May 23: AE, LO, Ops jobs; construction, subservicer, reverse products; technology options report

As millions around the globe revel in World Turtle Day, others are more interested about what went on the hallway chatter at the MBA’s Secondary Conference as we see the low rates of 2019. How a few of the big banks (Wells, Chase, Flagstar, to name a few) saw their residential mortgage profit rebound dramatically in the first quarter. Capital markets folks wondering “did we learn anything ten years ago” as they watch the increase in interest of non-QM and “non-prime” products by MLOs. (The Mortgage Elements website lists the top Non-QM wholesale and correspondent lenders for each state and the country: Just click on the Non QM symbol, choose a state, and click go.) M&A and name changes are expected to continue (the latest example comes from North Carolina where Prime Mortgage Lending Inc. will become GoPrime Mortgage Inc. on June 1). Watching “Free Solo” on the 6×6 inch screen in front of one’s nose in steerage on the flight to NY just doesn’t do it justice.

Employment & transitions

The Ohio Mortgage Bankers Association is in search of an individual to fill the Position of Executive Director. The desired candidate would have experience in the mortgage industry with excellent clerical and organizational skills, be willing to travel as needed for mortgage related events and in working with legislative concerns on behalf of the association, oversee political action fundraising, and assist with Association budgeting. To submit a note of interest, or for a complete job description, contact Ed Hensley. Speaking of the OMBA, it just wrapped up another successful convention in which Ed, above, SVP of the Mortgage Lending Division for Wesbanco Bank, was elected as 2019-2020 President of the Ohio Mortgage Bankers Association. Congrats!

And congrats to Angela Sykes and Liz Collins, two Regional Center Managers with Sierra Pacific Mortgage whose careers are on the rise. Both were recently promoted to manage divisions of Sierra Pacific’s retail business. Angela is now in charge of the Southern California Division while Liz is Vice President, Division Manager for the Eastern region. Wholesale & Correspondent Account Executives considering a mid-year career move should consider a move up to Sierra Pacific Mortgage. Established for over 30 years, Sierra Pacific is one of the largest privately held independent mortgage companies in the nation. Well established with a solid reputation, SPM’s Wholesale division offers a comprehensive product inventory, competitive rates, partner perks and broker access to the NAMB All In loan origination system. Account Executives are now being recruited for the following cities and states: Seattle, Boise, North and South Carolina, Georgia and Pennsylvania. Confidential inquiries should be sent to TPO Sales.

Are you looking to work for a national lender backed by a well-capitalized publicly traded parent company? NewRez, formally New Penn Financial, is seeking multiple operations positions to support growth: wholesale credit analysts, wholesale processors, closing managers, closers, wholesale loan setup & disclosure analysts, wholesale operation managers, team leads, and client relations representatives. Positions are available in Concord, CA and Milwaukee, WI, and Plymouth Meeting, PA. “We have numerous opportunities to join the growing NewRez team,” says Vince Daino, VP of Recruiting and Business Development. “We are realizing significant expansion in all of our business channels which will result in career growth potential for our employees.” Signing bonuses available for the right candidates in certain roles. Contact Vince Daino, VP of Recruiting to “Rise with NewRez!”

In California Michele Murphy has joined KeyPoint Credit Union as Director of Sales tasked with expanding the credit union’s mortgage lending presence, building the team of mortgage specialists, and fostering new real estate lending partnerships.

And in playing vendor personnel catch up, OpenClose announced that Tom Buenz has joined the company in the position of VP, enterprise sales, to help satisfy an increasing demand for OpenClose’s LOS, digital mortgage point-of-sale (POS) solution and ancillary software products.

Lender products and services

It just keeps getting better. Part 3 of the new four-part series, “A Crack in The Foundation?”, from Maxwell was just released. Part 3 starts at the turn of the century and tackles the first decades of the 2000s, including the thorny topic of the financial crisis of 2008 and subsequent recession. Rather than re-tread the well-worn path through the timeline of the subprime mortgage crisis and economic fallout, Part 3 looks at the larger question of “why”. Why did this happen? What signs did we have that this disaster was coming, and why did we overlook them? Why did we bet everything on the American Dream of homeownership, and how do we keep from making the same mistakes this time around? No form or download required, it’s 100% free and a must-read for all mortgage professionals. Read Part 3 here(If you missed Part 1 on Monday, start)

JMAC Lending is pleased to announce expanded product changes to the company’s flagship Newport product – a true jumbo product that offers Non-QM alternatives. There are four simple ways to qualify: Full Doc – based on two-years of income; Streamlined Full Doc – based on DU findings for Income, Assets and Reserve; 12- and 24-months Bank Statements; and, One-Year Tax Returns. Enhancements included NOO/Investment properties now allowed for Streamline underwriting, including 2-4-unit properties. NOO, up to 85% LTV, loan amounts to $3M, including 40-year terms and Interest Only. To learn more, please contact our sales team today: Ask@JMACLending.com, 844.888.JMAC or visit www.JMACLending.com.

1st Reverse Mortgage USA announces the rollout of Surelock, a powerful new software offered by Baseline Reverse that prices specific borrower scenarios instantly, and gives loan officers the tools to have dynamic conversations with reverse mortgage borrowers.  Most importantly, Surelock eliminates the need to be a reverse mortgage expert to originate the product.  Reach out to Steve Scheiern (877-217-0166) to see how easy it can be to add reverse mortgages to your arsenal.

The mortgage industry is in flux. Fluctuating interest rates. Shrinking inventories. Changing borrower needs. Wouldn’t it be nice to have some consistency– especially from your automated underwriting system? Freddie Mac Loan Product Advisor® delivers reliable eligibility findings that foster responsible lending and give you confidence that you’re originating quality loans. Its innovative capabilities were developed in collaboration with lenders, providing automation and insights that help reduce costs and increase efficiency. What does it all mean for you? Greater opportunity for business growth and an edge on the competition– The Freddie EdgeSM. Learn more about ACE and AIM, available exclusively through Loan Product Advisor®.

Do you use Cenlar as your subservicer? Richey May & Co., a public accounting firm and leader in the mortgage industry, will be conducting its annual subservicer oversight review over Cenlar later this month to assist companies with their monitoring and oversight responsibilities. Richey May’s program and subsequent 120+ page report provides value beyond the basic compliance requirements, including face-to-face interviews with all key department heads to observe their processes and challenges, a comprehensive review of business continuity and IT assessments to ensure client and consumer information remains secure, and a summary of the subservicer’s notable accomplishments and strategic initiatives for the future. The optional loan level testing provides succinct and valuable insight into how your personal portfolio is being serviced, potentially uncovering unobserved information and assisting in the client-subservicer relationship. To learn more or to participate in the upcoming review of Cenlar, or our 2019 reviews of Dovenmuehle or LoanCare, please contact Kevin Lohry.

Looking to offer or expand your loans for fix and flip or flip and hold? Verus has your borrower’s project covered. Choose a partner with experience in this unique market. The country is saturated with older houses in need of modern upgrades, and Verus Mortgage Capital is here to help you serve your fix-and-flip and fix-and-hold borrowers. With our expanded renovation loan program, we now offer ground-up construction financing as well as the flexibility to make loan exceptions where warranted for creditworthy borrowers. Whether you’re supporting a short-term fix-and-flip project or a longer-term rental loan and looking for up to a 30-year term, Verus offers flexible delivery terms, simplified processes, and the ability to buy loans in bulk or one at a time. We serve lenders big and small. Get in touch with the market leader in the investor loan solutions sector today. Email Mark Dellovo to learn more.

Tech & vendor news

It’s good to have options, especially when it comes to financial services technology. In the new issue of STRATMOR Group’s Insights Report, Principal Andrew Weiss reports on technology options for lenders. “There are so many possible technology combinations for each step to creating a mortgage, lenders can now reasonably consider creating their own ‘best-in-breed’ platform rather than relying solely on their Loan Origination System (LOS) for this end-to-end experience,” says Weiss. “It’s not an easy choice for lenders, but a well-designed and executed planning process will help lead to the best possible outcome.” Read “Creating a Best-in-Breed Technology Suite” in the May issue of STRATMOR’s Insights Report.

MGIC and Blue Sage Digital Lending Platform™ announced an integration of technology providing loan originators the ability to select MI products and order MGIC rate quotes or delegated MI without leaving the platform, improving the speed and accuracy of ordering MGIC MI.

Blue Ridge Bank, N.A. Mortgage Division has partnered with ReverseVision to launch a HECM and reverse lending division that will expand the number of financial planning options offered to the depository lender’s senior customers. “RVX’s HECM and senior lending platform will empower Blue Ridge Bank to execute on a Generational Lending strategy that serves their many decades-long customers at every stage in life,” said ReverseVision Vice President of Sales and Marketing Wendy Peel. “With RVX, Blue Ridge Bank is well supported to extend an exceptional customer experience to borrowers of senior lending products.”

Calyx Software’s Path® loan origination software (LOS) is now integrated with SimpleCECL™ from LoanScorecard® combining the proprietary credit and prepayment forecasting model and related analytics from Andrew Davidson & Co., Inc. (AD&Co) with LoanScorecard technology to provide loan-level analyses for Current Expected Credit Loss (CECL) and a calculation of the appropriate loan loss reserves to hold, based on the model’s projected lifetime losses for that loan. With this integration, financial institutions can seamlessly generate loan-level CECL analysis to ensure accuracy and compliance for all loans originated, including those with a policy exception, as well as an exact calculation for loan loss reserves under the new regulation without ever leaving the LOS.

Ellie Mae announced the launch of its Ellie Mae Pro Consulting Partner Program. Designed to accelerate the adoption of Ellie Mae’s Encompass® digital mortgage solution, the Consulting Partner Program provides a broad range of high-quality consulting options for Ellie Mae customers and helps the company accelerate its delivery of the true digital mortgage. By joining the Ellie Mae Pro Partner Consulting Program, consulting partners will have access to additional tools, resources and support, such as encompass test and development environments, regular product updates and best practices coaching and discounted individual training and achievement programs.

Capital markets

Global relations continue to be the focus of rates. For example, last week markets watched negotiations between the US and China, especially given the recent unsteadiness in consumer and business spending. But there was other news as well. Retail sales fell 2 percent in April driven by poor auto sales, however, even at the core level sale were flat. Industrial production fell 0.5 percent in April. But general business sentiment improved in May as seen in both the Empire and Philly Fed surveys. The NFIB Small Business Optimism Index was at a four-month high in April, but given the recent increases in tariffs owners are becoming more concerned with sales and their ability to pass on higher prices to consumers. And housing appears to be improving as starts increased 5.7 percent in April and mortgage rates have pulled back from higher levels earlier in the year.

Rate-wise we had a little “rally in the ally” yesterday with the 10-year dropping -3 bps to 2.39%. Reports that the Trump administration was looking to expand the blacklist of banned companies to include the Chinese surveillance sector weighed on equities at the start of the session, and the FOMC minutes had little to say and little impact on markets. The Minutes from the April 30/May 1 FOMC meeting showing policymakers are comfortable with the current fed funds rate range while “a number of participants” saw a moderation in risk and uncertainties surrounding their outlooks for the year. The odds of a September rate hike are now back below 50 percent. Of perhaps more interest was the presentation on the balance sheet where two scenarios were explored – having a portfolio that more closely represents the treasury universe or having one that should be 3-years or shorter in case the Fed would need to implement a twist exercise as part of future monetary policy.

President Trump held an impromptu press conference in the Rose Garden, spending his time not on trade but saying he cannot support an infrastructure bill while being investigated by the Democrats. Finally, British Prime Minster Theresa May resisted calls for her imminent resignation, her fourth Brexit plan facing little chance of coming to vote, but House of Commons leader Leadsom did resign from government.

Initial jobless claims for the week ending May 18 (-1k to 211k) began today for economic news. Later this morning will be the releases of the preliminary May Markit Manufacturing and Services PMIs, April new home sales, and the KC Fed Manufacturing Index for May. Additionally, the Dallas and Atlanta Feds are hosting a conference on technology where Fed Presidents Kaplan, Barkin, Bostic, Daly, and Harker will be appearing. We begin the morning with Agency MBS prices better by .125 and the 10-year yielding 2.36%.

A wise man once said… nothing.

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

Rob

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

May 22: Business opportunities, LO, AE jobs; broker, u/w, warehouse products; conventional conforming news

What’s going on behind the scenes and in the rumor mill at the MBA’s Secondary Conference? There is derision about HUD’s Ben Carson not knowing what “REO” stands for. Holders of mortgage assets like banks and credit unions are very concerned with CECL, and their actions and pricing moves will transfer to non-bank lenders – most of whom have never heard of these accounting changes coming at us. CoreLogic and the Department of Justice sparring. In the MI biz, lots of talk about how the volume & market share of only two – Genworth and Essent – “coincidentally” rose at the same time as the three major wholesalers were ramping up their volume and market share. How, with the big drop in per-loan profit in 2018 (at $367 per loan about half of 2017), many banks still did okay given their servicing income.

Employment

A mid-sized mortgage company with 130 employees, and licensed in over 30 states, is interested in having discussions with like-sized or smaller mortgage bankers or brokers that are interested in either selling out or merging into a company with a family-oriented culture. This business has a strong internal marketing program that generates its own leads using social media and other Internet-generated sources. The company also offers training to its realtor partners through seminars that are approved as continuing education credits. If you would like to learn more about joining a mortgage banker that is steadily growing as a result of having excellent operations and from being on the leading edge of financial marketing, feel free to contact Anjelica Nixt; specify opportunity.

Are you a highly motivated Account Executive looking for a change from the same ol’ same ol’? How about a rare chance to join a prominent organization in the Los Angeles/Orange County area? We know and understand relationship-based wholesale lending and our AEs are second to none, boasting an average tenure of 10+ years. With a 30-year company history, and a high focus on providing the programs, tools, marketing resources and client support that position our AEs to win in today’s highly competitive environment, you owe it to yourself to explore this rare opportunity. Bring value to your brokers again, elevate your book of business, and be part of an incredible team that excels in wholesale lending.” Please contact Anjelica Nixt; specify opportunity.

Homespire Mortgage, one of Inc. 5000’s Fastest Growing Private Companies, announces its expansion into new markets in the Southeast Region and subsequent Branch Partner and Loan Officer opportunities. The company continues to expand rapidly and has been named one of National Mortgage News’ Best Mortgage Companies to Work for. Loan Officers and Branch Partners at Homespire Mortgage enjoy aggressive compensation structures, generous incentives and rewards for Top Producers, including the Annual President’s Club trip. Homespire Mortgage is focusing on cutting-edge technology, giving Loan Officers access to powerful tools such as ReadyApp – digital mortgage platform, Ignite – marketing platform for print, email, text, web and social media and Social Survey – client review and LO reputation management. “We are focused on helping our Loan Officers capture bigger opportunities with powerful marketing technology.” said Michael Rappaport, President. Headquartered in Gaithersburg, Maryland, Homespire Mortgage proudly operates in 32 states. Visit Homespire’s careers site!

Strategic Growth Partners 360 (SGP360) is proud to represent a ‘C’ level Wholesale/Non-Delegated/Correspondent Executive with experience in Agency, Government and Non-QM. Executive is a builder with both East and West Coast Sales and Operations who operates on a Profit and Loss basis. Reach out if you are looking to start, expand or move into new channels. All inquiries are confidential. This year SGP360 is celebrating 6+ incredible years of successful contribution to our top tier clients with the Q1 addition of Bob Adams in SoCal. Bob brings his 43-year mortgage experience to the team with his high touch integrity-based recruiting approach. SGP360also proudly recognizes the successful efforts of national recruiters Amy Gibson (Arizona), in her 4thyear and Gary Gould (Colorado), in his 3rd year. The SGP360 recruiting team has over 100 years of mortgage experience and has built strategic alliances that in hindsight have reshaped the mortgage industry.”

“It’s awards season at PrimeLending. From best mortgage companies to work for (MEM) to top volume producers (Freddie Mac RISESM) to the best-in-class application process award (MortgageSAT), our trophy case continues to grow in 2019. How do we keep experiencing success year after year? Because we’re relentless in our efforts to deliver service beyond expectations in every aspect of our business. That’s why Mortgage Executive Magazine ranked us the #2 best industry workplace in 2019. It’s why PrimeLending loan originators Alex Varela, Chuck Hage and the Lisa and Michelle Team won a Freddie Mac RISE Award for total volume. It’s why our Application Process earned the STRATMOR Group’s MortgageSAT Best-in-Class Award based on consumer feedback. We’re all pulling in the same direction at PrimeLending to help our employees, our homebuyers and our business partners succeed — and that’s why you should consider making the move to PrimeLending. Contact Brian Miller to start the discussion about your future.”

Lender products and services

 

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

Register today for a live webinar titled “Is Your QC Team Ready for URLA/ULAD?

Strategies to Best Prepare for Any Regulatory.” The webinar is June 6th at 11am PDT/2PM EST. Mortgage QC expert, Sharon Reichhardt, will cover the details surrounding the GSE updates regarding the URLA and ULAD. Learn what type of impact this will have on production and risk management divisions, and what steps to take to best prepare for these upcoming changes, specifically as it applies to risk management testing and data integrity. Register today!

PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), is excited to announce its all-in-one BTW Services! “A partnership with PlainsCapital Bank includes a unique opportunity to take advantage of three great platforms within one company to help further reduce costs and streamline services: broker-dealer/Treasury Management/warehouse lending, HilltopSecurities‘ TBA/Specified Pool desk which helps qualified mortgage lenders hedge their origination pipelines by buying and selling TBAs and specified pools, and PlainsCapital Bank Treasury Management group which helps mortgage lenders meet the challenges of managing their cash positions with clearing accounts and escrow management for FNMA, FHLMC and GNMA. For over 25 years, PlainsCapital Bank National Warehouse Lending has provided lines of credit to mortgage lenders across the country and offers multiple incentive pricing options to reduce costs for our customers. To learn more about PlainsCapital Bank National Warehouse Lending, please contact Deric Barnett, EVP National Warehouse Lending, or for HilltopSecurities’ Broker Dealer, please contact George M. Meillarec, Managing Director.

Brokers, Quicken Loans Mortgage Services (QLMS) is always adding tech processes and the loan products to help you qualify more clients. The latest is QLMS’ Agency Plus product, which is focused on homebuyers in unique income situations. If your client is self-employed, has rental income or retirement income and they are interested in a jumbo mortgage, Agency Plus may work for them. The new product allows a client with $500,000 in total assets to use those assets as qualifying income for the loan. Alternatively, if they are receiving restricted stock as part of their compensation, they can use it to qualify for the loan – similar to bonus income. Agency Plus could be a good fit for your clients with a FICO of 700 or higher and DTI lower than 45%. Call your QLMS Account Executive today to learn how this product can help you reach more homebuyers, or new brokers can connect with QLMS here to learn more.

Conventional conforming

Industry insiders continue to talk about Trump appointee FHFA Director Calabria’s speech Monday. Not only is he interested in changing or eliminating Freddie and Fannie sending their earnings to the Treasury, but also in raising capital since that would speed things along. Instead of sweeping earnings, how about F&F pay the Treasury Department a guarantee fee…? “It was insufficient capital that triggered the conservatorship, and it’s going to be sufficient capital that triggers an exit.”

There sure is a lot of talk about private capital. No one would have much support for roiling the trillion-dollar mortgage industry, but private capital entering the picture to a greater degree will certainly not push rates lower. The FHFA is intent on orchestrating GSE capital raises, which Director Calabria has suggested could happen as early as 2020. Calabria stated, “By January 1 of next year, my hope and expectation is that we will be on the path to a new regime where the GSEs can start to build capital. At that point, the path out of the conservatorships will depend not on the calendar but on Fannie and Freddie meeting the mile markers we set out for them.”

It certainly is not an easy task to sort through the legal issues or the existing and future investor demands, and to remember the difference between administrative changes and legislative changes. Director Calabria seems okay with the private mortgage insurance biz. “There is a strong appetite and capacity for private capital to bear mortgage credit risk.” But various experts and insiders continue to suggest that the FHFA will “nip at the edges” to shrink the GSEs via changes to cash-out refi, non-owner programs property, and second home exposures.

PennyMac Correspondent posted a new announcement regarding the Release of FNMA Single Close Program and Update to Conventional EPMI LLPAs.

loanDepot Wholesale is offering multiple investment property pricing improvements on Conventional Conforming/High Balance and Jumbo Advantage Products.

FAMC Correspondent posted the following clarification: In FAMC Correspondent National Bulletin 2019-10 dated April 29, 2019 we addressed the new requirements related to the Number of Financed Residential Properties on the Home Possible Fixed Rate as stated in Freddie Mac Bulletin 2019-7.  The Freddie Mac Bulletin notes the effective date of the new requirements are for Mortgages with Settlement Dates on and after July 3, 2019.  Home Possible loans under the current guidelines must be purchased on or before June 7, 2019. There will be no possibility of exceptions.

Effective with new commitments taken on and after Monday, May 13, 2019, the administration fee for Fannie Mae and Freddie Mac transactions being underwritten by AmeriHome through the Non-Delegated Underwriting Program will change to $625.00.

The minimum credit score for VA Interest Rate Reduction Refinance Loans (IRRRL) has been decreased from 660 to 620. Refer to the ditech VA Refinance Product Summary for complete IRRRL eligibility requirements. In addition, ditech eligibility and underwriting guidelines for the Piggyback Closed End Second EE products have been revised to more closely follow Fannie Mae DU underwriting guidelines, with exceptions noted on the product matrix.

In alignment with recent Fannie Mae guidance, a new price adjustment of 0.25 will be added for all Mountain West Financial Wholesale conventional 2nd Home transactions with LTVs > 85%. This change will be effective for all loans locked on or after May 1, 2019.

loanDepot Wholesale is currently offering multiple investment property pricing improvements. View its Conventional Conforming/High Balance and Jumbo Advantage guidelines for details.

Wells Fargo Funding has made several updates to its’ Selling Guide. There are no changes to policy. Updates include labeling policy as delegated or Prior Approval, refreshed formatting and reorganized content. Additionally, it has changed the name of its Challenged Inventory Department to Post Funding Salability and has updated its guide accordingly. Also, the Prior Approval Option is temporarily unavailable on Conventional Conforming Loans from Delegated Sellers until further notice.

Ditech Financial LLC Approved Correspondent Clients should note its Conforming, FHA and VA underwriting guidelines are being updated. Reference the Client Guide and product matrices for complete guideline requirements.

Capital markets

As plenty of capital markets folks head for the exits from the conference in NY, Tuesday was a snoozer with little movement by the close, including the 10-year closing yielding 2.43%. The U.S. Commerce Department decided to grant a 90-day temporary general license that allows Huawei to continue using technology it already has a license for – a company that most had never heard of before a week or two ago.

There was a spate of geopolitical news from around the globe: Senate Majority Leader Mitch McConnell said an agreement on a two-year spending plan and a debt ceiling increase could be reached was imminent, British Prime Minister Theresa May said that her Brexit deal, up for vote in early June, will require MPs to vote on holding another Brexit referendum, China will reportedly stop doing business with companies that have agreed to stop supplying Huawei, and Australia’s mortgage rules were loosened while RBA Governor Philip Lowe indicated that a rate cut will be considered at meeting in two weeks.

Domestically, existing home sales declined in April to a seasonally adjusted annual rate of 5.19 million, below 5.35 million expectations, from an unrevised 5.21 million in March, as total sales were 4.4 percent lower than the same period a year ago. Overall sales activity remained light despite a decline in mortgage rates and a pickup in income, meaning low inventory and relatively high prices continue to hinder existing home sales.

The FOMC minutes from the April 30 / May 1 meeting loom today, but we have already had remarks from St. Louis’ Bullard (in addition to New York’s Williams, and Atlanta’s Bostic later). Today only has the weekly mortgage applications for the MBA for the week ending May 17 (+2.4%) for news. We begin today with Agency MBS prices little changed versus last night and the 10-year yielding 2.42%.

“If my body is ever found on a jogging trail, just know that I was murdered somewhere else and dumped there.”

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

Rob

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

May 20: LO jobs; training, reno, appraisal products; E&O warning; FHFA, Fannie, Freddie rumblings

Tony H. sent, “A conference is a gathering of people who singly can do nothing, but together can decide that nothing can be done.” Not at this MBA event, right!? Here in New York there’s a lot to talk about. Ellie Mae laying off 10% of its workforce, for example. MERS reporting 19,000 eNotes added to the MERS eRegistry during the first quarter of 2019, more than in all of 2018. At the MBA’s Secondary Conference one topic being batted about is the LTV ratio. Yes, the “lender to vendor” ratio has been sinking over the years as the number of vendors has increased. One-month bank statement programs? Yup, there’re out there. Chase Advantage reminding capital markets folks of 2006 programs & pricing through “access to the private MBS market?” Yup. Love that high balance product with no Agency G-Fees. The ability of MI companies’ black boxes to give different borrowers in different areas different prices? Yup.

Jobs & transitions

The Mortgage Firm has been recently recognized for their customer service levels and ranked as one of the top workplaces for mortgage professionals by Social Survey and Mortgage Professional Magazine, respectively. With over 11,000 surveys to date, The Mortgage Firm placed as the #1 mid-sized Lender in customer satisfaction with an average score of 4.92 out of 5.0 stars. Also recognized were 15 of their Loan Originators for ranking in the top 250 out of 30,000 mortgage professionals nationwide. Mortgage Professional Magazine recognized The Mortgage Firm as the fourth ranked mid-sized Mortgage Banking firms to work for. Mickey Schilling, Director of Strategic Growth, says “Our unique flat management structure and elimination of unnecessary layers allows our branch managers to have autonomy at the branch level”. If you’re a producing Branch Manager or top Loan Originator who is tired of the corporate structure and would like to align themselves with a company that is doing things right, contact her today.

Secure Insight announced that it has expanded its sales force with the hiring of Jim Reynolds (as National Sales Director), former Senior Managing Director at RiskSpan and former SVP at CoreLogic, and Bill Young as East Coast Regional Sales Manager. “These new hires are the first in a series of moves by the company to expand its sales force geographically to capture a larger share of the national vendor management/closing table risk market.”

Lender products and services

Come meet NewRez Correspondent at the MBA Secondary to learn how we can expand your capacity with speed and ease! “We continue to add new technology to our lender platform to enhance and streamline the correspondent lending process,” says Lisa Schreiber, SVP Correspondent Division. “We are proud to announce the recent integration of Ellie Mae’s Encompass Investor Connect system-to-system workflow which accelerates purchase times and enhances efficiency for all products we offer. It is an exciting time at NewRez with much more to come in the Non-QM space as well, including a newly-branded AUS coming soon!” Send Lisa a note to set up an appointment at the MBA Secondary and to learn more about how NewRez is committed to helping grow your business.

“Part one of a new four-part series titled, “A Crack in The Foundation?” from Maxwell was released this AM; it examines the roots of the American mortgage beginning in the 1930s and traces the establishment of the Federal Housing Administration (FHA), as well as the birth of Fannie, Freddie, and Ginnie, to look at the inception of the modern mortgage and its impact on home ownership. The series as a whole examines the evolution of the mortgage industry and homeownership in America, with an eye on government policies and how GSEs can promote (or prohibit) periods of economic growth. We have to know where we came from to understand where we’re going, and this series uses our past to speculate on where our industry can go in the future. No form or download required, and it’s 100% free. Read Part I hereand don’t miss Part II debuting here tomorrow morning.”

Calling all Marketing Managers: How difficult is it to produce compliant marketing that is targeted, localized, and customizable, while meeting your Loan Officer’s deadlines? Usherpa’s Launch Pad Custom Email Wizard was designed for corporate marketing teams and allows marketers to create materials that align with your unique company vision and brand strategies. Why switch between multiple systems to build content on demand when you can seamlessly design email campaigns within Usherpa CRM? Launch Pad is your one-stop shop to getting the right messages out at the right time— whether it’s a Lunch and Learn invitation for an individual LO, a companywide, targeted drip campaign, or internal messaging. Effortlessly build a library of collateral that is directly linked to Loan Officers’ databases and Loan Origination System. Don’t hesitate, learn how Usherpa’s HTML email wizard leverages your efforts while saving an impressive amount of time.

Reggora, a leading appraisal technology company, has doubled down on its efforts to fully automate the residential appraisal process for mortgage lenders and appraisers. Following significant investment from premier venture capital firms including early investors in Twitter, Wayfair, and Slack, Reggora has integrated with leading loan origination systems including Ellie Mae’s Encompass and Byte Software. These integrations and new partnerships with lenders across the country have fueled Reggora’s growth over the past few months. Reggora offers lenders an automated all-in-one appraisal platform that uses an “Uber-style” approach to streamline the appraisal process from A to Z. Through advanced and customizable workflows, Reggora’s core features include payment processing, algorithmic ordering, automatic rule-based reviews, appraisal delivery, status updates, and more. Lenders using Reggora today experience significantly reduced turn times, lower internal overhead, and an improved buyer experience. Learn more about how Reggora’s unique system can improve your appraisal process by emailing Pablo Aabir Das at pablo@reggora.com.

Have you seen the new Calyx®? That’s right, today, after almost 30 years in business, Calyx unveiled a new brand identity, website, and enhanced service options for customers. The updates more closely align with the characteristics Calyx customers associate with the Calyx name: easy-to-use, accessible, reliable and customer focused. The new logo gives a nod to the Calyx name and symbolizes the company’s commitment to its customers’ growth. The company’s product suite—which includes Point®, its flagship LOS; Path®, its cloud-based LOS; Zip™ its point-of-sale solution; and others in development—will adopt the Calyx logo with their own name and designated color palette. The company also introduced a new online tool that will enable customers to access training materials, register for webinars, and download product resources in a centralized portal. See what all the buzz is about at www.calyxsoftware.com.

Are you looking for real-time reporting, access to call recordings and proactive communication with your borrowers? TMS Subservicing provides you the perfect combination of high tech and high touch servicing. SIME is TMS’s spectacular web-based servicing platform. It provides full transparency into your loan portfolio while providing tools for oversight that you can rely on. Watch this video to get a quick overview.

The mortgage industry is in flux. Fluctuating interest rates. Shrinking inventories. Changing borrower needs. Wouldn’t it be nice to have some consistency– especially from your automated underwriting system? Freddie Mac Loan Product Advisor® delivers reliable eligibility findings that foster responsible lending and give you confidence that you’re originating quality loans. Its innovative capabilities were developed in collaboration with lenders, providing automation and insights that help reduce costs and increase efficiency. What does it all mean for you? Greater opportunity for business growth and an edge on the competition– The Freddie EdgeSM. Learn more about ACE and AIM, available exclusively through Loan Product Advisor®.

Renovating is becoming an increasingly popular strategy in today’s high-cost, tight inventory housing environment and Plaza Home Mortgage is making it easier for correspondents to participate in this market. Plaza’s renovation mortgage program includes FHA 203(k), Fannie Mae® HomeStyle® and VA Renovation options. Plaza’s flexible delivery options include Best-Efforts, Single Loan Mandatory, Bulk, Direct Trade and Assignment of Trade (AOT) through its Mandatory trade desk. Plaza has a department of dedicated renovation specialists to answer all specific correspondent renovation loan questions that can be reached here.

Like it or not, we are back on the seasonality train in the mortgage industry, and the ride is about to get interesting. The XINNIX Performance Training, Accountability and Coaching Programs are filling up fast with loan officers focused on elevating their performance to take advantage of an extremely busy summer homebuying season ahead. The XINNIX System’s proven methodology increases experienced Loan Officer production an average 40% and produces new loan officers that average 4.6 loan applications in their first 30 days in the market! Why wait to Elevate your production? XINNIX is offering a special 10% discount on all of its award-winning programs. The offer expires at the end of May, so visit XINNIX online today and enter promo code ELEVATE2019.

Compliance warning

Secure Insight has recently sent a notice to title underwriters nationwide regarding a surge in E&O policies offered to attorneys and title agents mirroring traditional insurance but actually offering non-insurance shared-risk coverage. There is concern because the “coverage policies” are not filed, not subject to insurance department oversight, based offshore outside of the jurisdiction of US courts, and are not subject to audit to verify financial viability. Title underwriters require agents to have insurance coverage, as do many states such as Florida and Virginia, and attorneys and title agents who purchase these policies may think they are meeting contractual and licensing requirements in error as these policies, often 1/10th of the annual cost of traditional insurance, may not be compliant. Andrew Liput, CEO of Secure Insight, stated, “It appears many attorneys and others are being misled into believing that they can actually receive $2 million in aggregate insurance coverage for $400 annually rather than $4,000 annually, and they will meet their own risk needs and those of their counter-parties in the mortgage industry. We will not be accepting these policies in lieu of actual insurance so that we may assure that our lender clients have a real source to offset potential losses and not one that looks like insurance but is really something else.”

Fannie & Freddie & FHFA news

As the Agencies make great strides toward the Uniform Mortgage Backed Security and the Common Securitization Platform, there is plenty going on behind the scenes. Craig Phillips, a veteran Wall Street mortgage trader who joined the Treasury Department as a top aide to Secretary Steven Mnuchin in 2017, is heading back to the “private sector.” His mandate was to help overhaul Fannie and Freddie. Up the government food chain, on Friday President Trump said “freeing” F&F from government control is a “pretty urgent problem” that his administration plans to work with Congress to address and that they’re discussing ideas for fixing Fannie and Freddie with “some incredible talent from Wall Street.” Given the Agencies have paid the government $105 billion more than they received makes the issue not so urgent with Congress.

Last week Federal Housing Finance Agency Director Mark Calabria spoke at NAR’s Regulatory Issues Forum. The former NAR economist spoke about his vision for the future of Fannie Mae and Freddie Mac, along with a host of other policy issues in front of him at the FHFA. Specifically, he outlined his priorities for ensuring the GSEs can appropriately move away from conservatorship. “I would not feel comfortable having [the GSEs] exit conservatorship until I’m comfortable knowing that we never go back to the old days, pre-crisis, and that we have a Fannie and Freddie that are responsible, good corporate citizens that don’t have the arrogance we saw before the crisis,” he said.

Freddie Mac Guide Bulletin 2019-10 announces it will no longer purchase LIBOR-indexed ARMs with Freddie Mac settlement dates more than six months after the note date. This change is effective immediately and is being implemented in consultation with the Federal Housing Finance Agency.

Freddie Mac has provided a follow up to clarify the delivery of Closing Cost and Down Payment data points, among other updates, under the Uniform Loan Delivery Dataset (ULDD) Phase 3. Additionally, the ULDD Phase 3 specification was updated to provide guidance for mapping certain Uniform Loan Application Dataset (ULAD) data elements to ULDD, which may be used as of July 1, 2019 when the new Uniform Residential Loan Application (URLA) is optionally available for use. Lastly, new enumerations (credit score providers) were added to ULDD Phase 3 to provide more Seller options to retrieve merged credit. Read the full announcement for details.

Fannie Mae’s recently updated Servicing Guide clarifies its policy regarding mortgage insurance (MI) termination solicitations, simplify our policies by removing references to designated document custodians, and more.

On May 20th, Fannie Mae’s EarlyCheck™ Version 5.8.2 will change the severity of ULDD Phase 3 edits from Warning-to-Fatal to Fatal. This aligns with the planned ULDD Phase 3 edit severity changes in Loan Delivery.

In her recent executive perspective, Helping Homeowners When They Need it the Most, Yvette Gilmore, VP of Servicer Relationship and Performance Management at Freddie Mac, talks about the important role that Servicers have from the lens of a homeowner. Delving into how difficult it can be for homeowners to get the answers they need when they need it, Yvette takes this opportunity to reveal how Freddie Mac is making great strides to change the landscape of servicing in three key areas: technology, data, and process.

Capital markets

U.S. Treasuries ended the week in a slight curve-flattening fashion, including the 10-year closing at 2.39%, during a session which featured few indications that the U.S.-China trade conflict is heading for a speedy resolution. Right. On other trade fronts, the U.S. will remove tariffs on metal imports from Canada and Mexico in exchange for establishing a mechanism to ensure that Chinese steel is not being shipped to the U.S. through Canada or Mexico. Additionally, the White House announced the implementation of tariffs on auto imports will be delayed by six months. Domestic data revealed in-line Leading Indicators for April and a much better than expected preliminary reading of the Michigan Sentiment Survey for May. The Survey was driven by positive attitudes about the outlook, although the results were tabulated before the recent setback in trade negotiations with China and implementation of new tariff rates on both sides, which raises the prospect of a downward revision with the final report for May.

Turning to this week, the highlight is likely Wednesday’s minutes from the Apr 30 / May 1 FOMC meeting. SIFMA also recommends an early close on Friday ahead of the long Memorial Day weekend. Today the MBA Secondary Market Conference & Expo is in full swing and continues into Wednesday in midtown Manhattan. The Chicago Fed National Activity Index is the only news, hardly a market mover. The markets do have a lot of Fed speakers to digest, with Atlanta’s Bostic, Philadelphia’s Harker, New York Fed President Williams, Vice Chair Clarida, and finally Fed Chair Powell all take the stage throughout the day. Tomorrow brings only April Existing Home Sales before things pick back up Wednesday with the Weekly MBA Mortgage Index; and May FOMC Minutes. Thursday sees April New Home Sales before we close the light week with April Durable Orders. We begin today with Agency MBS Prices a shade better versus Friday and the 10-year is yielding 2.38%.

Things aren’t always what they seem, as seen in this cool commercial.

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

Rob

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

May 18: State law changes, thoughts on non-QM, borrower credit scores, URLA; the origin of CNBC’s rates

I mentioned to my cat Myrtle that a) I was heading to New York for the secondary conference, which garnered no reaction, and b) that Grumpy Cat was “no longer with us,” which caused her to sniff and stare into the distance. Speaking of the conference, folks will be watching the LTV ratio (lender to vendor) as this has been dropping in recent years. But, as the guys going to the conference wonder whether to pack their suit or wear it on the plane, it should be a fine time, and hopefully plenty of lenders will have some exposure to ideas and products to help their companies.

Rates is rates

Regarding the minute-by-minute mortgage rate quotes on CNBC, I received this elucidating note from Matt Graham at Mortgage News Daily. “Your readers should know that CNBC receives its mortgage rate information from me/MND. CNBC came to me for the express purpose of having something that was more accurate than Freddie’s weekly rate survey and less misleading than Zillow’s insanely low rate ticker. CNBC should be applauded for caring to be honest in an arena that only seems to care about sensationalism. Finally, it’s good to remember (and it’s been interesting to learn over the years) that individual reporters vary greatly from one another, and while CNBC has its share of sensationalist reporters, Diana Olick is accurate and cares deeply about ‘getting it right’ without sensational spin. Your readers should know that CNBC’s rates are not a commitment to lend, nor an advertisement of a rate they are offering.

“If LOs feel that it’s harming their biz in some way because the listed rate is lower than their offering, I guarantee the CNBC rate ticker won’t be the first or only place their clients get the idea to rate shop them. Accuracy is important at Mortgage News Daily which is why I enter in 10-15 rate sheets a day from the highest volume lenders’ raw rate sheets and calculate the most middle-of-the-road top tier (75LTV, 760 FICO, O/O Purchase) conventional 30yr fixed rate. My rate is the best single indication out there. If LOs can’t competently explain to their clients LLPAs, lender-to-lender variability, and APR, that’s on them. There will always be single 30-yr fixed rate indications out there, and MND offers one of the very best of them.” Thanks Matt!

URLA fun

Yes, eight pages, eight sections. Call it the 1003 or the URLA, starting July 1, 2019, both Fannie Mae and Freddie Mac will begin the optional use period of the redesigned Uniform Residential Loan Application (“URLA”) published jointly by the Government-Sponsored (“GSEs”). Starting February 1, 2020, all loans with an application date on or after February 1, 2020 and purchased by Fannie or Freddie must contain the redesigned URLA.

Companies have, and are, reacting. docutech put out a write up. Caliber told clients that it will “improve efficiency, transparency, and certainty for both lenders and borrowers.”

“The most obvious change is that there’s defined separation between individual borrower applications. Each borrower will complete their own application. The new form includes fields for email addresses and mobile phone numbers… Additionally, the form lists the total number of borrowers applying for the loan – including full names – allowing for quick reference when there are multiple borrowers on the loan.

“Employment and Income will no longer be in separate sections. Employment entries include the income with source breakdown, making it easier to verify the income for each employer. The new form will support multiple current and past employers, as well as other income. The new form surveys borrowers on their language preferences. This survey is for information gathering purposes only. Applications won’t be available in languages other than English.”

What kind of borrowers are MLOs seeing?

Most lenders and MLOs admit that many of the easy deals are gone, and that borrowers now are “tougher.” I received this note from an industry vet. “I’m getting stuck doing credit repair or credit supplements on the majority of my files. Spending $150-$300 per file is no longer uncommon, and I’m often losing money per file because some items are more expensive that projected.

“I think that the three bureaus need to establish a manner for lenders to assist clients in directly repairing a consumers credit errors or rescores on a relatively rapid and cost effective manner. Do I think we will ever see that? No. One large lender out of Detroit has set up a free internal credit repair for its elite brokers. In my humble opinion I’m not sure how this is not a violation since it actually has value and is only offered to a select group vs. across the board.”

Another writes, “I am seeing more and more educated professionals drowning in debt, which creates low scores. Many of my borrowers have perfect credit, no lates, no collections, no foreclosures, no short sales. They have equity but cannot obtain a decent loan due to their credit scores. I had a borrower this week that pulled funds from their 401k and paid off enough debt to move their scores up to 680. We’re going to do a cash out refi for cash to pay off the rest of their debt and pay back the 401k!

“A while back one late on Kohl’s dropped one client’s scores by 100 points. It is absurd when a $60.00 debt does that. I went with portfolio lender that has no hit at 680, same rate as Fannie and Freddie but no YSP available. So I lowered the fee to 1% origination, borrower paid. That $4,500 should have been covered by YSP with an F & F lender.

“I am seeing scores much lower than in the past. I am told the new matrix, that ‘predicts’ what will happen next, is causing the lower scores. Some long-time clients typically have credit scores around 710. Both are self-employed and use credit for business. For them, the Spring is very busy so they have high use of credit. So here’s an example of perfect credit but high use. A year ago their credit scores were around 710 but this year they are 625. I constantly tell clients that the scores provided by Credit Karma and their credit card companies are examples and NOT what a mortgage credit report will show. I feel we are dragging the bottom of the barrel.”

QM or non-QM?

Lenders and investors have product, price, and service. And who represents them is very important. I received this note. “Rob, after much consideration, our firm has decided to look into offering products in the newly formed Non-QM/Non-Prime space. We have participated in several training calls in deciding which investor(s) with which to align.

“Please let any broker or correspondent (we are a broker) considering entering Non-QM to speak to several companies and to do a due diligence on each. We found that most could explain their products well, but our questions regarding the technical aspects (i.e., rate, index, margin, adjustments, etc.) often met with answers such as ‘don’t sell rate…sell the interest only payment,’ or ‘you can double your fee income adding these products,’ or ‘non QM is going to have explosive growth and you don’t want to miss the boat.’ I am not going to mention company names or individual AE names, but the proficiency and quality of the rep was all over the place. Some were quite professional and some not. Our industry has suffered greatly over the past several years from a reputation standpoint, and I fear ‘salesmanship’ tactics describes above are not a good direction to go in.”

State law changes

The Oklahoma Department of Consumer Credit has published its annual changes in dollar amounts for 2019.

In the state of Oklahoma, various dollar amounts set forth in the Uniform Consumer Credit Code change, effective July 1st, of each “qualifying year.” A qualifying year is any year in which the percentage of change (calculated according to the nearest whole percentage point) between the Index at the end of the preceding year and the Reference Base Index is ten percent or more. The calculations for dollar amount changes use figures from the Consumer Price Index Indicators, Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), issued each December by the Bureau of Labor Statistics.

In a year when statutory dollar amounts are going to change in July, the Department must mail a chart with the designated statute sections and the corresponding dollar amounts to all licensed supervised lenders, persons who have made a timely written request for notice of changes and to the Secretary of State and be published in the Oklahoma Administrative Code in an appendix to the Department’s rules.

Maryland has passed House Bill 107, the purpose of which is to substitute the “Commissioner of Financial Regulation” wherever the “Department of Labor, Licensing, and Regulation” appears in the Residential Property Foreclosure Procedures and to renumber certain sections relating to the Foreclosed Property Registry.

Kentucky has enacted several provisions pertaining to notaries, effective as of January 1, 2020. Notarial Acts: Section 3 under the new provision sets forth a list of acts that may be performed by a notarial officer and that they may perform these acts with respect to both tangible and electronic records. Online notary publics registered with the Secretary of State may also perform electronic notarizations on any of the notarial acts enumeration in Section 3.

Evidence of Identity requirements: notarial officer has personal knowledge of the identity of the person appearing before him or her if that individual is personally known to the officer through dealings that make it reasonably certain that the person has the identity claimed or has satisfactory evidence of identity of the person appearing before him or her if the officer can identify the person by a non-expired passport, driver’s license, or government issued identification card. Additional sections of the new provision address other notarial issues such as notarial certificates, notarial stamping devices, and online notarizations.

Iowa has adopted provisions relating to its Revised Uniform Law of Notarial Acts, effective July 1, 2020.

These provisions include the addition of definitions to the Act for terms such as “instrument affecting real property,” “identity proofing,” and “remote facilitator”.

An existing subsection regarding requirements of a “personal appearance” by a notary may now be satisfied by a remotely located individual using communication technology to appear before a notary.

Prior to performing a notarial act using communication technology for a remotely located individual, a notary public must first confirm the identity of the remotely located individual. An individual’s identity can be determined by 1) personal knowledge; 2) verification on oath or affirmation of a credible witness appearing before the notary; or 3) verification of at least two different types of identity proofing. The notary must also reasonably confirm that the record before him or her is the same record in which the remotely located individual made a statement or executed a signature.

Finally, the notary public must make an audio-visual recording of the performance of the notarial act and must be retained by the notary or an agent of the notary for at least ten years. The certificate of notarial act must also indicate that the notarial act was performed using communication technology.

Effective as of July 1, 2019, Iowa has modified provisions relating to permissible interest rates and charges for certain loans.

Under the previous provision, the superintendent was permitted to establish the maximum rate of interest or charges on loans with an unpaid principal balance of ten thousand dollars or less. The revised provision changes this amount to thirty thousand dollars or less. Loans with an unpaid balance of over thirty thousand dollars will have a maximum rate of interest or charges the greater of the rate authorized for supervised financial organizations or the rate permitted under Iowa Code chapter 535.

Additionally, a new provision regarding service charges adds that, if a creditor has collected a service charge related to an interest-bearing consumer credit transaction, the creditor may not collect a minimum charge upon prepayment. To access the full text of House File 260,

click here.

Here in New York an old nun who was living in a convent next to a construction site noticed the coarse language of the workers and decided to spend some time with them to correct their ways. She decided she would take her lunch, sit with the workers, and talk with them.
She put her sandwich in a brown bag and walked over to the spot where the men were eating.
She walked up to the group and with a big smile said, “Do any of you men know Jesus Christ?”
They shook their heads and looked at each other very confused.
One of the workers looked up into the steelworks and yelled out, “Anybody up there know Jesus Christ?”
One of the steelworkers yelled down, “Why?”
The worker yelled back, “Cuz his wife’s here with his lunch!”

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

Rob

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

May 17: AE, LO jobs; DPA, broker, u/w, MSR products; bank, lender, credit union M&A rolls on

A capital markets friend relayed this note recently received from an LO. “When do you think stated pick-a-pay products will come back? I have some borrowers with LTVs less than 70% who could really use that. Can you find us a program to offer?” Huh? Pick-a… Pik-a-chu? As over a thousand capital markets folks head to New York this weekend to tax their livers and hear, yet again, another set of titillating GSE reform updates at the MBA Secondary conference that are heard at every conference, there is investor chatter as always, like PHH re-entering the mandatory business. At least one associated group is optimistic. U.S. homebuilders are becoming significantly more confident after a sharp downturn last year. The monthly confidence index of the National Association of Home Builders has risen 3 points in May to 66, the highest mark in seven months.

Employment & promotions

Spring EQ Wholesalethe nation’s premier wholesale second mortgage lender, offering 95% CLTV combos (purchase or refinance) and 100% CLTV standalone fixed rate second mortgages, and who pays 1.5% in LPC on every loan, continues its GROWTH. Joining the team are the following Senior Account Executives: Colleen Coleman in IL, IN, IA, MI, and WI, and

Kristen Faidley in Minnesota and covering the entire country. Spring EQ Wholesale continues to hire Inside Account Executives in Philadelphia, and Outside Account Executives in the Northeast, and the Southeast regions and interested applicants should apply here. In addition, any brokers, banks and credit unions looking to partner should apply here.

GSF Mortgage Corporation is excited to offer FNMA’s new initiative, MH Advantage® Loans, a great alternative for aspiring homebuyers. MH Advantage® is a new homeownership option that offers innovative and affordable financing on specially designated manufactured homes that feature site-built characteristics. GSF Mortgage Corporation is one of the few lenders offering this product as a Single Close Construction to Permanent loan up to 95% LTV. Single Close Construction loan programs offered are, FHA-96.5% LTV, USDA-100% LTV, VA-100% LTV, and Conventional up to 95% LTV. All programs are single settlement without the need to requalify the borrower after the initial closing. “GSF Mortgage Corporation offers more choices to our customers than most lenders, allowing borrowers to buy or build their dream home. If you are an Originator with construction experience, please contact our VP of Retail, Frank Papaleo, for information on this opportunity.”

BSI Financial Services added three new members to its management team: Jean-Marc Eichner and Adam Rider have joined the company as senior vice president of loan services and vice president of accounting, respectively, while Natalie Owens as has been promoted to director of business development.

Lender products & services

Mortgage brokers know that competing on rate alone is a losing proposition. You need to offer products, benefits, and advice that go beyond price. To fulfill your role as the financial expert they are looking for, you need to start with WHY they came to you in the first place. Discussing saving money AND what will they do with those savings. Regardless of what their goal is, YOURgage from Quicken Loans Mortgage Services (QLMS) can help client’s reach it faster and easier. YOURgage lets you and your client chose any loan term from eight to 30 years. A client’s daughter going to college in 12 years may call for cash flow then, or a client wanting a lower rate but retiring in nine years can have a nine-year mortgage! A YOURgage is one way that QLMS can help you provide value, in addition to the savings. Call your AE now to run through a few more scenarios where your clients can benefit from a YOURgage, or for new brokers connect with QLMS here to learn about products to help your clients.

Caliber Home Loans, Inc.is the #2 purchase lender among non-banks (IMF), and is excited to announce a national expansion of its renovation lending program. The renovation product gives Caliber customers the opportunity to include minor cosmetic updates all the way to major renovations into one loan at closing. Caliber customers avoid high rate 2ndmortgages and HELOCs and enjoy the convenience of one loan with the improvements included at the time of close. Renovation Purchase loans from Caliber can help pay for repairs, remodeling or renovation required to improve one’s home. Renovation financing options from Caliber include FHA 2013(k), FHA 203(H), HomeStyle® Renovation and VA Renovation loans. A diverse and current portfolio of products is why Caliber is one of the fastest-growing mortgage companies in America!

How do you identify the right partner when evaluating mortgage outsourcing?  Everest Group recently awarded Accenture Credit Services its top designation of “Leader” in its PEAK MatrixTM for Mortgage BPO ranking of 20 providers, based on Accenture’s market success and delivery capability. The report cited Accenture’s “well-rounded consulting capabilities and a broad-based mortgage presence” and Accenture’s success in capitalizing “on several mortgage tools and technology solutions to serve its clients.” As a trusted provider for retail, correspondent, and wholesale channels, Accenture’s deep domain expertise and robust processing capabilities helps clients accelerate business outcomes and grow in today’s unpredictable market. Accenture’s global operations and 50-state SAFE Act licensing helps lenders increase their ability to focus on the customer experience, reduce costs to originate, and improve cycle time. For those of you attending the MBA Secondary Market Conference in New York, please come by the Liberty Room at the Marriott Marquis Monday or Tuesday, or click here to confirm a specific time for us to meet.

Questions on HUD’s latest changes on DPA program requirements? Check out TMS’ latest DPAssistant Update to help find DPA programs that follow the latest requirements regarding program jurisdiction. It’s so great to have a handy list of over 125 DPA programs across the country. Find the list here.

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

M&A, credit union, & bank news just keeps coming

Banks… that’s where all the money is, right? The CEO of LendingClub said the online lending company is evaluating applying for a banking charter while online brokerage firm Robinhood Markets Inc. has applied for a bank charter with the OCC. Going the other way, ConnectOne Bank ($5.5B, NJ) will acquire New York’s online business lending marketplace BoeFly which reports over $6.7B in transactions through its online matching platform connecting borrowers with lenders. PNC Bank ($371B, PA) will sell about $9B in assets of its investment management business to Federated Investors for about $52mm. Summit Community Bank ($2.2B, WV) will sell its insurance unit to the Hilb Group LLC. Investment banking company Stifel Financial Corp. will acquire investment bank, Mooreland Partners, and given that Stifel owns Keefe, Bruyette & Woods, adding Mooreland doubles the size of its technology practice.

Open Mortgage, a multi-channel mortgage lender has acquired Premier Home Mortgage, a lender that specializes in financing homes in rural and small-town America, in a deal that’s expected to add $300 million in loan value to the company.

What depository M&A deals have been announced in recent weeks? Brazilian bank Banco Bradesco ($361B) will acquire BAC Florida Bank ($2.3B, FL) for about $500mm. In Wisconsin AbbyBank ($503mm) will acquire State Bank ($28mm), Time Federal Savings Bank ($586mm) will acquire River Cities Bank ($256mm, and two bank holding company Lake Shore III Corp ($318mm) will acquire First American Bank ($131mm) in stock (100%) for an undisclosed sum. In Kansas Intrust Bank ($5.2B) will acquire First Bank of Newton ($188mm). Down in Florida MIDFLORIDA CU ($3.5B) will acquire Community Bank and Trust of Florida ($733mm) in an all-cash deal. BancFirst ($7.7B, OK) headed south and will acquire Pegasus Bank ($624mm, TX) for $122mm in cash (100%). Up in Minnesota Merchants Bank ($1.7B) will acquire The First National Bank of Northfield ($206mm). In North Carolina First-Citizens Bank & Trust Co ($36B) will acquire Entegra Bank ($1.6B) for $219.8mm in cash. (Entegra will also cancel a strategic merger of equals it entered into in January with SmartFinancial.)

In Arkansas Chambers Bank ($844mm) will acquire River Town Bank ($134mm), and in nearby Alabama CB&S Bank, Inc. ($1.7B) will acquire PrimeSouth Bank ($247mm). Teachers CU ($3.2B, IN) will acquire New Buffalo Savings Bank ($120mm, MI) for $21.3mm in cash (100%) or 1.29x tangible book. In Mississippi Hancock Whitney Bank ($29B) will acquire MidSouth Bank ($1.7B) for $213mm in stock (100%) equal to 1.4x tangible book. In Nashville’s neck of the woods Centennial Bank ($463mm) will acquire Chester County Bank ($72mm), and in Jimmy Carter’s home state Colony Bank ($1.3B) will acquire the mortgage business of Planters First Bank ($334mm).

A while back Zelman served as exclusive sell-side investment banker to Highland in connection with its sale to Berkshire Hathaway’s Clayton Properties Group. This transaction aligned Highland with the nation’s largest and best-capitalized housing organization in Clayton, along with natural entry-level product compatibility, geographic fit complimentary to Clayton’s existing builder portfolio, exceptional cultural alignment, and a shared dedication to customer experience and service. “Through this ninth acquisition since 2015, Clayton has positioned itself as one of America’s largest on-site homebuilding organizations.”

Capital markets

Compass Analytics has a lot of exciting updates to show you at MBA Secondary next week. Visit Booth #518, meet with a Sales Director or contact Compass to learn about how new Loan Level MSR capabilities can help you make better decisions about servicing pricing and values in your pipeline. Compass also has news about the latest servicing co-issue bidding capabilities, its recent white paper that discusses an important option for managing loan sales, and the comprehensive MI pricing coverage available through

CompassPPE. Finally, don’t miss the Compass Secondary Market Solutions feature in the current issue of HousingWire, also distributed at the MBA Secondary event in New York.

MAXEX, LLC, a residential mortgage loan exchange, announced the closing of a Series B investment round that was “led by AGNC Ventures, an affiliate of AGNC Investment Corp. and included the participation of Moore Asset Backed Fund, LP and other repeat institutional and private investors. AGNC is the largest internally-managed mortgage real estate investment trust and an active investor in residential mortgage assets.”

Turning to rates… up a little, down a little, and yesterday they were up a little with the 10-year ending yielding 2.41%. The release of better/stronger-than-expected April Housing Starts and Philadelphia Fed Survey didn’t help. Initial claims levels remained consistent with a tight labor market, which should translate into another month of solid nonfarm payrolls. On the trade front, China’s Ministry of Commerce spokesperson, Gao Feng, called on the United States to cancel tariffs on imports from China in order to avoid causing a “recession-like” impact on the world economy. In Europe, the European Commission fined Citigroup, JPMorgan Chase, RBS, Barclays, and MUFG a total of $1.20 billion for colluding in the spot foreign exchange market. Separately, British Prime Minister Theresa May’s Brexit deal is reportedly on track for another defeat in the House of Commons.

Today’s economic calendar is all at 7AM PT when leading indicators and Michigan sentiment will be released. We also have several Fed speakers, including Vice Chair Clarida, New York Fed President Williams, and Philadelphia’s Harper. And there’s Trump’s speech to NAR’s Legislative Meetings & Trade Expo in Washington, D.C. We begin today with Agency MBS prices better by .125 versus Thursday’s close and the 10-year yielding 2.36%.

(Thank you to Ray W. for this one. Warning: Do not read if offended by age-based jokes.)

The sharing of marriage…

The old man placed an order for one hamburger, French fries and a drink.

He unwrapped the plain hamburger and carefully cut it in half, placing one half in front of his wife.

He then carefully counted out the French fries, dividing them into two piles and neatly placed one pile in front of his wife.

He took a sip of the drink, his wife took a sip and then set the cup down between them. As he began to eat his few bites of hamburger, the people around them were looking over and whispering.

Obviously, they were thinking, “That poor old couple – all they can afford is one meal for the two of them.”

As the man began to eat his fries a young man came to the table and politely offered to buy another meal for the old couple. The old man said, they were just fine – they always shared everything.

People closer to the table noticed the little old lady hadn’t eaten a bite. She sat there watching her husband eat and occasionally taking turns sipping the drink.

Again, the young man came over and begged them to let him buy another meal for them. This time the old woman replied, “No thank you, we are used to sharing everything.”

Finally, as the old man finished and was wiping his face neatly with the napkin, the young man again came over to the little old lady who had yet to eat a single bite of food and asked, “What is it you are waiting for?”

She answered:

“THE TEETH.”

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

Rob

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

May 16: LO jobs; PR, HELOC, AMC, closing cost, loan trading products; free tech survey

“Rob, have you noticed that CNBC is running mortgage rates on its streaming ticker, on the screen? I wonder how they do it without disclosing APR, etc. It could be very confusing to consumers and harmful to lenders.” I personally don’t watch CNBC, finding it too reactionary and sensationalist, flash and pizazz versus substance. I don’t know where those mortgage rates CNBC posts come from, am sure its legal team signed off, but agree that it is misleading to treat mortgage rates like the price of IBM or Apple stock. Lenders know that mortgage rates are based on loan & borrower attributes, geography, lender, and investor. Post the current yield on the 10-year? Sure. A “one size fits all” mortgage rate posted like it changes every minute? Nope.

Jobs & opportunities

A group of 4-8 recently displaced wholesale Account Executives is seeking a new home. All have 5+ years of AE experience and come with a large book of long-term relationships. Please contact Anjelica Nixt if interested in establishing contact.

Volly, a leader in SaaS mortgage lending and marketing automation technology for the mortgage and banking industry, is seeking three Vice President/Director of Territory Sales. Volly is the consolidated new rebrand of LoyaltyExpress, SoftVu and LendingManager into a single component based, fully integrated loan officer technology and integrated marketing solutions for the mortgage and banking industry and already has some of the largest banks and mortgage companies as customers. “We are growing at a rapid pace and need talented sales individuals to meet the demand for our multiple product lines who can take ownership of, and grow, a territory through contacts, referrals, web leads, networking, emails, calls, conferences, partnerships, etc., and own the sales cycle from start to close. Experience selling enterprise software solutions such as CRM, LOS, POS, Marketing Automation is strongly preferred.

Mortgage industry experience is required. We offer a strong base salary and commission compensation package. Please submit resumes to sales@myvolly.com.

Lender products & services

My AMC, LLC is pleased to announce the hiring of Carolyn Covington as Sales Account Executive working in the Dallas, TX office to collaborate with My AMC’s nationwide customer base. “I accepted the position because I love what they do in terms of turn times, pricing and most importantly customer service”, said Covington. Covington comes to My AMC with over 20 years’ experience in the sales field. Covington’s extensive experience combined with her relationships and knowledge in the lending industry will allow her to transition seamlessly into her new role. Since 2004, My AMC, LLC’s purpose has been to deliver quality appraisals nationwide that are compliant with investor, state, and federal Appraiser Independence Requirements and provide a full spectrum of valuations for all mortgage origination channels including banks, credit unions, wholesalers, and brokers.

Home Point Financial is offering some of the most competitively priced Non-QM products in the industry with its Edge Near Prime, Expanded Access and AUS Express programs. Its May specials make a great deal even better for brokers and their clients. The Tier 1 Near Prime program features a 25-bps rate reduction for Borrower-paid loans, while the Tier 2 Expanded Access rate reduction is 50 bps. These offers are good for BPC loans locked through June 30 and must be closed and funded by August 15. All new May Edge purchase locks are also eligible for a pricing bonus of .50 bps for Tier 1 and .25 bps for Tier 2 and AUS Express. For the full story or to become a partner, visit Home Point.

Going to the Big Apple next week for the MBA Secondary Conference? It’s not too late to book time with an Informative Research team member to talk about how you can save up to 40% or more on out-of-pocket credit fees! It sounds impossible but it’s not. Click here to download a whitepaper (complete with a case study) that walks you through how Informative Research can help you find efficiencies at the beginning of the loan process. By utilizing better tools and techniques, you can have a more profitable workflow and improve your ratio of applications to closings. Click above to find out how!

FundLoans is announcing the Non-QM industry’s first Alt Doc HELOC. FundLoans’ Alt Doc HELOC allows 12-month bank statements, can go up to $500,000, and includes 5-year interest only for a 30-year term. With up to 90% CLTV and a standalone second, Fundloans’ Alt Doc HELOC is now available to utilize in: CA, WA, and FL. For more info contact FundLoans directly at 866.203.0912. FundLoans provides solutions in the Non-QM space and Non-QM lending up to $15MM. Through its Private Fund Division is a new blanket loan product with rates as low as 4.74%, and loan amounts starting from $500,000 to $20,000,000. These loans come with 5,7, and 10-year fixed options up to 75% LTV, recourse and non-recourse, and cash-out. Qualifying rental properties for this product include: SFR, Multi-Family, and Apartments. Contact FundLoans’ Private Fund Division at 866.203.0912 to learn more about this product.

Fundingshield asks, “Are you using the right validation tools & data to prevent wire fraud?” FundingShield, the HousingWire Top 100 Tech (HW100 2019) award winning solution for wire-fraud prevention, closing agent vetting and closing document certification, delivers current valid data that is actively updated to confirm closing parties are approved, licensed and also verifies bank accounts are held by the intended recipient. FundingShield offers good settlement coverage from the 1st dollar of loss up to $5mm per loan. FundingShield has the nation’s largest database of live vetted and approved closing parties (over 50,000) used by money center banks, non-bank lenders of all sizes. Lenders can easily integrate through secure APIs / connections and LOS integrations like Ellie Mae Encompass. Pay as you go for what you use at Fundingshield aligning the cost of vetting and fraud prevention to revenue generation! Contact sales@fundinghield.com or call 800 295 0135 x2.

San Diego’s ClosingCorp®, is the premier source of intelligence for closing costs and service providers in the U.S. residential real estate industry. The company delivers timely, accurate and transparent results that help optimize closing processes and services for mortgage lenders, title and settlement companies and real estate professionals. Its SmartFees service has received numerous awards, including the Ellie Mae Lenders’ Choice and is able to deliver actual rates and fees- not estimates- with one click and in less than a minute! Learn more about this product and the company at closing.com.

After over three years of revolutionizing the mortgage world with an in-depth detailed loan interview, PerfectLO is now capable of providing 100% customizable Forward apps, Reverse Mortgage Apps, Commercial loan apps, HELOC’s, AUTO, Personal Loans, Short Form Apps and more. Questions can easily be added, removed and or edited as well as any question format. The software is built on a rules-based flow charts allowing your borrowers to take a self-interview with no wasted questions. PerfectLO’s intuitive software is built so that any question can trigger a financial document. Its technology also makes it simple for this data to talk to your CRM’s and LOS’s.  Sign up for a free one on one demo today and your complete customized loan questionnaires could be “live” within a week. Visit their website for more details. Call 800-277-1687 or email them at Sales@PerfectLO.com

It’s proving to be a challenging year for some, and Rosalie Berg, president of Strategic Vantage, a top-notch public relations, marketing and social media agency that has helped over 100 companies in the mortgage industry, has some advice. “Companies that want to do well in this market need to always be on the minds of their customers and prospects. A terrific way to do this is through publicity,” says Rosalie. “At Strategic Vantage, we are always reaching out to reporters to make sure that our clients are regularly appearing in news articles. We also ghost write blogs and articles for our clients and secure them awards and speaking engagements. Our clients tell us that consistently being mentioned in the press has made a huge difference to their business.” If you’d like to get public relations, marketing or social media advice/services from Strategic Vantage, reach out to Rosalie Berg and check out the agency’s blog it has great marketing and PR advice.

Digital: involving or relating to the use of computer technology

Lenders, it’s time to take the System Survey, the first survey of STRATMOR Group’s 2019 Technology Insight Study. If you want insight into CRMs, Point of Sale and Origination systems, Closing and collaboration tools — the host of technology solutions available in the market today — participate in STRATMOR’s 2019 Technology Insight Study and get the answers you need. This year, STRATMOR has streamlined the study by creating multiple, single-topic surveys — this first survey can be completed in about five minutes.  Best of all, lenders who participate receive the reports for the surveys they complete for FREE. Complete all the surveys and you’ll have the entire 2019 Technology Insight Study for the investment of your time. Take the first survey now and rate the systems you’re using.

In retail news, U.S. Bank made a digital consumer home lending move. “This spring, U.S. Bank has greatly simplified it’s application process for home lending. It only takes about 15 minutes to submit an application and get a conditional approval for any of the products. We’ve also created a lot handy tools that let borrowers to use their payroll or tax filing providers to complete the application. There’s also a loan tracker tool that allows applicants to know the progress of their deal.”

1st Reverse Mortgage USA® and Baseline Reverse have teamed up to develop and implement powerful new pricing engine into its platform. Focusing on three main areas of business, servicing valuation, capital markets, and technology, “the revolutionary new reverse mortgage pricing engine allows mortgage loan originators to create instant, competitive reverse mortgage pricing scenarios. The new pricing engine technology named ‘SureLock’ is designed to process large amounts of pricing data and produce instantaneous responses satisfying the expectations of today’s digital mortgage loan originators and borrowers.”

The ComplianceEase® ComplianceAnalyzer® is now integrated with LendingPad®, the cloud-based loan origination system (LOS) from WEI Technology LLC. With this integration, LendingPad users can perform real-time audits for regulatory compliance violations without leaving their LOS. ComplianceAnalyzer audits both first mortgages and home equity loan and lines for federal, state and local requirements, including state predatory lending issues; changes in terms and fees; audit tolerance across all disclosures and changed circumstances; and track post-consummation disclosures.

Capital markets

MCT announced the official launch of Trade Auction Manager (TAM), a new electronic TBA trading platform designed to enable more efficient bidding of TBA MBS used by lenders to hedge their open mortgage pipelines. TAM was developed with lender clients and broker-dealers who collaborated in testing and a successful soft launch in early 2019. “The initial experience is showing that TAM will deliver a significant enhancement in execution for MCT clients,” said Phil Rasori, COO. Additional benefits of TAM include greater accuracy, increased speed, and a reduction of data entry errors.  TAM is available as a standalone solution or may be packaged with MCT’s hedging and loan sale platforms for more advanced functionality, such as automation of new bid tape AOT executions. Learn more about TAM’s features, participating parties, and Fannie Mae TBA Trade Desk connectivity by joining MCT’s Industry Webinar on TAM to be held June 6.

U.S. Treasuries rallied on Wednesday, including the 10-year dropping to 2.38% after retail sales growth in China slowed to its lowest level in nearly 16 years. U.S. retail sales and industrial production for April missing expectations aided the move. On the trade front, Treasury Secretary Steven Mnuchin said he expects to return to Beijing for trade talks in the “near future”, which was a reminder that trade officials from China and the U.S. are still in contact. Separately, it was reported that President Trump is likely to delay his decision on imposing tariffs on auto imports, signaling that the U.S. does not want to escalate the trade dispute with the European Union at a time when negotiations with China have lulled. Italy’s Deputy Prime Minister Matteo Salvini said Italy’s VAT will not be increased, adding that EU fiscal rules must be changed because they are impoverishing the continent.

Other news included the Federal Reserve Bank of Atlanta lowering its forecast for Q2 GDP growth following the disappointing reports on April Industrial Production and Retail Sales. Separately, Richmond Fed President Thomas Barkin said that it makes sense for the FOMC to remain patient on its rate outlook, given the current economic climate, saying there is no strong case to increase rates when inflation is under control.

Today’s domestic calendar began with weekly jobless claims (-16k to 212k), housing starts (+5.7% in April)/building permits (+.6%) and the Philadelphia Fed manufacturing survey (16.6). Treasury then takes over later this morning when they announce the auction sizes for next week’s 3- and 6-month and 1-year bills and reopened 10-year TIPS followed by the $50 billion 1- and $35 billion 2-month bill auctions. Finally, we have some Fed speak, with Minneapolis Fed President Kashkari and Fed Governor Brainard both taking the stage. We begin today with Agency MBS prices worse .125 and the 10-year yielding 2.39%. Investors concerned about a slowdown in global growth and additional tariffs on Chinese goods have fueled the bond rally.

Dirk N. writes, “You know what I hate? People who complain.”

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

Rob

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

May 15: Ops, AE, LO jobs; non-QM, TPO, marketing products; 2-yr yield lower than overnight FF – what is moving rates?

As we nip at the lowest interest rates in 2019, banking regulators are directing their attention to the declining quality of certain farm loans. A Federal Reserve report says from 2016 to 2018, nonperforming-loan ratios rose for farmland and agricultural production, as well as for credit cards and vehicles. Commercial loans aren’t risk free either. Flagstar has financial exposure totaling $69 million on a commercial and industrial loan to the now defunct reverse mortgage lender Live Well, per a 10-Q filing with the Securities and Exchange Commission. Flagstar’s stock sank accordingly. And for economic trivia, the U.S. is also seeing its lowest birthrate since 1986 – not exactly a recipe for an expanding economy. More on what is moving rates below.

Employment

Are you looking to grow your career? NewRezformally New Penn Financial, is a national lender backed by a well-capitalized publicly traded parent company seeking multiple operations and underwriting positions to support growth: seasoned underwriters, underwriter team leads, condo project review analysts, wholesale credit analysts, wholesale processors, closing managers, closers, wholesale loan setup & disclosure analysts, wholesale operation managers, team leads, and client relations representatives. Positions are available in Concord, CA, Milwaukee, WI, Atlanta, GA, Mt. Laurel, NJ and Plymouth Meeting, PA. “It is an exciting time to join NewRez,” says Dena Kwaschyn, Chief Fulfillment Officer. “We have implemented cutting-edge technology with a focus on automation and improved processes, heightening our productivity – and taking your career to the next level.” Signing bonuses available for the right candidates in certain roles. Contact Vince Daino, VP of Recruiting to “Rise with NewRez!”

In wholesale job news, ClearEdge Lending recently announced John Burns, VP of Sales has joined its team to lead the company’s growth in new markets across the Southeast region. Burns will lead company’s efforts to expand its Non-QM presence in GA, FL, NC, TN, AL, MS & SC. ClearEdge recently hired Account Executives Nina Barroso (Atlanta MSA), Rick Culp (“Space Coast” area of FL) and Bob DellaPorta (N. Miami and the Atlantic coastal counties of FL) who each bring over 20 years’ experience in the wholesale and mini-correspondent mortgage lending channels. “We are excited about adding these extraordinary individuals to our ClearEdge family and look forward to see the growth throughout the Southeast.” Those interested in a growth-oriented career with ClearEdge Lending should email John Burns for outside sales positions in GA, FL, NC, SC, TN and Matt Shaw in CA & AZ.

“Several top producers just returned from the annual Circle of Excellence trip at Secrets Maroma Resort in Cancún. Each year, First Community Mortgage recognizes top producers, along with loan originators who achieved the greatest production increases from the previous year. We are looking for loan originators throughout the Southeast who are ready to join a team that invests in you. First Community Mortgage, affectionately known as Human Mortgage, is the perfect place for loan originators to thrive. Our experienced support staff and advanced technology help streamline the mortgage process, so you have more time to be more human. Just think how much more human you can be if technology is doing all the work. Our emphasis on work-life balance helps ensure you have time for the humans in your life that matter at work and at home.” Those interested should apply through the First Community Mortgage careers page.

Amerifirst Home Mortgage, a division of Amerifirst Financial Corporation, is continuing its strong growth trend in the southeastern U.S. with the addition of mortgage industry veteran Linda Thomas as district manager. In this key leadership role, she will utilize her two decades of mortgage knowledge and sales experience to identify new opportunities, develop and maintain strong business relationships and support the team as they continue to provide superior customer experiences for new homebuyers. Linda She is based in the Tampa, FL, office. The 35-year-old mortgage lender also hired 16 new loan officers to serve the central Florida area; Amerifirst now operates eight full-service branches in the state. Read the Amerifirst Southeast Region expansion press release.

Movement Mortgage is setting production records this spring, locking the most loan volume in a single month in company history during April and projecting its largest month of fundings ever in May. The top 10 retail mortgage lender has expanded in 2019 with the addition of top producing LOs across the country. It’s acquisition of Eagle Home Mortgage in February is already paying dividends, according to CEO Casey Crawford. He said in a live video on his Facebook page this week that 1 out of every 5 LOs who joined Movement from Eagle have already reported personal records for monthly closings. Movement is focused on creating additional opportunities for LOs to grow their business and increase market share through new tools like Movement Mobile and its industry leading 7-day process. Check out all the ways Movement is creating opportunity and supporting LOs at its new Movement TV video gallery at MovementLO.com.

Lender products and services

Non-QM origination volume continues to grow at a robust pace even in the face of the current refinance run that the industry is benefiting from, the key for originators right now is to invest in the non-agency industry to be prepared for when purchase season winds down and refinance activity slows. This is a challenging proposition, to invest in your future at a time when your plate is full, but the investment will be worth the effort. Those that invest in their education and business now will be the winners six months from now in the Non-QM origination market. To aid in your Non-QM education, please take the opportunity to watch and listen to the most recent webinar put on by Deephaven and LoanScorecard discussing trends in Non-QM and reviewing the Identi-FI AUS. Deephaven’s AUS powers Non-QM decisions at your fingertips. If you are interested in working with a Non-QM specialist, get in touch with us today at brokerinfo@deephavenmortgage.com (Wholesale) or sales@deephavenmortgage.com (Correspondent).

Start doing business faster with Stearns Lending Wholesale Division. Introducing the new TPO Application Portal. Stearns is excited to introduce a client application portal that makes it easier to start doing business with Stearns. Whether you’re in a pinch and need to get a loan submitted to Stearns for the first time or experience for yourself the power of Stearns, the SNAPstart portal is a quick and efficient to way to get approved with Stearns. Simply input 12 pieces of basic information about your business and get started in a SNAP with Stearns. For 30 years, Stearns has empowered their brokers with tools to help them work smarter, more efficiently and close more loans. Contact your AE for details or email Stearns.

Getting ready to attend the MBA’s National Secondary Market Conference May 19-22? Non-QM is on the rise and Angel Oak Mortgage Solutions is at the forefront. Now is the perfect time to learn more about non-QM and how you can work with the leader in this space. We’ll be at the Chatwal in Times Square talking non-Agency and how we can help you serve more borrowers. Schedule some time with our team by simply emailing infocorr@angeloakms.com to learn how you can become a correspondent lender with Angel Oak.

Did you know that the success of your brand is directly tied to the health of your culture? Do you want to learn what is working well and what areas need to improve? Seroka Brand Development offers a proprietary internal culture questionnaire for companies in the mortgage industry. It is designed to give you the insights you need to identify internal changes that can create a culture where people love to come to work every day, inspired to give their all to their fellow employees and your clients. The result is achieving an environment of operational excellence and continuous improvement fueled by employees who want the best for their company. To learn more email Scott@Seroka.comand get ready to #TurnUpYourBrand!

Floify just unleashed its completely redesigned landing pages, which now include built-in mortgage calculators AND lead capture forms. Now, every lender who uses the Floify point-of-sale system to automate their mortgage origination process can implement these powerful landing pages in minutes. Once enabled, lenders can customize the look and feel of their pages with an all-new in-browser editor, and even display their company and real estate agents’ branding together on unique co-branded pages, ensuring mutual clients receive a familiar and comfortable homebuying experience from start to finish. For lenders looking to generate more mortgage leads, a simple form can be required before allowing access to your calculators. Once a prospect calculates a mortgage scenario, you will receive a notification, complete with the prospect’s contact info for immediate follow-up. Check out how these exciting new features can take your lending to the next level – request a live demo of Floify today!

Capital markets

A slow economy leads to lower rates as lenders, notably banks, lower rates in order to encourage borrowing. Supply and demand! There has been a lot of talk around predicting recessions lately based on two well-known indicators: the unemployment rate reaching its trough and the fed funds rate reaching its peak before each recession since 1953, on average about eight months before a recession’s start date. Analysts are concerned we have reached a trough since the unemployment rate declined to the lowest in over 45 years at 3.7% in September.

This worry intensifies considering the fed funds rate may be reaching the peak of its cycle as it is expected the FOMC will slow the pace of rate hikes this year. Given the notorious associated with recession, it is worth asking if the unemployment rate and fed funds rate are actually reliable predictors of recession in real time? There is a varying degree of lead time per cycle and these inflection points are backward looking, making it difficult to identify them in real time.

Further, different business cycles have varying troughs for the unemployment rate, ranging from 2.5% to 7.2%, while the peak fed funds rate has ranged from 3.0% to 20.0%. If a specific unemployment rate is utilized as a threshold to predict the next recession, analysts would likely always be unsuccessful. The varying trough values across business cycles is because the depth and duration of each cycle are different and the evolving nature of the economy dictates the unemployment rate.

While the fed funds rate does peak before each recession, the range is from two to 18 months. And some business cycles have multiple peaks of the fed funds rate, meaning the peak fed funds rate may not always be associated with recession. Given that we are currently in the second-longest expansion on record, and multiple peaks are typical of long growth periods, it may be hard for analysts to utilize in real time. Like the unemployment rate, it is also a backward-looking indicator of recession. But recession prediction can be improved by monitoring things such as if the unemployment rate is persistently below the natural unemployment rate, indicating the labor market is functioning at full potential and the economy is close to its peak. Or a fed funds rate above its natural level would suggest that the current stance of monetary policy is neutral or contractionary, a stance associated with a mature expansion suggesting the possibility that the economy is near its peak.

In reality, there are many variables and it is difficult to obtain real-time reliable estimates of the natural rate of unemployment and the fed funds rate. This much has been suggested recently by FOMC Chairman Powell, adding that in real time it is very difficult to reliably estimate the natural unemployment rate and fed funds rate as evidenced by the Congressional Budget Office’s revising the non-accelerating inflation rate of unemployment estimates significantly. Powell stated policy recommendations would have been very different based on the revised figures rather than those using the real-time estimates. In summary, the start date of a recession determines the value of the unemployment rate trough, and while during longer expansions the fed funds rate has experienced multiple cycles, it is tough to predict the next recession with either benchmark as both indicators are backward looking.

U.S. Treasuries bounced back slightly from Monday’s rally, including the 10-year closing at 2.42% after a slight improvement in sentiment. The Trump administration indicated that talks with trade officials from China will continue, but a timetable released by U.S. trade rep Robert Lighthizer suggested that tariffs on the remaining imports from China could be imposed in late June. Import prices declined in April, creating another data point that shows a lack of worrisome inflation pressure. Concerns for bond investors revolved around if Prime Minister May will be able to hold onto her position and Salvini’s comments about potentially breaking EU fiscal rules.

Throwing investors for a loop with the announcement by PIMCO that it is postponing what was expected to be the largest ($1 billion) mortgage REIT (PIMCO Mortgage Trust) IPO on record, which was expected to issue 50 million shares at $20 per and price after Wednesday close. PIMCO cited “unfavorable equity market conditions, specifically in the market for initial public offerings” as the reason with no future date mentioned in its press release.

MBA mortgage applications for the week ending May 10 kicked off today’s busy calendar (apps dropped slightly). We’ve also had April Retail Sales and NY Fed Manufacturing for May (-.2%, disappointing, and 17.8, respectively). Later this morning sees April industrial production and capacity utilization, Fed Governor Quarles speaking, March business inventories, the NAHB Housing Market Index for May, Richmond Fed President Barkin, and finally March TIC data. We start the day with agency MBS prices better .125-.250 and the 10-year yielding 2.37%.

Hey, I like music as much as the next person. Torture? That’s something else. Here are the top CIA tunes for torturing terror prisoners.

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

Rob

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

May 14: LO jobs; cap. mkts/MSR, customer service products; training & conferences coming up soon

What’s in a name? Lots. Try asking someone what “gluten” is. (Here’s a comical look at that.) Try asking someone in our business what the difference is between a “mortgage” and a “deed of trust.” How about new MLOs knowing the difference between an index, a cap, a start rate, and a margin? Depending on the week and lender, 5-10% of applications are adjustable rate loans. There are hundreds of billions of residential ARMs being serviced, and markets for cash products and derivatives are progressing toward Libor replacement. But they are taking slightly different approaches. Cash markets are leaning toward a forward-looking term Secured Overnight Financing Rate, while the derivatives industry appears to be embracing a compounded SOFR in arrears. ARM servicers await…

Jobs & personnel moves

“Are you looking for a new opportunity? Where innovation, hard work and tenacity is rewarded? Meet Motto Mortgage. We believe our network deserves the very best which is why we empower each and every Motto Mortgage loan originator with the right tools and training to stay ahead of the competition. In fact, the Motto Mortgage network is aggressively recruiting for loan originators in the following states: Georgia, Illinois, Nevada, New Jersey, Ohio, Pennsylvania, Texas, and Virginia. With over 100 franchises sold and nearly 90 offices open in 30 states, our national presence continues to grow. If you’re ready to take that next big step, contact us (866.668.8649) to see why Motto Mortgage could be the perfect opportunity you’ve been waiting for.”

After six months, 30 lender interviews, lots of spreadsheets and due diligence, 27-year mortgage veteran Kenn Bartley made his decision to join Canopy Mortgage as the Pacific Northwest Business Development manager and is inviting others to join him as part of a branch, move an existing branch, or operate independently on their own! Watch this video announcing Kenn’s decision to join Canopy, and then contact him to see if you match this innovative new model where efficiency, technology, low rates and high compensation merge.

In reports just released for year 2018, Cornerstone Home Lending, Inc. closed its VA loans almost a FULL WEEK quicker than the national average! This is yet another testimonial confirming Cornerstone’s commitment to serving veteran. Cornerstone’s average VA loan closing was 29.8 calendar days vs. the average of 35.1 days for the rest of the country’s VA lenders. Reports like this give traction to the innovation Cornerstone is pouring into the mortgage industry. Not only are loans getting to closing faster, but borrowers are spending only minutes at the closing table with Cornerstone’s EXPRESS CLOSING. If you are a top producer that takes pride in the highest level of service, reach out to Todd Sanguras.

It’s big news when this industry’s Rock of Gibraltar makes a move. Yes, industry veteran Allen Friedman has joined forces with one of the leading lenders in the market today, Cardinal Financial. Cardinal reports that as VP and Market Leader, Friedman will assist in building the Cardinal footprint nationwide. When asked what motivated him to align with Cardinal, Friedman states, “It is clear that a limited number of lenders are poised to excel in this market. Size, financial strength, technology, ease of service, and stability matter. Cardinal is perfectly positioned to continue its expansion on all fronts.” If you’re interested in having a discussion with Friedman or gaining his perspective on 2019 and beyond, feel free to call (415) 298-2500 or email him directly. This commentary has been following both Friedman and Cardinal for some time. We share in his optimism and wish great success in his new endeavor.

Lender products & services

Compass Analytics and MountainView Financial Solutions have announced the industry’s first integration of third-party MSR marks and pipeline hedge analytics. Through this integration, mutual MountainView and Compass clients will be able to access loan-level MSR prices and durations generated by MountainView MSR models within the CompassPoint™ pipeline hedge analytics solution. The technology integration of MountainView’s MSR market pricing will help originators to value MSRs far more accurately in rate sheets, pricing engines and best execution retain/release decisions while supporting better MSR hedge decisions. Dave Bennett, Managing Director of Sales at MountainView, explains, “Our customers will have much cleaner valuation discovery so they can retain undervalued MSRs (and vice versa), minimize capitalization vs. new loan value disconnects, and properly manage the fluctuating pre-MSR values immediately from the day the loan is locked. With increasing demand on pricing granularity, this partnership with Compass solves a critical business need.” For more information about the benefits of MSR valuation integration contact info@compass-analytics.com!

CMOs are expected to both mastermind creative projects and optimize data-focused conversions. The CMOs most likely to succeed at these wildly different tasks are those who have teams that are both data literate and creative. So how can you build that kind of unicorn-like team? Read the Total Expert blog, How CMOs Can Attract & Retain Creative Data Experts, for three strategies that will help.

Your 2019 revenue goals are at risk if you don’t have the 3 Ps when it comes to your partnerships and loan workflow: 1) Protection: make sure you have access to critical data right when you need it, 2) Process: guard your workflow and keep it moving without interruption and 3) Profit: Keep your growth initiatives on track with vendor system reliability and redundancy. Are you lacking one or more of these crucial elements to a successful workflow? Informative Research has a proven track record in all 3 areas and supports their clients at every step with guaranteed reliability and complete redundancy. For more details, click here to talk to an IR team member today and start getting lower costs, better service, and reliable solutions.

Find the right home lending software. For in-house teams who are still evaluating and testing digital lending platforms, Blend has compiled a guide of our customers’ collective advice. We hope it shines some light on what can be an incredibly intimidating process. Download the guide.

Trainings and Events to finish May and enter June

Join us for National Mortgage Professional Magazine’s complimentary webinar “Why Brokerage is Back and So Much Better,” on Thursday, May 16 at 2 pm Eastern/11 am Pacific featuring Ward Morrison, President, Motto Franchising, LLC, and best-selling author, Ginger Bell. In today’s hyper competitive world of online applications, super mortgage shops and technology overload, there is an emerging trend to bringing the local mortgage broker back into the community. This informative webinar will show you why brokerage is back and better than ever. Ward and Ginger will explore the history of mortgage brokerage’s ups and downs, why mortgage brokerage is a compelling business for you and your customers, important information on what it takes to get started, and you will walk away with all of the options available to make the process of starting your own mortgage brokerage easier. Register for this complimentary webinar here.

National MI is pleased to invite you to join its upcoming Mortgage Leadership Roundtable, titled ‘Digital Transformation of Mortgages and MI”. The event is at the Granite Links Golf Course in Quincy, MA. June 18th. Explore automated MI pricing and Best Execution (Best EX), We have a winning lineup of guest speakers including Billie Jo Simoneau (Manager, Professional Services, SourcePoint), Keven Foley (Sales & Business Development Compass Analytics), Keith Anderson (VP, Sales, Optimal Blue), Arvin Sahakian (Co-Founder BE SMARTEE), and Michael Piombino (SVP, National Sales, EMPOWER). Also featuring National MI’s Mike Dirrane, CSO, Senior Managing Director and Mohammad Yousaf, VP, Business Development & Technology Partnerships, with special thanks to our special Sponsor Accenture. Please RSVP as space is limited directly to Nancy Early.

For any lenders, servicers, or vendors doing residential business in California, the California MBA is offering three great incentives to “Start a Conversation” and join in May: 50% off first year dues, double the value of their 3Under35 program, and $1,000 off on sponsoring either 2019/2020’s Mortgage Innovators Conference.  Click here to find out more.

Join Clark Schaefer Hackett for a webinar on how to mitigate cyber risk and diminish threats specific to the construction and real estate industries on Wednesday, May 15th at noon (ET).

President Donald Trump will address the National Association of Realtors at the Realtors® Legislative Meetings & Trade Expo in Washington, DC on May 17 at the Marriott Wardman Park Hotel. Contact Mantill Williams for info.

Fannie Mae is gearing up for the MBA’s Secondary Conference and sharing tools designed to optimize lender’s liquidity. Fannie’s SVP of Capital Markets, Renee Schultz, will share “Perspectives from GSE Leadership” on Tuesday May 21 at 11:15 a.m. as well as “Transitioning the Mortgage Market Away from LIBOR” on Tuesday May 21 at 1:45 p.m. Fannie Mae will also share insight on digital mortgages at the Closing General Session in an informative session “Secondary Market Considerations for Digital Mortgage” on Wednesday May 22 at 9 a.m., featuring Shane Hartzler, Director of Product Management.

All in One LoanTM, Training Event: Join CMG Mortgage Inc., Correspondent Lending on May 20th at 2PM ET in SUITE 463, Marriott Marquis to learn how the All in One LoanTM works and what it can do to improve your product offering. During this session we will discuss how the All in One LoanTM functions like as an Offset-Mortgage, recent product enhancements, repayment statistics, payment acceleration, customer banking experience, and how to successfully deploy as a Correspondent Partner. Email Gina Paola to RSVP.

U.S. Bank Home Mortgage is partnering with MGIC for an exclusive Temporary Buydown Webinar on Thursday, May 16th.

Freedom Mortgage Wholesale is providing two online training sessions for the Freedom Flex 95% LTV/CLTV Cash-Out with no MI. Available training dates: Friday, May 17th and Monday, May 20th.

The Oklahoma Mortgage Bankers Association has its annual conference on May 21st and 22nd in Tulsa OK.  The speaker line-up includes: Frank Abagnale, who inspired Catch Me if You Can; MBA’s Tricia Migliazzo, leading an mPower panel of Oklahoma women in leadership; MBA’s Chairman, Chris George; Federal Reserve Associate Economist, Megan Williams; and more, including a VA training session covering their newly released guidelines.

Join the MCPAOA on May 22nd for an informative hour discussing the pending rule for Temporary Licensing Authority/Transitional Licensing with Haydn J. Richards, Jr., Partner with Bradley, Arant Boult Cummings, LLP. Listeners will hear information on Section 2155 of the federal Economic Growth, Regulatory Relief and Consumer Protection Act going into effect on November 24th, 2019.

FHA is offering a FREE, On-Site FHA Credit Underwriting Training in Denver, CO. on the following dates: May 21st from 8:00-4:30 and May 22nd from 8:00-4:30. And a FREE, 2-Day, On-Site FHA Credit Underwriting Training in Portland, OR on Thursday, May 30th, and Friday, May 31st from 9:00-5:00.

June 9-11 is NYMBA’s 5th Annual Convention at the Albany Marriott.  Sponsors & Exhibitors are encouraged to sign-up early.  Guest speakers include MBA Chair Chris George, mPower’s Marcia Davies, Economist Marina Walsh, Mike McAuley, Jack Konyk and yours truly, Rob Chrisman. Register TODAY. Discount hotel room rates are guaranteed through May 13th. On the menu: API, CEO Roundtable, Compliance, Marketing to Millennials and Beyond, review of Affordable Housing Programs with Fannie Mae, Freddie Mac, SONYMA, USDA; NYS DFS Deputy Superintendent and more. Don’t miss this premier event.

Loan Servicers are invited to register for MBA’s Advanced Servicing Workshop June 5th & 6th in Dallas. This course covers all essential servicing topics geared towards experienced professionals.

Are you ready for the new URLA? Register for the Sacramento CUREN Meeting on Thursday, June 13th. John Haring with Ellie Mae will be discussing what you need to know to prepare for the upcoming changes to the URLA. John Templeton with Arch MI will be giving an update on what’s new at Arch MI and hosting the social event.

In a purchase market, relationships are key, and HousingWire has designed a super session at its engage.marketing summit to deliver the practical tips you need for finding, building and creating strategic referral relationships with Realtors, builders, financial planners and other valuable sources at this two-day summit, June 13th-14th in Charlotte, NC.

DIEHL Mortgage Training & Compliance, an industry leader in FHA training since 1983, has developed an FHA Manual Underwriting Webinar scheduled on June 14th from 8:00-12:00 ET.

Optimize your CECL methodologies, implementation and reporting efforts for an accurate and timely submission at the 6th Edition Credit Risk Modeling, June 12th-14th in Chicago. Attendees will hear the latest updates and feedback from the regulators to help them drive their implementation efforts. Delegates will have a chance to benchmark their efforts around credit card modeling and will walk away with the best methods to gather and analyze the granular data required for CECL submissions.

Top of Mind is hosting its annual Surefire Summit 2019 in Las Vegas on June 4 where a group of industry thought leaders, partners and peers will show how Surefire complements top sales and marketing strategies to unleash potential. Not a Surefire user? Attend anyway and learn strategies that are useful outside the platform as well. This event is for loan originators, marketing and sales managers, and leaders within the mortgage industry who are looking to maximize their productivity and profitability. Register today to reserve your seat for this free event and save $200 on your Mastermind ticket.

Capital markets

Yesterday rates improved (the 10-year closed yielding 2.41%) as global uncertainty surrounding the trade war between the U.S. and China hurting our economy grabbed headlines. China’s Ministry of Finance announced that tariffs on $60 billion worth of U.S. goods will be increased on June 1. U.S. Trade Representative Robert Lighthizer is reportedly preparing a 25 percent tariff on all remaining imports from China. President Trump said he will meet with China’s President Xi Jinping as well as Russia’s President Vladimir Putin at the G-20 summit in Osaka at the end of June. Geopolitical uncertainty has historically been beneficial for homeowners looking for lower rates, so developments on the trade front could strongly dictate refinance volumes going into the future.

For today’s news we had the NFIB Small Business Optimism Index (improved in April) and April import prices (+.2%, missing forecasts). There are three Fed speakers scheduled: New York’s Williams already delivering remarks in Europe; Kansas City’s George, and San Francisco’s Daly take the stage later. Also today, FHFA Director Calabria speaks on the GSEs before NAR’s Regulatory Issues Forum in Washington, D.C. Tomorrow, PIMCO Mortgage Income Trust (PMGT) is scheduled to raise $1 billion (50 million shares at $20) and price after the close, targeting mostly RMBS. We begin today with Agency MBS prices unchanged and the 10-year yielding 2.40%.

“Sarcasm will get you nowhere in life,” my boss told me.

“Well it got me to the ‘International Sarcasm’ finals in Santiago, Chile in 2009,” I informed him.

“Really?” he asked.

“No,” I replied.

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

Rob

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

May 13: LO, bus. dev., AMC, AE, cap. mkts. jobs; vendor mgt., reno, pricing products; lender disaster updates

I want an Ethereum-powered home loan! It doesn’t matter that I don’t know what Ethereum is; apparently they’re on their way to NY and CA. “Tokenizing the house” doesn’t sound warm and friendly, but now you can add Fluidity and Propellr to the list of companies other lenders will fret about, or the list of fintech companies that take a stab at home lending and find out how complicated it is. What about something old-fashioned like… naming a stadium? Guaranteed Rate general counsel Neil Hayes was involved when G- Rate needed legal help renaming the White Sox stadium in 2016. Here’s a look at legal’s role in purchasing a baseball field’s naming rights, and the negotiations that followed.

Employment

On Q Financial, Inc., one of the Top 50 mortgage lenders in the United States and licensed in 45 states, is looking for a Secondary Marketing Manager. On Q is looking for candidates with strong experience in hedging, loan sales, and managing investor relationships. Interested candidates should submit resumes to Erin Dueck.

In addition, On Q is expanding its One-Time Close Construction Team and is looking for a Construction Project Specialist to complete project reviews and act as builder liaison. Must have minimum of 5 years’ experience working with construction loan products. On Q offers One-Time Close Construction up to 95% LTV Conventional, FHA, VA, and USDA transactions for over two years and the pipeline is growing fast! Interested candidates should submit resumes to Lisa Sleeper. Also, if you are a Loan Officer with construction experience, we would love for you to join our team! Interested candidates should submit resumes to Nick Suwanvichit.

“IMPAC continues to lead the charge in Non-QM. IMPAC is growing rapidly and we are

hiring Account Executives in, Utah, Washington, Oregon, Colorado and many other locations throughout the nation. For more information, contact Louise Woods. As a PIONEER of Non-QM lending, IMPAC offers valuable training, including: webinars, large events and in-office training – yours or ours. Our next exciting webinar is focused on our Bank Statement Program and is scheduled for Tuesday, May 21 at 10:00 AM PST. Don’t miss out, register now! Other training topics include: Asset Qualification – “Which assets can you use?” Investor Loan Program – “How do you calculate DCR accurately?” Loan Processor Training – “How to complete and submit a Non-QM loan file correctly.” Sales Growth Training – “How to increase your business with Non-QM.” Now is the time to explore the Non-QM marketplace with a partner that will help you succeed! Contact us today to get started.”

Market Valuation Services ‘The Confident Choice in Appraisal Management’ is pleased to announce the addition of Cherie Pheiffer to our national sales team. She is a Texas native with more than 30 years’ experience in the mortgage industry. Cherie is based in Dallas, where she is president elect for the Dallas MBA. Her knowledge, professionalism, and customer focus make an excellent addition to the MVS team. MVS is a privately held corporation founded in 2010 headquartered in Atlanta. Facilitating the appraisal management process for more than 150 clients in all 50 states, MVS has a track record of brand consistency throughout tremendous growth. Our valued client partners appreciate the customizable and boutique approach we bring to each and every relationship.” MVS is actively seeking additional sales support in its West Coast and North East regions. Please contact Donna Stephens, National Sales Director.

Wipro Gallagher Solutions (WGS), a leading provider of loan origination software solutions, and a Wipro Limited company, is seeking a Business Development Manager for sales and marketing activities for company’s multi-channel loan origination software solutions suite, NetOxygen. The BDM will be responsible for lead generation and follow-up, pipeline management, drafting proposals, solution selling, conducting product demonstrations, negotiating and closing deals. WGS currently offers both enterprise and hosted models that cover Tier I, Tier II, and Tier III lending institutions (banks, independent lending institutions). Experience in software sales to the financial industry, especially the mortgage and consumer lending arena, is required. An understanding of the mortgage origination process and/or consumer lending process, and exposure to state & federal regulations in mortgage/consumer compliance, is a major plus. If mortgage specific experience is lacking, then prior financial services or credit product experience will be an advantage. Please contact Girija Murali.

Apex Lending in Santa Ana, CA is excited to announce that industry veteran Kyle Tague has joined its team as Vice President of Sales. After nearly two decades with Flagstar Bank he is a strong addition to Apex Lending’s efforts to expand its footprint and grow its branch network. The Company’s growth has been due to employing highly skilled professionals whom are dedicated to creating a productive environment and providing exceptional service. Apex is actively seeking Loan Officers for its Orange County office and branches in several states across the country. If you are an originator or producing branch looking for competitive pricing and corporate transparency, please contact careers@apexlending.com.

Congrats to Rob Porges who has joined Flatworld Solutions as a Senior Partner, responsible for managing sales of Flatworld’s growing mortgage and financial services client base as well as driving new business and awareness of Flatworld’s broadening customer solutions and brand.

Lender products & services

Are you a broker or correspondent looking for a long-term partner to help you originate single-close construction (One-Time Close) or renovation loans? A partner who has expertise with FHA, VA, and USDA loans, as well as conventional products? A partner whose knowledge and understanding of the manufactured home space is able to help you grow your business into these markets? A partner large enough to offer the full breadth of capabilities you need, yet small enough to personalize those capabilities to your business needs? Then, look no further than AFR. For over 20 years, AFR has been providing their business partners with industry-leading technology, ready-to-use marketing materials, a wealth of professional expertise and convenient education opportunities. Plus, it also offers an impressive range of products and value-added services. Find out even more by visiting www.afrwholesale.com. Questions? Email sales@afrwholesale.com or call 1-800-375-6071.

TCF Bank’s Relationship Lending Unit is excited to announce that we have reduced margins in a number of our credit and CLTV buckets, with pricing as low as Prime minus .51%. ‘Our goal at TCF is to continually provide our valued partners the ability to meet their customers’ growing HELOC needs,’ said Mark Zierott, SVP, National Sales Director at TCF. Couple that with TCF’s recent announcement to pay 1% of the loan amount, no less than $750 nor more than $1500, on a Stand-Alone transaction and TCF continues to be the HELOC partner of choice for loan officers. Please contact your existing Business Development Manager (BDM) for more details.  If you are not currently an approved partner, please email us or visit our site for more details.”

LoanCraft is working to develop and expand its vision for how pricing technology should help wholesalers deliver their product. LoanCraft’s technology goes beyond automating rate sheets and providing pricing for standard QM agency programs with a variety of tools embraces a wide range of loan types and non-agency or non-QM business. If you’re a wholesale lender who wants pricing technology to help you deliver innovative products, they want to talk to you. Contact Ron George or visit LoanCraft’s website to obtain its white paper: “Engineering Pricing Technology So Wholesalers Can Deliver Innovation.”

“Vendor oversight is becoming increasingly complex, and without a technology solution in place to manage vendors, your organization’s data, operations, and reputation are all at risk. Introducing Vendorly®, a SaaS-based TPRM solution designed for and by vendor management professionals. Leverage our real-world experience of sitting on your side of the table and managing in excess of 55,000 vendors. Learn how to automate your vendor management program by leveraging integrations with the CFPB Consumer Complaint Database, OFAC and other leading data providers. Click to watch Vendorly’s short informative video to learn more.”

“It’s about time the east coast had its first-ever Mid-Atlantic Regional Conference. And to celebrate, TMS is proud to sponsor the happy hour event at MBA/MW – MMBBA MARC 2019. Join us for drinks and networking at 5pm on Tuesday, May 14th in the MGM Grand Ballroom. While there be sure to find TMS Correspondent SVP Joseph Villani or email him to schedule a meeting.

Disaster updates

Every lender and investor have policies and procedures triggered by a declaration announcement by FEMA.

Ginnie Mae is utilizing technology to stay on top of natural disasters by developing its own dashboard aimed at tracking disaster-related risk. Ginnie Mae said the dashboard allows it “to get ahead of the curve, assess potential loss exposure and understand the magnitude of disasters’ impact on first-time homebuyers, low-income borrowers and veterans.” The dashboard provides real-time risk assessments and a forecasting component to estimate potential future impacts of natural disasters. Users can test different scenarios, model stress on lenders and measure default risk.

Mortgage Solutions Financial issued a revised Announcement 09-19C regarding the Iowa Flooding, a revised announcement regarding the Nebraska Flooding Disaster Alert and an announcement regarding the Alaska earthquake disaster.

loanDepot Wholesale/Correspondents’ weekly newsletter covers updates to Jumbo and Credit Advantage, disaster declarations for additional Nebraska counties and April key dates.

Freedom Mortgage Wholesale issued a Flood Notification Reminder: On table funded loans, the Flood Notification Disclosure is mailed to the borrower by Freedom Mortgage once it is determined that the property is or will be in a flood zone. On warehouse purchase loans, the Flood Notification Disclosure must be provided to the borrower by the client. The flood certification ordered by Freedom Mortgage is available in the Document Center for your reference.

SunWest Mortgage Company released updated information regarding FEMA declaration of Nebraska as Major Disaster Areas.

On April 11th with DR-4420, FEMA granted federal disaster aid with individual assistance to 12 additional NE counties affected by flooding during the period of 3/9/2019, through 4/1/2019. An Incident Period End Date was also noted. Contact AmeriHome Mortgage Company for its inspection requirements.

First Community Mortgage posted Wholesale Announcement 2019-09 with Nebraska disaster.

LoanDepot Wholesale/Correspondent published its weekly announcement with information on Sun-setting its 40-year Interest Only Program, Signed 4506T for Business and Disaster Declaration Additional Counties.

Fifth Third Correspondent posted links for the FEMA disaster declaration specific to counties in Nebraska and Alabama.

FEMA has declared the Nebraska counties of Butler, Dodge, Sarpy, Cass, Douglas, Saunders, Colfax, Nemaha and Washington as disaster areas. Iowa counties of Fremont, Monona, Harrison, Woodbury and Mills have also been declared as affected by the recent severe storms. Loans in these counties must be in adherence with the Mr. Cooper Disaster Area Lending guidelines. To view the Disaster Area Lending guidelines for Mr. Cooper (and Mr. Cooper formerly Pacific Union), see the respective Seller Guides in the Mr. Cooper libraries within AllRegs.

SunWest Mortgage Company posted information regarding the FEMA disaster update for Iowa.

CoreLogic has integrated its Instant Merge credit and flood services with LendingPad’s cloud-based, loan origination system (LOS). This integration helps LendingPad stay at the forefront of industry innovations by providing mortgage professionals with the ability to modernize the complex LOS, streamline the origination process and lower overall costs. CoreLogic Flood Determinations are the most widely accepted and transferable Life of Loan Determinations on the market. CoreLogic guarantees that its Flood Determinations meet all federal regulatory requirements. Using the Standard Flood Hazard Determination Form from the Federal Emergency Management Agency (FEMA), the Flood Determinations provide all the information necessary to determine whether flood insurance is available or required.

Capital markets

U.S. Treasuries finished last week flat, including the 10-year closing unchanged yielding 2.46% as the news cycle throughout Friday revolved around tariffs on $200 billion worth of imports from China increasing to 25 percent from 10 percent overnight despite trade talks between the two nations in Washington. Treasury Secretary Steven Mnuchin described Friday’s meeting with China’s Vice Premier Liu He as “constructive,” though reports allege U.S. negotiators told their Chinese counterparts that tariffs will be imposed on the remaining imports from China if trade talks are not completed within the next three or four weeks. Atlanta Fed President Bostic did comment the Fed may have to cut rates if higher tariffs on imports from China begin having a negative effect on consumers and GDP.

The muted April CPI report from Friday should keep the Fed in a neutral state of policy-setting and does leave some uncertainty over what and when the Fed’s next move will be. Elsewhere internationally, the Reserve Bank of Australia’s latest quarterly statement assumed that the cash rate will be cut twice but showed no change in GDP growth expectations for 2020 and 2011; Japan’s March Household Spending increased above expectations; Germany’s March trade surplus beat estimates; and the U.K.’s Q1 GDP increased in-line with expectations.

Today’s calendar is light, headlined by Treasury auctioning $39 billion 3- and $36 billion 6-month bills at 11:30am. We also have two Fed speakers, Boston Fed President Rosengren and Vice Chair Clarida. Tomorrow, things kick back into swing with April NFIB Small Business Optimism Index and April Import/Export Prices. Wednesday brings the usual Weekly MBA Mortgage Index, but also April Retail Sales, May Empire State Manufacturing, April Industrial Production and Capacity Utilization, and March Business Inventories. Thursday sees jobless claims figures, April Housing Starts and Building Permits, and the week closes with April Leading Indicators and Preliminary May Michigan Consumer Sentiment. We begin today with Agency MBS prices better by .250 and the 10-year yielding 2.42% on tariff tension.

(Thank you to Glenn F. with Cenlar for this observation.)

If you walk in to buy a home, the first question, “Do you qualify?”

IF you have anything less than an 800-credit score, under Federal guidelines, you start to become a bad risk. That’s both ironic and hypocritical.

Let’s say that the Federal Government walked in to buy a home. The lender runs credit.

What is the score of the USA? A minus 147? Would you lend money to someone that is $30 trillion in debt?

I guess those that “Can’t… Make the laws”!!

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

Rob

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

May 11: Agencies continue to transfer risk; blockchain & AI lender news; advice from senior female exec

Everyone is very important at work. In fact, indispensable, right? The time Americans actually take off from work has declined from 20 days per year in 1987 to 17 days in 2017 when the average worker didn’t take six of their paid vacation days on average, which in aggregate amounts to 705 million days of travel that were not used to relax and recharge. Is that admirable?

Peck o’ Tech

The more lending heads down the artificial intelligence path, the more cybersecurity you need, right? I’ve heard plenty of company’s IT staff’s efforts to nudge employees to click on unknown links and then receive an instructional warning from management. “Click here to see a list of employees receiving raises in the next pay cycle.” “Click here for improvements to company benefits plan.” “Click for $50 company-sponsored Nordstrom’s gift card.” “Click here to see your revised PTO schedule.” Returning to security, no one is immune from making mistakes. An associate in a Vancouver law firm was duped into wiring the money to a Hong Kong bank account by fraudsters with knowledge of the firm’s work on a real estate deal. Cybersecurity spending for some large banks has tripled in the past few years, with financial firms spending an average of $3,000 per employee. Money alone cannot address the issue, and financial firms need a well-planned and properly governed security program.

There’s lots going on in the blockchain world. This week Figure Technologies announced it had closed an up to $1 billion uncommitted asset-based financing facility on the Provenance.io blockchain. And the Federal Reserve Bank of Boston is acknowledging that blockchain technology is becoming more mainstream and will require regulation. The regulator has proposed the creation of “supervisory nodes” within blockchain systems.

Women being seen and heard

Periodically this commentary prints letters from women or people of diverse backgrounds in the lending, real estate, or related businesses. (Submit something if you’d like to give advice to females or people of color new to our biz!) Colleen Kennedy, a Senior Field Sales Manager for Genworth Mortgage Insurance, has worked in mortgage sales for 20 years following various positions in project management and distribution. Colleen’s advice is geared toward sales professionals.

“Always answer the next question, the one they didn’t ask. A decent sales professional will know her stuff and be good at follow-up. When you think bigger than that you’ll become a more valuable partner. If you consistently focus on how you can help your customer rather than how they can help you meet your goals, you’ll be more successful than imaginable.

“Stay off the naughty list. Most companies require you do some basic administrative and reporting tasks. Get those done so your sales successes aren’t overshadowed by not completing the prerequisites. Don’t begrudge another person’s success. Applaud them, seek them out and learn from them. Making excuses for why other people do more business is negativity that will not help you at all. Focus on learning and growing.”

Colleen finished up with, “If you feel too comfortable, you’re probably missing opportunities!”

Agency action in the capital markets

Given his past stance of Freddie & Fannie, many were surprised when so many industry groups backed Mark Calabria becoming the next FHFA Director. Yet we can look for some form of GSE capital retention but also continued support for GSE (government sponsored enterprises) Credit Risk Transfers (CRTs), which should be a tailwind for industry participants like PennyMac.

Freddie & Fannie continue to move forward with initiatives that aren’t directly reliant on political decisions, like billions of dollars of transferring credit risk. Dan Fichtler, Director of Housing Finance Policy, for the Mortgage Bankers Association observes, “We continue to be encouraged by the progress the GSEs are making with respect to their CRT programs. For the STACR and CAS offerings in particular, it’s clear that they’ve turned the corner to become better-understood, more-liquid securities, which is increasing investor demand and contributing to tighter spreads. Another very positive development is the decision by both GSEs to issue their STACR and CAS securities as REMICs, which should allow greater investment by REITs.”

Loan originators should know that transferring credit risk away from taxpayers to willing buyers help rates for their borrowers. Let’s see what Freddie’s been up to in the capital markets.

On April 23, Freddie Mac priced a new $1.1 billion offering of Structured Pass-Through K-Certificates (K-091 Certificates), which are multifamily mortgage-backed securities, expected to settle on or about April 29, 2019.The K-091 Certificates are backed by corresponding classes issued by the FREMF 2019-K91 Mortgage Trust (K-91 Trust) and guaranteed by Freddie Mac, which will also issue certificates consisting of the Class X2-A, Class X2-B, Class B, Class C, Class D and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-091 Certificates. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds, typically featuring a wide range of investor options with stable cash flows and structured credit enhancement. Pricing for the deal is as follows. Class A-1 has principal of $83.6 million, a weighted average life of 6.62 years, a coupon of 3.339%, a yield of 2.985% and a dollar price of $101.9947. Class A-2 has principal of $1053.6 million, a weighted average life of 9.79 years, a coupon of 3.505%, a yield of 3.142% and a dollar price of $102.9983. Class A-M has principal of $53.7 million, a weighted average life of 9.91 years, a coupon of 3.566%, a yield of 3.206% and a dollar price of $102.9990. Class X1 has principal of $1.137 billion, a weighted average life of 9.24 years, a coupon of 0.559%, a yield of 3.692% and a dollar price of $4.8129. Class X3 has principal of $193.9 million, a weighted average life of 9.88 years, a coupon of 2.278%, a yield of 5.015% and a dollar price of $18.0817.

On April 12, Freddie Mac an auction transaction for an approximate $363 million of non-performing (NPL) residential first lien whole loans held in Freddie Mac’s mortgage-related investments portfolio. The NPLs are currently serviced by NewRez and are being marketed via four pools: three Standard Pool Offerings (SPO) with bids due by May 7, 2019 and one Extended Timeline Pool Offering (EXPO) with bids due May 21, which targets participation by smaller investors. The sales are expected to settle in July 2019. Freddie Mac’s seasoned loan offerings are focused on reducing less-liquid assets in the company’s mortgage-related investments portfolio including sales of NPLs, securitizations of re-performing loans (RPLs) and structured RPL transactions. To date, Freddie Mac has sold $8 billion of NPLs and securitized more than $50 billion of RPLs consisting of $29 billion via fully guaranteed PCs, $18 billion via Seasoned Credit Risk Transfer senior/sub securitizations, and $3 billion via Seasoned Loans Structured Transaction offerings. To participate, all potential bidders are required to be approved by Freddie Mac and must successfully complete a qualification package to access the secure data room containing information about the NPLs and to bid on the NPL pool(s). The bids are to be made on an all-or-none basis for any pool separately or for any combination of SPO pools together.

Also on the 12th, Freddie announced the pricing of the $553 million SB61 offering, its fourth multifamily mortgage-backed securitization in 2019 backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust, anticipated to settle on or about April 22, 2019. Freddie Mac Small Balance Loans generally range from $1 million to $6 million and are generally backed by properties with five or more units. Freddie Mac is guaranteeing five senior principal and interest classes and one interest only class of securities issued by the FRESB 2019-SB61 Mortgage Trust in addition to acting as mortgage loan seller and master servicer to the trust. In addition to the six classes of securities guaranteed by Freddie Mac, the trust will issue certificates consisting of Class B and Class R Certificates, which will not be guaranteed by Freddie Mac and will be sold to private investors. The OptigoSM Small Balance Loan origination initiative was first announced in October 2014, and expands the company’s continuing effort to better serve less populated markets and provide additional liquidity to smaller apartment properties through a specialty network of Optigo Seller/Servicers and Optigo SBL lenders who source loans across the country. Pricing for the deal is as follows. Class A-5F has principal of $87.0 million, a weighted average life of 3.98 years, a coupon of 2.86%, and a dollar price of $100.4719. Class A-5H has principal of $173.8 million, a weighted average life of 4.15 years, a coupon of 2.95%, and a dollar price of $100.4954. Class A-7F has principal of $90.9 million, a weighted average life of 5.50 years, a coupon of 2.97%, and a dollar price of $100.4832. Class A-10F has principal of $135.5 million, a weighted average life of 7.19 years, a coupon of 3.17%, and a dollar price of $100.4661. Class A-10H has principal of $65.9 million, a weighted average life of 7.24 years, a coupon of 3.29%, and a dollar price of $100.4590.

Freddie priced a new offering of Structured Pass-Through K-Certificates backed by underlying collateral consisting of fixed-rate multifamily mortgages with predominantly 7-year terms. The company expects to issue approximately $1.3 billion in K-734 Certificates, which are expected to settle on or about April 18, 2019.The K-734 Certificates are backed by corresponding classes issued by the FREMF 2019-K734 Mortgage Trust (K-734 Trust) and guaranteed by Freddie Mac. The K-734 Trust will also issue class X2-A, X2-B, B, C, D and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-734 Certificates. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement. Pricing for the deal is as follows. Class A-1 has principal of $79.4 million, a weighted average life of 4.47 years, a coupon of 3.14%, and a dollar price of $102.0000. Class A-2 has principal of $1,228.9 million, a weighted average life of 6.57 years, a coupon of 3.21%, and a dollar price of $102.0000. Class A-M has principal of $68.0 million, a weighted average life of 6.85 years, a coupon of 3.44%, and a dollar price of $103.0000. Class X1 has principal of $1,308.4 million, a weighted average life of 6.44 years, a coupon of 0.648%, and a dollar price of $3.8212. Class X3 has principal of $224.0 million, a weighted average life of 6.94 years, a coupon of 2.17%, and a dollar price of $12.7684.

On January 24, Freddie Mac priced a new $671.3 million offering of Structured Pass-Through K-Certificates (K-BF3), backed by 23 floating-rate multifamily mortgages with ten-year terms, expected to settle on or about January 31, 2019. The transaction collateral is part of Freddie Mac’s single-asset, single borrower (SASB) execution, which transfers first loss credit risk on either one or multiple properties owned or controlled by a single sponsorship group. Class A, the only offered class has principal of $671.3 million, a weighted average life of 9.76 years, a coupon of 1-month LIBOR + 53 and a dollar price of 100.00. The K-BF3 Certificates are backed by corresponding classes issued by the FREMF 2019-KBF3 Mortgage Trust (KBF3 Trust) and guaranteed by Freddie Mac. The KBF3 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-BF3 Certificates and will not be guaranteed by Freddie Mac. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

On February 14, Freddie Mac announced the pricing of the multifamily SB59 MBS offering, backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust. The company expects to guarantee approximately $562 million in Multifamily SB Certificates, which are anticipated to settle on or about February 27, 2019. Freddie Mac Small Balance Loans generally range from $1 million to $6 million and are generally backed by properties with five or more units. This is the second SB Certificate transaction in 2019. Freddie Mac is guaranteeing five senior principal and interest classes and one interest only class of securities issued by the FRESB 2019-SB59 Mortgage Trust. Freddie Mac is also acting as mortgage loan seller and master servicer to the trust. In addition to the five classes of securities guaranteed by Freddie Mac, the trust will issue certificates consisting of Class B and Class R Certificates, which will not be guaranteed by Freddie Mac and will be sold to private investors. The OptigoSM Small Balance Loan (SBL) origination initiative was first announced in October 2014, and expands the company’s continuing effort to better serve less populated markets and provide additional liquidity to smaller apartment properties. Freddie Mac has a specialty network of Optigo Seller/Servicers and Optigo SBL lenders with extensive experience in this market who source loans across the country.

On March 21, Freddie Mac priced a new $908 million offering of Structured Pass-Through K-Certificates backed by floating-rate multifamily mortgages with seven-year terms, expected to settle on or about March 28, 2019. The K-F60 Certificates will not be rated, and will include one senior principal and interest class, one interest-only class, and one class entitled to static prepayment premiums. The one senior principal and interest class, class A, will have principal of $908.3 million, weighted average life of 6.65 years, a coupon of 1-month LIBOR + 49, and an even par dollar price. The K-F60 Certificates are backed by corresponding classes issued by the FREMF 2019-KF60 Mortgage Trust (KF60 Trust) and guaranteed by Freddie Mac. The KF60 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-F60 Certificates and will not be guaranteed by Freddie Mac.

On March 15, Freddie Mac priced a $1.4 billion offering of Structured Pass-Through K-Certificate multifamily mortgage-backed securities, expected to settle on or about March 21, 2019. K-089 has three offered classes, as follows. Class A-1 has principal of $106.5 million, a weighted average life of 6.99 years, a coupon of 3.34%, a yield of 3.01%, and a dollar price of $101.9960. Class A-2 has principal of $1.120 billion, a weighted average life of 9.80 years, a coupon of 3.56%, a yield of 3.20%, and a dollar price of $102.9985. Class A-M has principal of $53.9 million, a weighted average life of 9.84 years, a coupon of 3.63%, a yield of 3.27%, and a dollar price of $102.9926. The K-089 Certificates are backed by corresponding classes issued by the FREMF 2019-K89 Mortgage Trust (K-89 Trust) and guaranteed by Freddie Mac. The K-89 Trust will also issue certificates consisting of the Class X2-A, Class X2-B, Class B, Class C, Class D and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-089 Certificates. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

On April 4, Freddie Mac priced a new $1.2 billion offering of Structured Pass-Through K-Certificates (K-090 Certificates), comprised of multifamily mortgage-backed securities, which are expected to settle on or about April 11, 2019. The K-090 Certificates are backed by corresponding classes issued by the FREMF 2019-K90 Mortgage Trust and guaranteed by Freddie Mac. Certificates consisting of the Class X2-A, Class X2-B, Class B, Class C, Class D and Class R Certificates, will be issued but will not be guaranteed by Freddie Mac and will not back any class of K-090 Certificates. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds, featuring a wide range of investor options with stable cash flows and structured credit enhancement. Class A-1 will have a principal amount of $79.4 million, a weighted average life of 6.90 years, a coupon of 3.216%, and a dollar price of $101.9956. Class A-2 will have a principal amount of $1,068.5 million, a weighted average life of 9.81 years, a coupon of 3.422%, and a dollar price of $102.9940. Class A-M will have a principal amount of $50.5 million, a weighted average life of 9.92 years, a coupon of 3.492%, and a dollar price of $102.9933.

After getting all of the Pope’s luggage loaded into the limo (and he doesn’t travel light), the driver notices that the Pope is still standing on the curb.

“Excuse me, Your Eminence,” says the driver, “would you please take your seat so we can leave?”

“Well, to tell you the truth,” says the Pope, “they never let me drive at the Vatican, and I’d really like to drive today.”

“I’m sorry but I cannot let you do that. I’d lose my job! And what if something should happen?” protests the driver, wishing he’d never gone to work that morning.

“There might be something extra in it for you,” says the Pope.

Reluctantly, the driver gets in the back as the Pope climbs in behind the wheel.

The driver quickly regrets his decision when, after exiting the airport, the Supreme Pontiff floors it, accelerating the limo to 105 mph.

“Please slow down, Your Holiness!!!” pleads the worried driver, but the Pope keeps the pedal to the metal until they hear sirens.

“Oh, dear God, I’m gonna lose my license,” moans the driver.

The Pope pulls over and rolls down the window as the cop approaches, but the cop takes one look at him, goes back to his motorcycle, and gets on the radio.

“I need to talk to the Chief,” he says to the dispatcher.

The Chief gets on the radio and the cop tells him that he’s stopped a limo going a hundred and five.

“So bust him,” said the Chief.

“I don’t think we want to do that, he’s really important,” said the cop.

Chief exclaimed, “All the more reason!”

“No, I mean really important,” said the cop.

The Chief then asked, “Who ya got there, the Mayor?”

Cop: “Bigger.”

Chief: “Governor?”

Cop: “Bigger.”

“Well,” said the Chief, “Who is it?”

Cop: “I think it’s God!”

Chief: “What makes you think it’s God?”

Cop: “He’s got the Pope for a limo driver!”

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

Rob

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