Apr. 8: LO, mgt. jobs; 95%, HELOC, jumbo, non-QM, broker products; M&A rolls on

The move down in rates has sparked optimism about volume (and perhaps margins) out there. But mergers and acquisitions (M&A), and the details thereof, for many reasons, continue. For example, HomeStreet, Inc., the parent company of HomeStreet Bank announced an executed definitive agreement for Homebridge Financial Services to acquire the assets of up to 50 stand-alone, satellite, and fulfillment offices related to the Bank’s home loan center based single family mortgage origination business, and to make offers of employment to HomeStreet’s related personnel. (More details below, along with other M&A deals.)

Jobs

In Florida and the Southeast, a company is recruiting for a highly motivated, take-charge person who can aggressively recruit and lead a team. A large privately held mortgage company is looking for a Wholesale Regional Sales Director to manage a team covering 7 states in the Southeast, including Florida. “The ideal candidate will be required to have a focus on expanding our customer base and achieve sales quotas set by the company. Previous experience managing a sales team in this, or portions of this region is required.” If you are interested please send a confidential email to Anjelica Nixt for forwarding.

John Burns has joined ClearEdge Lending (Aliso Viejo, CA & Atlanta, GA) as VP of Sales to lead the company in its next phase of growth into the Southeast region. John brings 25 years of experience in the wholesale and correspondent mortgage lending channels including sales management and operations management with a long history of creating growth and profitability. “We are excited to enter the Southeast marketplace and provide brokers an excellent way to expand into Non-QM lending.” Alongside John, Don Brenneman will support the branch as Sr. Underwriter. With 31 years mortgage experience, Don looks forward to help shape ClearEdge’s advantage in the Non-QM space in the Southeast. Those interested in a growth-oriented career with ClearEdge Lending should email John Burns for outside sales positions in GA, FL, NC, SC, TN.

Embrace Home Loans is proving why well-supported, empowered loan officers and customer satisfaction go hand-in-hand. Embrace kicked off 2019 with National Mortgage News naming them one of the Best Mortgage Companies to Work For. Now, SocialSurvey has announced that Embrace is the #1 large mortgage company for Customer Satisfaction — for the second year in a row. In customer reviews, Embrace loan officers averaged nearly 4.9 out of a possible 5 stars. Nine of those loan officers made the Top 250 Originators list — and one was in the Top 10. As consumers increasingly research mortgage lenders and specific loan officers online, the top reviews Embrace receives are a testament to the company’s superior customer service and the level of support their sales team receives. Request a confidential conversation and learn more about Embrace’s unique culture.

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

BeAMortgageBroker.com.”

Lender services & products

Looking for a game-changing product to help you elevate your business and stand out from the crowd? On April 1st, (no fooling) Freedom Mortgage Wholesale introduced Freedom Flex – a new 95% Cash-Out solution. This unique “hybrid” program follows conventional product selection/loan processing requirements with FHA credit guidelines. Freedom Flex features a fixed rate 95% LTV/CLTV Cash-Out with a credit score of 640 or above for 1-4-unit owner-occupied primary residences only. Other winning features include a 50% DTI, no mortgage insurance requirements and no reserves for 1-2 units. Not available in Texas or New York. To learn more, contact Freedom Mortgage to connect with the Regional Vice President serving your territory.

Looking for non-QM solutions? Check out Plaza Home Mortgage’s new Solutions Non-QM program and new Bank Statement Income Calculation Service, where you can send a quick request from the Plaza website and they’ll review and calculate the monthly income for you before you submit your loan. Flexible income documentation—including 12 and 24-month full doc or 12 and 24-month personal or business bank statements—full doc DTIs up to 50%, interest-only options, new lower reserve requirements, expanded eligibility for all doc types, loan amounts from $100,000 to $2.5 million and easier to use guidelines matrices. For more information, contact hereforyou@plazahomemortgage.com

“Grow your broker business now! Impac Mortgage has the Non-QM product line, pricing, training and marketing tools you need to expand your business. How are we winning for our brokers? Product & Pricing: Our new Premier Series offers enhanced pricing on all of our Non-QM products and more buying power. Instead of 2 years’ tax returns, qualify more borrowers on our 12-month Bank Statement Program and our Investor Program that uses 1-1 DCR on subject property only. Check out our pricing tool, iPrice, to instantly calculate Non-QM rates on our various loan products. As your lending partner, we’re also your Marketing & Training partner too. We offer an arsenal of resources at your fingertips to help increase your business. Finally, we’re in immediate need for experienced Inside National Wholesale Account Executives to join Impac, a pioneer in the industry.” Contact National Inside Sales Manager, Jim Mitchell, for more information.

“loanDepot Wholesale is proud to announce the expansion of our proprietary Jumbo Advantage Program and the addition of a new non-QM program – Credit Advantage. Jumbo Advantage expansions include 95% LTV to $1,500,000 on fixed rate loans, cash-out to $500,000, 1-4 units on investment properties, and 7/1 and 10/1 ARMS now qualify at the note rate. The Credit Advantage program is a non-QM program with loans amounts starting at $150,000 up to $3,000,000. The program also goes to 90% LTV with expanded DTIs, allows for 4 years seasoning on foreclosures, non-warrantable condos eligible, and has 30- or 40-year interest only terms to 85% LTV. Both programs are proprietary and as such do not require any 2nd underwrites or investor approval. Our Jumbo Product Suite allows you to qualify more Borrowers and close your Jumbo loans faster. Contact your Account Executive today with questions!” Rates, terms, and availability of programs are subject to change without notice.

TCF Bank®’s Relationship Lending Unit is excited to announce “new broker compensation on our Stand Alone HELOC. Effective April 5, we will pay 1% percent of the line amount, but no less than $750 or more than $1,500 per Stand Alone HELOC transaction.

“With over $16 trillion in untapped equity, we understand how important it is for our valued partners to stay connected with past customers,” said Mark Zierott, SVP, National Sales Director at TCF. “Whether it’s a need for debt consolidation, home improvement, college education, or a down payment on a second home, customers can access their equity for what matters most.” Please contact your existing business development manager for more details. If you are currently not an approved partner, please email us at RLUCorporate@tcfbank.com. You can also visit tcfbank.com/brokerloans for more details.”

Caliber Home Loans, Inc. is showing its business partners how committed they are to the wholesale channel in a much bigger way! Beginning March 28, if Caliber is currently servicing the loan and your borrower is ready to refi or purchase a home, Caliber wants a chance to look at it first before you consider taking it elsewhere. On Caliber-to-Caliber loans that meet the parameters, Caliber will not only waive the appraisal fee with a credit back at closing and net escrow to the new loan, they will also waive the EPO fee (Applies to all loan products except Non-Agency Portfolio). It’s a win-win for brokers and their borrowers. There is no faster or better way to get it done. As EVP John Gibson says, “At Caliber we try to keep your borrower connected with you.” To learn more ways Caliber shows its commitment to wholesale, contact your Caliber Account Executive or reach out to newclientinquiry@caliberhomeloans.com to be connected to an AE in your local market.

M&A

“Homebridge has agreed to a purchase price of the net book value of the acquired assets (subject to adjustments) plus a premium, as well as the assumption of certain home loan center and fulfillment office lease obligations. In the event Homebridge realizes a certain level of loan originations for the twelve months following the closing of the Transaction, HomeStreet will be entitled to an additional payment of $1 million at that time. The Transaction remains subject to certain employee and branch office state licensing requirements and other customary closing conditions, and is expected to be substantially completed in the second quarter of 2019.”

But that’s not all! HomeStreet also announced that it has sold a significant portion of its single family mortgage servicing rights, namely single family mortgage loans held by or pooled in securities guaranteed by Fannie Mae and Freddie Mac with aggregate unpaid principal balances of approximately $9.9 billion, to New Residential Mortgage LLC, and the sale of mortgage servicing rights related to single family mortgage loans pooled in Ginnie Mae mortgage backed securities with aggregate unpaid principal balances of approximately $4.4 billion to PennyMac Loan Services, LLC. Together, these sales represent approximately 71.0% of HomeStreet’s total mortgage servicing rights portfolio as of December 31, 2018.

While we’re on banks and M&A, S&P Global Market Intelligence that finds the number of bank M&A deals closed over the prior 4 years are: 279 (2015), 241(2016), 256 (2017) and 259 (2018). That is a median of 258 per year or about 21 per month nationwide.

Why wouldn’t a bank want to buy another bank? A survey by Crowe showed that reasons included preferring to grow organically, too few or no viable acquisition targets in desired markets, management believes they will sell their bank, lack the capital or currency to acquire, concerned about the impact of an acquisition on bank culture, believe an acquisition would negatively impact bank profitability, and prices are too high.

Steve Brown from PCBB indicates that, “For bankers looking to acquire, the #1 attribute when the Fed was raising rates was to find a target bank with a cheap and deep deposit base. At the end of last year, about 71% said deposits were the most important factor, followed by branch locations in attractive markets at 53%. Now that rates have stopped climbing, the needle seems to be quickly shifting back towards concerns about credit and exposures around lending activities.”

Certainly the announced M&A during the last 2-3 weeks has continued unabated. In Connecticut Liberty Bank ($5.1B) will acquire The Simsbury Bank & Trust Co ($480mm) for $71mm in cash (100%) or about 2.0x tangible book. In Michigan ChoiceOne Bank ($667mm) will combine with Lakestone Bank and Trust ($616mm) in a merger of equals, where Choice will own 50.1% and County will own 49.9% of the combined company. In Iowa Midstates Bank ($401mm) will acquire Kingsley State Bank ($191mm), Security State Bank ($140mm) will acquire Peoples Savings Bank ($77mm), and Marion County State Bank ($310mm) will acquire Iowa State Savings Bank ($168mm).

In Missouri BTC Bank ($500mm) will acquire The Bank of Fairport ($18mm). In Joisey First Bank ($1.7B) will acquire Grand Bank ($198mm) for $19.4mm in stock (100%) or about 0.88x tangible book. In Mississippi Bank of Commerce ($477mm) will acquire Peoples Bank & Trust Co ($72mm). Out in California Mechanics Bank ($6B) will acquire Rabobank NA ($13.5B) for $2.1B. Mechanics (owned by Ford Financial Fund II) will acquire 100 branches and the retail, business banking, commercial real estate, mortgage and wealth management businesses (but not $4.8B in food and agribusiness assets).

Capital markets

U.S. Treasuries ended last week on a mostly flat note, rate-wise. There was the usual China/U.S. trade blather. As I mentioned Friday, the March Employment Situation report showed strong headline payrolls growth but average hourly earnings increased just 0.1% which is unlikely to prompt the Fed to reconsider its patient stance. Internationally, British Prime Minister Theresa May officially requested an Article 50 extension until June 30, meaning the U.K. will prepare to hold elections to the EU parliament in late May if a Brexit deal is not secured by May 23. Finally, we saw consumer credit increase in February, with credit growth rooted in nonrevolving debt, like car loans and student loans, while revolving credit (credit cards) expanded at a slower pace.

This week’s economic calendar includes updates on jobs, wholesale and retail inflation, the budget, import prices and Michigan sentiment with the minutes from the March FOMC meeting and an ECB monetary policy decision due on Wednesday. Additionally, there will also be many global policy makers in Washington D.C. at the end of the week for the spring meetings of the IMF and World Bank which will start Friday and run through the weekend. Today gets off to a relatively slow start later this morning with February factory orders and the March Employment Trends Index. The only other event markets will pay any attention to is the Fed holding an open meeting to discuss proposed rules implementing sections of the Economic Growth, Regulatory Relief, and Consumer Protection Act. We begin today with agency MBS prices roughly unchanged and the 10-year yielding 2.49%.

“Bob, why don’t you play golf with Glen anymore?” asked a friend.

“Would you play golf with a guy who moved the ball with his foot when you weren’t watching?” Bob asked.

“Well, no,” admitted the friend.

“Neither will Glen,” replied Bob.

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, “MBS Liquidity: A Real Trooper.” 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.)

Apr. 6: Fannie’s deals in the cap markets; technology: company offering & securitizing HELOCs through blockchain!

People in different positions in residential lending, like capital markets, IT, and owners, have different concerns. For example, MLOs (mortgage loan originators) are watching the MBA’s moves to correct LO comp, with an eye on either being able to give LOs the benefit of, or holding LOs accountable for, pricing mistakes, or LOs being able to adjust comp to match competitor’s pricing, all the while with an eye on avoiding steering and disparate impact.

Owners and senior management with a stake in the business are focused on keeping their business viable. There’s a lot of optimism out there, founded or unfounded, given the recent move in rates. Most business owners spend their entire professional lives starting, nurturing and growing their business. Then why do so many not put in the appropriate amount of care and effort when it comes time to sell the business? Read the article, “Give that pig a bath before you take it to market” written by CSH’s Scott McRill. Scott discusses 5 key steps business owners should take to get a better understanding of the true value of the business before taking it to market.

And on the IT side…

Blockchain

Although she hasn’t stated it outright, I know that my cat Myrtle is intrigued with the use of blockchain for tracking seafood procurement and sales. In the meantime, let’s look at some recent blockchain developments and news related to financial institutions.

Figure Technologies, a leading fintech company founded by former SoFi CEO Mike Cagney, is making big inroads with Provenance.io, the blockchain platform it built last year. Provenance is a permissioned, proof-of-stake protocol that acts as a global ledger, registry and exchange across assets and markets. Members include global financial institutions that act as stakeholders, originators, lenders, and buyers on blockchain. Figure has been an early adopter of Provenance.io, originating, financing and selling its HELOC loans entirely on the blockchain since July 2018 with over $100 million in volume to date. Figure, its warehouse lenders and loan buyers are reducing costs and improving liquidity through Provenance.io. Cagney’s speaking at LendIt on Monday so stay tuned for more news. (“Every day assets are originated, traded and financed on Provenance.” For more information for correspondents or brokers, contact Wendy Harrington.)

Big banks are implementing blockchain technology more quickly than small banks, a survey by UBS shows. The survey finds 73% of respondents from banks with more than $250 billion in assets are implementing blockchain, while 6% of respondents from banks with less than $100 billion in assets are doing so.

Blockchain technology is on track to upend the mortgage industry by giving underwriters and financial institutions the ability to access information they’ve never had access to before.

Recently, more than a dozen well-known online lenders like SoFi and Better Mortgage signed on to participate in testing a platform created by Spring Labs, a company looking to improve the security and efficiency of the credit reporting industry with blockchain. The platform aims to help consumers and mortgage lenders (among others) by facilitating the secure and efficient exchange of information directly with each other while maintaining the privacy of the underlying data. Spring Labs Co-Founder and CEO Adam Jiwan, who was a founding board member of Avant, a $5+ billion online lending company, thinks blockchain is going to completely change the competitive landscape of the mortgage industry and make lenders rely less on credit bureaus for information on borrowers.

Fannie action in the capital markets

This week the Senate confirmed Mark Calabria as the next FHFA Director. We can expect, among other things, some form of GSE capital retention but also continued support for GSE (government sponsored enterprises) Credit Risk Transfers (CRTs), which should be a tailwind for industry participants like PennyMac).

Freddie & Fannie continue to move forward with initiatives that aren’t directly reliant on political decisions. Good for us, right! Dan Fichtler, Director of Housing Finance Policy, for the Mortgage Bankers Association writes, “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. These programs have certainly benefited from the fact that they developed and grew in a period of strong economic growth and rising home prices. It will be interesting to watch how the programs evolve, the securities perform, and the investor base changes during a downturn. Moving forward, our hope is that CRT remains a permanent part of the GSEs’ business models, that the GSEs continue to pursue diverse structures (front-end and back-end; capital markets and institutional), and that offerings are designed in a way that maintains a level playing field.

Loan originators should know that transferring credit risk away from taxpayers to willing buyers help rates for their borrowers. What has Fannie Mae been up to lately in CRT, multi-family, and other issuances?

In late January Fannie announced that it has completed its eighth and final Credit Insurance Risk Transfer™ (CIRT) transaction of 2018, covering $12.8 billion in unpaid principal balance of 15-year and 20-year loans in Fannie’s existing portfolio. To date, Fannie Mae has acquired about $7.6 billion of insurance coverage on $307 billion of loans through the CIRT program. In CIRT 2018-8, Fannie Mae will retain risk for the first 35 basis points of loss on a $12.8 billion pool of loans, with reinsurers covering the next 150 basis points of loss on the pool, up to a maximum coverage of approximately $192 million if the $44.7 million retention layer is exhausted. A summary of key deal terms, including pricing, for this new and past CIRT transactions can be found at http://www.fanniemae.com/resources/file/credit-risk/pdf/cirt-deal-pricing-information.pdf.

On March 27, Fannie Mae announced the completion of a multi-tranche Credit Insurance Risk Transfer (CIRT) transaction covering a pool of approximately $11.7 billion of existing multifamily loans in the company’s portfolio. This new transaction, MCIRT 2019-01, is the first of 2019 and fifth CIRT transaction overall as part of Fannie Mae’s ongoing effort to increase the role of private capital in the multifamily mortgage market and mitigate risk for U.S. taxpayers. This is the company’s first three-tranche offering, and transfers $332 million of risk to reinsurers and insurers, making it the largest single transfer of risk in multifamily CIRT program history. Depending on market conditions, Fannie plans to return later this year with additional multifamily CIRT transactions. The CIRT program shares risk with diversified reinsurer and insurer counterparties and supplements the Delegated Underwriting and Servicing (DUS) program where originating lenders routinely share approximately one-third of the credit risk on multifamily loans. The covered loan pool for the transaction consists of 1,155 loans, secured by 1,155 multifamily properties, acquired by Fannie Mae from July 2018 through October 2018. Each loan has an unpaid principal balance of $30 million or less. Fannie Mae will retain risk on the first 75 basis points of losses on the reference pool. The C tranche will transfer risk to reinsurers covering losses between 75 basis points and 150 basis points. The B tranche will transfer risk to reinsurers covering losses between 150 and 275 basis points. The A tranche will transfer risk to reinsurers covering losses between 275 and 400 basis points. Finally, once the pool has experienced 400 basis points of losses, the credit protection will be exhausted and Fannie Mae will be responsible for any further losses. Since 2016, in addition to the risk retained by its DUS lender partners, Fannie Mae has transferred a portion of the credit risk on multifamily mortgages with an aggregate unpaid principal balance of more than $51 billion through its CIRT program.

On March 22, Fannie Mae priced its third Multifamily DUS REMIC in 2019 totaling $718.5 million under its Fannie Mae Guaranteed Multifamily Structures (GeMS) program. Fannie noted many GeMS investors were able to participate in this month’s transaction despite a week marked by heavy new issuance, a rate rally, and end-of-quarter portfolio constraints. A spokesman for Fannie noted the company’s ability to successfully resecuritize this production would continue to ensure access to capital for an important subset of borrowers. The three offered classes are as follows. Class FA has an original face of $200.5 million, a weighted average life of 6.29 years, a floater/AFC coupon of 3.014%, a spread of L+56 and an offered price of 99.79. Class A1 has an original face of $63.0 million, a weighted average life of 7.60 years, a FIXED coupon of 2.942%, a spread of S+48 and an offered price of even par. Class A2 has an original face of $455.0 million, a weighted average life of 11.76 years, a FIXED coupon of 3.610%, a spread of S+72 and an offered price of 102.99.

On February 5, Fannie priced a $960 million Connecticut Avenue Securities (CAS) REMIC transaction, its first credit risk transaction of the year for the benchmark issuance program designed to share credit risk on its single-family conventional guaranty book of business. Fannie Mae’s CAS program is the most actively traded credit risk transfer product in the market, and the new CAS REMIC structure marks the continued evolution of the CAS program, now allowing CAS notes to be issued as REMICs, making the product more attractive to market participants, including real estate investment trust (REIT) investors and international investors. Going forward, all CAS offerings will be issued as CAS REMICs. The reference pool for CAS Series 2019-R01 consists of more than 115,000 single-family mortgage loans with an outstanding unpaid principal balance of approximately $28 billion. The reference pool will include one group of loans comprised of collateral with loan-to-value ratios of 80.01 percent to 97.00 percent acquired from May through August 2018. The loans included in this transaction are fixed-rate, generally 30-year term, fully amortizing mortgages and were underwritten using rigorous credit standards and enhanced risk controls. With the completion of this transaction, Fannie Mae will have brought 31 CAS deals to market since the program began, issued $37 billion in notes, and transferred a portion of the credit risk to private investors on over $1.2 trillion in single-family mortgage loans as part of the CAS program. Since 2013, Fannie Mae has transferred a portion of the credit risk on approximately $1.6 trillion in single-family mortgages through all of its risk transfer programs.

Going back to the end of the year, Fannie priced its tenth Multifamily DUS REMIC in 2018 totaling $803 million under its Fannie Mae Guaranteed Multifamily Structures (GeMS) program. All classes of FNA 2018-M14 are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal. The multi-tranche offering has an offered price of 100.2 on $37 million and an offered price of 97.8 on $766 million.

On February 19, Fannie Mae priced its second Multifamily DUS REMIC in 2019 totaling $912.7 million under its Fannie Mae Guaranteed Multifamily Structures (GeMS) program. The creation of a new GeMS structure with an A3 tranche demonstrates the flexibility of the GeMS program to respond to reverse inquiry, while also keeping the program’s workhorse product – the A2 – available to investors. The structure details are as follows: Class A1 has an original face of $55.2 million, a weighted average life of 6.00 years, a coupon of 3.024%, and an even par offered price. Class A2 has an original face of $657.5 million, a weighted average life of 9.60 years, a coupon of 3.631%, and an offered price of 103.21. Class A3 has an original face of $200.00 million, a weighted average life of 9.74, a coupon of 3.48%, and an offered price of 101.94. All classes of FNA 2019-M2 are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal.

On March 20, Fannie Mae announced the results of its tenth reperforming loan sale transaction, which was announced on February 14, 2019 and included the sale of approximately 15,000 loans totaling $3.0 billion in unpaid principal balance (UPB), divided into four pools. The winning bidders of the four pools for the transaction, which is expected to close on April 25, 2019, were Towd Point Master Funding LLC (Cerberus) for Pools 1, 2 and 3 and NRZ Mortgage Holdings LLC (Fortress) for Pool 4. The four pools awarded are as follows. Group 1 Pool: 5,640 loans with an aggregate unpaid principal balance of $1,197,458,011; average loan size $212,315; weighted average note rate 4.31%; weighted average broker’s price opinion loan-to-value ratio of 87%. Group 2 Pool: 2,821 loans with an aggregate unpaid principal balance of $598,068,850; average loan size $212,006; weighted average note rate 4.29 %; weighted average BPO loan-to-value ratio of 86%. Group 3 Pool: 2,555 loans with an aggregate unpaid principal balance of $568,807,032; average loan size $222,625; weighted average note rate 4.15%; weighted average BPO loan-to-value ratio of 73%. Group 4 Pool: 4,028 loans with an aggregate unpaid principal balance of $638,767,104; average loan size $158,582; weighted average note rate 4.61%; weighted average BPO loan-to-value ratio of 75%. The cover bids, which are the second highest bids per pool, were 88.81% of UPB (65.05% of BPO) for pool 1, 88.81% of UPB (64.69% of BPO) for pool 2, 86.08% of UPB (56.56% of BPO) for pool 3 and 90.85% of UPB (54.10% of BPO) for pool 4.

A certain tax lawyer was quite wealthy and had a summer house in the country, to which he retreated for several weeks of the year. Each summer, the lawyer would invite a different friend of his to spend a week or two up at this place, which happened to be in a backwoods section of Maine.

On one particular occasion, he invited a Czech friend to stay with him. The friend, eager to get a freebie off a lawyer, agreed. Well, they had a splendid time in the country, rising early and living in the great outdoors.

Early one morning, the lawyer and his Czech companion went out to pick berries for their morning breakfast. As they went around the berry patch, gathering blueberries and raspberries in tremendous quantities, along came two huge bears, a male and a female. The lawyer, seeing the two bears, immediately dashed for cover. His friend, though, wasn’t so lucky, and the male bear reached him and swallowed him whole.

The lawyer ran back to his Mercedes, tore into town as fast has he could, and got the local backwoods sheriff. The sheriff grabbed his shotgun and dashed back to the berry patch with the lawyer. Sure enough, the two bears were still there.

“He’s in ‘that one!” cried the lawyer, pointing to the male, while visions of lawsuits from his friend’s family danced in his head.

He just had to save his friend. The sheriff looked at the bears, and without batting an eye, leveled his gun, took careful aim, and shot the female.

“Whatdya do that for!” exclaimed the lawyer, “I said he was in the other!”

“Exactly,” replied the sheriff, “and would you believe a lawyer who told you that the Czech was in the male?”

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, “MBS Liquidity: A Real Trooper.” 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.)

Apr. 5: Ops, LO, AE jobs; investor wanted; appraisal, construction products; lots of events; Agency changes

Some New Yorkers like to think that they’re at the Center of the Universe. But, though larger Java, in terms of islands, in Indonesia, is home to 135 million inhabitants versus Manhattan’s 1.7 million. (And although Manhattan does have about 125,000 hotel rooms, it is less than Las Vegas’ 152,000 and Orlando’s 150,000.) What about housing affordability? Even though some homes have become more affordable in the past year, based on income growth, home prices in more than 70 percent of the country are more than the average worker can afford. Brooklyn and Manhattan have a dubious distinction: The largest share of income to buy a home at 115 percent.

Employment & transitions

“Here we grow again! WesLend Financial is aggressively expanding its wholesale platform and is seeking highly motivated Sales Managers and AE’s nationwide. As a mortgage banker licensed in 41 states with aggressive pricing and extensive product offerings that go beyond the basics and includes Co-ops, Non-QM and much more, top producers find a steady flow of revenues along with one of the most competitive comp plans in the industry. Our Sales Mangers and Account Executives experience little to no overlap and have full access to all operational personnel including our underwriters. If you’re looking into expanding your book of business come to WesLend. You also will have access to hundreds of untapped brokers that we already have relationships with. But, it’s not just about full-service. It’s about outstanding service and support. If you are ready do more than simply set goals and are ready to be a part of the next generation of leaders and exceed your goals, contact Darryl Skinner.”

Thrive Mortgage made a name for themselves in 2018 as the first lender in Texas to complete a 100% digital mortgage closing (including an eNote) using a Remote Online Notary. “The ‘I’ in Thrive stands for ‘Innovate’,” according to Thrive’s CEO Roy Jones, a known visionary and forward-thinking leader. “Our nationally-recognized technology allows for a complete digital transaction to enhance the client experience, something we are very passionate about!” Clients, business partners, and mortgage consultants love the eClosing platform, developed in conjunction with Notarize. “When you’re in a room of 50 other lenders, and you’re the only one to raise your hand indicating that you can complete a 100% digital mortgage, it lets you know that you’re leading the charge regarding technological advancements,” stated Michael Jones, Thrive’s CFO. Thrive is growing again in key markets. For more information, please reach out to info@thrivemortgage.com.

Opus Capital Markets Consultants, LLC, (Opus CMC) leading provider of mortgage due diligence, a wholly-owned subsidiary of Wipro Ltd. (NYSE: WIT), a leading global Information Technology, Consulting and Business Process Services company, is seeking an Operations Manager for an outbound call center in Atlanta, GA. The candidate must have extensive knowledge of mortgage processing and origination functions and hands on experience with a dialer-based outbound loan processing call center. He/she will have a minimum of 10 years industry experience with proven results for driving the team to meet business objectives, managing large data and retaining records for future analysis. “Our industry continues to evolve and digitize, so given current market conditions, assisting our clients with methods to gain efficiencies through new tools while maintaining customer centricity is critical to our collective success.” said Pete Butler, Executive Managing Director/Business Unit Head, Opus CMC. For more information contact Tony Veasey.

MorVest Capital, LLC, announced the addition of Managing Director Larry Charbonneau. “Larry Charbonneau is a well-respected industry veteran with a formidable reputation in M&A. He pioneered valuation of mortgage companies and has successfully advised on over 90 M&A transactions. Larry perfectly complements our existing executive team and we are truly excited for him to join the firm,” said Mr. Fleig, CEO of MorVest.

Lender products & services

Congratulations to Frank Novak whom ACT Appraisal has hired as its new Coordinator/Account Executive. Frank comes as a seasoned individual in the AMC arena. Before he officially started with ACT, he was already strengthening business through his relationships he has developed over the 10 years in the AMC field. Frank has already increased ACT order volume since coming on board late December. He has a “can do” attitude and his customer service skills are held in high regard in this industry. “We are very excited at ACT Appraisal, and with Frank’s help 2019 is starting off on an incredible growth pattern.” To contact Frank, call 888-377-8901 x-3004, or email him at frankn@actappraisal.com.

There is a well-publicized dearth in affordable housing, particularly for low to moderate income homebuyers as well as potential homebuyers in rural markets. In response to this national housing shortage and as a premier underwriter of ALL government-backed loan products, Mid America Mortgage is excited to announce the formal roll-out of the “One-Time Closing/Construction to Perm” program for use with FHA, VA & USDA products, which allows for up to 96.5% LTV on FHA loans and 100% LTV on VA and USDA loans.

In recognition of the added complexities surrounding construction lending, Mid America has partnered with National Capital Funding, Ltd., which is widely recognized by FHA, VA and USDA as the premier construction funds administrator in the U.S. This partnership ensures a smooth & seamless process for builder approvals/interactions and construction/draw administration, even for LOs who are new to the product. Contact your local Mid America AE today for more details: https://mamtpo.com/wholesale-account-executives.

“The mortgage industry is selling homes, not hamburgers and French fries. So, why does this industry deliver one of the lowest retention rates of any category, as fast food companies boast the most loyal customers out there? With the proliferation of technology in the mortgage servicing industry, it’s time we capture the lifetime loyalty of a customer. Great technology provides great data and insights so your customers can have an amazing experience and you can maximize your portfolio and your business. The key is to make sure you partner with a subservicer who can deliver on that.” Take this Subservicer Health Check from TMS to determine where you and your subservicer stack up.

Attention FinTech investors and investment bankers. A mature, profitable and well-adopted Mortgage technology firm is seeking to raise $10M+ for rapid expansion purposes across banking and mortgage verticals to enhance the sales and prospecting capabilities of mortgage loan officers. Serious and interested investors may inquire by contacting Anjelica Nixt for a confidential discussion. Mortgage Technology Document Management firms, Mortgage Insurance, Institutional or private sources of capital are encouraged.

Events & learnin’

Sierra Pacific Mortgage is hosting a free webinar on Sierra Elite. This jumbo product is so hot, they are offering the webinar twice this month. Register for Tuesday, April 9 at 10:00 am PDT or Thursday, April 25 at 1:00 pm PDT. You will learn about some of the amazing features of this program and how it can help your next borrower purchase up to $3.0 million or one who needs a cash-out loan up to $2.0 million. This is the loan program for them, including self-employed borrowers. Register now.

On Friday, May 31st and Saturday June 1st, 2019, 55 mortgage company owners, managers and executives will join Ron Vaimberg in LA for Recruiting and Leadership Mastery. This is the only event of its type for you as a leader solely focused on mastering recruiting and leadership skills. If you are looking to attend a premier event that is dedicated to dramatically enhancing your skills to attract top originator talent, then this is the only event in the industry for you. Sign-up here before April 25 and save $600 using special code “Chrisman2”.

AIME is offering a Mortgage Expert Workshop in Ft. Lauderdale at the Diplomat Beach Resort on Wednesday, April 17 from 7:30am-530pm. Click here for the entire agenda and registration.

The Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, Federal Reserve, Farm Credit Administration, and National Credit Union Association will require the entities they supervise to accept certain types of private flood insurance policies and permit acceptance of others on July 1st. Register for the April 8th Buckley Webcast: New private flood insurance rules & recent flood litigation.

Register for MBA’s April 10thwebinar “UMBS and Your Business: Best Practices for Readiness”. Hear an overview of the Single Security Initiative and how it affects the mortgage industry, including what you’ll need to know to participate in the new marketplace. Upon completion, attendees will develop an understanding of how the Universal Mortgage Backed Securities (UMBS) impacts sellers, as well as the origination, servicing and the hedging process.

In Colorado CoAMP is hosting a luncheon with Rob Chrisman on Friday, April 19th from 11:00-1:00. Registration deadline is April 12th with limited seating availability. Sponsorship opportunities should be addressed to Cathy Brogan at PRMG (303.333.7333).

Genworth Mortgage Insurance’s That MI Guy, Steve Richman, and Customer Education Leader, Mary Kay Scully, will present at the Regional Conference of MBAs on Wednesday, April 10 at the Harrah’s Resort & Convention Center in Atlantic City, NJ. Steve will walk through a presentation on the current rates environment, understanding today’s consumers, creative ways to find them and how to establish profitable relationships with clients. Later Ms. Scully, the newly appointed Chairman of the MBA-NJ Women’s Committee, will hold the first committee meeting to reveal 2019 events including Rise Against Hunger and recruit new committee members.

To succeed in today’s mortgage market, you need to constantly be adapting and learning. The National Association of Minority Mortgage Bankers of America gives a fresh take on how to grow your mortgage operations in its power-packed CONNECT 19 conference, which offers professional development, training and networking. From the state of the industry to how to close the gender divide, NAMMBA’s CONNECT 19 conquers important topics and starts a conversation around key issues. Register HERE to join other top companies at CONNECT 19 in Atlanta from April 24 through April 27. Check out NAMMBA’s website for more information.

STRATMOR workshops

Could your executive team benefit from few days of focused discussion with other lenders on a specific functional aspect of your business? Good news for you — there’s still time to sign up for one of STRATMOR Group’s Workshops. STRATMOR is offering three of its popular workshops the week of May 5 at the Omni Mandalay in Dallas, Texas: the Consumer Direct Workshop, the CIO Workshop and the Operations Workshop. These lender-only workshops fill quickly and seating is limited, so register soon — early bird pricing for all three sessions expires Tuesday, April 9.

Fannie/Freddie/FHFA chatter

Yesterday the Senate confirmed Mark Calabria as the next FHFA Director. Of course he received the usual volley of congratulations from various industry organizations. The news was no surprise, but now what? With the recent Presidential Memorandum, we can expect negotiated capital retention and renewed efforts to end conservatorship, and a push to shrink the GSE footprints, probably starting with cutting back on cash-out refi, investor property, and second home exposures at the GSEs: Critics say they’re there to promote home ownership, not necessarily landlords or people using their homes as piggy banks. MI companies are watching closely but optimistic. Are you okay with increased loan level price adjustments for high balance conforming loans? I hope so.

Calabria will probably use the FHFA Conservatorship Scorecard release in November or December to implement key policy changes, but as Compass Point Research & Trading’s Isaac Boltansky points out, “Director Calabria will be forced to navigate the ideological divide between Republican GSE orthodoxy and President Trump’s growth agenda. FHFA Director Calabria will surely embrace policies intended to directionally reduce the role of the GSEs in the market, but our sense is that those changes will be tactical and measured as housing represents roughly 15% of GDP and economic growth remains paramount.”

Fannie Mae announced that Hugh Frater is its new CEO, setting the overall enterprise vision and strategic direction of the company. In addition to his role as CEO, Frater remains on the Board of Directors. Hugh previously served as Interim CEO. Congrats!

Fannie Mae’s policy on eligibility for non-U.S. citizen borrowers is available as a PDF to use as a reference guide.

Fannie Mae issued a reminder to Homeowners and Servicers of its Mortgage Assistance Options for areas affected by flooding in the Missouri River Basin. Under Fannie Mae’s guidelines for single-family mortgages, homeowners impacted by the Missouri River Basin flooding are eligible for payment forbearance of up to 12 months, during which time they will not incur late fees during this temporary payment break will not have delinquencies reported to the credit bureaus.

Freddie Mac confirmed utilization of its disaster relief policies for borrowers who have been affected by the spring flooding in the Midwest. Freddie Mac’s disaster relief options are available to borrowers whose homes or places of employment are located in presidentially-declared Major Disaster Areas where federal individual assistance programs are made available to affected individuals and households.

Beginning in June 2019, Freddie Mac will draft – via ACH transaction – principal and interest payments and payoff proceeds directly from the Servicer’s designated P&I custodial account. To authorize Freddie Mac to draft these funds, Servicers must submit Form 1132A, Authorization for Automatic Transfer of Funds from a Principal and Interest Custodial Account Through ACH, to Freddie Mac. View the full correctly completed sample Form 1132A here for further clarification.

Freddie Mac posted new and updated eMortgage resources which include updated FAQs that address common questions related to implementing eMortgages. Pre-recorded, self-paced webinars. Access to the Closepin database of closing agents that allows you to quickly locate agents who are ready to conduct your desired type of eClosing (hybrid eClosing, remote online eClosing).

Capital markets

The 10-year spent most of yesterday fluctuating between 2.50% and 2.52% which made for a rather boring, low-volume session ahead of today’s payrolls report for March. Hesitation in market movement was due primarily to that and back-and-forth reports discussing trade talks between the U.S. and China that continued in Washington. President Trump could possibly announce a summit date with President Xi. Speaking of Mr. Trump, he gave Mexico a one-year notice to curb flow of illegal immigrants and drugs across border, threatening implementation of tariffs on imported goods, namely cars. Separately, reports are that Trump is looking to name Herman Cain as Fed Governor.

Global growth concerns simmered below the surface following a disappointing factory orders report out of Germany, yet a report showing the lowest level of initial claims in the U.S. in 50 years aided belief that the U.S. economy is still faring relatively well despite economic issues abroad. The UK House of Commons narrowly passed draft legislation that would force Prime Minister May to ask EU for an extension to avoid a no-deal Brexit on April 12, as she has been unable to forge a new alternate Brexit plan with Labour leader Corbyn.

Today, we’ve received the March payrolls report (nonfarm payrolls +196k, unemployment rate 3.8%, hourly earnings +.1%). The only other market news of note will be February consumer credit and an appearance by Atlanta Fed President Bostic, both this afternoon. We begin today with agency MBS prices unchanged and the 10-year yielding 2.52%.

The next time you’re at a dinner party at someone’s house who has an Alexa, slip away and tell it, “Alexa, set 3AM alarm with horror movie sounds.”

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, “MBS Liquidity: A Real Trooper.” 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.)

Apr. 4: Capital markets, sales jobs; disclosure, FHA products; primer on servicing values

NASA has taken another step to make interplanetary living a reality, naming the top three finalists for its ongoing 3D-Printed Habitat Challenge. I am sure building something on the moon or Mars is expensive, and the taxpayer foots the bill. But here on earth, how do small and mid-sized builders obtain financing for their projects? Here’s a list.

Employment

(Check out the capital markets opportunity in the capital markets section.)

Producers at Caliber Home Loans, Inc. don’t have to say good-bye to their borrowers at closing because in addition to being one of the nation’s fastest-growing originators, Caliber services a majority of the loans it closes. This provides Caliber Loan Consultants and their borrowers with a major advantage over other originators, especially in today’s refinance market. To help draw refinance-eligible Caliber customers back to its originating Loan Consultant, they deploy credit triggers and personalize mortgage statements. These tactics give Caliber producers opportunities to retain pasts clients and keep the originating Loan Consultant top-of-mind. Caliber’s lender for life strategy is simply unmatched in the competition. Top-producing Loan Consultants who are interested in working for a leading lender that’s prepared to succeed in any market condition should email Jeremy DeRosa and can visit www.joincalibernow.com.

SocialSurvey, the leader in online presence and reputation management for the mortgage industry, is continuing its impressive growth across multiple verticals but still has a key role to fill for its mortgage team; the Regional VP of Business Development for the Southwest. If you have a proven track record of selling technology into the mortgage industry and reside in the southwest region, this is a unique opportunity to be part of an amazing growth story. Having recently closed their Series-A round funding, SocialSurvey is just getting started. Make sure you don’t miss out, send a confidential resume and contact info to nabby@socialsurvey.com to learn more.

On Q Financial has launched the industry’s first fully operational Spanish, Russian, Simplified Chinese, and Vietnamese websites complete with mortgage calculators and videos. Critical loan documents including Loan Estimates and Closing Disclosures are available in all four languages to support On Q’s Originators as they create trust and transparency for their clients. At On Q, The Dream is Inclusive™If you’re ready to join the most  innovative and passionate team in the industry, please contact Nick Suwanvichit or visit On Q Financial Careers.

Are you a retail loan originator, retail branch manager, direct lender or banker? Tired of losing clients and the up and downs at your retail shop?  Have you considered making the move from retail to independent? BeAMortgageBroker.com can help. We are your single, no-cost source for the information, support and tools you need to become an independent mortgage broker. We can help you take the next steps toward opening your own mortgage broker shop or help match you with an independent mortgage broker in your area. Call us for a free, confidential consultation and continued support throughout the process at 800.229.6342 or learn more at BeAMortgageBroker.com.

Planet Home Lending is excited to share that in Q1 2019, we experienced 13% growth in our retail branch network, thanks to our retail leadership team’s experience and our operations team’s “can do” philosophy.  Adding further to our proposition value, Planet is partnering with XINNIX Mortgage Academy Sales and Leadership Performance Programs to offer all originators the best training, accountability and coaching in the industry to take their careers to the next level. Free of financial legacy issues, Planet remains committed to growing its retail branch network across the country. Planet MLOs have the tactical-edge technology to meet consumers, whether online or in person. A true no-overlay credit policy on government products, no minimum credit score on FHA/VA and manual underwriting allow our MLOs to expand market share and say “Yes” to more consumers. See what you could accomplish with the right tools: Visit www.LandAtPlanet.com.

Amerifirst Home Mortgage, a division of Amerifirst Financial Corporation, announces that its elite mortgage lending team is growing with the addition of Michael Lassiter, a 20+ year mortgage industry veteran. As manager of the Raleigh Area, Michael will work to expand Amerifirst’s footprint in the Carolinas by carrying out the 35-year-old mortgage company’s mission to make a meaningful difference in the lives of others. Michael’s exceptional work ethic, authentic character and strong track record exemplifies the caliber of talent for which Amerifirst is known. Amerifirst Home Mortgage is a community mortgage lender with more than 30 years serving the real estate market. Amerifirst employs over 700 team members and provides home financing opportunities for thousands of homebuyers each year, especially in rural and underserved communities and among first-time homebuyers. Michael Lassiter NMLS# 116890. NMLS# 110139. Equal Housing Lender.

Have you been able to attend American Pacific Mortgage’s Spring Sales Summit yet? We’ve been on the road for the last month on our multi-city tour and are wrapping up in Seattle/Bellevue, Washington on April 9th and it’s your LAST CHANCE to attend!  The jam-packed agenda and breakout sessions are designed to provide you with inspiration and strategies to elevate you and grow your production by creating experiences that matter.

Discover first-hand how APM operates and commits to supporting Originators. Click here for a video to give you a sneak peek at what Summit is all about. For qualified candidates that want to take a serious look, we will cover the cost to get you there!  Click here to register or contact Dustin Block at 303.378.3166.

Lender products and services

Altisource® recently launched its FHA bundled product, offering comprehensive and customized asset management services utilizing the Altisource suite of servicing products. At the center of this offering is an FHA modeling tool, which allows servicers to accurately project costs and determine marketing strategy to reduce losses on properties. Features include actionable data and insights that empower decision-making for the entire asset portfolio and end-to-end data transparency throughout the CWCOT asset disposition process, with customizable Field services triggering the analysis model at key points. The FHA bundled product is a better solution for any size FHA servicer needing to support and prepare for a growing FHA portfolio. Download this FHA Bundled Product brochure to learn more.

SimpleNexus has just launched its new disclosure solution, delivering a full end to end digital mortgage solution for lenders. This new disclosure toolset seamlessly presents disclosure packages and enables borrowers and loan originators to eSign in the mobile app or online and includes automatic disclosure tracking within the LOS. Watch our new Disclosure Video and get a demo for SimpleNexus Disclosures.

Name change

Colorado State Bank & Trust Mortgage and Bank of Arizona Mortgage have officially changed their name to BOK Financial Mortgage, in order to better align themselves as a regional banking presence. The recent acquisition of CoBiz Financial (Colorado Business Bank/Arizona Business Bank), represented a unique opportunity to unite under the BOK Financial brand. “When it comes to furthering our state, it’s not just business, it’s personal. This is the force behind merging two of Colorado and Arizona’s most trusted banks – to give you a financial partner that not only offers local decision making but the regional power and strength to keep pace with the growth in these two states.”

Servicing primer

The industry is still grappling with the servicing valuations forced on us by Basel III. But let’s take a basic look on how servicing is valued – it is not quite as simple as a company telling auditors and regulators the value. Everyone says, “Oh, Fannie Freddie .250 servicing is trading at a 4 multiple, which means 4 (multiple) x.250 (servicing fee) = 1 point.” Or put another way, if a FNMA loan that has 25 bps of interest, its value can be expressed as a 4 multiple or 100 bps. But what makes for that “4” servicing multiple? It can simplify things to think of that number as the number of years, or “duration” the asset takes to pay off. First, some background.

A mortgage servicing right (MSR) is a strip of interest from the loan, and based on accounting rules, becomes an asset when a mortgage loan is sold servicing retained. The strip of interest is paid to the servicer to perform the servicing duties based on the investor guidelines, namely, the collection of payments on the mortgage loan and the distribution of these payments to the appropriate authority.

The fair value of the MSR asset is driven primarily by the strip of interest. We know that as interest rates increase, refinance activity goes down, thus making the value of servicing portfolios increase as the duration of the servicing assets (the number of months the servicer will be able to collect payments) increase. As servicing values move directionally with interest rates, if interest rates decrease, the value of the servicing portfolio decreases, as more loans are likely to be refinanced and paid off.

The value of servicing is the net present value of the servicing revenue components less expenses, adjusted for expected prepayment speeds and is expressed as either a multiple of the service fee or as a percentage of the UPB. Prepay rate (remember, this is an estimate that is subjected to shock analysis of a specific portfolio), the inverse of the assumed life of the asset (in years), is the biggest driver of the multiple, and that figure is based primarily off interest rate. For this reason, prepayment models require constant monitoring and calibration.

Let’s say the borrower pays a 4.75% interest rate, and that loan is assigned to a 4.00% coupon, the gross servicing fee would be the difference, or 0.750%. GSEs charge a Guarantee Fee to ensure the value of the loan in case of default. So if this Gfee was 0.500%, the service fee would be the remainder, or 0.250%. But now how to determine the multiple to get to that 100bps of value in this example.

Simply put, if you wanted to calculate the multiple figure yourself, you would do an NPV calculation using the prepayment rate as your discount rate and the sum of your net values between servicing revenue and expenses to arrive at a fair value. If you then took that fair value and divided it by the loan amount and that figure by the servicing fee, it would give you a multiple. Now remember, this is a trial and error process that is more useful for shock analysis than exact determination. As such, valuation of the MSR portfolio policies and procedures for the establishment of the fair value and should include a quarterly review of valuations as they compare to external market data, market trades, third party valuations, reconciliation of expected versus actual cash flows, etc. This is why the companies doing MSR valuations are able to stay in business: They maintain much more historical data than one IMB could obtain, and thus provide more accurate predictions.

Capital markets

Compass Analytics, a leading provider of mortgage pricing and risk management analytics to financial institutions nationwide, is actively seeking an experienced capital markets candidate in midtown New York to serve as Pipeline Risk Desk Manager. This person will lead a team of account managers and contribute to the further development and delivery of our industry leading technology. Candidates must possess hands-on experience in hedging pipelines, trading, pull-through modeling, best execution, profit/loss and position reconciliation, rate sheet creation, margin management strategies and PPE solutions.  The role also the requires the ability to engage with multiple clients and lead account managers in delivering exemplary customer service. For more information about this unique opportunity, please click here to see a detailed job description and to submit a resume.

The first quarter of 2019 has come to a close and by most accounts economic activity has been soft compared to last couple of quarters. Expectations for declining growth in the first quarter were only reinforced with the downward revision of fourth quarter GDP to +2.2 percent. Many expect the growth in the first quarter to dip below the 2 percent mark due to the effects of the government shutdown, weaker global economic conditions, as well as geopolitical uncertainty surrounding trade with China and Brexit. U.S. income growth rose a mere 0.2 percent in February after a 0.1 percent decline in January but consumer confidence remains at high levels. Inflation continues to remain near the Fed’s target as prices. The soft economic news has caused the yield on the 10-year Treasury note to fall below the yield on the three-month T-bill. While this has stoked headlines around a potential recession, it is important to keep in mind that not every inverted yield curve has been followed by a recession. The current softness is following a relatively strong position where high employment growth and low unemployment have strengthened household balance sheets.

Looking at rates, driven by the bond markets, Wednesday saw a “curve steepening” action for Treasuries, including the 10-year closing +4 bps to 2.52%, after Treasury futures slumped Tuesday evening in response to an official at the U.S. Chamber of Commerce saying trade talks with China are entering an “end-game stage.” The same official said that 90% of the deal is done, but the remaining ten percent is the hardest part. Trade talks, better than expected service PMIs and a potential path forward in Brexit all helped move Treasuries and agency MBS. European Commission President Jean-Claude Juncker said the EU will not grant a short-term extension of Article 50 if the British Parliament does not approve Prime Minister May’s Brexit deal before the next meeting of EU leaders on April 10.

Today’s calendar got under way with a couple labor market indicators ahead of tomorrow’s payrolls report. First up were March layoffs from Challenger, Gray and (). We have also had weekly jobless claims for the week ending March 30. Initial claims () continued claims (). Today also sees three scheduled Fed presidents speaking, New York’s Williams, Cleveland’s Mester and Philadelphia’s Harker. We begin today with agency MBS prices and the 10-year yielding.

Thank you to Lisa M. for this short video reminder that while going paperless works in some cases, sometimes it doesn’t.

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, “Changes in the role of the LO and Their Compensation.” 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.)

Apr. 3: LO jobs; outsourcing, marketing, broker products; non-conforming & jumbo trends

Anyone traveling near San Francisco may have seen “The Flintstones House” perched on a hill next to the freeway. Neighbors don’t like it. But I guess my mind is officially warped as all I can think of is, “How does an appraiser handle this oddity?” Speaking of odd things, California is opening an office in Boise, Idaho to help its former citizens adapt to Idaho. Yup, folks are leaving CA due to the 13% state taxes, congestion, and political trends. (Besides, lots of folks from all over the nation are heading to Idaho.) Yet back in CA, it is growing, and near Sacramento there are plans to build another 11,000 homes.

Employment & transitions

Arriba! Arriba! Academy Mortgage recently returned from the company’s President’s Club and Executive Club Sales Conference in Los Cabos, Mexico. Old friends met new faces, as Academy welcomed more than a dozen first-time attendees. President James MacPherson facilitated the sharing of best practices in the General Session, before attendees departed for popular off-resort excursions like deep-sea fishing, whale watching, zip-line adventures, ATV trips, and sunset cruises to see the famous Land’s End Arch. Every conference’s Awards Dinner has a different theme, and pirates abounded at this year’s event to celebrate their mateys’ achievements in the previous year, including the presentation of the Duane Shaw Achievement Award, Academy’s highest honor, to Sales Manager Tera Davis. Watch a recap video of Academy’s Los Cabos Sales Conference. Academy is headed to Israel and Oahu in 2020. Contact Chad Melin, VP of National Business Development, if you are interested in joining.

Sales coaching can change the trajectory of a loan officer’s career. Ask Movement Mortgage LOs Tiffany and Joseph Spell. Now perennial members of Scotsman Guide Top Originator lists, the Spells worked with Movement National Director of Sales Coaching Tim Davis to transform their business, going from rock bottom to President’s Club in just two years. Watch their story here and learn more about how Movement is committed to empowering both leaders and originators with tools like coaching, technology and marketing to increase business at MovementLO.com.

PRMG retail is seeing tremendous growth as it expands its national footprint by opening 7 new branches during the month of March! Along with the drive and ambition to bring the American Dream of Homeownership to all cities across the country, PRMG has now opened its doors in Stuart, FL; San Pedro, CA; Burnsville, MN; Dadeland (Miami), FL; Annadale, VA; Thousand Oaks, CA; and Fairfax, VA. Ranked No. 1 for mortgage companies employing over 500 employees by Mortgage Professional America (MPA), Voted TOP 5 of the 50 Best Companies to Work for in America, NMP Visionary Organization 2017, CAMP Corporate Affiliate of the Year 2017, TOP 25 of 100 Mortgage Companies in America and MORE! PRMG is Built by Originators for OriginatorsTM and is devoted to continuously growing their retail platform. If you are a Motivated Loan Originator who wants to be Progressively Better, contact Chris Sorensen (909.262.0452).

Lender Price announced that David Colwell, EVP of business strategy, and Linn Cook, SVP of marketing and sales, are joining its management team. David will oversee all aspects of revenue generation, strategic planning, business partnerships and financial forecasting. Linn “will draw on his successes in credit reporting, PPE and mortgage LOS technology to drive revenue and increase visibility of the Lender Price brand.”

Lender products and services

Home Point Financial has just enhanced its proprietary Home Point Edge Non-QM lending platform with the introduction of its new AUS Express product. With the arrival of AUS Express, brokers can leverage DU findings for self-employed borrowers using bank statement income for qualification purposes. The Edge AUS Express product has a max LTV of 85% LTV up to a $2MM loan amount and is capped at 50% DTI. The Home Point Edge suite of Non-QM products continues to provide extremely competitive rates, a 95% Jumbo option w/ no MI for well-qualified full doc borrowers, 90% purchase options for self-employed consumers, asset utilization loans, non-warrantable condos and so much more. To find out how you can get an Edge on the competition or become a Home Point partner, click here.

Stearns Wholesale has an unrelenting commitment to providing its brokers with a full range of products and superior service, including the addition of CalHFA loan program. As an approved lender with CalHFA, Stearns is well-versed in the benefits of each mortgage and the program requirements. Stearns continues to add new product offerings to help you grow your business. Hear from one of Stearns’ own: RVP, Erin Futterer talks about the importance of a support system. Watch here: https://www.youtube.com/watch?v=fxEixDHGCUs

Flagstar Bank aims to make brokers more competitive than ever with enhancements to its pioneering Loantrac LOS, partnerships with industry leading POS/LOS systems provider Arive, and integration with Calyx. Updates to Loantrac 2.0 improve speed and make working with the platform more intuitive, especially at closing. A new customizable dashboard allows brokers a holistic view of their pipeline, and a seamless document management and delivery system simplifies collaboration. Flagstar’s Arive and Calyx integrations honor its intention to be platform agnostic and deliver on broker operational efficiency. Flagstar plans to expand its integration with Calyx as part of the NAMB All-In solution, while the Arive partnership allows for an all-digital mortgage “ecosystem” experience with a single sign-on, adding ease and efficiency. All of Flagstar’s technology improvements and strategic partnerships are intended to strengthen brokers’ competitive advantage in an increasingly dynamic market.

Stop Losing Money in 2019! With the mortgage industry becoming increasingly difficult to survive let alone thrive, companies are in search of new marketing strategies to compete in this new era of credit. “The Decision Science team at BBM has created an advanced suite of propensity data models that help professional origination marketers identify homeowners who are actively in the market for FHA, VA, Jumbo and Non-Agency loan options. Our average loan amount for active FHA/VA and Non-Agency applications exceed $350K and gross top line revenue of nearly $15,000. If you’re marketing is not reaching these levels of performance than let BBM show you how a targeted marketing strategy focused on propensity modeling and targeted revenue opportunity can change the trajectory of your company.” For more information about BBM Marketing Services and about becoming an approved origination partner; please contact Bill Senteno and visit www.bbm.company.

Name changes

ISGN Solutions recently changed its name to Sourcepoint, a significant step in the brand’s evolution. It’s also transforming into a “product”-led solutions company from ideation through conceptualization, creation, delivery and education. For example, Sourcepoint’s Business Process Outsourcing services utilize a flexible model that allows lenders to select solutions based on their unique challenges and operational requirements. Today, Sourcepoint’s global solutions support lenders across Retail, Consumer Direct, Wholesale, and their Correspondent channels, along with post-close and shared services functions. Sourcepoint also supports forward and reverse servicers throughout the loan lifecycle, from loan-boarding, to cash, investor reporting, through loss mitigation, claims, foreclosure and bankruptcy along with other functions. Sourcepoint’s solutions span the mortgage lifecycle and are delivered through an onshore, offshore or hybrid delivery model that’s designed to meet lenders and servicers needs, resulting in increased compliance, customer satisfaction and profitability. Learn what Sourcepoint can do for your lending operation here.

Wholesaler and retailer Ethos Lending is transitioning to One American Bank and its third-party origination channel will be operating under One American Mortgage. “All of our current systems and technology will continue to operate as is and just be transitioned to One American Mortgage. Starting April 2, 2019, please login to www.oneamericanmortgage.com. You will be able to access your current loans with Ethos and all new loans with One American Mortgage in the current Ethos Lending Broker Portal. The website will just be re-branded to One American Mortgage. All current float loans will have to be resubmitted starting Tuesday, April 2, 2019, to One American Mortgage. All Locked loans as of Monday, April 1, 2019 will fund with Ethos Lending.

Jumbo & non-conforming trends

Without a 52 basis point gfee built in to pricing, of course jumbo or portfolio product rates will be more attractive for some programs than conventional conforming. Let’s see who’s doing what.

loanDepot Wholesale’s proprietary Jumbo Product Suit does not require investor approvals or 2nd signature underwrites. View its Products Page. It does not require investor approvals or 2nd signature underwrites. Click here to view its products page and then contact Carla Meyers for more details.

The LoanDepot Wholesale/Correspondent weekly “what’s new” announcement for March 8th includes topics related to expansion of the Jumbo Advantage program, its new program Credit Advantage, 4506T reminders and Broker Compensation of $0.

PRMG Mortgage retired its Silver Medal Jumbo product. Any loans that were locked under this program will be able to be funded but no extensions will be granted. It is now offering in-house delegated underwriting on the Platinum and Diamond jumbo products. The Platinum and Diamond jumbo products are now completely delegated up to the maximum loan amount and will only be subject to an in-house second level review.  As a reminder, all jumbo and non-conforming products are underwritten by the corporate jumbo/non-conforming underwriting team.

Effective April 16 Wells Fargo Funding is updating its requirements for alimony and separate maintenance (payments and income) on Non-Conforming Loans.

The previously announced implementation date of Wells Fargo Funding’s policy expansion allowing co-ops and second home cash our refinances for non-conforming CCU loans has been pushed out to an effective date of March 18th, 2019.

Late last year Wells Fargo discontinued its Non-Conforming Preferred Payment Plan product line(s). As a result, these products were no longer be offered in the Optimal Blue system. Customers utilizing this content for proprietary products have six months from 10/29/2018 to reconfigure eligibility/adjustment sourcing. The preferred payment plan feature/pricing is now incorporated into the standard non-conforming products. So Wells is no longer requiring enrollment in the Preferred Payment PlanSM to receive improved pricing and reduced interest rates on Non-Conforming Loans. All pricing and the borrower’s interest rate will be the same whether enrolled in the Preferred Payment Plan or not. Wells continues to encourage borrowers to set up automatic withdrawal for their Loan payments.

Plaza Wholesale improved the CLTV adjustments for FICOs < 760 on its Simultaneous Closed-End Second Lien program, effective for locks on or after March 5, 2019. Also, new rate adjustments have been added for DTI > 43%. Plaza also announced the removal of LTV and Reserves price adjustments on its AUS Non-Conforming program for new locks effective immediately. The result is improved pricing for all loans with less than 16 months reserves and no change to loans with greater reserves.

MWF borrowers are no longer required to enroll in the Preferred Payment Plan in order to receive improved pricing on an MWF Jumbo 2 loan.  Improved pricing is available on all MWF Jumbo 2 loans without enrolling in the Preferred Payment Plan option.

The mortgage market might have borrowers feeling limited especially with higher priced homes. Angel Oak has an array of options including its Platinum Jumbo product which now offers LTV to 95% with no MI. Visit the Angel Oak website for more information.

The mortgage market might have borrowers feeling limited especially with higher priced homes. Angel Oak has an array of options including its Platinum Jumbo product which now offers LTV to 95% with no MI. Visit the Angel Oak website for more information.

Conforming high balance loan amounts are doable using LHF’s Jumbo Elite Product. Contact Mark Sheridan at 925-246-2396 for details.

United Wholesale Mortgage has introduced its Jumbo Bank Buster program available on loan amounts up to $1.5 million and an 80% LTV, for borrowers with 700 minimum FICO. It can be used for primary and second homes and on purchases or refinances.

Bank of America is offering jumbo loans up to $5 million.

Capital markets

U.S. Treasuries took a pause on Tuesday from their recent volatility with the 10-year closing yielding 2.48%. Sure, as always there was some price movement between coupons, securities, and maturities, but nothing of great consequence. Looking at rate sheets, mortgage rates are now near their lowest levels in over a year with the spring-time home buying season under way.

This morning we learned that last week’s retail apps were up over 18%, with refis up 39% hitting their highest level in over three years. (Purchases were up 3%.) The MBA reported that the average refinance loan size was $438,900, a new survey record, and the refi share of mortgage activity increased to 47.4 percent. Interestingly the adjustable-rate mortgage (ARM) share of activity increased to 9.5 percent of total applications.

Besides apps we’ve had ADP employment (+129k, weaker than forecast). ISM nonmanufacturing PMI will be released at 10AM ET with both the headline figure and Business Activity components expected to decline from the previous reading. We have a decent amount of mid-week Fed speak, with Atlanta Fed President Bostic, Richmond’s Barkin, and Kansas City’s George, and Minneapolis President Kashkari all taking the stage at some point today. We begin today with agency MBS prices worse a solid .125 and the 10-year yielding 2.51%.

A tax attorney defended case of tax evasion for an affluent client. He devoted over a year to the case, familiarizing himself with every loophole and angle of current legislation, and made a brilliant argument before the court.

His client was called out of town when the jury returned with its verdict, a sweeping victory for his client on every count.

Flushed with victory, the lawyer exuberantly sent an email to his client, “Justice has triumphed!”

The client immediately emailed back, “Appeal at once!”

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, “Changes in the role of the LO and Their Compensation.” 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.)

Apr. 2: DTC job; legal webinar, recruiting, non-QM, broker products; tech survey; vendor news

“Probability tells you that a toddler has a 50-50 chance of putting their shoes on the correct feet. Parenting tells you otherwise.” Merging or acquiring is a costly exercise and participants hope that the probabilities are high of success. The latest news comes from Tennessee and involves FB Financial is selling its wholesale mortgage channel to Renasant, but that’s not all. FirstBank also signed a nonbinding indication of interest to sell its correspondent mortgage channel to a separate undisclosed company, which will assume all the assets and personnel for that channel if the deal goes through.

Employment

A Mid-Atlantic based independent mortgage banker is looking for a seasoned executive to launch a direct consumer internet channel. The platform company is privately owned, has a long tenured history, highly entrepreneurial, forward thinking and technology focused. “We are looking for a long-term investment to build and scale a call center. Location to be discussed. We are FNMA/FHLMC/GNMA approved and licensed in over 35 states.” Please email your resume in confidence to anixt@robchrisman.com.

Lender products and services

Todd Duncan has announced the theme of Sales Mastery 2019: FIT! FAST! FORWARD! Sales Mastery is the most trusted, high-performance conference worldwide! It equips mortgage, real estate, and financial service professionals with powerful tools, experienced-based insights, and clear strategies to make more money, impact more people, and enjoy a more balanced and rewarding life. This October, join Todd Duncan in San Diego, California to learn how to (1) DISRUPT your market, (2) CREATE relentless demand, (3) EXECUTE modern, relevant, leading-edge strategies. Imagine the feeling in your life closing an additional two to ten transactions a month in only 90 days. Secure your seat for the #1 event in the financial services industry to stay ahead of change by unlocking your potential and disrupting your market.

REGISTER TODAY!

Symmetry Lending’s HELOC Product and their commitment to Service, Speed, and Simplicity is the perfect relationship to meet the demands of today’s purchase market. Symmetry understands the value of certainty in the purchase market, and that different investor requirements can create challenges. Use a Symmetry HELOC to stay within agency guidelines!

With only a few overlays, Symmetry follows the credit and income guidelines from your DU/LP approval. Symmetry Lending will also be attending the Regional Conference of MBAs in Atlantic City, NJ on April 10th. Stop by Booth 426 and say hello to your Symmetry Area Manager, Joe Peterson. You can also find your Symmetry Area Manager here.

Your marketing strategy will make or break your business. If you don’t stand out, your company will fade away. To get a leg up, Quicken Loans Mortgage Services (QLMS), will use its expertise to help you make an impact. The lender gives its partner brokers, banks and credit unions FREE marketing materials that have been tried and tested to get the best response rate. Through QLMS’ Marketing Hub, partners can download templates for flyers, emails, direct mail campaigns and social media content. It’s easy for even the smallest broker to add their logo and contact information – then get their message out there. Contact your AE to learn more. If you’re not working with QLMS yet, you can connect through QLmortgageservices.com to learn about how QLMS can help you reach your clients.

Join us for National Mortgage Professional Magazine’s complimentary webinar “The Power of Bank Statement Programs,” on Thursday, April 4th at 2PM ET featuring Ben Tomkinson, National Correspondent Manager at Impac Mortgage Corp. Non-QM loans have once again opened the door for business owners with mortgage options that were previously shut. Bank statement programs have created unprecedented opportunities for mortgage originators to write responsible loans to a largely underserved market. This informative webinar will provide an overview of non-QM loans and the 40 billion non-QM future, explain why self-employed borrowers love non-QM loans, understanding the bank statement programs, the low hanging fruit marketing opportunities in bank statements, and how to qualify bank statement borrowers like a champ. Register for this complimentary webinar here.

Recruiting quality origination talent is time consuming, requiring focus and organization. “Model Match’s award-winning Talent Management Suite (TMS) provides an efficient and effective game plan to take your recruitment efforts to the next level. With Market Insights, Model Match takes the guesswork out of sourcing candidates by allowing you to target producers doing the type and amount of business best matched to your organization. Set the criteria and we do the rest. We’ll identify and provide you visibility into a complete production report including last fiscal year volume, trailing 12 months, most recent 90 days, unit counts, average loan amounts, product mix and more. Our team will even source all the contact information for you. The TMS will then guide you through each stage of the recruiting process, from sourcing and attracting candidates, to hiring, on-boarding and retention.” Click here to learn more about the value of Model Match.

Looking for non-QM solutions? Check out Plaza Home Mortgage’s new Solutions Non-QM program and new Bank Statement Income Calculation Service, where you can send a quick request from the Plaza website and they’ll review and calculate the monthly income for you before you submit your loan. Flexible income documentation (including 12 and 24-month full doc or 12 and 24-month personal or business bank statements), full doc DTIs up to 50%, interest-only options, new lower reserve requirements, expanded eligibility for all doc types, loan amounts from $100,000 to $2.5 million, and easier to use guidelines matrices. For more information, contact hereforyou@plazahomemortgage.com

Do you know where your leads are? HomeScout® does! With powerful lead and conversion technology solutions, HomeScout allows lenders to monitor and support borrower’s online activities throughout the entire home buying process to close more loans. Integrate their technology seamlessly into your existing website with a powerful search widget that gives your customers access to 100% MLS listing data. Combined with an interactive mortgage calculator to compare multiple loan scenarios, this platform brings the home and the loan together in a single user experience. HomeScout’s unique approach to user privacy means your buyer’s personal information won’t be sold off to your competition where they’ll feel like just another cog in the home-buying machine.  Learn more about HomeScout’s capabilities HERE or give them a call at 952-831-0623 and never lose another lead or pre-approved buyer to a public search site again.

Last week, XINNIX, The Mortgage Academy, partnered with industry legal expert Mitch Kider for one of the company’s most popular webinars: Transcending the Turbulence: The New Era of Change in the Mortgage Industry. In this webinar, Mitch tackled some of the industry’s toughest topics, including LO compensation, compliance, and mergers and acquisitions. He also answered some great questions from mortgage leaders across the nation. If you missed it, CLICK HERE to receive your complementary recording today!

Tech survey

STRATMOR Group’s 2019 Technology Insight Study is now officially underway! In its fifth year of gathering data, STRATMOR has streamlined and mobilized the study by creating multiple, single-topic surveys. The first survey can be completed in about five minutes — on your computer or mobile device. And, best of all, lenders who participate will receive the reports for the surveys they complete for free. Lenders, if you complete the surveys for all sections, you’ll have the entire 2019 Technology Insight Study for the investment of your time. You’ll receive all the great data insight (for example, in 2018, 72 percent of lenders surveyed reported offering borrowers the opportunity to upload documents and respond to conditions online). Take the first survey now on mortgage systems and rate the system you are using. For more information on the 2019 Technology Insight Study visit the STRATMOR website.

Vendor news

Amazon, Google, Facebook, Ellie Mae, MERS, or anyone else collecting data can feed it into algorithms. They want to turn your past into your future. Will it work? (Sure, have you clicked on “BBQ recipes” one day and then seen ads for BBQ mail order food the next?) The cost to originate a loan is above $8,600. Will vendors bring it down? Let’s see what some have been up to.

Charter Oak Systems, Focus Fulfillment, Freedom Mortgage Wholesale, Synergy Partners, The Money Source, The Original Mortgage Doctor and NMSI Wholesale, are some of the most recent vendors to join as Premier Plus Partners with The Mortgage List. Founded by industry veteran, Ginger Bell, The Mortgage List is a simple, one-stop location for those searching for vendors and service providers to the mortgage industry.  With the most complete database of providers The Mortgage List offers a free online resource where you can find everything you need to set up, grow, build and manage your mortgage business.  At The Mortgage List you can search for vendors, locate training, connect with other professionals and stay up to date with industry insight.

Congrats to Dawn Douglass, who has been named CIO of Volly, which combines SoftVu, LoyaltyExpress, and Lending Manager, where she is responsible for leading product development, technology management and the development of strategic partnership programs.

Ellie Mae announced the release of AllRegs Online, providing a new user experience for the industry’s most recognized single source for regulatory and investor information. The new AllRegs Online offering includes an updated and modernized interface, new features, compatibility with tablets and more all designed to drive efficiencies in the loan production process. Reade the online press release for additional details.

And don’t forget the release of Ellie Mae’s Encompass Digital Lending Platform™ to help lenders of all sizes originate more loans, lower origination costs and shorten the time to close with compliance, efficiency and quality. Key highlights from this update include: Expanded HELOC origination support, enhanced Consumer Connect™ Americans with Disabilities Act (ADA) capabilities and Correspondent and Wholesale Lending enhancements.

CoreLogic released an enhanced title and closing solution for lenders, which is incorporated into the industry standard Collateral Management System (CMS). The solution maximizes workflow efficiencies around activities related to procuring title insurance, facilitating fee collaboration and streamlining closing tasks between lenders and all loan associated vendors. Additionally, the Title and Closing Solution within CMS offers a seamless integration into TitlePort— a CoreLogic platform that provides connectivity to settlement agents and title providers, allowing them to digitally accept orders and correspond with lenders via messaging or document transfer in a secure portal.  For lenders who are currently part of the Collateral Management System (CMS) family, this solution is integrated into their CMS tool kit.

LBA Ware has announced the completion of a partial integration of its compensation platform CompenSafeTM with SimpleNexus’s enterprise digital mortgage solution. LOs will be able to receive real-time push notifications on calculated loan commissions directly through the SimpleNexus app.

docutech is expanding its scope of support for loans secured by a borrower’s ownership shares and lease in a cooperative unit (“cooperative loans”) to include home equity lines of credit (“HELOCs”) when the cooperative unit is located in New York.

Appraisers and Lenders alike may be holding their collective breath while regulators work toward a decision on whether to increase the appraisal threshold for residential real-estate transactions. Accurate Group recently weighed in on the FIRREA appraisal threshold topic.

Consumer lending platform Blend announced the general availability of its new home equity loan (HELOAN) and home equity line of credit (HELOC) offerings. Already in use by over 20 customers, including U.S. Bank and Mountain America Credit Union, with rising mortgage rates, the new products are particularly timely. Early customers using the new products, which are Blend’s first extension of its core lending platform beyond digital mortgages, have already seen up to 50% reductions in loan cycle times and increases of up to 3X in application pull-through rates.

Capital markets

Stocks and bonds don’t always move in opposite directions (look at a graph of stocks rallying and rates dropping since 1982) but yesterday investors turned away from U.S. Treasuries and some of the money must have gone into stocks in a “risk-on trade.” It seems that markets were moved by some manufacturing PMI data that created some optimism that the global economy could be at, or near, a cyclical bottom, propelling the 10-year +9 bps to 2.50% as we have seen a marked uptick in volatility in Treasuries over the past couple weeks. We received better than expected PMI data from the UK and China, allowing investors to move their money from U.S. Treasuries into Eurodollars, requiring a higher yield from Treasuries to make them more appetizing. Remember, the 10-year was as low as 2.34% during Thursday’s trading session. If the volatility continues, it will be interesting to see the Fed’s remarks at their next meeting.

Today is a fairly light for news. We have already seen February U.S. durable goods orders (-1.6%, weak). Next up is Redbook Chain Store Sales for the week ending March 30, the March ISM-New York, and Dallas Fed President Kaplan will speak. We begin today with agency MBS prices better by .125 versus last night and the 10-year yielding 2.47%.

As I was getting in bed last night, she said, “You’re drunk.”

I said, “How do you know?”

She said, “You live next door.”

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, “Changes in the role of the LO and Their Compensation.” 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.)

Apr. 1: AE jobs; disclosure, HELOC, non-QM, rural products; credit news & shifts in credit guidelines

(Yes, here is today’s actual commentary.) It is well known among loan officers that real estate agents don’t know their client’s credit situation before recommending the buyer to an MLO. What will they qualify for? And is this the beginning of the end for Tri-merge reports? Equifax is planning to team up with Fair Isaac, the creator of the FICO credit score, to sell consumer data to banks. Let’s take a random walk through other lender credit news below.

Employment

“Ready to make your move from retail LO to independent mortgage broker? The time has never been better. At BeAMortgageBroker.com, we can match you with a mortgage broker in your area or help you take the next steps toward opening your own shop. We are your single, no-cost source for the information and tools you need to become an independent mortgage broker. Call us for a free, confidential consultation and continued support throughout the process at 800.229.6342 or learn more at BeAMortgageBroker.com.”

“Are you an experienced outside or inside Account Executive looking for a change? Tired of the ‘same old same old’? Towne wants to talk to you! Towne is currently hiring ‘outside AEs’ throughout our 43 licensed states and hiring ‘inside AEs’ for our headquarters located in Troy, MI. Towne is a 37-year old full service GNMA/FNMA/FHLMC seller servicer. Our AEs are able to offer a full set of agency, non-QM and rehab products (203k, Homestyle) no minimum FICO FHA, manufactured homes, and no agency overlays! They can offer TPO clients multiple delivery options including delegated correspondent, mini-correspondent, wholesale as well as special offerings for credit union and community bank partners including hybrid retail and subservicing options. Product, client options, competitive pricing, superior service: We’ve got that covered and top that with a very aggressive compensation and benefits package!

Interested? Outside AEs Chad Farmer (803-765-1521); Inside AEs  Ray LaFave (248-247-1856).”

Lender products & services

Impac Mortgage is breaking through the barriers of Non-QM. Impac Mortgage, a pioneer in Non-QM lending, is aggressively developing its Non-QM correspondent business throughout the country by building strategic partnerships focused on providing all the necessary tools and resources for you to become a leader in your Non-QM marketplace. Along with our tools and resources, we provide coaching on how to: build a diverse client base, create new referral business, increase loan volume and close Non-QM loans quickly and efficiently. Our high-demand loan products include: 12-Month Bank Statement program, Investor program, Asset Qualifier program and Agency Plus program. These programs offer the lender a tremendous opportunity to grow their business and take full advantage of revenue streams previously not available to them. Now is the time to explore the Non-QM marketplace with a partner that will help you succeed. To find out more, contact us today!

Non-delegated correspondent lenders can experience a more efficient way to do business with Caliber Home Loans, Inc. and Caliber Express Connect from FirstFunding. When Caliber CL-1 business partners use Caliber’s proprietary loan origination system and select FirstFunding, Caliber Express Connect will transfer the loan information and documents directly to FirstFunding. By eliminating the manual entry of the loan information into both systems, Caliber Express Connect saves time and minimizes errors. This provides greater data integrity, quicker turn times and same day wires. In 2018 Caliber partnered with First Funding to bring the first-of-its-kind technology integration, Caliber Express Connect, to meet one of the industry’s biggest concerns – providing viable, secure, and accelerated solutions for its lenders. For more information about Caliber Express Connect, email Caliber at NewClientInquiry@CaliberHomeLoans.com.

Social Survey’s 2018 Top Performers Awards are unlike any other recognition in the mortgage industry. They focus on customer satisfaction, celebrating mortgage companies and loan officers who deliver outstanding experiences for their clients. They’ve just crowned the TOP 4 Mortgage Companies among four divisions (Small, Medium, Large & Jumbo), and the TOP 10 Loan Officers out of over 30,000 fierce competitors nationwide. The awards program was open to all mortgage professionals, not just Social Survey clients. Find out who won from the exclusive list of winners.

Want to learn how to take advantage of growth opportunities in rural lending? There are more people moving to rural America and the RuraLiving program is an excellent way to take advantage of this net migration. We will be attending the Great River Conference and we have meeting times available to discuss how you can utilize the RuraLiving program to increase your market share and volume. You can also stop by Booth 31 to learn more about this unique correspondent program. Please contact Jessica Sacre, Doug Gibney, or Hannah Stenzel to schedule a meeting or learn more about what RuraLiving has to offer.

TCF Bank®’s Relationship Lending Unit is excited to announce new broker compensation on our Stand Alone HELOC. This is no April Fools’ Day joke. Effective April 5, we will pay 1 percent of the line amount, but no less than $750 or more than $1,500 per Stand Alone HELOC transaction. “With over $16 trillion in untapped equity, we understand how important it is for our valued partners to stay connected with past customers,” said Mark Zierott, SVP, National Sales Director at TCF. “Whether it’s a need for debt consolidation, home improvement, college education, or a down payment on a second home, customers can access their equity for what matters most.” Please contact your existing business development manager for more details. If you are currently not an approved partner, please email us at RLUCorporate@tcfbank.com. You can also visit tcfbank.com/brokerloans for more details.

SimpleNexus delivers Disclosures Done Right, a disclosure toolset that seamlessly presents disclosure packages and enables borrowers and loan originators to eSign in the mobile app or online including wet signatures. SimpleNexus Disclosures includes innovative tracking tools integrated directly into the LOS system for compliance peace of mind. SimpleNexus’ disclosure solution changes nothing on the backend, ensuring the processes of underwriters and disclosure desk teams remain efficient. SimpleNexus Disclosures fits right into the fully branded digital mortgage platform SimpleNexus uniquely configures to each lender. Loan originators become truly mobile by using their smart devices to access credit, appraisals, pricing, VOA, and now disclosures, while syncing with their LOS and CRM system every step of the way. Watch our new Disclosure Video and get a demo for SimpleNexus Disclosures

Credit guidelines

All lenders are lowering credit qualifications across the board, but nonbank lenders lead the pack. Median FICO scores are around 713 for nonbanks compared with banks, where the median scores are 745, according to the Urban Institute’s Housing Finance Policy Center February Chartbook. Overall, credit availability has been tightfisted as median FICO scores for current home purchases are still 30 points above pre-mortgage crisis levels of 700. The lowest credit scores for home loan borrowers is 643, compared with the low 600s in the early 2000s. Keep in mind, however, you can obtain a mortgage with even lower scores through government programs including FHA loans and VA loans. While median credit scores might be stronger than pre-crisis levels, the debt-to-income ratios, or DTI, are higher. Today, the median DTI is 40 percent, which is 4 percentage points higher than it was before the mortgage meltdown, when DTI was 36 percent.

Huh? Don’t qualify for regular loan? There are reasons for portfolio loans.

Research published by the Urban Institute and Freddie Mac, Barriers to Accessing Homeownership— Down Payment, Credit, and Affordability, revealed three key barriers to homeownership in today’s market. Saving for down payment, gaining access to credit and mortgage affordability. Freddie Mac is developing a three-part article series to aid in understanding the opportunity around mortgage-ready borrowers and to provide tips on growing your affordable-lending business. Read the first article, What’s Keeping Lower-Income Families from Homeownership?

Blockchain technology is on track to upend the mortgage industry by giving underwriters and financial institutions the ability to access information they’ve never had access to before.

Recently, more than a dozen well-known online lenders like SoFi and Better Mortgage signed on to participate in testing a platform created by Spring Labs, a company looking to improve the security and efficiency of the credit reporting industry with blockchain. The platform aims to help consumers and mortgage lenders (among others) by facilitating the secure and efficient exchange of information directly with each other while maintaining the privacy of the underlying data. Spring Labs Co-Founder and CEO Adam Jiwan, who was a founding board member of Avant, a $5+ billion online lending company, thinks blockchain is going to completely change the competitive landscape of the mortgage industry and make lenders rely less on credit bureaus for information on borrowers.

As a reminder, FHA has announced that effective with case numbers assigned on or after March 18, 2019, its TOTAL Scorecard underwriting technology will incorporate changes that will better manage loans with low credit scores, high ratios and excessive risk layering. FHA states that over the last several years they have seen a continuing increase in certain high-risk credit characteristics, including: a growth in cash-out refinances (in 2018, an increase of more than 60% as a percentage of all refinances); an increase in high debt-to-income ratios (in 2018, 25% of all FHA forward mortgages purchase transactions had a DTI of over 50%); and a decrease in average credit scores (the lowest since 2008). To read FHA Info #19-07, click here.

Wells Fargo Funding provided clarity on its Non-Conforming revolving accounts policy when the credit bureau does not reflect a payment on a current reporting liability. If the actual monthly payment can be documented by a letter from the creditor or a current monthly statement, the actual payment may be used for qualifying.

Plaza has a new way to submit a request in BREEZE for a Pre-Qual loan, also referred to as a TBD loan. Using the Pre-Qual feature, you can submit your borrowers for credit underwriting while they are still shopping for a property. Once they’ve found a property, update the address in BREEZE and process as usual. View the Pre-Qual Quick Step Guide for step-by-step instructions.

HUD loans receiving a “Refer” scoring recommendation from the Technology Open to Approved Lenders (TOTAL) Mortgage Scorecard are required to be manually underwritten. Similarly, a loan with an “Approve” scoring recommendation from the Scorecard may also be required to be downgraded to manual underwriting in certain cases. To improve transparency and to help clients better understand how a borrower’s credit is reviewed during the manual underwriting process, Sun West has updated its manual underwriting guidelines specifically for the review of a borrower’s credit. The updated guidelines include additional information on how various risk factors associated with a borrower’s credit are analyzed during a manual underwriting review. To access the updated guidelines, click here.

Capital markets

Residential loan officers certainly watch construction numbers. As a reminder, housing construction surprisingly decreased to nearly a two-year low in February, according to the US Commerce Department, while consumer confidence is down for the second consecutive month in March, according to The Conference Board. The data point to a significant slowdown in economic activity. What could make rates go up? If the Fed unexpectedly stops purchasing or reinvesting monies in 30-year paper.

We had a bunch (a technical term) of economic news Friday, and U.S. Treasuries closed rebounding slightly from the rate rally that defined the first half of the week on no real economic news. Personal income increased 0.2% in February after decreasing 0.1% in January. Personal spending increased 0.1% in January after decreasing a revised 0.6% in December. The PCE Price Index for January decreased 0.1% while the core PCE Price Index, which excludes food and energy, increased 0.1%. (The core PCE Price Index slipped below the Fed’s longer-run inflation target of 2.0%, which can be used by the FOMC as a reason for maintaining its newfound patient stance.) A recent decrease in prices appears to have spurred more home sales activity in February. Domestically, Fed Vice Chair for Supervision Randal Quarles said that he maintains an upbeat view of the growth potential in the economy, which may necessitate more rate hikes. Internationally, the British Parliament voted against Prime Minister Theresa May’s deal for the third time, increasing the likelihood of a no-deal Brexit on April 12.

The first week of this new month and quarter is a busy one, with economic releases including the March employment report on Friday. But I’m getting ahead of myself. Today’s busy calendar began with the February retail sales report (-.2%, ex-auto -.4%, weak). Markit manufacturing PMI, ISM manufacturing PMI, business inventories, and construction spending are all ahead. Tomorrow brings February Durable orders before Wednesday sees application data, the ADP employment change, and ISM Non-manufacturing Index. The week closes with Nonfarm Payrolls (March) and February Consumer Credit. The Fed speaker circuit is also busy, particular in the latter part of the week, with appearances by Atlanta’s Bostic, Richmond’s Barkin, Kansas City’s George, Minneapolis’ Kashkari, New York’s Williams, Philadelphia’s Harker and Cleveland’s Mester. Additionally, the RBA will be out with their latest monetary policy decision on Tuesday. We begin today with agency MBS prices worse a solid .125 versus Friday and the 10-year yielding 2.44%.

Why is it that everyone is so worn out on April 1?

They have just endured a March of 31 days!

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, “Changes in the role of the LO and Their Compensation.” 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.)

4/1: Jobs; Lender products & services; Agency news; events; legal news; MBA update

Critics outside of our industry say that the mortgage biz is dull, mature, and overly stable. Those inside of it, however, know differently, and see it as an ever-changing kaleidoscope of exciting changes, incredible innovation, and complexities rivaling the Apollo Program.

Employment

“We put the bank in ‘point bank’ for you. We’re looking for un-motivated, mediocre loan originators and branch managers to join us in hopes of originating enough loans to keep us afloat at these poor margin levels. We will make you better! We offer an outdated origination platform, but have a new one lined up, and in-house underwriters who still believe it is 2008. We will allow you to set up the branches any way you see fit, and allow you to write your own contract for Marketing Service Agreements and Joint Ventures, and then hope for the best. We offer an unequaled compensation package with different comp plans for different programs. You’ll earn twice as much as your peers by closing one or two loans per month, as long as they’re the right program. If you consistently over-promise and under-deliver and are looking for yet another 6-month draw guarantee, then we have a place for you! Click here to learn more about our future together!”

Lender products & services

Congratulations to Eastern Zions Bancorp for taking its marketing efforts to a new level: launching a blimp. (Somehow my IndyMac coffee mug, WAMU T-shirt, and Thornburg mouse pad pale in comparison.) Here is the latest. Hopefully there are no jokes about “the highest rates in the land” since maintaining a blimp is a serious and expensive business.

It is rumored that a major vendor will be announcing plans for an attention-grabbing product as soon as next week. The Loan Bone is expected to turn heads, tentatively being billed as “the product that stands up for you when you need it the most.” Designed for lenders who have a passion for implementation, product designers assure early users that it won’t take too long to get it up knowing that time is of the essence for many lenders. How the product will be measured has yet to be determined. Watch for details.

Rumors abound of a large correspondent lender addressing the burgeoning Second Time Homebuyer Program. The VP of Sales announced, “First Time Homebuyer Programs have run out of steam. How long can our industry beat that horse? The hundred other correspondent investors all have First Time Homebuyer Programs, but our sales staff have told us that their clients are clamoring for a solid Second Time Homebuyer Program. Gen Xers have been forgotten for too long, and we’ll be rolling that out to our correspondents some time this quarter. The hurdle will be finding Baby Boomers who actually want to move out of their homes.

Agency news

Rumors swirl of one of the Agencies unveiling its Unaffordable Housing Program in the second quarter. Details are nearly non-existent but are focused on helping consumers purchase homes that they thought were unaffordable. Differences between this and the Affordable Housing Programs need to be reconciled.

Chrisman LLC was sent this transcript of a meeting between high-ranking officers at Freddie Mac and Fannie Mae by a recently retired Agency vet. Readers can catch a glimpse of what is behind the curtain and open the impenetrable Agency kimono in discussions of new programs and customer service.

“Look, we can’t boil the ocean. We may want to assemble a Tiger Team, since it is more technical than SWAT Team, given that this is in our wheelhouse. At the end of the day we need to stay in our swim lane and take advantage of synergy to take it to the next level. If need be, we can take it offline before we tee it up.”

“Agreed. Let’s all think outside the box since it has a lot of moving parts. Let’s circle back before there’s any talk of tabling this. I think this new product can really move the needle and I don’t want to hear any talk of punting. We can lever our technology to deliver a robust solution and then run it up the flagpole.”

“I agree 110%. Let’s make it scalable so that lenders drink the Kool-Aid. We can empower our clients and really have an impact. It is what it is, but our sales team needs to remind clients that it’s a paradigm shift. I had a critical learning from that last project which will help us deliver lots of bang for the buck. We need to write up best practices and remind IT that we want to be on the bleeding edge, not just the cutting edge. Maybe we should assemble a Blue-Ribbon Panel to dive into blue-sky thinking and brainstorming before we’re anywhere near a burning platform. Remind everyone to look to our core competency and corporate values. Our teammates can do more with less. Don’t throw them under the bus. Let’s let them push the envelope, do the heavy lifting, and be the rainmakers.”

“Agreed. And now I think we’re out of metaphors.”

In other Agency news, saying it would mark a significant change in the company’s direction, one Agency’s marketing group announced a bold new plan that was evidently intended to undo the havoc caused by last year’s bold new plan. “It’s time to make some major shifts in how we do things [in reaction to the disastrous major shifts I implemented last year],” said an unnamed official of the sweeping new initiative that amounted to a point-by-point retraction of his sweeping initiative from almost exactly one year ago. “We’re all going to have to accept some changes [to salvage the resources wasted due to my last disastrous strategic move], but I’m confident this is going to be an important step [backward] for the company. And, who knows, maybe we’ll even have [no] fun [whatsoever] in the process.” As this commentary was being written several employees were being laid off whose salaries amounted to the bonus he had received last year.

Upcoming events

The upcoming table tennis tournament between the top 64 wholesalers is fast approaching. Although the brackets were still being determined as this commentary went to press, much of the attention Las Vegas oddsmakers and warehouse banks has been focused on the United Wholesale, Quicken, and Freedom matches in recent months during league play. The posturing, jawboning, and maneuvering over who will take home the coveted “Golden Paddle” has attracted everyone’s attention. Stay tuned!

With razor-thin margins, travel and entertainment budgets have been reduced for many lenders, but travel is still a fact of life. For example, ahead of next month’s MBA conference in New York, at the usual Marriott with circular bank of elevators, plenty of capital markets employees are booking flights. So in a related story out of Denver, explaining that the costs of the service have grown too high in recent years, Frontier Airlines announced yesterday that it will no longer offer free cabin pressurization to passengers starting May 1. “Unfortunately, to stay competitive as a legacy carrier in today’s air travel market, it no longer makes economic sense for us to provide breathable air at altitude,” said the Frontier Airlines CEO, noting that despite the cutbacks, air pressurization would still be available to first- and business-class travelers as well as those willing to pay an additional fee – usually MI reps. “While we regret any altitude sickness, blood problems, dimmed vision, or hyperventilation that may result from air pressure less than a third normal levels, we remind our customers that such effects will diminish as soon as the aircraft descends below 15,000 feet.” There are rumors that Jet Blue is planning to discontinue complimentary landing gear on flights under four hours.

The annual FHFA Easter egg hunt will be held on April 20th. If previous year’s results are any indication, 70% of the eggs will be found by Fannie employees, 30% of them will be found by Freddie employees, but neither will say anything about the other. It is expected that each group will sell them to the public and use the proceeds to help pay a special dividend to the U.S. Treasury. It was also reported that some of the best hunters were contemplating moving on to other hunts that offered more eggs with prettier decorations and that didn’t have taxpayer judges watching the egg hunt. (The CFPB was not invited this year, again, apparently due to last year’s requirement of waiting until 3 days after the hunt to actually eat the eggs.)

Legal news

FinCEN will require FNMA, FHLMC and the FHLBs to develop AML programs and file SARs reports with the FHA. According to SIFMA, RMBS and CMBS probably will not be impacted, nor will DU, LP, the CD or LE, but the MBA, NAR, HUD are reviewing the program to see its impact on MLOs. The CFPB is expected to issue a rulemaking on it, possibly reviewing the DTI, VOR, VOM, VOD, VOE calculations. The FDIC and FTC have not weighed in but may ASAP.

The CFPB, which is running out of mortgage companies and transactions to regulate, but still wanting to lash out against something, in an unusual move has gone after both layaway plans and bottled water sellers. One unnamed CFPB official warned, “Some will say we’re 80 years too late taking a hard look at layaway plans (agreements in which the seller reserves an item for a consumer until the consumer completes all the payments necessary to pay for that item). But we’re putting the management of Gold Circle, Penny’s, Sears, Wanamaker’s, Bonwit Teller, Montgomery Ward, Woolworth’s, Macy’s, Mervyn’s, Gimbel’s, Kinney Shoes, Hudson’s, and Marshall Field, Kaufmann’s, Hills, and others on notice that ‘we’ll be in touch.’”

When told that most of these companies have been out of business for decades, the CFPB official stated, “If the consumer is wronged, there is no statute of limitations. With layaway plans there is little risk involved for the seller, and so it was readily offered to those with bad credit who also used pay day lenders and pawn shops. If the transaction is not completed, the item is returned to stock and the customer’s money is returned minus a fee. The fees were onerous, and we will be combing through the archives!”

Although bottled water is not a consumer financial product, another CFPB official suggested that someone, somewhere was being wronged financially. “Look, things have changed since Dick (Cordray) left, and bottled water is an easy target. Why would someone pay $6 for a pint of something that comes out of the tap or drinking fountain for free? We plan to get to the bottom of it!” Loan originators everywhere cheered the news. One vet quipped, “I hate being beaten up on pricing when the borrower is sitting there drinking a Fiji Water or a cup of $5 Starbucks latte. If they’re so concerned about grinding me on price, how ‘bout tap water or a Dunkin’ Donuts free refill?”

Your MBA at work

The Mortgage Bankers Association, with or without the “The” in front of it, continues to stay in the forefront of residential and commercial issues. At the helm is President and CEO Bob Broeksmit, who said of his senior management team, “These guys are as hard working as beavers, and can be as feisty as terriers when it comes to defending our membership.” Others chimed in with admiration of Bob. COO Marcia Davies noted, “Bob is as clever as an otter!” SVP Dr. Michael Fratantoni observed, “Bob has a comical side just like an otter.” Peter Grace remarked, “Bob is as noble as a lion.” Helen Kanovsky stated, “Bob is as wise as an owl!”

Bill Kilmer recorded, “Bob is as industrious as a beaver!” Tom Kim recorded, “Bob is certainly a busy bee!” Steve O’Connor commented, “He is as diligent as an ant.” Perhaps missing the mark slightly, Pete Mills admired, “Bob is as swift as a falcon, is as strong as an ox, and has the tawny thighs of a jungle cat!”

Capital markets

I am happy to announce that Private Capital is returning to the mortgage market! (No, this isn’t some play on a private in the Army named “Tony Capital” who is financing his house.) I received an odd e-mail last week saying, “Meet me at Pier 12 at 10:30PM tonight.” I was intrigued, especially having seen all “The Sopranos” episodes, and had nothing better to do than to visit a loading dock rather than sleep.

I showed up, and Private Capital immediately commented that based on my e-mails I should have been taller, younger, better looking, and more educated. The meeting went downhill from there. I asked why Private Capital hadn’t been around in any kind of noticeable fashion in several years, and PC replied that the returns just weren’t there. And in fact they were getting worse. PC then shot off several demands. “First, I want returns in the teens. No one wants a 30-year fixed rate asset at 4.25%. Give me intermediate ARM loans, like 3-1s or 5-1s or 7-1s, at 14%. I either want no delinquencies, so servicing is a breeze, or give me pools with lots of delinquencies so that I can either foreclose and sell the house at a profit or collect a lot of fee income. And lastly, I need you to take care of Fannie Mae and Freddie Mac. The two of them are really muddying the waters. Make it quick, because the last thing the mortgage industry needs is continued droning on by politicians and regulators in the middle of the four-year election cycle. Don’t remind your readers that in the past they served a critical role in housing – this is a new era!” Before slipping into the darkness Private Capital finished with, “If you do all that, we’ll let you invest in our funds and pay our management fees.”

Turning to the markets, the only news from around the world (which had virtually no impact on rates) was the release by the Japanese Institute of Supply Management of its quarterly tally. These numbers are notoriously suspect, and of poor predictive ability.

Loan officers can tell borrower clients that while overseas flows have quieted into their fiscal year end, U.S. traders have seen better domestic real money interest in G2s over the past few days (both outright in 3 and 3.5 as well as adding of G2 swap rolls) and traders added the 3 and 4 swaps out of the gates yesterday. The 3.5 swap looks high on the stack to analysts, however, with a new quarter about to start and the general consensus that the real money community is underinvested, it feels like the 3.5 swap is not about to underperform materially over the next few weeks and so we started to add the ones around it. Borrowers should know that traders are looking to add the 4 swap on weakness and sell pops in basis.

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, “Changes in the role of the LO and Their Compensation.” 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.)

Mar. 30: At $8,600 per loan, now what? Letters on capacity, LO comp, offshoring/outsourcing

It doesn’t help lender’s relationships with their warehouse banks and correspondent investors when independent mortgage banks, and mortgage subsidiaries of chartered banks, reported a net loss of $200 for each loan they originated in the fourth quarter, according to the Quarterly Mortgage Bankers Performance Report released by the Mortgage Bankers Association. The cost to originate increased to $8,611 per loan in the fourth quarter, up from $8,174 per loan in the third quarter, higher than average on the coasts, lower in the mid-section of the U.S., due to loan size and overhead costs.

But rates have come down, and lenders once again find themselves in a tricky position trying to balance operations capacity and production capability. Some are using forecasting tools of companies like Riivos (contact Jeffrey Axelrod for more information) while others are contemplating the usual “staff up, downsize later” cycle and thinking about trying to hire back Ops staff for the hoped-for pick up in biz.

On that topic I received a note from industry vet James Johnson. “Rob, as a capital markets person you have to be very intrigued with this recent drop in rates. Are rates headed even lower and is there some sort of refi opportunity on the horizon? It seems a bit unthinkable, but I am actually in the camp where that is a real possibility. Right now 30-year fixed is close to 4.25% and needs to get to 4.0% or probably something with a 3 handle before we see any real refi activity. I have a few thoughts on what company owners might contemplate doing.

“The real problem right now is that volume and capacity are significantly out of balance and that is creating today’s margin compression. Capacity probably needs to shrink by something like 20%. But that would require a head count reduction of something like 30-40% and it is hard to see that happening. LO’s continue to recycle at a different company rather than leave the business, thus making it a very slow capacity reduction process. If I am right about this, it will be 3-5 years before we rebalance.

“Right now we are looking at a good news-bad news scenario. Every tick down in rates will help volume, but it is hard to predict the magnitude of any pickup. That will be true for purchase business and refi opportunities. But any downward move in rates also will tend to slow down the capacity realignment, making any rebalancing just drag on. With rates at current levels we might be in no man’s land. Rate are low enough to slow down the capacity rebalancing, but not low enough to generate refi activity.

“Owners can wait and see how this plays out, but that is a very risky strategy. What if rates stay about where they are or go higher over the next year or so? And what happens if we still have over capacity and continued margin compression? Will today’s squeeze continue?

“I really think that the owners of these smaller IMB’s should be researching their options. Can they find a partnership deal that will allow them to make more money than they are making today with a lot fewer headaches? Can they find a way to preserve their hard-earned capital and eliminate their risk going forward? Can they get access to better technology, marketing and loan products, and turn their current scale disadvantage into an advantage? The idea of giving up their independence is preventing many owners from even taking a look at their options. But I think they would be really smart to quantify all of this, understand how it could work, and then decide if it is something that would be of interest for them. (You can reach James here.)

MLO compensation

And from Dan Stone, with Mortgage Fee Coach, Inc., came, “Regarding LO compensation, let’s be real, too many loan officers and mortgage companies want to earn as much money as possible with the least amount of work. Given the opportunity to charge a client more points & fees or direct a borrower to a rate or loan program to earn a greater commission, they will charge the borrower a lot more often than you think. Too many LOs took advantage 30 years ago and too many will take advantage today.

“I worked in Secondary Marketing for 23 years at banks and mortgage companies. I experienced first-hand how many LOs would lock a rate with the highest rebate and/or charge the most points possible, so they could get rich at the expense of the borrower. Each borrower trusts the LO to either get them a fair or the best deal. In addition, the realtors don’t compare different lenders rates, fees and loan programs. They refer borrowers to the LO because they’ll get the loan closed at all costs. And, too many realtors want something from the lender for referring the borrower to them, such as free advertising, tickets to a pro game or free boat rides. Based on my experience, 5% of realtors try to help their clients get the best mortgage loan.

“The reason I started my mortgage consulting/coaching business 8 years ago was because I saw too many LOs direct borrowers into FHA or sub-prime loans to earn greater commissions. Too many other borrowers didn’t know how to compare rates, fees and programs, so they asked the realtor or friend for a lender based on trust and experience. Too often I can beat the realtors recommended lender at .25-.50% in rate.

“Why do so many borrowers search for a lender on their own, before and after meeting with a realtor? Because, they don’t trust the realtor to recommend a competitive lender. The LO comp rules are not great. They need to be improved. But they need to be in place to protect the borrowers.”

Outsourcing & offshoring

Who is “Tata?” Tata Group is an Indian multinational conglomerate holding company headquartered in Mumbai, Maharashtra, India. Founded in 1868, the company gained international recognition after purchasing several global companies. One of India’s largest conglomerates, Tata Group is owned by Tata Sons. Besides owning Jaguar Land Rover, it is one way to outsource.

Earlier this month the commentary had a note on how some companies are changing their battle tactics by moving certain jobs. On the topic of outsourcing or offshoring, company owners are drawn to sending non-customer facing jobs overseas, where other countries have more skilled engineers graduate every year from college than the U.S. has college graduates, and where checklist jobs can be done by contractors (versus employees) without benefits. A lender can re-direct funds into marketing, for example, or more aggressive pricing.

Saturday’s commentary prompted the question, “What is the magnitude of actual back office savings that can be realized by off-shoring?”

Jon Gerretsen, President of Trelix, an Altisource business unit, responded with, “At Trelix we see post implementation back office savings range between 25%-45%. This is driven by product makeup, geographic location and the number of components outsourced, with the highest savings being achieved through a complete outsourced end to end fulfillment solution. (Trelix can also provide the LOS technology platform, collateral services, construction loan support and title services, further adding to efficiencies and cost saves.) In order to measure the full magnitude of back office savings achieved through vendor partnerships it’s important to look beyond these initial upfront direct savings. There are additional cost benefits that can be achieved by lenders through vendor partnerships.

“We employ a bifurcated workflow model. Tasks are completed in dovetail fashion on a global basis and we align our offshore resources with onshore teams to maximize productivity. Offshoring creates the ability to provide a 16-hour day, which leads to competitive advantages for lenders vis a vis improved service levels which, along with turn times, are contractually based.

“We have seen that stronger SLAs and guaranteed turn times not only provide competitive market advantages upfront in the process but that they also can lead to higher pipeline pull through. Improvements of 5%-10% in closed loan production are possible with no additional acquisition costs. Contracts can also be structured so that fulfillment fees apply only to closed loans so that origination costs are more directly aligned with actual production.”

And Paul Campbell with Equilibrium Solutions answered with, “The true cost savings per loan varies upon the type of production being originated meaning, product mix, the size of the organization and the functions that are being outsourced. Some companies outsource specific functions like, UW, QC, Setup and Indexing or Post Closing QC, while, others have an end to end solution.

“Our experience at Equilibrium has been if you look at the MBA data for lenders generating $50 MM (135 units) per quarter based on Q3 2018 performance one will see: $1,163.00 (UW, Closing) per loan in only fulfillment, Production Support is $471.00 (processing) per loan, Employee Benefits is $665.00 per loan (all FTE), Occupancy and Equipment is $441.00 per loan.  The numbers come out to $2,740.00 per loan for a full end to end process.  Note: All soft costs such as Management and Corporate Administration Overhead cost reductions are not factored into these numbers. The same cost in an Outsource environment at Equilibrium Solutions will be approximately $895.00 per loan which will save approximately $1,845.00 or appx. 83 basis points per loan which is significant for a $50 MM per quarter Lending Platform.

“The competitive gain in market will allow for infrastructure upgrades, additional sales and loan acquisition spend or more marketing activities. Typically outsourcing improves loan quality as there should be no staffing constraints and a fuller view of aggregator requirements.”

Mitch Tanenbaum cabled, “I was an executive at a very large mortgage outsourcer for years, so I am not anti-outsourcing. One very important thing for lenders to remember is that if the company you outsource to has a security breach, you are going to get sued, so your vendor CYBER risk management (VCRM) is critical. And that VCRM is separate from Vendor COMPLIANCE risk management that lenders have done for years.

“For lenders licensed in New York, you are already familiar with the requirements of VCRM due to the requires placed on you by NY’s DFS 500 rule that is now in effect. If you are not familiar with the requirements, some of the requirements are to make sure everything that you want them to do is documented in writing and legally enforceable. You want to make sure that they have security policies, that they train their employees and their contractors in security

practices and anti-phishing techniques, that they perform annual security risk assessments and several other things.

“If YOU have to be compliant with California’s new CCPA (CA AB 375 and amendments), so do they. You want to make sure that they have CYBER risk insurance in place and you also want to make sure that your own cyber risk insurance will cover your butt if they screw up.

“Finally, if they outsource some of their function to a cloud vendor or their third party (your fourth party) like was the case in the recent 24 million mortgage document breach at Ascension, that your third party has their own VCRM program in place. You get the general idea. We can help you if you don’t have a VCRM program in place already.” Thank you, Mitch!

Last night I was sitting on the sofa watching TV when I heard my wife’s voice from the kitchen.
“What would you like for dinner my Love, chicken, beef, or fish?”
I said, “Thank you, I’ll have chicken.”
She replied “You’re having soup. I was talking to the cat.”

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, “Changes in the role of the LO and Their Compensation.” 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.)

Mar. 29: AE, LO jobs; investor wanted; warehouse, broker products; Banc of Cal exit; coast to coast training & events

Wells Fargo’s continuing saga continues with the resignation of its CEO Tim Sloan over opening accounts without customer’s permission. “Fortunately” this time it was not for mortgage-related issues, and Allen Park, Wells’ SVP and general counsel, steps in temporarily until a CEO from outside the company is found. Wells recently awarded Sloan a 5 percent pay raise, to $18.4 million a year. Speaking of comp, NASA scientists will pay you $19,000 to stay in bed two months. Comp is relative, and originators around the country are seeing their pay, and jobs, change. (The latest STRATMOR blog is, “Changes in the role of the LO and Their Compensation.”) Lastly, do you pay your employees in old-fashioned dollars? In Japan (not exactly known for its thriving economy or expanding population) the government is moving toward paying wages and salaries with digital currency.

Employment & business opportunities

PennyMac Broker Direct has a rare opportunity for the right candidates to join one of the fastest growing broker organizations in the third-party origination channels. “We are seeking Market Sales Managers (Sr. AEs with established broker relationships in various geographic markets throughout the U.S.) and inside AEs (based in Westlake Village, CA area or Minneapolis/St Paul, MN market) to join an organization that delivers highly competitive rates and programs to broker customers, with a system that delivers top speed and efficiency. If interested in this once-in-a-career opportunity to join PennyMac’s dynamic Broker Direct team, contact or send your resume to one our sales leaders, Chris Legg (614-288-5126) or Scott Houp (847-609-6006) for a confidential follow-up appointment.”

Attention fintech investors and investment bankers! A mature, profitable and well adopted mortgage technology firm is seeking to raise $10M+ for rapid expansion purposes across banking and mortgage verticals, and to enhance the sales and prospecting capabilities of mortgage loan officers. Serious and interested investors may inquire by contacting Anjelica Nixt to forward their note for a confidential discussion. Mortgage Technology Document Management firms, Mortgage Insurance, Institutional or private sources of capital are encouraged.

NewRez is seeking dynamic, growth-minded, mortgage loan originators to work in-house with a new Joint Venture partnership in Orange County and San Diego County. “Our JV platform is constantly expanding providing immense opportunity for dedicated, hardworking loan officers,” says Vince Daino, VP of Recruiting and Business Development. “We strive to fulfill the dream of homeownership by offering a wide breadth of products and flexible lending options.” If you are looking to grow your career, contact Vince to learn more about this role and other open positions available within NewRez.

“All Loan Consultants at Caliber Home Loans, Inc. can rely on us to help you stay top-of-mind with your closed borrowers all year long. Our recapture campaigns bring borrowers back and encourage referrals. Each time you close a Caliber loan, your new borrower is enrolled in our automated retention campaign and will hear from you at regular intervals for the next three years. These automated Caliber communications keep you “top of mind” with borrowers all year round. And, because Caliber services a majority of the loans you originate, your past customers will receive a mortgage statement every month with your name, photo and contact information on it. Producers interested in working for a lender who helps them retain past customers, should email Jeremy DeRosa or visit www.joincalibernow.com.”

Lender products & services

Stearns Wholesale announced the release of a powerful new feature in SNAP 2.0 that makes it possible for brokers to calculate borrowers’ income. Brokers simply input a few docs into the Calculate My Income Tool in SNAP 2.0, hit submit and Stearns notifies you when the income is processed in a short, easy to read, breakdown. Brokers can use this tool to help qualify more borrowers under Stearns’ vast array of product options. Doctor loans, 7 different jumbo programs, CalHFA bonds, FNMA manual underwrites, soon to be released Conforming IO and much more.  For 30 years, Stearns has empowered their brokers with tools to help them work smarter, more efficiently and close more loans. Contact your Account Executive for details or email wholesaleleadership@stearns.com.

Are you working with a customer-centric and collaborative warehouse lender that prides itself on integrity, excellence, agility, diversity, and involvement? At Comerica Bank, these are the core values that dictate everything they do. Since 1965, Comerica Bank has been a warehouse partner with mortgage bankers across the country. Comerica Bank and its team of experienced bankers take pride in this unwavering commitment to mortgage warehouse lending. Offering lines from $5 million to over $100 million, Comerica Bank is a reliable, flexible and consistent warehouse partner. With state-of-the-art technology, Comerica Bank funds loans within seconds, reducing the stress on homeowners, real estate agents, and loan officers. Warehouse lenders may be a dime a dozen these days, but Comerica Bank has remained a dependable partner of mortgage bankers for decades. To see how Comerica Bank can raise your expectations of what a bank can be, contact Von Ringger at (313) 222-9285 or Trey Worley at (214) 462-4279. Member FDIC. Equal Opportunity Lender. Loans subject to credit approval.

Exits

Isn’t the first, won’t be the last. Banc of California, N.A. has made the decision to exit the Wholesale and Correspondent residential mortgage origination business channels. Today is the last day for clients to register a new loan app, locks must be done by 4/12, with documents and packages due in the first three weeks of May. “All current loan approvals and rate locks will be honored. Effective Friday, April 5, the maximum rate lock period will be 15 days at the current market rate. For questions about loan applications intended for Banc of California but not yet submitted, please contact your Banc of California representative by 5:00 pm PST, Friday, March 29, 2019. Your current Wholesale Broker and/or Correspondent Lender Agreement remains in full force and effect for loans currently in process, brokered or sold to the Bank thereunder.  You may contact your Banc of California representatives with questions about this letter or email us at pcldclientservices@bancofcal.com.”

April training and events

Where did the first quarter of 2019 go? Right up until the end it has been a news-filled quarter, the latest event being the Pennsylvania Supreme Court providing guidance on authenticating mortgage records. And it’s conference season, and suddenly hickory and applewood smoked bacons are on the endangered list as mortgage bankers have breakfasts around the nation. But there is a lot of things you can do from the safety of your own home. Let’s see what is coming up!

James Brody, Chair of Johnston Thomas’s Mortgage Banking Practice Group, is hosting a complimentary webinar at 10:30 AM PST, on April 18, titled “Annual Regulatory Round-up: Invaluable Tips for Maintaining Compliance in 2019 and Beyond”.  Per Mr. Brody, this webinar will provide critical insights into those compliance issues at the heart of the mortgage industry, including but not limited to, Loan Officer and Branch Manager Compensation, MSAs, JVs, Advertising, Vendor Management, and more.  In addition, if you would like to obtain a complimentary copy of Johnston Thomas’s recent lender only webinar, titled “Lehman Bros. GSE and RMBS Litigation: A Comprehensive Review and Analysis”, please contact Mr. Brody directly. Per Mr. Brody, whose firm is representing a large number of companies in connection with compliance issues, as well as one of the largest blocks of lenders being pursued by Lehman Bros. in and/or out of court, he is scheduled to speak and welcomes meetings at the MBA’s upcoming Legal Issues and Regulatory Compliance Conference in New Orleans, between May 5-8.

Are you a C-level executive looking for a unique conference experience?  Check out the California MBA’s 2nd Annual Chairman’s Conference, April 7-9th at The Lodge at Torry Pines, in San Diego.  This is a great opportunity to hear from intriguing speakers (including Mark Fleming, Chris Whalen, and more), enjoy one of California’s best luxury resorts, and most importantly network with your industry peers (no sales meetings and no exhibit halls!) to focus on building and strengthening relationships in the mortgage industry.

Register for the April 4th MCT Webinar: Navigating the Waters of MSR Sales.

US Bank Correspondent is providing an opportunity to join an upcoming collaboration in Bellevue WA on Wednesday, April 10th. This exclusive event, presented by Freddie Mac, U.S. Bank and MGIC, will give you more details on down payment options for first-time homebuyers.

The MBA of Greater Philadelphia Annual Past President’s Dinner will be April 25th and highlights me, Rob Chrisman, as a Keynote Speaker. This is a great networking opportunity as it is generally attended by senior executives at various companies.

Do you know what factors influence home loan rates?  Can you explain the reason why rates move to your partners and clients?  If not, join MMG Chief Market Analyst Bill Bodnar for a fast-paced 30-minute call on Wednesday, April 3rd at 1:00 p.m. ET. Live Q&A will take place after the webinar. Click here to save your seat. Can’t make it? All registrants will receive the replay and presentation slides—PLUS a document that outlines the presentation so you can easily repeat this information to all of your partners.

Join MBA St. Louis and its distinguished speaker Mr. Anthony Merkel for a discussion of the ethical sales techniques and strategies that individuals and teams can use to immediately grow their sales. This luncheon and program are scheduled for April 11th, 11:00-1:00 at the Orlando Gardens – Dorsett Location.

In Colorado CoAMP is hosting a luncheon with Rob Chrisman on Friday, April 19th from 11:00-1:00. Registration deadline is April 12th with limited seating availability.

On Thursday, April 18th from 9:00-11:00, join CMLA for a LO Social Media Marketing Workshop presented by with Alex Caragiannides , Founder of BSM Vault. Registration information is available now.

With the first quarter of 2019 wrapped up, how did your company perform? Whether it was good, bad or average, to fully gauge how you’ve navigated the year so far, it’d help hear how other companies in the market are doing. Don’t miss out on the CEO Roundtable discussion at the National Association of Minority Mortgage Bankers of America’s CONNECT 2019 conference this year. Learn how to grow your margins and increase market share from top executives in the industry. Register HERE to lock in early bird pricing for CONNECT 2019 in Atlanta from April 24 through April 27. Check out NAMMBA’s website for more information.

The American Mortgage Conference is at the Pinehurst Resort in North Carolina from April 29th-May 1st. Leading experts in the financial services industry, mortgage practitioners of every kind, policy makers and investors come together to discuss important issues in the mortgage field and to analyze what progress is being made in Washington.

Register for TMBA’s 103rd Annual Convention – April 28-30, 2019 at the Marriott Rivercenter in San Antonio, Texas. Hear amazing, industry-related speakers, take advantage of numerous networking opportunities, and learn priceless industry information, and updates at THE “must attend” event of 2019. Key Note Speaker is Dennis Miller. For Marriott Rivercenter Reservations call 800.648.4462 or online. Cut Off Date: April 6, 2019.

FAMC recently published its April Wholesale “Customer Training Calendar. Learn more about mortgage fraud, the Secrets to Being a Networking Superstar, how to Read a Credit Report in Under 5 Minutes, Making an Impression:  The Future of Facebook and Content that Converts, and Loan Officer’s Checklist for Success.

AFR is offering free training webinars! “Having access to information allows you to make better decisions. And better decisions lead to success. Which is why AFR offers our partners some of the best educational resources in the industry. From VA Renovation and One-Time Close, to Down Payment Assistance and more, click here for access to complimentary upcoming and on-demand webinars.

Genworth Mortgage Insurance provides complimentary online courses to help customers refresh skills and provide a great customer experience to borrowers. Tax season is upon us and Genworth can help you enhance your skills with both personal and business tax returns. There’s also Desktop Underwriter Training and the Secret to Being a Networking Superstar, among other training webinars. View the April Training Calendar here.

National MI University posted training classes being offered in April. April 3rd: 5 Habits of Highly Successful Salespeople – Turn Your Pitch into Money. Session 2 of 6 at 11AM

April 11th: Making an Impression: The Future of Facebook & Content that Converts at 12PM

April 18th: Appraisal Review, Recent Changes & What’s Ahead at 12PM. April 23rd: Live Email Makeovers by Kendra Lee at 10AM. To view the National MI full April Training Calendar, click here.

Capital markets

Optimal Blue’s hedge advisory experts and Jennifer Fortier, CMB, Principal at STRATMOR Group and author of “Demystifying Mandatory: The Beginners Guide to Implementing and Managing a Hedging Program for Residential Mortgages,” recently hosted a popular webinar titled “Hedging 101: Best Efforts to Mandatory.” In this informative webinar, lenders learned successful strategies to maximize basis point execution and how to combat market realities of shrinking volumes, margin compression, recruiting challenges, and cost pressure. Optimal Blue’s team also shared current research and analysis on rising best efforts-to-mandatory spreads, outlined the revenue impact of a mandatory execution strategy, and provided the step-by-step roadmap developed by Optimal Blue to guide scores of lenders through a successful transition to mandatory loan sale executions. If you missed the webinar, but are interested in the content – click to view or download the webinar now. Consider registering for other thought leadership webinars by visiting Optimal Blue’s webinar portal.

The recent U.S. Treasuries briefly paused from their rally Thursday to end on a mixed note as we saw some slight yield curve flattening. Movement was attributed to a weaker than expected pending home sales for February and stronger demand at Thursday’s 7-year note auction than Wednesday’s 5-year note offering. On the Chinese trade front, a U.S. delegation, which includes Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, arrived in Beijing for the latest round of trade negotiations that will continue through today. And on the Brexit front, British lawmakers rejected all eight alternative Brexit proposals during a series of votes that took place Wednesday evening, with the prevailing sentiment now that Prime Minister Theresa May’s Brexit deal is the best option available. The deal is up for vote again today.

We have lots of news to end the week, month, and quarter today. We have just received January Personal Income & Consumption (+.2%, +.1%) and the January Core PCE Price Index (1.8%). Coming up are March Chicago PMI, February New Home Sales, and Final March Michigan Sentiment Index. We begin today with agency MBS prices worse almost .125 versus Thursday’s close and the 10-year yielding 2.41%.

Did you hear that Julie Andrews, known for her role in Mary Poppins, will no longer endorse trendy cheap lipstick? It crumbles easily and makes her breath smell.

She explained, “The super cool fragile lipstick gives me halitosis.”

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, “Changes in the role of the LO and Their Compensation.” 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.)