Apr. 29: LO jobs; reverse, compliance, servicemember products; the CFPB is alive and well

When I was a kid in California, as with my parents and their parents, and their parents, flowers and fruits had seasons. Roses bloomed in the spring. There weren’t any peaches from October through June. Apricots & cherries were eaten in May and June, pomegranates in October and November, watermelon in the summer. (In fact, for most of human history, fruit was only available in a seasonal window and ancient humans would have gorged on fruit when available, using the carbs to pack on pounds to survive through lean times, or learned to preserve them.) Seasons had an end. For various reasons not anymore. Lenders and investors wonder if the lawsuits and settlements from ten years ago will ever end. Morgan Stanley just settled with California AG’s Mortgage-Backed Securities Probe for $150 million. GE Capital’s subprime WMC Mortgage filed for bankruptcy last week. The Chapter 11 filing, a rare step by a major company, comes just weeks after GE agreed to pay a $1.5 billion fine over WMC, a leading subprime lender that was shut down in 2007. Legal & regulatory issues continue – more below.

Employment

Houston-based lender NRL Mortgage is proud to announce that the company is now fully owned and operated by CEO Ron Zach, CPO Mewael Ghebremichael, and CSO Michael Allen, following their purchase of the company from its investment partner in March of this year. This transaction advances the executive team’s vision for the future of the company and allows them to boldly pursue sustainable, scalable growth. NRL Mortgage which is licensed in 47 states is positioned to reach record profits in 2019 and is seeking to acquire retail mortgage branches or mid-size mortgage companies between $500M – $1B that share its growth mindset and commitment to success. If you would like to discuss this opportunity and learn about NRL’s stellar leadership team, top-rated operational support, and award-winning corporate culture, reach out to Ron Zach for a confidential phone call.

Mortgage Investors Group recently announced that Gary Royal has joined its team to oversee the mortgage lender’s growth in new markets across the Southeast region. As MIG’s new VP, Southeast regional production manager, Royal will lead the Knoxville-based company’s efforts to expand its retail presence outside of Tennessee, where it has been the top residential mortgage lender for more than a decade. The expansion includes opening branches in select markets across the Southeast, including Alabama, Florida, Georgia, North Carolina and South Carolina. Since opening its doors in 1989, MIG has served more than 125,000 clients in excess of $20 billion. The firm has nearly 400 employees in 25 branch locations from Memphis to the Tri-Cities. MIG has also been the THDA top lender for 16 successive years and the #1 TN USDA Lender for the past 5 yearsInterested Branch Managers and Loan Officers should contact Gary Royal (404-376-4320).

The Joint Venture division of NewRez is looking to add mortgage professionals who have long-standing relationships with real estate brokers and builders to their team. “We are proud of our proven track record in launching, managing, growing, and sustaining profitable partnerships,” says Vince Daino, VP of Recruiting and Business Development. “With our best-in-class JV partnership platform, we are looking for professionals who are seeking a mortgage partnership solution for their real estate and builder partners that provides significant revenue potential in a 100% compliant manner.” The NewRez family brings over thirty years of experience in the JV space and is growing. To learn more about how NewRez can monetize your real estate partner’s mortgage referrals while minimizing capital requirements, contact Vince Daino.

Lender products & services

Announced last week, digital mortgage point-of-sale leader Maxwell is proud to announce its latest integration with Encompass® by Ellie Mae®. Maxwell’s bi-directional integration between Encompass and Maxwell enables lenders to send loan applications, synchronize borrower documents, and trigger status notifications to borrowers and real estate agents without ever leaving Maxwell. “Lending teams spend a lot of time jumping between different platforms to move a loan from application to clear-to-close,” explained Lindsay Hunt, head of product at Maxwell. “Maxwell has always prioritized the human element in our software — it’s what we stand for. We built our integration with Ellie Mae’s Digital Mortgage Solution to solve this and design a best-in-class experience that seamlessly links both platforms for the user.” To learn more about Maxwell and their new integration into Encompass, visit www.himaxwell.com. Maxwell gives your borrowers the online experience they expect from a modern mortgage lender; request a demo here.

While you are in NY for the MBA Secondary Conference, pop in and learn more about what is new in the reverse mortgage space. Chrisman blog subscribers have been extended a special promotional rate to a conference being hosted by the National Reverse Mortgage Lenders Association (NRMLA) in New York City, May 20-21. While FHA insures most reverse mortgages made in the US, there is a growing market for proprietary reverse mortgages with fewer restrictions, lower upfront costs and the ability to draw down more money that may be just as appealing to your older clients. NRMLA’s conference will introduce you to these mortgage products, how they work in the secondary market, and to the growing importance of reverse mortgages as a retirement planning option for homeowners 62+. Enter the promo code CHRISMANNY2019 to receive $100 off the current registration rate. For more information, contact Darryl Hicks.

Today, mortgage lenders are looking for ways to reduce compliance costs — without sacrificing quality. Finding a solution that can respond to the ebb and flow of your business needs will be essential in forming a savvy and time-saving compliance solution. With tailored compliance packages, Strategic Compliance Partners (SCP) can accommodate your ever-changing needs. Click here to learn more about our compliance solutions for Lenders.

Caliber Home Loans, Inc.– the nation’s #2 non-bank purchase lender – now participates in PENFED’s Dream Makers Grant Program. Dream Makers is a stand-alone down payment and closing cost assistance program provided by PENFED for military borrowers. Eligible borrowers can receive a grant ranging from $1,000 to $5,000. The grant is a 2-to-1 match of the amount the borrower pays into their mortgage. The Dream Makers Grant does not require repayment for any reason. This program is approved by the VA, allows for loans up to a 97% LTV, and can be used for purchases in all 50 states. To get started, a borrower should first apply on the website and upload a copy of their pre-approval letter with the application. Caliber is a lending national lender, and offers a wide range of government, conventional, jumbo and non-agency loans, in addition to participating in several down payment assistance programs.

CFPB & legal matters

The president and founder of a Falmouth mortgage company was sentenced in federal court in Boston in connection with defrauding the Government National Mortgage Association (Ginnie Mae) out of approximately $2.5 million. Robert Pena, 69, the president and founder of the now-defunct mortgage company, Mortgage Security, Inc. (MSI), was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 32 months in prison, two years of supervised release, and ordered to pay $2.5 million in restitution to Ginnie Mae. In October 2017, Pena pleaded guilty to an indictment charging him with one count of conspiracy and six counts of wire fraud.

Have regulations and politics exited from lending? Has the CFPB been de-fanged? No, and no. The Consumer Finance Protection Bureau is alive and well, despite not making headlines. Analysts believe that the CFPB’s proposed rules being considered are mostly intended to set a framework for the industry which makes it easier to identify bad actors and abusive practices, not to seriously disrupt the operations of established, compliant companies. Director Kathy Kraninger’s expressed intent is to focus the bureau on preventing consumer harm with an emphasis on consumer education and industry-friendly supervision.

The CFPB recently released a piece on financial service complaints from servicemembers. Remember its “monthly” complaint report, providing a snapshot of consumer complaints submitted across the country. For each state and the District of Columbia, the report provided statistics on complaint volume, the products and services generating the most complaints, company response rates, and a look at complaints from servicemembers and older Americans.

Last week the CFPB issued a Request for Information (RFI) on two aspects of the Remittance Rule from six years ago and requires financial companies handling international money transfers, or remittance transfers, to disclose to individuals transferring money information about the exact exchange rate, fees, and the amount expected to be delivered.

This month the Acting Director of the Office of Management and Budget (OMB) issued a memo requiring all agencies to provide new rules to it before they are issued. The OMB will then analyze the new rules and determine if it is major or minor. If it is deemed major, then Congress will perform a review and may decide to disapprove it. The Consumer Financial Protection Bureau (CFPB) would be impacted by this change as it would have to submit new rules and regulations to the OMB and await congressional action if the change was categorized as major. The memo indicates that this new process takes effect on May 11, 2019.

The CFPB has updated the Home Mortgage Disclosure Small Entity Compliance Guide to reflect amendments made by Section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act and the 2018 interpretive and procedural rule. You The updated guide is available on the Bureau’s website.

Remember that the CFPB published a blog post on eClosings that covered some interesting territory. As an advocate for electronic closings, the CFPB sees the benefits to the consumer as ease of understanding, ease of access, and decreasing the pressure to review certain documents. The CFPB found consumers involved in a 5-month pilot program a few years ago, to be: There is a lot paperwork to review at closing; I’m having trouble knowing who can answer my question; The whole process is painful and overwhelming. eClosing and technology, generally, help consumers better understand the transaction and reduce (some of) the stressors in a closing. Perhaps the biggest revelation was that 80% of Americans now live in a jurisdiction that accepts eRecording. Given those figures, a surprising number of Americans now have access to the fully electronic mortgage process.

In my travels around the United States many loan officers, and owners, are concerned that we’re heading toward NINA and NINJA loans and casting aside the Ability to Repay rules. ATR hasn’t been eliminated yet. Recall its original purpose. Though each individual provision included in the new regulations that banks must adhere to may not cause much burden for lenders in isolation, the combined impact of the numerous regulatory changes generated a multiplicative effect that is contributing to an environment of extreme caution among mortgage lenders. One such regulation that contributes a number of strenuous lender requirements is the ability-to-repay rule, detailed in the Dodd Frank Act and enforced by the CFPB.

The rule stipulates that lenders must ensure that borrowers are able to make timely monthly payments. While the intention behind the rule is to ensure borrower credit-worthiness and avoid the worst abuses that led to the housing bubble, the rule essentially requires lenders to document every potential element of borrower risk, no matter how small. Effectively, many lenders are forced to document issues that have little to do with lending risk, simply to remain in compliance. Additionally, the rule makes the lender liable for issues that may cause a borrower to not repay a mortgage in the future, exposing lenders to potential future litigation, the risk, scale and cost of which are largely unknown.”

Capital markets

Fed officials made it clear earlier this year that they had no plans to raise rates in the foreseeable future, citing the country’s slowing economic growth. They’re also under pressure from President Trump to keep rates as low as possible, whether they want to listen or not. However, the Commerce Department reported on Friday that the United States’ economy grew at a much better than anticipated rate of 3.2 percent last quarter. Might that prompt the Fed to rethink its interest rate outlook?

U.S. Treasuries experienced a curve steepening to close last week despite the 10-year yield breaking through 2.50 percent to touch 2.495 percent before closing yielding 2.51 percent. Friday we had the first look at Q1 GDP coming in stronger than expected on the headline due to net exports and inventories, but with a sizable downside miss in the inflation components. Yields on most durations fell to their lowest levels in nearly two weeks.

This week’s month-end calendar is quite busy, with all releases already out: Personal Income (+.1%) and Personal Spending (+.9%), Core PCE Price Index (a measure of inflation, it was unchanged). Additionally, Japan’s Nikkei is closed today and throughout the week for Golden Week, which will be highlighted by the start of an imperial transition.

We have a lot the rest of the week too! Tomorrow brings the February S&P Case-Shiller Home Price Index, Q1 Employment Cost Index, April Chicago PMI, March Pending Home Sales, and April Consumer Confidence. Wednesday we receive the usual Weekly MBA Mortgage Index, April ADP Employment, March Construction Spending, April ISM Manufacturing Index, and May FOMC Rate Decision. Thursday we receive Jobless claims, Preliminary Q1 Productivity and Unit Labor Costs, and March Factory Orders. The week closes with April Payrolls, Advance March International Trade in Goods, Advance March Retail Inventories and Advance March Wholesale Inventories, and April ISM Non-Manufacturing Index. We begin today with agency MBS prices worse a few ticks versus Friday and the 10-year yielding 2.51%.

Why is the man who invests all your money called a broker?

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. 27: LIBOR transition news; Agency & non-Agency developments in the capital markets; G-rated humor

If it weren’t for the capital/secondary markets providing liquidity for the primary markets, mortgage rates would be much higher. By the way, through thick and thin the Agency mortgage-backed security market has been just fine, and liquidity is superb. Let’s see what some of the issues are that originators should be cognizant of. They don’t have to know every detail, but awareness is good!

First, lots of servicers are nervous about having billions of dollars of adjustable rate mortgages without their index: the London Interbank Offered Rate. The Alternative Reference Rates Committee, established by the Federal Reserve and other US agencies, has recommended voluntary fallback language for new contracts that reference Libor for “reducing the risk of serious market disruption in the event that Libor is no longer usable”.

Agency action in the capital markets

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

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

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

On April 11, Fannie Mae began marketing its eleventh sale of reperforming loans, approximately 21,400 loans, having an unpaid principal balance of approximately $3.3 billion, as part of the company’s ongoing effort to reduce the size of its retained mortgage portfolio. Reperforming loans were previously delinquent but are performing again because payments on the mortgages have become current with or without the use of a loan modification. The terms of Fannie Mae’s reperforming loan sale require the buyer to report on loss mitigation outcomes and offer loss mitigation options designed to be sustainable to any borrower who may re-default within five years following the closing of the reperforming loan sale. Any reporting requirements cease once a loan has been current for twelve consecutive months after the closing of the reperforming loan sale. Interested bidders can register at http://www.fanniemae.com/portal/funding-the-market/npl/index.html. Fannie Mae will also post information about specific pools available for purchase on that page. Bids are due on May 7, 2019.

Fannie Mae priced its fourth Multifamily DUS REMIC in 2019 totaling $820.9 million under its Fannie Mae Guaranteed Multifamily Structures (GeMS) program on April 9, 2019. The geographic distribution was highest in CA (16.5%), TX (12.4%), NY (10.8%) and the average LTV of the loans was 64.7%. This second GeMS deal used the A3 structure to create a more call-protected tranche, and there was high demand for the near par, fixed-coupon A2 tranche in a market with little par paper to offer. All classes of FNA 2019-M5 are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal. Class A1 had an original face of $51.8 million, weighted average life of 5.89 years, a fixed coupon of 3.009%, and an offered price of 100.99. Class A2 had an original face of $579.2 million, weighted average life of 9.60 years, a fixed coupon of 3.273%, and an offered price of 101.49. Class A3 had an original face of $190.0 million, weighted average life of 9.78 years, a fixed coupon of 3.294%, and an offered price of 101.99.

On April 9, Fannie Mae priced its third credit risk transfer transaction of the year, Connecticut Avenue Securities (CAS) Series 2019-R03, an $857 million note offering that represents Fannie Mae’s fourth CAS REMIC transaction. CAS is Fannie Mae’s benchmark issuance program designed to share credit risk on its single-family conventional guaranty book of business, and Fannie will return to the market with a high-LTV loan transaction at the end of June (CAS 2019-R04). The reference pool for this CAS Series 2019-R03 consisted of close to 89,000 single-family mortgage loans with an outstanding unpaid principal balance of approximately $21 billion with loan-to-value ratios of 60.01 percent to 80.00 percent acquired from May through November 2018. The loans included are fixed-rate, generally 30-year term, fully amortizing mortgages. Fannie Mae will retain a portion of the 1M-1, 1M-2, and 1B-1 tranches in order to align its interests with investors throughout the life of the deal. Fannie Mae will retain the full 1B-2H first loss tranche. Pricing is as follows. Class 1M-1 is $204.126 million with an S&P/Morningstar rating of BBB+ sf / A and priced at 1-month LIBOR plus 75 bps. Class 1M-2 is $500.109 million with a rating of B+ sf / BBB- and a price of 1-month LIBOR plus 215 bps. Class 1B-1 is $153.095 million, unrated, and priced at 1-month LIBOR plus 410 bps. With the completion of this transaction, Fannie Mae will have brought 33 CAS deals to market, issued $39 billion in notes, and transferred a portion of the credit risk to private investors on more than $1.2 trillion in single-family mortgage loans. CAS REMIC notes are issued by a bankruptcy-remote trust. The amount of periodic principal and ultimate principal paid by Fannie Mae is determined by the performance of a large and diverse reference pool.

On April 4, Fannie Mae announced the completion of its first and second Credit Insurance Risk Transfer (CIRT) transactions of 2019, covering $29.7 billion in unpaid principal balance of 21-year to 30-year original-term, fixed-rate loans previously acquired by the company. CIRT 2019-1 and 2019-2 are part of Fannie Mae’s ongoing effort to reduce taxpayer risk by increasing the role of private capital in the mortgage market. To date, Fannie Mae has acquired about $8.9 billion of insurance coverage on $345 billion of single-family loans through the CIRT program.

Twenty insurers and reinsurers provided coverage on the largest combined pool of loans ever acquired through CIRT at one time, and these two transactions marked the first time that the CIRT structure has covered the modification costs related to loan workouts. In CIRT 2019-1, which became effective February 1, 2019, Fannie Mae will retain risk for the first 60 basis points of loss on a $11.8 billion pool of single-family loans with loan-to-value ratios greater than 60 percent and less than or equal to 80 percent. If the $70.6 million retention layer is exhausted, reinsurers will cover the next 325 basis points of loss on the pool, up to a maximum coverage of approximately $382 million. With CIRT 2019-2, which also became effective February 1, 2019, Fannie Mae will retain risk for the first 60 basis points of loss on a $17.9 billion pool of single-family loans with loan-to-value ratios greater than 80 percent. If the $107 million retention layer is exhausted, reinsurers will cover the next 325 basis points of loss on the pool, up to a maximum coverage of approximately $582 million.

Coverage for these deals is provided based upon actual losses for a term of 10 years. The covered loan pool for the CIRT 2019-1 and CIRT 2019-2 transactions consist of fixed-rate loans that were acquired by Fannie Mae from April 2018 through November 2018. A summary of key deal terms, including pricing, for these new and past CIRT transactions can be found at http://www.fanniemae.com/resources/file/credit-risk/pdf/cirt-deal-pricing-information.pdf. Depending on market conditions, Fannie Mae expects to continue coming to market with CIRT and CAS deals that allow private capital to gain exposure to the U.S. housing market.

Back in early March Fannie Mae priced the $1 billion Connecticut Avenue Securities (CAS) Series 2019-R02 note offering, its second credit risk transfer transaction of the year and third CAS REMIC transaction. CAS is Fannie Mae’s benchmark issuance program designed to share credit risk on its single-family conventional guaranty book of business. The transaction was met with high demand and including several first-time participants, creating demand for the next deal, CAS 2019-R03, another low-LTV transaction, at the end of March. The reference pool for CAS Series 2019-R02 consists of more than 107,000 single-family mortgage loans with an outstanding unpaid principal balance of approximately $27 billion. The reference pool will include one group of loans comprised of collateral with loan-to-value ratios of 60.01 percent to 80.00 percent acquired from May through September 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. Fannie Mae will retain a portion of the 1M-1, 1M-2, and 1B-1 tranches in order to align its interests with investors throughout the life of the deal. Fannie Mae will retain the full 1B-2H tranche. Class 1M-1 at $200.48 million, will be priced at 1-month Libor +85 bps and is expected to receive a BBB+ sf / A rating. Class 1M-2 at $613.99 million, will be priced at 1-month Libor +230 bps and is expected to receive a B+ sf / BBB- rating. Class 1B-1 at $187.96 million, will be priced at 1-month Libor +415 bps and will not be rated. Fannie Mae’s CAS program is the most actively traded credit risk transfer product in the market with 32 CAS deals brought to market since the program began. Fannie Mae has issued $38 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.

Non-QM? Sure thing!

On April 23, Verus Mortgage Capital (VMC) finalized a $372 million residential mortgage-backed securities transaction (2019-INV1), the tenth for the non-QM correspondent investor, comprised of 976 loans with an average balance of $380k, 63 percent LTV, and 727 FICO. 2019-INV1 was VMC’s largest investor loan transaction to date and the third transaction issued by Verus that was backed by non-owner-occupied rental loans. VMC purchases loans in all 50 states and the District of Columbia and focuses solely on the non-agency market, offering correspondent lenders a wide range of home financing products for credit worthy borrowers. Verus offers residential non-QM, investor rental and fix and flip loan programs and has purchased in excess of $5 billion in expanded, non-agency loans since its inception. You can learn more about VMC’s investor products by visiting www.verusmc.com.

(Thanks to California’s Gary E. for sending this oldie but goodie.)

A woman brought a very limp duck into a veterinary surgeon. As she laid her pet on the table, the vet pulled out his stethoscope and listened to the bird’s chest.

After a moment or two, the vet shook his head and sadly said, “I’m sorry, your duck, Cuddles, has passed away.”

The distressed woman wailed, “Are you sure?”

“Yes, I am sure. Your duck is dead,” replied the vet.

“How can you be so sure?” she protested. “I mean you haven’t done any testing on him or anything. He might just be in a coma or something.”

The vet rolled his eyes, turned around and left the room. He returned a few minutes later with a black Labrador Retriever. As the duck’s owner looked on in amazement, the dog stood on his hind legs, put his front paws on the examination table and sniffed the duck from top to bottom. He then looked up at the vet with sad eyes and shook his head.

The vet patted the dog on the head and took it out of the room. A few minutes later he returned with a cat. The cat jumped on the table and also delicately sniffed the bird from head to foot. The cat sat back on its haunches, shook its head, meowed softly and strolled out of the room.

The vet looked at the woman and said, “I’m sorry, but as I said, this is most definitely, 100% certifiably, a dead duck.”

The vet turned to his computer terminal, hit a few keys and produced a bill, which he handed to the woman.

The duck’s owner, still in shock, took the bill. “$1,500!” she cried,”$1,500 just to tell me my duck is dead!”

The vet shrugged, “I’m sorry. If you had just taken my word for it, the bill would have been $20, but with the Lab Report and the Cat Scan, it’s now $1,500.”

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. 26: Marketing, LO jobs; tech, non-QM products; HFA/DPA news; training & events; TBA trading tool

M&A is rampant, big and small, and is expected to continue throughout 2019. There’s a constant stream of individual branch or small company moves, but the latest headline-grabbing news came from a majority stake in Canada’s Lendesk being purchased by Rock Holdings, the parent company of Quicken Loans. Lendesk is provides technology to “connect mortgage brokers with the country’s top lenders.” Lendesk will continue to operate independently from its Vancouver headquarters. Recall that in 2017 Rock Holdings, via sub Rocket Homes, purchased Toronto-based OpenHouse Realty, specializing in the development of proprietary home and real estate agent search technology.

Employment

Are you looking to grow your Mortgage business in 2019? Now is the time to join a company that is rapidly growing! Over the past 25+ years, First World Mortgage has extended its footprint throughout Connecticut and Massachusetts with eight convenient branches. “We are a locally owned and operated company with full in-house Underwriting and Operations team. First World Mortgage is ranked the #1 First Time Homebuyer in Connecticut and has been nominated as one of the Top Work Places by The Hartford Courant for the last 6 consecutive years! We are currently looking for motivated, experienced Mortgage Loan Officers to join the First World Mortgage family and looking to build offices around the right teams. We offer a Full-Service Marketing Department and Business Development Team that will help you build your business and referral partner relationships. Come experience the difference!” Contact VP of Business Development Lana Ochs.

AmeriFirst Financial Inc. is proud to announce Tim Walsh has joined the Senior Executive Management Team. Tim will serve as the Chief Production Officer on the Corporate Leadership team. Tim served as the President of Affinity Lending at Finance of America and has established and grown some of the industry’s most successful operating entities serving clients in mortgage origination, servicing, loss mitigation and foreclosure trust services. He joined Finance of America Holdings from Ditech, a national direct lender where Mr. Walsh served as S. VP/Divisional Manager and Head of Affinity Relations, and previously as President and CEO of United Tech Lender Services, a nationally recognized default management company, where he was responsible for building the organization from inception to dramatic growth. Tim attended Waldorf University and Texas Lutheran University and received accreditation from the University of North Carolina at Chapel Hill’s Kenan-Flagler Business School. To learn more about opportunities and the exciting, energetic culture at AmeriFirst Financial Inc. please contact Renee Zabel.

Calyx Software is expanding its high-impact customer training and marketing teams. Join this established, forward-thinking industry leader. Calyx is currently seeking two associates for its Professional Services Group (PSG). Responsibilities include online and onsite client training, creating and implementing training material, as well as educating clients on industry best practices. Must have 10 or more years of experience in the mortgage industry (NMLS licensed). In addition, the company is looking for a brand marketing manager. Reporting directly to the Marketing Director, this individual will develop, execute, and manage internal and external marketing plans to meet organizational objectives, drive new sales opportunities, and support active usage of company products. Must have five years of marketing experience, with a background in the mortgage industry preferred. All three positions are based in Dallas, TX. Email your resume to SAMO@Calyxsoftware.com.

Caliber Home Loans, Inc. has over 1,400 Loan Consultants across the country, who are some of the Best & Brightest producers in the industry! “Each and every one has their own reasons for joining Caliber. Branch Manager Chris Washburn, for example, has three reasons he chose Caliber – technology, distributed operations and direct lending. In the Midwest, Caliber recently added Sales Manager Jack Shotbolt to the ranks of its best and brightest. His Divisional Vice President John Montgomery said, “We’re excited to have Jack join us as he brings strong credentials that will assist us in our growth throughout the Midwest. We look forward to growing in new markets where Jack has great relationships.” To view more testimonials from Caliber employees, click here. Caliber is looking for the best, brightest and most passionate producers in the mortgage industry to join us. To learn more about Caliber, contact Jeremy DeRosa or visit www.joincalibernow.com.”

A $2.8B mortgage bank headquartered in the Southwest is looking for a Vice President of Marketing. Ranked among the Top 50 Lenders in the United States and one of the Best Places to Work in the Southwest, with an exceptional corporate culture, dedicated to giving back to the communities it serves. Candidates will have 7 to 10 years of solid marketing management experience, with at least 3 years in the mortgage industry. Must have a strong marketing through branding background, along with success in implementing state of the art marketing platforms.  The ideal candidate will have experience managing an advertising budget of over $4 million, driving proven, measurable results. The compensation range is $140,000 to 180,000, including base + bonus.  Must be willing to relocate to Southern Arizona. If you are ready to work for a dynamic and growth-minded mortgage lender, please send your resumes to Anjelica Nixt.

Lender products and services

The leader in non-QM Angel Oak Mortgage Solutions is on the road again in May. Representatives will be speaking at the Chicago Mortgage Originators Expo on the 2nd, the CA Mortgage Expo on the 9th and the Suncoast Mortgage Expo on the 21st. We’ll be exhibiting at the Greater Sacramento CAMP Chapter tradeshow on the 1st and the Mid-Atlantic Regional Conference on the 13th. You can find us on the golf course at the FAMP SW Chapter Annual and The MBA of South Florida golf tournaments on the 3rd and the MAMP Annual Charity Golf Tournament on the 21st. And course, we’ll be in NYC for the MBA National Secondary Conference. If you’d like schedule time to discuss how we can help you grow your business using non-QM at any of these events, contact your Account Executive.

Floify is determined help you create a seamless mortgage experience your borrowers will absolutely love! Floify’s deeply customizable point-of-sale solution combined with their massive suite of integrations you’re likely already using, can provide your borrowers with total transparency, easy access to their loan file, and empower them to be proactive throughout their loan process. Imagine not having to answer mundane borrower questions, like “What interest rate did I quality for?”, “When is the inspection?” or, “How much did the home appraise for?” Now all of this info can be easily accessed by your borrowers from one location with a single sign-on using Floify. And when you provide this level of convenience, you will not only enhance your borrowers’ satisfaction, but also save your team’s phones and emails from eager borrowers wondering how their loan is progressing. To see the seamless mortgage experience Floify can help you deliver, request a demo!


HFA & DPA mania

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

Registration is now open for the 2019 NALHFA Annual Conference, held May 15-18, at the Hilton Denver City Center in Denver, CO. View all the conference details on the website. Go scope out some CRA opportunities.

Yesterday the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2019-07, which announced an extension of the effective date of ML 2019-06, Downpayment Assistance and Operating in a Governmental Capacity. This ML was originally published and communicated via FHA INFO 2019-11 on April 18, 2019. “The guidance provided in ML 2019-06 will be effective for case numbers assigned on or after July 23, 2019, rather than the originally published effective date of April 18, 2019.”

US Bank Home Mortgage published Seller Guide 2019-003 with HFA Reminders and Clarifications.

US Bank Correspondent has updated and clarified its HFA overlay matrix: topics and corresponding sections of HFA division lending guide, credit, manual underwriting, manufactured homes, manufactured homes limited POA and special levied assessment.

U.S. Bank Correspondent/HFA provided information on Detached Structures: Best Practices for Loans in Flood Zones A or V.

Land Home Financial Services offers CalHFA Down Payment Assistance. For additional information, email Mark.Sheridan@LHFS.com.

As announced in CalHFA Program Bulletin #2018-16, CalHFA is requiring the use of the newest CalHFA Borrower Affidavit and Certification. The CalHFA Borrower Affidavit and Certification is simpler and contains fewer boxes to check. A fillable version of the affidavit is available on the CalHFA Forms webpage. Borrower(s) may sign the form electronically.

Trainings and Events into early May

Fannie Mae is offering a New Bankruptcy and Foreclosure training module.

Register for a free webinar Renovation 101 presented by Land Home Financial on April 25th at 11:00 PDT.

Are you a CRA wiz? Here’s a webinar on the future of the program.

Join the OMBA, May 13-15, 2019 for the OMBA Annual Convention, “Journey To the Top”, at the Columbus Marriott NW in Dublin, Ohio.

Get expert insight on Supreme Court dynamics with MBA’s Legal Issues and Regulatory Compliance Conference May 5th-8th. Register now.

Registration is currently open for FHA’s free, on-site training in the San Juan Field Office on Tuesday, May 7th. This training will provide an overview of FHA underwriting procedures and address a number of industry-related frequently asked questions as outlined in FHA’s Single-Family Housing Policy Handbook 4000.1.

On May 8th, FHA is offering a free, on-site Underwriting Workshop in San Juan. This instructor-led, on-site training will focus on a hands-on training in which underwriters will apply the 4000.1 handbook to fictional scenarios. Scenarios include Rate and Term refinance, Cash Out, refinance, Simple Refinance and Purchase transactions.

On May 9th in San Juan, FHA is offering its free on-site Appraisal Training. The training will cover FHA appraisal requirements, including appraisal protocols and updates to appraisal policy as outlined in the Single-Family Housing Policy Handbook 4000.1. Advanced registration is required by May 3rd.

The Mid-Atlantic Regional Conference, May 13-15, is calling all exhibitors to the MGM/National Harbor, May 13th-15th. The MBA/MW and MMBBA have joined together for this regional mortgage conference with over 400 local mortgage professionals already registered, but there’s still time to become a premier exhibitor. Mortgage professionals in Maryland, DC, Virginia and the greater Mid-Atlantic area are invited to hear from the best and brightest minds in mortgage banking today as they share their outlook and strategies on how to navigate through this ever-changing environment. Seating is filling up fast! Register at marcmba.org today while you still can. Check out the current agenda.

On May 14th, join Secure Insight for its quarterly free webinar Fighting Wire Fraud: Latest Tips. Email Amanda for registration apadd@secureinsight.com

Join the OMBA on May 13th-15th for the OMBA Annual Convention: “Journey To the Top”, at the Columbus Marriott NW in Dublin, Ohio. Including 8 hours of continuing education for non-bank lenders, there will be sessions on topics such as eNotes & Mortgages, Compliance & Regulatory Hot Buttons, Foreclosure Legislation & Litigation, Wire Fraud Risks in Today’s Market and much more.

Capital markets

MCT will unveil a digital TBA trading tool in a client-exclusive webinar on May 9th. Dubbed Trade Auction Manager (TAM), the browser-based software facilitates the bidding and exchange of TBA mortgage-backed securities used by lenders to hedge their open mortgage pipelines. Following in the footsteps of MCT’s BAM whole loan trading platform, TAM digitizes a formerly phone-based manual process. Regional broker-dealers compete for a higher volume of trade requests via browser or API, while lenders gain in efficiency and profitability thanks to expansion and automation of the competitive process. “TAM is changing the paradigm for the mid-size lender, increasing liquidity and transparency while connecting them digitally with their regional dealers for the first time,” said Phil Rasori, COO. TAM is included for MCT’s pipeline hedging clients, while a stand-alone offering is expected in May. Clients may contact their representative for webinar registration; interested parties are encouraged to subscribe for TAM updates.

It was a humdrum day for markets Thursday as U.S. Treasuries paused in action after two days of solid gains including the 10-year closing +1 bp to 2.53% after another dose of dovishness from central banks. The People’s Bank of China indicated it will quickly implement the lower reserve requirement ratios for medium and small banks while the Bank of Japan and Sweden’s Riksbank both said that rates will remain at their present levels for longer than previously expected. Additionally, the Bank of Japan adjusted its forward guidance to note that rates will be kept at extremely low levels until at least the spring of 2020. The Federal Reserve Bank of Atlanta lowered its GDPNowcast for Q1 GDP growth ahead of today’s release of the advance GDP report from the Bureau of Economic Analysis. Domestically, Durable goods orders for March rose well beyond expectations as business spending accelerated encouragingly, while the headline number for initial jobless claims was disappointing. And the U.S. Census Bureau reported that Q1 homeownership fell 0.6% versus the high Q4 reading of 64.2% and well below the 2004 high of 69.2%.

There are only two domestic releases to close the week. The first look at Q1 GDP is the highlight of today’s calendar (+3.2%, PCE Deflator down to 1.3%). Michigan sentiment (fApr) is next up at 10:00am with markets expecting a slight uptick. We begin today with agency MBS prices up a couple ticks and the 10-year yielding 2.53%.

I traveled to Atlanta this morning for the NAMMBA event, and as I drove into a parking lot, I noticed that a pickup truck with a dog sitting behind the wheel was rolling toward a female pedestrian. She seemed oblivious, so I hit my horn to get her attention.

She looked up just in time to jump out of the way of the truck’s path, and the vehicle bumped harmlessly into the curb and stopped. I rushed to the woman’s side to see if she was all right.

“I’m fine,” she assured me, “but I hate to think what could have happened to me if that dog hadn’t honked.”

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. 25: AE jobs; warehouse, underwriting products; Agency news – HomeReady & cannabis

In low down payment and HFA news, HUD, dba the FHA, has agreed to a 90-day stay in implementation of Mortgagee Letter 19-06 (regarding down payment assistance) to have a 90 day comment period. The flurry reminded the industry that there are lots of options out there for low down payment loans. For example, Wells Fargo’s retail arm offers its 3% down “yourFirst Mortgage®.” Over in conventional land, there is something interesting as well. Anyone interested in lending to borrowers in that industry should read, “Fannie’s HomeReady Program Allows for Cannabis Industry Financing.” Lots more conventional conforming news below.

Employment & personnel moves

NewRez Wholesale, a nationwide and heavily capitalized lender, is looking for experienced Account Executives with an entrepreneurial spirit to join its growing team. Opportunities are available in the following areas: Miami, Minneapolis, Detroit, Houston, Phoenix, Denver, Chicago and northern California. “We are excited to bring new talent to the team,” says Mark Melini, National Wholesale Sales Manager. “Our growing product suite, flexible lending guidelines and fast broker onboarding process makes NewRez a great place to take your career to the next level. To learn more about available opportunities, contact: John McElhone for Miami, Dave Weatherford for Minneapolis, Detroit, Houston, Phoenix, Denver, and Chicago, and Mark Melini for northern California.

Congrats to Carolyn Covington who just started as Sales Account Executive with MyAMC. And to Jerry Godfrey, California Capital Mortgage Company’s new VP of Mortgage Originations. CCMC is licensed in 4 western states (CA, UT, ND, & MT) with 6 more coming soon.

Lender products and services

From industry-leading technology to professional expertise and convenient education opportunities, AFR offers an impressive range of value-added services to its broker partners: access to the secure online AFR Loan Center, which allows you to monitor and manage your loan pipeline 24/7 from virtually any device; free AFR University Training and Certification in unique programs for Manufactured Housing, Renovation Lending and One-Time Close construction; complimentary On-Demand Processing, so you can remain focused on production; automatic notifications when a house you closed with AFR is listed for sale or when AFR receives a payoff request; integration with various broker-focused origination platforms; and, an Alexa skill that allows you to check things like expiring rate locks and find out which loans have recently closed — all without lifting a finger. If those weren’t enough reasons to partner with AFR, you can find even more by visiting www.afrwholesale.com. Questions? Email

sales@afrwholesale.com (1-800-375-6071).

Regardless of market conditions, top producers always are able to stay out in front of the pack. Maxwell recently interviewed some of the country’s top-producing originators to understand how they’ve reached (and maintained) such a high level of success in a fluctuating market. Their new eBook, “14 Habits of High-Producing Loan Officers,” highlights the tips and tricks that make them stand out from the competition. An exclusive to Rob Chrisman subscribers, this eBook is a must-read for ambitious managers and originators looking to elevate their performance. Download your complimentary copy here.

MortgageFlex Systems believes in the power of strong integrations and relationships. This is still a people business where trust is at the core. Our seamless integrations with leading industry partners like IDS, Mercury, Essent, Arch MI, and our digital POS partner MortgageHippo allow us to bring more value to our lenders all while driving down the cost to originate. From blind integrations to bundled cost we focus on working synchronically with partners to provide the most simple and efficient solution to all lenders. At the end of the day, people want a partner and product they can rely on. A partner that will remain transparent from start to finish. It boils down to the power of strong integrations. MortgageFlex Systems will be at TMBA 103rd Annual Convention booth #108. Come visit John if you’d like a partner instead of just a vendor.”

Today’s lenders are expected to invest in technology that streamlines workflows and reduces operational costs, and they should expect the same commitment from their appraiser partners. Enter Anow, an appraisal office management platform that turbocharges appraisal turn times. Since its adoption by America’s largest independent appraisal management company, Nations Valuation Services, Anow has been helping the AMC cut appraisal times and saving its lender customers money on fees. According to NVS EVP of Operations Matthew Scott: “With Anow, we can provide lenders who choose to work with us a better overall borrower experience by expediting the appraisal, which leads to more repeat customers, more referral business and stronger loan pull-through.” Read the full case study to learn how Anow is revolutionizing appraisals for lenders and appraisers, or email Keith Ellis to request a demo.

What distinguishes a premier warehouse lender from the other choices available in this market? Find out by meeting Axos Bank (formerly BofI Federal Bank) Warehouse Professionals at the TMBA Annual in San Antonio. Our diverse product offerings include a broad array of non-agency/non-QM investors, loan amounts up to $5MM, facilities from $5MM to $125MM, and agency and government loans with no overlays. With extended funding times up to 5:30 pm ET and exceptional customer service just a phone call away, Axos Bank is an essential partner to help grow your business. Contact Eric Nelepovitz or Robert Martini at (888) 764-7080 to set up a meeting at the TMBA Annual.

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

New Construction Condo Market = Securitized Non-QM Market!!! Yes – you read that right. The 53,000 new construction condos built in 2018 equates to roughly $13 billion of closed loans which is approximately the size of the securitized non-QM market. So while non-QM gets the fanfare these days – new construction condos are a mainstay product for any successful LO. Do you want to dominate your competition in the new construction condo field? If so, Quicken Loans Mortgage Services (QLMS) is the only answer. QLMS just changed the new construction condo financing game. Introducing CondoMAXimum! Check out these mind-blowing benefits! • No non-warrantable pricing adjustment! • 25% pre-sale requirement instead of 50% with most lenders! • Only the building the client’s unit is in needs to be complete, not the entire phase! Blow away builders! Amaze realtors! Wow clients! Contact your QLMS AE about Condo Max today! And if you’re not approved with QLMS yet, contact us at http://bit.ly/QLMSChrisman. CondoMAXium – because everyone loves that “New Construction Condo Smell!”

Fannie & Freddie, conventional conforming changes roll on

Freddie Mac’s Guide Bulletin 2019-8 covers changes to approved Servicer reimbursement amounts. Updated requirements for insurance loss settlements. New required form to request a partial release of a lien or grant of an easement. Changes and reminders related to the Investor Reporting Change Initiative.

Fannie Mae’s Guide update SVC 2019-02 expands insurance loss proceeds requirements, clarifies servicer responsibilities after a disaster event, removes Mortgage Electronic Registration System content from the Servicing Guide (by consolidating it in the Selling Guide), and more. Also included are updated allowable foreclosure fees for Washington, New Hampshire, and Maine.

As a result of the Fannie Mae periodic review of risk-based pricing, it is implementing a 25-basis point (0.250%) loan-level price adjustment (LLPA) for loans secured by second homes with LTV ratios greater than 85%.

Fannie Mae posted a resource that summarizes recent updates to the Selling Guide and Desktop Underwriter® (DU®) validation service related to the Tax Cuts and Jobs Act.

As of May 20, Fannie Mae will issue Single-Family securities backed by fixed-rate and adjustable-rate mortgage loans or bonds through updated Mortgage-Backed Security (MBS) Fedwire instructions. Read the complete details.

PennyMac Announcement 19-17 provides updated information to Conventional and Government Purchase Special LLPA.

PennyMac posted Announcement 19-24 regarding updates to Conventional LLPAs.

A recent Citi Correspondent Lending bulletin contains credit policy updates such as overlay changes to DU and LPA transactions and occupancy requirements on purchase transactions. New notices to HAR programs and CITI underwriting fees as well as clarifications to topics such as Power of Attorney and UCC filing requirements.

loanDepot Wholesale and Correspondent’s What’s New Bulletin covers information regarding Jumbo Advantage and Equity Access program updates, VA appraisal changes and information regarding recent Freddie Mac and Fannie Mae bulletins.

Land Home Financial Services shared information that Fannie Mae has issued clarification which confirms Deferred Action for Childhood Arrivals (DACA) may be considered eligible borrowers. Applicants in the US with deferred action by USCIS must have a valid employment authorization document with C33 category and must meet all other Fannie Mae credit eligibility requirements. At this time, this is limited to Fannie Mae Loan Products.

RoundPoint Mortgage Servicing Corp. been approved by Fannie Mae and Freddie Mac to service and purchase electronic promissory notes, or eNotes. The arrangement allows RoundPoint to service new loan types and makes it a “one-stop shop” for counterparts looking to sell mortgage servicing rights (“MSRs”). RoundPoint set out to be approved for servicing eNotes by implementing a digital mortgage solution approved to use the MERS® eRegistry. The solution went through detailed testing with Fannie Mae and Freddie Mac along with a comprehensive review of all policies and procedures surrounding the management of eNotes.

Ditech Approved Correspondent Clients should note that effective Wednesday, April 17, 2019 with the 10:00 A.M. eastern rate sheet, ditech will be making loan amount LLPA adjustments for Conventional loans.

Mountain West Financial posted a bulletin regarding revised Fannie Mae DU Version 10.3 Release Notes.

Capital markets

Inflation? Regular Unleaded gas in the SF Bay Area is $4/gallon. Energy prices pushed consumer prices higher in March as tightening global crude oil supply drove up the price of West Texas Intermediate crude by nearly 50%. This has, in turn, led to high prices at the pump with the national average price for regular unleaded near $2.81 per gallon. The Producer Price Index increased 0.6 percent in March and is up 2.2 percent from a year ago. Energy prices saw their largest monthly gain since December 2009, and consumer prices increased 0.4 percent in March and similar to producer prices; saw a significant increase in energy prices. Neither, however, saw much change to prices excluding food and energy. On an annual basis, inflation remains within the Fed’s target and is currently no cause for alarm. Initial jobless claims hit a low not seen since October 1969 signaling labor market conditions remain very tight. Given the current economic conditions it is widely expected that the Fed will remain in pause mode during their upcoming meeting at the end of the month.

Rates: up some, down some. Yesterday was down some with U.S. Treasuries, and along with them agency MBS, rallying for the midweek session, including the 10-year dropping -5 bps to 2.52%, its lowest level in almost two weeks. There was some miscellaneous news from overseas not worth going into detail on, although in general it pointed to various slowing economies.

Like yesterday’s today’s domestic calendar is light like yesterday. We have already had the usual jobless claims () and durable goods orders for February (). At 11:00am the April KC Fed Manufacturing Index will be released. Treasury then has the $50 billion 1- and $35 billion 2-month bill auctions followed by $32 billion of 7-year notes. We begin today with agency MBS prices worse a few ticks and the 10-year yielding 2.52%.

I head to Philadelphia today to speak at the Past Presidents Dinner. Favorite things about folks from Philly?

You realize that your favorite desert is wooder ice. (It comes in churry, strawburry, and other assawrded flaverz.)

You find yourself using “Yo” and “Youse guys” when talking long distance to family members.

You know how to spell Schuylkill.

You think $2,500 a year for insurance on a 1977 Toyota Corolla is a bargain.

You find yourself at a nice restaurant thinking, “I wonder if they have cheese steaks?” or imagine breakfast without scrapple.

You believe the car on your left, flashing its turn signal and the driver pointing at your lane, wants you to close the gap with the car in front of you.

You can’t eat French fries without Cheeze Whiz.

You don’t think Wawa sounds funny.

You snub a cheese steak that isn’t on an Amoroso roll.

Your parents, brother, sisters, aunts, and uncles all live on the same block.

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. 24: Servicing, AE jobs; non-QM, document products; news from FHA, VA, HFAs; Compass & API

How often do you buy candles at retailer Pier 1? Me neither. Due to poor earnings Pier 1 Imports announced it will close another 45 stores (up to 150 if certain targets are not met). Sometimes reporters are prone to sensationalizing things (watch the folks in the background) but one thing that doesn’t need to be sensationalized are recent statements by Federal Reserve officials suggesting they are looking to determine the appropriate conditions for introducing an interest-rate cut, though one is not believed to be imminent. Federal Reserve Bank of Chicago President Charles Evans stated last week that a prolonged period of inflation below 2% would imply that “our setting of monetary policy is actually restrictive, and we need to make an adjustment down in the funds rate.”

Jobs

The Collingwood Group (a Situs Company), a business advisory leader in the residential housing finance industry, is hiring Servicing, Claims, and Conveyance professionals for remote and on-site opportunities throughout the U.S. Successful candidates will have experience in all aspects of residential mortgage servicing, experience in a mortgage banking, servicing or consulting firm is preferred. Specific experience working with FHA, VA, USDA, GSE and/or MI claims and/or servicing guidelines required. Familiarity with regulations such as RESPA, FDCPA, GLBA, and/or federal and state laws related to foreclosure and bankruptcy processes is preferred. Interested candidates should submit resumes to Rashida Dujue.

“Here we grow again! WesLend Financial is aggressively expanding its wholesale platform and is seeking highly motivated Sales Managers and AE’s nationwide, predominantly located in New York or California. As a mortgage banker licensed in 41states 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 us today at Employment@WesLend.com.”

“Of all the things we do at Stearns Wholesale Lending, our people is what we are most proud of – our employee and broker relationships mean the most! Our ability to carry out the individual and collective purposes of our team is fueled by continuing to make investments in our people and our technology. Personalized attention, competitive products and a deep respect for our Stearns Wholesale Team, have all contributed to 30 years of success. Over half of our Account Executives have tenure of 5+ years. Hear from Account Executive Jerome Sarason who has returned to Stearns Lending. Not only do we have a strong history, we have a bold future. Reach out to our leadership team wholesaleleadership@stearns.com and be part of our purpose!”

Jim Stryker has joined Movement Mortgage, a top 10 national retail mortgage lender, as a senior sales executive in the Western U.S. Stryker joins Movement, effective immediately, to lead sales and business development across key western states and growth markets. Known affectionately as “Stryker,” he brings 19 years of mortgage industry experience to Movement. He most recently served as a SVP and regional manager in the Pacific Northwest for another top 10 lender. “I am honored, grateful and incredibly excited to be at Movement Mortgage,” he says. “This is a company that represents what my life is about — ‘Together we are better!’ I love that Movement invests in its communities, loves and cares for its people, and at the same time, operates an incredibly successful, well-capitalized, independent mortgage business that is changing this industry for the better with an open heart. It’s a very special place and I’m honored, humbled and proud to be a part of it.” Email Stryker here.

Lender products & services

Caliber Home Loans, Inc.and Ellie Mae are excited to allow our lenders to now submit Condo, Pre-Close Renovation, Prior Review, and TRID loan packages via Encompass Investor Connect without having to access the Correspondent Lending Portal. Encompass Investor Connect ensures the delivery of accurate and compliant loan data and documents. You must be a mutual customer of Ellie Mae Encompass and Caliber in order to take advantage of this enhancement. For more information about Encompass Investor Connect, please contact your Caliber Sales Representative.

Non-QM can be tough to navigate. Nations Direct Mortgage will light the way with its new proprietary Non-QM Direct programs: Credit Direct for Full Doc borrowers outside of agency and jumbo guidelines, Income Direct offers Reduced Doc to qualify borrower income in non-traditional methods, andInvestor Direct offers multiple options to qualify both professional and first time investors. This product suite is supplemented with best-in-class broker support, including a Non-QM Help Team designed to handle everything from calculating bank statement deposits to pricing scenarios. “Having the ability to make direct decisions from our in-house credit team has resulted in significantly reduced turn times which has led to record breaking funding months” stated Martin Warren, Director of Lending. Celebrating its 13th year, Nations Direct is solely focused on wholesale partnerships. If you’re interested in learning more about Nations Direct or Non-QM Direct please contact Martin Warren.

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

Save the Date: On May 2nd loanDepot and mellohome will host its 3rd Thrive in Any Market event– a live and livestream event series designed for real estate and mortgage professionals nationwide. Don’t miss this insightful opportunity to learn from the brightest minds in our industry. Watch mellohome’s Chris Heller, CEO and Jerimiah Taylor, EVP, along with a panel of the nation’s top producing Realtors as they deep dive into strategies, tools and tips that will position you to succeed in and conquer today’s challenging real estate market. Space is limited, so register now at www.thrivelivestream.com so you can listen and/or watch from wherever you are. If you are in the Chicagoland area, register to join us for lunch and the live show at the Doubletree Suites by Hilton in Downers Grove, IL! To learn more about opportunities with Team loanDepot, click here.

NewRez Correspondent Lending has partnered with LoanNEX to provide lenders expanded access to NewRez products, with a specific focus on non-QM originations.

With the addition of the LoanNEX platform, NewRez lenders are able to quickly and confidently find a fit across NewRez’s non-QM loan programs. Lisa Schreiber, SVP of Correspondent Lending at NewRez said, “The LoanNEX non-QM product and pricing platform will allow lenders to access NewRez pricing and product eligibility. It provides for national exposure and a transparent, competitive process with other non-QM buyers.” Another way NewRez is focused on ease of process in our business! Contact your Sales Representative or learn more at www.newrezcorrespondent.com.

FHA, HFAs, VA, HUD, and Ginnie on the move

“The Michigan State Housing Development Authority (MSHDA) has received FHA’s Mortgagee Letter 19-06 issued April 18, 2019. MSHDA abides by FHA’s guidance and confirms we are a governmental entity, however we must evaluate the HUD Interpretative Rule with additional changes to the file content in order for loans to be insured. We are diligently working with our Attorney General’s office and anticipate we will have information over to your office within the next week. We will let all Participating Lenders know when the documentation is available. In the meantime, we appreciate your patience. Please contact our office if you have any further questions.”

Many states have weighed in, and/or you can contact them for more information. Iowa, Texas TDHCA 2019-005, California.

FHA released its first update to the 4000.1 handbook in the last 27 months. The handbook contains many changes and clarifications. It can be accessed by clicking here. Versions 5.0 and 5.5 update contains technical changes for consistency and clarity, and several policy updates. All stakeholders in FHA transactions should review and become familiar with the changes outlined in SF Handbook Transmittal, available in FHA’s Online Housing Policy Library, as revisions have been made throughout Sections I through V of the SF Handbook. Handbook changes identified in the Transmittal do not affect previously announced effective dates and are effective immediately.

FHA issued Mortgagee Letter (ML) 2019-06, Down payment Assistance and Operating in a Governmental Capacity, clarifying the documentation that FHA-approved mortgagees must obtain when originating mortgages for borrowers using funds from another person or entity to satisfy any portion of the MRI, including specific documentation when a governmental entity provides down-payment assistance to qualified borrowers within the governmental entity’s jurisdiction.

HUD published a proposed rule to improve the effectiveness and efficiency of Section 3 of the Housing and Urban Development Act of 1968. Section 3 requires employment, training, contracting, and other economic opportunities generated by certain HUD financial assistance to be directed to the greatest extent feasible to low- and very low-income persons, especially recipients of government assistance for housing, and to businesses that provide economic opportunities to low- and very low-income persons. See the proposed rule here.

Ginnie Mae announced its issuance of outstanding MBS increased to $2.058 Trillion. Click to read the press release.

Ginnie Mae announced that investors in Ginnie Mae mortgage securities backed by Home Equity Conversion Mortgages (HECMs) can now take advantage of a new Platinum securities execution – the Home Equity Conversion Mortgages Backed Security (HMBS) Platinum securitization channel. The HMBS option eases the administrative costs of holding multiple (and typically smaller) HMBS securities. Investors can create Platinum products using fixed-rate MBS (15- and 30-year mortgages); Weighted Average Coupon (WAC) Adjustable Rate Mortgage (ARM) and Jumbo Only Fixed mortgages. More of Ginnie Mae’s operational and technology modernization goals can be found in the Ginnie Mae 2020 white paper.

FHA (HUD) and Fannie Mae recently provided guidance for borrower eligibility and lending policies related to Deferred Action for Childhood Arrivals (DACA) recipients. AmeriHome is clarifying its borrower eligibility requirements to reflect this guidance, as well as the guidelines of Freddie Mac and USDA. Notably, the VA has not provided specific guidance to be followed if the Veteran’s spouse is a DACA recipient. Therefore, if the Veteran’s spouse is a DACA recipient, AmeriHome will require Prior Approval from the VA. Sellers are reminded that they remain responsible for meeting all applicable Agency requirements. Existing AmeriHome overlays requiring that each borrower have a valid social security number and requirements for Non-U.S. Citizen Proof of Lawful Residency Documentation are unchanged. The Borrower Eligibility sections of AmeriHome’s Agency program guides are updated to reflect details and the Government Overlay Matrix is updated with the VA requirement.

PennyMac posted a new announcement regarding Clarification on Ginnie Mae seasoning requirements.

Mountain West Financial posted details regarding recent VA changes to appraisal fees and turn times in select states, and Bulletin 19W-028 outlining changes to FHA Handbook 4000.1.

Ditech Financial issued a reminder with regard to the use of a power of attorney to execute any VA documents needed to obtain a VA loan.

PRMG is now permitting manufactured homes on its FHA Streamline and VA IRRRL products. Additionally, PRMG will now allow closing in inter vivos revocable “living” trust.

Capital markets

The evolution of your capital markets technology is crucial to your ability to compete profitably. At Compass Analytics, every product release is designed to help lenders meet coming challenges. The April release of CompassPPE™ is a perfect example, completing API integration to the pricing “black boxes” of every mortgage insurance provider, adds an API integration authentication option, and includes enhancements to the system’s sell-side capabilities. For secondary marketing and PPE administrators, the release includes new ways for users to stage and validate changes to guidelines and LLPAs before activating them.  With integration partners in mind, Compass has also made improvements to its Swagger-based API documentation site. CompassPPE™ is built to serve loan origination and secondary marketing professionals, whether your company originates $10 million or $5 billion a month. Contact

sales@compass-analytics.com to learn more.

Looking at the bond market, yesterday was a snoozer. U.S. Treasuries traded within a tight range with little data Tuesday including the 10-year closing -2 bps to 2.57%. New home sales in March showed solid sales activity and what could be if the decline in both the median sales price and mortgage rates persist. The solid reading exhibits some of the pent-up activity as a result of those two drivers depressing recently. Recall that March housing starts have slowed slightly, and are the weakest since May of 2017 and down 14% compared to a year ago. It’s all relative: housing starts were solid through May of last year.

This morning we’ve already seen MBA mortgage applications for the week ending April 19 (-7%, refis -11%, purchases -4%). We have the Treasury selling $20 billion in 2-year and $41 billion in 5-year notes. We begin today with agency MBS prices better by .250 and the 10-year yielding 2.53%.

Thank you to Myrtle C. for suggesting this dog video.

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. 23: CFO, lobbying, LO, AE jobs; u/w, subservicer products; vendors going ape – raising $, buying lenders, using blockchain

Should small, non-depository mortgage bankers be concerned about big banks renewing their interest in FHA loans? Probably. Bank of America is promoting its $0 origination fee FHA & VA programs. Speaking of low down payments, we have last week’s Mortgagee Letter 19-06. Bloomberg ran a story about “cracking down on no money down home loans,” and lenders reacted. For example, California’s Land Home Financial let clients know, “LHFS will be temporarily suspending all FHA GSFA, FHA CalHFA and FHA Within Reach Down Payment Assistance programs. This will include any state Housing Finance Agency, or city or state program where the borrower is receiving a grant or second mortgage. We are awaiting clarification from the various down payment assistance providers… Please review our conventional down payment assistance programs for an alternative.”

Employment

Top-ranked Inlanta Mortgage, Inc. is growing again, adding its newest office in Pensacola, Fla. The new office is led by Balenda Hetzel, Regional Production Manager, who also heads Inlanta’s Destin Branch Office. The new office includes a team of highly experienced mortgage professionals, including: Dina Thorsen, Senior Loan Officer; Tracy Bardin, Loan Officer; Michael Andrews, Loan Officer; Emory Smith, Licensed Mortgage Consultant; and Paul Thompson, Loan Officer Assistant. Drop Balenda and her new team a congratulatory email. Looking to be part of a fast-growing, top-ranked mortgage workplace with cutting-edge technology partnerships? Make plans to stop by our invitation-only reception at the MasterMinds Summit on June 5th and learn more about what makes Inlanta one of the Nation’s Leading Mortgage Companies. For an invitation, contact  Inlanta’s Shaun McGuire or Beth Juergens, Directors of Branch Development, or visit Inlanta’s career page to learn more about a career at Inlanta.

The National Association of Realtors is searching for a Senior Policy Representative for Financial Services, responsible for directly handling legislative affairs related to conventional finance policy matters. For complete job description and duties, please click here; questions can be sent to Andrea Moore.

On Q Financial, Inc., one of the Top 50 mortgage lenders in the United States and licensed in 45 states, is looking for a CFO. “On Q has consistently generated profits, has a strong balance sheet and is approved as a direct seller to FNMA, FHLMC and GNMA! We have a strong leadership team that embraces our core values and executes our mission and vision daily to continue to make us one of the strongest independent mortgage bankers in the industry.” If interested, please send resumes to Erin Dueck.

Fresh off another record-breaking quarter, non-QM lender Angel Oak Mortgage Solutions

added to its impressive roster of Account Executives in April. Kevin Perry came on-board in Atlanta, Ron Summers in Orange County, CA and Robin Kozelka in San Francisco. These AEs have gone through the first round of training and have been teaching brokers and correspondents how easy it is to work with Angel Oak. Angel Oak Mortgage Solutions is looking to add Account Executives in many additional markets across the country and Inside AEs in Miami. To learn more, view the latest job openings on the Careers Page or email Regional Sales Manager, John Wise.

National mortgage lender NewRez is looking for a producing sales manager focused on growth and expansion with leadership capabilities to join its new Joint Venture partnership in the Orange County and San Diego County area. “We have an exciting role available for a candidate who is ready to hit the ground running,” says Vince Daino, VP of Recruiting and Business Development. “The right person should be growth minded and able to work with our leadership to capitalize on an amazing opportunity with our new real estate partner.” Contact Vince Daino, VP of Recruiting and Business Development to learn more about this role and other open positions available within NewRez.

Is there a doctor in the house? The Agency Doctor Program is one of several new additions to Academy Mortgage’s “Academy Advantage” product portfolio since January. As the name implies, this program offers doctors and dentists low down payments and flexibility for student-loan debt and guaranteed projected income. A hot product for a reinvigorated refinance market is the 85 Equity Solution, which has no upfront MI and is a great alternative to an FHA cash-out refinance. Academy is one of the very few lenders offering the 85 Equity product as well as their new MI Buster Loans, also designed with no mortgage insurance required. Academy is building builder business nationwide with its One-Time-Close products, which combine construction and 30-year permanent financing into one loan. Gain the Academy Advantage: contact Chad Melin, VP of National Business Development, for more information on how Academy’s ever-expanding product portfolio can power your Potential.

Lender products & services

Digital mortgage point-of-sale leader Maxwell is proud to announce its latest integration with Encompass® by Ellie Mae®. Maxwell’s bi-directional integration between Encompass and Maxwell enables lenders to send loan applications, synchronize borrower documents, and trigger status notifications to borrowers and real estate agents without ever leaving Maxwell. “Lending teams spend a lot of time jumping between different platforms to move a loan from application to clear-to-close,” explained Lindsay Hunt, head of product at Maxwell. “Maxwell has always prioritized the human element in our software — it’s what we stand for. We built our integration with Ellie Mae’s Digital Mortgage Solution to solve this and design a best-in-class experience that seamlessly links both platforms for the user.” To learn more about Maxwell and their new integration into Encompass, visit www.himaxwell.com or request a demo here.

Completing a first mortgage transaction with a new customer is an achievement and – what should be – the start of a lifetime relationship. People want to do business with people, especially when it comes to making one of the biggest purchases of their lives – buying a home. Hear from Finance of America CEO Bill Dallas and Total Expert Founder and CEO Joe Welu as they examine how the relationship between loan officers and their customers has evolved, the key to earning consumer trust and how to keep customers coming back for life.

The industry is ready for a new type of dynamic relationship between a subservicer, lender, and their portfolio. Both customers and lenders deserve this, and it’s finally here. TMS’s industry-leading subservicing platform SIME was recognized for delivering this new type of revolutionary transparency that puts the customer at the center of the equation. For the second year straight, HousingWire named TMS a TECH100 winner, spotlighting the growing influence of SIME. This year, TMS was named again for the launch of Happinest Mobile, a new borrower-facing mobile app powered by SIME, and for being on the cusp of unleashing the power of SIME to the entire servicing world with its Blockchain patent. It’s an honor to be recognized for pushing the edge of innovation to move markets forward. Learn more here.

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

Vendor news

Last week we learned that Reali, a real estate tech firm, has acquired Lenda, an online mortgage lender backed by SF Capital Group, CreditEase Fintech Investment Fund, and Rubicon Venture Capital. “Reali’s goal is to create a seamless, innovative and superior customer experience during one of the most stressful moments in life, buying and selling a home, at a fraction of the cost. Using technology, Reali increases the efficiency of in-house real estate agents and loan offers, bringing simplicity to an antiquated, unnecessarily complicated process… Lenda will be incorporated into the platform as Reali Loans in the coming weeks, expanding Reali’s product offering and streamlining the mortgage process to significantly save homebuyers time and money. The Reali Loans platform will include no origination fees, easy online customer experience, fast approvals, and competitive rates. Reali Loans can offer faster than industry closing times which is critical for a growing customer-base and pending offers in time-sensitive markets.”

Figure Technologies has its Provenance.io, the blockchain platform it built last year to be 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. (For more information for correspondents or brokers, contact Wendy Harrington.)

Premium Title, a national provider of title and escrow services, and Springhouse, a full-service valuation solutions and appraisal management company, announced the launch of HomeVal, a home equity line of credit (HELOC) hybrid solution that provides combined title search and valuation data for lenders. “Consolidation of title and valuation information in one report can help lenders shorten the amount of time it takes to close a HELOC loan… HomeVal provides lenders an economical solution to satisfy title and valuation requirements at a lower cost than traditional title insurance policies and property appraisal reports.”

BlockGen Corp, a newly formed holding company for LendGenuity, and Block+Sovrin is pleased to announce the completion of its first round of venture capital financing of Series A Preferred Stock. Cavatina Capital LLC led the transaction alongside Charterhouse Strategic Partners. “LendGenuity’s newly released SAAS platform provides lenders a fully integrated end-to-end solution, sharing one data base across all origination components: A consumer portal (POS) empowering borrowers with unparalleled control of the origination process, a loan origination system (LOS) based on sequential and dynamic task management to efficiently coordinate processing and closing functions and a fully customizable rules based product, pricing and decision engine (PPE) making credit risk management, interest rate risk management and best execution a frictionless process.” (Block+Sovrin is soon to unveil the mortgage industry’s first Mortgage Blockchain creating a truly virtual mortgage using a GSE compliant data structure comprising one version of the truth, shared across all parties on the network through an all-digital technology platform with no single point of failure or lender claiming ownership of the blockchain’s contents.)

SafeChain, in partnership with 9 independent title agents in Ohio, has launched a blockchain-backed network that enables peer-to-peer transfers of prior title insurance policies to streamline the title search process and drive down costs for member agencies. The new network allows independent agents to share prior policies, rewarding contributing agents for policies accessed. Agents have the ability to set the price of their policies as well as customize which underwriters and agents they want to view in their search results. While member agents will maintain governance of the network upon completion, SafeChain will act as the network operator while the project is being built and will gradually relinquish control over to independent agents over the course of the next few years.

Polunsky Beitel Green LLP, a Texas-based law firm providing legal services and document preparation for clients nationwide, has developed an eClose solution that allows companies to use any documents. “We provide a Smart Note and the eVault if requested. We also have 3 options for clients, Full Close with the Smart Note, Hybrid with the Note and Security Instrument wet signed and the Slim close. Our solution is a one stop shop which also includes a Concierge service to review signature lines before being sent to the title company. Title Companies love us because we train them and also have a title agent registry as well as creating their notary seal to digitally affix. We can eClose in any state that allows digital notaries. This product is a standalone offering and companies do not need to be a client of the firm. (Contact Rosemary Barbour with questions.)

Capital markets

You can always expect rates to move up some, down some. Yesterday was “up some” as the 10-year hit 2.59% with investors not in a hurry to add more fixed-income securities. As a result the yield curve experienced mild steepening pressure to begin the week during an otherwise light volume session. Existing homes sales decreased in March and are now declining YoY as rising prices and a lack of homes at more affordable price points continues to keep overall sales activity subdued. Adding further pressure to the curve was the jump in crude prices on the back of the U.S.’s decision to end waivers on Iran oil imports, effective May 2. Also out of Washington, President Trump tweeted that Herman Cain asked not to be nominated to the Fed Board of Governors, ending that saga. Internationally, reports are China will delay data restrictions for foreign companies as trade talks continue. And separate reports have Prime Minister May being told she must resign by the end of June or her party will vote to change leadership rules to force her out.

Today’s calendar started with the Philadelphia Fed Nonmanufacturing Index for April (“39.2”). Next up will be the Redbook Chain Store Sales for the week ending April 20 () just before the release of the February FHFA House Price Index. The final readings of the day are the New Home Sales and Richmond Fed surveys. We begin today with agency MBS prices worse a few ticks versus last night’s close and the 10-year yielding 2.58%.

Ever wondered how some capital markets folks cut their hair? Here’s a tutorial; skip the ad. (Thank you S.C.)

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. 22: Credit risk, LO, AE jobs; MI, non-QM, HELOC products; spec pool primer; LO comp & licensing update

Remember NINA loans from 10-15 years ago where the lender would purposely discard anything in the file dealing with income because underwriters didn’t want documentation? Several lenders are now promoting no income, no asset non-owner loans. For example, 360 Mortgage is now promoting its NINA investor loans. We’re at the point where borrowers must prove that they won’t live there. (Speaking of rent, Quicken Loans has its new VRBO income program.) What if you don’t anyone to know where you are, physically? Sorry, “they” know where you are all the time. Authorities have obtained search “geofence” warrants that require Google to turn over data from a database known as Sensorvault. The warrants “specify an area and a time period, and Google gathers information from Sensorvault about the devices that were there.”

Employment

IMPAC is growing rapidly and we are HIRING Account Executives in the Pacific Northwest, Utah and Colorado. For more information, contact Louise Woods. We are now offering our Premier Series on all Non-QM programs: Bank StatementInvestorAsset Qualification and our Full Doc Jumbo Alternative – Agency Plus. With floor rates as low as 4.875% and YSP up to 2.25%, Premier offers yet another level of in-demand loan products. Additionally, IMPAC’s LLPAs are always to the fee and not the rate, and we offer LLPA credits (.50) for loan amounts above $800K and (.75) over $1.5M. By adding the Premier Series to all of our Non-QM programs and offering higher YSP with LLPA credits for larger loan amounts, we continue to improve these already fantastic in-demand loan products. As your broker partner, IMPAC offers extensive Non-QM training, education and white label marketing, all to help you grow your business.”

“The ‘R’ in Thrive stands for ‘Relationships’, both with partners and clients alike” stated Selene KellamThrive Mortgage’s nationally recognized COO. “Last week our Sales and Operations teams came together for an event hosting Originators and their Realtors from over thirty different markets to learn about Consumer Credit strategies and resources. The positive feedback has been amazing to hear.” During the event, testimonies were shared about the Thrive4Home incubation program. One example given illustrated the impact relationship driven LO’s and Realtors can have on their clients. “[Thrive LO Erin Merriman] helped us out like nobody else would. Most loan officers… wouldn’t even call us back,” stated one homeowner testimonial. “Erin coached us on what needed to happen, continually followed up, and then, a few months later, closed the deal.” Click here for information on joining Thrive Mortgage.

The Caliber Home Loans, Inc., Portfolio product is growing and expanding, and Caliber is seeking a Senior Portfolio Credit Risk Manager to join its Enterprise Risk Management team. This position is based at Caliber’s corporate office in Coppell, Texas. The manager will be responsible for portfolio risk analysis and independent oversight of credit quality, along with management of all aspects of portfolio credit quality and compliance with established loan parameters. This position requires familiarity with non- agency guidelines and credit oversight practices. Read more about the position’s requirements and/or apply online at Caliber’s Careers web site. Desired candidates will have a BA in Accounting, Statistics, Business, Information Systems, Finance or Economics and 7-10 years of experience in credit risk management, and at least two years in the non-agency space.

Lender services and products

Plaza Home Mortgage has a new Solution for correspondent lenders looking to serve the more non-traditional borrower segment. The Plaza Solutions Non-QM program is now available on a delegated or non-delegated basis and offers more flexible features, including loan amounts up to $2,500,000, flexible income documentation, DTI ratios up to 50%, interest-only options, expanded eligibility on all document types and lower reserve requirements. Plaza is here for you to equip you with the tools you need to grow your non-QM business. For more information, contact hereforyou@plazahomemortgage.com

What would you do with an extra $1,500? Make your Range Rover Payment? Plan a Vegas getaway? Take your family to Disneyland? This month TCF Bank®’s Relationship Lending Unit (RLU) announced a change to the broker compensation on our Stand-Alone HELOC to 1% of the line amount subject to a $750 minimum and $1,500 maximum. ‘Our brokers and partners are excited about this new income opportunity and we are pleased to be their partner of choice,’ said Mark Zierott, SVP, National Sales Director. TCF has been a trusted partner of brokers since 2006 and has significant experience originating TPO HELOCs coast to coast. Please contact your 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.”

Will 2019 be the year of change for LO compensation? Join LBA Ware at NAMMBA Connect 2019 this Thursday, April 25, at 2:30 pm for a must-see panel on the future of LO comp. LBA Ware CEO and 2019 MBA Tech All-Star Lori Brewer will join a distinguished panel of experts in discussing the CFPB’s response to proposed LO Comp rule changes and the potential impact of those changes on LOs and lenders of all types. LBA Ware is a proud supporter of NAMMBA’s mission and is a corporate sponsor of this year’s conference. LBA Ware’s CompenSafe™ platform helps lenders nationwide automate incentive compensation and harness the power of their sales performance data. To request a meeting with the LBA Ware team during NAMMBA Connect 2019 in Atlanta, email Finn Klemann.

Home Point Financial is pleased to announce that it has just introduced its new proprietary technology solution xMI™ that gives borrowers some of the lowest mortgage insurance rates available – and has no eligibility overlays. Now more borrowers can qualify with lower monthly premium payments. xMI™ even handles the approval, so there’s no need for a time-consuming second underwrite. xMI™ rates are available now as Home Point builds its portal integration. Approved customers can email bpmiquote@hpfc.com for a custom quote today.

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

Time is running out to take advantage of NewRez Wholesale’s appraisal promotion! Now through April 30thNewRez Wholesale will reimburse your borrower’s appraisal fee if one of NewRez’s Smart products or a NewRez FHA loan is chosen. Contact your AE today to learn more about how you can get an appraisal fee credit for your borrower’s loan closing. Exclusions and restrictions apply. Max appraisal value reimbursement for Smart Series is up to $650 and FHA up to $550. This offer is available for all new locks through April 30th.

Compensation & transitional licensing

Let’s turn to a compliance hot topic. When does MLO Transitional Licensing Authority Implementation go into effect and how will it work? S.2155 of the federal Economic Growth, Regulatory Relief, and Consumer Protection Act, MLO transitional licensing authority goes into effect on November 24, 2019. This will allow qualified MLOs who are changing employment from a depository institution to a state-licensed mortgage company and qualified state-licensed MLOs seeking licensure in another state to potentially be granted temporary authority to act as an MLO while completing state-specific requirements for licensure, such as education or testing.

An MLO will not have to submit a separate application for temporary authority, but rather apply for an MLO license through NMLS and, if eligible, will automatically receive temporary authority as the applicable state processes the license application. NMLS will be programmed to check certain eligibility requirements, such as criminal history and whether an applicant has had an MLO license application denied, revoked, or suspended. Before a licensing decision is made by the applicable state, an individual with temporary authority will show as being “authorized to conduct business” in the state – the actual license status will not be updated until the state makes a decision with regard to the license application.

An individual with temporary authority may originate loans as if he/she possesses a license in that state. The individual and the loans originated by that individual will be subject to the same rules and regulations as applicable to a licensed MLO. Mortgage lenders must monitor the status of an individual’s license application and temporary authority to act as an MLO. If the MLO’s application is ultimately denied, the mortgage lender must reassign any active loans in the pipeline originated by that MLO to a licensed MLO in that state. Further, if a mortgage lender knew of or should have known of a disqualifying event that would cause a license application to be denied, the mortgage lender could face enforcement action by the state for failing to disclose such event.

The CHLA has weighed in with a letter to the CFPB, offering “a common sense approach to the issue of LO Compensation flexibility. Commonly an LO makes a loan offer, in conjunction with working with a potential borrower, sometimes for an extended period of time. Then, at the last minute the borrower solicits a competing offer at the last minute, at a lower rate. Unfortunately, under CFPB rules, the loan originator can’t reduce their compensation, in order to make it possible for the lender to match the offer. Result:  the lender and LO lose the loan – and the client relationship. The CHLA letter offers a targeted solution to address these circumstances – without opening up the LO Comp rule to loopholes that allow steering or other anti-consumer practices.

Capital markets

Some investors may pay a higher price for loans that will refinance quickly, hopefully through their own portfolio protection group, whereas others may pay up for loans that may never refinance. One way lenders improve their price on rate sheets is through slightly better execution when selling loans by slicing and dicing pools of loans into specified pools. Mortgage investors have shown greater appetite for “specified pools” amid concerns that new production MBS are at greater risk from surges in prepayment speeds.

“Specified pools” are bonds created using borrower characteristics, such as credit scores or loan size, and are designed to provide more certainty on when the underlying mortgages will be paid off. Any company servicing loans wants them on their books for a long time. As an easy example, if 30-year mortgage rates drop .250%, the impact on the monthly payment on an existing $600,000 loan is much greater than on a $100,000 loan. The $600,000 is more likely to prepay, so servicing values on lower loan amount loans, or pools of those loans, everything else being equal, would be more. Or pools made up of low credit score loans, where borrowers would have a tougher time refinancing.

This has led to refinancing red flags for current 30-year conventional mortgage production coupons (the premium priced 4.0 and 4.5 percents) with high credit scores and large loan sizes. Investors have been looking for new ways to mitigate prepayment risk, such as by purchasing a specified pool created with loans issued in New York state, as those historically exhibit relatively slower speeds. New York specified pools for 30-year 3.5, 4 and 4.5 percent coupons have rallied by 6, 5 and 15 ticks YTD, respectively, per Bloomberg.

Specified pools are also getting an added boost of late due to limited supply, collapsing rolls and end clients competing against CMO creation desks who have a strong bid for this type of collateral. Another near-term tailwind for specified pool performance may have been sparked by the recent FHFA final rule that will cap the gross weighted-average coupon (GWAC) — the difference between the interest rate on the individual underlying mortgages and the coupon rate on the pool they are placed into — at 112.5 basis points. Rising GWAC in new production mortgages have been another growing concern for investors, as it is a red flag for potential faster prepayments. While a regulatory fix to that concern may create more demand for prepayment protection, the time gap remaining until the FHFA cap comes into play has left an ambiguous date, keeping originators creating high GWAC pools while they still can. Investors believe that generic TBA convexity quality is likely to deteriorate in the intermediate time period as a result.

Markets open back open today after Friday’s holiday, and we’ve seen the Chicago Fed National Activity Index for March (-.15) and will see Existing Home Sales for March. The remainder of the week includes February FHFA HPI and March new home sales on Tuesday, March durable goods on Thursday, and the first look at Q1 GDP and the final consumer sentiment read for April on Friday. There are no Fed appearances scheduled as they are in their blackout period ahead of the April 30-May 1 FOMC meeting. The Bank of Japan, however, will release its updated monetary policy decision on April 25. We begin the day with rates higher versus Thursday’s close: the 10-year is yielding 2.57% and agency MBS prices are worse .125.

Thank you to Len T. for this example of a police department having fun.

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. 20: Update on move away from LIBOR; state lending law changes from ND, WY, UT

Happy 420 day! (And “Happy Surprise Drug Test Day” tomorrow!) More and more people in more and more states understand what that signifies. And there is gradual pressure to change the Federal view of marijuana use. But until that changes, Federal entities (like Fannie & Freddie) and nationally-chartered banks, will continue to not count income, and finances, from cannabis-related activities. Eventually in the future yes, but for now, no.

Also in the future is the gradual elimination of LIBOR, a concern with loan servicers and anyone with any contracts tied to that index. (Yes, it is an acronym so capital letters are used, but the use of small letters has increased.) To refresh your memory, Libor, the reference rate for more than $350 trillion of assets globally, is being phased out after a series of manipulation scandals that led to banks being fined billions of dollars. The United States, Britain and other key markets have until the end of 2021 to replace the Libor money market rate, despite the global financial industry being slow to embrace the change, as the transition to the Secured Overnight Financing Rate (SOFR) is not seen as a pressing issue.

The London Interbank Offered Rate’s days are numbered, and bankers have heard that SOFR will replace LIBOR as a benchmark in 2021. But what is involved in this transition? To learn more about the impact and how your bank can plan for it, download PCBB’s white paper, “Moving from LIBOR to SOFR: Smoothing the Transition for your Financial Institution“.

Regulators and industry groups are developing a market protocol to govern the shift of derivatives contracts linked to Libor to fallback benchmarks after Libor is discontinued. Dan Fichtler, the Director of Housing Finance Policy with the Mortgage Bankers Association, observes, “SOFR tends to run below LIBOR, so borrowers would see their rates decrease as a result of the shift, assuming no change in margin (which is itself a subject of intense scrutiny right now). There are many, many conversations and analyses, both legal and financial, taking place to determine how the transition would work. Much of that work is being undertaken by the Alternative Reference Rates Committee, which is the public-private group being organized by the Fed. I’d certainly recommend the ARRC website, which has lots of useful information.

Federal Reserve Governor Randal Quarles, who was joined in Washington by regulators from Britain as part of the spring meetings of the International Monetary Fund and World Bank, said the U.S. financial industry must accelerate efforts to move away from the scandal-plagued Libor reference interest rate, adding the Fed is scrutinizing banks’ transition plans. Quarles warned that major new markets such as SOFR “do not arise overnight” and can take decades to develop, needing the backing of the private sector.

Any hopes for more transition time were quashed by Britain’s Financial Conduct Authority, deeming requiring banks to support a “fragile” Libor beyond 2021 inappropriate. The FCA could not rule out that some “legacy” products might still refer to Libor after 2021, but new products should not. The FCA and Bank of England are making senior bank officials personally responsible for timely transition from Libor to the BoE’s Sonia overnight rate, including the transition away from Libor as part of their regular monitoring of large firms.

Sonia, SOFR, regardless, lenders need to be proactive and identify LIBOR exposure. Dan F. reports, “(We are) spending quite a bit of time on the transition away from LIBOR. On the residential policy side, MBA has a working group on the mortgage-related elements of the transition – this group is our main venue for all of our policy work on the issue. Aside from educating members, our main goal is to serve as a forum for establishing best practices and/or standardization for the industry. This will include discussions around criteria for choosing new benchmarks for future production, operational issues related to servicing legacy loans tied to LIBOR, new consumer and other disclosures, and changes to fallback language in contracts.

“Our expectation is that the GSEs will be spending more time in 2019 determining: 1) what they will accept in terms of future production; and 2) what benchmark(s) they will use for servicers of legacy loans tied to LIBOR. We hope to work with them on issues like potential changes in the note language and the developments of timelines and implementation instructions (a la the Single Security Playbook, for example).

My guess is that we can look for Freddie and Fannie to create an ARM program tied, probably, to SOFR some time in the next year or so.

State law changes

North Dakota has enacted House Bill No. 1110 relating to the adoption of the Revised Uniform Law on Notarial Acts. This section has been updated to include requirements concerning remote notarial acts utilizing communication technology. The amendments specify the requirements that must be met for a notary to perform a remote notarial act.  In part, the notary must be able to identify the individual either by personal knowledge, credible witness attestation, or utilization of at least two different types of identify proofing. Additionally, the notarial certificate must include the language: “This notarial act involved the use of communication technology.” A notary must also notify the secretary of state that he or she will be performing notarial acts remotely and identify the technology he or she intends to use prior to his or her first notarial act. A notary is also required to keep a journal including a chronical of all notarial acts performed remotely. The journal must be retained for 10 years after the last notarial act.

Wyoming has enacted House Bill 292 amending foreclosure sale and right of redemption provisions. The Act clarifies the definition of “agricultural real estate” with respect to the right of redemption used in Section 1-18-103.  Agricultural real estate is defined as: [A]ny single parcel of land in excess of eighty (80) acres lying outside the exterior boundaries of any incorporated city, town or recorded subdivision or any property that is used substantially for agricultural purposes, which, if combined with other agricultural purposes, equals eighty (80) acres or more in aggregate. Additionally, House Bill 292 amends Section 1-18-111, sale on foreclosure of mortgage, to allow a limited right of entry to a purchaser in order to ensure the property does not significantly deteriorate during the redemption period.   A limited right of entry is defined as “entrance into the premises which is not occupied by a legal inhabitant.”

The State of Utah amended its provisions under its Notaries Public Reform Act that include establishing requirements for the process by which a remote notary may perform a remote notarization, requiring a remote notary to maintain an electronic journal, and amending the fees a notary may charge for performing a notarization. The bill takes effect on November 1, 2019. Language includes that “a notary” includes a “remote notary” and defines remote notarization as “a notarial act performed by a remote notary for an individual who is not in the physical presence of the remote notary at the time the remote notary performs the notarial act.”

An individual commissioned as a notary or an individual applying to be commissioned as a notary will apply to the Lieutenant Governor for a remote notary certification and the Lieutenant Governor shall certify that individual to perform remote notarizations as a remote notary if he or she meets certain conditions. Remote notarization procedures are created, and states that “a remote notary who receives a remote notary certification may perform a remote notarization if the remote notary is physically located in the state. A remote notary is required to create an audio and video recording of the performance of each remote notarization and store the recording and is required to take reasonable steps consistent with industry standards, to ensure that any non-public data transmitted or stored in connection with a remote notarization performed by him or her is secure from unauthorized interception or disclosure.

A remote notary certification will not be effective until the notary in the remote notary certification files with the lieutenant governor evidence that the notary has obtained $5,000 of bond coverage. A remote notary should ensure that the notarial certificate used for a remote notarization includes a statement that the remote notary performed the notarization remotely.

Section 10 amends the fees and a notary may charge. The maximum fees a notary may charge for notarial acts are: $10 per signature for an acknowledgment, $10 per page certified for a certified copy, $10 per signature for a jurat, $10 per person for an oath or affirmation, $10 for each signature witnessing. The amendment further provides that $25 is the maximum fee a remote notary may charge for an item described above that he or she may perform as part of remote notarization.

A notary journal must be kept and requires a remote notary to keep a secure electronic journal of each remote notarization the notary performs. The information that should be entered in the journal is listed, and states that a remote notary shall include with the journal a copy of the electronic recording of the remote notarization. The remote notary is required to maintain or ensure that a person that the notary designates as a custodian maintains information entered in the journal for a period of five years.

Section 13 provides for inspection of journal and requires a remote notary to ensure that the electronic journal and electronic recording that is maintained by the remote notary is a secure and authentic record of the remote notarizations that the notary performs. The remote notary is also required to maintain a backup electronic journal and electronic recording and must protect the backup electronic journal and electronic recording from unauthorized access or use. A custodian may be designated for the remote notary’s electronic journal and electronic recording and an agreement must be executed by the remote notary with the custodian that requires the custodian to comply with the safety and security requirements with regard to the electronic journal, the information in the electronic journal, and the electronic recording.

Section 14 require a remote notary to keep an electronic seal and electronic signature which may not be used by any other person with the exception of a chosen guardian. The amendment also provides that “the official seal used for an in-person notarization shall be in purple ink while each official seal used for a remote notarization shall be rendered in black.”

The amendment requires a notary who resigns or whose commission expires or is revoked to destroy the notary’s official seal and certificate and if the notary is a remote notary, to destroy any coding, disk, certificate, card, software, or password that enables the remote notary to affix the remote notary’s electronic signature or  electronic seal to a notarial certificate. A former remote notary is required to certify within 10 days after the day on which the notary resigns or the notary’s commission expires or is revoked to the lieutenant governor in writing that the former remote notary has complied with the requirements of destroying any coding, disk, certificate, card or password.

Section 15 provides for obtaining an official seal and states that a person may not provide an official seal to an individual claiming to be a notary unless they present a copy of their notarial commission. The amendment forbids anyone from creating, obtaining or possessing an electronic seal unless the individual is a remote notary.

Utah modified provisions under its Consumer Credit Protection Act effective on May 14, 2019. Section 6 of the amendment modifies the penalty for violating the Act to “no greater than $100,000 in the aggregate for related violations concerning more than one consumer unless the violations concern 10,000 or more consumers who are residents of the state; and 10,000 or more consumers who are residents of other states; or if the person agrees to settle for a greater amount.” The amendment also establishes that an enforcement action filed under the Act shall commence no later than five years after the day on which the alleged violation last occurred.

Section 9 of the amendment permits funds in the Attorney General Litigation Fund to be used for education and outreach on certain matters and any balance in the fund in excess of $4,000,000 at the close of any fiscal year shall be transferred to the General Fund.

(Thank you to P.A. for this one. Let’s call it “un-rated;” I am sure someone will take offense to it. So if easily offended, don’t read.)

A blonde, city girl named Amy marries a Colorado rancher. One morning, on his way out to check on the cows, the rancher says to Amy, “The insemination man is coming over to impregnate one of our cows, so I drove a nail into the 2×4 just above where the cow’s stall is in the barn. Please show him where the cow is when he gets here, OK?”

The rancher leaves for the fields. After a while, the artificial insemination man arrives and knocks on the front door. “I came to inseminate the cow,” he said.

Amy takes him down to the barn. They walk along the row of cows, and when Amy sees the nail, she tells him, “This is the one right here.”

The man, assuming he is dealing with an airhead blonde, asks, “Tell me, lady, ’cause I’m dying to know. How would YOU know that this is the right cow to be bred?”

“That’s simple,” she said. “By the nail that’s over its stall,” she explains very confidently.

Laughing rudely at her, the man says, “And what, pray tell, is the nail for?”

The blonde turns to walk away and says sweetly over her shoulder, “I guess it’s to hang your pants on,” she replied.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “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. 19: LO jobs, business opportunities; non-QM, corresp. products; FHA addresses DPAs, Chenoa responds

Saturday my commentary raised the question about whether lenders would rather see a recession, with its typically lower rates, or a burgeoning U.S. economy with its higher associated rates. From out in California, Dick Lepre quipped, “People in the mortgage business are as happy with recessions as the undertakers in Clint Eastwood westerns are when he come to town.”

Employment & business opportunities

A national originator/marketer of consumer installment home improvement loans is looking to diversify and add an investor to its existing base of funding partners. “In this increasingly competitive, low margin mortgage market, our rapidly growing platform would be a natural fit and extremely complimentary to any portfolio investor (bank, credit union, hedge fund, servicer, etc.) that is currently purchasing and/or servicing real estate loans. Further, additional opportunities are available to market and cross sell homeowners with historically high FICO, low default ratios. The majority of our business is sourced through a national network of home improvement dealers/contractors, is 100% tied to home improvement projects, and underwritten with full income, credit verifications and documentation. Recent production/performance highlights are as follows: 9.4% WAC; 738 Avg. FICO; 31% DTI; $58,000 Loan Amount; Avg Term. 11 years; Less than .025% Default Ratio, full credit/income required on all loans.” Confidential inquiries from Lending Officers, and/or Principal please send to Anjelica Nixt.

Spring EQ Wholesale, the nation’s premier wholesale second mortgage lender, offering 95% CLTV combos (purchase or refinance) and 100% CLTV standalone fixed rate second mortgages, and who pays 1.5% in LPC on every loan, is GROWING. Joining the team are the following Senior Account Executives: Lauri Preedge (Orange County/Southeast) and Tony Raia (LA/Northwest) in California, Tracy Pyeatt in Oregon/Washington, Dori Boxberger in Arizona, Coleman in Illinois/Indiana/Iowa/Wisconsin, Tara Marcordes covering the entire country, Becky Ricketts in Kentucky/Tennessee/Ohio, and Shannon Miller in Pennsylvania/New Jersey. Spring EQ Wholesale continues to hire Inside Account Executives in Philadelphia, and Outside Account Executives in Northern California, the Northeast, and the Southeast regions and interested applicants should apply here. In addition, any brokers, banks and credit unions looking to partner should apply here.

Final Deadline for consideration: Attention FinTech Investors and Investment Bankers, mature, profitable and well adopted Mortgage technology (Sales Automation/CRM) firm,

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. We will engage with those firms who inquired by April 30th for discussion and engagement.

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

Lender products & services 

National MI has partnered with NAMB+ as part of its continuing effort to work more effectively with mortgage professionals in the third-party originator/wholesale space, including mortgage brokers. NAMB+ connects NAMB members with an array of endorsed providers aimed at helping mortgage professionals gain a competitive advantage in today’s marketplace. “National MI is pleased to work with NAMB+ to provide mortgage brokers with educational content and other tools so they can learn more about mortgage insurance solutions,” said Mike Dirrane, senior managing director and chief sales officer with National MI. “We see the broker segment increasing their market share in 2019. By partnering with NAMB+, we are looking to foster our relationships with brokers, as well as help them increase their business.” The mortgage broker share of new residential mortgage production rose to 11.6 percent in 2018, which was the highest level since 2010, according to IMF, and is expected by many to increase further in 2019. “NAMB+ is delighted to welcome National MI as an endorsed provider,” said NAMB+ President Mike DeSantis. “Our NAMB members will truly benefit from the array of mortgage insurance products and services they provide.”

Merchants Bank of Indiana is once again expanding its Product Offering and has added Agency Non-Delegated to its menu of products. In sync with its Non-Delegated launch, it joined Optimal Blue’s extensive investor network and are now offering their Best Effort pricing through Optimal Blue. In addition, they announced that Dan Hastings, CMB has joined their team as AVP, Correspondent and Warehouse Sales Executive.  Dan brings 35+ years of Mortgage Lending experience to his new role. Rob Wilson, Vice President commented, “We are very excited Dan has joined our Merchants Team. His sharp customer focus and extensive mortgage finance experience fits our customer driven strategy and brings added experience to our team.” Merchants offers Warehouse Financing; Correspondent Lending, Agency and Premium Program; and Enotes, Warehouse & Investor takeout.

NewRez recently announced the expansion of its SMART Series line of Non-QM, non-agency loan products in all of its business channels. “With more than a year of successfully originating SMART Series loans, we found that there were opportunities to make adjustments in the programs that would allow us to reach an even larger number of borrowers,” said Kevin Harrigan, NewRez President and CEO. NewRez has now expanded many terms and features, including loan amounts, FICO and LTV combinations. For example, SmartEdge, designed for borrowers qualifying full doc with Non-Agency/Non-QM features, has expanded LTV to 95%. Many SMART Series products are now available as 40-year interest-only loans. Program requirements have been adjusted as well, including the elimination of site and 2-4-unit condo project reviews. Speak to your NewRez rep or learn more on our Wholesale and Correspondent websites.

Floify now provides even more flexibility to customize the look and feel of your digital mortgage origination solution to match your company’s unique brand with their new URL Whitelisting functionality – currently available to all users of Floify. What’s most impressive about Floify’s URL Whitelisting is lenders can embed and customize their lending portal and accompanying 1003 on any page of their website, complete with their company’s uniquely-branded URLs, to help create a seamless visual experience for borrowers, agents, referral partners, and more. Additionally, marketing teams will rejoice in having the ability to modify brand styles with Floify’s built-in CSS, JavaScript, and visual editors. Floify’s URL Whitelisting and growing suite of customizations were designed to put the power back in the hands of lenders. Experience the positive impact these brand customizations will have on your lending operation – request a live demo of Floify!

HUD & FHA address down payment programs

In September Bloomberg published an expose titled, “American Indian Tribe Becomes a Player in the No-Money Mortgage Business.” “Chenoa Fund, which is owned by American Indians, Utah’s Cedar Band of Paiutes (257 members). “’Chenoa’ is thought to be a native American word for peace, but operations like Ferguson’s are raising concerns in the industry and in Washington. That’s because he’s running a company with a dual role, not only providing the down payments for borrowers across the country but also profiting from making the loans by charging above-market rates and fees. Some members of the tribe say they’ve seen little or no benefit from the business and question where the money is going.”

Critics of Chenoa believe that it is merely a high-priced YSP funded DAP from a private company, and up until yesterday the industry wondered if HUD would address any ambiguity. The new FHA Mortgagee Letter 19-06, titled, “Down payment Assistance and Operating in a Governmental Capacity,” certainly does. “It has come to FHA’s attention that certain Governmental Entities may be acting beyond the scope of any inherent or granted governmental authority in providing funds towards the Borrower’s MRI in circumstances that would violate Handbook 4000.1, the National Housing Act, and is contrary to established law.”

One note I received observed, “HUD is really cracking down in two ways. It shuts down the YSP DAP since it can no longer come from ‘any other person or Entity who financial benefits from the transaction (directly or indirectly).’ But then it keeps the tribes on their own land with, “…the Governmental Entity is a federally recognized Indian Tribe operating on tribal land in which the Property is located or to enrolled members of the tribe.”

“At first glance, this appears to say that Chenoa can only provide down payment assistance for properties on tribal land or for borrowers who are enrolled members of the tribe. Put another way, HUD’s letter specifies that the Governmental Entity must be providing the funds ‘in its governmental capacity.’ In the case of an Indian tribe, the lender must obtain a legal opinion by attorneys for the Governmental Entity stating that, ‘the Governmental Entity is a federally recognized Indian Tribe operating on tribal land in which the Property is located or to enrolled members of the tribe’ and that funds must be, ‘provided in the Governmental Entity’s governmental capacity in the jurisdiction in which the Property is located or for the federally recognized Indian Tribe’s enrolled member…’”

HUD’s letter raises questions about whether or not the organization is a Federally recognized tribe, so therefore its “jurisdiction” is all of the United States? Because it is Federally recognized as a sovereign government, does that mean that the tribe has governmental authority outside of their tribal lands, or for non-tribal members? And what about financially benefitting from the down payment grant or second lien? Chenoa is a for profit enterprise, compared to a nonprofit HFA (Housing Finance Authority), and receives the interest and/or principal from scheduled payments or payoffs of these grants or second trust deeds, depending on the program and if the borrower meets certain requirements like zero delinquencies in 36 months. There is also a question about funding the second until the loan is sold to Chenoa, several days after origination. This may not comply with the requirement that the second is a liability or deduction from their bank account on or prior to loan closing.

Richard Ferguson, President of CBC Mortgage Agency which offers the Chenoa Fund, responded with, “FHA just published Mortgagee Letter 19-06, which creates a new policy on the provision of down payment assistance. The Mortgagee Letter appears to be an attempt by HUD to put Native American programs back on the reservation.

“We recognize that HUD’s issuance of the Mortgagee Letter 19-06 has caused confusion and concern with how this mortgagee letter may affect the Chenoa Fund. HUD’s attempt to implement new policy restricting governmental entities to operating within a specific jurisdiction violates federal law, including the Administrative Procedure Act, and restricts government DPA programs in an arbitrary and capricious manner. And HUD failed to comply with an Executive Order requiring tribal consultation. CBC Mortgage agency is reviewing all of its options, including litigation.

“We are deeply concerned with the manner in which FHA is promulgating new policies without adequate notice or explanation given to regulated parties. These unconstitutional changes in agency policy have caused significant disruption to the ability of lenders to make commitments to borrowers. Hundreds, if not thousands, of buyers are being adversely impacted by sudden changes in rules, with no regard to existing pipelines.

“This new Mortgagee Letter imposes unexplained new requirements. Effective immediately, HUD is requiring that all 1500+ government DPA programs have an attorney opinion in the file for new FHA loans. This will wreak havoc on the closings of thousands of borrowers while governmental agencies scramble to obtain these opinions. CBC Mortgage Agency is looking to industry participants for support in getting this unconstitutional and unlawful Mortgagee Letter withdrawn. Contact us for more information.”

Capital markets

U.S. Treasuries across the curve ended the trading week rallying to their best levels since Tax Day, including the 10-year closing yielding 2.56%. Agency MBS underperformed benchmarks on cautious risk sentiment in response to another weak set of Manufacturing PMI readings from Japan, France, and, Germany, which posted the fourth consecutive month of contraction; and stronger than expected retail sales for March that showed broad-based strength with gains across discretionary spending categories that will certainly aid in the calculation of the goods component for personal consumption expenditures in the Q1 GDP report. Mortgage rates were up slightly for the week, though they remain well off the 2018 highs from November. Rate levels remain attractive which should continue to support purchases, especially given the strong jobs markets. Dallas Fed President Robert Kaplan said his confidence in the growth outlook for 2019 is increasing. Internationally, the Bank of Korea left its repurchase rate and cut its expectations for South Korea’s 2019 growth while the inflation forecast was lowered. The European Parliament voted in favor of setting up a European Defense Fund for 2021-2027. And finally, the Bank of England’s Credit Conditions Survey for Q1 showed that availability of unsecured credit to households decreased as default rates of unsecured credit increased significantly due to higher defaults on credit card loans and corporate loans.

While the U.S. bond and equity markets are closed today for Good Friday, housing starts and buildings permits for March will still be released at 8:30am. Markets open back up Monday and will receive the Chicago Fed National Activity Index for March and existing home sales for March. The remainder of the week includes February FHFA HPI and March new home sales on Tuesday; March durable goods on Thursday, and the first look at Q1 GDP and the final consumer sentiment read for April on Friday. There are no Fed appearances scheduled as they are in their blackout period ahead of the April 30-May 1 FOMC meeting. The BoJ, however, will release its updated monetary policy decision on April 25. Rate sheets today tend to be conservative with no U.S. bond market prices or MBS prices to direct them.

As we head toward Easter, these supposedly appeared in real church bulletins (part 5 of 5):

26. The pastor would appreciate it if the ladies of the congregation would lend him their electric girdles for the pancake breakfast next Sunday.

27. Low Self Esteem Support Group will meet Thursday at 7 PM. Please use the back door.

28. The eighth-graders will be presenting Shakespeare’s Hamlet in the Church basement Friday at 7 PM. The congregation is invited to attend this tragedy.

29. Weight Watchers will meet at 7 PM at the First Presbyterian Church. Please use large double door at the side entrance.

30. The Associate Minister unveiled the church’s new tithing campaign slogan last Sunday: “I Upped My Pledge – Up Yours.”

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. 18: AE & LO jobs; u/w product, paper on FHA changes; tech report; compliance & Ops news

Experienced originators know that lending is a numbers game. Every 100 cold calls result in 20 conversations, which result in 5 potential leads, which result in 1 closed loan. Or whatever personal ratios are. Not only that, but there is a 2-4-month lag time between those 100 calls and any funded loans that come from making them so good LOs have been laying the groundwork for summer for a quite some time. But speaking of two months, from St. Louis Mike Swaleh reminded me that the revised Uniform Closing Dataset (UCD) Seller data requirements will be effective on June 24, 2019. Lenders are working on the borrower’s app process. For example, Envoy Mortgage has developed XLR8. More on Ops issues below.

Employment & business opportunity

Arc Home welcomes Katherine Gardner as Chief Production Officer leading Arc’s Wholesale, Delegated and Non-Delegated Correspondent Channels. “Arc Home is perfectly positioned to grow in this challenging market. By providing proprietary Non-QM products in addition to a full agency offering, we can meet our customer’s product needs and meet their desire to work with a unified operation and salesforce. Having a proprietary product enables us to advance in the Non-QM space others struggle with – program exceptions. Our competition sees loans outside the guidelines as exceptions; we see them as an opportunity for execution. Non-QM is blurring traditional channel lines. We are adding Account Executives with the ability to sell across the client-spectrum. In addition to growing our salesforce, we will continue to build our operations teams in Mt. Laurel, NJ and Phoenix, AZ. If interested in joining a growing team, please contact Katherine Gardner, Chief Production Officer.”

A privately-held mortgage company licensed in 14 states is interested in partnering with an investor or another mortgage company to grow their origination platform, in addition to securitizing and servicing loans The company has been in business for over 35 years and is approved by Fannie Mae, Freddie Mac, Ginnie Mae and all major private investors.  If interested, please contact Anjelica Nixt.

“At Franklin American Mortgage Wholesale Lending, our Account Executives are the heart and soul of what we do, providing best in class industry knowledge and a hands-on approach to developing relationships as we grow with our valued business partners. A division of Citizens Bank, N.A., we provide the tools and support that our AEs need to make an impact in today’s competitive marketplace. We are looking for Account Executives in Washington, D.C.; AZ; Austin/San Antonio, TX; UT; OK; WA; OR; Los Angeles, CA; CO; and Chicago, IL to join our team and take their careers to the next level. If you’re ready to join a team that’s focused on your success and the success of our business partners, please email Jennifer Rader, VP, Head of Talent Acquisition – Home Mortgage to get started today.”

One of the strengths of Caliber Home Loans, Inc. is its product portfolio. Caliber offers a wide range of loan options to meet the needs of more borrowers: government, conventional, jumbo, and a proprietary suite of non-agency loans. Caliber also participates in state-specific DPAs and bond programs, and has the ability to broker and offer buy-downs. By offering more products for its producers, Caliber gives them the opportunity to meet the needs of more home buyers and increase volume. In 2018 Caliber added 65 retail products, an increase from 44 products introduced in 2017. Part of this product expansion has included additions to its Caliber Portfolio Lending suite (CPL). Introducing Elite Access to this suite of non-agency loans was attributed to Caliber’s 122% growth in 2018 CPL volume. If you’re looking for a lender that has the products you need to succeed in this market, contact Jeremy DeRosa or visit www.joincalibernow.com.

Lender products & services

MGIC’s SEB Cash Flow Worksheets are Now Live! These worksheets are the industry standard for excellence in analyzing self-employed borrower income.

PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), understands the importance of efficiency when it comes to meeting our customers’ funding requests. “That is why we make the funding process simple: ‘Express Funding’ is how we help our customers reduce the time needed to get their loans funded. Express Funding allows our customers to submit multiple loans for funding in one simple data upload, whether it is one loan or 100 loans. Express Funding is an easy and efficient way to get the funds they need quickly. In addition, we offer a growing list of 2,000+ closing agents with No Doc funding requirements and funding turn times averaging under 30 minutes. We believe in consistently providing service to exceed our customers’ expectations. If you are interested in having a conversation about PlainsCapital Bank National Warehouse Lending, please contact Deric Barnett, EVP National Warehouse Lending.

With the market constantly fluctuating, lower your fixed costs and improve efficiency by outsourcing your QC operations. UHS America, a California based leader in QC/Compliance for nearly 20 years, has recently expanded its services to include Non-QM Underwriting Review. With over 120 years of combined mortgage expertise; their long-standing agency relationships with FNMA, FHLMC, FHA, USDA and; their state-of-the-art proprietary software QCIQ, UHS is confident they can help lenders save on origination costs while concurrently delivering the highest quality services for QC and Underwriting. For more information about UHS’s Prefund QC, Post-Close QC, Underwriting (QM and Non-QM), Due Diligence or Mortgage Consulting services, please contact Lisa Vang (657-269-4578), Kim Day, or visit www.uhsamerica.com. Connect with us through LinkedIn.”

The teams at SocialSurvey & Mortgage Coach are excited to announce an integration to help Loan Originators win even more deals! In today’s competitive environment, it is all about standing out from the crowd by providing incredible advice and establishing the highest level of trust with your borrower. Enterprise users of SocialSurvey & Mortgage Coach have the ability to display SocialSurvey reviews and testimonials inside the Mortgage Coach Total Cost Analysis (TCA). Scott Harris, CEO of SocialSurvey, stated “Our philosophy has always been reviews collected by Loan Originators should be shared in as many relevant places as possible.” Joe Puthur, President of Mortgage Coach, added, “Every TCA presentation will include client reviews, combined with tailored loan options.” Learn more about the integration by visiting SocialSurvey’s blog post.

Spring has arrived in Washington, and with it has come a great deal of activity on the housing finance front. Don’t know where to start when it comes to staying updated? We can’t blame you. There are the hearings on housing finance reform, the budgets of federal agencies, the memorandum about reforming the government-sponsored enterprises, and so much more. But, it’s this quietly announced change by the FHA that arguably poses a more immediate impact to mortgage lending. TMS’s government expert Nathan Shultz shares what this new change means for lenders in this latest blog. 

Report on MBA Tech Conference

Can the mortgage industry become like Apple or Tesla? In the April issue of STRATMOR Group’s Insight Report, Senior Partner and CEO Lisa Springer urges lenders to take cues from Tesla and Apple and adopt technologies that enhance the borrower’s experience. “The mortgage industry must transform the status quo and become forward-thinking and dynamic lenders willing to cater to a new digital era that removes the complexities of getting a mortgage,” says Springer in her article “Key Takeaways from the MBA Technology Solutions Conference.” Enhancing the borrower experience is driving technology investment, and Springer points out that in a conference session by STRATMOR Senior Partner Garth Graham, 58 percent of the attendees gave “borrower satisfaction” as their primary reason for investing in technology. Hear what STRATMOR heard at the tech conference, including how some lenders are incorporating robotics and AI into the mortgage process and alternatives to traditional loan origination systems (LOS). The April Insights Report.

Compliance, Ops, misc. underwriting changes

Lenders Compliance Group revealed that it is introducing its Website Tune-up!™ “We have pioneered unique regulatory tune-ups that are affordable, full compliance reviews, promptly completed by subject matter experts, and delivered in an actionable report. Our compliance tune-ups are a great way to quickly evaluate virtually all regulatory elements in mortgage banking, proving that compliance reviews do not have to be expensive or take forever to get done! CLICK HERE for more information about the Website Tune-up!™

The April 2019 issue of Mortgage Compliance Magazine features a wealth of information on quality control, starting with the first installment of a nine-part series from Steve Spies, VP of Loan Quality with Fannie Mae, from Fannie’s Beyond the Guide. In this issue, Spies navigates the process of meeting secondary market investors’ QC requirements and discusses the keys to effective QC. This issue features insight from a number of the industry’s top QC experts on the latest QC issues, including Phil McCall of ACES Risk Management (ARMCO), Tim McWay and Aaron Soule of CrossCheck Compliance, Laura Kate Davis of Quality Mortgage Services (QMS), Charles Sewright of Quest Advisors, and Belinda Kraus of Trelix. Click here to view the April 2019 issue of Mortgage Compliance Magazine

AmeriHome announced the publication of several new Non-Delegated Underwriting Program resources available on SellerWeb, including new “Did You Know” resources, updated Non-Delegated user guides, a new Non-Delegated Loan Submission Checklist and new ordering options for private mortgage insurance.

Mortgage Solutions Financial posted updates to its Loan Purchase Requirements.

Freedom Mortgage Wholesale offers the Texas Non-Home Equity 50(a)(4) program. View the Product Guide for details.

FNMA updated requirements regarding borrower-initiated cancellation of private mortgage insurance (PMI) this past July. Mandatory compliance with these changes begins September 1st, 2019, but servicers may optionally begin complying with these changes starting on January 1st. Read the docutech Compliance update for information on document changes to California, Connecticut, and Washington PMI Disclosures.

Waterstone Mortgage has introduced an update to its Single Loan Close Construction Program, or construction loan. The one-time-close loan program still offers one loan to cover the cost of the land, construction, and mortgage, but now also includes 95% LTV, meaning the down payment requirement is just 5%.

U.S. Bank Correspondent posted SEL-2019-014: Geographic Market Restrictions in Nevada.

AmeriHome announced that several new Non-Delegated Underwriting Program resources are now available on SellerWeb, including a new Non-Delegated Submission Checklist. A new private mortgage insurance ordering option is now available as well.

Eligibility and underwriting guidelines for the Ditech Correspondent Expanded Criteria products have been revised.

Effective March 18, 2019, the maximum LTV/CLTV’s for Second Home Purchases and Rate/Term Refinances with Mountain West Financial Wholesale have increased. Maximum LTV/CLTV has increased 5% for loan amounts/combined loan amounts up to $2,000,000.

Capital markets

From out of Michigan came news that Northpointe Bank’s new SVP of Capital Markets is Bryan Neitzelt. Bryan will be responsible for enterprise-level financial risk management of Northpointe’s nationwide residential lending business, including interest rate risk hedging, securitization, portfolio asset management and investor relations.

Few expect a big move in rates up or down in 2019, but that doesn’t stop them from drifting up or down. The yield on 10-year Treasuries was little changed at 2.59 percent after hitting its highest level in more than a month amid data showing the U.S. trade gap unexpectedly narrowed. European debt also dropped, while the euro strengthened even as Germany’s economy ministry revised its growth forecast lower. Health providers and hospital operators came under pressure as U.S. politicians debated expanding Medicare to all Americans, which could upend earnings models for large parts of the system. The rout in health-care shares dwarfed the latest batch of earnings reports, which painted a mixed picture on the state of the economy (e.g. Morgan Stanley rose, but Bank NY Mellon weighed financial shares lower). Earnings continue today and tomorrow, and investors are growing more confident the anticipated drop in Q1 results won’t ruin the year, as central banks around the world continue to be accommodative and the latest Chinese data calmed fears that the world’s second-largest economy was slowing down.

Data today began with weekly jobless claims for the week ending April 13 (-5k to 192k), Retail sales (+1.6%) and Retail sales excluding autos for March (+1.2%), and the Philly Fed Index for April (-5.2 to 8.5). Next up will be the flash Markit manufacturing PMI and flash Markit services PMI later this morning. Those readings come just before February Business inventories; and March Leading indicators at 10am ET. Finally, at noon Fed Governor Raphael Bostic speaks. Most financial markets will be closed for the Good Friday holiday tomorrow, including in the U.S., U.K., and Germany, but we will still have March Housing starts and Building permits. We begin today with agency MBS prices up slightly versus last night and the 10-year yielding 2.58%.

As we said through the week toward Good Friday & Easter, these supposedly appeared in real church bulletins (part 4 of 5):

19. Please place your donation in the envelope along with the deceased person you want remembered.

20. Attend and you will hear an excellent speaker and heave a healthy lunch.

21. The church will host an evening of fine dining, superb entertainment, and gracious hostility.

22. Potluck supper Sunday at 5:00 PM – prayer and medication to follow.

23. The ladies of the Church have cast off clothing of every kind. They may be seen in the basement on Friday afternoon.

24. This evening at 7 PM there will be a hymn sing in the park across from the Church. Bring a blanket and come prepared to sin.

25. Ladies Bible Study will be held Thursday morning at 10 AM. All ladies are invited to lunch in the Fellowship Hall after the B.S. is done.

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.)