July 25: AE, Ops, LO jobs; non-QM, sales, FHA products; tech survey results; ECB nudges our rates

If you, or your borrowers, want $125 from Equifax, or to receive free credit reporting, here’s what you should do. The official settlement website has been posted and is accepting claims. (To confirm you’re eligible to file a claim, enter your last name and the last six digits of your Social Security number on the site or call the Settlement Administrator at 1-833-759-2982.) Could the $125 buy an RV? No, but there is a continued increase in potential borrowers opting for that path and buying an RV instead, and living in it fulltime: a mobile lifestyle.

Employment

“Will your business continue to thrive when rates go up? Are you a Sr. MLO or Branch Manager who’s looking to increase your purchase loan business? Do you have a passion for providing your clients and referral partners with exceptional service? Alameda Mortgage Corporation is seeking dynamic managers and originators to provide exceptional service to eight highly productive (4,000+ transactions annually) real estate brokerage locations in Southern California. Alameda Mortgage has been committed to providing a platform for MLOs and managers to succeed at the highest level for over 50 years. We are a purchase-focused company that understands exceptional customer service starts with a commitment to supporting our salespeople. AMC is a mortgage bank headquartered in Walnut Creek, CA and is licensed in multiple states. If you are an experienced MLO or Manager looking to grow your purchase business, then please contact Mark Rafeh to learn more.”

“Are you a New England Account Executive looking to make a change with a local presence? Plaza Home Mortgage has an opening for a seasoned Wholesale and Non-Delegated Account Executive that covers the MA and NH markets, who will take over a number of open and active accounts, as well as bring in your book of business as our only rep in the market. Enjoy selling one of the largest product menus in the nation, with all traditional conventional and government programs – we also offer five Renovation Programs and a new One-Time Close Construction-to-Permanent Loan Program. Non-QM Products? Look no further… Plaza offers eight Non-QM products, from well-priced Jumbos to using Bank Statements for income. And you’ll have access to our operations office in Wakefield, MA. Plaza has both the products and technology to make you more successful than you are today.” Contact Howie Needel (617.240.5707).

Looking to start a new, rewarding career? Impac Mortgage Corp. and CashCall Mortgage would like to invite you to our Recruiting Event being held at the SoCal, Hotel Irvine next week, on August 1, from 5:00pm-8:30pm. We have over 80 positions to fill with energetic people who want to be part of growing teams in all areas of the company, including retail, wholesale, sales, operations and information technology! Please click on the link below to register and upload your resume! Hiring managers will be ready to interview and may be able to hire on the spot!”

When culture is the focus, the right growth happens! Thrive Mortgage is not focused on growing but providing unique opportunity. In addition to adding power hitters to their Production teams (see here, here, & here), Thrive has also made key hires to their Operations side. Industry veterans Christina Hawkins and Jeannie Howell have joined the Training and Sales Support department bringing their vast years of coaching experience to this innovative company. “I couldn’t be more thrilled to have Jeannie and Christina on the team,” stated Dan Windell, head of Thrive’s Training Department. “They have added such key elements to our team well beyond just basic onboarding. They are industry coaches!”  Howell added, “I came to Thrive because of their dedication to using world-class technology and their industry-leading workflow all to enhance the borrower experience. It was an easy decision.” To speak with members of Thrive’s recruiting teams, please visit join.thrivemortgage.com.

Lender services and products

The continued proliferation of natural disasters requires homeowners, mortgagers and servicers to always be prepared for unexpected property damage. For servicers, this means having an insurance loss draft inspections provider that adheres to industry standards, delivers the highest quality of services and scales to serve communities nationwide while still providing regional focus and local expertise. Altisource’s video breaks down the five reasons Altisource® Field Services should be your insurance loss draft inspections provider.

Three words: Unsellable FHA loans. Stop letting these words strike fear into your lending practices. With Millennial homeownership demand about to skyrocket and low-down payment products being a very attractive option for them, take control of your FHA lending with these best practices from TMS. The practical tips let you proactively manage your pipeline, so you can confidently capture the growing opportunity with FHA loans.

Keeping your LOs hyper-connected with borrowers and realtors is critical to boosting closed-loan rates and improving closing times. That’s why SimpleNexus has released an open API and webhooks that enable real-time, two-way data sharing between SimpleNexus and non-integrated third-party systems, such as CRMs and LOSs. The open API performs time-saving functions, instantly populating information entered into the SimpleNexus app within the CRM so that CRM-driven automated marketing campaigns can begin engaging borrowers immediately. Webhooks can be enabled to trigger notifications when changes occur within the SimpleNexus platform, such as the creation, update or deletion of a user. For more info on how SimpleNexus can turbocharge your loan production, request a personalized demo. Or if you’ll be in Buena Vista, Florida, for FAMP’s Annual Convention, drop by SimpleNexus booth #300.

Looking for a program to offer opportunities to consumers who may otherwise be unable to participate in the housing market? Look no further! Sierra Pacific Mortgage, Inc. announces Adventum, its non-QM line of mortgage products for borrowers with unique financial circumstances. Adventum is derived from Latin for “adventure, chance” and is ideal for borrowers whose career choices have taken them beyond the 9 to 5 workplace. Sierra Pacific Originators and Account Executives understand that life brings different adventures, whether they are self-employment, opening a new business, or working in a field of fluctuating income. These millions of people may have the income to qualify, but don’t qualify for traditional mortgages that require tax returns, W-2 and paystubs. With the introduction of Adventum, Sierra Pacific will provide loans to qualified borrowers who may otherwise be unable to purchase a home or improve their current financial profile.

Vendor & tech arena trends

The results for the first of three 2019 STRATMOR Technology Insight Study surveys are now available. If you completed this five-minute survey, you received an email from STRATMOR with instructions on downloading the report. One of the key metrics in the study is the STRATMOR’s Lender Loyalty Score Analysis™ (LLS) that measures how likely it is that a lender will continue to use a technology. This year, lenders reported the highest LLS for their Pipeline Hedging systems with Servicing Systems finishing second, indicating that lenders are not likely to switch either of these systems. If you are not a lender but would like to purchase the report to learn more about lenders’ perceptions of current systems, contact the STRATMOR Technology Insight team.

The second survey in the series, TIS: Digital Innovations, is now open. In this survey, lenders are asked about implementing digital technologies in the mortgage process and what barriers or benefits they are encountering. Lenders who participate receive the reports for the surveys they complete for FREE. Complete all the surveys and you’ll have the entire 2019 Technology Insight Study for the investment of your time. Take the Digital Innovations Survey now!

As I roamed the hallways and listened to the speakers, the buzzwords at the recent California MBA Western Secondary conference, much the same as most conferences for the last several years, were “machine learning,” “digitalization,” and “A.I.” Mortgage companies across the nation are looking to both offer better technology than their competitors and keep up with the demands of their borrowers. Many buyers are turning to online mortgage lenders in hopes of finding the most digital homebuying experience possible, with nearly three-quarters of mortgage applicants now applying online, and 83% signing documents electronically, per a recent survey from Ellie Mae. With any applicant, it is important to go through the pros and cons of using an online lender for their next home loan. The benefits revolve around convenience, including a fast rate quote, what is presented as a streamlined application process, and lower fees and interest rates without the cost of brick and mortar branches.

But that may not be for all borrowers. Some may prefer more of the hand-holding available from a traditional lender, especially true for first-time homebuyers who need more help understanding mortgage options, local knowledge such as homebuyer incentive programs that can lower interest rate or closing costs, and special financing for the self-employed, those with a low credit score, or those are interested in an FHA loan or other low-down-payment mortgage. It all depends on a borrower’s comfort level. A mortgage is one of the biggest financial transactions one will ever make, so make sure to thoroughly talk through all options and resources available.

Capital markets

Economic data has remained mixed over the last week, much like it has throughout the year. The main attention grabber last week was the larger than expected jump in June retail sales, which increased 0.4 percent for the month and are up 3.4 percent annually. Good consumer credit metrics, a strong job market, and increasing home equity bode well for consumers through the second half of the year. Manufacturing output increased 0.4 percent in June despite overall industrial production remaining flat. Housing starts were down 0.9 percent during June and remain in the range seen over the last twelve months. The weakness came in the multi-family sector, which was down 9.2 percent for the month. The Leading Economic Index was another area of weakness, declining 0.3 percent in June due to weak residential building permits, new manufacturing orders, and higher unemployment insurance claims. The consensus remains for a 25bps rate cut at the upcoming Fed policy meeting and the markets are pricing it in at a near certainty.

When Q2 GDP prints tomorrow (Friday), expectations are for the first sub-2 percent growth rate in two years, largely attributable to private inventories building at a slower pace. The rate at which businesses grow or drain inventories factors into GDP, though it’s notoriously difficult to predict private inventory current quarter change compared to prior quarter change since inventories are subject to large revisions. The largest quarterly inventory changes of the past three years occurred in each of the past three quarters, in large part to the escalating trade war, as businesses stockpile in anticipation of supply chain disruptions and/or higher input prices. The slowdown in manufacturing and retail sales in Q1 likely led to some unintended inventory building, but the Commerce Department reported slower growth in inventories in April and May (as did the ISM manufacturing inventories index in June), setting the table for inventories to be a drag on growth. Additionally, domestic crude oil stocks moved higher in Q2, encouraging domestic production and potentially contributing to a larger-than-expected inventory build in Q2. And Boeing’s 737 MAX issues are adding upward pressure on inventories. Finally, tariffs remain a concern among manufactures, causing larger stockpiles. All these signals point to private inventories building at a slower pace and pulling GDP growth lower in Q2, making the question not an if, but by just how much? We will find out tomorrow.

Yesterday, Besides Robert Mueller III’s testimony seeming to disappoint both Republicans and Democrats, the bond market action saw a small rally in slight curve-flattening fashion during yesterday’s midweek session, including the 10-year closing -2 bps to 2.05 percent. The small rally was from poor PMI (purchasing manager’s index) data from across the globe. Several countries’ gauge of manufacturing strength hit multi-year lows, were disappointing, or expected to be hit by trade worries: Germany, France, the entire Eurozone, Australia, and Japan. Domestically, as if the markets cared, U.S. sales of new homes increased in June, but not quite to expectations, and sales for April and March were also revised lower. Despite the low mortgage rates, low unemployment, and a tight supply of existing homes for sale, the numbers have consistently been registering at disappointing levels.

Ahead of today’s domestic open, the ECB was out with their latest policy decision (steady, but asset purchases expected soon, driving down rates). ECB head Draghi, whose term ends officially on October 31, just began his press conference. Many have predicted he will take the opportunity to announce that asset purchases will be restarted, considering he previously said that the ECB will act if the region’s economy does not improve.

We have also had the majority of domestic releases already out for consumption. Those include June Advance International Trade in Goods (-$74.17B), June Advance Retail Inventories (-.1%), June Advance Wholesale Inventories (+.2%), June Durable Orders (+2.0%), and June Durable Orders ex-transportation (+1.2%). Additionally, we’ve had the usual weekly Initial Claims, this time for the week ending July 20 (-10k to 206k). With the European Central Bank activity as a backdrop we begin the day with Agency MBS prices better .125-.250 and the 10-year yielding 2.02%.

There was this limo driver who was in business for 25 years without a single customer.

All that time and nothing to chauffeur it!

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

Rob

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

July 24: AE, LO jobs ‘cross the nation; sales, LOS, POS, customer retention products; events & training; Amazon’s partnership

Today, in Utah, it is either Pie & Beer Day, or Pioneer Day, I can never remember which. Words are funny things. How about “partners,” as in Amazon’s new TurnKey program which partners with Realogy Holdings Corp. (Better Homes and Gardens Real Estate, Coldwell Banker, CENTURY 21, Sotheby’s International Realty and ERA Real Estate)? The initiative matches up potential homebuyers, using the Amazon portal, with a local Realogy agent… If the consumer purchases a home with that agent, they receive up to $5,000 worth of Amazon Home Services (in gift card form) and smart home products (delivered directly to their new property). Which begs the question, “Why would Amazon ever want to start its own mortgage company when it can partner with an existing lender?” Speaking of houses, nationwide the square footage of new homes is actually decreasing – primarily due to smaller starter homes. But ceiling fan usage is increasing.

Employment & transitions

Nations Direct Mortgage is excited to announce the addition of Julie Duong as Chief Production Officer. “We’re beyond thrilled to welcome Julie and her experienced team to Nations Direct,” states Aimee Quinn, President & COO. “Her vast experience in developing and originating non-agency products will further enhance NDM’s proprietary non-agency offerings and establish NDM as the leader in the alternative lending space.” Nations Direct is solely focused on wholesale partnerships and offer Conventional, Government, Jumbo and Non-QM loan products. If you’re interested in learning more about Nations Direct, please contact Aimee Quinn.

NEXA Mortgage is one of the nation’s fastest growing mortgage broker, leading the way out of retail with growth across the country. If you are a LO, BM, or TL, contact NEXA now to experience why brokering is better. Many of our LOs have doubled their production within the first 3 months due to NEXA’s solid support, compensation, underwriting (you don’t really believe brokers lose control), rates, products, leadership, marketing, technology, and processing (you will love our processing). Mark your calendars now to join our weekly WHY NEXA Zoom meeting, Thursday at 11am PST. Login on to NEXA Support and our support staff will place you in the meeting. If you can’t wait to learn more, login now and ask for Michael Neill (480-643-9161) or email Michael. Currently in 9 states, submitted in 14 more and will add any requested. NEXA Mortgage, the leader in WHY Brokering is Better!”

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

“Looking for a company offering continuous growth, a full-scale marketing strategy, continued training, career improvement courses? At Carrington Mortgage we offer a complete suite of products including FHA, VA, FNMA, FHLMC and a robust menu of Non-QM programs which has further fueled our growth. We are currently recruiting experienced AE’s for our Non-Delegated Correspondent channel. If you feel your sales skills and experience would be a fit with Carrington, please email John Cervantes.”

Inlanta Mortgage, Inc. announced the promotion of Andrea Puricelli to lead its new business unit, Production Engagement Resource Center, or PERC. Puricelli will be responsible for the management and development of organizational sales resources and training initiatives that advance the utilization of key technology solutions that grow loan origination volume while improving the consumer experience. “This new business unit is just one more way Inlanta strives to go above and beyond in supporting our loan professionals in ways that are unique to our industry,” said Paul Buege, president and chief operating officer. “I’m incredibly pleased to have Andrea, who is already a proven mortgage leader, managing this new group that we feel is a true game-changer in how we support our loan officers.” If you’re a lender looking to join our innovative, top-ranked mortgage workplace, contact Inlanta’s Shaun McGuire or Beth Juergens, Directors of Branch Development, or visit Inlanta’s career page.

Are you a New England Account Executive looking to make a change with a local presence? Plaza Home Mortgage has an opening for a seasoned Wholesale and Non-Delegated Account Executive that covers the MA and NH markets, who will take over a number of open and active accounts, as well as bring in your book of business as our only rep in the market. Enjoy selling one of the largest product menus in the nation, with all traditional conventional and government programs – we also offer five Renovation Programs and a new One-Time Close Construction-to-Permanent Loan Program. Non-QM Products? Look no further… Plaza offers eight Non-QM products, from well-priced Jumbos to using Bank Statements for income. And you’ll have access to our operations office in Wakefield, MA. Plaza has both the products and technology to make you more successful than you are today. Contact Howie Needel (617.240.5707).

Cloudvirga announced Daniel Akiva as its chief technology officer, and will “rely on Akiva’s expertise as it continues to automate the entire ‘back office’ to reduce cost and improve speed in getting mortgages to consumers.”

Lender products & services

“When your LOS provider is acquired by another company, it’s natural to feel some uncertainty: ‘Will prices go up?’ ‘Will quality go down?’ ‘Will I still receive the same level of customer service?’ It’s also not uncommon to begin looking for another LOS. One that provides greater certainty and is built with the latest technology. If you’re looking for a new LOS, consider Path from Calyx, a leading provider of mortgage technology for nearly 30 years. Path is a cloud-based, fully configurable, data-driven (not form-driven) LOS with guaranteed 99.95% uptime. Designed to truly simplify the loan process, Path provides the flexibility and controls you need to monitor and run your business your way. In addition, Path’s professional services team is committed to delivering the fastest implementation timing in the industry and ensuring your long-term success. Email Michele Warren to see if Calyx Path may be a fit for your business.”

Build your business with loanDepot Wholesale’s Renovation Lending Suite, that includes programs designed to accommodate both large and small home improvement and repair projects. Therefore, giving you more options for your real estate partners and clients to meet their homeownership needs. Flexible solutions that include FHA 203k Limited and Standard as well as FNMA HomeStyle®. loanDepot Wholesale: Proud sponsor of improving homes across America. Contact us today to learn more at www.ldwholesale.com. Rates, terms, and availability of programs are subject to change without notice – www.nmlsconsumeraccess.org.

According to the MBA and STRATMOR, the cost to originate a loan has increased by over 30% in the past five years, while sales productivity per loan officer HAS NOT IMPROVED. To solve this problem and help you create immediate ROI, Momentifi has created a mobile app that integrates with your current tech stack via API. “We make it super-simple for loan officers to follow-up with clients and referral partners at exactly the right time by pushing tasks to their mobile phone from your CRM,” says Gibran Nicholas, CEO of Momentifi. “Loan officers can collaborate with LOAs and assign action items to each other. They can send personalized text messages and videos to borrowers and referral partners that get logged into your CRM for compliance. This enables loan officers to do their job on the go, helps them create efficiency and close more loans.” Click here to schedule a demo.

One of the biggest concerns in the industry right now is losing applicants to competitors early in the loan process. Failing to establish that lender-customer relationship at the beginning can make or break your yearend goals – and a lot of earnings can slip through your fingers as a result. But how can you stop your competition from pouching your new applicants and crippling your bottom line? Start by getting a solution that will shield your leads from your competitors so your quality applicants can stay YOURS. By working with Informative Research and utilizing one of their key tools, you’ll buy yourself enough time to pre-qualify your applicants for a loan and start building that crucial customer relationship. More money will stay in your pocket. Reach out now and start building a strong defense for your top applicants!

Floify continues to help lenders create a seamless mortgage experience that borrowers absolutely love! Floify’s insanely customizable point-of-sale solution coupled with their enormous suite of integrations (some of which you’re likely already using as part of your workflow) 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?” or, “How much did the home appraise for?” Now the status of these milestones can be easily accessed by your borrowers from one location using Floify. And when you provide this 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 type of next-level mortgage experience Floify can help you create, request a demo!

August training and events:

MGIC released its August training calendar for lenders.

National Mortgage Insurance Corporation has the following August webinars, please register by visiting each link below: August 6 — Oh, shift! Session #4 – Change 1PM PDT,

August 8 — Cultural Outreach on Social Media Advertising 12PM PDT, August 13 — How to Underwrite the Self-Employed Borrower AFTER Tax Reform  10AM PDT, and August 14 — Five Habits of Highly Effective Salespeople – Habit 5: Get More Attention for Your Business 12PM PDT.

The California MBA’s all-new Mortgage Innovators Conference is just around the corner with some of the best tech-focused minds in the business. The California MBA is offering you three great ways to save! If you are a member of the California MBA, you’re eligible for the, ‘Buy One, Get One’ offer! Here is the special registration offer. Additionally, register for the conference this week and you’ll be entered into a drawing for two free nights at the conference hotel! Here’s your best chance to get the latest in mortgage innovation at little cost to you!

MAXIMIZE your opportunity and register today! Finally, members of the California MBA are always eligible to register 3 of their rising stars (under 35 years of age) to attend the conference for free!

Register for FHA’s Credit Underwriting Training in Casper, WY on Tuesday, August 20, from 8:00 AM to 2:30 PM MT. This free, on-site training will take an in-depth look at a variety of topics including credit, income, and asset (CIA) documentation, manual underwriting, automated underwriting systems (AUS), closing, and more.

The Lenders One Summit in Seattle (8/4-8/7) provides a forum to learn from peers and experts in the field. “Our member and provider networks are the keys to driving our co-op ahead in this industry, and we’re excited to gather at Summit to provide a forum for you to grow and learn from thought leaders and peers.”

AmeriHome’s Correspondent underwriting management team is inviting Sellers to participate in a webinar on August 12th to cover recent Fannie Mae and Freddie Mac updates and the effect on AmeriHome guidelines and requirements.

Join the Michigan Mortgage Lenders Association at the state’s largest mortgage industry event of the year! I will be attending the MMLA Annual Lending Conference is from August 14-16 at Crystal Mountain Resort & Spa in Thompsville.

The Mortgage Collaborative will be at the new J.W. Marriott in Nashville, TN Aug 18-20 for their 2019 Summer Conference. TMC’s bi-annual conferences are extremely interactive events with the agendas constructed by and sessions led their lender members. The complete agenda and full details on the event can be found here, and for more information contact TMC’s COO Rich Swerbinsky.

Capital markets

What makes investing in the U.S. 10-year, with its 2.07% return, look good? The UK has sold £2.75 billion worth of 10-year debt at a near record low yield of 0.789% as investor demand for safe havens rises. And Switzerland’s record-low interest rates of -0.75% and sub-zero bond yields mean banks are effectively paying some customers to borrow money.

U.S. Treasuries reversed course on Tuesday, including the 10-year closing +3 bps to 2.07 percent, after the IMF raised the 2019 growth outlook for the U.S. from 2.3 percent to 2.6 percent while lowering its 2019 global GDP growth forecast from 3.3 percent to 3.2 percent. That boosted the levels of Treasuries across the yield curve.

The recent decline in mortgage rates has failed to spur a meaningful pickup in existing home sales, and today we have another date point to corroborate that narrative as Mortgage applications decreased 1.9 percent from one week earlier in the MBA Weekly Mortgage Applications Survey for the week ending July 19. Later this morning, markets will digest Markit’s preliminary July readings for Composite, Manufacturing and Services PMIs, as well as June New Home sales. We begin the day with Agency MBS prices better by a few ticks and the 10-year yielding 2.06%.

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

Who isn’t guilty of avoiding walking down a hallway because That Person is coming the other way, or standing there? The same thing happens in the animal kingdom.

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

Rob

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

July 23: CFO, LO jobs; LO training, construction, marketing products; FHA updates & free training

During my travels someone recently told me that the “x” at the end of Cajun names was attributable to illiterate Cajuns “making their mark.” But instead it seems that two hundred years ago Judge Paul Briant took responsibility for the 1820 U.S. census in Louisiana and is most responsible for the standard “eaux.” Louisiana has 90 million tons of sediment passing through in the Mississippi River every year, most of which, due to man’s intervention, passes through into the Gulf. There’s a saying, “Buy land – they’re not making any more of it.” It is one thing for the Federal Government to publicize its housing policy goals, it’s another for state and local zoning action to incorporate them. Earlier this month, the Seattle City Council approved legislation that could make it easier to build accessory dwelling units (ADUs)—like backyard cottages and mother-in-law apartments—along with language that would rein in McMansions in single-family zones.

Jobs & personnel moves

An established, multi-state, and well-known retail mortgage banker with a wide area of branches is looking for a CFO. The Mortgage Banker has a strong balance sheet, is approved as a direct seller to FNMA, FHLMC and GNMA, and has a strong leadership team that embraces core values and executes its mission and vision daily. The CFO should have previous mortgage banking experience, be well-versed in planning and executing high-level financial and accounting strategies, including oversight of asset liability management, investment management, financial reporting and analysis, budgeting, compliance, audit, mortgage origination compensation, payroll, enterprise risk management, developing financial and annual tax strategies, and general accounting in accordance with GAAP. A good candidate will have strong communication skills, experience partnering with an executive team and branch managers, presenting to the Board of Directors, engaging direct and indirect reports, have a bachelor’s degree in accounting or finance will be expected. Please send confidential resumes to Anjelica Nixt for forwarding.

Loan officers! If you’re looking to build your future with a company that is winning in the digital mortgage marketplace, check out the mortgage lending experience at Citizens Bank. Citizens recently launched a suite of digital tools that help make the total home buying experience more seamless and efficient than ever. With the new digital suite (Your Home Rewards, Blend, the digital loan platform, and Citizens One Home Loans servicing mobile app, collectively) Citizens Bank brings powerful new capabilities at each step of the home buying journey. From house hunting to loan repayment, Citizens Bank is with you every step of the way. If that sounds like a company you want to build your future with, apply at Citizens Bank today. For questions, please email Home Mortgage Recruiting.

Evolve Bank & Trust announced the appointment of Tom Gamache as SVP, Strategic Growth Initiatives to lead the tactical expansion of Evolve’s Loan Production Offices into new regions of the United States. “He will oversee recruiting, onboarding and the sales efforts of Evolve’s new Loan Production Offices nationwide.”

ReverseVision, known for providing technology and training for the Home Equity Conversion Mortgage (HECM) industry, announced it has appointed Sunny Mahdii to the position of VP of operations and will work with ReverseVision’s professional services, training, implementation, document management and customer success teams to execute a holistic operations strategy.

And congrats to Susan Allen whom Experian Mortgage has named as head of product, will be responsible for product strategy and execution of Experian’s suite of solutions for the mortgage industry.

Lender products & services

For independent and community lenders in particular, a standout borrower experience can be an opportunity to shore up your competitive edge. In this margin-constrained market, however, it can be tough to identify positive-ROI investments to improve borrower satisfaction and increase profitability. Maxwell’s eBook, “The Experience Edge,” helps shine light on the return and impact an improved borrower experience can bring to your business, providing tips to enhance your borrower experience to reap the fiscal benefits of happier borrowers. No form required and an exclusive to Rob Chrisman subscribers today, download your complimentary copy here!

Do You Want to Steal Away Agent Relationships from your Competition?  The time has never been better to take advantage of the loan officers who are abandoning their agent partners to chase the low hanging fruit of refinances.  On August 1-2, at The Palms Resort Hotel in Las Vegas, Ron Vaimberg, will present his newly updated Super Performance Agent Relationship Bootcamp (SPAR). Because of Ron’s commitment to personally guide each attendee through the master steps to winning great agent relationships, only 50 originators are permitted to attend. Attendees will master Ron’s complete system for sourcing the best agents to work with, gain their attention, and deliver Ron’s Instant Agent Relationship Presentation. SPAR Bootcamp is the exclusive event for originators committed to creating a tremendous purchase-based business, while still taking advantage of the current refi market. Save $450 when you use the code “CR” upon registration. Click Here for Details

Learn how you can Grow Outside The Box Using Non-QM in this National Mortgage Professional Magazine webinar on Thursday, July 25th at 12 p.m. EDT.  Join our informative webinar with John Wise, Regional Sales Manager at Angel Oak Mortgage Solutions. You will learn what alternative lending means now and why you shouldn’t ignore non-agency options. While things are booming right now, where will you be when the music stops and there are less chairs to sit in? Lenders will be forced to find new ways to produce volume. The non-agency market continues to thrive with growth potential of over $100 billion in annual originations expected. Find out how you can grow your business and help under-served Americans find the mortgage solution that fits their needs for the home of their dreams. Everyone wins! Sign up for the webinar here.

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

Calling all Marketing Managers: How difficult is it to produce compliant marketing that is targeted, localized, and customizable… while meeting your Loan Officer’s deadlines? Usherpa’s custom marketing portal – Launch Pad – was designed for corporate marketing teams so you can design and send materials that align with your unique company vision and brand strategies all in one place. Effortlessly build a library of collateral that is directly linked to all your LO’s databases and integrated with your Loan Origination System. Why switch between multiple systems to build content on demand when you can seamlessly design marketing campaigns within Usherpa CRM? Launch Pad is your one-stop-shop to getting the right messages out at the right time. Don’t hesitate, learn how Usherpa’s HTML email wizard leverages your efforts while saving an impressive amount of time.

Product and price used to be the key competitive differentiators. But today, product and price are being overtaken by customer experience. If you haven’t audited your current customer experience lately, now is the time. Understand how your customers feel before, during and after the transaction. Listen to the latest podcast from Total Expert Founder and CEO Joe Welu, Why Customer Experience Is the Ultimate Differentiator, for insight on how to make your customer experience stand out from the rest.

Altisource’s CTPro® solution, powered by Premium Title™ and Granite Risk Management™, helps mitigate the losses associated with setting up a construction management program internally. Read our case study to learn how a large national mortgage originator was able to overcome significant challenges in managing their construction lending program internally. With CTPro®, they were able to achieve significant risk reduction, improved construction management processes and yielded unparalleled title cost savings, averaging 30%. Discover how the CTPro® solution can help achieve double-digit cost savings for your organization.”

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

FHA/VA/Ginnie/HUD

Counter-party risk was a topic of discussion at the Ginnie Mae Summit last month. Ginnie Mae is considering proposals that would create federal safety and soundness standards for non-bank mortgage lenders that are similar to those that apply to banks. The proposals would provide for stress testing to assess a lender’s liquidity and include a requirement that lenders have a “living will” that describes how the lender would wind down its operations in the event of financial distress or the lender’s failure. The proposals stem from “Ginnie Mae 2020: Roadmap for sustaining low-cost homeownership.”

FHA is offering a free on-site training targeted primarily to appraisers and underwriters which will cover various industry-related frequently asked questions. Register for FHA Appraisal and Underwriting the Appraisal Training in Atlanta, Monday, August 12, 8:30 AM to 4:00 PM ET.

FHA Credit Underwriting is a free, on-site training that provides an overview of FHA underwriting procedures and addresses various industry-related frequently asked questions. Register for this Tuesday, August 13, 8:30 AM to 4:00 PM ET also in Atlanta.

FHA is offering free Credit Underwriting on-site training in Fort Worth. Learn from an overview of FHA underwriting procedures and addresses various industry-related frequently asked questions. Register for this Tuesday, August 13, 8:30-4 CT.

On Wednesday, August 14, from 8:30 AM to 4:00 PM ET in Atlanta, FHA is offering a free, on-site training FHA Underwriting Workshop. This hands-on training session is designed to allow attendees to apply certain underwriting policies outlined in FHA’s Single-Family Housing Policy Handbook 4000.1 to fictional scenarios.

There is FHA Appraisal Training in Fort Worth on Wednesday, August 14, 8:30 AM to 4:00 PM CT). This free, on-site training takes an in-depth look at a variety of appraisal-related topics including property acceptability criteria; minimum property requirements; property defects; appraiser responsibilities and requirements; and, much more.

FHA announced that it will delay the August 5, implementation for XML Digital Signatures being required on all appraisals uploaded to the Electronic Appraisal Delivery (EAD) System, as described in FHA INFO #18-46, until further notice. XML Digital Signature Hard Stops remain eligible for automatic overrides. For complete information on the previously revised Hard Stops, review the EAD Hard Stop Checks and Error Messages Fact Sheet.

FHA published the quarterly update to its Single-Family Housing Policy Handbook. Revisions include updated policy guidance, clarifications, corrections, and additions to SF Handbook Sec. I (Doing Business with FHA), Sec. II (Origination through Post-Closing/Endorsement), and Sec. V (Quality Control, Oversight and Compliance).

Mountain West Financial Wholesale Bulletin 19W-059 outlines updates to FHA’s Quarterly updates, timing change of Inspections in Presidentially Declared Major Disaster Areas (PDMDAs), and other updates.

LoanStream Mortgage offers Chenoa Fund Down Payment Assistance Loans. Programs available through LoanStream include the FHA Chenoa Edge Program: a 30-year, 0% rate, no payment second mortgage. Chenoa Second Repayable Program: no income restrictions with 2 options for the Repayable Second. Chenoa Rate Advantage Program: borrower can lock their first mortgage at market comparable rate.

PRMG posted updates about FHA’s Mortgagee letter 19-06, Hybrid Conforming and Jumbo products.

Capital markets

The dog days of summer! U.S. Treasuries began the week quietly, all major durations closing -1 bp from their opening levels, including the 10-year ending the day down to 2.04 percent. There was no major economic news of note, as headlines for trading revolved around a decrease in South Korean exports and an increase in China’s new bond issuance. The lull comes ahead of Britain naming Boris Johnson as its a new Prime Minister today and a slew of key central bank decisions later this week.

After a slow start to the news week, we have already had the release of the Philadelphia Fed Nonmanufacturing Business Outlook Survey for July this morning (up to 24.6). The day will also bring us Redbook same-store sales for the week ending July 20, the FHFA Home Price Index for May, June existing home sales, and the Richmond Fed manufacturing and services indices for July. The day is already underway with Agency MBS prices roughly unchanged from Monday and the 10-year yielding 2.05%.

(Thank you to Jennifer W. for this one!)

An Englishman, a Frenchman, a Spaniard, and a German man are watching a street performer. While he’s juggling, the street performer notices that the four have a bad view, so he stands on a crate and asks them, “Can you all see me now?”

The four guys respond to him, “Yes…”

“Oui…”

“Si…”

“Ja!”

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

Rob

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

July 22: DTC, AE, accounting jobs; document, non-QM, MI products; vendor news; rates steady

There are more stars in the universe than words ever uttered by all the humans who ever lived. (That’s a good line for tonight’s Happy Hour.) Money, on the other hand, is finite, and catching everyone’s attention this morning is a) Zillow telling us that 37% of U.S. homes are free and clear of a mortgage, and b) the Equifax settlement for $700 million in its 2017 data breach settlement from a consumer class action suit on behalf of 145 million people. The deal includes $77.5 million in attorney fees, per one story, and $300 million for credit monitoring – about $2 per head. I don’t know how this helps me, as my guess is that someone in a foreign land now has all of my “private” information. Can’t we take the billions that will be spent on space exploration, of dubious direct value to my family’s quality of life, and send some toward cyber security, or road & bridge repair? Okay, I’ll stop ranting…

Employment

A “best in class” VA and FHA lender who has experienced unprecedented growth is looking for 2 VPs who can bring an experienced, loyal team of multi-state licensed consumer direct mortgage bankers capable of handling a high inbound call volume. Ideal candidates must have expert knowledge of VA or FHA loan programs and managing large sales teams. Leaders will be responsible for managing the sales force and call conversions of an abundance of customer calls looking to refinance at or above our company standards. Lead conversion, pricing and loan structure skills must be exceptional. It is required for the team to generate complete mortgage applications, ensuring appropriate company procedures and policies are followed, while meeting sales goals and objectives. Contact Anjelica Nixt with confidential resumes or questions.

Mortgage Banking CPAs, a division of CWDL is looking for an Audit Manager. “Flexible hours and remote opportunities aren’t the only perks at the firm. At CWDL, our mission is to exceed the expectations of our clients by providing transformational advisory services. Our interpersonal core value is to have a positive and fun team-focused work environment where we enjoy our team members and our clients. For our clients, we have invested relationships, see beyond (what they think they want), think outside the box and always strive to exceed expectations. If these values match what you are looking for in your next position, we encourage you to apply. Come be a part of a growing team that is committed to the mortgage banking industry. Contact Mark Wilson with confidential notes of interest.

IMPAC continues to grow rapidly! “We are hiring motivated Account Executives to join our Inside Sales Team in Irvine, CA. Contact National Inside Sales Manager, Jim Mitchell, to apply.”

Lender products & services

National MI has been approved to provide private mortgage insurance on conventional mortgage loans backed by the California Housing Finance Agency (CalHFA), effective September 5, 2019. CalHFA supports the needs of California renters and homebuyers by providing financing and programs to state residents. The agency works with approved mortgage lenders to offer low interest rate loans to low- to moderate-income homebuyers in California. CalHFA’s single family division provides first mortgage loans and down payment assistance to first-time homebuyers who meet specific requirements. “National MI is thrilled to begin working with CalHFA and its approved lenders in our home state of California, especially at a time when affordability has become such a challenge for would-be homebuyers in California,” said Mike Dirrane, chief sales officer and senior managing director with National MI. Dirrane is also the chairman of MassHousing, a Boston-based affordable housing agency for the state of Massachusetts. “Our approval with CalHFA also furthers our mission of expanding homeownership opportunities to deserving borrowers.”

“How do you dominate the NON-QM market? With Impac’s newly improved guidelines and enhanced rates! For example, our new investor product guidelines now allow your borrowers to qualify off an I/O payment. Landlord experience is no longer required (in most cases) and short-term rentals are also allowed. Vacant properties, with a 20% vacancy factor, qualify too – just some ways we’ve made it easier to qualify. Get the full scoop and receive a special offer on your next loan by attending our SoCal NQM Event at the Hotel Irvine on Wednesday, August 7th. Seating is limited and filling up quickly, so RSVP today! We’ll show you new ways to grow your business and say yes to more borrowers.” And as noted above, IMPAC continues to grow rapidly and is hiring motivated AEs to join its Inside Sales Team in Irvine, CA. Contact National Inside Sales Manager, Jim Mitchell, to apply.

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

“As a lender, accuracy is critical to your operation. Nevertheless, retrieving Trailing Documents is the part of the process that gets the least scrutiny. Signatures are missed. Documents are misplaced. Deadlines come and go. Fines accrue. At DocProbewe understand your frustration, and take over the tedious task of retrieving, auditing, correcting, and shipping every deed and title policy on time. Our internal process provides a full-service solution, accepting responsibility for all aspects of the work, end-to-end. Documents are sent from the title company or county to DocProbe and then directly to the investor. Every document is accounted for. We audit records for accuracy and manage all needed corrections. Our proprietary LOS-integrated software allows you to track pending documents and stay informed, without having to be involved. With DocProbe, there are no errors, missed deadlines or penalties. Guaranteed.

Our simple onboarding process makes it easy to get started. Email Nick Erlanger or call us at 866-486-0554.”

Here’s a free webinar: “What The Top 5 Banks Don’t Want You To Know About Selling Conventional Loans.” Think selling conventional loans are too much work for too little money? The big lenders count on that mindset and make billions in the 80% of the loan market you’re not fishing in. If the bulk of your business is in the govy pond, you can’t afford to miss this webinar with NMP and Monster Lead Group, where we reveal the statistics and strategy of how to create explosive loan revenue in any market, regardless of rates. You’ll learn exactly how to make this strategy work for your business even if you’re a small lender or don’t have a large marketing budget. In this webinar, you will learn: – The top 3 reasons small companies don’t fish in the same ocean as the big lenders; – Why just focusing on VA and FHA is the biggest mistake many brokers and lenders make; – How to build a predictable, successful conventional line of business without going broke. Did you miss it? Don’t worry – watch the replay here for free .

Vendor news bits

Insellerate (the true mortgage CRM and the industry leader in intelligent borrower engagement) has added Neil Sahota, IBM Master Inventor, United Nations Artificial Intelligence (AI) subject matter expert and noted author to its board of advisors to enhance its AI technology and strategy.

New Capital Partners, a private equity firm in Birmingham, AL, announced that it has partnered with ARMCO (web-based quality assurance software for the financial services industry). “ARMCO provides a wide range of mortgage quality control, compliance and transaction risk management technologies. Its product line includes loan quality enterprise software, services, data and analytics, and the flagship product, ACES Audit Technology™, is used at virtually every point in the mortgage life cycle, setting the industry standard for user definability.”

Richey May and Co. posted a Client Alert regarding the state of California’s enforcement of regulatory requirements resulting in an increase of consent orders and penalties from improper calculation of per diem interest on loans originated in California.

Mortgage Coach announced the release of its new Advice Engine that offers the quick creation of a Total Cost Analysis with pre-defined strategy templates. The Advice Engine also includes coaching tips and scripts. Get a preview here.

OpenClose has completed its integration with Vice Capital Markets resulting in advanced hedging automation. The integration takes loan-level lock data from OpenClose’s LenderAssist™ LOS and securely transmits it directly to Vice Capital’s hedging platform. This eliminates multiple manual steps and potential “break-points” in the overall process thus saving time, reducing errors, and increasing visibility that results in optimized position management.

AI Foundry’s newest capability, mortgage document model, will enable the mortgage industry to use AI to replace multi-week manual processes. Machine vision provides classification and extraction without human interaction; expands company’s breakthrough AI-driven mortgage processing solution. The document model includes an extensive set of standard mortgage document types and common variants. It incorporates the latest in AI, machine learning and machine vision to deliver a higher level of automated classification and data extraction capabilities. This document model capability will enable the mortgage industry to use AI to replace multi-week manual processes, so that mortgages can be processed from “application to underwriting” in days, not weeks.

Capital markets

Rates continue to focus more on the Fed’s moves rather than economic news and went up slightly last week. Why? The 10-year closed yielding 2.05 percent, which is still pretty low, but the Federal Reserve Bank of New York clarified that comments made by President Williams yesterday were not meant to imply that an aggressive rate cut will be made on July 31. One could forgive 10-year Treasury traders who took off after jobs day and came back to work Friday for thinking that nothing’s happened, as the 10-year Treasury yield reversed almost all of the rise from two weeks ago, while the two-year touched levels not seen since prior to the payrolls print. While the clarification reduced expectations for a 50-bps rate cut to below 25 percent by the end of the day after rising above 60 percent Thursday afternoon, President Trump tweeted that he preferred the initial interpretation of the remarks made by Mr. Williams. No surprise there.

What would a week be without geopolitical tensions? Iran said it seized a British oil tanker in the Strait of Hormuz, heightening tensions in the critical waterway. The U.K. government said a second, Liberian-flagged vessel was taken as well. Those incidents follow both a July 11 move by the British navy to stop Iran from blocking a commercial oil tanker leaving the Persian Gulf, and an incident in early July when U.K. forces seized a tanker off Gibraltar that was suspected of carrying Iranian oil to Syria. Iran denied the vessel was heading to Syria and has since vowed to retaliate. Oil climbed on news of the Iranian action.

There were fresh reports that the European Central Bank plans to launch another round of quantitative easing by November. They are talking about the Italian government collapsing. Speaking of European banking, the highlight of this week’s economic calendar is most likely the latest decision from the ECB on Thursday, where markets are currently pricing a 50 percent probability that the deposit rate will be cut by 10 bp to -0.50 percent.

The week gets off to a quiet start regarding the domestic calendar, with only the Chicago Fed National Activity Index for June (-.02) out today. Things kick back up tomorrow with the May FHFA Housing Price Index, and June Existing Home Sales before June New Home Sales on Wednesday. Thursday sees the largest slate of releases, including June Advance Retail Inventories, June Advance Wholesale Inventories, and June Durable Orders. The week closes with arguably the most important print of the week Advance Q2 GDP and advance Q2 GDP Deflator, both expected to increase 1.8 percent. But we begin the week with Agency MBS prices better/up nearly .125 and the 10-year yielding 2.03%.

(Thank you to Stephen S. for this one.)

A professor stood before his class of twenty senior organic biology students, about to hand out the final exam.

“I want to say that it’s been a pleasure teaching you this semester. I know you’ve all worked extremely hard and many of you are off to medical school after summer. So that no one gets their GPA messed up because they might have been celebrating a bit too much this week, anyone who would like to opt out of the final exam today will receive a ‘B’ for the test.”

There was much rejoicing in the class as students got up, walked to the front of the class, and took the professor up on his offer. As the last taker left the room, the professor looked out over the handful of remaining students and asked, “Anyone else? This is your last chance.”

One final student rose up and opted out of the final.

The professor closed the door and took attendance of those students remaining. “I’m glad to see you believe in yourselves,” he said. “You all get ‘A’s.”

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

Rob

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

July 20: State lending law changes run the gamut and indicate trends in the biz

We’re not seeing the headline-grabbing Consumer Finance Protection Bureau news anymore. What’s up with that? Either companies are taking compliance seriously and are doing everything right, or the CFPB has shifted its focus. One hopes the former is true, but indeed, the CFPB appears to be shifting from enforcement to education, and only took 12 enforcement actions during the first six months of 2019 versus 23 in the first six months of 2017. Financial literacy is a good thing – just ask any LO who has dealt with borrowers who don’t know why they have to make a monthly payment. Last year the CFPB’s strategic plan listed helping consumers make responsible decisions as its top priority while listing protecting consumers from harmful industry behavior and discrimination as #2.

But plenty of states have created mini-CFPBs, leading to higher compliance costs for multi-state lenders. And certainly state lending law changes have continued unabated from coast to coast, and skimming through them helps originators determine trends.

Let’s see what’s happening in several states east of the Mississippi.

Maine has passed 2 amendments with the purpose of ensuring timely completion of foreclosures and to ensure that proper notification is made to defendants in foreclosure proceedings. Amendment HP 1020 – LD 1405 extends the mortgagee’s time to sell the property following an adjournment of the sale, provides for a waiver of foreclosure with written consent of the mortgagor, and establishes a time frame for a mortgagee to file a report of sale. And Amendment HP. 671- L.D. 907 requires that a mortgagee provide notice to a mortgagor and any cosigner to their last known address(s) by both certified mail, return receipt requested, and first-class mail, postage prepaid.

Vermont has passed S.154 an act which provides for a multitude of miscellaneous modifications to its banking provisions. The purpose of the act is to consolidate and modernize the laws and regulations relating to non-depository licensing and compliance. The provisions of S.154 take effect July 1, 2019.

Among the many revisions and updates included in the act are: the consolidation of common provisions spanning several chapters which govern the different types of non-depository lenders that operate within the state, changes to the exam cycles for loan solicitation companies, modifications to administrative penalties to bring consistency among all licensees, the addition of provisions authorizing the Department of Financial Regulation to provide advisory opinions and other letters, and the updating of references to federal laws and regulations.

Delaware has recently modified its provisions relating to licensing and fees for mortgage brokers and licensed lenders with House Bill 199 to facilitate the modernization of certain practices and procedures at the Office of the State Bank Commissioner.

The new provisions authorize the State Bank Commissioner to require applicants for a variety of additional financial services licenses to provide fingerprints for purposes of criminal background checks.  In addition to mortgage loan brokers and licensed lenders, these include money transmitters, check cashers, and motor vehicle sales finance companies.

For any of the above licenses, the Commissioner may require the applicant, the spouse of the applicant, a principal of, individual who is a person in control of, or proposed responsible individual of the applicant, or any other individual associated with the applicant and the proposed licensed activities, to provide the Commissioner or the Commissioner’s designee with a complete set of fingerprints for purposes of a criminal background investigation.

Additionally, this Act establishes a sunset provision of July 1, 2019 for §2509E of Title 6 concerning the maximum rate of interest on debts for federal workers in response to a federal government shutdown.

Delaware HB 154 passed the House Sunset Committee on June 5. If enacted, among various provisions, the bill would amend the Real Estate Appraisers€™ Practice Act to comply with federal law by clarifying the definition of federally related transaction and would add a definition for federal financial institutions regulatory agencies.

New Jersey amended its provisions relating to foreclosure with Senate Bill 362 to provide that a deed restriction on affordable housing is not extinguished in the event of a foreclosure on the property. This bill also requires that whenever a debtor is given notice that a foreclosure is pending on residential property that is a unit of affordable housing subject to affordability controls, notice must be given to the municipal clerk and the Commissioner of Community Affairs.

The foreclosing lender is also required to furnish the debtor with the address and phone number of the municipal affordable housing manager and the New Jersey Housing and Mortgage Finance Agency.  The bill further removes the ability of a foreclosing lender to use alternative methods of foreclosure not requiring a public sale when the housing unit involved is subject to affordability controls. Finally, the bill requires a creditor serving a “Notice of Intention to Foreclose” on an affordable housing unit to serve a copy of the notice on the municipal affordable housing liaison, if one has been appointed.

New Jersey AB 2085 passed the Assembly Housing and Community Development Committee with amendments on June 6. If enacted, it would create an expedited process for residential mortgage lenders to foreclose vacant and abandoned residential properties. Identical Senate bill SB 1243 is pending in the Senate Community and Urban Affairs Committee.

New Jersey AB 5084 passed the Assembly Housing and Community Development Committee on June 6. If enacted, it would establish a new registration requirement for all vacant and abandoned residential and commercial properties. Its most recent committee analysis can be read here. Identical Senate bill SB 1155 is pending in the Senate Budget and Appropriations Committee.

New Jersey SB 3147 is scheduled for a June 13 hearing in the Senate Commerce Committee. If enacted, it would create standards for remote online notaries public, including procedures for acknowledgement and proof via communication technology. Identical AB 4860 is pending in the Assembly Appropriations Committee.

New Jersey Senator Anthony Bucco introduced SB 3836 on June 3. If enacted, the bill would create an affirmative defense for certain security breaches. SB 3836 is pending in the Senate Economic Growth Committee. Identical Assembly bill AB 5467 is pending in the Assembly Science, Innovation and Technology Committee.

Through House Bill 740, the state of New Hampshire has exempted a specific type mortgage from the current law regarding licensing of non-depository mortgage bankers, brokers, and servicers.  In New Hampshire, RSA 397-A regulates the licensing of non-depository mortgage bankers, brokers, and servicers.  The new provisions exempt second mortgage loans from RSA 397-A under certain circumstances.

The new provisions exempt second mortgage loans from licensing laws, for the purpose of financing down payments or closing costs associated with the first mortgage loan, if the second mortgage loan is funded by a state entity that is already exempt and the second mortgage loan is originated by a licensed loan originator in association with the first mortgage.  According to the House Commerce and Consumer Affairs Committee, this change will make it possible for the Housing Authority to provide second mortgage support for projects that it cannot currently offer.

Connecticut HB 6996 passed the Senate on June 5 and is now waiting delivery to Governor Ned Lamont. If enacted, the bill would extend the state’s foreclosure mediation program until June 30, 2023. A detailed analysis of the bill can be read here.

Indiana amended its provisions relating to notaries public that include notarial acts, fees, remote notarial acts and other miscellaneous provisions.

The amendment provides that a statement of withdrawal of registration by a registered foreign entity may include an electronic mail address to which service of process may be made and where an electronic mail address is included in the statement of withdrawal, the statement of withdrawal must include a commitment to notify the secretary of state in the future of any change in its electronic mail address. The amendment also provides that for certain filings like articles of conversion; articles of merger or articles of domestication, the provision of an electronic mail address is discretionary.

The amendment strikes the current Uniform Commercial Code financing statement form and provides that a filing office that accepts written documents may not refuse to accept a written document for filing if the document conforms to a format approved by the International Association of Commercial.

Beginning October 1, 2019, the fee for filing and indexing a record other than an initial financing statement is increased from $4 to $12 if the record is communicated in writing. There is no statutory fee if the record is communicated by electronic filing. The fee for filing and indexing an initial financing statement is increased from $8 to $12 if the financing statement indicates that it is filed in connection with a public-finance transaction; or if the financing statement indicates that it is filed in connection with a manufactured-home transaction. The amendment further states that the number of names under which a record must be indexed does not affect the amount of fee described above.

A notary public may charge a fee of not more than $10 per for each notarial act performed. However, no fee may be collected for an attestation pertaining to: (i) a birth or death certificate issued by the state of Indiana; (ii) a diploma issued by an academic institution domiciled in Indiana and attested to in a notarial act by the academic institution’s registrar or equivalent official.

The amendment specifies that a notary public is eligible to register as a remote notary public if he or she passes a remote notarial act examination administered by the secretary of state and the fee that a notary public may charge for a remote notarial act is increased from $15 to $25. A remote notary who resigns or whose commission expires is required to maintain the contents of his or her electronic journal for at least 10 years. The amendment also provides that the law concerning remote notarial acts is applicable only to a remote notarial act performed after the earlier of the effective date of certain administrative rules or July 1, 2020.

Effective May 1st, 2019, Indiana passed House Bill 1668 into law which affects how consumer reporting agencies match consumer inquiries to credit files. 1) The bill prohibits the use of the SSN as the sole identifying factor to pull credit reports; 2) The bill requires that name, SSN and at least one additional identifier (Current address, DOB etc.) is used in determining whether a credit report in a credit bureau’s files matches the identity of a person who is the subject of a credit inquiry from a user of credit reports. Click here to learn more about the State of Indiana House Bill 1668.

Indiana also modified provisions relating to fees and charges under its Uniform Consumer Credit Code (UCCC) under House Bill 1136.

The amendment makes changes to the delinquency charges provision by replacing the $5 delinquency charge for consumer credit sales and consumer loans with a delinquency charge of: (i) $5, if installments are due every 14 days or less; (ii) $25, on any installment or minimum payment due that is not paid in full within 10 days, if installments are due every 15 days or more; or (iii) $25, on any installment or minimum payment due that is not paid in full within 10 days, in the case of a single installment due at least 30 days after the sale or loan is made.

The amendment also specifies that “a creditor may not charge or collect a delinquency charge on a payment that: (i) is paid within 10 days after its scheduled due date; and (ii) is otherwise a full payment of the payment due for the applicable installment period; if the only delinquency with respect to a consumer credit sale or a consumer loan is attributable to a delinquency charge for an earlier installment”

The amendment changes the provisions authorizing specified additional charges for consumer loans by permitting a lender to contract for and receive a transaction fee for a revolving loan account that may not exceed the greater of: (i) 2% of the amount of the transaction; or (ii) $10. Existing law authorizes the lender to charge a transaction fee in the lesser of these two amounts.

The amendment adds a new provision titled “Debt Buyers” which goes in effect after December 31, 2019. “Debt buyer” is defined to mean “a person that regularly engages in the business of purchasing debt for collection purposes regardless of whether the person: (i) collects the debt; (ii) hires another person to collect the debt; or (iii) hires an attorney for litigation connected to the collection of the debt”. The amendment lays down certain information required for an action on a debt or an arbitration proceeding requesting a judgment on a debt by a debt buyer. The amendment urges the legislative council to assign to an interim study committee that would study revisions to the UCCC and lays down the issues for consideration by an interim study committee assigned.

Illinois Senator Don Harmon introduced SB 2263 on May 31. If enacted, the bill would provide regulation of the use and sale of consumer data. It would establish consumer rights to copies of information held by persons who control and process data and would create a process to correct inaccurate data. The bill would preempt home rule and would provide that the regulation of data use and privacy are exclusively powers and functions of the state. SB 2263 is pending in the Senate Assignments Committee.

“I hear it’s easy to get ladies not to eat Tide pods. It’s more difficult to deter gents, though.”

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

Rob

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

July 19: Sales, LO, AE jobs; credit, broker, accounting products; events & training; cap. mkts. dollar roll primer

Some people pray for ice cream, and their prayers will be answered as this Sunday is National Ice Cream Day. An MLO prayer? “Dear Lord, just give me one more refi boom. I promise to save my money this time.” At the lender level there is plenty of maneuvering going on. Lenders are busy re-hiring ops staff laid off in the past, setting up contract underwriting with private mortgage insurance companies to handle the overflow, or interviewing competitor’s ops staff. Some are hiring with the caveat of not hiring anyone requiring desk space in the office. Vets know that full pipelines in July don’t necessarily mean full pipelines in October.

Employment

“How confident are you that 100% your customers are coming back to you when they are purchasing a new home? Loan Originators at First Community Mortgage are staying ahead of the competition by leveraging technology which alerts them if they have customers with a probability of listing their home in the near future. And increasing your database retention rate increases your income. Join a company that invests in YOU and YOUR success. Human Mortgage by First Community Mortgage is the perfect place for loan originators to thrive. Our experienced support staff and advanced technology helps to streamline the mortgage process giving you the ability to close more with less effort. Apply through the First Community Mortgage careers page. We have branches throughout the southeastern United States but are always looking to grow with the right ‘humans,’ no matter your location. If you have experience and are interested in discussing opening a new branch or joining our winning team, reach out to Brandon Sandefur, EVP.”

For a job in the financial services sector, due to continued growth, Inheritance Funding Company, Inc., is looking to hire an additional Funding Officer for its San Francisco Financial District home office. Inheritance Funding Company, Inc. has provided heirs waiting for their inheritance distribution with capital advances for nearly 25 years. “With nearly $200M advanced to heirs in all 50 states, IFC is the oldest and largest purveyor of inheritance advances in the country. With continued growth in this lucrative sector, IFC is looking to hire the right talent to catch up with increased demand. Inheritance or probate experience is neither expected nor required. The right candidate will have a blend of sales expertise, analytical reasoning, and strong client communication skills. Competitive base salary and uncapped incentive pay for strong performers.” Contact Eric Holdsworth, VP of Marketing.

Lender products and services

Have you converted your leases to the new accounting standard? The requirement kicks in effective January 1, 2020 so there’s not much time left to make the switch. To help you understand what is required and how to tackle this project, Henry Chavez, Principal at Spiegel Accountancy Corp., is presenting a free webinar on July 30 at 10AM PT. Avoid surprises and learn what you need to do to be compliant by year end.

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

First Guaranty Mortgage Corporation (FGMC) is excited to announce the appointment of Michael Massella, SVP of Wholesale Production. “Michael brings over 30 years of wholesale lending experience and is looking for motivated individuals to join the FGMC Wholesale Team as our nationwide expansion continues. With competitive pricing, industry leading turn times, a dedicated structure desk and more, the FGMC Wholesale Team has it all. Do you need a partner who offers Conventional, GNMA, FHA, VA, USDA, 203K and our newly released Second Lien products? We’ve got it. What about Non-QM solutions? Through Maverick Solutions, our proprietary suite of Non-QM products, we offer alternative options for jumbo loans, investment properties, and more! Sign up HERE or contact us here to get started today.

“Strong history. Bold future. Stearns Wholesale Lending is celebrating its 30th year supporting the mortgage broker. At Stearns, relationships always come first. You are never just a number. Stearns is committed to utilizing a distributed sales model supplemented by a hybrid internal sales group offering a best in class operational experience for their clients. Hear more from Account Executive Austin Willis in this video. If you’re looking to join a company that with a BOLD Future reach out to our Wholesale Recruiter Melissa Richardson at Melissa.richardson@stearns.com.”

“Can you believe it’s less than 6 months until 2020? If you’re worried about hitting your 2019 revenue goals, it’s time to rethink your strategy before it’s too late. Fortunately, Informative Research’s VP of Client Success Blair Biehle will be at the 2019 Convention of the Independent Community Bankers of Minnesota in August. Make sure to meet up with him and learn about Informative Research‘s arsenal of solutions that give you a proven plan on how to cut your credit cost by up to 50%. It’s possible to save money, retain your customers, and get all of the solutions and services you need to finish out the year strong! Just reach out and we’ll show you how.”

Events & training

The Mortgage Bankers Association of Greater Philadelphia is hosting a free webinar on July 25 at 2pm EDT sponsored by Lenders One. The topic is Top Marketing Strategies to Reach Millennial Home Buyers by Kristin Messerli of Cultural Outreach. Millennials are quickly becoming the largest home-buying generation, but lenders still struggle to reach them. Understanding the millennial mindset, their values and communication styles are key in reaching this group of first-time home buyers. Registration is free here

The 2019 Convention of the Independent Community Bankers of Minnesota is being held 8/1-8/3.

The Lenders One Summit in Seattle (8/4-8/7) provides a forum to learn from peers and experts in the field. “In this challenging market, we’re focused on continuing to bring new solutions to support your business. Our member and provider networks are the keys to driving our co-op ahead in this industry, and we’re excited to gather at Summit to provide a forum for you to grow and learn from thought leaders and peers.”

CECL is up for public comment, but FASB and its requirement for an estimate of expected credit losses over the life of the portfolio to be effectively recorded upon origination is still a concern. The new accounting standard applies to all banks, savings associations, credit unions, and financial institution holding companies. Join OMBA’s Webinar, on Tuesday, August 6th beginning at 10:00. Mike Cavellaro & Rob Folland, Barnes & Thornburg LLP will provide an in-depth look at what is required of your financial institution. There is no charge to OMBA Members & Non-Members.

AmeriHome’s Correspondent underwriting management team is inviting Sellers to participate in a webinar on August 12th to cover recent Fannie Mae and Freddie Mac updates and the effect on AmeriHome guidelines and requirements.

Mortgage Innovators Conference is the ONLY mortgage industry conference that highlights all innovators! Taking place August 11-13 in San Diego, it will feature engaging, expert speakers on a variety of topics from Day 1 Certainty to blockchain and everything in between.

Join the Michigan Mortgage Lenders Association at the state’s largest mortgage industry event of the year! I will be attending the MMLA Annual Lending Conference is from August 14-16 at Crystal Mountain Resort & Spa in Thompsville. This event is for anyone in the mortgage industry and has something for independent mortgage bankers, brokers, community banks, commercial banks, credit unions, and all companies that provides a service to the industry!

The Mortgage Collaborative will be at the new J.W. Marriott in Nashville, TN Aug 18-20 for their 2019 Summer Conference. TMC’s bi-annual conferences are extremely interactive events with the agendas constructed by and sessions led their lender members. The entire events are heavily focused on exchange of best practices, experiences with third party providers, and operating more efficiently and profitably. The complete agenda and full details on the event can be found here, and for more information contact TMC’s COO Rich Swerbinsky.

The New England Mortgage Bankers annual conference will be held 9/11-9/13 in Newport, Rhode Island.

The MBA of Southwest Pennsylvania Fall Kickoff in Pittsburgh (LeMont Restaurant) will be held Wednesday, September 18th.

Capital markets

Let’s “open the kimono” a little on some of the capital markets nitty gritty. Capital markets folks are talking about how the drop from one month to the next in MBS prices is negligible, translating to rate sheet pricing differences for a 30-day lock versus a 60-day lock price isn’t large. (LOs know, however, that a longer lock period can result in a potential borrower shopping around for a lender, or an increased chance of renegotiation if rates drop. Grab ‘em while you can!)

Recently the New York Fed announced it would engage in four small value agency MBS dollar roll open market transactions, as they do from time to time, for the purpose of testing operational readiness to implement existing and potential policy directives from the Federal Open Market Committee (FOMC). The New York Fed’s Open Market Trading Desk conducts these exercises to test its operational readiness in the Authorization for Domestic Open Market Operations and Authorization for Foreign Currency Operations.

But what is a dollar roll and why should originators care? It’s a type of repurchase transaction in the mortgage pass-through securities market in which the buy side counterparty of a “to be announced” (TBA) trade agrees to a sell off the same TBA trade in the current month and to a buy back the same trade in a future month. Like you are selling your brother a car, but agreeing to buy it back in a month for a set price.

The term “roll” refers to rolling the securities forward a month, or three, the most common and most liquid contract dates for rolls. Because there is no increase or decrease in the outright position, dollar rolls carry no, or very little, duration risk. It is simply an extension of a contract, not a new contract. Rolls can be purchased by a new transaction where the originator wishes to push their hedge out to a further date.

Rolling allows the buy side trade counterparty to invest the funds that otherwise would have been required to settle the buy trade in the current month until the agreed upon future buy-back. The sell side trade counter-party benefits by not having to deliver the pass-through securities (which they might otherwise have shorted or committed to another trade) in the current month. Prices vary month to month based on the supply of large collateralized mortgage obligation deals that increase the demand for mortgage pass-through securities, or unexpected fallout of mortgage closings in a mortgage originator’s pipeline. In either case, financial institutions might have more sell trades in the current month than they are able to deliver securities into, forcing them to “roll” those trades into a future month.

Every basis point can help a lender, and in turn help its borrowers, right? The ability to “trade rolls” gives additional flexibility to MBS market participants, allowing them to better manage the risks and exposures of their production cycles and take advantage of attractive funding opportunities. Trading in rolls takes place to accomplish a variety of purposes such as obtaining pools as collateral for newly issued transactions, pushing hedges further into the future if loans are funded at a slower than expected pace, taking advantage of favorable financing opportunities available through the roll market, and efficiently delivering newly created pools against their TBA transactions.

Thursday was a snoozer of a day in the bond market until the very end. That changed with a late rally that saw the curve steepen and the 10-year close -2 bps to 2.04 percent, after New York Fed President and permanent FOMC voter Williams said that rates should stay lower for longer and that the central bank should not keep its powder dry when neutral rates are low. Specifically, he stated “it’s better to take preventative measures than to wait for disaster to unfold. When you only have so much stimulus at your disposal, it pays to act quickly to lower rates at the first sign of economic distress.” Those remarks, in which he also lamented the lack of a larger increase in the cost of living despite the fact that inflation was lower and the central bank was making large daily asset purchases when the fed funds rate was near zero, grabbed the market’s attention.

That was one of many central bank developments throughout the day. There were also reports that the European Central Bank is considering a change to its inflation target, which bid EGBs as markets assumed lower for longer; the Bank of Korea unexpectedly lowered its repurchase rate, Bank Indonesia cut its repurchase rate, and the South African Reserve Bank lowered its repurchase rate. Lots of lowering out there!

Preliminary June Michigan sentiment is the only domestic release slated today, but there is a little Fed speak with both St. Louis Fed President Bullard and Boston Fed President Rosengren delivering remarks. We begin the day with Agency MBS prices worse .125 and the 10-year yielding 2.05%.

Thank you to Richmond, VA’s M.S. for passing along something that should be printed out ahead of every conference call.

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

Rob

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

July 18: LO, AE jobs; bulk bid, construction, broker products; lender flood news; State Farm/Rocket Mortgage

There’s a lot going on out there! Rocket Mortgage is creating new technology that will allow the State Farm agents to offer a Rocket Mortgage loan as a licensed loan originator. Some accounting staff believe their prayers have been answered regarding CECL. The Financial Accounting Standards Board voted Wednesday to propose to delay some of its major accounting standards (including credit losses, leases, hedging and long-duration insurance contracts) for private companies, nonprofits, and small reporting companies. And in the courts, a ruling dealt a blow to efforts by HUD to restrict nonprofit housing funds from operating on a national scale. Chenoa is especially interested in Judge David Neffer (U.S. District Court, Utah) granting an injunction from the bench further delaying implementation of the letter, according to people following the case, as it seems Brian Montgomery’s letter ran afoul of the Administrative Procedure Act.

Jobs

Wrapping up another record-breaking quarter, non-QM lender Angel Oak Mortgage Solutions added to its impressive roster of Account Executives in June. Paul McDermed came on-board in Chicago, with David Salim, Anthony Prieto, John Sciascia and Zuly Munoz joining Inside Sales. These AEs have gone through the first round of training and have been teaching brokers and correspondents how easy it is to work with Angel Oak. Angel Oak is not done yet as it is continuing to add Account Executives in many additional markets across the country and Inside AEs in Miami. To learn more, view the latest job openings on the Careers Page or email Regional Sales Manager, John Wise.

Sierra Pacific Mortgage, Inc. is pleased to announce the addition of mortgage executive Amy Mahar as Executive Vice President, Third Party Originations. Amy brings an impressive 25 years of experience to Sierra Pacific, including implementing origination platforms, building successful teams and exponentially growing market share in third party originations. ‘Sierra Pacific has been committed to the broker community for over 30 years and this channel is significant to our organization. Because of that commitment, we are thrilled to take the next step in our growth strategy by hiring Amy,’ said Jay Promisco, Chief Production Officer. ‘Amy is widely known as a visionary industry leader. Her work ethic, combined with her commitment to the TPO channel and our associates, complements our culture we describe as Promises Made. Promises Kept. With Amy’s leadership, Sierra Pacific will continue to grow its market share by providing the TPO community the service and support they deserve.’”

National mortgage, NewRez, is looking for Loan Officers to join its new Joint Venture partnership in the Orange County and San Diego County areas in California. “We have several great opportunities available for candidates looking to obtain a competitive edge of being a Preferred Lender inside a very successful and prominent real estate company,” says Vince Daino, VP of Recruiting and Business Development. “The right person should be growth minded and able 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.

Congrats to Chris Fleming whom Waterstone Mortgage promoted to SVP, National Sales. Very cool since he stared off as a branch manager in 2009 with Waterstone. He will be responsible for day-to-day interactions with Waterstone Mortgage’s branches, and will oversee branch financials and business development.

Lender services and products

We all understand the impact a top producer can have on a lending team’s bottom line and loan volume. Top producers drive disproportionate volume and can stimulate meaningful business growth, which is why so many managers spend a bulk of their time attracting and retaining high-performing LOs. But how can you find a sustainable model to groom and motivate the top performers on of your team today? Maxwell 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 eBook, “14 Habits of High-Producing Loan Officers,” highlights the tips and tricks that make them stand out from the competition. No form or email required; this eBook is a must-read for ambitious managers looking to elevate their team’s performance. Download your complimentary copy here.

In celebration of National Mortgage Brokers Day, AFR Wholesale reaffirms its commitment to the success and support of mortgage brokers, guiding them through opportunities for new business with unique programs for Manufactured Housing, as well as Renovation and their comprehensive One-Time Close suite of products. AFR Wholesale’s One-Time Close offerings include FHA, VA, USDA and Conventional OTC programs. Designed to simplify the financing process for homebuyers, eliminating the need to obtain a construction loan and permanent mortgage, fast turnaround, low construction administration fees, and the ability to apply various down payment assistance programs are just a few of the ways AFR has applied its expertise to One-Time Close lending. To further help brokers, correspondents, builders and MH dealers, AFR Wholesale provides personalized concierge service to guide originators and their builder/dealer partners throughout the One-Time Close process. For more information, email sales@afrwholesale.com or call 1-800-375-6071.

Financial brands are racing to keep up with rising consumer expectations and ultimately modernize their customer journey. With that comes implementing the right technology solutions to fuel digital transformation. But before you can enhance the customer experience to grow lasting connections, you must lay the groundwork for modern marketing success across four crucial steps. Read the Total Expert blog for step two of digital transformation: gathering input from key stakeholders.

Walking through a pitch-black dark room is scary.  It’s also scary not knowing what is going on with your loan. QLMS is turning on the lights! Unlike most lenders, QLMS obtains vendor items, like homeowners insurance and VOE’s, for their partners. And starting today, QLMS partners can see, on their PC or smart phones, the status of every loan’s vendor items. Introducing “Vendor Visibility” – another major innovation from the most innovative lender in the country. With 24/7/365 visibility into their loans, QLMS’s partners have real-time certainty as to where each loan stands. If you’re tired of stubbing your toe in a dark room, click here to let QLMS shine the light of visibility on your precious loans.

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

GSF Mortgage Corporation is now able to offer customers a Float Down option for Single Close Construction loans. The interest rate and monthly payment will automatically be lower if interest rates are lower when their home is complete. A Single Close Construction to Permanent loan provides customers with the peace of mind of knowing what their interest rate and monthly payment will be before construction begins and when construction is complete. “GSF Mortgage Corporation offers more choices to our customers than most other lenders, to buy or build their dream home. If you are an Originator with construction experience, please contact our VP of Retail, Frank Papaleo for information on our growing Single Close Construction program.”

Where’s Noah?

Lenders know that FEMA is the ultimate authority for disaster updates, and have procedures and policies based on disaster declarations. Who’s doing what from a lending perspective?

FEMA announced, via Amendment No.11, an extension to the incident period end date for Iowa counties to June 15, 2019.

Fannie Mae issued a reminder to those impacted by Tropical Storm Barry of available mortgage assistance and disaster relief options. Under Fannie Mae’s guidelines for single-family mortgages: Homeowners affected by disaster are often eligible to stop their mortgage payments for up to 12 months. Mortgage servicers are authorized to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days, even without establishing contact, if the servicer believes the homeowner was affected. During this temporary payment break, homeowners will not incur late fees, credit bureau reporting is suspended, foreclosure and other legal proceedings are suspended. When payments resume, a loan modification may help maintain the pre-disaster payment amount. Homeowners may request mortgage assistance by contacting their mortgage servicer following a disaster.

Fannie Mae also offers help navigating the broader financial effects of disaster to homeowners with a Fannie Mae-owned mortgage through its Disaster Response Network*, including: A needs assessment and personalized recovery plan. Help requesting financial relief from FEMA, insurance, servicers, and other sources. Web resources and ongoing guidance from experienced disaster relief advisors. Homeowners can call 877-833-1746 to access Fannie Mae’s Disaster Response Network™* or other available resources.

Freddie Mac issued a reminder to Single-Family mortgage servicers of its disaster relief policies for borrowers affected by Tropical Storm Barry. Freddie Mac’s disaster relief options are available to borrowers whose homes or places of employment are located in federally declared Major Disaster Areas where federal individual assistance programs are made available to affected individuals and households. In areas where the FEMA has not yet made individual assistance available, mortgage servicers may immediately leverage Freddie Mac’s short-term forbearance programs to provide mortgage relief to their borrowers affected by the storm.

Freddie Mac Single-Family disaster relief policies authorize mortgage servicers to help affected borrowers in eligible disaster areas: those federally declared Major Disaster Areas where federal individual assistance programs have been extended. A list of these areas can be found on FEMA’s website.

Freddie Mac Single-Family mortgage relief options for affected borrowers in eligible disaster areas include: Suspending foreclosures by providing forbearance for up to 12 months;

Waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and Not reporting forbearance or delinquencies caused by the disaster to the nation’s credit bureaus. Freddie Mac is reminding servicers to consider borrowers who are impacted by the storm, but who live and work outside of an eligible disaster area, for Freddie Mac’s standard relief policies, which include forbearance and mortgage modifications. Affected borrowers should immediately contact their mortgage servicer—the company to which they send their monthly mortgage payment.

Tropical Storm Barry set in motion Wells Fargo’s Funding Seller Guide and to disaster declarations listed on the FEMA website.

U.S. Bank Correspondent/HFA SEL-2019-028 is available for viewing. Topics include independent appraisal review, delinquent credit/material and disaster declarations.

FEMA granted federal disaster aid with individual assistance to Turner County in South Dakota affected by flooding during the period of 3/13/2019 – 4/26/2019. AmeriHome Mortgage issued a reminder to Sellers that they are responsible for determining potential impact to a property located in an area where a disaster is occurring or has occurred. Irrespective of whether a property was included in the area covered by the declaration. If a Seller has reason to believe that a property might have been damaged in a disaster the Seller must take appropriate action to ensure that the property is free from damage and meets AmeriHome requirements at the time of purchase by AmeriHome. Employment re-verification requirements for declared disaster areas are not necessary at this time.

Mortgage Financial Solutions posted a revised announcement regarding the Oklahoma Storms.

First Community Mortgage Wholesale Announcement on July 2nd covers various updates to private flood insurance requirements, VA transactions, HomeReady and Home Possible guideline updates. And 2019-21 noted its Disaster Counties Announcement.

Mortgage Solutions Financial issued Announcement 13-19W a revision regarding the Arkansas flooding disaster alert.

The FAMC Correspondent National Bulletin 2019-16 includes information on private flood insurance. FAMC will require a copy of the full private flood insurance policy to be delivered in the closed loan package.

SunWest Mortgage Company posted an informational update on the disaster reported by FEMA in the state of Ohio.

PennyMac Correspondent Group has posted an announcement regarding flooding in the Midwest.

Capital markets

Compass Analytics today announced enhancements to its whole loan trading platform, CompassBid™! With more than $350 Billion bid through the platform last quarter, CompassBid™ remains the industry’s leading whole loan trading platform, offering the most advanced bid automation, agency optimization and loan valuation capabilities for aggregators and lenders of all sizes. The latest CompassBid™ release prioritized tools that save lenders time and money by efficiently selling their own loans, including several workflow enhancements to further simplify the loan sale process. Users now can review user-defined fields within CompassBid™ at the time of best execution analysis, choose from multiple trade allocation strategies when making hybrid AOT decisions, and more easily calibrate investor bids to current market pricing, among other enhancements. Contact Compass to learn more!

Turning to the Treasury market, durations across the curve rallied, including the 10-year closing -6 bps to 2.06 percent after the release of a weaker-than-expected report on July housing starts and building permits. Looks like single family residences will remain a limiting issue for the overall housing market. The Federal Reserve’s Beige Book for July was released, describing the expansion of overall economic activity as “modest.” Most Districts reported a slight increase in sales of retail goods; vehicle sales were little changed; tourism was described as “broadly solid;” transportation sector reports were mixed; home sales increased slightly; construction was little changed; and finally, loan demand increased in all but two Districts. As far as Fed speak went, Kansas City Fed President and FOMC voter George said that she is willing to adjust her view on rates due to growing trade-related uncertainties and weaker growth abroad,

Today’s action began with initial jobless claims for the week ending July 13 (up slightly, but as expected) and Philly Fed (21.8, a nice improvement). Later this morning brings remarks from Atlanta Fed President Bostic and New York Fed President Williams; and June leading indicators. We begin the day with Agency MBS prices roughly unchanged and the 10-year yielding 2.06%.

(Thank you to Ruth at MegaStar Financial for this one aimed at folks with a good vocabulary.)

What do you call two crows on a wire?

An attempted murder.

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

Rob

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

July 17: MBA, national account jobs; comp, broker, compliance exam products; F&F changes; the Fed & rates

I encounter plenty of people in the mortgage biz, from part-time receptionists to owners, who are focused on helping consumers. It’s a good thing! And they ask me about consumer education. (“Have you ever heard of a class for anyone on home buying or the home loan process?”) One solution, and this is not a paid ad, is to invite them to set up a personalized (branded in your name, look/feel) financial locker through FinLocker, which currently houses over 140 consumer-facing videos and includes goal setting, budget planning and more. Shoot President Brian Vieaux an email to learn more. If it helps just one potential borrower or kid in school, or saves you from creating 140 videos, why not?

Employment

MBA is hiring an Assistant Director of Member Engagement to add to MBA’s dynamic engagement team. The incumbent develops, strengthens and manages personal relationships with executives at the Association’s member companies in order to maximize the value of their MBA membership and engagement. S/he coordinates and facilitates integration in delivering enhanced member value and provides comprehensive account management and support, connecting members to the MBA resources that meets their needs, from engaging on policy issues to leveraging MBA’s conferences, committees, networking groups, education, research and more. Contact Tricia Migliazzo if you have questions, otherwise you can apply here.

NEXA Mortgage is one of the nation’s fastest growing mortgage broker, leading the way out of retail with growth across the country. If you are a LO, BM, or TL, contact NEXA now to experience why brokering is better. Many of our LOs have doubled their production within the first 3 months due to NEXA’s solid support, compensation, underwriting (you don’t really believe brokers lose control), rates, products, leadership, marketing, technology, and processing (you will love our processing). Mark your calendars now to join our weekly WHY NEXA Zoom meeting, Thursday at 11am PST. Login on to NEXA Support and our support staff will place you in the meeting. If you can’t wait to learn more, login now and ask for Michael Neill (480-643-9161) or email Michael. Currently in 9 states, submitted in 14 more and will add any requested. NEXA Mortgage, the leader in WHY Brokering is Better!”

A leading mortgage technology company is seeking a National Account Manager with a proven track record of success in working with consumer direct lenders. The ideal candidate will have a minimum of 3+ years in selling B2B services and technology. You may work remote, so organization and accountability are a must. Frequent travel across the US to meet and present to potential clients as well as participate in trade show opportunities will be required.  Create and deliver effective presentations. Effectively manage pipeline, sales activity, and provide accurate forecasting. You must have a proven track record of success in a high-volume fast paced role. Previous experience in technology sales selling to financial institutions and C-Level executives. Pre-existing contacts in the mortgage and banking industry are a big plus. Send notes of interest to Anjelica Nixt.

Lender products & services

“The Customer Experience is critical. Today, everyone has been focused on the Digital revolution taking place within the mortgage life cycle. While speeding up cycle times and lowering costs are important, we must not lose sight of the key element that drives our business. The consumer, how do you lower costs while improving customer experience? That key focus is, ‘Why?’ Lenders and Servicers are partnering with Sutherland. Our Design and Innovation Labs in San Francisco are a customer’s centric think tank that allows us to uncover opportunities to increase our client’s business. Whether you’re trying to reduce withdrawal rates, increase portfolio retention or reduce call center volumes with Conversational AI, our focus is to pinpoint areas of improvement that keep your most precious asset, ‘the borrower.’ If interested in learning more, or obtaining a Whitepaper on how we recently helped a top 5 Lender, please contact Neil Armstrong (919-270-5324).”

Things are continuing to grow out on the farm! RuraLiving is expanding its Hobby Farm and Rural Resident programs in support of rural America. If you are looking to expand your business and markets, you should explore how RuraLiving programs might help your borrowers finance large acreage properties that do not qualify for conventional or USDA programs. Check out their lender update with their new additions to these unique programs.

Caliber Home Loans, Inc. continues to make Non-Agency loans more efficient and effortless for our business partners through innovations and technology. Caliber Smart Start is a game-changing tool that validates loan parameters against Caliber’s portfolio program guidelines with just a few clicks of a mouse. Smart Start also takes the guesswork out of processing and documenting the loan file. This free tool reduces uncertainty and allows you to expand your product offerings and turn your pipelines faster. Fire up your Non-Agency production today by visiting www.CaliberSmartStart.com.

Lenders Compliance Group posted an article on its Mortgage FAQs website titled

Compliance Management System – Exam Readiness. One of its subscribers was cited for a deficient compliance management program and asked for some urgent guidance. Jonathan Foxx, LCG’s Chairman, wrote a response that you should read. He lays out the dangers in not being prepared, provides a whole set of important questions for self-assessment, and, as a solution, offers the CMS Tune-up!™ – one of many “mini-audits” that the compliance firm has pioneered – which LCG says is cost-effective, done relatively quickly, and offers “actionable findings.” The article has links for presentations and appointments as well as for scheduling calls and audits. You can read the post HERE.

National mortgage lender, NewRez, recently announced the launch of Preferred Lending Services, LLC (“Preferred Lending Services”), a new Joint Venture mortgage company operating in the Greater Tampa, Florida region. Led by industry veteran Bob Klorer, Preferred Lending Services is the 13th Joint Venture to be established in the NewRez partnership network. “We are thrilled to formally expand our lending footprint throughout the state of Florida with the launch of Preferred Lending Services,” says Randy VandenHouten, SVP, Joint Venture & Retail Lending, NewRez. “Under Bob’s leadership, and backed by the strength and expertise of NewRez and Shelter Mortgage, Preferred Lending Services will prove to be a great asset to the Greater Tampa community.” For more information on the Shelter Mortgage Joint Venture platform, please contact Randy VandenHouten. To learn more about Preferred Lending Services, visit flpls.com.

“July 18th is National Mortgage Brokers Day, brought to you by Association of Independent Mortgage Experts (AIME). Why are we celebrating this day JUST for brokers – and why now? The age of millennial shifts the market towards a more economical versus emotional drive to purchase a home. After a 10-year industry lull, independent mortgage brokers began to rise back to the surface. In doing so, millennial home buyers realized the benefits of researching all of their options and started using brokers for their mortgage needs. This increased the independent mortgage broker share of the housing market from 8% to 15% in just a year and a half, according to data from Inside Mortgage Finance. This year, we’re bringing you a number of ways to get involved and help spread the word that #BrokersAreBetter. See how you can show your support this #NMBD on AIME’s National Mortgage Brokers Day event page.”

Growing your team is a great accomplishment that also multiplies the number and complexity of LO comp plans. After acquiring several banks and absorbing MB Financial Bank’s mortgage division in July 2018, Level One’s own mortgage team doubled in size, spurring the decision to move from manual, spreadsheet-based commission calculation to LBA Ware’s full-featured compensation management platform CompenSafe. Said Level One Bank Executive Vice President, Consumer Banking Officer, Timothy R. Mackay: “CompenSafe created significant efficiencies for our payroll department, saving countless hours of manual labor and eliminating the risk of human error. Additionally, it has improved compensation transparency with our loan originators who now have the ability to login and view their pipeline and payroll information at any time.” Get the full scoop on how Level One leveraged CompenSafe to scale up here.

Conventional conforming changes just don’t stop

Fannie Mae Announcement SEL 2019-06 outlines changes related to HomeReady® income limits, clarifies requirements for compliance with Office of Foreign Assets Control Regulations, simplifies requirements for signed IRS Form 4506-T, updates its definition of relocation loans and disaster policies reminders.

Wells Fargo Funding announced it will not purchase Freddie Mac CHOICERenovation Mortgages.

A recent Fannie Mae Servicing Guide update outlines its escrow waiver policy and clarifies requirements for compliance with Office of Foreign Assets Control (OFAC) regulations.

Freddie Mac’s Guide Bulletin 2019-7, explains its revised requirements for Home Possible® mortgages to state that, effective July 3, occupying borrower(s) must not have an ownership interest in more than two financed residential properties, including the subject property, as of the note date (or as of the effective date of permanent financing for construction conversion and renovation mortgages).

Plaza offers a One Time Close (OTC) Construction-to-Permanent Conventional Loan Program through its Wholesale Lending Division. Instead of securing separate construction financing AND permanent financing, borrowers can combine them into one single transaction.

Capital markets

The Fed has publicly stated the concern with ongoing trade tensions weighing on business investment and slowing GDP growth, and easing would be consistent with the Fed making efforts to meet the price stability side of its mandate. But more accommodative policy would help support growth and hiring, putting pressure on remaining resource capacity in the economy and leading firms to raise prices. At issue for the FOMC is that slack is the part of the inflation equation that the committee can influence in the short term, but the undershoot in inflation remains centered in goods and services largely unaffected by slack. Prices in “acyclical” inflation categories have been running lower than cyclical areas in recent years, and are materially weaker compared to historic trends. Fed easing in the coming months should support higher inflation by driving the cyclically sensitive areas of inflation higher. With core inflation running below the FOMC’s target for almost all of the current cycle and inflation expectations drifting lower, the price stability side of the FOMC’s mandate needs all the help it can get. Yet, with acyclical inflation categories responsible for the bulk of the underperformance, rate cuts are unlikely to solve inflation’s persistent shortfall on their own. Look for core inflation to continue to run below 2 percent through the second half of the year, even as the Fed likely provides some additional policy support.

Fed Chairman Powell’s testimony before the House Committee on Financial Services left the markets expecting a rate cut on July 31st. Now the question becomes by how much? There has been discussion that the Fed may choose to go beyond the expected 25bps movement and cut by 50bps, however that may be too aggressive at this point. Most experts seem to believe the Fed will move 25bps this month and cut another 25bps later in the year depending on the prevailing economic conditions. Inflation data in June continued to be below the Fed’s target as the Producer Price Index over the previous twelve months was up 1.7 percent and the consumer price index was up 1.6 percent over the same period. The Fed does not want to see the economy enter a deflationary cycle given that consumer spending accounts for 70 percent of the economy. Combined with the other downside risks surrounding trade and slowing global growth the fed may feel the time is right to give the economy a little boost.

The treasury market took another hit yesterday, including the 10-year closing +3 bps to 2.12 percent following a stronger than expected economic release in the form of June Retail Sales, a recent trend that has seemingly diminished the prospect of a 50-bps rate cut at the July 30-31 FOMC meeting. Despite the largest YoY decline in June import prices in three years, President Trump saying we have a “long way to go” with China on trade (claiming he still has the option to impose tariffs on $325 billion worth of Chinese goods), and dovish-minded remarks from Fed Chair Powell and Chicago Fed President Evans in which both said the Fed will act as appropriate to sustain expansion (read: two potential rate cuts regardless of a China deal), Treasuries seemed to be propelled in slinky-like fashion as they rebounded from recent overselling.

Today began with Mortgage applications decreasing -1.1 percent for last week, according to data from the MBA Weekly Mortgage Applications Survey (adjusted for the Fourth of July holiday). Next up is housing starts and building permits for June (-.9% due to multifamily numbers, and -6.1% respectively), before the afternoon brings remarks from Kansas City Fed President George and the latest Beige Book. And looking at current conditions, Agency MBS prices are up a few ticks versus last night’s close and the 10-year is yielding 2.09%.

Overheard here in San Francisco. “I just watched a documentary on marijuana. I think all documentaries should be watched this way.”

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

Rob

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

July 16: AMCs wanted; rehab, U/W, training, non-QM, marketing products; Ginnie’s growth

Although lots of small lenders don’t seem interested in being acquired any longer (“Hey, our pipeline is full and we’re making money again!), M&A is alive and well. The latest example comes from Southern California where William Lyon Homes (NYSE: WLH) has bought South Pacific Financial Corp., a retail mortgage banking company based in Irvine. South Pacific has been rebranded as ClosingMark Homes Loans Inc., and is part of a new financial services division being launched by the homebuilder. The unit, ClosingMark Financial Group, will include title insurance, settlement and mortgage services.

Jobs & franchises

AMCs and Title Companies: Due to continued growth, Accurate Group is looking to acquire appraisal management and title/closing businesses throughout the U.S., with particular emphasis in the Western U.S. By becoming part of Accurate Group, your teams will gain access to the latest digital and mobile technologies and be on the leading-edge of revolutionizing real estate lending processes. Please contact Paul Doman to learn about Accurate Group’s approach to acquisitive growth.

Are you tired of managing a corporate P&L? Then maybe it’s time to start managing your own instead. Introducing Motto Franchising, LLC, the very first national franchised mortgage brokerage network in the U.S. When you join the Motto Mortgage network, you have the freedom and flexibility to run your own business while taking advantage of an out-of-the-box mortgage company solution. We even streamline the process of starting a new business by providing a strong wholesale lender mix, franchisee setup support, LOS training, licensing assistance, marketing tools and more. It’s time to manage your future, on your terms. To learn more on how this innovative model is breaking the mold, contact our team (866.668.8649).

Lender products and services

As a lending manager, the winding down of home-buying season is the perfect time to re-evaluate your process and determine how technology can help unlock the potential of your business. Taking a step back to look at what you’ve accomplished this home-buying season and how you can improve next time around is crucial for meaningful year-over-year growth. Whether it’s improving your borrower experience, lifting referrals, or increasing back-office efficiencies, digital mortgage providers like Maxwell are an impactful way to push your business forward. Today, Maxwell has 150+ retail-focused lenders on the platform that enjoy increased efficiency — closing loans 45% faster than the national average — and elevated borrower experience, seeing customer satisfaction increase as high as 25%. To experience Maxwell, click here and set up time for your customized demo. It’s not too early to start planning for 2020!

MortgageFlex Systems a leading industry LOS provider announced its successful integration of MortgageHippo, a borrower-centric digital lending platform with CU Home Mortgage Solutions (CUHMS). MortgageFlex realized MortgageHippo was an efficient solution because of its ability to improve automation, adapt to the lenders look and feel, and support lender strategies. By utilizing open API’s, the integration was seamless. MortgageFlex and MortgageHippo align on the same values and mission to exceed customers’ expectations. Both organizations strive to deliver a smooth digital experience across multiple channels of lending. Now, MortgageFlex and MortgageHippo are expanding their relationship to offer a bundled cost solution. “The focus of many lenders is to establish a POS presence that will improve the quality of originations and level of customer service,” COO of MortgageFlex, Craig Bechtle said. “By creating an industry-leading integration between MortgageFlexONE and MortgageHippo, we were able to provide CUHMS, a seamless transition between POS and LOS.”

Verus Mortgage Capital, the industry’s premier non-QM investor, helps lenders reach responsible borrowers like the self-employed, foreign nationals and real estate investors who don’t fit traditional credit profiles. Grow your customer base, your margins, and your loan offerings. Learn more about Verus’ correspondent lending opportunities at CMBA’s 47th annual Western Secondary Market Conference July 15-17. Email Jeff Schaefer to schedule an on-site meeting.

Calling all Marketing Managers: How difficult is it to produce compliant marketing that is targeted, localized, and customizable… while meeting your Loan Officer’s deadlines? Usherpa’s custom marketing portal – Launch Pad – was designed for corporate marketing teams so you can design and send materials that align with your unique company vision and brand strategies all in one place. Effortlessly build a library of collateral that is directly linked to all your LO’s databases and integrated with your Loan Origination System. Why switch between multiple systems to build content on demand when you can seamlessly design marketing campaigns within Usherpa CRM? Launch Pad is your one-stop-shop to getting the right messages out at the right time. Don’t hesitate! Learn how Usherpa’s HTML email wizard leverages your efforts while saving an impressive amount of time.

“Just like summer, XINNIX has a deal that won’t last forever! We are providing exceptional Summer Savings to help your referral business grow with two outstanding one-hour classes for one great low price. “Exceeding Realtor Expectations” and “Powerful Presentations” are the perfect combination that will help your business thrive this summer and beyond. Through July, both classes (valued at $498) are being offered together for the low price of $299. Don’t delay! This offer ends on August 1. Register today for our August classes and watch your production grow all season long. For more information about The XINNIX System of performance training, accountability, and coaching, visit our website or click to schedule a call with one of our Account Executives.”

The key to success is to start looking into opportunities to expand your business. As a leading investor in the industry, TMS offers a suite of rehabilitation loan products to maximize your loan offerings. It is currently running a pricing special on FNMA Homestyle, FHA 203k and USDA Combo CTP Pilot loans. Reach out to your TMS CAREspondent VP or sign up to partner with TMS today to learn more.

Simplify your underwriting process with Loan Product Advisorasset 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.

Capital markets

Here at the Western Secondary in San Francisco some of the folks were talking about how Ginnie Mae securities (primarily GNIIs, composed of government loans) traded poorly in the selloff amid heightened concerns about more supply following last week’s passage in the House of two bills impacting FHA and VA loans. Investors in mortgages, and mortgage-backed securities, are keenly interested in watching prepayment speeds. Who in their right mind would want to pay 105 (a premium of five points, like paying $105,000 to own the cash flow from a $100,000 mortgage) if it is going to pay off in six months and return $100,000? The exposure of Ginnie, Freddie, and Fannie pools of mortgages are driven by rates and broker exposure. Experts think prepayments, aka “speeds,” will increase this month due to lower rates. But there are other things lenders should know about what is pushing rates and prices around these days.

Ginnie Mae announced that issuance of its mortgage-backed securities (MBS) totaled $44.217 billion in June, the highest since December 2016. A breakdown of June issuance includes $42.785 billion of Ginnie Mae II MBS and $1.432 billion of Ginnie Mae I MBS, which includes $1.014 billion of loans for multifamily housing. Ginnie Mae’s total outstanding principal balance of $2.076 trillion is an increase from $1.971 trillion in June 2018. For more information on monthly MBS issuance, UPB balance, REMIC monthly issuance and global market analysis, visit Ginnie Mae Disclosure.

Credit is the lifeblood of the economy, and it continues to flow, as corporate bond issuance has picked up, and growth in bank credit remains solid. Financial markets encountered a significant amount of volatility at the end of 2018. Not only were there signs of slower global growth, but markets witnessed the Fed tightening monetary policy further, escalating trade tensions with China, a U.S. stock market swoon, and yield spreads on corporate bonds, especially on high-yield corporate bonds, widening noticeably. Tighter financial conditions, if maintained, can lead to slower economic growth, if not to outright economic contraction. Furthermore, new issuance in the corporate bond market slowed to a trickle at the end of last year as there was only $12 billion of new investment grade bonds brought to market in December. There was no new issuance in the high yield market that month, which normally slows toward the end of the year, but December’s outturn was the lowest monthly total in at least 18 years. Corporate bonds are vitally important to the financing of the non-financial corporate sector as they account for two-thirds of its outstanding debt. Activity in the corporate sector could come to a screeching halt if the corporate bond markets remain essentially closed for an extended period of time.

But financial conditions have eased markedly thus far in 2019. Not only has the stock market rebounded, but corporate bond spreads have receded in recent weeks. In addition, new issuance in the corporate bond market has picked up noticeably in the new year. In January, there was $117 billion of investment grade bonds and $17 billion of high yield bonds that were brought to market. The $134 billion of total corporate bond issuance in January was above the average monthly run rate of 2018. Bond issuance may be important for large and some medium-sized businesses, but smaller enterprises rely on bank financing. In that regard, growth in bank credit has strengthened in recent months. Total bank credit was up 5.0% YoY in the week ending January 23, more than a full percentage point higher than just a few months previously. Commercial and industrial loans were up 11.0% relative to the same period in 2018. If there is a weakness in bank credit, it is in real estate loans, which are up only 2.9% on a year-ago basis. In summary, financial markets have bounced back this year, with volatility subsiding and credit continuing to flow to the non-financial sector. Solid growth in credit at present reinforces the conviction that U.S. economic growth will remain resilient in 2019, albeit a bit slower than last year.

Last week we saw that June’s strong payrolls did nothing to change the outlook of the Federal Reserve regarding its economic outlook and the expectations for a rate cut at the end of July. Global economic trade winds as well as deteriorating fundamentals should be enough to compel the members of the FOMC to cut rates as an insurance measure to aid continued economic expansion. At his recent semiannual testimony before Congress, Fed Chair Powell was candid in his assessment that he does not consider labor market as being hot and that it has room to continue to attract people back into the workforce as well as the potential to boost wages. Although as we’ve seen, wage grown has been anemic throughout the expansion. On the other side of the Fed’s dual mandate, inflation continues to remain below the Fed’s target despite recent price index data showing small upticks. Part of the reasoning behind a rate cut is also to bring inflation up to the Fed’s desired levels.

Turning to yesterday’s bond market, which drive mortgage prices, U.S. Treasuries began the week quietly, closing -1 bp to -2 bps across the curve, including the 10-year -1 bp to 2.09 percent on no notable domestic news, though China’s growth figures for Q2 showed the slowest growth rate in nearly three decades. That slowing was expected, and speaking of expectations, Fitch Ratings expects the FOMC to cut the fed funds rate just one time this year. And from Europe, Germany’s Economy Ministry showed that growth weakened in Q2 while manufacturing remained sluggish in its latest monthly report.

Today is much more interesting as far as markets are concerned, with several first-tier releases. We’ve already had earnings reports from JP Morgan, Wells Fargo, and Goldman Sachs, as well as June retail sales (+.7%) and import / export prices (-.9%, -.7% respectively). Ahead are Redbook same-store sales for the week ending July 13, June industrial production and capacity utilization, May Business inventories, the NAHB Housing Market Index, and May TIC data. There are also several Fed speakers during the session to provide further rate cut clarity, including Governor Bowman, Atlanta’s Bostic, Dallas’ Kaplan, Chicago’s Evans, and Chair Powell. The Fed will also publish the minutes from the recent discount rate meetings. But we begin the day with Agency MBS prices worse .125 and the 10-year yielding 2.11%.

Overheard here in San Francisco at the Western Secondary. “I bought shoes from a drug dealer once. I don’t know what he laced them with but I was tripping all day.”

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

Rob

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

July 15: Non-QM, U/W, broker, marketing, tech products; wholesale news; webinars this week

You don’t think your spouse listens to you? What about Google? You bet: “Google Very Angry After Contractor Leaks Over a Thousand Assistant Recordings.” Interesting that many of the “best and brightest” of people in their 20s and 30s want to work for an advertising company. (Yes, 80-90% of Google/Alphabet’s revenue comes from advertising.) Google handles a lot of data that scammers would love to have. The United States Census Bureau has posted information to help consumers who are part of a survey to avoid fraudulent activity and scams. You may be the victim of a scam if someone claiming to be from the Census Bureau asks you for certain information. The Census Bureau never asks for your full Social Security number, money or donations, anything on behalf of a political party, your full bank or credit card account numbers and your mother’s maiden name.

Products, services, and business opportunities

For those who missed it last week: Eileen O’Grady, Founder and CEO of EMO, LLC, and a mortgage and mortgage fintech industry veteran, is representing a client in the sale of exclusive rights to a digital volume of business requirements for Regulatory and Investor (Fred & Fan) Compliance, Loan Origination (for Fan, Fred, FHA, VA, and USDA Rural Housing loan programs), Loan Servicing and Quality Control/Auditing. It is a rich, current, annotated compendium of content, rules, processes and audit procedures that would save years in requirements gathering and convert to millions of dollars in savings on development project budgets. If interested please reach out to Eileen to request a Solicitation of Interest Document.

Unit Busters is a new sales and marketing focused complimentary webinar series from National Mortgage Professional Magazine. Here’s a new webinar: “What The Top 5 Banks Don’t Want You To Know About Selling Conventional Loans.” Think selling conventional loans are too much work for too little money? The big lenders count on that mindset and make billions in the 80% of the loan market you’re not fishing in. If the bulk of your business is in the govy pond, you can’t afford to miss this webinar by Monster Lead Group. We reveal the statistics and strategy of how to create explosive loan revenue in any market, regardless of rates, how to make this strategy work for your business even if you’re a small lender or don’t have a large marketing budget, the top 3 reasons small companies don’t fish in the same ocean as the big lenders, why just focusing on VA and FHA is the biggest mistake many brokers and lenders make, and how to build a predictable, successful conventional line of business without going broke. It’s tomorrow, Tuesday, July 16th at 2PM ET. Register here – it’s free!

ResX Warehouse Lending is a division of United Bank, a respected commercial lender with an over 150-year track record of delivering for its clients. ResX isn’t new to the warehouse business. In fact, ResX has been making warehouse loans longer than many of the “established” lenders out there. There is not time wasted on inflated promises or the latest fix-and-flip pitch. Instead, they’re real people and experts in the business. ResX Warehouse delivers extensive management experience, more effective and efficient processes, and the drive to be a complete banking resource for clients. In combination with United Bank’s full-service array of products and services, ResX is the ideal platform for the mortgage banker serious about meaningful growth. That means no wasted time, no pipeline clogs and no worrying about whether or not it is in it for the long haul. If that sounds interesting to you, give ResX a look!

Flagstar Bank and Detroit Fintech Bay has announced the launch of the Flagstar Mortgage Tech Accelerator Program, which focuses on early stage startups active in developing innovative technology solutions for the mortgage industry. “We’re excited to partner with the Fintech Consortium to launch the first startup accelerator in the U.S. exclusively focused on the mortgage industry,” said Rocky Stubbs, head of Digital Lending at Flagstar. “We have the depth and breadth of capabilities to support fintech startups operating at every point in the mortgage value chain, and we offer the best of both worlds—the advantages of a federally chartered bank combined with the agility of a typical nonbank.” Interested entrepreneurs and startup founders may apply for the program June 27–July 27 or email Rocky.

ARMCO Q4/CY 2018 Mortgage QC Industry Trends Report: Defects Related to Loan Package Documentation Doubled from 2017 to 2018. “Critical defects in 2018 reflect the market’s rising interest rates and continued escalation of property values,” said Nick Volpe, chief strategy officer for ARMCO. “Fewer highly qualified borrowers transact mortgages when rates increase, which fills the market with more marginal borrowers who tend to require more documentation. It makes sense that defects related to loan package documentation more than doubled from 2017 to 2018.” Report Summary: In Q4 2018, the critical defect rate increased just over 2%; In CY 2018, the critical defect rate increased almost 8% over the previous year; Defects related to Income and Employment are on the rise; In Q4 2018, defects attributed to categories related to Underwriting / Eligibility continued to dominate overall quality issues. Read the full report.

Would you like to do a better job leveraging social media platforms like LinkedIn, Facebook, Twitter and Instagram to build awareness of your company, what you offer and drive qualified leads? Social media is effective for any of these goals and an important component of your overall marketing and public relations strategy. Seroka Brand Development will develop your strategy and content to ensure your social presence plays the role it should in driving real business results. These platforms are constantly changing and adding functionality. Seroka will help you stay on top of them and prioritize the platforms most important to your business. Want to learn more? Reach out to Seroka and get ready to #TurnUpYourBrand! Also, register for the MBA webinar Wholesale Lending: The Client Relationship Post Closing and hear John Seroka talk about the tactics LOs should leverage to build client relationships after closing.

NonQM, a blanket term being used to cover many different product options, when it is simply a different way to look at “ability to repay” than defined by the CFPB. “We at NMSI Wholesale absolutely care about ability to repay when we lend our funds. We just have come up with products that look at it differently. For example, our Portfolio RED Program, stands for reduced income documentation. We allow self-employed borrowers significantly easier ability to qualify for a mortgage by showing us their own prepared P&L, supported by 2 months bank statements or CPA letter. We not only see cash flow but liquid asset reserves on top of 20% investment in down payment. This is not subprime credit either and follows closely with conventional prime guidance. We lend on other unique NonQM programs helping RE investors, Foreign Nationals, Asset Depletion/RSU, Interest Only, VOE Only, ‘Life’ Happens Events, all offering No Prepayment Penalties. Visit us to learn more, or contact James Hooper.”

Optimal Blue launches unrivaled support for Non-QM and Expanded Criteria loans. To help clients differentiate and be more competitive, Optimal Blue made a substantial investment to support these unique loan products. With monthly lock volume exceeding $1 billion, a threshold 2.5 times the volume experienced just 18 months earlier, Optimal Blue is observing significant market growth in this area. Designed to drive pricing accuracy and precision, Optimal Blue now supports close to 20 granular filters for income verification, payment history, debt consolidation, bankruptcy, and more. In addition, specific housing events, financial outcomes, and other user-defined selections are evaluated. Optimal Blue lenders can now take advantage of the Non-QM and Expanded Guidelines products for +60 leading investors. According to Mike Strauss, President of Sprout Mortgage, “Sprout has found Optimal Blue’s Non-QM filters to fully support its product line with complete accuracy. This is a tremendous step forward for the Non-QM marketplace.”

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 its 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.

Wholesale news

What is going on with wholesalers around the nation? Let’s take a random look.

Stearns Holdings reached an agreement with its largest bondholder, PIMCO, to ensure support for the restructuring plan. “Having PIMCO’s support going forward will help to expedite the court-supervised process further. With 1.5 billion in warehouse capacity Stearns’ 2,700 Wholesale, Retail, Joint Venture, Preferred Partner and Corporate employees continue to originate, lock, underwrite and fund loans with the same best-in-class service they have always provided. CEO David Schneider added, ‘As we move forward, we remain firmly committed to our mission of helping homebuyers find the best loans for their current and future needs.’”

UWM has lowered its Elite BPMI rates again, offering specially discounted mortgage insurance rates to 640+ FICO borrowers that aren’t available at every other lender. “In addition to saving your borrowers money, you’ll also save three to seven days on every loan by eliminating the second underwrite with Instant MI. Plus, no additional MI overlays, not even for DTI or co-borrowers. These BPMI rates can make a huge difference in your borrower’s monthly payment and they won’t show up in pricing engines, so the only way to see them is to join the UWM network and price them out today!”

Plaza Home Mortgage’s AUS Non-Conforming adjustments are changing from rate adjustments to price adjustments. These changes will be effective for loans locked on or after Monday, July 8, 2019. refer to the AUS Non-Conforming rate sheet for all changes.

Log into the FAMC website to view the top errors on loans delivered for or purchased by FAMC based on its Loan Purchase reviews, Pre-Purchase Underwriting reviews and monthly QA review findings. Errors in data entry, missing documentation required for issues not included in the AUS analysis and non‐compliance with the AUS requirements place the loan at risk for losing Reps and Warrants. This information is for the purpose of giving you knowledge so the appropriate changes may be made, as necessary, to avoid potential consequences in the future.

Webinars/events over the next week

Register now for a Supreme Lending Ransomware Industry Call Webinar on July 16th.

Looking for the Insiders Perspective on How Wholesalers Set Prices, the Role of MSR Values and Maintaining Your Customer Relationships post the loan closing? Join two complimentary webinar opportunities from the MBA presented by leading industry experts in these fields. Register for the webinar How Wholesalers Set Their “Street Price” on July 17th from 2-3:30 EST. and The Client Relationship Post Closing on July 22nd from 2-3:30 EST.

NMMLA is bringing New Mexico State Legislature to your doorstep with its July 18th Luncheon to include guest speaker Lt. Governor Howie Morales.

Join Fannie Mae for a live HomeReady webinar on July 18 at 2 p.m. ET and learn why a HomeReady mortgage may be a better solution for your low-income borrowers. This webinar is geared toward loan officers but open to all lenders and housing professionals, and will cover HomeReady features, benefits, and underwriting guidelines, as well as address the upcoming changes and allow plenty of time to answer your questions.

Capital markets

Summer doldrums for rate volatility? U.S. Treasuries responded to higher-than-expected prints for PPI and core PPI Friday and record-setting gains for the stock market, by fluctuating back and forth before closing to display little movement ending the week, including the 10-year ending the session -1 bp to 2.10 percent. Headlines involved the Treasury acknowledging the debt ceiling limit could be reached by early September, Labor Secretary Alex Acosta announcing his resignation, and President Trump tweeting his disapproval of cryptocurrencies. The Producer Price Index for June, much like the Consumer Price Index for June, provided little support for the case of a 50 bps points cut in July, let alone a 25-bps cut in July.

This week’s economic calendar includes an uneventful domestic calendar today, with only the NY Fed manufacturing for July, NY Fed President Williams speaking, and the Treasury conducting its usual T-bill business with a $36 billion auction of 3- and 6-month bills. Tomorrow, things pick back up with Retail Sales for June; Import and Export Prices for June, Industrial Production for June, Business Inventories for May, and the NAHB Housing Market Index for July. Wednesday see the usual MBA Mortgage Applications Index for week ending July 13 but also Housing Starts and Building Permits for June, and the Fed’s Beige Book, before Thursday brings jobless claims, the Philadelphia Fed Index for July, and Leading indicators for June. The week closes with the preliminary University of Michigan Consumer Sentiment. We begin today with Agency MBS prices better by a smidge and the 10-year yielding 2.10%.

Thank you to Haskell M. for…

Q: “What birds of a feather stick together?”

A: “Vel Crow!”

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

Rob

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