, pricing was all over the map, and cheap, well-intended money was being offered.

Employment & transitions

In August of 2019, Caliber Home Loans revealed its fully digital and secure online loan application, BOLT. Our enhanced digital loan application provides the ultimate homebuying experience for customers. BOLT is faster and simpler than competitor’s digital platforms, operates across all devices, and involves an intuitive and seamless experience. Since launching BOLT, Caliber’s new digital loan application platform has attracted over 100,000 loan applications! Reaching this milestone is an example of Caliber’s commitment to building innovative and cutting-edge technology. Don’t have FOMO; join team Caliber and support the optimization of the mortgage lending experience for borrowers and loan officers!

Two industry veterans with existing highly profitable reverse mortgage group are looking to relocate the group to large branch lender. “Do you have a large loan officer sales force? If so, we can provide you with the reverse volume/solution. Reverse volume at huge documented net profits. Our system works extremely well in the branch lender environment. Our model is completely unique to the industry. This is not a referral model. Small group (team of 5) originating high quality, high revenue reverse loans with to no risk and with very little upfront expense. Please email Chrisman LLC’s Angela Nixt  to receive more detailed information on this very profitable opportunity.”

 

“At Home Point Financial, the key to success is our people. We believe that our associates are the driving force in creating a better borrower experience. We had a record first half of 2020, and we couldn’t have done it without our talented team. To continue hitting our targets, we’re hiring hundreds of underwriters and operations positions at every experience level. When we take care of our associates, they take care of our customers. Join our team, get involved, and reap the rewards! For immediate consideration, please send your resume directly to John Eite.”

Agility 360, a mortgage-centric recruiting and project staffing firm, continues to see unprecedented need for qualified originations and servicing staff. With the pressure of historically low rates, re-bounding demand for purchases, and increasing delinquencies, finding qualified mortgage personnel can be difficult, but finding great talent can seem almost impossible. This is when Agility’s nationwide candidate database and our proprietary methodology can deliver results and find that unique fit between employer and employee. Whether you need immediate direct hires or temporary contract personnel, Agility always finds “the right person for the job”. Leveraging over a decade of industry experience, Agility has created the most sophisticated recruiting and talent management network in the mortgage industry. If you’d like to learn how we can help, please contact Raj Sharma at 469-208-6337.

 

Highlands Residential Mortgage announced Scott Brown has joined the company as Sr Vice President and will be a part of the National Production leadership team. For over 25 years, Scott has served in a broad range of positions with some of the top lenders in the country with his extensive experience in sales, operations, and construction lending. Scott is a frequent guest speaker at industry seminars and conferences and has always been passionate about helping those around him succeed at the highest of levels. “Scott Brown has been a well-respected, versatile leader in our industry for many years. We are extremely excited to add his outstanding talent and skills to our growing team at Highlands Residential Mortgage.” said Danny Deaton, EVP-National Production Manager. Highlands has experienced tremendous growth for seven consecutive years and Scott will play a key role in supporting continued expansion efforts.

Coming off of their third straight month of record volume, AmeriHome Mortgage continues to staff up, and is hosting weekly virtual career fairs! AmeriHome is looking for a Training and Development Manager and an In-Line Quality Assurance Analyst Manager in either Westlake Village, CA or Dallas, TX. It also has many more opportunities available in mortgage operations, loan review, underwriting, and more, both full time and part-time in Southern California, Texas, and remote! Visit its careers page to view all open positions, and submit resumes to jobs@amerihome.com to schedule an interview. You can also follow AmeriHome Correspondent on LinkedIn to keep up with the latest updates, resources, job openings, and more, including its Clients & Communities series! This series highlights AmeriHome clients finding amazing ways to help out in their local communities during these challenging times. If you’re not already signed up to do business with AmeriHome and you’re interested in more information email CLsales@amerihome.com.

myCUmortgage announced that Michael Christians has joined the organization as its VP of Mortgage Risk Management to lead the development and execution of comprehensive mortgage risk management strategies that “deliver on the vision, mission and brand promise of myCUmortgage” and drive the mortgage risk management framework for the CUSO.

 

Sagent appointed Tim Von Kaenel as Chief Innovation Officer and Shawn Stroud as Director of Information Security. Tim will drive Sagent’s product vision and M&A to continue to bring push-button, phone-based simplicity to mortgage servicing. Shawn will join Sagent’s innovation, engineering, and policy teams.

Lender & broker products & services

 

Staying compliant is hard, but it doesn’t have to be. The makers of AcuClix have developed AcuAuditor, a groundbreaking cloud software optimized to manage Marketing Service Agreements, Desk Rentals, and other co-marketing agreements. If you have marketing relationships with realtors, builders, or others, how are you monitoring compliance?  If your co-marketing partner is not performing those services, this could be a violation, because RESPA Section 8 requires payment for services actually rendered. And if you’re not using marketing agreements because of risk concerns, AcuAuditor can now let you use these with confidence! AcuAuditor’s automated features help you make money and be audit-ready, whether you have just a few or hundreds of agreements. Take advantage of AcuAuditor’s limited-time promotion for Rob Chrisman readers, and click here to schedule a demo or for more information contact info@acuauditor.com.

Maxwell’s digital mortgage platform continues to make waves in the industry for small to midsize lenders doing $300M or $3B. Their point-of-sale technology has expanded quickly, providing meaningful benefits for the 200 lenders who have partnered with them. “Yes, we’re a point-of-sale and now, with our scale, our technology allows us to leverage the power of our community of lenders to offer access to value previously only accessible by the largest lenders,” says John Paasonen, the founder and CEO. “As we continue to invest millions in our technology, we’re committed for the long-term to making our lender partners successful.” With over billions facilitated through the platform every month, Maxwell’s growth has been a testament to their commitment to partnership. Learn more about Maxwell’s unique offering in the digital mortgage space.

 

Ever heard the saying, “Give a man a fish and he’ll eat for a day, but teach a man advanced hedging strategies and he’ll eat for a lifetime?” Now lenders can tap into a lifetime supply of secondary marketing education with MCT’s Learning Center. Improve your secondary operations and understanding of the mortgage industry with information compiled in the form of webinars, whitepapers, market commentaries, and more! New content is regularly emerging as quickly as new insights and industry trends. Most recently, MCT’s latest whitepaper The Links Between MBS Markets and Loan Prices addresses misconceptions on how mortgage prices are generated. Join MCT on July 16th at 11AM PT for a webinar on Advanced Hedging Strategies. MCT’s Director of Analytics, Bill Berliner, will discuss the use of human intuition as a hedging model, the implications of current securitization practices on hedging/trading, and how to address current market quandaries.

Remember…. Compliance?

Is it true that some RESPA enforcement regulators are finding RESPA violations, claiming that a “like” on social media post is “a thing of value”? Under the proposal, the high-cost mortgage escrow exemption would be expanded to banks and credit unions with assets of $10 billion or less. In addition, these institutions must have originated 1,000 or fewer first mortgages on owner-occupied properties in the preceding calendar year. At the same time, this new exemption, which comes under the Truth-in-Lending Act, is narrower than the existing one in several ways, the CFPB’s notice said. It is limited to insured banks and credit unions, while the existing exemption applies to any creditor (including a non-insured lender) that meets its criteria.

The CFPB has published its Spring 2020 rulemaking agenda: it is pushing forward on activity during the pandemic, although it does not appear to expect to have much finalized before the end of the year. It issued a final rule revoking the mandatory underwriting provisions of the 2017 Payday Lending Rule.

With new coronavirus outbreaks across the Sun Belt in June and July, the logical question for mortgage companies to ask is how to prepare for a second wave of the virus. Jonathan Foxx, Chairman and Managing Director of Lenders Compliance Group, recently weighed in. In addition to publishing a Business Continuity Plan earlier during the pandemic, his most recent writing includes a ten-step plan. I’ll list his ten recommendations, but advise you visit the above link for the in-depth discussion. Preparation, proactivity, the business continuity plan, internal communication, external communication, absenteeism, crisis management, geography, drills, and recovery. Being prepared as a company can make or break this next stage of response and recovery.

Is it possible to send out Closing Disclosures (CDs) prior to loan approval from underwriting since this may help borrowers to cooperate in providing any remaining documents needed and retain them through closing? The thought is that sending a CD before final underwriting approval could mislead borrowers into believing their loan has been approved when it has not, but not sending could presumably put loan officers at a disadvantage. The truth is that there are fundamental risk management issues associated with implementing such a procedure, even if legally permissible to issue the CD before a “clear to close.” TILA-RESPA Integrated Disclosure Rule (“TRID”) contains extremely complex disclosure rules, based on the model that CDs are normally not going to be issued until after “clear to close.”

Altering that model pushes the envelope on applicable compliance rules and consumer expectations and therefore definitely increases the risk that consumers may be misled. Remember, underwriting may necessitate changes in the loan product or interest rate, which may require not only a revised CD but also a delay in closing to permit the required three-day waiting period to elapse. Additionally, issuance of the CD cuts off a lender’s ability to issue a revised Loan Estimate (“LE”). Thus, issuing the CD before “clear to close” means that you may not be able to issue a revised LE to reflect any increased loan costs that come up during underwriting, exposing you company to greater risk of penalties for incorrect initial disclosures. Some lenders attempt to address this situation by creating specialized procedures linked to the underwriting process which make it virtually certain that any loan that does qualify for an early CD will in fact be approved by underwriting without changes.

Finally, the disclosures associated with adjustable rate loan transactions are going to be much more complex and time sensitive than those for simple fixed rate transactions, and purchase transactions usually have much tighter time frame requirements that can be impacted by additional waiting periods resulting from the necessity of issuing a revised CD versus a refinance transaction.

Mortgage Sentinel is a Philadelphia-based partnership between LodeStar Software Solutions and RDAssociates, Inc., that delivers “secret shopping” services that empower mortgage lenders to self-monitor their services to prevent compliance infractions. The service utilizes proprietary research techniques, in-depth analyses, and hands-on training to improve the interactions between mortgage originators and potential borrowers. Mortgage Sentinel specialists will work with mortgage lenders in advance of quality assurance or “secret shopper” audits to understand all policies and procedures in place to support compliance efforts.

Capital markets

Dog days of summer… Considering the big news yesterday, as far as MBS were concerned, was a well-received 10-year Treasury auction which came at a record low yield, that should tell you there wasn’t much news of note for markets to digest. Atlanta Fed President Bostic said softening data may warrant more action. Today’s economic calendar began with initial jobless claims for the week ending July 4 (-99k to 1.314 million). Later this morning brings May wholesale inventories and sales and a $19 billion 30-year Treasury bond auction. The NY Fed will conduct two FedTrade purchase operations totaling up to $4.4 billion starting with $1.5 billion UMBS15 2 percent and 2.5 percent followed by $2.9 billion UMBS30 2 percent through 3 percent. We begin the day with Agency MBS prices unchanged and the 10-year yielding .65 after closing yesterday unchanged… at 0.65 percent.

Thank you to STRATMOR’s Mike Seminari who sent, “I think we need to stop calling it ‘working from home’ and start calling it ‘living at work’.”

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, “Mortgage Outlook: What if it is Cloudy?”, focused on the current political climate. If you have the 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. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

July 8: U/W, LO, processor jobs; lead, broker, AMC products; upcoming training; a peak at Rocket Companies

Crazy times. Brooks Brothers filed for Chapter 11 bankruptcy. Rocket Companies filing for an IPO. Genworth Mortgage Insurance completing an excess of loss reinsurance transaction. It is easy to argue that it is the fear of the virus that is impacting economies around the world, not the virus itself, slowing economies and keeping rates low. People learn to adapt, right? And that encourages a bounce back: “adaptive economic normality.” The virus is certainly pushing the advance of technology in the residential lending industry as individuals, lenders, and title companies have changed ways of doing business. (Here’s how to “Rickroll” your next Zoom meeting.) Real estate agents have adapted, as have buyers, and sales are strong at reasonable price points. Most housing markets are solid, especially anywhere else besides urban cores which are seeing people leave. What isn’t solid is the value of the vehicles Car and Driver chose as the “worst of all time.” (Hey, I’ve owned a couple of those!)

Jobs

Mortgage Confidential gave me access to opportunities that I did not know existed and found me the perfect opportunity for this stage of my career.” (Area Sales Manager in North Carolina.) “Mortgage Professionals love working with Mortgage Confidential! We are the #1 resource for Mortgage Professionals to find opportunities and to maximize their value. We give you the option to confidentially put yourself on the market and control the Lenders and Banks that you want to engage with. We work with professionals in all facets of the industry: Sales, Operations, and even Executives have all been very pleased with the experience. Banks and lenders, please reach out to us on our Lender Access Page to see if we can help you grow your team. Mortgage professionals feel free to reach out to see how we can help you!”

 

“During this chaotic time, Thrive Mortgage has maintained its commitment to supporting and improving our communities as well as serving our clients. One such commitment is our support for Defenders of Freedom, an organization focused on supporting veterans and providing treatment options for those suffering from PTS and Traumatic Brain Injuries. ‘Supporting Defenders of Freedom is one of the best initiatives we have launched this year,’ stated James Duncan, Thrive’s Director of Marketing. ‘It’s more than a financial commitment for us. They have been a part of our family and we will continue to support them for many years to come.’ The annual golf tournament, one of the organization’s biggest annual fundraising events, is scheduled for 9/15/2020 in Dallas. All are welcome to register. For registration information, or to learn more about supporting Defenders of Freedom, please visit its website or reach out to us at info@thrivemortgage.com.”

 

Intelliloan.com an established mortgage lender is seeking Experienced, Smart, and Friendly Loan Processors. Work onsite in our Irvine, Las Vegas, Scottsdale, or Dallas locations, or remote from your home. Family-owned and in business for 25 years, we have a keen focus on treating our team members like family. With manageable pipelines of approximately 50 loans while funding 2/3 of the pipeline monthly, you can make over $150K while setting your own hours. Management lets you set your own pace, working as much or as little as you like. We provide best in class technology and tools to keep you working efficiently. We require 2 years minimum loan processor experience.  Benefits Include, Company Match 401K, Healthcare, Dental, Vision, Life and Disability Benefits. Big Company Benefits. Small company feel. A place where everyone knows your name. Email us for information.

If you are a PHENOMENALLY talented UNDERWRITER, Kind Lending wants to talk to you. Are you tired of a working with inefficient and slow technology that freezes on you?  Are you tired of working with a leadership team that doesn’t listen to what would make your job easier? Well then, it’s time to make a switch to the KIND side. Under the leadership of Glenn Stearns and Yvonne Ketchum, they value an employees’ ideas, find ways to continually improve technology to eliminate system frustration, and support a strong work-life balance. Kind Lending is truly building a one of a KIND team and is looking for Underwriters that value their relationships with brokers as much as they do. If you are looking for an excellent employer that cares about their employees, you want to talk to Kind Lending right away! Apply on the website at kindlending.com or send your confidential resume to president, Yvonne Ketchum.  It’s an exciting time to join the KIND Movement!

Broker & lender products & services

Bringing Service Back to Mortgage Servicing: “At ServiceMac, we believe mortgage servicing requires real service, the type of service that revolves around helping customers rather than updating notes in a system. Our user-friendly digital platform provides full transparency that allows you and your customers to see exactly what we see. This empowers your employees to be self-sufficient and creates trust and accountability with the customer. The ServiceMac Control Tower is a state-of-the-art mortgage servicing quality assurance platform that enables servicers to monitor their portfolio for adherence to applicable federal and agency requirements in real time. Most importantly, our Customer Operations Specialists always pick up the phone when questions inevitably arise or hiccups occur. Please contact Mike Vowell to learn more about the ways we’re bringing service back to mortgage servicing.”

Thanks to Dodd-Frank, lenders are required to ensure that their appraisers are independent and not subject to influence when performing evaluations. Many lenders use an AMC because of this, but they still want orders to go to appraisers they trust and have a relationship with. This makes sense, but there’s a lot of confusion out there as to what’s acceptable and what crosses the line in terms of the regulations. Triserv has published a new article outlining what lenders can and cannot request in terms of using their favorite appraisers. Short version: you can have your cake (sort of), eat it too, and remain compliant. This information – as well as other resources about managing appraisals during this challenging time – is provided by Triserv, a 50-state AMC that has client-specific, dedicated teams on both coasts offering high-touch, personalized service. Contact Triserv at learnmore@triservllc.com.

 

Stearns Wholesale recognizes the importance of an efficient, customized experience to serve more borrowers effectively and keep your referral partners euphoric. In a recent release, the popular Accelerator program has expanded eligibility criteria. Streamlining the process and improving the price on popular scenarios with the same best-in-class fulfillment was the driving force behind this development. New criteria include up to 90% LTV just requiring the borrower is a W2 wage earner that owns no other REOs and has no major derogatory marks. Better value, faster, sustainable. Click here to learn more about this program or connect with a Stearns Account Executive.

“We know how to make those phones ring! ‘You know, PRMI is just a powerhouse in the mortgage industry now. And Monster Lead Group has been an unbelievable partner. Monster knows what they’re doing, they know how to make the phones ring, they know how to generate business, but they also know how important it is to help us grow a brand at the same time. It’s a real marketing system. It’s not just sending mail. I think the consistency of the campaigns is what we rely on… Our cost per funded loan is about 50% of the industry average… So that story should be told. We’re able to grow and scale our operation because of the predictability of the Monster campaigns. That is what’s allowed us to get to this point.’ Monster Lead Group can help you achieve better results from your direct mail.”

Calyx is excited to announce that New York Times Best Selling author, tech entrepreneur & business guru Josh Linkner will be the keynote speaker at the upcoming Calyx Vision 2020 virtual user conference. Linkner’s live presentation, “Big Little Breakthroughs: How Small Everyday Innovations Drive Oversized Results,” will stream on Tuesday, August 18, from 11am – 12pm CT. His session will explore the power of inventive thinking and creative problem solving in day-to-day situations and will provide attendees with fresh perspective, inspiration, practical tools, and actionable advice that can be quickly and easily implemented at all levels. Don’t miss out, register today!

Training & webinars in the next week or so

National MI has posted its July 2020 webinar sessions. All webinar attendees will be entered in a random drawing and are eligible to win a National MI branded gift.

The California MBA’s Mortgage Tech & Marketing Committee is hosting a FREE webinar tomorrow, on July 9th at 11 am (PST) titled “Carrying Forward Digital Agility in the COVID-19 Recovery” on the differences between transactional digital and truly digital. “We will explore the new way customer relationships can be created, nurtured, and actioned in the context of the wither home ownership experience with a pair of Tavant reps ( Matthew Wood, Senior Director of Fintech Products, and Debi Roy, Director of Sales) as well as well-known industry guru Kevin Peranio, Chief Lending Officer at PRMG.  RSVP here.

IndiSoft is co-hosting with Hope Now, a national webinar to address the need for proactive collaboration on the part of servicers, non-profit housing, and state agencies to provide immediate and long-term assistance to consumers dealing with housing issues as a result of the Covid-19 pandemic. Register now for this Thursday, July 9th Webinar.

On July 9th, American Banker is offering a Web Seminar: Lessons learned: Shifting bank IT priorities as economies reopen.

Join MMA for a free webinar with Brent Widman on July 9th, Habits of Top Producers from 10-11:30AM CT.

Join MWF as List Reports’ Jon Cox, National Director of Strategic Accounts, discusses using flexible strategies to build and maintain growth in today’s ever-changing market. Register for Pivoting Your Strategy to Gain Profitability on Tuesday, July 14th 10AM-10:45AM PT.

Mortgage Bankers of the Carolinas and Arch MI are presenting a 2-part series, “Ten Tips That Turn the Tide in Your Favor: Ideas for Success in a Changing Market,” on July 14th and

July 21st. Register to learn a total of 10 tips in an ever-changing market.

Refinitiv’s Eikon Platform webinars can be used to stay on top of markets, help generate alpha, and enhance your ability to service your clients. CE credits will be provided for each course attended. Candlestick Charting: July 15th at 14:00 EDT: putting candlesticks in the context of market dynamics and will provide you with an understanding of the significance of a select number of bullish and bearish signals. (It is recommended that you take Discover Candlesticks Charting prior to this session.) Introduction to Technical Analysis: July 22nd at 14:00 EDT: Learn about the building blocks of technical analysis including the advantages and disadvantages and the underlying assumptions of the Dow theory, the different types of charts and their relevance, increase your understanding of trends, identify certain patterns, and discuss how these are interpreted in the market.

On Tuesday, July 14th, join the NMMLA No-Cost Virtual Luncheon with guest speaker, Genworth’s “That MI Guy”, Steve Richman, discussing the 9 Things To Embrace Today and Continue Doing When COVID Goes Away.

Plaza’s Webinar opportunities for the month of July include: July 13th: MI Misconceptions: How to present MI to Real Estate Agents and Consumers, July 15th: 9 Things To Embrace Today And Keep Doing When COVID Goes Away, July 20th: Connection to Close: Top Producers Mindset, July 21st: Plaza’s Condo Financing Options, and July 23rd: Plaza’s Reverse Mortgage Basics.

Ignition Sequence Started

Let’s cut to the chase. Are you ready to invest in 21% of Rocket Companies? Here is the Form S-1 for Rocket Companies. Quicken Loans, which will be the main subsidiary of Rocket Companies, was the largest mortgage originator in 1Q20.

The S-1 states that RKT had a 1Q20 market share of 9.2% up from 1.3% in 2009, and a mortgage servicing portfolio of $344 billion (UPB) making the company a top 10 mortgage servicer. With that comes 98,000 servicing clients (about 5%) on forbearance plans. For 2019 Rocket Companies had total revenue (net) of $5.1 billion and net income of $893.8 million, representing a 22% and 46% growth from the prior year, respectively. Over the same time period, adjusted revenue was $5.9 billion, adjusted net income was $1.3 billion, and adjusted EBITDA was $1.9 billion.

It is larger than PennyMac: Common equity totaled $3.65 billion at the end of 1Q compared to $2.36 billion of PennyMac Financial. And RKT’s financials show a strong record of profitability. Inside Mortgage Finance believes that it is the largest retail lender in the United States with $145 billion in originations in 2019 and $51.7 billion in the first three months of 2020.

Dan Gilbert will still be in charge, retaining approximately 79% of the combined voting power of Rocket Companies’ outstanding common stock and thus control over actions requiring approval of stockholders (election of the board of directors, amendments to bylaws, the approval of any merger or sale of the business, and so on).

Sexy stuff. Are United Wholesale, Freedom Mortgage, Caliber Home Loans, Fairway Independent, or loanDepot far behind?

Capital markets

There was a little “rally in the alley yesterday,” sending yields on the 10-year note and the 30-year bond to one-week lows, due to further coronavirus caution. While there is little question that the U.S. is seeing a spike in newly confirmed cases of the virus, there is ongoing debate as to what that will mean for the economy. Fortunately(?), more younger people are catching the virus, meaning the mortality rate will continue to fall and people will learn to “deal” with the disease until one or multiple vaccines arrive. As Atlanta Fed President Bostic said, the recovery may be “a bit bumpier than it might otherwise be.” As far as actual market moves go, MBS yesterday reacted to faster-than-expected June prepayment reports from the agencies. And the 10-year yield closed the day -3 bps to 0.65 percent.

In terms of economic releases, U.S. job openings unexpectedly increased in May as hiring surged to a record. The number of available positions rose to 5.4 million during the month from 5 million in April, according to the JOLTS report, concentrated in accommodation and food services, retail, and construction. The MBA reported the results of its latest forbearance survey, which showed the total forbearance rate ticked down to 8.4 percent as of June 28. Black Knight reported that about 25 percent of borrowers in those forbearance plans had made their June payment, implying an effective forbearance rate closer to 6.5 percent. The percentage of borrowers in forbearance plans who made payments was down from 30 percent in May and 46 percent in April. Additionally, about half of active forbearance plans were set to expire in June based on an initial 90-day period, but the extension option will likely be made available for most borrowers given the national forbearance option for GSE and Ginnie extends through March 2021.

The MBA also released its latest Forbearance and Call Volume Survey, which showed that the total number of loans now in forbearance decreased to 8.39 percent as of June 28. According to MBA’s estimate, almost 4.2 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the fourth week in a row to 6.17 percent, while Ginnie Mae loans in forbearance decreased to 11.72 percent.

Today we learned that mortgage applications increased 2.2 percent from one week earlier, per the Weekly Mortgage Applications Survey for the week ending July 3. The Refinance Index increased 0.4 percent from the previous week and was 111 percent higher than the same week one year ago, while the seasonally adjusted Purchase Index increased 5 percent from one week earlier and was 33 percent higher than the same week one year ago. The Treasury will auction $29 billion reopened 10-year notes. There is only one Fed speaker on the schedule, Atlanta’s Bostic. The Desk will purchase up to $4.665 billion consisting of $1.768 billion GNII 2.5 percent and 3.0 percent followed by $2.897 billion UMBS30 2.0 percent through 3.0 percent. We begin today with Agency MBS prices down/worse a few ticks and the 10-year yielding .66.

Age 60 might be the new 40, but 9:00 is the new midnight.

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, “Mortgage Outlook: What if it is Cloudy?”, focused on the current political climate. If you have the 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. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

 

July 7: AE, Ops, LO jobs; marketing, processing, training tools; industry & lender forbearance trends

This morning analysts are talking about the 5 million people of Melbourne, Australia now under a new 6-week lockdown. Lockdown! In this country, we have four long months until the election, with plenty of mudslinging ahead. But here is a short piece on how to think about politics and mortgage origination: “Mortgage Outlook: What if it is Cloudy?” is focused on the current political climate. (Yes, 2020 estimates are in flux.) Focusing on residential lending, yesterday a CEO told me, “If you’re not making money now, go do something else for a living.” All evidence points to a superb 2nd quarter, and even with the economy contracting over the past few months and millions of borrowers going into forbearance, somehow U.S. mortgage companies are having one of their best years in history. The MBA reported margins averaged about 61 bps per loan made from January to March, making it the most profitable quarter since 2013 and nearly double the first-quarter average dating to 2008. Even with all the uncertainty from so many people being unemployed, there is still a lot of optimism in the market.

Employment

“While other mortgage lenders are hiring temporary operations staff to manage the recent surge in business, Citizens Bank Home Mortgage is adding permanent operations staff to support both our Retail and Wholesale divisions and will continue growing throughout 2020! Citizens is looking for talented processors, closers, and underwriters at our six regional operations sites in Irving, Texas, Marlton, New Jersey, Richmond, Virginia, Melville, New York, Franklin, Tennessee, and East Providence, Rhode Island. We know our Operations colleagues play a critical role in the home buying journey, and we value the important work they do. If you are looking to build your operations career at a company that is winning in the marketplace and recognizes your contributions, apply to Citizens Bank today! For questions, please email HomeMortgageRecruiting@citizensbank.com.”

“At ACC Mortgage, it is Christmas in July. With the most complete Non-QM products: DSCR, Super JUMBO, ITIN, P&L Lending, 85% Bank Statement. ACC is looking for more sales leadership, AEs, underwriters, and processors to support the increasing demand. Being the oldest and most stable Non-QM lender in the industry, we have the top comp plan and support. If interested in joining our family, please send your resume to the president, Robert Senko, for consideration.”

Are you receiving the Coaching and Support you need to reach $100 Million? 150 Million? At Churchill Mortgage our goal is to make sure you have a solid foundation by maximizing your strengths, then coaching you up to become an expert in loan strategy and relationship development. For example, we routinely share best practices among our Top Producers to help lift the whole sales team to the next level. Check out these tips from our Top Producer, Michael Brown, who closed $150 Million last year.

“Why should you accept outdated processes and menial tasks that waste your time? How many times have a lack of qualified lead sources lost you money? At Wyndham Capital Mortgage, our technology-driven tools and culture show that the time has passed for these issues to infiltrate a loan officer’s day. And we’re here to do something about it. Wyndham Capital is a fintech mortgage lender that breaks the mold of traditional mortgage lending. Through automated intelligence and perpetual marketing operations, Wyndham not only saves you time but maximizes your potential. You are given the keys to success through scalable, augmented processes that deliver the highest success rate in mortgage lending. Are you ready to do more business, expand your reach and still keep the freedom and flexibility to live your life? With Wyndham, you can do it all. Click here to learn more.”

Lender & broker services & products

 

The actionable Mortgage Risk & Fairness Score is a powerful & predictive, data-driven “intelligence” tool to better manage crisis-cycle credit risk & blind spots, latency, financial inclusion, pricing, capacity, regulation, and servicing. MRS enables lenders, servicers, investors, and MI’s to get to know borrowers better, holistically. Then, use that deep insight to make proactive, informed, and precise decisions to originate, segment, underwrite, fulfill, trade, and monitor more inclusively & efficiently. MRS is plug-n-play and enables quick deployment of advanced risk & behavioral/attitudinal analytics (propensity, segmentation, ability, resiliency, and “willingness” to pay) that are validated (top 10 bank) & vetted (CFPB, OCC, Fed). Bottom line, MRS is powerful incremental intelligence. Used up-front, and as an additional layer of insight for underwriting, secondary, and servicing, it will increase volume, inclusion, confidence, margins, efficiency, and capacity, while decreasing risk. Click for info.

As lenders across the country look to hiring rookie talent to meet capacity challenges, XINNIX has provided the bridge to help get new talent market-ready. XINNIX is experiencing record-breaking student enrollment month after month this year across its suite of Sales, Operations and Leadership Performance Programs. The XINNIX System of Training, Accountability and Coaching provides solutions to increase production of experienced loan officers and prepare new talent in sales and operations to be successful fast. Schedule a call with a XINNIX Account Executive today for more information on their suite of New Talent Training Programs. In the meantime, XINNIX is offering its readers a free copy of “Four Key Factors for Sourcing Rookies”, a resource designed to help hiring managers minimize recruiting mistakes and gain a competitive advantage to grow their business quickly. Download it here!

“Customer retention is a key growth strategy for leading mortgage lenders. And with increasing customer expectations, there is no room for error when it comes to optimizing your customer experience. Watch our webinar and find out how to transform one-time transactions into lifetime relationships and accelerate your customer-for-life strategy. Mortgage industry experts will share how to build trust before, during, and after the initial transaction, positioning you as the lifetime financial partner for all of your customers’ lending needs. Watch now.”

Maxwell has released its third and final installment of the blog series, “Land of Unequal Opportunity.” After a history of redlining and governmental policies that contributed to inequality in housing and the racial wealth gap we see today, Part 3 covers the path forward, with the policies and changes needed to provide an equal and fair housing environment for all people. A must-read for all industry professionals, click here to read part 3. If you missed Part 1 or Part 2 you can start here.

Forbearance developments

The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 1 bp from 8.48 percent of servicers’ portfolio volume in the prior week to 8.47 percent as of June 21. According to MBA’s estimate, 4.2 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the third week in a row to 6.26 percent, a 5-bps improvement. Black Knight echoed this, saying the number of borrowers in forbearance plans declined last week. The number of loans in forbearance dropped by 104k, and brings us back to levels last seen in early May. Many of the initial forbearance plans were for 90 days or so, and if a borrower received forbearance in mid-March, it was up by mid-June. In some areas and sectors the economy is improving as well.

Many state governments are weighing passing laws, mostly moratoriums on evictions and foreclosures. These tend to not help any servicer “paying up” for servicing on a loan originated in a state where their hands are tied. For example, in Oregon the governor is considering signing HB 4204 (a moratorium on residential and commercial foreclosures) and HB 4213 (a moratorium on residential and commercial evictions). Here’s a note on what they may mean for lenders and servicers if they pass.

FHA observes a significant increase in default and claim rates nationwide, which it attributes to the financial impacts of the COVID-19 National Emergency. This increase may be impacting the Compare Ratios displayed in the Neighborhood Watch Early Warning System (Neighborhood Watch). While FHA is unable to remove any loans in default or claim status from Neighborhood Watch Compare Ratio calculations, including loans in forbearance for borrowers affected by the COVID-19 National Emergency, FHA will consider the impact of the COVID-19 National Emergency as a relevant mitigating factor when a mortgagee’s Compare Ratio is above the designated threshold.

USDA updated its guidance concerning Electronic Status Reporting (ESR) for borrowers impacted by the COVID-19 national emergency. Effective September 1, when reporting loan statuses for August, please use the new Reason Code 055 – National Emergency for any COVID-19 impacted loan. For COVID-19 forbearances, the Status Code 06 – Formal Forbearance should continue to be used. The same default status date should be used as the date the borrower was approved for the forbearance if changing the Status Code. If the loan was not previously in default, the Status Code 42 – Delinquent must be reported first to open the default event and then Status Code 06 – Formal Forbearance should be reported in the following months.

U.S. Department of Agriculture Deputy Under Secretary for Rural Development Bette Brand announced USDA extended foreclosure and eviction moratorium for all Single-Family Housing Direct Home Loans through Aug. 31, 2020. The moratorium applies to Initiation of foreclosures or completion of foreclosures in process, excluding vacant and abandoned properties.

Evictions of borrowers from properties bought with a USDA direct home loan.

Freddie Mac Multifamily Announced New COVID-19 Forbearance Options and Tenant Protections. This announcement describes the creation of three supplemental forbearance relief options to assist borrowers who currently have a forbearance plan in place and who continue to be materially impacted by the effects of the COVID-19 pandemic and changes also extending several tenant protections.

Fannie Mae updated LL-2020-02, Impact of COVID-19 on Servicing, to modify the financial eligibility and reporting requirements for non-depository sellers/servicers. The temporary policy change relates to the calculation of the liquidity requirement for sellers/servicers who service mortgage loans that are in a forbearance due to COVID-19 hardships. Fannie Mae Form 1002, Mortgage Bankers Financial Reporting Form, is being updated to capture COVID-19 forbearance activity. This Lender Letter update also extended the suspension of foreclosure-related activities through June 30th.

Fannie Mae announced updated renter protections and forbearance extensions for borrowers. Fannie Mae’s Delegated Underwriting and Servicing (DUS) lenders have been delegated the decision to extend existing forbearances for multifamily property owners by three months, for a total forbearance of up to six months. If extended, once the forbearance period concludes the borrower may qualify for up to 24 months to repay the missed payments. While in forbearance, the landlord must suspend all evictions for renters unable to pay rent. For Fannie Mae-financed multifamily properties with a new or extended forbearance, the borrower is required to provide the following tenant protections during the repayment period: Allow the tenant flexibility to repay back rent over time and not in a lump sum; Not charge the tenant late fees or penalties for non-payment of rent; and give the tenant at least a 30-day notice to vacate.

An Essent Announcement declares its support of the additional temporary guidance recently announced by Fannie Mae and Freddie Mac regarding purchase and refinance eligibility requirements, renovation loans that were subject to forbearance, and underwriting borrowers with self-employed income.

Wells Fargo Funding retracted its post-purchase forbearance fee policy on conventional Conforming Loans. There will be no charges on an Agency loan-level price adjuster (LLPA) or administration fee on loans when a borrower goes into forbearance after Wells purchases the Loan. This change also applies to Loans affected while the fee policy was briefly in place. (Recall that WF revised its post-purchase forbearance policy applicable for all loans. It will assess the following fees if the borrower goes into forbearance on the subject Loan within 15 business days after Wells Fargo Funding’s purchase and prior to settlement*: Applicable Agency loan-level price adjuster (LLPA): 500 basis points (5.000%) for Loans to first-time homebuyers and 700 basis points (7.000%) for all other transactions. There will be a $1,000 administration fee applied to the transaction. Fees will not apply if forbearance occurs after Wells Fargo has sold and settled the Loan with the respective Agency, even if within 15 business days of our purchase.)

PennyMac announced it is aligning with the guidance given in Fannie Mae’s Updated Lender Letter 2020-03 dated May 19, 2020 and Freddie Mac’s Bulletin 2020-17 for borrowers who are currently in forbearance or other loss mitigation options looking to refinance their current mortgage or purchase.

As previously announced, Caliber has aligned with Fannie Mae Lender Letter LL-2020-06 and Freddie Mac Bulletin 2020-12 specific to selling loans in forbearance due to COVID-19. Due to these announcements, Caliber has updated our Borrower Attestation document to align with the new guidance. You may begin using the new Borrower Attestation Form, posted in AllRegs, immediately. Caliber amended Announcement CL20-26 regarding Loans in Early Forbearance. Any conventional purchase or rate and term refinance loan that enters forbearance, after purchase by Caliber, will not be assessed the standard agency Loan Level Price Adjustment (LLPA) of 5% (for first time homebuyers) or 7% (for all other loans). Correspondents will not be billed the $1,000 administrative fee for any loan that enters forbearance after purchase by Caliber. Caliber will not purchase loans that are currently in forbearance. As a reminder, the Correspondent represents and warrants the borrower’s ability to repay the mortgage; therefore, it is important to maintain diligent VVOE/VVOI procedures and obtain borrower attestations as outlined in Announcement CL20-19.

Capital markets

Without much domestic news to start the week, let’s quickly revisit last week’s payrolls report, which showed that the economy added 4.8 million jobs in June. Sounds pretty good, especially since it’s the second month of gains after more than 20 million jobs were lost in April. But remember that the data were collected before coronavirus cases began to resurge at a record pace. Many states are now pausing their reopening plans and, in some cases, reversing them and forcing businesses to close again. Second, a lot of these newly added positions aren’t full-time. Over 9 million adults were working part-time hours in June, more than double the number in February. In just four months, the number of people who characterize their layoff as permanent has jumped by over 1.6 million. By contrast, after the official start of the recession during the 2008 crisis, it took 11 months to see more than 1.6 million permanent layoffs.

It seems to be a growing trend that the most recent economic figures actually paint a much less rosy picture upon further examination. The surprisingly rapid growth of the economy in May and early June initially seemed encouraging versus the depths of March and April, but it now appears to have been a sign that Americans were resuming normal activity in ways that spread the virus, the resurgence of which is now causing new shutdowns that will delay a true recovery. The depths of March and April make a range of economic indicators look as if they are soaring, but compared with a year earlier, those same numbers reveal a shattered economy, with millions of jobs destroyed and billions in sales lost, damage that may take a long time to repair.

As I alluded above, there weren’t any headlines that moved MBS and rates worthy of detailed mention yesterday. The ISM Non-Manufacturing Index for June increased into expansionary territory when it was expected to still contract, though less so than in May. June represented the first month of expanding activity since March, but isn’t a “strong” report so much as a report that showed stronger activity relative to the depressed activity in May.

Zzz… Don’t look for much market-moving data today: Redbook same store sales, JOLTS job openings for May, and several Fed speakers (Atlanta’s Bostic, Vice Chair Quarles, San Francisco’s Daly and Richmond’s Barkin). The NY Fed will conduct two FedTrade purchase operations totaling up to $4.406 billion starting with $1.509 billion UMBS15 2 percent and 2.5 percent followed by up to $2.897 billion UMBS30 2 percent through 3 percent. We begin the day with Agency MBS prices little changed and the 10-year yielding .67 after closing yesterday at 0.68 percent.

An epidemiologist, an ICU doctor, and a scientist walk into a bar…

Just kidding.

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, “Mortgage Outlook: What if it is Cloudy?”, focused on the current political climate. If you have the 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. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

July 6: U/W, production jobs; DPA, leads, PMI products; investors ruminate on employment data: shrug?

Here’s a blunt reminder of what can go dramatically wrong in a fireworks stand. And here’s a blunt email that I received over the weekend. “Rob, what don’t people understand? If someone is threatened with a potentially fatal illness, the last thing on their mind is buying the latest Apple phone, a new car, a suit, a new computer, whatever. They will focus entirely on food, housing, transportation, healthcare, and insurance. (Housing alone accounts for almost a third of spending.) Until this virus is taken care of, we can expect a slow economy, and low rates… a double-edged sword for our industry. End of story.” Maybe some are more focused on ridding the United States of its Star Spangled Banner since Francis Scott Key appears to have come from a slave-owning family. And those focused on mortgage legal matters learned that in the G-Rate non-solicitation case (Cook County Case No. 2020 L 371, Guaranteed Rate as Plaintiff and Harry Richter as Defendant) the judge reversed her decision, refusing to find Guaranteed Rate’s employee non-solicit overbroad. The defendant, Harry “Rick” Richer, was ordered to answer Guaranteed Rate’s complaint seeking relief for Richter’s violation of the non-solicit by July 17. (The judge had previously ordered Richter to answer Guaranteed Rate’s claim for breach of fiduciary duty by July 17.)

Employment 

Caliber Home Loans is excited to announce its first chartered Employee Resource Group, DREAM, supporting women in business. DREAM stands for Developing, Recruiting, Empowering, Advocating for, and Mentoring women. Membership is open to all Caliber team members, male or female. DREAM program activities will include panel discussions, workshops, social outings, and volunteerism. Our goal is to deliver programs and activities that resonate with the current life stage of all Caliber employees. We will strive to break down barriers, whether perceived or real, that impact women. It is DREAM’s vision to inspire women to stay curious, drive change, and motivate members to achieve or exceed their goals. Join Caliber, where your DREAM is your success! If you have an interest in one of our posted job opportunities, please contact Jonathan Stanley for consideration. If you are interested in a sales opportunity at Caliber, please contact Brian Miller for immediate consideration. Visit the Caliber Careers website for opportunities across the organization!”

A leading multinational corporation is growing its operations and is looking for seasoned underwriters. This is a ground floor opportunity for critical team members here in the US.  Serving more than 65 mortgage lenders, including 5 of the top 20 IMB’s, the company offers a competitive salary and benefits package for this work-from-home position. “With more than 60,000 file touches per month and supporting $200B+ in mortgage lending per year, our continued growth provides for unlimited advancement potential.” Experience with due-diligence underwriting is a plus. Interested candidates may send their resume to Anjelica Nixt.

Evergreen Home Loans believes in the WOW and creating positive change in our communities. With the COVID-19 pandemic, we recognized a greater need than ever to fight hunger. Through the Evergreen Cares Foundation, we donated $250,000 to non-profit organizations providing hunger relief. A total of 60 organizations in the states we serve received funds as part of our WOW Giving for Hunger 2020 initiative. Evergreen is also a sponsor for Rock the Harvest benefiting Northwest Harvest, the leading hunger relief agency in Washington and Oregon. At Evergreen, we believe in helping customers find home and supporting the communities we serve. If you believe in that too, check out our Careers page or contact Chuck Iverson.

TruLoan Mortgage, home of “The Lending Experience You’ll Love,” in Charlotte, NC is expanding. Founded by retail branching industry veterans Daniel Jacobs and partners, TruLoan Mortgage is a boutique lender providing incredible support to help successful producers double their business. Leave the corporate red tape and status quo behind; experience action, support, innovation, and growth now!  Be a part of a team with impactful millennial homebuying seminars (last virtual event attracted 60 attendees and 18 highly qualified applicants!), closings loans in 8-21 days, 5-star reviews and a lot of fun doing it. TruLoan Mortgage is delivering on its promise for a lending experience you’ll love. If you’re a successful producer or team of producers in the Charlotte market or in the Southeastern US, want the support you deserve and an environment to grow, earn more, and have fun, contact us now at Grow at TruLoan.

American Mortgage Network: Join us and be an employee-owner. American Mortgage Network is a 100% employee owned company (ESOP) created for the benefit of all employees. Unlike traditional mortgage banking, this was an effective way to build a strong team and provide fair compensation for employees’ contributions.  Joseph Restivo, Dave Wallace and Sherry Chappell, the leadership team, supplied the initial equity for the company but pledged their ownership shares to the ESOP. The ESOP structure brings needed balance between compensation levels such as those between sales and operations. In a little over a year, our employees are now owners, actively participating in decision-making. They’ve received their first distribution of shares and operate in a bureaucracy-free environment that gives them the freedom to work for the company’s success every day. If you are interested in becoming an owner and a member of the AmNet team, please click here.”

Mr. Cooper is excited to announce new developments for our Correspondent channel! As a leader in the industry, we’ve enhanced our eNote acquisitions with the addition of Remote Online Notarizations (RONs)!  Our clients can now experience an end-to-end, virtual loan process. We believe RONs are the way of the future, and we’re excited to provide this offering!  Additionally, we’ve broadened our FHA Program (Purchase & Rate Term) by reducing the minimum FICO to 600. Co-Issue is back! Let our Co-issue experts help you across both Agency and Government.  One of Mr. Cooper’s core values is Champions for our Clients, and we deliver through efficient turn times, robust delivery options, and access to liquidity. Ready to become a Mr. Cooper client? Please contact the Regional Sales Team. If you’re interested in joining our growing Delegated and Non-Delegated teams, contact Pamela Peak. Mr. Cooper is a leading Correspondent investor and the largest non-bank servicer with a servicing portfolio of $600B+.”

Finance of America Mortgage has continued to shatter our own monthly records in 2020. Our retail branches are up significantly over last year almost doubling their usual volume, and considerably above the national average increase. Now we’re looking to share that success with you and your organization. If you are a mortgage company interested in becoming part of the Finance of America Mortgage family, contact us today. Why not join an organization that continues to succeed month after month? Let our past victories become a part of your organizations’ continued growth and success. If you are part of the executive management team of a mortgage company and are interested in your company becoming part of the Finance of America Mortgage family, please contact Jerry Ray today.”

Broker & lender products

“Every loan officer wants an edge on the competition. Some rely on relationships and others rely on state-of-the-art tools. PMI Rate Pro was created by loan officers that recognized the value of quoting all 6 private mortgage insurance providers to save time and increase conversions. With PMI Rate Pro, home buyers can save an average of $35 on monthly premiums and over $2,000 on single premiums. With the average loan officer shopping only 2-to-3 MI providers, PMI Rate Pro provides its customers a significant competitive advantage at an affordable price. Seeing is believing. Try us free for 30 days and get back to doing what you do best – close deals.”

Record sales and 50% lower cost per loan! How Steven J. Sless and his PRMI Reverse Division rocked their best months ever using direct mail: “You know, PRMI is just a powerhouse in the mortgage industry now. And Monster Lead Group has been an unbelievable partner. Monster knows what they’re doing, they know how to make the phones ring, they know how to generate business, but they also know how important it is to help us grow a brand at the same time. It’s a real marketing system. It’s not just sending mail. I think the consistency of the campaigns is what we rely on… Our cost per funded loan is about 50% of the industry average… So that story should be told. We’re able to grow and scale our operation because of the predictability of the Monster campaigns. That is what’s allowed us to get to this point.” Want BETTER direct mail? Contact Monster Lead Group.

Join Golden State Finance Authority for an in-depth look at the new GSFA OpenDoors down payment assistance program! “OpenDoors is a game-changer when it comes to helping homebuyers in California purchase a primary residence with little-to-no money out of pocket. The GSFA OpenDoors Program features homebuyer assistance up to 7% of the loan amount, FICO requirements as low as 620, flexible DTI requirements and enhanced pricing. FHA, VA, USDA, and Conventional loan financing is available. Plus, GSFA delegates the loan process to the Participating Lender so no additional compliance review from GSFA is necessary, making the process simple and easy for both borrower and Lender. Ready to start closing more loans?? Join us for a Lender Training Webinar and view Program guidelines at www.gsfahome.org. You don’t want to miss out on this EXCITING new Program!”

Capital markets

Any economic data from April, May, or June will reflect a tremendous amount of churn occurring in the U.S. economy. States have been reopening, and now closing, at different speeds. Some businesses are coming back to life while many are still struggling, which means many employees are coming back to work as others are still getting furloughed. Additionally, there has been a massive amount of fiscal and monetary policy stimulus. While June figures are expected to be improvements from April and May, the trajectory of the coronavirus through the U.S. and elsewhere is an ongoing concern, as the economy in different geographic locations may be shut down again as caseloads accelerate. What is certain is that the amount of uncertainty around any particular economic forecast is large right now.

Hopefully, everybody enjoyed the long weekend, and your mind was on what to grill, where to watch fireworks, and how to be a better civil rights advocate, rather than the risk-on trade Friday that saw a slight rally in Treasuries and Agency MBS. U.S. economic data released over the last week may have been better received if not for the surging spread of Covid-19 in several states that has resulted in a rollback of reopening plans. Nonfarm employment increased by a record 4.8 million net new jobs and the unemployment rate fell to 11.1 percent. As good as the month-over-month increase was, employment is 9.6 percent below February’s peak and analysts are looking ahead to the potential re-shuttering of some businesses and a return to home for employees who just got back to work. Additionally if the rapid spread of Covid-19 is prolonged, demand for many non-essential items may once again plummet, leaving many businesses with reduced payrolls as they are forced to adapt. New claims for unemployment continued to fall for the week ending June 27 but the rate of decline is falling as well. Manufacturing returned to expansion territory in June as the ISM Manufacturing Index increased from 43.1 to 52.6 with half of the sub-indexes in positive territory and thirteen of eighteen industries reporting growth.

As noted above, last week closed with better-than-expected jobs data, though gains were tempered over angst from the economic impact of rising coronavirus infections. June saw a historic increase in payroll employment: what’s not to cheer about? Despite the positive news, the level of employment in June was still 14.7 million jobs, or 9.6 percent, below the peak from February. Additionally, the report is based on a survey done in the middle of June, before the latest virus surge. And the misclassifying out-of-work Americans as employed has skewed the jobless rate, distorting month-on-month comparisons.

So investors are taking those June figures with a grain of salt. The recent flare ups of COVID-19 cases in several states (U.S. daily cases officially topped 50,000 for the first time last week) have resulted in a new round of layoffs for some workers. Also, the expiration of the PPP loan layoff restrictions for many firms will allow them to shed workers in July. Further complicating the analysis, roughly 19 million workers who remain unemployed are benefitting from enhanced unemployment benefit supplied by the CARES Act. The extra $600 per week, which has encouraged some workers to stay off their jobs, is now scheduled to expire on July 31. There will likely be a new stimulus bill in July that will again modify unemployment insurance benefits.

Following the long weekend, the economic calendar for this first full week in July begins with the final June reading for Markit services PMI, and will be followed by ISM nonmanufacturing PMI for June, shortly thereafter, and the June employment trends index. Releases are scant as well tomorrow, with just May Job Openings, before Wednesday sees the usual Weekly MBA Mortgage Index. Thursday brings weekly jobless claims and May Wholesale Inventories before the week closes with June PPI and Core PPI. The MBS market will digest June prepayments, released after tomorrow’s close. The NY Fed will conduct two FedTrade MBS purchase operations today, totaling up to $4.665 billion and starting with up to $1.768 billion GNII 2.5 percent and 3 percent followed by up to $2.897 billion UMBS30 2 percent through 3 percent. We begin the day with Agency MBS prices down/worse a few 32nds and the 10-year yielding .70 after closing last week at 0.67 percent.

“The worst thing about returning to bars is getting a standard 5-ounce pour of wine instead of the 25 ounces my home-bar offers.”

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, “Mortgage Outlook: What if it is Cloudy?”, focused on the current political climate. If you have the 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. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)