Aug. 13: Ops, Cap. Mkts., AE, LO jobs; broker, DPA products; Aug. events; mortgage rates slow to drop – why?

As we digest the news that CIT is buying Mutual of Omaha Bank, others are looking at demographics. Families moving create jobs, right? From 2017 to 2018, roughly 32 million Americans moved. The reasons include family, work, and housing reasons, obviously. The five most common reasons? 5.3 million moved because they wanted to move to a better house or apartment, 4.1 million moved to start a family, 3.6 million for a miscellaneous family reason, 3.3 million for a new job, and 2.6 million because they wanted cheaper housing. Hundreds of thousands moved to attend or leave college, wanted a change of climate, millions wanted to buy, not rent, or wanted an easier commute. And they are moving into smaller houses. After rising for a decade, average new home sizes are falling as builders pivot away from luxury buyers to first time homebuyers. Square footage is dropping slightly and townhome and condo popularity is on the rise for first time home buyers as well as empty nesters. And companies encourage ownership. For example, Unison, the home co-investing company, is having a “Dream Home” contest: participants are asked to create short (15-60 second) videos that answer the question, “What does your dream home look like and how would it change your life?” $25k – tell your clients!

Employment

A large, well-capitalized wholesale lender headquartered in Orange County, CA, is looking for an experienced Capital Markets Manager. This position reports to the VP of Capital Markets and has an integral role in the daily operations of all Capital Markets functions including development and execution of pricing and hedging strategy, loan delivery and settlement, as well as management of the Lock Desk. Resumes can be confidentially submitted to Anjelica Nixt for forwarding.

Fifty Academy Mortgage Loan Officers are headed back to class this month. The independent lender will soon kick-off the fourth session of its Torch Bearer Sales Program—a three-month course of individual and group coaching led by top-producing originators. It covers field-tested sales strategies and approaches unique to Academy. Several of the past participants have nearly doubled their quarterly production. Academy’s third class of its Leadership Academy is also in full swing. This MBA-style 12-month certificate program offers case-based learning modules, forums, field workshops, and experiential team projects. Academy has been developing the mortgage leaders of tomorrow for more than 30 years. Even in a volatile market, the company continues to invest significant time, energy, and financial resources to help their People become effective leaders in their personal lives, professional lives, and communities. Contact Chad Melin, VP of National Business Development, if you’re interested in growing your career and achieving your potential.

Gateway Mortgage Group, a division of Gateway First Bank, continues to experience significant growth and is looking to hire top-notch Loan Originator talent for both our retail (nationwide) and consumer direct channels (our Dallas office). At Gateway, we set our sales teams up for success! From our intuitive digital tools to our extensive suite of loan products, you’ll have the resources needed to close more loans and provide a better mortgage experience for your borrowers. If you’re looking to take your origination business to the next level, and join a team that is dedicated to building strong communities through homeownership, contact Mary Ann Arbogast, Regional Sales Recruiter (210-380-2516).

As the 3rd largest correspondent investor in the country, AmeriHome continually strives to make the client experience “hassle free.” To that end, it is excited to announce the launch of AmeriHome’s integration with Encompass Investor Connect. Encompass Investor Connect is a secure, system-to-system workflow within Encompass that directly connects you to AmeriHome. This new option saves time and minimizes risk by delivering accurate and compliant loan data and documents directly and securely from your Encompass instance to AmeriHome. It eliminates the need for multiple log ins, and allows for one-click uploads of data and documents for single or batch loans. AmeriHome is currently looking to fill several key positions in both its Westlake Village, California and Dallas, Texas offices, including client services, analytics, marketing, underwriting, and more. To find out more about joining the AmeriHome team visit the Careers Page!

Lender products & services 

Chenoa Fund: Creating a Legacy of Responsible Borrowers: Part 4 in a series on DPA The Chenoa Fund strives to create successful borrowers over the long term to ensure that underlying FHA mortgages perform well. What’s our approach? One key is creating incentives to ensure homebuyers make payments on time. A large proportion of the second mortgages provided in connection with the Chenoa Fund program are forgivable, and carry no interest or payment obligations. To ensure borrowers feel they have “skin in the game,” these seconds are only forgiven after borrowers make 36 consecutive on-time payments on their first mortgage. This structure encourages homeowners to prioritize payment of their loan and stay on track. A second key is our 12 month post-purchase program for borrower success, in which we stay in regular touch with the borrower to help them transition to homeownership.

To create financial partnerships that last a lifetime, marketing leaders must shift their focus. Consumers are choosing to do business with brands that know their individual needs – and demonstrate this across all channels. So, how do you get to this point? Humanized engagement. Check out Total Expert’s eBook to drive customer loyalty, deepen relationships and create customers for life. 

Blockchain is ushering a new world order for mortgage finance. At least, this is what one technology expert in the industry is predicting. Between blockchain and advances in servicing technology, the industry has a lot of much-anticipated changes to watch out for. Great technology powers proactive customer service, and looking at the way TMS is paving the way for new servicing technology, both borrowers and lenders are about to experience the revolutionary benefits. 

Optimal Blue reports a rise in lenders who have transitioned from best efforts to mandatory delivery to capture significant profitability gains and efficiencies. For those still considering a switch, Optimal Blue has compiled several value-added resources, including: 1.) Weekly Market Summaries featuring the best efforts to mandatory spread index to help lenders understand their opportunity; 2.) Valuable Resources to help lenders accurately calculate and manage interest rate risk, including a white paper titled “A New Metric for Hedging Mortgage Pipeline Fallout Risk”; 3.) Enterprise Hedge Automation Platform that includes seamless integrations to Optimal Blue’s industry-leading PPE and digital loan trading platform; and 4.) Unrivaled Client Service delivered by strategies that have guided scores of lenders through successful delivery transitions.

You can finally hit the snooze button on your client’s ticking rate lock clock. QLMS is launching Padlock, a one-of-a-kind program giving its partners FREE rate lock extension days. Just like airline miles – the more loans you close, the more extension days you receive for your clients’ loans. Partners are granted 3 free extension days for every closed loan, up to a maximum of 750 rate lock extensions days in the bank. That’s a lot of snooze buttons! QLMS is launching Padlock by giving every Partner 20 free extension days, whether they’ve used QLMS recently or not. Start using those free extensions, and keep earning more. Your clients can rest easy knowing they have options, and you can relax knowing you empowered them. If you aren’t already working with QLMS, and banking rate lock extensions, click here to connect with them and give your clients the experience they deserve.

August trainings and events:

Today, August 13th at noon (PST), real estate attorney Lorena Roel will be presenting a

free webinar about holding title to property in California, specifically focused on Joint Tenants and Tenants in Common.

Land Home Financial Services is offering a free webinar, Reverse Mortgage 101, today.

Register for FHA’s “Quality Assurance Update” on August 21st. This free, online webinar will provide an update on the results for the most recent quarter, as well as specific information on indemnifications. There will also be a live Question and Answer session at the end of the webinar.

Today’s manufactured homes (MH) can help ease the nation’s affordable housing shortage, address borrowers’ evolving needs, and provide a new business opportunity for many lenders. Fannie Mae’s MH Advantage® mortgage makes purchasing MH with site-built features more attainable, with down payments as low as three percent, and interest and MI rates similar to site-built homes. Join Fannie Mae for a webinar on August 21 at 2:30 p.m. ET to learn more about how MH Advantage fits into your portfolio.

We have Arch MI’s August Webinars.

Plaza’s August Webinar Calendar includes trainings on USDA, 203k, Non-QM, Schedule E, Sales, Manufactured Housing and Reverse.

Join Indecomm on Thursday, August 15th 1:00 ET for a free webinar titled “Solving Loan Set Up Challenges With Automation”. Learn about best practices and automated solutions for solving loan set up challenges and have the opportunity to ask questions at the end of the presentation. Registration is free but space is limited.

Join Indecomm on Wednesday, August 21, at noon ET for its free “Ask Me Anything” webinar focused on “Mortgage Policies and Compliance.” Indecomm subject matter expert, Joy K. Gilpin, Vice President of Learning and Compliance, will answers your questions related to managing mortgage policies and compliance.

XINNIX will host a live Leadership Lessons webinar, The Engagement Dilemma: An Executive Wake Up Call on Wednesday, August 21 at 2:00 PM. Register today!

NAMMBA is offering a Webinar on Thursday, August 29th at 2:00 ET. Grow Outside the Box Using Non-QM will be presented by Angel Oak Mortgage Solutions.

Capital markets

Market participants say there is greater likelihood of U.S. Treasury yields turning negative (a possibility once considered unthinkable) after a recent drop in the yield on the 30-year U.S. Treasury. Negative yields are now common in Japan and Europe and are supported by central bank policies.

My cat Myrtle, a big fan of MLOs, looked ticked off yesterday. And I knew what was causing it: although they will probably eventually catch up, mortgage rates aren’t “participating” in the big Treasury market rally of the Summer of 2019. Why not? Given that the 10-year is down in the 1.60% range, why aren’t 30-year mortgage in lock step?

First, Agency mortgage rates track the mortgage-backed security (MBS) market, which in turn loosely tracks the Treasury market, with its 10-year yield as a gauge, but not exactly. Wall Street traders try to hedge the difference in price movement between Treasuries and MBS, others try to make money off of it. Coupon swaps have gone awry, which is a little “in the weeds” for many.

Prepayment risk is a big issue: who wants to pay 105, with a 5-point premium, for something that pays off a short while later. (“I pay you $210,000 for that $200,000 loan, and in four months you give me $200,000 back? Let me run that by my boss.”) Many investors don’t even offer to pay the premium, resulting in price compression. (“Why should I pay you more for a 4.5% 30-year Fannie loan than a 4.25% loan; they’re both going to prepay.”) And when loans prepay, often the cash is put into the Treasury market, with the demand driving prices higher and yields lower for securities that don’t pay off early.

In the primary markets, lenders don’t want their entire pipeline to renegotiate (those hedges with Wall Street firms don’t have their prices renegotiated) so many capital markets staffs set rates that are “sticky” when Treasury rates drop. No one has a crystal ball, no one knows what inflation is going to do or how long these mortgages will be on their books, and if rates shoot back up, pipelines will be filled with illiquid coupons that are hard for investors to value. How much would you pay for a 2.50% 30-year Freddie Mac loan? So there is a big premium for uncertainty.

The real driver behind the fact that the rates are not moving in sympathy with the 10 year is capacity. Lenders & investors all came into 2019 trying to shed capacity and then rates rallied and everyone is trying to build it but we are now in a 100% full documentation world: HARP is gone, and there are no streamline refinances any longer. We all have to hire actual underwriters and then train them which adds months to the lead time for a lender to ramp up. In the old days lenders would hire clerical staff to help move the streamline refinance paper around but with Dodd Frank it is all 100% underwritten and verified to be eligible for delivery to the GSEs. Investors and lenders are all trying to get our bearings.

Looking at the bond market activity yesterday, U.S. Treasuries rallied to start the week, pushing the 30-year yield to a fresh low for the year while the 10-year yield approached its low from last week (1.64%) as no good news on the U.S./China trade front again dominated the action. At current levels, more than half of the MBS market has a refinance incentive, including those at 3.5 percent, which should boost supply through the fall. Month-to-date supply is at $88 billion which suggests it could be similar to July’s $132.2 billion which was the highest since December 2016.

Headlines from yesterday fueling the risk-on narrative over global growth concerns to watch the rest of the week include the aftermath of the primary election in Argentina, China reportedly preparing to deal with increased tensions and violence in Hong Kong through force, increased odds of a hard Brexit, and incidents from Kashmir/North Korea. Today’s economic calendar began with the NFIB Small Business Activity Index for July (improving). Additionally, just out is July’s Consumer Price Index (both headline and core +.3%). Redbook same-store sales for the week ending August 10 will be the only other release today. We begin the day with agency MBS prices worse .125 and the 10-year yielding 1.66%.

EVER WONDER…

Why is the time of day with the slowest traffic called rush hour?

Why isn’t there mouse-flavored cat food?

Why didn’t Noah swat those two mosquitoes?

Why do they sterilize the needle for lethal injections?

That indestructible “black box” that is used on airplanes? Why don’t they make the whole plane out of that stuff??

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

Rob

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

Aug. 12: LO, AE jobs; broker, credit, subservicer products; CRM survey & vendor news

While the world is watching 0% or-.5% interest rates in Denmark, in this country Zillow is competing with lenders, real estate agents, and mom & pop fix & flippers. In its last quarter, $248.9 million of the data company’s $599.6 million in revenue came from buying and selling homes directly. The company bought 1,525 homes from April to June in 15 markets, and sold 768 homes (supposedly losing $71 million doing that) with plans to be in 26 housing markets by the middle of 2020. The number of homes it bought is higher than the number it sold, leading to conjecture about flipping houses, buying up properties and investing in repairs and then selling them. Can humans looking for value compete with Zillow’s algorithm designed to exploit inefficiencies? Perhaps not. And Julian Hebron with The Basis Point wrote two targeted pieces: How Zillow Makes Billions Reinventing How We Buy & Sell Homes and How Zillow Makes Money On Its Mortgage Business.

Employment

Allied Mortgage Group a 25+ year old nationwide lender based in Bala Cynwyd, PA is looking for Multi State Licensed Loan Officers for its growing Direct to Consumer Business. The Loan Officers would be located in Bala Cynwyd, PA and supported by a diverse and competitive product menu with excellent lead and operations support. If you are interested in joining our winning team please contact Rebecca Hartey.”

Bell Bank Mortgage in Brookfield has hired Lee Turner as vice president/market manager. The move is part of the company’s focus on recruiting, hiring and training residential mortgage lenders to expand its mortgage branch network in Milwaukee and throughout Wisconsin. Turner served in the U.S. Navy for 20 years, retiring as a naval flight officer. He spent the past 18 years in mortgage banking. Bell Bank, one of the nation’s largest privately-owned banks, began expanding its mortgage presence in Wisconsin last year, hiring nearly 30 lenders in the Milwaukee area.

“Are you a Texas-based Account Executive looking to make a change with a local presence? Plaza Home Mortgage has an exciting opening for a seasoned Wholesale and Non-Delegated Account Executive that covers the Texas, Louisiana, Arkansas and Oklahoma markets, who will take over a number of open and active accounts, as well as bring in your book of business. Enjoy selling one of the largest product menus in the country, with the traditional conventional and government programs – plus Plaza’s five Renovation Programs, distinctive One-Time Close Construction-to-Permanent Loan Program and our new Freddie CHOICERenovation offering. Non-QM products? Look no further, because Plaza offers eight Non-QM products, from well-priced Jumbos to programs using Bank Statements for income. You will also have access to our convenient Dallas sales and operations center. Plaza is nationally recognized for its service excellence, and has the products and technology to help you achieve the success you’ve always wanted. Contact Nick Pantell at 208-871-0850.”

Bank of Hope announced the appointment of Ken Logan as EVP and Head of Residential Finance, reporting directly to President and COO David Malone, and is tasked with further building out the warehouse lending and residential mortgage platforms. (L.A.’s Bank of Hope is the first and only super regional Korean-American bank in the United States with over $15 billion in total assets and 58 full-service branches.)

And Cloudvirga announced that Dan Sogorka is taking over as its Chief Executive Officer, moving up from his role as Chief Revenue Officer, with a goal of having Cloudvirga automate the entire back office to help reduce the 30 days it takes to close a mortgage.

Lender products and services

With the recent uptick in volume, lenders have all hands-on deck assisting with closing loans and are challenged with balancing staff. Hiring and eventually laying off can be a painful process, inefficient and demoralizing. “At DocProbe, we understand your concerns and created a pricing model with your business in mind. We take over the retrieving, auditing, managing corrections, and shipping of every deed and title policy to your investors on time. But, most importantly, because you only pay per loan – you only pay for what you need. Your expenses stay in sync with your volume. No extra overhead and instant scalability as needed since your dedicated, NJ based, DocProbe team becomes an extension of your operations. And with our No- Penalty guarantee, and no integration or set-up fees, there are no added hidden fees. With DocProbe’s per-loan fee structure and easy onboarding process, getting started is a snap. Contact Nick Erlanger (866-486-0554) or catch the team at the TMC Conference in Nashville next week.”

With these low rates plenty of lenders are thinking about adding servicing. After a lender dedicates capital to holding servicing, most hire a subservicer rather than service the loans themselves. Any lender currently using a subservicer should take this 4 minute survey on subservicing (mostly multiple choice) and you could receive FREE advertising for your company in this commentary!

U.S. Bank, Freddie Mac and MGIC are joining forces to deliver an educational morning for Correspondent lenders in King of Prussia, Philadelphia. Join this exclusive event on Tuesday, September 10, featuring collaboration by industry leaders to discover “Down Payment Options for First-Time Homebuyers: They’ve saved every penny but still need some help.”

Presentations will include, “How Today’s Economy Impacts First -Time Homebuyers; How to Put Less Money Down: Products for First-Time Homebuyers, and How First-Time Homebuyers Can Overcome Unique Challenges in Today’s Market and Recent Updates to Underwriting Flexibilities.” Find out how you can help more first-time homebuyers get closer to move-in day. Correspondent Lenders in the King of Prussia, PA area can register to attend here.

The largest industry conference for independent mortgage brokers is back! On October 12, 2019, AIME’s National Fuse Conference returns to the Bellagio Hotel & Casino in Las Vegas, NV with a robust list of speakers and exhibitors emphasizing the message that Brokers Are Better! Come join us along with thousands of fresh faces, including two well-known keynote speakers; media mogul and serial entrepreneur, Gary Vaynerchuk and Million Dollar Listing New York and Sell It Like Serhant TV personality, Ryan Serhant. Fuse unites the community, celebrating and enhancing the value of mortgage brokers. Network with top brokers and help reinforce AIME’s mission of empowering independent mortgage brokers around the country. Register now for an event you WON’T want to miss https://fuse.aimegroup.com/

Do you originate loans in Indiana? Did you know Indiana House Bill 1668 goes into effect Jan. 1, 2020 but Equifax, TransUnion and Experian have already started to comply? Are you getting errors when you pull a report such as insufficient information for file search – additional data is needed; inquiry information identified as fraudulent by consumer; or state legislation requires match on more identification information? If so, you are not alone. Credit Plus is helping our mortgage lender clients expertly navigate these upcoming changes. Want to work with one of the nation’s leading verifications companies that specializes in keeping clients a step ahead of important industry developments? Contact Credit Plus to learn how to embrace this change and smoothly operate through it.

FinLocker, a financial data and analytics company, and ARIVE, a private technology company, have partnered to assist brokers in achieving a superior customer relationship throughout the loan origination process and beyond. This alliance will support access to FinLocker technology as a component of the ARIVE marketplace.  FinLocker is a lead generation, cross-selling, and customer for life data platform leveraged by banks, mortgage lenders, and their customers. Acting as a personal financial assistant tool that captures consumer financial data to analyze and streamline financial transactions, FinLocker will bring this value to broker lenders and third-party vendors that conduct business on the ARIVE workflow platform. Offering independent originators access to sophisticated technology and tools, this partnership allows brokers to brand the secure reusable financial “locker” in their name, creating an innovative offering for their customers, and adding to the inherent value of the ARIVE mortgage ecosystem. Contact Brian Vieaux to learn more today.

Freddie Mac Single-Family is ALL FOR building the future of home. Affordable lending is evolving and Freddie Mac is ALL IN on providing solutions that enable emerging populations to achieve the dream of HOME. We are changing perceptions by developing products and resources that drive real opportunities for businesses while creating a renewed sense of access for borrowers. Read an Executive Perspective from Danny Gardner, Senior Vice President, Freddie Affordable Lending and Access to Credit, that highlights the value of education and strategic outreach to overcome barriers to homeownership. In addition, don’t miss Freddie Mac’s take on The Future of Affordable Lending in Housingwire. Learn more about All For HomeSM, Freddie Mac’s approach to affordable lending, and discover key insights to inform your business and take advantage of solutions and tools that will further enable your borrowers to make Home Possible®. All in. All of us. All For Home.

Tech & vendor chatter

According to the results of the System Survey for STRATMOR Group’s 2019 Technology Insight Study, 74 percent of lenders use a third-party system for lead management/CRM. Would you like to have data like this about digital technologies? Then don’t miss your chance to participate in the next survey of this study on Digital Innovations. This survey asks lenders about implementing digital technologies in the mortgage process and what barriers or benefits they are encountering. The survey can be completed in about five minutes, and lenders who participate in the 2019 Technology Insight Study 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 Digital Innovations Survey now (it closes Friday, August 16).

For lenders looking to implement new technology into their workflow or maximize the customer experience through current or proposed POS, LOS and operational processes, Cedar Creek Capital has architected a system of customized recommendations to develop a project plan to guide teams through the implementation of critical recommendations, process optimization and technology implementation. Having successfully provided technology and process optimization as well as workflow solutions for loan manufacturing to the Agencies, CCC now offers proven workflow efficiencies and reduced cycle times, increased margins and loan quality standards for all lenders. (Contact info@cedarcreekcapital.co for more information.)

Ellie Mae announced the expansion of HELOC lending automation in Encompass. Coupled with the most recent 19.3 major release of Encompass, with these new configuration capabilities, lenders can ramp up multiple HELOC offerings in all 50 states, including the ability to dynamically generate historical examples that are provided as part of the Important Terms Disclosure. Significant capability for customers to configure their HELOC offerings and calculations. Major enhancements for customers to configure language within the HELOC Agreement and Important Terms Disclosure.

Black Knight and Docutech have entered into a strategic alliance through which Black Knight will be bundling ConformX, Docutech’s loan doc generation engine, into its Empower Now! implementation model (geared specifically toward mid-tier lenders as well as lenders of any size seeking a quick implementation of a completely scalable LOS). By bundling ConformX with Empower Now!, lenders receive a premier, all-in-one origination solution, eliminating the need to integrate a separate loan document provider or negotiate with two separate vendors

Diehl Mortgage Training and Compliance has launched the mortgage industry’s first mobile app to prepare for the Secure and Fair Enforcement Mortgage Loan Originator (SAFE MLO) licensing test, an exam required since 2008. “Prep2Pass™ app allows users to convert free time, even in small chunks, to a passing score by accessing content anytime and anywhere.” The Prep2Pass™ app, now available for download in the Google Play and Apple iTunes App stores, provides a variety of ways to learn including flashcards, simulated tests, category-specific questions and videos. In addition, users can “ask a trainer” by initiating a question without leaving the app. As the loan originator candidates move through the test prep process, their managers can follow their progress.

Capital markets

On Friday the U.S. 10-year closed +2 bps to yield 2.73% to end what was a wild week for Treasuries that saw many durations touch low yields for the year. Higher trade tensions with China and muted inflationary pressures dominated headlines building into this busy week on the economic calendar.

Today’s calendar is actually light, with only a Treasury auction of $42 billion each of 3- and 6-month bills, both up $3 billion from the prior week, and the July budget statement from the CBO, now estimating a deficit of $120 billion compared with $76.9 billion in the prior fiscal year. And Fedspeak is light ahead of the KC Fed’s economic symposium in Jackson Hole next week. Tomorrow is also sparse on economic releases, only the July CPI and Core CPI due out. Wednesday brings July Import/Export Prices before a very busy Thursday that includes July Retail Sales, Manufacturing, Fed and Production indexes. Additionally Norges Bank will be out with their latest policy decision and the MBS Class B 48-hours is on Thursday Class C is due to close the week, along with July Housing Starts and Building Permits in addition to August Michigan Consumer Sentiment. We begin today with the 10-year yielding 1.69% and agency MBS prices are better by .125 as trade worries continue to push our rates lower.

(Thank you to Kat C. for this one.)

“If you boil a funny bone, you get laughing stock!”

“Now, that’s humerus.”

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

Rob

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

Aug. 10: Thoughts on margin calls, LIBOR’s phase out & SOFR mortgages; credit risk transfers continue

Interest rate volatility, LOs not interested in changing companies, the $8,500 cost of doing a mortgage hitting low-balance refi candidates the most, and profit-laden pipelines are capturing everyone’s attention. In secondary market departments, nearly every mortgage banker, or anyone hedging a pipeline, received margin calls this week from dealers.

One capital markets vet advised, “Owners and secondary marketing staff shouldn’t forget the delay in rolling out FINRA 4210, 153 pages of fun. And originators should not have signed the MSFTA addendum that broker/dealers weaseled out of them two years ago enforcing margin requirements. If anyone’s secondary guy is asleep at the wheel, remind them to assign out-of-the-money trades away to maybe friendly depository desks who aren’t required to have their clients post margin in order to avoid cash outlays when the market squeezes my short position. If the market sells back off, and your position dips below the minimum threshold amount, you don’t get your margin call back right away like you did having to post it. Wells Fargo securities is the worst.”

Did someone ask about LIBOR/SOFR?

The publication of LIBOR is not guaranteed beyond 2021. Much work lies ahead in order to implement a successful reference-rate change and time is of the essence. If you or your staff needs a primer, check out this LIBOR Transition Briefing with policymakers at the center of the transition. SIFMA Insights provides an overview of the LIBOR transition, as well as an actionable checklist — with a focus on the proposed US alternative reference rate, Secured Overnight Financing Rate (SOFR).

Banks are largely ahead of other financial institutions in replacing Libor with other interest-rate benchmarks and are playing an important role in helping clients grapple with the impact, industry leaders say. “Our role is to make [customers] aware of the looming urgency of all this,” says Phil Lloyd, head of market structure and regulatory customer engagement for NatWest Markets.

The Federal Reserve-backed Alternative Reference Rates Committee says markets for derivatives referencing the Secured Overnight Financing Rate haven’t had enough volume to be the basis for a forward-looking rate to replace Libor. However, the International Organization of Securities Commissions says some markets are gaining liquidity and could be ready to support a forward-looking rate by the 2021 transition deadline.

Federal Reserve Bank of New York President John Williams recently said that Libor’s survival is ensured for only about 900 more days and that the financial industry must migrate immediately to the Sterling Overnight Index Average, the Secured Overnight Financing Rate and other risk-free rates. UK Financial Conduct Authority CEO Andrew Bailey warned that the transition must convert legacy contracts, in addition to new business (see the actionable transition checklist from SIFMA Insights). “Don’t wait until 1 January 2022 to manage your business’ transition away from Libor, because it’s going to be too late,” Williams said.

ARRC outlined a path for SOFR mortgages. The Adjustable Reference Rates Committee has outlined a proposal for mortgage lenders to build new adjustable rate mortgages using the Secured Overnight Financing Rate ahead of the phase-out of Libor at the end of 2021. The Committee consists of private market participants brought together by the Federal Reserve and New York Fed to help the transition away from Libor, outlined in a white paper how lenders can use a 30 or 90-day SOFR average instead of one-year Libor in adjustable rate mortgages (ARMs). Government-sponsored mortgage enterprises Fannie Mae and Freddie Mac said they supported the proposals and intended to use a SOFR rate for new adjustable rate mortgages before the end of 2021.

Folks should know that because SOFR tends to be lower than Libor, the margin for new SOFR linked mortgages would be higher – in the 2.75%-3% range compared with the 2.25% area at present for Libor-linked loans. Indeed, the two rates are different. SOFR is a secured funding rate, while Libor is not. The SOFR rate would be set every six months, instead of once per year as is the standard for Libor based mortgages.

Of interest to ARM servicers everywhere, ARRC also opened a discussion on how to improve the fallback language to include in existing mortgages that reference Libor. ARRC has opened a 60-day period for feedback from market participants.

Transferring risk & secondary market activity

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 borrowersLet’s see what Freddie’s been up to in the capital markets.

In May Freddie Mac priced a new $1.2 billion offering of Structured Pass-Through K-Certificates (K-092 Certificates), which are multifamily mortgage-backed securities, expected to settle on or about May 31, 2019. The K-092 Certificates are backed by corresponding classes issued by the FREMF 2019-K92 Mortgage Trust (K-92 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, not guaranteed by Freddie Mac and not backed any class of K-092 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 a principal amount of $92.444 million, a weighted average life of 6.69 years, a coupon of 3.125 percent, a yield of 2.775 percent, and a dollar price of 101.999. Class A-2 has a principal amount of $1,112.986 million, a weighted average life of 9.83 years, a coupon of 3.298 percent, a yield of 2.938 percent, and a dollar price of 102.998. Class A-M has a principal amount of $53.046 million, a weighted average life of 9.90 years, a coupon of 3.015 percent, a yield of 3.009 percent, and a dollar price of 99.9943.

It priced a new $783 million offering of Structured Pass-Through K-Certificates (K-1511), multifamily mortgage-backed securities, expected to settle on or about May 16, 2019. In a first for the K-Deal line of securities, Freddie Mac requested and received preliminary designations and breakpoints from the National Association of Insurance Commissioners (NAIC) Structured Securities Group (SSG). The Regulatory Treatment Analysis Service (RTAS) provided a preliminary indication of the probable insurance regulatory treatment of K-1511 guaranteed classes and provided preliminary NAIC breakpoints for the K-1511 mezzanine securities. Freddie Mac expects NAIC’s analysis to help facilitate the purchase of securities by regulated insurance companies to obtain new issue designations and breakpoints. Pricing is as follows: Class A-1 has a principal amount of $94.0 million, a weighted average life of 7.89 years, a coupon of 3.279 percent, yield of 2.97 percent, and dollar price of $101.9966. Class A-2 has a principal amount of $271.0 million, a weighted average life of 11.75 years, a coupon of 3.470 percent, yield of 3.16 percent, and dollar price of $102.9977. Class A-3 has a principal amount of $418.917 million, a weighted average life of 14.65 years, a coupon of 3.542 percent, yield of 3.287 percent, and dollar price of $102.9893. Class X1 has a principal amount of $783.92 million, a weighted average life of 12.84 years, a coupon of 0.9302 percent, yield of 4.005 percent, and dollar price of $8.1678. Class X3 has a principal amount of $87.1 million, a weighted average life of 14.89 years, a coupon of 3.5369 percent, yield of 5.2983 percent, and dollar price of $35.4288.

And Freddie priced $899 million in K-F61 certificates backed by floating-rate multifamily mortgages with ten-year terms, expected to settle on or about May 17, 2019. The K-F61 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 K-F61 Certificates are backed by corresponding classes issued by the FREMF 2019-KF61 Mortgage Trust (KF61 Trust) and guaranteed by Freddie Mac, which will also issue certificates consisting of the Class B, C and R Certificates subordinate to the classes backing the K-F61 Certificates and will not be guaranteed by Freddie Mac. Class A, which has principal of $899.385 million, a weighted average life of 9.62 years, and a coupon of 1-month LIBOR + 53, has a par dollar price of 100.00.

Freddie Mac priced a $504 million K-C Series offering of Structured Pass-Through K-Certificates (K-C04 Certificates), which are multifamily mortgage-backed securities, which are expected to settle on or about June 13, 2019. The K-C04 Certificates are guaranteed by Freddie Mac and are backed by 7-year and 10-year, fixed rate loans that feature longer than typical periods of reduced prepayment penalties before maturity. The K-C04 Certificates are backed by corresponding classes issued by the FREMF 2019-KC04 Mortgage Trust and guaranteed by Freddie Mac. The K-C04 Trust will also issue certificates consisting of Class B, Class C, Class X-C and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-C04 Certificates. Pricing for the deal is as follows. Class A-SB has a notional amount of $41.3 million, a weighted average life of 6.02 years, a coupon of 2.49 percent, a yield of 2.52 percent, and a dollar price of $99.9449. Class A-7 has a notional amount of $259.2 million, a weighted average life of 6.52 years, a coupon of 2.83 percent, a yield of 2.64 percent, and a dollar price of $100.9973. Class A-10 has a notional amount of $203.9 million, a weighted average life of 9.53 years, a coupon of 3.01 percent, a yield of 2.88 percent, and a dollar price of $100.9976.

And Freddie priced a $645 million offering of K-LU1 certificates, expected to settle on or about June 14, 2019. Class A-1 has principal of $209 million, a weighted average life of 3.85 years, a coupon of 2.38 percent, a yield of 2.35 percent, and a dollar price of 99.9968. Class A-2 has principal of $136 million, a weighted average life of 5.85 years, a coupon of 2.51 percent, a yield of 2.49 percent, and a dollar price of 99.9971. Class A-3 has principal of $95 million, a weighted average life of 7.09 years, a coupon of 2.63 percent, a yield of 2.62 percent, and a dollar price of 99.9966. Class A-4 has principal of $205 million, a weighted average life of 10.0 years, a coupon of 2.85 percent, a yield of 2.85 percent, and a dollar price of 99.9985.

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 un-guaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

Don’t forget Freddie announcing pricing of the second Seasoned Credit Risk Transfer Trust (SCRT) offering of 2019—a rated securitization of approximately $2.4 billion including both guaranteed senior and unguaranteed subordinate securities backed by a pool of seasoned re-performing loans (RPLs). The SCRT securitization program part of Freddie Mac’s seasoned loan offerings which reduce liquid assets in its mortgage-related investments portfolio and sheds credit and market risk via economically reasonable transactions. SCRT Series 2019-2 includes approximately $2.2 billion in guaranteed senior certificates and approximately $247 million in unguaranteed mezzanine and subordinate certificates, expected to settle on May 15, 2019. The underlying collateral consists of 12,406 fixed- and step-rate, seasoned RPLs which were modified to assist borrowers who were at risk of foreclosure to help them keep their homes. As of the cutoff date, all of the mortgage loans have been performing for at least 12 months. The loans are serviced by Select Portfolio Servicing, Inc. and will be serviced in accordance with requirements that prioritize borrower retention options in the event of default and promote neighborhood stability. To date, Freddie Mac has sold $8 billion of non-performing loans and securitized more than $50 billion of RPLs consisting of $29 billion via fully guaranteed PCs, $18 billion via SCRT transactions, and $3 billion via Seasoned Loan Structured Transaction (SLST) transactions. Additional information about the company’s seasoned loan offerings can be found at: http://www.freddiemac.com/seasonedloanofferings.

From Kansas, PK sent:

A New York attorney representing a wealthy art collector called and asked to speak to his client.

“Saul, I have some good news and I have some bad news.”

The art collector replied, “You know, I’ve had an awful day, Jack, so let’s hear the good news first.”

The lawyer said, “Well, I met with your wife today, and she informed me that she has invested only $5,000 in two very nice pictures that she thinks will bring somewhere between $5 to $10 million…and I think she could be right.”

Saul replied enthusiastically, “That’s awesome! My wife is a brilliant businesswoman, isn’t she? You’ve just made my day. Now, I know I can handle the bad news. What is it?”

The lawyer replied, “The pictures are of you and your secretary.”

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

Rob

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

Aug. 9: MI job; DPA, sales, high LTV, analytic products; jumbo news; Santander exits TPO

Critics of the “new and improved” 1003, aka URLA, for loan applications must be quite pleased with the indefinite delay of its required rollout announced yesterday. “The Federal Housing Finance Agency (FHFA) has completed its review of the redesigned Uniform Residential Loan Application (URLA) and has directed Freddie Mac and Fannie Mae to make specific modifications to the URLA form. To allow industry participants time to make the necessary changes, the implementation deadlines will be extended. This means the mandatory use of the redesigned URLA form will no longer begin on February 1, 2020. More details will follow over the next several weeks as we continue to assess the impact of these changes on the timeline with Fannie Mae and FHFA.”

Employment & transitions

Arch MI, the flagship US mortgage insurance provider, is actively looking for an Account Manager in Alabama. The Account Manager builds and maintains long-term relationships in customer organizations to ensure that growth, and quality targets are met or exceeded. The Account Manager develops advocacy with key branch level decision makers and grows profitable market share by proactively identifying and capitalizing on new business opportunities. S/he provides support to National Accounts consistent with organizational objectives and ensures customers receive superior quality and responsive service. S/he works closely with the RVP on direction and strategy for the territory. S/he will be responsible for Arch’s visibility in the marketplace, calls patterns, and results of lender client relationships. Interested parties should send resumes to Tonya Battle.

Fannie Mae and Freddie Mac announced that David Applegate will step down as Chief Executive Officer (CEO) of Common Securitization Solutions, LLC (CSS), a joint venture established by the companies in 2013 to build and operate a new single securitization infrastructure. The CSS Board of Managers has launched a search for his replacement through Spencer Stuart, which will include both internal and external candidates. Mr. Applegate will stay on board to help ensure a smooth transition.

Lender services and products

“While we’ve seen the front end of the mortgage lending process revolutionized in the last decade or so, the backend has remained largely untouched. In most cases, the many systems LOs rely on to structure and close a loan work independently, resulting in a painfully long mortgage lending process. It’s Time to Stop the Loan Officer Swivel. Cloudvirga understands in order to make real automation possible, you must combine technology with deep mortgage industry expertise and regulatory knowledge. For it to actually work in the real world, you have to establish partnerships with legacy players in the space. Once that is achieved, we create something almost unheard-of in mortgage lending: a true digital platform. When lenders adopt technology that actually solves back office problems while creating a pleasant consumer experience, originators are empowered to be more efficient, borrowers get mortgages more quickly, and lenders increase their margins. Everyone wins.”

Lakeview Wholesale makes 101% conventional financing, down payment assistance and no mortgage insurance possible! Lakeview offers a conventional first up to 97% LTV with no mortgage insurance, plus DPA community second of up to 4% for down payment and closing costs (lesser of purchase price or appraised value). Perfect for increasing your high LTV and first-time buyer business this summer. Currently available in select states. Click here to learn more.

Every Loan Lost from Your Database is the Equivalent of Your Home Being Robbed! Stop the Theft – Schedule a Demo with Sales Boomerang today. In 2019 alone, Sales Boomerang’s clientele, comprising the who’s who of the lending industry, have closed $1.7B worth of new loans that they would have otherwise been stolen by their competitors. As we enter the last half of the year, it’s imperative to keep loan volumes high and ensure customer retention. Sales Boomerang’s Automated Borrower Intelligence System notifies lenders the moment an unqualified lead becomes eligible, or when existing borrowers qualify for better interest rates or new loans. At the end of the day, your database is your most underutilized asset. What’s even better is that Sales Boomerang customers are experiencing on average a 11X ROI (some as high as 30X ROI) from implementing this technology. Talk about money well spent! Take 30 minutes to see how you can protect your pipeline and future business.

Are you exporting data from your LOS, CRM, Point-of-Sale, HR, Accounting, (etc.) systems at month end and mashing up in Excel just to see how your mortgage business is performing? It’s labor intensive, error prone, and you’re getting key business intelligence too late to act. Believe me, you’re not alone. If you have been wanting a solution, why wait? Bring in Grind Analytics who can very quickly stand up a centralized data warehouse with real-time dashboards, business intelligence, and self-service reporting available via web, desktop, and mobile: contact sales@grindanalytics.com.

Unlock opportunity in a growing market with Loan Product Advisor® asset and income modeler (AIM) for self-employed borrowers. AIM for self-employed is Freddie Mac’s solution to automate the manual lender process of assessing borrower income using tax return data. It’s also the industry’s only AUS-integrated self-employed borrower income calculation solution. AIM for self-employed makes it easier to do more business, close loans faster and get immediate income rep and warranty relief related to certain borrower employment income. Freddie Mac has teamed up with third-party service provider, LoanBeam®, in leveraging their expertise and powerful optical character recognition (OCR) technology to supply qualifying income for any applicant. Freddie Mac’s broad release of AIM for self-employed on March 6 is the next step in their journey to provide innovative technologies that can help lenders turn more borrowers into homeowners. AIM for self-employed borrowers … and get YOUR edge.

Calling all Production Managers: Since the beginning of time production managers have wondered “How can I get all of my originators to form the habits of my top producers?” You’ve been looking for the holy grail called habit duplication. Usherpa has been researching the habits of highly successful LOs for 25 years. We’ve helped literally thousands of LO’s increase production, in every conceivable market condition, using habit duplication. How? We use technology to duplicate most of the successful habits of the best LO’s so every LO in your organization can do the things big hitters do. – Thoughts from our Founder/CEO Dan Harrington. Find out how you can duplicate top producers’ habits for all your LO’s here.

While you’re at it download the Usherpa eGuide “3 Habits of Top Producing Loan Officers (You Can Duplicate).”

“Here is Part 3 in a Series on DPA. CBC Mortgage Agency is committed to ensuring proper loan performance for homebuyers we help with DPA. With reasonable credit controls and borrower education through a HUD-approved provider, we help buyers realize the dream of responsible homeownership. Borrowers appreciate the effort, giving us high marks for staying in touch through phone calls, emails, and texts for 12 months after closing. See feedback we’ve received from borrowers and lenders. Perhaps that’s one reason our loan performance scorecard is better than national averages. CBCMA provides DPA under rules that are stricter than standard FHA underwriting requirements. When managed properly, DPA has an important place in the real estate ecosystem, especially when it’s provided along with stellar borrower resources to ensure the greatest possible success, such as is offered through the Chenoa Fund Program.”

Business shifts

How much is a lender, or division, that does wholesale or correspondent worth? Putting aside a lengthy discussion of the value of servicing or goodwill, and risk vs. return, succinctly, not enough if you’re Santander. “Santander regrets to inform that the bank is exiting the TPO Business Channel. Each approved client will receive a written termination letter via overnight delivery in conformance with the Broker or Correspondent Lending Agreement. Please note the following important deadlines: August 21: last date to register/lock new loans, August 21, last date to lock loans in the floating pipeline, terms in excess of 60 days will not be accepted for new locks, August 22, Santander will discontinue price sheet distribution, all loans registered on or prior to August 21th will be processed, closed, and funded in accordance with the existing Agreements. Access to Santander Web Mortgage will continue for clients with active pipelines until all loans are funded. Your Santander Account Executive will continue as the main contact until your pipeline is resolved.

(AEs displaced can post resumes on line for free at www.LenderNews.com or to look for recent AE job listings, go to www.robchrisman.com, click on the archives tab, and scan subject lines.)

Jumbo & nonconforming trends

Although large loans are mostly found along the coasts, they are still found in other areas, and few lenders want to run the risk of not having some type of offering for their originators or broker clients. And non-bank lenders find it very difficult to compete with the banks in products and pricing of nonconforming offerings.

Wells Fargo Funding updated its Non-Conforming policy for borrowers who own or finance multiple properties. Effective June 25th for Prior Approval Loans: The number of financed properties (including the subject property) can exceed four when reserves/post-closing liquidity meet the following: When aggregate liens are less than or equal to $3 million, 35% of the total of the aggregate liens. When aggregate liens are greater than $3 million, 50% of the total of the aggregate liens. The maximum number of properties financed or owned free and clear on an investment transaction is being reduced to five.

Effective August 1st, Wells Fargo Funding now has an LTV/CLTV reduction by 5% for California loans with the following criteria: Non-Conforming, Cash-out refinance, Loan Score less than 760. Subject property located in any of the following counties in California: Santa Clara, San Benito, Marin and Sonoma.

Wells Fargo Funding updated its Non-Conforming policy for borrowers who finance or own multiple properties as follows: Previously, the maximum number of one- to four-unit properties that may be financed was four and there was no limit on the number of properties owned free and clear. Effective June 25, 2019, for Prior Approval Loans, the number of financed properties (including the subject property) can exceed four when reserves/post-closing liquidity meet the following: When aggregate liens are less than or equal to $3 million, 35% of the total of the aggregate liens, When aggregate liens are greater than $3 million, 50% of the total of the aggregate liens, The maximum number of properties financed or owned free and clear on an investment transaction is being reduced to five. Effective June 25, 2019, for Non-Conforming Correspondent Credit Underwrite (CCU) Loans: The maximum number of one- to four-unit properties financed by all borrowers on the Loan will remain at four (including the subject). The maximum number of one- to four-unit properties financed or owned free and clear by all borrowers on the Loan will be reduced to five (including the subject).

Wells Fargo Funding has updated its Non-Conforming price incentive categories for fixed rate loans. Effective July 1, 2019, 20-year loans will be included with the 25- and 30-year loans in a new 20/25/30 Year category.

Mountain West Financial began offering the MFW Jumbo RR program effective 8/1. Available as a 30-year fixed option, the primary use for this program is for borrowers that have experienced multiple credit events and reduced seasoning of derogatory credit events.

Capital markets

U.S. Treasuries retreated yesterday, the volatile session being more notable for positioning with the absence of any real meaningful data. There was an overnight improvement in risk tolerance supported by limited movement in the yuan and China’s better than expected balance of trade report for July. The final Treasury auction of the week found some support, as the $19 billion 30-year bond auction drew a high yield of 2.335 percent, tailing the when-issued yield by 1.2 bps while the bid-to-cover ratio (2.24x) was a touch below average.

International politics continued to dominate headlines as it was reported British Prime Minister Boris Johnson plans to hold a general election shortly after completing Brexit. And Deputy Prime Minister Salvini, made it clear that Italy appears to be headed for a general election, saying the current coalition with M5S is irredeemably broken. We did have some more central bank news, with the ECB’s latest Economic Bulletin predicting a rising risk of a broad-based deterioration in global growth expectations due to weak services output in Q2. Though the bulletin did note that economic indicators continue pointing to employment growth and steady consumption growth.

This week’s economic calendar ends with the July Producer Price Index (+.2%, as expected, the core rate, not including food & energy, was -.1%). We begin with the 10-year yielding 1.70% and agency MBS prices up/better a few ticks.

An elderly couple went to breakfast at a restaurant where the Senior Special was two eggs, bacon, hash browns and toast for $1.99.

“Sounds good,” the woman said. “But I don’t want the eggs.”

“Then I’ll have to charge you two dollars and forty-nine cents because you’re ordering a la carte,” the waitress warned her.

“You mean I’d have to pay more for NOT taking the eggs?” she asked incredulously.

“Yep,” stated the waitress.

“I’ll take the special,” she replied.

“How do you want your eggs?”

“Raw and in the shell,” she exclaimed.

She took the two eggs home.

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

Rob

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

Aug. 8: Ops, AE, LO jobs; credit, doc. products; vendors raising money & offering free inv. prop. appraisals

Are there “non-profit” lenders and/or real estate companies in the private sector? (I’m talking business model, not tax status.) Sure there are. Here’s a quick example: Homewise in New Mexico. But in my talks with lenders around the nation, profit is the name of the game, and non-bank lenders are always watching bank and credit union activity in residential lending. Market share is always shifting. There are lots of smart folks who will tell you that banks are no longer as attracted to the current legal and regulatory “resi” environment, nor the volatility in volumes and profits, and that perhaps the residential borrower is not viewed as the cornerstone of banking that they once were. Change is a constant!

Employment

Bell Bank Mortgage, based in Fargo, North Dakota has announced the opening of a new office in Albuquerque, part of the successful mortgage company’s expansion in the Southwest which includes an additional group of experienced lenders setting industry standards for excellence and integrity in Santa Fe, Clovis, and Albuquerque NM. Yvette Klinkmann, New Mexico area manager for Bell Bank Mortgage, will move into the new Albuquerque space at 2440 Louisiana Boulevard N.E., Suite 110. Bell Mortgage is a division of Bell Bank, one of the nation’s largest privately held banks, known for its family atmosphere and award-winning culture and consistently named a top workplace regionally and nationwide.

“Thanks to the incredible success of the NONI, theLender has become the fastest growing NonQM wholesale lender in the country (+1,067% growth!). As Congress ponders what to do with the GSE “patch”, theLender is already prepared for the shift. We’ve made a significant investment in the non-owner space and are proud to announce we can close NONIs in 5 days or less. That’s right, no TRID timeline restraints preventing loans from funding and no GFE/TIL to deal with. Since these 1-4-unit non-owner-occupied properties are true business purpose loans, you can now utilize theLender’s exclusive business purpose process. Additionally, we’ve made updates to licensing requirements allowing brokers to expand their state footprint as well as enhancements to our business purpose pricing. You can learn more by registering for our webinar Aug 15th at 10am by clicking this link https://lnkd.in/g-ZaAWf. If you want to work for theLender email recruiting@theLender.com.

Caliber Home Loans, Inc. is having an awesome 2019! Last month we funded over $6 billion overall and prior to that reported originations 13% over our sales plan for the first half of the year. Our business is growing and we’re hiring nationwide for several in-demand positions for all sales channels. Caliber is having an Employee Referral Bonus Bonanza too and has extended it to Friday, August 30th. This month Caliber employees can now earn $1,500 by referring qualified candidates to our Operations department. Eligible candidates can apply online, or if you know a Caliber employee, let them refer you to us– it’s a win-win!”

Are you ready to grow your business with the help of the top real estate company in the Greater Charleston, SC area? If you are a purchase-oriented loan officer or junior MLO in the Summerville/Charleston, SC area, NewRez wants to talk to you about an opportunity in its joint venture partner Carolina One Real Estate in Carolina One Mortgage. “We have a tremendous position available for a hungry and dedicated loan officer,” said Kim Shelpman, President of Carolina One Mortgage. “A spot inside one of the busiest offices for the #1 real estate company in the region creates a fantastic opportunity to significantly grow your income.” Contact Vince Daino, VP of Recruiting and Business Development to learn how to step into an origination role with an in-house audience, and to find out about additional roles for loan officers and producing managers throughout the country within NewRez’s other real estate partnerships.

“Interest rates continue to drop at a historic pace. For borrowers currently looking to build a home, the lower rates may equal greater access to products and potential savings. Even better, GSF Mortgage Corporation offers customers a Float Down option for Single Close Construction loans. The feature protects your borrowers by automatically lowering the interest rate and monthly payment if interest rates are lower when their home is complete. A Single Close Construction loan provides customers with the peace of mind in knowing their interest rates and monthly payments before construction begins and when construction is complete. GSF Mortgage Corporation offers more choices to our customers than most other lenders, to buy or build their dream home. If you’re an Originator with construction experience, please contact our VP of Retail, Frank Papaleo, for information on our growing Single Close Construction program.”

A quarterback doesn’t carry the entire team alone. They need linebackers, safeties and running backs to succeed. QLMS continues adding more MVPs to its team and the results speak for themselves. From Q2 2018 to Q2 2019 QLMS doubled its number of broker partners and tripled its closed mortgage volume. This growth is a result of the record number of AEs and Operations team members who joined the company within the last year. Now QLMS is looking to add even more all-stars. QLMS is hiring hundreds of team members, from AEs who maintain relationships with partners to Operations team members who make sure loans make it to the closing table. The team isn’t complete without mortgage professionals like you. Become a part of this banner year – and every successful year to come after. Click here to if you’re ready to join the fastest growing lender serving brokers.

Lender products & services

THE COMPLIANCE NEWSHUB is your mortgage credit and compliance resource library. Join the thousands of industry professionals who’ve subscribed to ARMCO’s Compliance NewsHub, the mortgage industry’s first free comprehensive searchable online resource for regulation-related news and information. The Compliance NewsHub provides mortgage lenders with fast and easy access to the most comprehensive source of current information on a full range of regulation-related topics—from investor guidelines to state law and CFPB mandates. ARMCO’s Compliance NewsHub provides the latest compliance news and announcements by category: federal legislation, legal, industry, agency/GSE, disaster and state. The Compliance NewsHub Calendar offers a searchable library of past and future regulation announcements that users may search according to date, industry and regulating body. Subscribe to the ARMCO Compliance NewsHub Bulletin and get a free Checklist on How to Survive an Onsite Audit.

Are you looking for ways to get loans off your books faster? Then you should check out a webinar that TMS and Ellie Mae will be hosting on August 15th at 2pm EST. The topic is Ellie Mae Encompass Investor Connect™, a huge driver of innovation in the correspondent lending industry that takes the traditional and frustrating manual loan package delivery process and upgrades it for today’s digital mortgage age. To learn how you can improve pricing tiers and purchase times, work faster while ensuring accuracy and audit info with ease, register now

Freddie Mac Single-Family is ALL FOR reducing barriers and raising hope. Freddie Mac is expanding the thinking around affordable lending and inspiring others to do the same. With All For HomeSM, we’re leading the way through providing insights, education, mortgage products and business solutions that address the needs of today’s borrower and of The Borrower of the FutureSM. Rising home prices and interest rates, coupled with a lack of entry-level inventory, are increasing affordability challenges. Demographic and cultural shifts, migrations from rural to urban, first-time homebuyers with thin-credit files and complex processes pose additional barriers to achieving the American dream. It takes collaboration and partnership to innovate solutions that make a positive impact. Learn more about All For Home, discover key insights to inform your business and take advantage of solutions and tools that will enable your borrowers to make Home Possible®. All in. All of us. All For Home.

Borrower preference for mobile loan applications reached the tipping point in 2Q19. According to SimpleNexusmobile loan applications accounted for more than 50% of the 37,157 applications originated on its platform in May. This finding comes as SimpleNexus is clocking record loan application submissions and growing at an unprecedented rate. The firm’s triple-digit growth and enthusiastic adoption by LOs, real estate agents and borrowers is testimony that it’s delivering on a market need for a mobile origination toolset that accelerates pull through and production. For more info on how SimpleNexus can empower your LOs to get more loans to the finish line, faster, request a personalized demo. And if you’ll be in San Diego for the CMBA’s inaugural Tech Innovators Conference, stop by the SimpleNexus booth (#404) or catch our CEO Matt Hansen moderating Sunday’s opening panel, which explores the question: “What do lenders need out of their tech partners?”

Floify just announced three new integrations with leading credit reporting agencies, including CIS, Informative Research, and SettlementOne, which have all joined the ranks of its massive suite of impressive third-party solutions. As many tech-savvy LOs know, Floify’s powerful integrations with credit agencies have made it incredibly easy for mortgage teams to seamlessly pull and receive a prospect’s tri-merged credit report, all from within Floify. Additionally, LOs are able to first collect a prospect’s eConsent and Credit Authorization in just a few clicks via the system’s built-in capabilities. Once a prospect has authorized the credit pull, an LO can configure their Floify to automatically retrieve credit reports upon converting a prospect loan application into a live loan, or the LO has the option to quickly order credit from any in-progress loan. To see how Floify and its growing list of integrations will help you streamline your lending operation, request a demo.

Name changes

Shamrock Financial turned 30 years old on July 19th and celebrated with a rebranding to Shamrock Home Loans (August 1st.) The company is one of the longest standing privately owned IMB’s in southern New England. The founder and CEO, Dean Harrington, is the most recent past president of Rhode Island Mortgage Bankers Association. Shamrock’s president, Rod Correia, is a former Major League baseball player with the California Angels and has been with the Shamrock for 20 years.

Don’t forget that Sun West Mortgage Company, Inc. (“Sun West”) changed its registered name in Arizona from ‘Sun West Mortgage USA, Inc. (FN)’ to ’Sun West Mortgage Company, Inc.’ So Closing Protection Letter and Homeowner’s Insurance documents for properties located in Arizona must mention ‘Sun West Mortgage Company, Inc.’ as loss payee instead of ‘Sun West Mortgage USA, Inc. (FN)’. Contact Customer Care (844-978-6937) with questions.

Vendor news

There are vendors raising money, the latest example being Morty raising $8.5 million.

And how about Velocity Mortgage Capital giving out free appraisals and promotional marketing material that “equip brokers with everything they need to connect with borrowers seeking residential and small commercial investment property loans”?

Opendoor launched a new home buying service that “helps buyers find the right home and buy it at the best price, with a buyback guarantee that provides peace of mind. We’ve built an experience that empowers buyers throughout the journey with on-demand self-tours for any home on the market, all-cash offers, and our 90-day buyback guarantee. This integrates the Open Listings platform, which Opendoor acquired 10 months ago, into Opendoor and marks a major advance toward Opendoor’s vision to deliver a frictionless, all-in-one home buying and selling experience at the tap of a button.”

In Kansas City nbkc bank has selected the Total Expert Marketing Operating System® (MOS) to propel its marketing and sales efforts, leverage customer data to make informed decisions and enhance the customer experience. nbkc was one of banking’s earliest pioneers in the online mortgage market, and its originators run almost $3 billion annually, nationwide. Total Expert serves 8 of the top 15 mortgage lenders in the country and offers versions of its enterprise-grade marketing operating system to banking, credit union, real estate and wealth management organizations.

Capital markets

At the Lenders One conference this week the recent rally and potential margin calls seemed to be on everyone’s mind. Lenders using bid tape assignment of trade (AOT) executions may be able to mitigate these margin calls thanks to immediate AOT acceptance. This is one feature of bid tape AOT that differentiates it from legacy AOT. You can find a full list of these differences, along with background on the economics and automation tools, in MCT’s bid tape AOT guide.

U.S. Treasuries rallied again on Wednesday, driving yields on longer-dated Treasuries to year-to-date lows, including the 10-year closing -6 bps to 1.68 percent. First, there were three rate cuts from Asia-Pacific central banks (New Zealand, Thailand, India), with the Reserve Bank of New Zealand announcing a larger than expected cut. Then the People’s Bank of China fixed the yuan just below 7.00 per dollar, but it weakened past that level later in the day. Finally, it was a disappointing day from Europe, where Italy’s Deputy Prime Minister Salvini cautioned that Italy’s deficit-to-GDP ratio will not be below 2.0% in 2020, Germany’s June Industrial Production decreased beyond expectations, and the U.K.’s July Halifax House Price Index missed expectations.

Here in the U.S., as far as UMBS went, it was hit with a 2018 vintage agency prepayments figure well above expectations, 70 percent versus 40 percent predicted. Overall FN30 speeds were near expectations on average, rising 16 percent, while GNIIs prepaid slower than expectations at 9 percent.

Today’s calendar began with initial claims for the week ending August 3 (209k, the labor market continues to be solid). Later this morning brings June wholesale inventories and some Treasury auction and refunding announcements. We begin the day with the 10-year yielding 1.72% and agency MBS prices nearly unchanged.

The human mind is amazing. Like a veteran loan officer in 2006 filling in the missing pieces of borrower information, check out this black and white photograph and what your brain does to it.

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

Rob

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

Aug. 7: AE, LO jobs; U/W, JV, DPA, CRM, broker products; 2nd mortgage and conv. conforming trends

For me the first three weeks in August includes time in California, Washington, Nevada, Tennessee, and Michigan. Did you know that roughly 80% of new houses being built are in the South or West? Freddie and Fannie know a lot about lending on new homes, and lending to first time home buyers. Recall that a piece of their gfees goes from the borrower to the government, and their profits go to the government as well through “dividend sweeps.” What are the Agencies talking about these days in meetings with clients? Appraisal modernization, Fannie’s servicing marketplace, and data validation top the list. And fine if you want to ask them about the QM patch, but they will do what regulators and the FHFA tell them to do about it and that won’t be known for quite some time. More Fannie & Freddie (conventional conforming) news below.

Employment & transitions

Fresh off the heels of another record-breaking quarter, non-QM lender Angel Oak Mortgage Solutions added to its roster of Account Executives in July. Mark Tirabassi came on-board in New Jersey, Danielle Evans in Houston, Jaime Sanchez in San Diego and Alex Trujillo in Inside Sales. These AEs have gone through the first round of training and have been teaching brokers and correspondents how easy it is to work with Angel Oak. And Angel Oak is not done yet, continuing to add Account Executives in many additional markets across the country and Inside AEs in Miami. To learn more, view the latest job openings on the Careers Page or email Regional Sales Manager, John Wise.

Volume at Caliber Home Loans, Inc. has really been heating up this summer! The top-tier lender had a hot month in July, funding $6 billion overall – making it the BEST month in company history. Such strong mid-year performance can be attributed to proprietary technology, streamlined operations and talented producers. A month prior, Caliber ended the second quarter with originations 13% above its 2019 sales plan. Caliber is a modern mortgage lender that’s breaking its own sales records and providing products for today’s borrowers. It has no plans of slowing down and is excited to carry this strong momentum to the end of the year and beyond. In fact, Caliber continues to hire in markets across the country. To learn more, visit its website or email SVP of Recruiting, Jeremy DeRosa.

The StoneHill Group added Jamie Giorello as National Inside Sales and Marketing Executive, and Anthony Golden as National Sales Executive. Ms. Giorello will be responsible for new business development, marketing and sales support, along with existing client retention. Mr. Golden will drive national business development efforts throughout the Western United States.

The Lenders One leadership team added Justin Demola, CMB, as VP, Sales to “lead the sales group to further maximize member value by utilizing a consultative approach to offer provider solutions tailored to members’ specific needs.”

And Mortgage Quality Management and Research, LLC (MQMR) announced that Stephen Sherman has joined the firm as Chief Operating Officer responsible for overseeing MQMR’s day-to-day operations and managing the firm’s long-term growth strategy.

Lender services & products

“You know us for our rates and programs, you love us for our service, now get to know our Renovation programs. loanDepot Wholesale makes Renovation lending easy. Our Renovation Lending Suite includes programs designed to accommodate both large and small home improvement and repair projects. Giving you more options for your real estate partners and clients to meet their homeownership needs. Flexible solutions that include FHA 203k Limited and Standard as well as FNMA HomeStyle®. loanDepot Wholesale – proud sponsor of improving homes across America. Contact us today to learn more. Rates, terms, and availability of programs are subject to change without notice: www.nmlsconsumeraccess.org.”

If your business isn’t texting in 2019, you’re behind the curve. 78% of U.S. consumers say that business texts are the best way to reach them, and texts are the most opened form of communication. But business texting can be inefficient and frustrating if you don’t have the right tools. Luckily for you, Jungo, the Salesforce-based, mortgage optimized CRM, launched its brand-new SMS texting app this week. This add-on for Jungo customers provides a seamless texting experience for all. Your team will be able to send loan process updates to their customers and referral partners, or automate mass messages. Plus, all texting history is contained within their CRM, so you can ensure your communication is compliant. To learn more, click here.

The Stearns Lending Wholesale team is excited to announce the FLEX Non-QM product series. With our Flex Investor, Flex 24, Flex 36, and Flex 48 brokers can now offer a variety of options with No Ratio Programs, Bank Statement qualification, 1-year income documentation and Expanded Ratios up to 55%.  “The Non-QM launch represents a unique opportunity for Stearns to bring our best in class fulfillment experience to the Non-QM product line” says Nick Pabarcus EVP of Wholesale Lending.  Learn how your trusted advisor and Account Executive can support your business on this product line and utilize Stearns’ best in class fulfillment team to elevate your Non-QM options in the market today.  If you’re a broker looking to partner with a lender who has a 30-year track record of success please email wholesaleleadership@stearns.com.

“Chenoa Fund Builds Communities, Part 2 in a Series on DPA. Offered by CBC Mortgage Agency, the Chenoa Fund has enabled thousands of borrowers to realize the dream of homeownership. Our broader goal is to use innovation to help America resolve its affordable housing crisis. How? CBCMA created the CRA Note Exchange as an online marketplace allowing purpose-driven entities to gain liquidity for their paper and receive cash to further their missions. Already, over 4,000 loans have traded on the platform, helping groups such as Habitat for Humanity. CBCMA also has partnered with minority faith-based churches to hold seminars on homeownership, and co-founded a workforce housing opportunity zone fund to address affordable housing needs in gentrifying areas such as Baltimore. In addition, CBCMA partnered with CityVision Homes to promote neighborhood revitalization by renovating blighted properties. Revenues from these and other initiatives fund critical economic development projects for the Cedar Band of Paiutes in Southern Utah.

NewRez is proud to announce the formation Your Home Financial, a new Joint Venture mortgage company recently added to its network of partners. NewRez and Shelter Mortgage Company, the NewRez business division focused on JV lending, have partnered in this venture with Russell Real Estate Services, a long-standing family-run business serving the greater Cleveland, OH area. Led by Paul McKelvey, the creation of Your Home Financial combines the expertise of some truly seasoned industry players in their respective lines of business. “The innovative Joint Venture model offered by NewRez and Shelter Mortgage enables us to offer our clients a complete menu of mortgage services from an established platform and the credibility to achieve success in the mortgage business,” said Jeff Russell, COO Broker/Owner. For more information on the Shelter Mortgage Joint Venture platform, please contact Randy VandenHouten or go to newrez.com.

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®.

Second mortgage news

From Houston comes, “Based on evolving market conditions, Cadence Bank has made the strategic decision to exit the purchase-money second lien mortgage business effective August 15, 2019. We will no longer be accepting new applications for PMT loans as of August 15, 2019. Our team will handle any loans currently in process with the utmost efficiency and professionalism that you have come to expect from Cadence Bank.”

Ditech Financial Approved Correspondent Clients note: the eligibility and underwriting guidelines for the Piggyback Closed End Second EE products have been revised.

Plaza Home Mortgage’s Closed-End Second Lien Program Guidelines have been updated for more flexibility. Highlights include new flexibility in trade line requirements, delayed purchase refinances are now eligible, gifts of equity are now allowed and land contracts, contract for deed, and lease option to buy are now eligible.

Conventional conforming

Fannie Mae posted answers to its customers’ most frequently asked underwriting and eligibility questions on the updated top trending FAQs page. The page has been redesigned to group FAQs by theme, such as rental, employment, and retirement income.

In Fannie news, servicers using Servicing Management Default Underwriter™ (SMDU™) can now update borrower delinquency data to match what is in their systems of record when the delinquency is attributable to an acceptable reason. Acceptable reasons include a servicing transfer or a disaster event for which the borrower is compliant with a related workout. View the MI Termination User Guide within SMDU for details on updating a delinquency.

Click here to review FAQ’s.

PennyMac Correspondent has been busy with announcements. Its newest postings include: Announcement 19-44, an update to its Early Payoff Policy in the Seller’s Guide. Announcement 19-42 covers updated information on ChoiceRenovation, HomePossible Income Limits and Real Estate taxes. Announcement 19-43 outlines the update to VA Seasoning Requirements and COE required for all VA IRRRLs.

AmeriHome accepted the Freddie Mac changes in Bulletin 2019-16 except “Properties in Disaster Areas – Age of Documentation Flexibilities,” which is under review and will be announced in the future. The other topics in the Freddie Mac Bulletin have been accepted with additional timing overlays. Home Possible – Rental Income for 1-Unit Primary Residence – Required for loans delivered to AmeriHome on and after 9/10/2019. Home Possible – Multiple Financed Residential Properties – Implementation Date Extension – Required for loans delivered to AmeriHome on and after 8/16/2019. Calculation of Monthly Housing Expense – Real Estate Taxes – Required for all applicable loans delivered to AmeriHome on and after 9/10/2019.

Stearns is offering training materials for its new “Conforming Interest Only” product. The training materials for the client base is now posted in SNAP 2.0. Follow these easy steps to access:

Click on “Training Links,” click on “Origination,” and click on “Conforming Interest Only Presentation.”

The Mountain West Financial Wholesale Bulletin 19W-066 provides information on Freddie Mac HFA program regarding Non-Occupant Co-Borrowers.

Capital markets

Last week saw the widely expected 25 basis point rate cut from the Fed; the first cut since December 2008. Given the markets’ high degree of certainty, buoyed by recent Fed speak, the focus of the announcement was the next move and whether this cut would be enough for the time being. In addition to the cut, the Fed also announce and early termination of its balance sheet run-off, which is logical as that policy tool has an opposite effect of a rate cut. In his post-meeting press conference, Fed chairman Powell tried to leave all options on the table despite the markets’ desire for hints at a future cut. Overall, his comments left the impression that the move was not necessarily one and done and its unlikely that the underlying economic conditions that prompted the move will change significantly over the near-term. Nonfarm payrolls were out a couple day later and showed the economy added 164,000 jobs in July and unemployment remained at 3.7 percent. Average hourly earnings were up 3.2 percent year-over-year; a pace not likely to significantly increase inflation and therefore cause no alarm for the Fed. Of course, the wild card remains US – China trade relations and the effects of the newly announced tariffs which sent financial markets into a tailspin.

The rally finally abated yesterday, though the curve did display a slight flattening (the 10-year closed unchanged at 1.74%) on no real headline news. Markets took note of a couple events, including the People’s Bank of China deciding not to further cheapen the yuan, St. Louis Fed President Bullard saying that the FOMC should not rush with another rate cut (though he conceded that he expects one more cut before the end of 2019), and the Reserve Bank of New Zealand announcing a 25 bps reduction of its official cash rate to 1.25 percent after the close. The Job Openings and Labor Turnover Survey showed that job openings increased to 7.348 million in June from a revised 7.268 million in May.

Today is light on the economic calendar, but mortgage applications increased 5.3 percent from one week earlier according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending August 2. (Refis were up nearly 12%.) Later this morning brings remarks from the historically dovish Chicago Fed President Evans and June Consumer Credit. We begin the day with Agency MBS prices and the 10-year yielding.

Ever wonder…

If twins ever realize that one of them was unplanned?

What if my dog only brings back my ball because he thinks I like throwing it?

If poison expires, is it more poisonous or is it no longer poisonous?

Which letter is silent in the word “Scent,” the s or the c?

Every time you clean something, you just make something else dirty.

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

Rob

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

Aug. 6: LO jobs; sales, retention, broker products; business is great, but what’s a margin call?

With this downward move in rates lenders across the nation are girding their loins for margin calls from broker/dealers on mortgage-backed security positions. (What’s a margin call? Answer in the capital markets section.) And everyone’s stock investments are being pummeled – let’s hope someone thought to move those monies for future down payments from potential borrowers to cash instead of keeping them in stocks. Speaking of things that many don’t think about, as highways switch to electronic toll payment systems, the number of toll collectors are dwindling. That’s okay unless a) you have a problem in Lane 2, or b) you’re a kid and your parent is a toll collector. The Port Authority of New York and New Jersey employed 450 toll collectors in 1997 and now only has 158; the Jersey Turnpike and Garden State Parkway are down to 884 collectors from 1,680 in the 1990s. The New York Thruway will soon transition to entirely automated tolling. 2,900 miles away in San Francisco the Golden Gate Bridge has no toll takers.

Jobs

“We’re always curious to hear why our Loan Officers join us. For Boston-based loan officer Catherine Long, it was Citizens Bank’s reputation in the community. ‘I’ve been in the mortgage business approximately 22 years, and during that time Citizens has been a player in the industry — especially with their products, rates and customers,’ explains Catherine. ‘However, I really joined because I felt Citizens catered to their clients on a more personal level and had a retail presence that was truly invested in the community, which in turn makes it easier for me to sell my business.’ We agree — thanks for sharing, Catherine! If you want to work for a company that strengthens its communities, apply at Citizens Bank today. For questions, please email Home Mortgage Recruiting.

Recruiting producers in the mortgage space is challenging. Quality talent doesn’t typically come to you. Utilizing technology that rely on candidates to respond to job postings & upload resumes, aren’t going to be all that effective. That’s why leveraging the right technology can make all the difference. Model Match, an award-winning Talent Management Software (TMS) designed by Mortgage Recruiters, is for Mortgage Recruiters. Offering a full suite of solutions, the Model Match ecosystem solves the challenges of sourcing, attracting and hiring, qualified candidates. Our Market Insights Integration provides complete visibility into valuable loan production data and origination reports, helping to target candidates doing the type and amount of business best matched to your organization. Model Match brings your entire pipeline and team into one central, collaborative space helping your you and your team stay organized and on-track. Click here to see how Model Match is changing mortgage recruiting.

Lender products & services

PCF Wholesale is excited to announce the addition of Tom Hoppe as its Vice President of Sales. “Tom has been not only a great leader in Sales but a proven salesperson. A good leader sets a great example by being an example,” says Keith McKay, CEO. “Tom understands the vast needs of the Broker community and will help our organization deliver the best-in-class products, from Agency, to Non-QM and Jumbo. The Mortgage Broker is back, better than ever and we are here to add even more value to our partners.” PCF Wholesale was built for Mortgage Brokers with a Broker’s mindset and is fully dedicated to becoming a predominant figure in the wholesale space. Please contact your AE for more info about our products or contact PCF Wholesale directly at marketing@pcfwholesale.com if you want to get an AE assigned to your company.

Financial brands taking a customer-centric approach are quickly setting themselves apart from competitors. And personalization, hyper-personalization and humanization are all at the forefront of improving the customer experience. But what’s the difference between these techniques and when should you use each one? Read the Total Expert blog and dive into the true meaning of personalization, hyper-personalization and humanization, and learn how you can leverage these techniques to grow your revenue. 

The current rate environment has created a ton of business. With that comes challenges at every level of production with strains on time and capacity. Many Originators can barely keep their head above water. If this is you, or if you want to be more productive and not work crazy hours, Todd Duncan has just released his FREE E-Course: 6 Essential Steps to Achieving Time Mastery to help you create MASSIVE efficiency and productivity in your business. In this course, Todd reveals the six lessons employed by his top-producing students that personally fund in excess of 25 loans monthly. This course includes the #1 Lesson in Productivity, the Power of an Hour, How to Say No to Distractions and Maximize Your Time Block, and much more! Act now and say hello to more productive and less stressful days! Click here to access Todd Duncan’s FREE E-Course TODAY!

ATTENTION EXECUTIVES: XINNIX will host a live Leadership Lessons webinar, The Engagement Dilemma: An Executive Wake Up Call on Wednesday, August 21 at 2:00 PM. Studies show that more than three quarters of today’s employees are not engaged in their workplace. They’re non-productive, apathetic toward their work, team, manager, and organization, and they don’t feel that they have a strong incentive to give their best effort in their job. Here’s the good news: the majority of employees are actually ready to fully engage. They’re just waiting for the opportunity to do so. In this webinar, XINNIX CEO and Founder Casey Cunningham will speak to top executives from four of the nation’s leading mortgage companies about the strategies and best practices they have put into place to engage their workforce and how this culture shift has transformed the way they do business. Register today!

Capital markets

With the recent move down in rates that have LOs buying Silver Oak instead of Boone’s Farm, many broker/dealers have been sending margin calls to lenders who have their pipelines hedged with mortgage backed securities. But what is a margin call and why this is happening? A margin call is a demand by a broker/dealer that a lender deposit further cash or cash equivalents to cover possible losses. When trading stocks, this usually means that one or more of the securities held in the margin account has decreased in value below a certain point, requiring additional cash or liquidated positions to maintain a minimum margin. When hedging MBS, margin calls are more of a down payment on a potential loss.

Let’s take a look at a simple example for mortgage backed securities that shows how the recent decline in rates is affecting hedged pipelines. Let’s say $1 million of loans were locked in for 45 days at 4 percent last month. They were originally priced at 100.00. A hedge is placed against these by selling an $800k 3.5 percent security at 101.00. But rates then drop and the MBS bond market rallies a point to where the prevailing interest rate is now 3.5 percent. These 4 percent borrowers may take their loans elsewhere at a lower rate, resulting in fallout from a lender’s pipeline. The $1 million in loans has increased in value, however, and are now worth 101.00, and the hedge for $800k now has a market value of 102.00. So, if the lender pairs out of/buys the hedge back, the lender will lose 1 point (sold at 101.00, potentially bought back at 102.00). This potential loss is what the margin calls are for. In this case, the MBS securities have increased in value, and an originator’s “mark-to-market” figures have changed as a result.

And LOs, your capital markets folks are much more considerate than the broker/dealers on Wall Street. Broker dealers don’t renegotiate. There’s no, “Let’s split the rate lock price and the current market.” And Wall Street doesn’t know about the loans in the pipeline supposedly “backing up” the trade, so they want a piece of the price difference in the form of a margin call. And they want all the price difference on settlement day. Period. Each broker dealer can establish their own threshold that triggers a margin call.

For small, thinly capitalized mortgage banks a margin call can create a cash problem. Remember, the Federal Reserve Board requires a lender always have enough money in its account to cover the maintenance margin. To see a standard Master Securities Forward Transaction Agreement (MSFTA), click this link.

Economic data continues to be both negative and positive, pointing to moderate U.S. GDP expansion for the third quarter. Nonfarm payrolls increase 164,000 in July and the unemployment rate remains low at 3.7 percent. New unemployment insurance claims were at 215,000 for the week ending July 27 and continuing claims were at 1,699,000. Manufacturing activity continues to slow with the ISM Manufacturing Index declining to 51.2, the fourth consecutive monthly decline. Keep in mind, this still indicates manufacturing is expanding, however the rate of expansion has been in decline. The international trade gap narrowed slightly in June to -$55.2 billion with both imports and exports declining. Speaking of trade, the Trump Administration announced a new round of tariffs on imports from China to go into effect on September 1. This 10 percent tariff includes consumers good which had spared from previous announcements and will likely be noticeable to shoppers. Nominal personal income ticked up 0.4 percent in June and real disposable income was up 0.3 percent. Meanwhile personal consumption increased just 0.1 percent but the personal saving rate was a stout 8.1 percent for the month.

The good news is that rates are down and refis are booming. The bad news is that your equity-based 401k got kicked in the teeth. The inverted yield curve, which occurs when the three-month US Treasury yield is higher than the 10-year yield and which gives an early sign of recession, has offered the strongest signal since 2007. The spread widened to 32 basis points. Remember: an inverted yield curve does not cause a recession. The U.S. economy is actually doing quite well.

U.S. Treasuries rallied Monday on the back of last week’s surge, including the 10-year closing -12 bps down to 1.74 percent, after the People’s Bank of China allowed the yuan to weaken to its lowest level in eleven years, fueling concerns of a bigger devaluation. President Trump accused China of currency manipulation, though a governor for the PBoC denied these allegations. Additionally, China announced that the purchase of U.S. agricultural products has been suspended. The ISM Non-Manufacturing Index in July showed a continuation of the decelerating trend over the last 10 or so months, now reaching its lowest level in almost three years. As a result, the September fed funds likelihood of a rate cut before the September meeting went from around 12 percent at the open to over 60 percent by the close.

Today is light on the economic releases, but it will be interesting to see how Treasuries react in lieu of yesterday’s action. Redbook same-store sales for the week ending August 3 will be released shortly, and later this morning brings JOLTS job openings, and remarks from both Philadelphia Fed’s Harker, and St. Louis Fed President Bullard. Additionally, the RBA was out with their latest monetary policy decision, where they held rates steady at 1.00 percent. Tuesday starts with a bounce from yesterday (not a surprise) with the 10-year yielding 1.76% and agency MBS prices worse .125.

(Thank you to Larry P. for this classic.)

One night four college kids stayed out late, partying and having a good time. They paid no mind about the final exam they had the next day for which they didn’t study. In the morning, though, panic took over and they hatched a plan to get out of taking the exam. They covered themselves with grease and dirt and went to the Dean’s office. Once there, they said they had been to a wedding the previous night and on the way back they got a flat tire and had to push the car back to campus so they couldn’t make it on time for the exam and they hoped they would get another chance at taking it some other day.

The Dean listened to their story without saying a word. When the students finished telling their story he offered them a chance to take the test three days later.

They thanked him and accepted his offer. And for the next three days, the four students studied without unnecessary breaks. They studied as hard as never before, only taking breaks to eat and sleep. Finally, after three days the four students were confident: they knew everything and that nothing could surprise them. They walked into the Deans office confident and determined they will ace the exam.

The Dean welcomed them and told them they will have to take the exam in separate rooms and that they would have to leave all of their things in a special locker in his office since there are no professors to watch over them. They were fine with that since they had all studied hard. Finally, each one of them sat in his own classroom with a pen and exam waiting for them on the table. Everything was fine until they saw the exam which had only two questions:

Question ONE: Your Name __________ (1 Points)

Question TWO: Which tire? (99 Points)

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

Rob

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

Aug. 5: AE, LO jobs; CRM/LOS, warehouse, broker products; FHA & Ginnie news; CFPB & DOJ Fair Lending investigation?

Blame mental health. Blame gun control. Blame “the system” or background check procedures. There’s plenty of blame to go around when it comes to the terrible mass shootings, and shootings in general. One would think politicians are weary of saying, “Our thoughts and prayers go out to…” Meanwhile, states wait for the next one. Are U.S. states at least putting money into housing construction? Yes! Speaking of the United States, several readers wrote to me regarding my post Saturday about the significant strides that Hispanics have made in obtaining financing to purchase homes, and more specifically to tell me that the United States as no official language.

Employment

50 for 50. This is what ACC Mortgage is calling the plan to generated $2.5 billion dollars a year in Non-QM paper. ACC has designed and built a platform to support 50 top quality AE to each generate $50MM a year. AEs will not be restricted to geography, or by legacy. ACC has grown to 26 states, increased its funding capacity, lowered rates, and created new products. On top of the top comp plan in the industry, ACC has added a profit-sharing program to compliment the generous health and benefits program while leading the market as the Oldest Non-QM Lender in the industry. If interested, please send resume to recruiting@accmortgage.com

Trinity Oaks Mortgage is proud to welcome Scott Crutcher as Executive Vice President of National Production. Scott joins Trinity Oaks with a wealth of industry knowledge with experience from origination to leadership. Scott’s track record of building profitable and productive teams will be utilized as Trinity Oaks continues to expand nation-wide. “Scott is an incredible asset to our team,” said Trinity Oaks Mortgage President TJ Henley. “Our business continues to grow due to bringing on team members who believe in our vision and want to join us in our efforts to orchestrate simple home buying experiences for families across the country.” Leveraging a unique culture, cutting-edge technology, robust marketing, and outstanding operations team, Trinity Oaks Mortgage is hiring Producing and Non-Producing Branch Managers and Loan Officers in its multi-state footprint. If you’d like information about career opportunities, Scott can be reached here.

Lender products & services

Using the Right Tools and Team: When asked, lenders like yourself often say that trailing docs is the weak link in an otherwise fluid operation. You stretched your resources, but still can’t keep up with the tedious, but critical, tracking and follow-up needed to ensure that all docs are retrieved and processed in time to send to your waiting investors. At DocProbe, we heard you loud and clear. So we put together a team, and built the technology to quickly and accurately retrieve, audit, manage corrections, and ship every deed and title policy on time. Our proprietary LOS-integrated software lets you track your loans while we do all the work. And our online reporting shows the status of all files in real time. Your DocProbe rep works with you to customize the system according to your needs, as we become your partner in turning out great work. Always correct. Always on time. To get started, email nerlanger@docprobe.net or call us at 866-486-0554.”

“The Stearns Lending Wholesale https://www.stearnswholesale.com/ team continues to break records, with July 2019 being our highest lock month in nearly two years. Stearns continues to demonstrate our unwavering commitment to the mortgage broker. Through operational excellence, industry leading technology and Account Executives that are committed to bringing value to our clients, the Wholesale channel continues to make waves in the market. We are ready to kick August into high gear with new product offerings, new pricing specials and great technology enhancements to our SNAP 2.0 system. If you’re a broker looking to sign up with a lender who has a 30-year track record of success, please email us.”

Spring EQ Wholesale, the 95% combo and 100% CLTV stand-alone, fixed rate home equity lender that pays LPC on every closed loan, is growing. Joining the team are the following Senior Account Executives: Amanda Saunders in the Southeast region, Andy Schmitt in Nevada/Texas, and Susan Feight in the Northeast region. In addition, we are announcing a webinar designed to show you, the originator and your company, how important a Home Equity 2nd mortgage product offering is to your overall ‘Customer for Life’ strategy. Competition is fierce and keeping your customers connected and thinking of you as a trusted advisor is hard work. Having a well thought out strategy for your past customers and their needs beyond a single transaction is more important today than ever before. Differentiate yourself and compete by partnering with Spring EQ Wholesale. You can view the webinar directly from Spring EQ Wholesale’s webpage. To contact Spring EQ Wholesale for more resources to make it easier to execute a second mortgage strategy please click here.”

PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), continues to look for opportunities to help reduce our customers costs as related to their warehouse funding needs. That is why we offer multiple incentive pricing options to reduce costs for our customers. Tiered Utilization Incentive Pricing allows our customers to set utilization tiers they are comfortable meeting with rate incentives that reduce their costs. Our customers can also take advantage of Deposit Incentive Pricing. PlainsCapital Bank offers a competitive line up of Treasury Management products and when our customers take advantage of those products, they earn rate incentives to further reduce costs. We are committed to building strong relationships with our customers and providing the service you need most.  If you are interested in learning more about PlainsCapital Bank National Warehouse Lending please contact Deric Barnett.”

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.

According to CSO Insights and the 2019 CMO Survey, less than half of loan officers use their CRM to increase sales, and only 36% of marketing executives can prove marketing ROI to the C-Suite using quantitative metrics. To solve these problems and help you create immediate ROI on your tech investments, Momentifi has created a mobile app that integrates with your current CRM and LOS. “The Momentifi App allows you to increase the applications and fundings from each marketing campaign by making it super simple for your loan officers to follow up without having to log into your CRM,” says Gibran Nicholas CEO of Momentifi. “Loan officers can send personalized text messages and videos to borrowers and referral partners that get logged into your CRM for compliance. The best part is that you only pay for the LOs and LOAs who actually use it.” Click here to schedule a demo.

CFPB rumblings

It was reported to me that since last June, the CFPB has been investigating a tiny Chicagoland mortgage lender for possible Fair Lending Violations. Recently, the DOJ opened its own investigation in the case leading some sources to conclude that the Bureau may be ready to take legal action. If it does, it may be testing a new legal theory of discrimination that harkens back to the FCC’s Equal Time Rule.

Based on what has been seen thus far, this Equal Time theory suggests that if a financial services company fails to provide an equivalent opportunity to every demographic or political group, then it may be considered guilty of redlining violations. At issue is the way the Chicago-based lender advertises its services and, apparently, expresses its conservative political viewpoints. The small lender apparently has its own radio show on Chicago’s AM560 The Answer, the same radio ration that features Sean Hannity, Jay Sekulow, and Hugh Hewitt. Does this constitute discrimination against listeners who don’t agree with conservative commentators?

An anonymous source confirmed that “an independent investigation of the lender’s HMDA data indicated that it was not an outlier and actually beat several larger peers.” The source said they were also scratching their head when they learned that an independent survey of Chicago African American residents revealed no perception of discrimination, leading them to wonder what was driving the case.

As one person sent to me, “If the CFPB moves against a small lender without the finances to oppose it, we could see a legal environment that requires banks, lenders, title insurance agencies, real estate brokerage, real estate agents, loan officers, attorneys, and others to spread out their advertising budget evenly based on demographics, political affiliation, religious affiliation, or other metrics that might be a proxy for a prohibited basis under fair lending laws, even into markets and media outside of their competitive strategy. Or worse, this could be a free speech issue in which corporations, owners, and executives cannot express any political beliefs the then-current administration finds objectionable. Will companies started pulling their ads from Fox News and The Wall Street Journal, and moving them to MSNBC and the New York Times?

“Seems incredible but consider the impact of conservative media losing half or more of its revenue just in time for the 2020 election cycle. It’s probably time to reach out to your Congressional representatives about this issue.”

The CFPB has updated its TILA-RESPA Integrated Disclosure (TRID) frequently asked questions to include items regarding provision of the Loan Estimate (LE) to consumers.

The questions outline the six required pieces of information that, once collected, begin the clock to run on providing the initial Loan Estimate: The consumer’s name, income, consumer’s social security number to obtain a credit report, property address, an estimate of the value of the property, and the mortgage loan amount sought. Once the six pieces of information have been received, the initial LE may not be held pending additional verifying information. Additionally, if the consumer is seeking to obtain pre-approval or pre-qualification and submits the six pieces of information, a LE is required to be issued. View the CFPB’s TRID frequently asked questions.

The CFPB issued an Advance Notice of Proposed Rulemaking on the definition of a “qualified mortgage” under its ability-to-repay/qualified mortgage rule. Morrison and Foerster tells us that the ANPR states that the Bureau does not intend to extend the temporary qualified mortgage (QM) classification for loans eligible to be purchased or guaranteed by Fannie Mae or Freddie Mac. This decision raises important regulatory and policy issues.

FHA, VA, Ginnie news & trends

On Tuesday, Aug. 6, at 2 p.m. Eastern, the Mortgage Bankers Association will be hosting the webinar, VA Underwriting for Military Veterans. The event features NewDay USA Chief Credit Officer Michael Oursler.

In case you weren’t around last week, HUD acted and its moves are, “designed to reduce risk associated with cash-out refinance lending. The changes preserve homeowners’ ability to convert home equity to cash via a government-sponsored mortgage but also improves the risk profile of HUD’s housing finance programs… the FHA will lower its maximum LTV requirements for cash-out refinance transactions from 85 percent to 80 percent. This policy change will be effective for loans with case numbers assigned on or after September 1, 2019 and aligns with the maximum cash-out LTV allowed by the Government Sponsored Enterprises (GSEs).” And Ginnie Mae issued All Participants Memorandum 19-05 (APM 19-05), which is the implementation of changes to pooling eligibility requirements for VA insured, or guaranteed, mortgages.

Ginnie Mae published a Request for Input (RFI) on the analytical framework it is developing to assess Issuer financial performance under a variety of economic environments to continue to monitor and support the sustainability of the Ginnie Mae MBS market. As outlined in the Ginnie Mae 2020 progress report, the development of this analytical framework and the publication of the RFI aligns with additional policy steps the agency has undertaken to ensure the strength and liquidity of Ginnie Mae’s counterparties. All responses to the RFI are to be submitted to Ginnie Mae at gnma.rfi.submission@hud.gov no later than 3:00 PM Eastern Time on August 31, 2019. The RFI may be viewed here.

Ginnie Mae posted changes to its requirement regarding the Trustee for a new HREMIC transaction effective as of July 31st 2019.

Last week FHA published Mortgagee Letter (ML) 2019-10, which announced the suspension of the effective date of Mortgagee Letter 2019-06, “Down payment Assistance and Operating in a Governmental Capacity,” until further notice. Mortgagees were advised to continue following the guidance published in the Single-Family Housing Policy Handbook 4000.1 regarding this matter.

Capital markets

Someone listened to LOs who prayed, “Just give me one more refi boom and I’ll retire.” U.S. Treasuries ended last week with yields on the 10-year note and the 30-year bond reaching their lowest levels since late 2016, though the much-anticipated release of the July Employment Situation report did not cause any waves in the market. The 10-year closed yielding 1.86% as rate cut expectations increased once again towards near certainty that another cut will take place in September. Economic releases Friday after the release of the commentary showed the final July reading for the University of Michigan Index of Consumer Sentiment missed expectations as economic uncertainty and trade uncertainty has inversely impacted consumers in addition to the fed. And Factory orders in June also missed expectations and will prove to be a drag in the second estimate for Q2 GDP.

This week brings a light economic calendar, but Fed speak resumes following last week’s decision, and the latest central bank decisions are due from the RBA and RBNZ. Today’s domestic calendar brings the final July Markit Services PMI, the ISM nonmanufacturing PMI for July, and the Employment Trends Index for July. Things pick back up tomorrow with JOLTS figures for June, the most important release of the week outside of Friday’s PPI figures. After news of China’s retaliation in the trade and currency war, further hitting world economies and stock & bond markets, we begin the day with Agency MBS prices better .125-.375 and the 10-year yielding 1.76%.

Ever wonder…

Why people go camping: where you can spend a small fortune to live like a homeless person.

Why are they called apartments when they are all stuck together?

If flying is so safe, why do they call the airport the terminal?

Why don’t sheep shrink when it rains?

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

Rob

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

Aug. 3: NMLS, Nevada lending law changes; the Fed rate cut; lender cybersecurity & ransomware news

Habla Espanol? No? How about someone in your office? Being bi-lingual is a good thing. Many Hispanics speak English, the official language of the United States, but I bring this up because Hispanic demand for housing is “en fuego” and is experiencing the largest homeownership gains of any minority group. Conversely, the Wall Street Journal reports that the U.S. Census Bureau states that, “For blacks, the homeownership rate has fallen to its lowest level on record…” Hispanics make up 18% of the U.S. population but accounted for 63% of the new U.S. homeowner gains over the last ten years. The WSJ article notes that, “Hispanic borrowers took out 9.4% of mortgages in the U.S. last year.” Some lenders, apparently, are using a tax ID number instead of a Social Security number. Hispanics also make up a large percentage of people in their 20’s and 30s, and if you need a good chart showing income based on age, here you go (thanks Brian B. for sending).

Cybersecurity & ransomware

What parent of multiple kids hasn’t heard, “It’s her fault!” “No it’s not, it’s his fault!”? Who is responsible for Capital One’s massive breach earlier this week involving data stored on Amazon Web Services’ infrastructure? It was purloined by a 33-year-old former employee of the web services company. So, Amazon’s got some exposure in all of this, right? Not likely due to contract law. But where did they go wrong?

Ransomware attacks? As announced previously in this commentary, Supreme Lending recently held a conference call during which nearly 100 owners, CEOs, CIOs, and CISOs of mortgage banks learned about how Supreme Lending was attacked and responded to a recent ransomware attack. During the call, Supreme explained the technical aspects of the attack, including how the hackers obtained access to the network, and then discussed the process of negotiating and paying the ransom through an intermediary that specializes in executing ransomware payments.

After that, Supreme shared how its Incident Response and Business Continuity Plan enabled it to respond effectively and quickly to the attack from both an IT and business perspective to get the company back up-and-running quickly. One of the most informative parts of the call included a discussion of lessons learned and takeaways from the experience. The call finished with a Q&A session during which Supreme’s IT and business leaders handled as many questions as time would allow. Following the call, founder and president of Supreme, Scott Everett, received many messages thanking Supreme for candidly sharing its experience in the hope that others in the industry would not have to go through the same experience. (For more information, contact COO Jeff Joyce.)

The US Federal Deposit Insurance Corp. and the Federal Reserve are potentially making themselves vulnerable to theft of sensitive financial data because they don’t have comprehensive views of their agencies’ cybersecurity weaknesses, internal watchdogs say. The FDIC inspector general has identified security control shortcomings, while the Fed’s inspector general has said decentralized information technology “results in an incomplete view of security risks facing the agency as a whole.”

Current notes on the current environment

Rick Bechtel, Head of U.S. Residential Lending for TD Bank, believes, “Mortgage rates are hovering near historical lows and it continues to make sense for many homeowners to consider refinancing. There’s a common misconception, however, that a Fed rate cut will have a direct and immediate impact on mortgage rates. It won’t. Mortgage rates are based on the treasury market which has already baked in an assumption of this upcoming rate cut, meaning any action coming out of the Fed this week is unlikely to directly impact mortgage rates. But this is not a well-understood concept, so we’re likely to see a spike in consumers inquiring about rates and eligibility for refinancing if a rate cut hits the headlines this week.”

And Jon Giles, Head of Home Equity Lending for TD Bank, observed prior to the rate cut, “The expected Fed rate cut would have a direct impact on borrowing through a home equity line of credit. Many HELOCs are priced based on Prime, which is the interest rate banks generally charge their most credit-worthy customers. If the Fed cuts rates this week, it would create a similar scale Prime rate cut – so borrowers with a Prime-based HELOC would see a lower rate on future statements. At the same time, consumers seeking affordable financing options could take advantage of the rate cut to take out a new HELOC at a very low rate.”

NMLS & Nevada state law changes

“Rob, for Hawaii, if an MLO is held responsible for any errors, what is the exposure for the lender? I’m assuming it opens the door for litigation against the lender as they’re the ones with presumably deeper pockets. Should lenders beware?”

I know little of about Hawaiian lending laws, so I turned to Ken Perry with the Knowledge Coop, who also teaches CE courses around the country, including Hawaii this month, for an answer. He returned with, “Oh definitely! Hawaii has one of the more aggressive regulators right now. Between the regulator and attorneys, companies will typically be looked at pretty closely if there is an LO who gets hit for a violation. Depending on the law violated, if the company can show that they provided clear policies, solid training and monitoring then they can likely make it out of many situations safely.”

Ken also mentioned that, “In a surprising twist in the mortgage education space, the regulator responsible for NMLS licensing and education sent an announcement out this week regarding Mortgage training institute, MTI. As it turns out they have been in a lengthy lawsuit over alleged copyright violations. The allegations include stealing the federal NMLS test questions to use verbatim in their test prep and pre-licensing education classes. NMLS course providers are warned at least annually of the fact that the questions are never to be reproduced in any way, especially to help people game the test. The company and trainers involved have been barred from being involved in NMLS classes for the next 5 years.

Nevada’s Senate Bill 220 amends online privacy policy law, effective October 1, 2019, to create a right for consumers to opt out of the “sale” of personal information collected over a website or online service. In particular, the Nevada opt-out right will not apply to a financial institution subject to the GLBA.

The Nevada online privacy policy law requires that “operators” of websites or online services must make available to consumers a privacy notice and establish a process through which a consumer may submit a request “directing the operator not to make any sale of any covered information the operator has collected or will collect about the consumer.

The Nevada opt-out right will extend only to the sale of personally identifiable information that was collected by an operator through a website or online service. The Nevada opt-out right will apply only with respect to “the exchange of covered information for monetary consideration” to a person who will license or sell that information to others. Essentially, the Nevada opt-out right is for the “sale” of information for purposes of allowing a third party to then resell such information. Moreover, the Nevada opt-out right is for more “traditional” sales, covering only the exchange of information for “monetary consideration,” and not also the “valuable consideration” covered by the CCPA.

The Nevada Department of Business and Industry, Division of Mortgage Lending has adopted several provisions regarding licensure by endorsement of escrow agents and agencies.

Section two of the amended regulation establishes standards for the licensure by endorsement of a natural person as an escrow agent or escrow agency. Section three states the duties of the Commissioner regarding application questions, Approval and Denial of an Application.    

These provisions are effective immediately.

Nevada has updated its provisions regarding the collection of personal information. Provisions in Senate bill 302, section 1, has added a provision concerning governmental agencies acting as data collectors.

Government agencies which collect and maintain records containing personal information of a Nevada resident must comply with the current version of the CIS Controls as published by the Center for Internet Security, Inc. or corresponding standards used by the National Institute of Standards and Technology of the United States Department of Commerce.

It must create and maintain a list of controls and standards to be adhered to by the State pursuant to any federal laws or regulations. This list must be made available to the public.

There is an added requirement to permanently remove any data stored on electronic waste prior to disposal of said waste. “Electronic waste” is defined as electronic equipment that for any reason has entered the waste collection, recovery, treatment, processing, or recycling system.

The Legislative Auditor’s audit reports must not contain any information that the he or she determines could potentially expose the State to a breach of security.

Nevada has modified several provisions regarding real property pursuant to Senate Bill 382. These provisions are effective as of October 1, 2019.

Section 1 of the bill adds additional definitions, including those for “noncommercial lender,” “proprietary lease,” and “residential foreclosure.” Many of these newly added definitions are found elsewhere in Nevada provisions regarding deeds of trust.

Under existing law, parties to a deed of trust may set out certain amounts for statutory covenants. Section 5 has been amended to specify the amounts that apply if parties fail to set these amounts. Under this new provision, if no amount is set out, the amount shall be the full replacement value of the buildings and improvements which are on the premises or which shall be erected upon the premises.

Section 23 of the bill prohibits a mortgage of real property from being deemed a conveyance for the purpose of enabling the mortgagor to take possession of the real property in the absence of a foreclosure sale or in accordance with a court order.

Nevada has modified several provisions regarding the licensing and regulation of certain short-term loans, high-interest loans, title loans, and installment loans, including adopting some of the provisions set forth in the federal Military Lending Act. The effective dates of these provisions range from October 1, 2019 to July 1, 2020.

Prior to making a consumer credit loan to a covered service member or a dependent of a covered service member, a licensee must provide the following information, both orally and in writing: 1) a statement of the annual percentage rate of interest on the loan; 2) any disclosures required by the provisions of the Truth in Lending Act; and 3) a clear description of the payment obligations of the covered service member or the dependent of the covered service member.

A licensee making a consumer credit loan to a covered service member or a dependent of a covered service member may not charge an annual percentage rate greater than the lesser of thirty-sex percent or the maximum rate provided in the federal Military Lending Act.

Another new provision requires the Commissioner to implement and maintain a database of all deferred deposit loans, title loans, and high-interest loans in Nevada, for purposes of ensuring compliance with existing state and federal laws. Licensees making such loans are required to report and update certain information through the database. The Commission must also establish a fee for the administration and operation of the database to be charged and collected from licensees using the database.

Lenders know that Nevada, Ohio, Michigan, Minnesota, Tennessee, Indiana, Virginia, Montana, Texas, and Vermont permit RON (remote online notarization). Earlier this year Idaho Governor Brad Little signed legislation (SB 1111) to enact RON in the state, which was closely followed by similar action this week in both Kentucky (SB 114) and Utah (SB-52) by their respective governors. North & South Dakota have enacted RON laws. The MBA reports that, “Language of each of these new laws follows the contours of the model state RON bill from MBA and the American Land Title Association (ALTA), which can be found on the MBA Remote Online Notarization Resource Center.”

(Thanks to Spencer D. for this one.)

A lawyer, who had a wife and 12 children, needed to move because his rental agreement was terminated by the owner, who wanted to reoccupy the home.

When he said he had 12 children, no one would rent a home to him because they felt that the children would destroy the place.

So he sent his wife for a walk to the cemetery with 11 of their kids.

He took the remaining one with him to see rental homes with the real estate agent.

He loved one of the homes and the price was right. The agent asked, “How many children do you have?”

He answered, “Twelve.”

The agent asked, “Where are the others?”

The lawyer, with his best courtroom sad look, answered, “They’re in the cemetery with their mother.”

MORAL: It’s not necessary to lie; one has only to choose the right words. And don’t forget, most politicians are lawyers.

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

Rob

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

Aug. 2: AE, LO, mgt. jobs; broker, U/W products; Freedom/J.G. Wentworth deal; vendor news; how ’bout dem rates!

The FHA & VA know a little something about risk, and don’t want to stick out too much from Freddie and Fannie, resulting in adverse selection. Lenders are buzzing about HUD’s actions “designed to reduce risk associated with cash-out refinance lending. The changes preserve homeowners’ ability to convert home equity to cash via a government-sponsored mortgage but also improves the risk profile of HUD’s housing finance programs… the FHA will lower its maximum LTV requirements for cash-out refinance transactions from 85 percent to 80 percent. This policy change will be effective for loans with case numbers assigned on or after September 1, 2019 and aligns with the maximum cash-out LTV allowed by the Government Sponsored Enterprises (GSEs).” And Ginnie Mae issued All Participants Memorandum 19-05 (APM 19-05), which is the implementation of changes to pooling eligibility requirements for VA insured, or guaranteed, mortgages.

Jobs

Stearns Wholesale Lending is in its 30th year supporting the Mortgage Broker community. “Hear from our customers about how Matt Helfrich, Yvonne Weiss, Charles Ryan and all our Account Executives create a ‘Personal Touch’ and put our brokers first. Stearns Wholesale Lending is poised for growth and prepared to serve the Mortgage Broker for another 30 years! For opportunities in this amazing Wholesale and Non-Delegated Correspondent culture, please email Melissa Richardson.”

PCMA is seeking an experienced WHOLESALE SALES MANAGER with a track record of success. “At PCMA, we’re building a unique company focused on Non-Bank Private Client Lending programs for the Mass Affluent (MAI) and High Net-Worth (HNWI). PCMA is positioned to dominate this highly lucrative client category. Private Client Lending in the Era of NQM. We are looking for that special someone who can contribute in leading this company to the top of our category and set the standard for how a Big Idea platform should be built. Are you a strong facilitator for the recruitment and development of team member talent? Lastly, are you bold in nature and looking to be a part of the next big idea; if so then we may be looking for you? Compensation commensurate with experience and capability. Send confidential resumes to staffing@pcma.mortgage.”

Citizens Bank is excited to announce Chace Gundlach as its National Sales Director for Retail loan officer channel. He will oversee production for over 600+ sales colleagues we have across the 28 states. With almost 30 years in the mortgage business and more than a decade with Citizens Bank, Chace has a proven track record of building high-performing sales teams. To find out how Citizens Bank and Chace Gundlach are winning in the mortgage marketplace and having a record breaking year, apply at Citizens Bank.

PRMG Retail continues to grow across the nation with the opening of 2 new branches in the month of July! Along with the drive and ambition to bring the American Dream of Homeownership to all cities across the country, PRMG opened doors in Elizabethtown, PA and Debary, FL! PRMG is Built by Originators for OriginatorsTM and is devoted to continuously growing its retail platform. Consistently ranked in the top mortgage companies throughout the country, PRMG is on its way to becoming a billion dollar a month company with over $700 million funded in the month of June. If you are a Motivated Loan Originator who wants to be Progressively Better, contact Chris Sorensen at 909.262.0452.

Lender products & services

Volly and Botsplash have formed a strategic partnership to provide lenders and borrowers with a seamless interaction across multiple messaging platforms. Botsplash, an omnichannel digital conversation platform, is now available exclusively on the Volly Platform suite of solutions. The strategic partnership allows for borrowers and lending agents (loan officers, processors, underwriters) to converse across multiple messaging channels, providing unified access to all engagements. The omnichannel service spans across email, SMS text, Webchat, Facebook and other social media platforms. “Borrowers are looking for product and service offerings supported on multiple sites and social media platforms,” said Jerry Halbrook, CEO of Volly. “Botsplash combined with the Volly Platform allows our clients to design complete end-to-end customer journeys, and to be able to communicate with consumers seamlessly with real-time messages across multiple platforms combining voice, email, text and social media into a single experience.” To learn more about how the Volly Platform can generate more closed loans, visit www.myvolly.com and schedule a demo today.

Freddie Mac Single-Family is ALL FOR building the future of home. Affordable lending is evolving and Freddie Mac is ALL IN on providing solutions that enable emerging populations to achieve the dream of HOME. We are changing perceptions by developing products and resources that drive real opportunities for businesses while creating a renewed sense of access for borrowers. Read an Executive Perspective from Danny Gardner, Senior Vice President, Freddie Affordable Lending and Access to Credit, that highlights the value of education and strategic outreach to overcome barriers to homeownership. In addition, don’t miss Freddie Mac’s take on The Future of Affordable Lending in Housingwire. Learn more about All For HomeSM, Freddie Mac’s approach to affordable lending, and discover key insights to inform your business and take advantage of solutions and tools that will further enable your borrowers to make Home Possible®. All in.  All of us.  All For Home.

Caliber Home Loans, Inc.is excited to announce its Wholesale channel’s latest partnership, CoreLogic® Credco®. This partnership has created a fantastic opportunity for Caliber’s Brokers to access 3-Bureau Merged Credit Reports. Caliber Business Partners who sign up get preferred pricing – at $24.90 per month – for all credit report transactions and access to the nation’s most popular merged credit report system. Upgrades and supplements to credit reports are also available. This offer applies to Caliber Business Partners in “approved” status. More details on the instant merge reports from CoreLogic Credco are available here. Business Partners can sign up directly with CredCo by visiting the website, or calling 866.774.3282. For additional questions about this partnership, Brokers can reach out to their Caliber Account Executive.

GSF Mortgage Corporation’s (GSF) Managing Director of the Construction Lending Division, Rudy Marquez, will be speaking at the upcoming Lenders One Summit in Seattle, WA. Rudy Marquez will be part of a panel discussion for the session ‘Diversifying Your Product Set to Drive Sales’ at 2:30 pm on August 6th. He will be discussing the benefits of Single Close Construction loans over traditional construction loans and how to incorporate Single Close Construction loans into your programs. GSF is a Lenders One preferred provider. If you are interested in learning more about GSF Mortgage Corporation’s Construction lending philosophy, products, or culture, please reach out to Managing Director of Construction Lending, Rudy Marquez.

Deal making

Sure, many potential sellers of residential lenders have gone back to managing their fundings and profit margins instead of looking for a buyer. Others are happy to “exit the arena.” In the latest example, Freedom Mortgage is acquiring J.G. Wentworth Home Lending. The juicy details were not released, but the purchase adds an additional 570 employees and 35 offices nationwide to Freedom Mortgage while boosting its mortgage servicing portfolio by $6 billion.

Pennsylvania’s J.G. Wentworth Home Lending originates more than $6 billion in annual mortgage volume with a good chunk in the mid-Atlantic region. But Wentworth is licensed in 46 states, and the District of Columbia, offering the usual conventional, jumbo purchase, government-insured FHA, VA and USDA loans through its retail channel.

Vendor news

Are there more vendors than lenders? Perhaps at some conferences! They’re rolling out some interesting products. Let’s play some catch up on random news in that sector. Always more to follow on another day.

Make sure you don’t miss the next power-packed webinar from the California MBA’s Mortgage Technology & Marketing Committee (MTAM). This month the focus is on how to use technology to build stronger borrower relationships: the “homebuyer engagement head start”. Presenters will explore the modern homebuyer journey and how loan officers can benefit from using technology to form stronger relationships with borrowers at each stage of the process. The webinar will be held on August 6th at 11 am, and will feature Casey Hughes-Wade of SimpleNexus and Ben Teerlink of MobilityRE, with John Seroka, Seroka Brand Development, moderating.  Click here to RSVP.

More than 1,000 mortgage lenders can now receive enhanced wire fraud protection thanks to the FormFree partnership with FundingShield. Wire Account Verification Service (WAVS) from FundingShield assures closing funds go to the right recipient’s verified bank account, reducing the risk of lost funds and closing delays for homebuyers, lenders, title insurance underwriters and realtors. FormFree will integrate WAVS into its Passport® all-in-one verification solution as a value-added service.

We have been hearing a lot about AppraisalVision by Theoris Software(The company was founded in 2016 by Jim Cutillo, the founder and former CEO of Stonegate Mortgage.) AppraisalVision is the first AI powered platform that can verify the value of a home at time of application. The platform manages both traditional and bifurcated appraisals, while providing lenders, AMCs, and appraisers predictive and comparative analytics that result in financial, operational and quality improvements. To see it in action, contact Jim Cutillo.

Lenderful Solutions rolled out its PreQual Express, an automated prequalification tool for lenders that allows borrowers to generate a prequalification letter and cc to the loan officer in less than five minutes. Lenderful creates a customized landing page for each loan officer that can be shared with realtors, past customers and prospects. The white-labeled tool is powered by the lender’s rates, programs, and qualifications, and is fast, easy-to-use, optimized for all devices and available 24/7 for $100/year and $20/month for each loan officer. Contact Elizabeth Conlisk or Michael Goyne for more information.

The Mortgage List, LLC, the most inclusive directory of all facets of the mortgage industry, announced its selection of Shred Media as their exclusive marketing agency. Shred Media will be responsible for all social media marketing management of The Mortgage List’s 1,500 plus vendors, online event calendar and podcast. The industry is seeing an increase in originators starting their own mortgage business and finding the vendors needed to start their operation is critical, Shred Media brings its expertise in social media management to help originators and vendors connect through The Mortgage List.”

Capital markets – cuz that’s where the capital is

Combine the Fed’s rate cut with the latest Trump tariff news, and the result is a huge bond market rally, most of which is based on the slowing impact of the tariff on the U.S. economy. The rate cut in response to global weakness, certainly not U.S. economic numbers nor Trump’s jawboning, but now it is more than jawboning. Using U.S. monetary policy as a tool to help foreign economies is not in the Fed’s job description. Critics ask if Trump is creating a problem that he will eventually solve.

Yesterday U.S. Treasuries across the curve posted lows for the year Thursday, the 2-year fell 16 bps, the 10-year fell 13 bps to 1.89 percent (the lowest since late 2016), and the 30-year fell 9 bps. That was due, in part, to President Trump announcing new tariffs of 10 percent on the remaining $300 billion of Chinese goods not already tariffed at 25 percent, and in part due to the Senate passing a bill suspending the debt ceiling for two years. Because the majority of the U.S. Treasury’s debt issuance is concentrated in bills, it had a drastic effect on levels of near-cash instruments. Lastly, both the ECB and President Trump voiced displeasure with Chair Powell’s hawkish ease on Wednesday. Rate cut expectations increased considerably, with the Fed Funds futures market showing above a 70 percent implied likelihood of a cut in September, which was just below 51 percent projected yesterday.

In Asia, North Korea and Hong Kong both increased geopolitical tensions through separate incidents, and economically China’s July Manufacturing PMI increased while Japan’s July PMI decreased, as did South Korea’s July Manufacturing PMI. And it was reported the 13th round of U.S.-China trade talks will happen in September. Eurozone’s July Manufacturing PMI beat expectations.

If anyone cares anymore, the highlight of today’s domestic calendar is the release of the July Employment Situation (payrolls) Report, which revealed stability. Nonfarm Payroll was +164k, in line with expectations, with a downward revision to June. Average hourly earnings were forecasted to rise 0.2 percent but were +.3%. The Unemployment Rate came in at 3.7%. We’ve also had the June trade deficit ($55.2 billion) near forecasts. Later this morning sees June factory orders and final July Michigan sentiment. The day begins with Agency MBS prices better by .125 versus Thursday’s close and the 10-year yielding 1.86%.

First world problems; part 5 of 5.

The lowest brightness setting on my iPad is still too bright to read in the dark.

Wes M. sent, “The wind blew some leaves in the pool, and the pool guy doesn’t come until tomorrow.”

My school banned girls from wearing yoga pants.

I forgot my old password, so now I have to reset it using an uppercase letter and a number.

I’d like to boycott Chick-Fil-A in light of their homophobic stance, but their food is just so good.

I accidentally drank some tap water.

(From Utah Jon Johnson offers a free Chick-Fil-A gift card to the first person who can reply with an accurate definition of “Second-World” and either (a) a list of 5 second-world problems, or (b) a list of 5 second-world countries. Write to him directly.)

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

Rob

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