Dec. 6: U/W, LO jobs; CRM, U/W, budgeting tools; why LOs should care about trade & tariffs

I hope that you didn’t lay off your compliance department earlier this year, because there’s a lot going on. For example, from out of California comes the CCPA, effective in less than four weeks on 1/1/20. Susan Milazzo, the CEO of the California MBA, summed it up. “In very general terms, the key difference with the California Consumer Privacy Act (CCPA), as compared to other privacy laws, is that previously companies had to agree not to sell or transfer data if a consumer requested as well as companies have a responsibility to maintain data security for consumer information. The CCPA gives consumers the right to ask businesses, that fit certain criteria, to provide them all of the personal information that business has on them and/or ask the business to delete that information. While the regulations implementing the CCPA are not yet finalized, there are provisions for the AG to take action against businesses for non-compliance.” You’re ready and willing to delete all your client’s information from your database, right?

Employment & transitions

A Mid-Atlantic Mortgage Company is looking for an experienced Underwriting Manager. Responsibilities include overseeing the department to ensure all mortgage transactions are underwritten based on the guidelines in a timely manner and meeting commitment dates and closing dates. Collaborate with management team to create, revise and implement policies and procedures. Hire, develop and manage their team. Must have knowledge of Encompass, at least 10 years’ experience in underwriting (3 years’ experience as an underwriting manager) and knowledge of all products and guidelines. Confidential notes of interest should be sent to Chrisman LLC’s Anjelica Nixt for forwarding.

American Financial Network, Inc. (AFN; NMLS 237341) is recognized as a top U.S. mortgage lender by HousingWire Magazine, Inc. 5000, Scotsman Guide and others. AFN recently acquired its New York state license, making it a true nationwide lender. AFN has deployed a single-source Command Center that fulfills virtually all of its tech needs and simplifies processes. Advanced remote and mobile access to loan app technology and real-time views of pipelines puts vital data in the hands of AFN’s Mortgage Loan Originators (MLOs). Add highly skilled ops support to cutting-edge technology and AFN offers a proven formula for success. With an ambition of app-to-funding within 10 days, some AFN teams have achieved a record 7 days. AFN is expanding its reach, adding quality branches to a growing, successful company. Seasoned retail professionals, John D’Onofrio, Matt Larson, and Matthew Schultz, are recruiting ambitious Branch Managers and MLOs. Visit joinAFN.com to learn more.

Fannie Mae & Freddie Mac announced the appointment of Anthony Renzi as the new CEO of Common Securitization Solutions, LLC (CSS). Recall that David Applegate announced earlier this year that he would be stepping down as CSS CEO by year-end.

Lender services and products

How do you create plans for your business? Chances are you use a combination of reports, forecasting, media information and intuition. Now you face two challenges: communicating your plan to the entire company and keeping your plan updated throughout the year. New tools from Richey May Technology Solutions, RM Plan for Budgeting & Forecasting and RM Analyze for Business Intelligence, help you plan and communicate with ease and accuracy. Learn more and contact us for a demo.

Volly CEO, Jerry Halbrook, was awarded the HousingWire Vanguard Award. This prestigious award recognizes a small handful of the leading executives in the housing industry. “I am deeply honored to be recognized alongside some of the industry’s most well-respected leaders,” said Halbrook. “It’s truly an exciting time for mortgage technology and marketing innovations, with so many new ideas and technologies. I am extremely proud of the role the entire team at Volly has taken in promoting industry-wide innovation and change.” Volly is the mortgage and banking industries most innovative component-based platform that seamlessly integrates marketing and customer engagement strategies with robust lending technologies. Expansive technology and integrations dynamically support Marketing Automation, CRM, Point of Sale, portfolio retention, and digital & direct marketing with best-in-industry creative marketing services. Click MyVolly.com to learn more about Volly or to schedule a demo today.

How are you preparing for 2020? What tools do you have that can help set you apart from your peers? While agency guidelines and investor overlays are constantly changing, your responsiveness can remain rock solid.  With TheRuleTool™ you have instant access to guidelines and overlays offered in clear, transparent language. It’s as simple as picking your agency, entering your keyword into the search bar, then scrolling through the results. You can even quickly ask a guideline or scenario question of TheRuleTool™ Credit Policy Team. Visit theruletool.com to start your free 30-day trial of TheRuleTool™Being amazing isn’t complicated – it just takes the right tool.

Lender Toolkit and Velma.com are excited to announce a partnership focused on the new Ellie Mae Encompass solution, Connector by Velma. Lender Toolkit, leading Encompass Experts and Tool providers, are now deploying new Connector implementations. “We are very excited about how the Connector can help us improve margins for our Encompass clients by automating processes, ensuring compliance, and improving pull through across the digital mortgage journey” says Brett Brumley, Lender Toolkit Managing Partner. “With Velma’s pre-built strategies and workflows, we can have our clients up and running in days as well as implement custom configurations to best meet their needs. There’s plenty of value right out of the box, but I particularly like the ECOA/Reg B solution.”

For loan originators looking to get more done in less time outside the office, Momentifi CEO, Gibran Nicholas, is hosting a free webinar on Wednesday, December 11 at 2pm ET: How to Use Mobile CRM Technology to Save Time & Close More Loans in 2020. Topics include: how to calculate the Lifetime Value of your clients based on the latest mortgage industry stats; how to use mobile videos to close more loans from your database of clients and referral partners; how to use mobile technology to stay organized on-the-go, collaborate with your team and build more relationships outside the office. Gibran will also be sharing some new insights from recent homebuyer surveys that you can use to stand out from your competition and convert more leads in 2020. CLICK HERE to register for the free webinar.

Capital markets

Why should lenders or originators keep an eye and ear on trade news, or whatever happens overseas? Because in recent years the world’s economic focus has shifted away from being based mostly on what happens in the United States and toward what happens elsewhere. Tariffs and Brexit have dominated the news for much of 2019. Speaking of which, the latest poll from the U.K. suggested that Conservatives remain on track to receive the most votes on December 12, but their lead has continued shrinking. And this week we learned that Eurozone’s November Manufacturing PMI rose to 46.9 from 46.6 (expected 46.6). So?

The outcome of the UK’s general election on December 12 will have a major influence over how things play out with Brexit, and both the economies of the Eurozone and the rest of the world. UK Prime Minister Johnson managed to secure a deal with the EU in October and was set to deliver an exit for the UK at the end of October but did not have a parliamentary majority, preventing him from pushing through a deal with the short time frame he was faced with. This led to a call for a snap election in which Johnson hopes to get a majority that will push through his Brexit deal.

The outcome of the snap election will certainly be felt across Europe, whether the UK leaves the EU or has to request another delay. This comes as recessionary warning signs across the Eurozone flash red, mainly from a buildup in debt, which now stands at an all-time high of over €45 trillion. A recession, should one occur, could set off a vicious circle of widening fiscal deficits, falling bond prices, weaker bank balance sheets, further retrenchment in GDP, etc.

How does this affect people financing homes in the U.S.? Banks in some countries hold large amounts of sovereign debt. The debt of the Italian government exceeds 130 percent of GDP, and this ratio has not receded at all in recent years. Belgium, France and Spain are also large economies in which the government debt-to-GDP ratio is in the vicinity of 100 percent. A significant sell-off in the sovereign debt market of one of these aforementioned large economies could be problematic.

A decline in the prices of government bonds (e.g., a rise in yields on government bonds) would have two adverse effects. First, the associated rise in government borrowing costs would lead to higher fiscal deficits, everything else equal, which could lead to further selling of government bonds by investors. Second, a decline in bond prices would weaken banks that hold meaningful amounts of government debt by depressing the value of the bank’s assets.

Significant weakness in the banking system probably would lead to slower economic growth, which would lead to even wider fiscal deficits. The year-over-year rate of real GDP growth in the Eurozone has dropped to only 1.2 percent in Q2-2019 from 3.0 percent at the end of 2017. It would not take much of a financial or economic shock to cause the Eurozone to slip into recession in coming quarters.

Fortunately, as measured by the debt-to-GDP ratio, the Eurozone has de-levered modestly over the past few years. The household debt-to-GDP ratio has edged down recently, and the ability of the household sector to service its debt has improved due to the decline in its debt-service ratio. So keep your eyes on that December 12 election and other developments around the Eurozone as it could have far-reaching recessionary impacts.

Will the most recent tariffs actually affect the American consumer? The higher prices that importers will pay means either higher prices for consumers or squeezed margins for businesses. Earlier tariffs, by design, impacted categories further up the production pipeline, like steel and aluminum. The latest round impacts finished goods like toys, clothing and consumer electronics, with the more direct consumer exposure giving this round of tariffs the ability to really harm consumer confidence. Either importers could push back on costs from suppliers (suppliers may have little room to budge on their margins and/or contract prices have they been set), or tariff costs could be passed on to consumers. In previous rounds aimed more at intermediate goods, tariffs on inputs were only a part of a finished goods’ final costs.

What speculation is new on the trade front? It’s moving markets as much as actual news these days, and Treasuries pulled back again on Thursday as investors speculated the Trump administration won’t move forward with a tariff hike on Chinese goods scheduled for December 15. The spike in trade tensions earlier in the week is now viewed by many investors as negotiating bluster, with President Trump yesterday saying China trade negotiations are “moving along well.” Though gains were slowed by a news report that the U.S. and China remained at odds over the value of farm purchases. Treasury yields climbed after data showed jobless claims fell to a seven-month low, signaling resilience in the labor market ahead of today’s jobs report. One thing is certain: expect trade to dominate the narrative for the next week and a half as we approach that December 15 deadline.

Yesterday we learned that the U.S. Treasury will sell $38 billion in 3-yr notes on Monday, followed by a $24 billion 10-yr note reopening on Tuesday, and a $16 billion 30-yr bond reopening on Wednesday. The trade deficit for October narrowed, and a decline in both exports and imports for the second straight month is not a hallmark of a global economy running strong. Initial jobless claims reminded us that the labor market remains tight, and Factory Orders increased 0.3% in October, as expected. The 10-year yield quickly rose 5bp, touching a high of 1.822% midmorning before spending the rest of the session grinding lower before trading sideways into the close.

Although the Fed appears to be on hold until April, traders always look forward to unemployment data, and both the labor market and consumers should be enough to continue to sustain the expansion. A high number would corroborate Federal Reserve Chairman Powell’s view that rates can stay on hold following three cuts. But it could also reduce the urgency for a deal with China, given that escalating levies have so far failed to significantly dent employment.

Turns out that Nonfarm Payrolls for November were +266 (expected +180-200k, with a revision higher in October), the Unemployment Rate was 3.5% (expected 3.6%), and Hourly Earnings were +.2% (expected +.3-.6%). Later this morning brings the consumer sentiment index and wholesale inventories. We begin the day with Agency MBS prices worse a solid .125 and the 10-year yielding 1.86 percent after closing yesterday at 1.80 percent after the solid jobs report.

Yes, the frequency of conferences is dying down in mortgage banking, and so is travel. But here’s a good gag for next time you’re on an airplane and the fella next to you falls asleep.

Ask the flight attendant to borrow their demonstration mask, put it on, and shake him awake with an alarmed look on your face.

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, “Politics do Indeed Impact Interest Rates and Borrowers” If you have the 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.)

Dec. 5: Ops, LO jobs; workflow, webinar, just-missed products; random vendor news; rates steady

In the lending world, folks are talking about the change in FHA loan levels. Economists and investors have their eye on debt. Have a balance on your credit card? Or a mortgage, or car loan? You’re not alone. Federal, corporate and household debt worldwide stands at an unprecedented $250 trillion, nearly three times the volume of economic output. (To keep things in perspective, if you paid $1 million a year to reduce that, it would take 250 million years, not including accrued interest.) Does anyone care? Some economists say borrowing should increase and debt is not a problem as long as it remains sustainable, while others say the effectiveness of monetary policy will be curtailed if a crisis occurs. Fortunately in MBS land, US mortgage delinquencies have fallen to near 25-year lows. Hopefully home buyers don’t want to go through “that” again. More below on borrowers making payments.

Jobs

American National Bank of Texas, a $3 billion community bank in the Dallas-Fort Worth market, is expanding its mortgage department and is looking for a seasoned, dynamic Vice President of Mortgage Operations Manager. “This position will lead our mortgage operations team of processors, closers and underwriters, ensure regulatory compliance and partner with our production team to grow and expand the mortgage business. All interested, qualified candidates can review the job posting here and complete an online application. You can also email resumes to Rusty Beard. ANBTX is an equal opportunity employer.

“Congratulations to Tim Elkins, Chief Production Officer for PrimeLending, on receiving a prestigious Vanguard Award from HousingWire. The Vanguard is reserved for true industry trailblazers who are raising the bar with their outstanding accomplishments. This certainly defines Tim, who’s been leading the charge on modernizing PrimeLending’s digital mortgage experience since joining the company more than 10 years ago. With a forward-thinking mindset, Tim knows how to identify opportunities and deliver solutions that make enterprise-wide impacts. Backed by best-in-class Sales, Marketing and Technology departments, Tim and the PrimeLending team are collaborating to evolve the retail sales model by introducing better tools and more innovative solutions. An inspiring champion for the company’s award-winning culture, Tim epitomizes the high standards of the Vanguard Award. Interested in working for a company that’s focused on the future? The first step is a confidential conversation with one of our expert recruiters. Call 855-921-0112 to get started.”

Lender products, services, and webinars

This holiday season, TMS is putting the CARE in CAREspondent Lending. For every new lender that partners with TMS before the end of the year, TMS will donate $250 to Family Reach— a national non-profit dedicated to alleviating the financial burden of cancer. You can sign up here today!

“As the holidays approach, many lenders are putting the finishing touches on their planning for another high-volume year in 2020. We at LodeStar Software Solutions are hearing from our friends across the industry that this will not be the year for big ticket tech investment. Instead, lenders (and their partners) will be making sure all of their production and origination solutions work seamlessly together. That’s always been LodeStar’s focus in delivering an affordable TRID-compliant loan estimator, tax quote and reporting solutions. We’re also integrated with the most-widely used loan origination and settlement platforms. Simplify your process, cut your time and cost expenditures and do it compliantly in 2020. Start now by having a look at what we can do for you here.”

Carrington Mortgage Services, LLC (CMS), one of the nation’s largest privately held non-bank lenders, announces the launch of Carrington Prime Advantage. The Prime Advantage loan is another game-changing addition to CMS’s full slate of non-agency products offered through the CMS loan origination channels, which include Wholesale and Correspondent lending, designed for higher-credit-quality non-agency borrowers who may have “just missed” qualifying for conventional or jumbo loans. The Prime Advantage product allows for the use of Alternative Income Documentation while delivering competitive pricing and is a perfect fit for borrowers who find themselves in between qualifying for the Carrington Flexible Advantage PlusSM program and conventional or jumbo products. “Our primary objective has always been to lead non-agency lending back into the marketplace,” said Greg Austin, EVP of CMS. “We know how important it is to ensure our product offerings are sharp and industry leading, and Prime Advantage is an example of that commitment.” CMS’s diverse product offerings meet the needs of today’s non-delegated originators, and include conventional Fannie Mae and Freddie Mac products, FHA and VA products and Carrington’s proprietary Flexible Advantage products. For more information on CMS products and services, please visit CarringtonAlly.com.

I’ve indicated in several posts Conquering Shifts is a must readMake it a part of your 2020 business plan. The authors Cindy Douglas and Kathleen Heck have interviewed 12 of the mortgage industries most prolific originators. The book chronicles how each of these individuals got started, how they built successful practices and reminds us that none of us are born with a massive pipeline. Anyone who is committed to building and nurturing relationships, brings value to the table, and delivers on their promises has the ability to realize success. “Conquering Shifts is truly unique in that instead of simply teaching success principles or techniques, the reader sees exactly how they were implemented.” Marty Preston, Benchmark Mortgage. For loan officers and senior management looking to boost production take advantage of the discount offered by the authors, before it ends December 12, 2019.

Floify is determined to help the mortgage industry become more profitable in the New Year. The company has big plans to introduce powerful new features and integrations designed specifically to improve lending workflows as well as the overall mortgage borrowing experience. Whether it’s building a connected tech stack through integrations with CRMs, credit providers, cloud storage, and various other productivity solutions, or crafting an elegant loan application process with their brand-new, highly-anticipated 1003, Floify provides everything a mortgage lender needs to create the streamlined workflow and digital experience they need to drive higher margins and growth. Make 2020 the year you move to a digitally-powered loan workflow and start maximizing your profitability – request a live demo of Floify to learn how.

Company webinars

Join National Mortgage Professional Magazine for a very special webinar, 2020 Business Planning with Barry Habib and Shashank Shekhar, Friday, December 6, 12:30 PM ET/ 9:30 AM PT. With the new year rapidly approaching, what better way to prepare than to have industry giants Barry Habib, MBS Highway President and CEO, and Shashank Shekhar, Arcus Lending CEO and Top 20 Loan Originator, give you the tools you need to plan 2020 with predictable results. Some of the many topics Barry and Shashank will be tackling include: taking stock of the mortgage market in 2019, biggest trends to watch out for in 2020, interest rate predictions for 2020, biggest opportunities to grab in 2020, learn the exact planning process that Shashank follows every year, and enjoy a free worksheet to follow along with the business planning. Click here to register.

NEXA Mortgage is a mortgage broker with 343 Loan Officers and that is up from 313 just a month ago. NEXA was recently featured in HousingWire and GrowJo.com as the fastest growing mortgage broker in the country. Want to know why NEXA is growing so fast? Join its weekly webinar today, “Why NEXA with Mike Kortas“. The CEO dives into a deep conversation of what drives this growing channel. This webinar is today at 10am PST/1pm EST at www.NEXAmortgage.com/support. Just click on the link and join. Let them know you heard about it on Chrisman.

JMAC Lending will be hosting a webinar on our Laguna Jumbo program to ‘Compete with Banks!’ on December 11 at 10AM PST. Learn the tips and tricks of our Laguna product so your borrower can get bank rate quality Jumbo pricing. This webinar will provide in-depth review of guideline requirements and which borrower is best suited for it. Al Gruzdis, our Southwest Regional Sales Manager, with over 28 years of experience will be hosting this event. Click here to register.”

Mortgagors are making their payments

Attribute it to a healthy US jobs market helped by the longest economic expansion on record, or improved underwriting guidelines, or an appreciating property market, late payments on mortgages are at their lowest levels in nearly 25 years, the Mortgage Bankers Association said recently. The delinquency rate for home loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 3.97% of all loans outstanding at the end of the third quarter of 2019, the lowest since early 1995. The stats are program specific. The delinquency rate on mortgages guaranteed by the Federal Housing Administration (FHA) decreased 100bp to 8.22%, and the delinquency rate on home loans backed by the Veterans Administration declined by 31bp to 3.93%.

Why should originators care? A couple reasons jump to mind. The secondary market drives rates in the primary market (e.g., rate sheets), and when investors in MBS are more confident about assets, they tend to pay a higher price, driving down the rate. In addition, any borrower making their payments is a refi candidate: No messy 30- or 60-day delinquencies to explain to underwriters.

Vendor updates

Insellerate’s new engagement platform that launched in the second quarter has helped the company grow by over 100% this year and has furthered its commitment to helping its lenders close more loans. Insellerate now serves both retail and consumer direct loan officers by helping lenders engage better with their borrowers and build customers for life. Insellerate will also be offering its engagement platform to wholesale lenders who are wanting to build better relationships with their brokers and provide them more value.

First American Title Insurance Company, the largest subsidiary of First American Financial Corporation (FAF), announced that in less than a year more than $1 billion of real estate transactions have successfully funded and closed using FlexClose™, a warehouse financing and closing service from FirstFunding®, a wholly owned subsidiary of First American Financial Corporation. FlexClose gives lenders and real estate agents the ability to control the exact time funds arrive for a residential real estate transaction closing, even after the daily Fedwire cutoff.

Responding to new laws enacted in New York and California that require lenders to more aggressively manage cyber risk, and recognizing that other states are expected to follow with similar rules, Secure Insight has begun supplementing its vetting process, and subsequent risk profile reports, to display cyber liability coverage carried by settlement agents. The company has always verified internal controls, but has now updated its control verification process to inquire about the nature and extent of internal cyber risk education and technology protections employed in the offices of settlement professionals. This data is now available as a part of the SI Risk Report for the company’s lender clients. SI now manages profiles for more than 75,000 settlement professionals in all 50 states in a shared database available 24/7.

CoreLogic® announced the integration of its Instant Merge™ consumer credit report within the Blend digital lending platform allowing Blend customers to automatically access credit report data during pre-qualification and mortgage origination, helping to expedite the decision-making process. “Integrating Instant Merge credit reports into Blend’s technology provides another opportunity to remove friction from the lending process,” said Brian Martin, head of business development at Blend. Blend serves as the digital layer on top of back-end lender systems so they can be more efficient and reduce the time and cost associated with loan origination.

The Mortgage List and the Mortgage Action Alliance (MAA) continue to collaborate to help increase awareness and support for MAA’s initiatives and fundamental industry issues. The Mortgage List is working with MAA to create banners and categories to be displayed on all Mortgage List Vendor listings, identifying vendors as MAA supporters. The Mortgage List Vendor listings will identify MAA supporters on their individual profiles and will be easily searchable via categories.

Capital markets

It has been a volatile week for Treasuries, which reversed Tuesday’s rally to pull back yesterday, exhibiting similar movement to Monday on the back of renewed trade optimism. After rattling markets by saying a trade deal with China might not be finalized until after the 2020 election on Tuesday, President Trump announced yesterday that the U.S. and China may be moving closer to an agreement on the amount of tariffs that would be rolled back as part of any partial trade deal. Again (for now), negotiations seem to be moving toward a deal despite the escalation in rhetoric in recent days and tensions over Congressional support for democracy protesters in Hong Kong. As has been the case lately, the report was light on details, and it was attributed to “people familiar with the talks,” but markets responded positively nonetheless. Less important to market movement were underwhelming ADP and ISM non-manufacturing PMI readings.

 

Today’s economic calendar is already underway with November job cuts from Challenger (45k), Initial Jobless Claims for the week ending 11/30 (203k, a 7-month low), and the October trade deficit ($47.2 billion, China imports way down). The only other release scheduled for today, October Factory Orders, will be out later this morning. Markets will receive some Fed speak from Fed Governor Quarles. And the Treasury will announce the details of the mini-Refunding consisting of 3-year notes and reopened 10-year and 30-year notes. We begin the day with the 10-year yielding 1.80 percent after closing yesterday +7 bps to 1.78 percent and Agency MBS prices worse .125 on the strong jobless claims number.

My kids asked for a cat for Christmas. My wife normally serves turkey, but if it’ll make ‘em happy…

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, “Politics do Indeed Impact Interest Rates and Borrowers” If you have the 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.)

Dec. 4: Secondary, LO, AE jobs; broker, anti-fraud, marketing tools; compliance news: what is EGRRCPA?

Politics seems to be in the news as never before. And we still have eleven months until the presidential election! I already have LOs writing to ask about how different outcomes may impact their business. STRATMOR has a piece titled, “Politics do Indeed Impact Interest Rates and Borrowers”. Everything is debatable, right? I imagine that even the taste of today’s pot-related joke, at the bottom, is debatable. How about whether or not cannabis-related income can be used to qualify for a home loan? The FDIC announced regulatory changes, not dealing with income, but clarifying the legal status of hemp growth and production and the relevant requirements under the Bank Secrecy Act. More on this and compliance notes below!

Jobs

A large mortgage lender is looking to fill Secondary Marketing and Lock Desk positions in the Chicago area to support the company’s growth. Management and analyst level positions are available, and are located in the Chicago suburbs. The lender has a strong focus on purchase business and is dedicated to providing the highest level of customer service and support. For more information or to submit resumes, please contact Chrisman LLC’s Anjelica Nixt.

“In today’s rapidly changing workplace, it’s important to be a continual learner, build critical skills and seek experiences that will add value to your professional career. At Citizen’s Bank, we invest in our colleagues learning and career development. We host Development Weeks: Two-weeks of dedicated sessions that provide focused opportunities for colleagues to build critical skills for today and tomorrow at all levels of the organization. If that sounds like a company you want to build your future with, apply to Citizens Bank today. For questions, please email Home Mortgage Recruiting.”

Is it time for something new? Make 2020 the year where you make a bigger impact and are rewarded for it! String Real Estate Information Services is hiring Senior Account Executives! String, a wholly owned subsidiary of SitusAMC, is the industry-leading title services provider. Building on 6 years of significant growth, String seeks to expand its client-facing team. Are you experienced working with title agents? Are you passionate about helping your clients reduce costs, operate more efficiently, eliminate operating risks and take advantage of volume spikes? As a String Account Executive, you will leverage String’s dedicated title process experts (3,000+) to provide tech-enabled search, production and curative title services. CLICK HERE for the full job description or send your resume to String Managing Director, Prashant Kothari.

Lender services and products

In order to meet modern consumer expectation, speed is key. Stearns Wholesale recognizes the importance of a fast, customized experience to serve more borrowers effectively and keep your referral partners euphoric. In a recent release, the new Accelerator program was introduced. Streamlining the process and improving the price on popular scenarios with the same best-in-class fulfillment was the driving force behind this development. There is no minimum loan amount, no minimum credit score, just requiring the borrower is a W2 wage earner that owns no other REOs and has no recent major derogatory marks. Better value, faster, sustainable. Click HERE to learn more about this program or connect with a Stearns Account Executive.

Join National Mortgage Professional Magazine for a DealDesk webinar on Bank Statement Programs, being held on Thursday, December 5 at 2 pm ET / 11 am PT. This webinar will be focused on Angel Oak’s most utilized Bank Statement program, which is ideal for self-employed borrowers. Self-employed borrowers have a challenge when it comes to qualifying for a mortgage due to tax write-offs. This program’s focus is on business owners whose personal tax returns may not be reflective of their ability to repay a mortgage obligation. Bank statement loans allow for these borrowers to close. Tax returns are not required and borrowers no longer have to own 100% of a business. We invite you to register for the webinar and submit your DealDesk scenarios right here.

2019 continues to be a breakthrough year for QLMS.  In just 11 short months, the powerful QLMS partner base doubled from slightly more than 3,000 partners at the beginning of the year to 6,200 approved partners today – a whopping 5,800 of which are independent mortgage brokers.  The explosive growth will continue in 2020 as QLMS will expand the partner base to 10,000 and beyond.  This incredible growth only happens if brokers see them provide continuous and intense value.  After all, a broker’s superpower is choice.  QLMS’ goal is to be the obvious choice each day and they take that mission seriously.  If you’d like QLMS to earn your business, click here and grow stronger together.

FundingShield reminds lenders that the holiday season brings increased wire / closing / title fraud as per the trends found in its data on the $560 Billion+ in closings it has protected via the industry’s most trusted MISMO Certified data-set of live & verified accounts. “Lenders should take proactive and preemptive steps to safeguard against these operational risks that are heightened due to holiday scheduling, employee vacations and rushed closings to meet year end deadlines,” shared Ike Suri, Chairman & CEO. For a few dollars a loan Fundingshield will protect closing proceeds to confirm funds are going to the intended recipient, verify good standing of closing agents, check licensing & backgrounds and confirm the title insurer’s acceptance of risk on each closing.  Services are accessible via easy to integrate APIs as well as by Encompass by Ellie Mae. Consumer down payment wire fraud protection is also available for lenders via B2B and B2B2C preferred partner integrations. Contact Sales@Fundingshield.com.

Over the next decade, Zillow is predicting nearly a million homes will be released into the market annually by people aged 60 or older. This “Silver Tsunami” won’t hit us all at the same time or with the same force, but you can be sure that lenders like Bank of England Mortgage, Alterra Home Loans, Prime Lending, Eustis Mortgage, RWM Home Loans, and Premier Lending, Inc. will be riding those waves right to the closing table. What’s their secret? They’ve realized what over 70 other lenders have already discovered: in a world where timing is everything, Sales Boomerang’s Automated Borrower Retention System puts you in the right place at the best time. Schedule a demo today and catch the wave.

‘Tis the season for consumption and ultimately credit card debt. As the purchase and rate/term refinance applications slow down this time of the year, it is an excellent time to remind your clients that a cash-out refinance can help them start 2020 with better habits and cashflow. Americans don’t just need the cash; they also need your counseling on what to do to improve their FICO scores and stop the habits that could lead to racking up debt. Your expertise and work can be life changing. As you discover clients that need higher LTV’s than your conforming lenders can offer, remember that Deephaven Mortgage has cash out options up to 85% and debt consolidation to 95% LTV. Use our scenario calculator, AUS, and AE’s to determine if a Non-QM loan gets them to their goals! Get in touch today by contacting us at brokerinfo@deephavenmortgage.com (Wholesale) or sales@deephavenmortgage.com (Correspondent).

Comply, or else!

Greetings from Southern California and the California MBA’s Legal Issues and Regulatory Compliance Conference. It is well attended, given that many of the legal trends seen here impact courts and lenders around the nation. How about Lusnak v. Bank of America, No. 14-56755, dealing with the requirement of financial institutions to pay borrowers at least 2 percent annual interest on funds held in the borrowers’ escrow accounts? (Yes, it is similar to escrow cases filed in New York.)

How about the definition of an automatic telephone dialing system (ACA International v. FCC)? Can you be sued for dialing a wrong number or is there a safe harbor? In a data breach, can you be sued by someone involved in the breach who doesn’t suffer any damages? (Remember that starting 1/1 CCPA creates an avenue to recover statutory damages for California residents who have had their data breached.) And are you following Seila Law v. CFPB?

Ever heard of EGRRCPA? It deals with QM loans for small institutions. PACE loans are included in that, as are HMDA and escrow requirements for small lenders. And don’t forget the 2019 Taxpayer First Act! Better have that additional paperwork in the loan file if you’re going to sell that loan.

For example, in a recent Announcement, Lakeview Correspondent issued information on upcoming Taxpayer Consent Form Requirement and the SAFE Act Regulations amendments in effective as of November 24th.

Don’t forget that on 10/28 HUD and DOJ announced a Memorandum of Understanding (MOU) regarding violations of FHA requirements, triple damages, potential FCA violations, and so on. Will the big banks come back to FHA lending? Stay tuned! And Ginnie Mae issued its servicer rating requirements, and new issuer information in the form of APM 19-06.

Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency discussed a proposed timeline, presented by the MBA, for the implementation of the new Uniform Residential Loan Application (URLA). The new timeline is a result of changes to the URLA that were announced in August, which include eliminating the language preference question. The proposed schedule includes mandatory use of the new form by November 1, 2020. Early adoption can begin on August 1, 2020. Lenders that coordinate with the GSEs and complete a readiness questionnaire may be permitted to use the new form beginning May 1, 2020.

Pot stocks are off their highs due to the slow pace of legalization. But in the U.S., there is movement. The Federal Reserve Board, the Federal Deposit Insurance Corporation, FinCEN, the Office of the Comptroller of the Currency, and the Conference of State Bank Supervisors in conjunction with the state bank regulators issued a statement clarifying the legal status of hemp growth and production and the relevant requirements under the Bank Secrecy Act (BSA) for banks providing services to hemp-related businesses. Banks are no longer required to file suspicious activity reports (SAR) for customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations. For hemp-related customers, banks are expected to follow standard SAR procedures, and file a SAR if indicia of suspicious activity warrants.

Capital markets

In recent weeks and months the markets remain focused on the health of the consumer, especially now that the holiday shopping season has officially kicked off. Overall, positive data persists although there are a few indications that the pace of consumer spending may begin to moderate. Consumer confidence eased for the fourth straight month, but remains at a high level with the record setting stock market and low gasoline prices providing support for spending growth. Spending grew at an annualized rate of 2.5 percent over the last three months which and is expected to hold up throughout the remainder of the fourth quarter. Over on the production side of the economy, durable goods orders’ unexpected increased in October and core capital goods shipments also increased. This could be a sign that manufacturing activity might be stabilizing after months of contraction. The recent data has done little to alter the outlook that GDP growth will continue to moderate in the fourth quarter as consumer spending growth eases and manufacturing muddles through in the face of trade tensions and slowing global growth.

Turning to rates, U.S. Treasuries & MBS rallied sharply yesterday, reversing course from the start of the week amid renewed trade war worries. President Trump is now moving towards waging trade wars on multiple fronts, after he threatened heavy tariffs of up to 100 percent on French goods such as cheese, champagne, cosmetics and other products. The U.S. says it is retaliation for France’s new digital services tax on technology companies. French Finance Minister Maire promised a “strong” EU response.

This comes after President Trump threatened to reinstate tariffs on steel and aluminum imports from Brazil and Argentina on Monday. Additionally, President Trump said during an early-morning press conference from the NATO summit in London that he likes the idea of waiting until after the 2020 election to sign a trade deal with China. He closed saying that no deal was better than a bad deal and that yesterday’s sell-off in equities was “peanuts” versus the importance of a good deal. Remember, the next round of tariffs on Chinese goods are scheduled to kick in on December 15 of this year. Commerce Secretary Ross confirmed that no high-level talks are currently scheduled between the U.S. and China prior to that date. Stocks dropped around the world, bonds rallied, and the 10-year Treasury yield closed the day -13 bps to 1.71 percent.

 

Today’s calendar kicked off with the Weekly MBA Mortgage Index for the week ending November 29, which showed applications decreased 9.2 percent from one week earlier. The results include an adjustment for the Thanksgiving holiday, but are still likely to be distorted to some extent by the Thanksgiving Day holiday. We’ve also had the November ADP Employment Change (67k).

 

Later this morning will be the final Markit Services PMI for November, and the November ISM Non-Manufacturing Index. The NY Fed will conduct an MBS purchase operation between 11:15 and 11:45am in GNII 3.0 percent ($504 million) and 3.5 percent ($182 million). We begin the day with Agency MBS prices down .125 and the 10-year yielding 1.73 percent, a bit of a bounce back from yesterday on no real news.

I used to smoke weed and go to the class.

I’d sneak in ten minutes late with a BS excuse.

Slink down low at my desk.

Pray to God nobody asked me any questions.

I was the best teacher ever.

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, “Politics do Indeed Impact Interest Rates and Borrowers” If you have the 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.)

Dec. 3: LO jobs; reno, construction, rental products; M&A update; training & events for Dec.

There’s an old saying among economists regarding predicting the future. “You can put a date on it, and you can put a number on it, but you can’t do both.” Sure there will be a recession, eventually. Just like there will be more expansion, at some point. And the past is not always a reliable indicator of the future. But for those out there who watch rates, and wondered where they were in, say, 1650, ex-LO Carol K. was nice enough to send along this historical graph which is pretty cool. Just be thankful you’re not in politics, right? Interesting news from yesterday from Fox News that “President Trump’s 2020 reelection campaign will no longer issue credentials to Bloomberg News because of its decision to investigate Trump, but not his political opponents, campaign manager Brad Parscale announced Monday.”

Jobs

Caliber Home Loans, Inc. Chief Executive Officer Sanjiv Das was invited to appear on CNBC recently. Yesterday, December 2ndhe discussed housing market trends with CNBC on its show, Closing Bell, to discuss housing market trends. That morning Housing Wire announced CEO Sanjiv Das as a winner of its 2019 Vanguard Award, for his professional accomplishments in the last 12 months and his leadership skills. This afternoon, you can watch Sanjiv on Bloomberg TV, Daybreak Americas. Consider a new career at Caliber! Visit www.joincalibernow.com or email Brian Miller to learn more about producing at Caliber.

Lender products & services

New podcast! “You’ve loved its eBooks, you’ve binged its blog posts, and now, by popular demand, the Maxwell team has released its brand new podcast, “Clear to Close”! Each episode of Clear to Close presents a no-BS, unbiased take on the issues impacting the mortgage world featuring topical deep-dives and exclusive interviews with industry thought leaders. In episode one, Bryan and Alan sit down with HousingWire CEO and President Clayton Collins to discuss his passion for financial education, entrepreneurial challenges, and what he’s learned from running a thriving media company. Stream, download, and subscribe to Clear to Close now on Apple Podcasts, Spotify, and Soundcloud (or wherever you get your podcasts). A must listen!

Developing lifetime customer relationships is a huge focus for many lenders. The leading brands are leveraging the latest and greatest technology to humanize the customer experience, anticipate their customers’ needs, and educate them throughout their financial journey. But, what about recruiting and retaining top producers to bring this all to life? How do you go about recruiting the best of the best and set them up for success with the right tech stack? It’s essential your employees not only feel valued, but also know their employer will provide them with the resources they need to grow the business. Total Expert Founder & CEO Joe Welu outlines key investments to make in your people and your technology to pave your organization’s way to increased retention and growth. Read the full article, “It’s What’s Inside That Counts: Why Your Internal Marketing Matters.”

Streamline Your Recruiting – Model Match helps forward-thinking mortgage professionals manage and grow their recruiting pipeline with greater efficiency.  Model Match’s Talent Management System (TMS) is the infrastructure and provides teams of all sizes an easy yet powerful way to collaborate and track their efforts. If you’re not sure who to recruit, Market Insights will help you develop a healthy pipeline of qualified candidates that are matched to the needs of your organization. Match originators based on volume requirements, product mix and more.  Get a birds eye view of their production history along with all the info you need to make contact today. Level up with Team Hammerhouse powered by Model Match.  We’ve reimagined mortgage recruiting and deployed a full-service partnership combining the trust and experience of Team Hammerhouse with the efficiencies and visibility of the Model Match TMS.  Visit us HERE to learn more and connect with our team.

Single-family Rental or vacation rental? Visio Lending is the nation’s leader in Non-QM loans for buy and hold SFR rentals. A proven lender with over 6,000 closed loans. With direct access to Wall Street, having just completed our fifth securitization, we offer the most attractive terms and the fastest, simplest and most dependable process in the country. Check us out today and learn why thousands of satisfied customers and brokers choose Visio for all of their SFR rental needs.

Looking to grow your Single Close Construction business for FHA, VA, USDA and FNMA? Then look to partner with GSF Mortgage Corporation (GSF). Lenders, brokers, and builders are seeing the advantage of working with GSF, helping set a record month of production. All options allow for maximum LTV’s, including FNMA at a 95% LTV. No re-qualifying after initial closing for the borrower. Every step of the process is handled internally, meaning no third party. Your builder will be vetted within 7 days by GSF. Your loan scenario and structure is calculated same day by GSF’s team of Construction Resource Specialists. All draws are handled by GSF. Is your builder looking for an advance at the closing table? No problem. Is your borrower worried about their rate at the time of modification? No worries, our float down option at modification will provide piece of mind. Contact Robert Stephens to learn more.

Are your customers talking refi? That’s going around. Home Point Financial has a refi and reno (or purchase and reno!) product all rolled into one for maximum convenience. With Home Point Renovation Lending, buyers have the flexibility to finance larger repairs and upgrades cost-effectively. They combine a complete renovation loan product suite with process knowledge and dedicated specialists to make home improvement projects possible for buyers who otherwise could not afford them. Check out the video here, or partner with Home Point today.

M&A

KBW reports that world of “PropTech” (aka property transaction technology), M&A activity remains robust and consolidation within sector verticals appears to be accelerating. “We estimate 32 M&A announcements in 3Q (vs. an average of 29 deals over the last six quarters). YTD, we estimate 108 deal announcements. In our coverage, CSGP and RP in particular remain highly acquisitive, with both companies recently announcing $450-$580 mil. deals. Evidencing continued strong deal activity, 96% of investors expect more or the same amount of PropTech M&A over the next 12 months, an all-time high and up from 86% a year ago (according to a MetaProp survey).”

In the “old fashioned” world of bank mergers and acquisitions, the Old Line Bank Mortgage Team is now with WesBanco in the Mid-Atlantic regionAnd this morning it was announced that Columbia Bank, MHC, Columbia Financial, Inc. (NASDAQ: CLBK) and Columbia Bank, and RSB Bancorp, MHC, RSB Bancorp, Inc. and Roselle Bank the signing of a definitive merger agreement.

Some companies aren’t acquired, or don’t merge, but those that do are included in this stat. An analysis of 569,419 businesses launched in March 1994 found that just 435,134 made it to the end of 1995, 257,488 lasted until 2000 and by the time it got to 2019, just 94,391 of the businesses were still kicking. That’s a 25-year survival rate of just 16.6 percent.

Training & events

MBA Webinars are always complimentary to MBA members. Registration is open for the following: Tuesday, December 3rd – 12:30-2:00 MISMO Monthly: Decision Model and Notation (DMN). Thursday, December 5th – 2:30-3:30 Complying with the Taxpayer First Act Utilizing MISMO. Tuesday, January 14th – 2–3:30 Ten Things Your Company Must Do in 2020. Use promo code WEBINAR at checkout to access your discount.

Genworth Mortgage Insurance provides complimentary courses to help customers manage, protect and grow their business, delivering you-centric solutions that matter. Register for the new Cyber Security course presented by That MI Guy, Understanding the Secondary Market, or Fannie Mae’s HomeStyle® Renovation; all designed to help you put the wow in your now. View the Genworth December Training Calendar.

The Plaza Home Mortgage December Webinar Calendar includes training on topics such as Credit, Fraud, Income, Sales and Communication. Registration is open for all December webinars.

Access the Franklin American Mortgage December Wholesale Customer Training Calendar

for a variety of training opportunities such as: Seizing Market Share, Cyber Security, How to Review an Appraisal, 7 Ways to Manage Email, Avoid Inbox Overload & Control Your Workday and Digital Disruption – Embracing Tech in Real Estate.

Freddie Mac’s free Real Estate Professionals Winter Webinar Series will cover affordable products and solutions that will help transition homebuyers into homeowners. Register for the first webinar in the series on December 4th.

On December 4th in Phoenix, MBA’s Whole Loan Trading Workshop offers expert insight on the buying and selling of whole loans. In the new year, February 3-6, the largest gathering of IMB professionals will convene in New Orleans at MBA’s Independent Mortgage Bankers Conference.

Yes, the MBA has a free webinar on MISMO on December 5. MISMO created Taxpayer Consent Language to help industry comply with the law. MISMO also provided implementation guidance and Frequently Asked Questions. Everyone in the industry may use the language free of charge. The  press release is available at this link.

The AmeriHome underwriting management team will be offering a Core Jumbo webinar on December 10. The webinar will Discuss the latest changes to the Core Jumbo Program Guide, Review Core Jumbo guidelines and Provide best practices for underwriting Core Jumbo loan transactions. For registration information, see the announcement on SellerWeb.

Jingle and Mingle on December 5th in San Jose, CA, from 11AM-2PM the Silicon Valley Chapter of CAMP has its annual luncheon featuring Dave Cortese (on the Santa Clara Board of Supervisors) and yours truly. If you’re in the area, come on by Maggiano’s Little Italy.

Holiday Mixer with the South Los Angeles and Orange County CAMP Chapters! The event is December 11th at Acapulco Restaurant 6270 Pacific Coast Highway, Long Beach, CA  90803 from 5:30-8:30.  Sponsors include Civic, PRMG, HighTech Lending, Loan Depot, Angle Oak and Class Valuation. There will be light appetizers and drink tickets. The event is free provided anyone attending bring a $20.00 unwrapped gift for Toys for Tots, and one can RSVP at solacamp@gmail.com.

And CAMP is offering a “1099 vs W2 Rule” webinar on December 10th.

Capital markets

The big action Monday happened in the bond market with rates on government debt jumping all over the world. One contributing factor was a surprise jolt to German domestic politics as Germany’s SPD named new leaders, fueling worries that the “grand coalition” with Angela Merkel’s CDU could be in jeopardy.

U.S. Treasuries began the week on a lower note, largely due to news out of China. China’s November Manufacturing PMI rose back into expansionary territory, beating estimates, as did November Non-Manufacturing PMI and the November Caixin Manufacturing PMI, while November Manufacturing PMI readings from the eurozone were slightly better than expected. The batch of positive manufacturing data spurred some hopes that global economic growth may rebound soon, but the mid-morning release of a disappointing ISM Manufacturing Index for the U.S. (it missed expectations) offered some pushback for those hopes. It was the fourth straight month of the New Orders Index declining, reflecting ongoing weakness in the U.S. manufacturing sector.

Markets reacted more to current economic releases than to trade rhetoric, which will please some. In fact, China sought to avoid trade-related matters when it retaliated against the U.S. over a new law passed by Congress supporting Hong Kong’s democracy protesters, instead vowing to sanction some rights organizations and halt warship visits to the city. China likely wanted to avoid any tit-for-tat tariff increases, China’s priority in securing a partial trade deal is to remove existing import tariffs. U.S. Secretary of Commerce Ross said that tariffs on imports from China will be increased if the two sides are unable to reach a trade deal.

President Trump tweeted that tariffs on steel and aluminum imports from Argentina and Brazil will be restored. The move amounts to retaliation against two nations that have become big suppliers of soybeans to China, grabbing market share away from the U.S. during Trump’s trade war. And even though China did not directly retaliate to Trump’s signing of the Hong Kong Human Rights and Democracy Act last week, reports are that the trade deal with China is now “stalled” due to the act’s recent passage.

Finally, part of the retreat in Treasuries was caused by a report that the Fed may implement a rule that would allow inflation measures to exceed the current 2.0 percent target. And domestically, total construction spending declined in October when it was expected to increase. This comes on the heels of a downwardly revised figure in September to a negative from a positive. Private construction spending remains negative over the last year, driven by both negative nonresidential spending and negative commercial spending over that same time period. The 10-year Treasury note ended the day +6 bps to 1.84 percent.

As far as mortgage-backed securities were concerned, UMBS 2.5 percent through 4.5 percent settled 1+ to 7+ lower, with spreads mixed as 2.5 percent and 3 percent were 1+ and 0+ tighter. 3.5 percent through 4.5 percent were either side of unchanged versus the treasury curve. Versus the swap curve, spreads closed fractionally tighter except for 4 percent, which were a tad wider.

Today’s calendar is the lightest of the week with just the non-market moving Redbook same store sales for the week ending November 30 here shortly. We begin today with Agency MBS prices up .125 and the 10-year yielding 1.79%.

Tis the time of year for office parties. Remember the adage, “Alcohol kills as many as 2.5 million people a year. But no one knows how many it creates.”

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, “Fannie & Freddie: A Snapshot” 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.)

 

Dec. 2: AE, LO jobs; HELOC, marketing, training products; FHA, VA, Ginnie… robots at HUD!

Did your company make any money in the 3rd quarter? I hope so, and I hope the 4th quarter is looking bright as well. (Just like I hope that MLOs on your staff are funding lots of loans, because if they aren’t, time to train them or let them excel elsewhere.) A couple weeks ago the MBA released its Mortgage Bankers Performance Report with the attention-grabbing headline, “IMB Profits Rise to Near Seven-Year High in Third Quarter of 2019.” Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks that provide their information to the MBA reported a net gain of $1,924 on each loan they originated, up from $1,675 per loan in the second quarter of 2019. According to the illustrious Marina Walsh, MBA’s VP of Industry Analysis, the increase in profits was primarily driven by declining production expenses and higher loan balances, which mitigated the effects of lower basis-point revenue. “Overall, it was a strong summer for independent mortgage banks, with 91 percent reporting profitability.”

Jobs

“This year Caliber Home Loans, Inc. solidified our place in the market as a leading national lender. We all worked together to break more records than ever before, introduce innovative home financing solutions and increase our business in all four sales channels. Our notable achievements include being the first lender outside of Figure Technologies to originate home equity lines of credit directly on a blockchain platform and our selection as the United States Veterans Chamber of Commerce’s (USVCC) #1 OPTION, for home mortgage loans. We proved to be #CaliberStrong at the end of the 3rd quarter by funding $7.85 billion overall in October and $19.9 billion overall in the quarter. This was a 70% increase over Q2 2019 volume, the biggest growth among all top 30 lenders in the country. Loan Consultants ready to reach new levels of success should Visit www.joincalibernow.com or email Brian Miller about career opportunities.

Fresh off the heels of another record-breaking quarter, non-QM lender Angel Oak Mortgage Solutions added to its growing roster of Account Executives in November. Jason Cowan came on-board in Salt Lake City, Drew Ruggieri in Cherry Hill, NJ, Kevin Hammond in Raleigh, Bill Deptuch in Eugene, Oregon and James Torres in Inside Sales. These AEs have gone through the first round of training and have been teaching brokers and correspondents how easy it is to work with Angel Oak. And Angel Oak is not done yet as management is continuing to add Account Executives in many additional markets including Milwaukee, Cincinnati and Virginia Beach. To learn more, view the latest job openings on the Careers Page or email National Business Development Manager, Andy Looker.

Gateway First Bank earns consistent recognition for growth and performance. Gateway First Bank was recently recognized as one of the MReport’s Top 25 Companies in Mortgage and Servicing and one of America’s 5,000 fastest-growing companies by Inc. Gateway also earned a spot in Scotsman Guide’s Top Mortgage Lenders and was named Home Possible RISE Award winner by Freddie Mac. “It’s an honor to be recognized for our customer service, performance and culture by industry leaders,” said Stephen Curry, CEO of Gateway. “This year we transformed to a bank, resulting in tremendous growth for the organization. This has expanded our passion for strengthening families through homeownership to include their entire financial health.” With $1.4 billion in assets, over 1,300 employees and 160 mortgage centers licensed in 40 states and the District of Columbia, Gateway is one of the largest banks in Oklahoma and one of the largest banking and mortgage operations in the U.S. To learn more visit www.GatewayFirst.com.

Lender products & services

Symmetry Lending is expanding again, with many exciting announcements. The HELOC specialist known for Service, Speed, and Simplicity, is now accepting submissions in 28 states, with the newest additions being Connecticut, Idaho, Indiana, Michigan, Pennsylvania, Utah, and Virginia. With this growth, Symmetry is excited to introduce the newest area managers: Ed Schwartz, Stacy Cappadona, Nancy Roy, and Deb Goguen. Learn more about all of Symmetry’s area managers here. Symmetry is also announcing a reduction in margins! Keeping things simple, Symmetry has reduced the margins on Stand Alone transactions, now offering the same low pricing as the Piggybacks. Learn more about these margin reductions by viewing the pricing guide on Symmetry’s website.

Loan Officer Hub updated its referral strategy podcasts. Listen on any device to leaders in the industry speak about how to expand referral partner networks, and close $200M in business. Listen Now.

Is a 40% lift in your loan production part of your plan for 2020? The XINNIX System™ of Training, Accountability, and Coaching is the proven way to ensure your experienced loan officers increase their productivity and new hires are fast tracked to success in any market. Schedule a call with a XINNIX Account Executive today to see how XINNIX can help you get started in January.

How much oversight is enough when it comes to vendor management? That question was asked at the recent MBA Fraud Prevention Forum in Chicago. To help you prepare for the 2020 vendor management lifecycle, Vendorly® is looking for feedback on a brief third-party risk management survey. With your participation, you’ll be entered to win a $100 Amazon gift card! Take the survey here.

Join National Mortgage Professional Magazine for another Unit Busters webinar, How to Radically Change the Future of Your Business in 8 Weeks, being held on Tuesday, December 3 at 2 pm ET / 11 am PT. Michelle Boucher and Ken Bartz of Monster Lead Group will tell you why you cannot change your future by, spending money on a ton more of the same crappy leads, relying on beating a rate to win a deal, or doing the same things the same way with the same level of knowledge. You can change your future if you have a marketing roadmap and a proven plan that gives you the strategies, tactics, and skills used by the most successful mortgage companies in the country. In this session you’ll learn the three biggest problems when it comes to growing sales, why your MLOs are leaving hundreds of apps behind every month, and how to stop the marketing bleed, and the 8-week marketing plan that can radically change the future of your business. You can register here.

HUD, FHA & VA march on

Is HUD catching up with IT modernization? Yes, it is, and in fact HUD has a video clip of robotics at work, evidence of the strides HUD is making in technology. the FHA IT modernization video clip can be seen by going to the “Federal Housing Administration” site on LinkedIn; The article with the embedded video clip is the 5th article down. (It appears you can email it if you viewed from a PDA, but viewed on a laptop I can’t find that feature.)

Don’t let Thanksgiving hide the latest Mortgagee Letter (ML), increasing the Maximum Rehabilitation Costs in QOZs. On November 22 FHA published Mortgagee Letter 2019-18, which increases eligible rehabilitation costs for Limited 203(k) Mortgages secured by properties in Qualified Opportunity Zones from $35,000 to $50,000 in total. It introduces enhancements to FHA’s Limited 203(k) Rehabilitation Mortgage Insurance Program for properties located in Qualified Opportunity Zones. FHA’s 203(k) Rehabilitation Mortgage Insurance Program enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. The $50,000 cap will be available for the first 15,000 mortgages secured by properties in QOZs each calendar year. FHA will provide advance notice through ML suspending the increase prior to this limit being reached. Additional Opportunity Zone information  — including a list of designated QOZs — is available through the U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund.

FHA released its Federal Housing Administration (FHA) Annual Report to Congress on the financial status of FHA’s Mutual Mortgage Insurance Fund (MMIF) for fiscal year (FY) 2019. As detailed in the report: The MMIF Capital Ratio for FY 2019 was 4.84 percent, the highest level since FY 2007. FHA had insurance-in-force on single family mortgages valued at almost $1.3 trillion at the end of this past fiscal year. The performance of the forward book of business posted a stand-alone capital ratio of 5.44 percent. The Home Equity Conversion Mortgage (HECM) reverse mortgage portfolio continues to show a negative stand-alone capital ratio, but improved substantially from a negative (-) 18.83 percent capital ratio in FY 2018, to negative (-) 9.22 percent in FY 2019.

From an industry-wide perspective, keep an eye on the recent RFIs including Ginnie Mae’s Request for Input on digital mortgage guidelines. Ginnie’s Request for Input on digital guidelines is a great place for people to be involved and share insights since Ginnie’s stated goal is to get into digital mortgages and accept these loans as collateral. Comment on issuer eligibility, eligible loan types, loan package and pooling requirements, investor reporting, risk and liabilities. Ginnie is creating a digital collateral pilot, and eGuide has statements around issuer eligibility for participating, could blossom into full-blown acceptance of eMortgages. Of great importance are custodian requirements and pooling parameters. Help the digital mortgage to become a reality for Ginnie.

loanDepot Wholesale/Correspondent posted its Weekly Announcement covering the following topics: FHA Fixed & ARM, loanDepot Net Tangible Benefit Policy, VA IRRRL – Interest Rate Decrease Requirement Update, Selling Guide Announcement SEL 2019-08, Freddie Mac Single-Family Update and Freddie Mac Bulletin 2019-20.

Wells Fargo Funding is updating its Best Effort Rate Sheet to apply Adjusters for additional lock periods to the 30-day price, instead of the 60-day price, for conventional Conforming, FHA, VA, and Guaranteed Rural Housing (GRH) Loans. This change aligns the lock period adjusters published on the rate sheet with those that appear on your lock confirmations, and will be reflected on pages 1, 6, 7, and 8 of the rate sheet on December 9. Note: Adjusters for additional lock periods continue to apply to the 60-day price for Non-Conforming Loans.

Plaza is aligning with FHA’s update and will accept the higher rehabilitation limit for eligible Limited 203(k) loans on or after December 16 as published in Mortgagee Letter 2019-18.

Mountain West Financial Wholesale issued a reminder regarding The Taxpayer First Act which requires consent to share the data to be obtained prior to sharing with other parties. Both required consents will be captured simultaneously using the new Taxpayer Consent form. The new document “Taxpayer Consent Form” does not take the place of or eliminate the 4506T, and will be required on all loans with the exception of non-income qualifying loans such as Streamline Rate Reduction Refinance (FHA) loans and VA Interest Rate Reduction Refinance Loans (IRRRLs). The Taxpayer Consent form will be effective with initial disclosure and closing document packages on or after 11/21/2019.

Effective for loans locked on and after December 16 with Mountain West Financial Wholesale, the maximum MyHome assistance amount, when used in conjunction with a CalHFA Conventional 1st mortgage, will be 3.00% of the purchase price or appraised value, whichever is less. The maximum MyHome assistance when used in conjunction with a CalHFA FHA 1st mortgage will remain 3.50%.

AmeriHome announced that the maximum base loan amount for both VA Interest Rate Reduction Refinance Loans (IRRRLs) and non-IRRRL VA transactions eligible for purchase by AmeriHome will be $1 million. (This overlay previously applied to non-IRRRL VA transactions only.) The VA and VA IRRRL Program Guide and Government Overlay Matrix have been updated with this change.

U.S. Bank Home Mortgage posted and Seller Guide Update SEL-2019-061 Monthly Release and SEL-2019-063 – November XX Manual Underwriting.

The PennyMac Correspondent Group has posted an announcement regarding 19-58: VA Circular 26-19-23: Updates to the Entitlement Calculation and Funding Fee.

US Bank Bulletin 2019-060 covers the following topics: Temporary Authority to Operate (Temporary Authority) for Mortgage Loan Originators, Update to Portfolio Underwriting Guidelines Clarification. Manufactured Housing in Condominium Projects. Rural Development Handbook and VA Lender Handbook Updates. Updated Connecticut Trust Table. Correspondent ARM Sample Disclosures. Government ARM Change Dates, End of Cycle Coming Soon.

AmeriHome reminded clients that there is no change to the requirement that all VA transactions purchased by AmeriHome must meet the Ginnie Mae minimum 25% guaranty restriction. The maximum base loan amount for both VA Interest Rate Reduction Refinance Loans (IRRRLs) and non-IRRRL VA transactions eligible for purchase by AmeriHome will be $1 million. (This overlay currently applies to non-IRRRL VA transactions only.)

Capital markets

U.S. Treasuries & MBS experienced little movement during Friday’s lightly traded affair, ending the abbreviated cash session where they began although there were some minor price movements between coupons and maturities, and between UMBS and the Treasury curve.

 

There is a lot of “headline fatigue,” but the big news this week should once again center around Brexit and the U.S. China trade war. Markets will be in wait to see how Beijing will hit back after President Donald Trump signed Congressional legislation in support of Hong Kong democracy protesters, possibly compounded by markets suggesting the U.S. has the upper hand in the trade war as financial warning signs flash across China. We received some more Chinese PMI’s over the weekend. And the Brexit general election is next Thursday the 12th.

 

As parts of the nation bear the brunt of winter storms, this week’s calendar is light on Fed appearances before next week’s FOMC decision, but does include some other central bank decisions from the RBA (tomorrow) and BoC (Wednesday). Important data points later this week include the ADP Employment Change for November and ISM Non-Manufacturing Index for November on Wednesday, Trade Balance, and Factory Orders for October on Thursday, and the important payrolls report to close the week.

 

Today’s calendar begins later this morning when markets receive the final November Markit manufacturing PMI, the ISM manufacturing PMI for November, and Construction Spending for October. The Fed will also be back in the market with purchase operations following the release this afternoon of the latest FedTrade schedule. We begin the day with Agency MBS prices worse .250-.375 and the 10-year yielding 1.84 after closing last week at 1.78 percent based on trade tensions easing and some strong manufacturing news.

 

(Thank you to Charles E. for this one.)

Wife texts husband on a cold winter morning: “Widows frozen, won’t open.”

Husband texts back: “Gently pour some lukewarm water over it and then gently tap edges with a hammer.”

Ten minutes later the wife texts back, “Computer really messed up now!”

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, “Fannie & Freddie: A Snapshot” 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.)

Nov. 30: Agencies shifting risk, reducing taxpayer exposure, increasing capital, indirectly helping borrowers

Most lenders will tell you that they’re trying to provide stellar customer service at the best possible price for their clients in the most efficient, cost-effective way. Aggregators, like Wells Fargo, PennyMac, and AmeriHome, for example, do their part. But on a much larger scale the Agencies (aka Freddie and Fannie) continue to help that process in both the primary and secondary markets, hoping to achieve competitive pricing in the secondary market while limiting risks borne by taxpayers. Along those lines, billions of dollars of conforming conventional loans have been bundled into CRT (Credit Risk Transfer) bond deals, nonperforming, or multifamily deals, which help reduce taxpayer exposure to the large book of mortgages guaranteed by the two housing giants and help the Agencies manage their capital.

I am occasionally asked if CRT deals will help MLOs find more borrowers? It is a legitimate question. Both Fannie & Freddie have been doing frontend and backend deals in which part of the credit risk is shared with third party investors – for a price. In the deals, the investors pay cash up front and purchase debt securities that are designed to absorb the credit losses on GSE (government sponsored enterprises) loan pools. The goal is to attract private capital into the mortgage market and shift some risk away from taxpayers since we are currently on the hook for Freddie & Fannie.

Supply and demand move mortgage rates. And if the demand for securities is strong, that helps the price, and therefore the rates to your borrower will be less. In theory. But to entice investors to participate, Fannie & Freddie must lower their gfees and backstop any mortgage insurance on loans with more than an 80% LTV. One way to think about it is if the Agencies contribute to lessen losses, through their guarantee fees, the and private MI companies cover a portion of the default risk on the underlying loans.

Investors who buy MBS like the fact that, with the high LTV CRT deals the GSEs provide a backstop to the MI component of that piece. You can follow along at home by watching for news about Connecticut Avenue Securities (Fannie) and Structured Agency Credit Risk (Freddie’s STACRs). Both lower guarantee fees, and therefore help borrower’s rates & prices.

And if you’re worried about the private mortgage insurance companies, remember that the MI companies have recapitalized and must now meet FHFA financial standards, aka Private Mortgage Insurer Eligibility Requirements (PMIERs) to insure Freddie and Fannie loans.

All of that should be positive for rate sheets for borrowers.

Freddie Mac’s Single-Family business announced on November 5 that its Credit Risk Transfer (CRT) program transferred approximately $2.5 billion of credit risk on $69 billion of single-family mortgages from U.S. taxpayers to the private sector in the third quarter of 2019. This brings the year-to-date total of credit risk transferred to $7.3 billion on $196 billion of single-family mortgages. The CRT program presents attractive opportunities for private capital to participate as Freddie expands CRT coverage across its book of business. Through its flagship offerings, Freddie Mac issued a total of six STACR and ACIS transactions in the third quarter—three on-the-run deals (DNA and HQA) and three seasoned deals (ARMR and FTR). As a result of STACR and ACIS on the run transactions this quarter, Freddie Mac transferred between 80 percent (high LTV HQA series) and 90 percent (low LTV DNA series) of the credit risk on the underlying reference pools, helping to reduce capital required under the Conservatorship Capital Framework. Since the first CRT transaction in 2013, Freddie Mac’s single-family CRT program has cumulatively transferred $51 billion in credit risk on nearly $1.4 trillion in mortgages.

Fannie sold a US$963.459m Connecticut Avenue Securities (CAS) deal, CAS 2019-HRP1, backed by home loans produced from its “Refi Plus” program that includes ones that came from the Home Affordable Refinance Program (HARP). It was the eighth and final CAS offering of 2019. Bank of America was the lead structuring manager and joint bookrunner, and Citigroup was the co-lead manager and joint bookrunner. Fannie Mae said it is expected to return to the market with a CAS deal referencing newly acquired loans in mid-January.

Freddie Mac priced a $1.3 billion K-099 deal, backed by underlying collateral consisting of fixed-rate multifamily mortgages with predominantly 10-year terms, which settled on October 30. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission on February 14, 2019; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 since December 31, 2018, excluding any information “furnished” to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K. Pricing for K-099 is as follows. Class A-1 has principal of $134.5 million, a weighted average life of 6.75 years, a coupon of 2.258 percent, a yield of 2.16409 percent, and a $100.4957 price. Class A-2 has principal of $1,133.029 million, a weighted average life of 9.80 years, a coupon of 2.595 percent, a yield of 2.24508 percent, and a $102.995 price. Finally, Class A-M has principal of $57.79 million, a weighted average life of 9.90 years, a coupon of 2.304 percent, a yield of 2.29816 percent, and a $99.9948 price.

 

Freddie priced the $769 million K-F69 transaction, backed by floating-rate multifamily mortgages with 10-year terms, which settled on October 30. The K-F69 Certificates were not rated, and will include one senior principal and interest class, one interest-only class, and one class entitled to static prepayment premiums. The K-F69 Certificates are backed by corresponding classes issued by the FREMF 2019-KF69 Mortgage Trust and guaranteed by Freddie Mac. The KF69 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-F69 Certificates and will not be guaranteed by Freddie Mac. The only offered class, Class A, has principal of $769.159 million, a weighted average life of 9.58 years, a coupon of 1-month LIBOR plus 52 bps, and an even $100.00 price. Classes XI and XP, which both contain principal of $854.622 million, will not be offered.

Freddie Mac also priced the $717 million K-1513 deal, which is comprised of certificates that settled on October 24. K-1513 pricing is as follows. Class A-1 has principal of $61.436 million, a weighted average life of 7.92 years, a coupon of 2.335 percent, a yield of 2.2553 percent, and a $100.4938 price. Class A-2 has principal of $119.824 million, a weighted average life of 11.54 years, a coupon of 2.726 percent, a yield of 2.4221 percent, and a $102.9987 price. Class A-3 has principal of $535.908 million, a weighted average life of 14.68. years, a coupon of 2.797 percent, a yield of 2.5503 percent, and a $102.9995 price. Class X1 has principal of $717.168 million, a weighted average life of 12.93 years, a coupon of 0.999 percent, a yield of 3.4143 percent, and a $9.091 price. Finally, Class X3 has principal of $79.686 million, a weighted average life of 14.76 years, a coupon of 3.0334 percent, a yield of 4.9094 percent, and a $31.1632 price. Freddie Mac requested and received preliminary designations and breakpoints from the National Association of Insurance Commissioners Structured Securities Group. The Regulatory Treatment Analysis Service provided a preliminary indication of the probable insurance regulatory treatment of K-1513 guaranteed classes and provided preliminary NAIC breakpoints for the K-1513 mezzanine securities.

Freddie Mac recently priced a new $564 million offering of Structured Pass-Through K-Certificates (K-W09) backed by fixed-rate mortgages on multifamily properties affordable to working households earning low-to-moderate incomes. This marks the company’s ninth K-Certificate issued under the K-W series and settled in July. The underlying mortgages backing K-W09 are on workforce properties, which generally have rents that are affordable to individuals earning 80 percent or less of their area median income, excluding high cost housing markets. K-W09 pricing is as follows. Class A-1 has principal of $131.994 million, a weighted average life of 6.71 years, a coupon of 2.716 percent, a yield of 2.3745 percent, and a dollar price of $101.9951. Class A-2 has principal of $432.138 million, a weighted average life of 9.72 years, a coupon of 2.929 percent, a yield of 2.5709 percent, and a dollar price of $102.9942. Class X1 has principal of $564.132 million, a weighted average life of 9.02 years, a coupon of 0.9392 percent, a yield of 3.5805 percent, and a dollar price of $6.3132. Finally, class X3 has principal of $62.681 million, a weighted average life of 9.86 years, a coupon of 3.1113 percent, a yield of 5.0631 percent, and a dollar price of $23.116. K-W09 Certificates are guaranteed by Freddie Mac.

Freddie also priced a new $966 million offering of Structured Pass-Through K-Certificates (K-L05), backed by two groups of loans. One group (Pillar Loan Group) consists of 16 fixed-rate mortgages backed by 16 properties and the other group (Harbor Loan Group) consists of 6 crossed fixed-rate mortgages backed by 6 properties. The transaction collateral is part of Freddie Mac’s K-L series of certificates, which are backed by large loans or pools of related mortgage loans on multifamily properties. The K-L05 Certificates are expected to settle on or about August 12, 2019. Pricing for the deal is as follows. Class A-P has principal of $707.222 million, a weighted average life of 9.87 years, a coupon of 2.536 percent, a yield of 2.4159 percent, and a dollar price of $100.99. Class A1-HG has principal of $13.99 million, a weighted average life of 8.10 years, a coupon of 2.395 percent, a yield of 2.3855 percent, and a dollar price of $100.00. Class A2-HG has principal of $245.372 million, a weighted average life of 9.54 years, a coupon of 2.652 percent, a yield of 2.5271 percent, and a dollar price of $100.99. Finally, class X1-P has principal of $707.222 million, a weighted average life of 9.62 years, a coupon of 1.0243 percent, a yield of 3.8217 percent, and a dollar price of $7.58.

 

Finally, Freddie priced a $602 million K-C Series offering of Structured Pass-Through Certificates (K-C05), which are multifamily mortgage-backed securities that settled on November 7. The K-C05 Certificates are guaranteed by Freddie Mac and are backed by 7-year and 10-year fixed rate loans that feature longer than typical periods of reduced prepayment penalties before maturity. Class A-SB has principal of $52.333 million, a weighted average life of 5.46 years, a coupon of 2.23 percent, a yield of 2.2615 percent, and a $99.745 price. Class A-7 has principal of $330.609 million, a weighted average life of 6.51 years, a coupon of 2.539 percent, a yield of 2.3573 percent, and a $100.9958 price. Finally, Class A-10 has principal of $219.593 percent, a weighted average life of 9.41 years, a coupon of 2.631 percent, a yield of 2.5047 percent, and a $100.992 price.

Fannie Mae announced the completion of its seventh Credit Insurance Risk Transfer (CIRT 2019-4) transaction of 2019, covering $10.5 billion in unpaid principal balance of 21-year to 30-year original term fixed rate loans previously acquired by the company. The deal is part of Fannie Mae’s ongoing effort to reduce taxpayer risk by increasing the role of private capital in the mortgage market. To date, Fannie Mae has committed to acquire approximately $10.3 billion of insurance coverage on $386 billion of single-family loans through the CIRT program, measured at the time of issuance for both post-acquisition (bulk) and front-end transactions. Fannie Mae will retain risk for the first 40 basis points of loss on a $10.5 billion pool of single-family loans with loan-to-value ratios greater than 80 percent and less than or equal to 97 percent. If the $42 million retention layer is exhausted, fifteen insurers and reinsurers will cover the next 375 basis points of loss on the pool, up to a maximum coverage of approximately $392 million. Coverage for these deals is provided based upon actual losses for a term of 12.5 years. A summary of key deal terms, including pricing, for these new and past CIRT transactions can be found here.

 

On November 6, Freddie announced it sold via auction 2,243 non-performing residential first lien loans (NPLs) from its mortgage-related investments portfolio. The sale is part of Freddie Mac’s Standard Pool Offerings (SPO). Freddie Mac, through its advisors, began marketing the transaction on October 8, 2019 to potential bidders, including non-profits and Minority, Women, Disabled, LGBT, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs), neighborhood advocacy organizations and private investors active in the NPL market. Bids for the upcoming Extended Timeline Pool Offering (EXPO), which is a smaller sized pool of loans, are due from qualified bidders by November 14, 2019. For the SPO offerings, the loans were offered as four separate pools of mortgage loans. The four pools consist of mortgage loans secured by geographically diverse properties. Investors had the flexibility to bid on each pool individually and/or any combination of pools. The SPO pools are summarized below: Pool #1 has an unpaid principal balance of $92.1 million, 556 loans in all CLTV ranges, on average 26 months delinquent, with the average loan balance being $165,700. Pool #2 has an unpaid principal balance of $108.1 million, 778 loans with a CLTV range less than or equal to 60, on average 38 months delinquent, with the average loan balance being $139,000. Pool #3 has an unpaid principal balance of $95.6 million, 554 loans with CLTV’s between 60 and 90, on average of 19 months delinquent, with the average loan balance being $172,500. Finally, Pool #4 has an unpaid principal balance of $73.3 million, 355 loans with a CLTV range greater than 90 percent, on average 20 months delinquent, with the average loan balance being $206,400. Given the delinquency status of the loans, the borrowers have likely been evaluated previously for or are already in various stages of loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. Mortgages that were previously modified and subsequently became delinquent comprise approximately 63 percent of the aggregate pool balance. Additionally, purchasers are required to solicit distressed borrowers for additional assistance except in limited cases and ensure all pending loss mitigation actions are completed. To date, Freddie Mac has sold $8.1 billion of NPLs and securitized more than $56.7 billion of RPLs consisting of $28.7 billion via fully guaranteed PCs, $22.5 billion via Seasoned Credit Risk Transfer (SCRT) senior/sub securitizations, and $5.5 billion via Seasoned Loans Structured Transaction (SLST) offerings. Requirements guiding the servicing of these transactions are focused on improving borrower outcomes and stabilizing communities.

Freddie Mac was very busy on November 7, pricing three deals. It priced a new $739 million offering of Structured Pass-Through K-Certificates (K-F71 Certificates) backed by floating-rate multifamily mortgages with 10-year terms. The certificates settled on November 15. The only offered class, the $739.197 million Class A, has a weighted average life of 9.59 years, a coupon of 1-month LIBOR + 56 bps, and an even 100.00 dollar price. Classes XI and XP, both $821.331 million, will not be offered.

 

Freddie Mac also priced a $448 million offering of Structured Pass-Through K-Certificates (K-S13 Certificates) backed exclusively by multifamily mortgages on seniors housing properties. The transaction is backed by two loans, each with floating-rate components and, collectively, twenty-seven underlying properties controlled directly or indirectly by KKR, as described in the offering documents. K-S13 is expected to settle on or about November 15, 2019. This is Freddie Mac’s thirteenth K Certificate offering backed exclusively by seniors housing. The one offered class, the $448.200 million Class A, has a weighted average life of 9.59 years, a coupon of 1-month LIBOR plus 66 bps, and an even 100.00 dollar price. Freddie Mac Multifamily sources its seniors housing loans from a select group of Optigo lenders with extensive experience in the seniors housing market, purchasing a variety of seniors housing loans including those backed by independent living properties, assisted living properties, memory care properties and senior properties with a limited amount of skilled nursing care.

 

Freddie priced the $1.1 billion K-100 deal, backed by underlying collateral consisting of fixed-rate multifamily mortgages with predominantly 10-year terms, which settled on November 15. K-100 is the 100th execution of Freddie Mac Multifamily’s flagship 10-year K-series. Freddie Mac Multifamily now executes more than a dozen variants of K-deals, which all have similar structures but differ based on the various terms of the multifamily mortgages being securitized. The K-series securitizations transfer the substantial majority of credit risk, shielding taxpayers from potential losses while serving a wide variety of investor needs. The net result is a more affordable, stable and liquid multifamily market. Pricing for the deal is as follows. Class A-1 has principal of $100.423 million, a weighted average life of 6.78 years, a coupon of 2.297 percent, a yield of 2.0278 percent, and a $100.4998 price. Class A-2 has principal of $1,024.023 million, a weighted average life of 9.82 years, a coupon of 2.673 percent, a yield of 2.32293 percent, and a $102.9916 price. Finally, Class A-M has principal of $62.086 million, a weighted average life of 9.86 years, a coupon of 2.38 percent, a yield of 2.37418 percent, and a $99.995 price.

On November 14, Freddie Mac announced pricing on the fourth Seasoned Credit Risk Transfer Trust offering of 2019—a rated securitization of approximately $2.3 billion including both guaranteed senior and unguaranteed subordinate securities backed by a pool of seasoned re-performing loans (RPLs).  Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2019-4 includes approximately $2.1 billion in guaranteed senior certificates and approximately $229 million in unguaranteed mezzanine and subordinate certificates. The underlying collateral consists of 12,347 fixed- and step-rate, seasoned RPLs which were modified to assist borrowers who were at risk of foreclosure to help them keep their homes. As of the cutoff date, all of the mortgage loans have been performing for at least 12 months. To date, Freddie Mac has sold $8 billion of Non-Performing Loans (NPLs) and securitized approximately $57 billion of RPLs consisting of $29 billion of fully guaranteed PCs, $23 billion of SCRT senior/sub securitizations, and $6 billion of Seasoned Loans Structured Transaction offerings.

Freddie Mac priced a new $703.97 million offering of Structured Pass-Through K Certificates (K-F72) which settled on November 26, backed by floating-rate multifamily mortgages with 7-year terms. The K-F72 Certificates will not be rated, and will include one senior principal and interest class, one interest-only class, and one class entitled to static prepayment premiums. The one offered class, Class A, will have principal of $703.967 million, a weighted average life of 6.64 years, a coupon of 1-month LIBOR plus 50 bps, and an even $100.00 price. The K-F72 Certificates are backed by corresponding classes issued by the FREMF 2019-KF72 Mortgage Trust (KF72 Trust) and guaranteed by Freddie Mac. The KF72 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-F72 Certificates and will not be guaranteed by Freddie Mac.

 

On November 21, Freddie closed its second Multifamily Credit Insurance Pool (MCIP) offering, MCIP 2019-R2, reinsuring risk on a $1.87 billion reference pool made up of 88 multifamily loans. Partnering with reinsurance broker Aon, Freddie Mac retains the first .75 percent of losses, and has purchased credit risk insurance for the next 4.5 percent of credit losses on the reference pool which consists of conventional and affordable loans in Freddie Mac’s Multifamily Participation Certificate program. There are eight reinsurers participating in this transaction. In MCIP transactions, Freddie Mac enters into long-term credit insurance contracts whereby a portion of any credit losses that occurs from existing multifamily loans in the company’s portfolio or bonds that Freddie Mac fully guarantees is covered by reinsurers. By transferring a percentage of credit risk to reinsurers, Freddie Mac reduces its need to hold capital for the underlying loans in the pool. Freddie Mac announced the first MCIP transaction, MCIP-2018-1, under the new risk transfer program in January 2019.

 

On November 18, Freddie priced a $474 million offering of Structured Pass-Through K Certificates (K-W10) backed by fixed-rate mortgages on multifamily properties affordable to working households earning low-to-moderate incomes. The underlying mortgages backing K-W10 are on workforce properties, which generally have rents that are affordable to individuals earning 80 percent or less of their area median income, excluding high cost housing markets. K-W10 Certificates are guaranteed by Freddie Mac. Class A-1 has principal of $53.53 million, a weighted average life of 6.70 years, a coupon of 2.277 percent, a yield of 2.1823 percent, and a dollar price of $100.4953. Class A-2 has principal of $420.60 million, a weighted average life of 9.75 years, a coupon of 2.691 percent, a yield of 2.338 percent, and a $102.9955 price.

 

Freddie Mac announced the pricing of the SB68 offering, a $482 million multifamily mortgage-backed securitization backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust. Freddie Mac Small Balance Loans generally range from $1 million to $6 million and are generally backed by properties with five or more units. This is the eleventh SB Certificate transaction in 2019. Freddie Mac is guaranteeing five senior principal and interest classes and one interest only class of securities issued by the FRESB 2019-SB68 Mortgage Trust. Freddie Mac is also acting as mortgage loan seller and master servicer to the trust. In addition to the six classes of securities guaranteed by Freddie Mac, the trust will issue certificates consisting of Class B and Class R Certificates, which will not be guaranteed by Freddie Mac and will be sold to private investors. The Optigo Small Balance Loan (SBL) origination initiative was first announced in October 2014, and expands the company’s continuing effort to better serve less populated markets and provide additional liquidity to smaller apartment properties. Freddie Mac has a specialty network of Optigo Seller/Servicers and Optigo SBL lenders with extensive experience in this market who source loans across the country. Pricing for the deal is as follows. Class A-5H has principal of $191.380 million, a weighted average life of 3.96 years, a coupon of 2.39 percent, a yield of 2.23 percent, and a $100.4940 price. Class A-7F has principal of $74.867 million, a weighted average life of 5.45 years, a coupon of 2.28 percent, a yield of 2.17 percent, and a $100.4555 price. Class A-7H has principal of $60.444 million, a weighted average life of 5.56 years, a coupon of 2.48 percent, a yield of 2.37 percent, and a $100.4510 price. Class A-10F has principal of $94.032 million, a weighted average life of 7.26 million, a coupon of 2.42 percent, a yield of 2.33 percent, and a $100.4943 price. Finally, Class A-10H has principal of $62.082 million, a weighted average life of 7.20 years, a coupon of 2.58 percent, a yield of 2.49 percent, and a $100.4934 price.

A salesman was going door to door trying to sell his wares. As he walked up to the next house, he noticed a small boy sitting on the front steps.

“Is your mother home?” the salesman asked the small boy.

“Yeah, she’s home,” the boy said, scooting over to let him past.

The salesman rang the doorbell, got no response, knocked once, then again. Still no one came to the door.

Turning to the boy, the fellow said, “I thought you said your mother was home?!”

The kid replied, “She is, but this isn’t where I live.”

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, “Fannie & Freddie: A Snapshot” 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.)

 

Nov. 29: Specified (“Spec”) pools & REIT primer; vendor mania; lender/vendor disaster news

There are seven members of the Board of Governors of the Federal Reserve System, and each region has a President. For 2019, the annual salary for the Fed Chairman is $203,500. The annual salary of the other Fed Governors is $183,100. But just think of all the “free” lunches during your speaking tours! There is no pay gap between men and women in the Fed, nor should there be. But per the U.S. Census Bureau, unfortunately all of the largest occupations with over 1 million full-time workers show some degree of earnings gap between men and women. This pattern remains for most of these occupations even when accounting for educational attainment. Occupations in which men are, on average, older than women have higher earnings on average, compared with occupations in which women are older.

Disaster updates

FEMA’s disaster declarations are always the final say about events, and the lending and insurance industries queue off that list.

ClosingCorp estimated that the residential mortgage industry has more than $7 billion in loan value and more than $60 million dollars in service fee and transfer tax revenue at risk as a result of recent California Wildfires. ClosingCorp based its estimate on “in-flight” residential mortgage applications in the FEMA designated affected areas for the Easy, Getty, Kincade, Saddleridge and Tick fires. An “in-flight” mortgage application is defined for this analysis as mortgages that are due to close between October 24, 2019 when the initial fire was declared by FEMA and the end of the year. When events like these occur, many lenders have broad and prudent policies to suspend loan closings until the event has passed and damage assessments can be completed. At a minimum this means the income associated with loan closings is deferred. In many cases, new inspections and often new appraisals will be required before the mortgages can be approved and the sales completed. In some instances, the damage will result in significant delays or cause deals to fall apart.

AmeriHome is removing certain restrictions and requirements for Agency transactions without appraisals when the property is in a Presidentially Declared Disaster Area granted Individual Assistance. Updates have been made to Seller Guide sections: 10.10.7.1: Declared Disaster Areas – Property Inspection Types. 10.10.7.3: Seller Damage Certification and Third-Party Inspection Requirements (Conventional-Agency, USDA, and VA. 10.10.7.7: FHA Transactions in Declared Disaster Areas. Definitions – Appraisal Waiver. Fannie Mae Standard Conforming Balance Program Guide and Fannie Mae High-Balance Program Guide.

Mortgage Solution Financial posted an Announcement regarding the California Fires – Fire Management.

Vendor news

Vendors are doing all kinds of things besides combining words into names, wreaking havoc with spell check systems.

Simplifile set a new company record by e-recording 106,244 documents in a single day on November 12th. Through Simplifile, settlement agents can submit land records directly online to any of the 2,003 participating county recording offices. In just minutes, the county recorder can review, stamp, record and return documents to the settlement agent electronically, and recording fees and payments can be processed directly through Simplifile’s secure payment service, eliminating payment errors and check-writing expenses.

Broadridge announced the launch of a new centralized Trade Assignment Portal (TAP) that will help mortgage originators and broker-dealers transform the execution of Mortgage-Backed Securities (MBS) Trade Assignments through improved efficiency and error elimination on a web-based platform. Several originators are completing user acceptance testing in preparation for going live on TAP. MBS Trade Assignments are typically manual, TAP’s automation allows originators and broker dealers to electronically send and receive trade assignments thus processing at a much faster rate and providing transparent tracking capabilities.

FormFree has added paystub collection and verification to its Passport all-in-one asset/employment/income verification service. Capable of ingesting paystub information in various ways: direct data pull (with the consumer’s permission) from payroll providers, an uploaded PDF or from a photo taken within the Passport app, its analytics engine corroborates the paystub data against public and proprietary sources to validate that the stated employer is a real company with whom the loan applicant has a verifiable connection, compares the paystub data against consumer asset data collected by Passport to calculate annual net pay and gross income and the verified asset, and income and employment data points are pushed to the lender’s systems (i.e., POS, LOS, AUS).

What does that digital mortgage actually look like? To achieve a true digital mortgage, lenders must unify, automate, and streamline every aspect of their business, spanning customer acquisition to loan delivery. View Ellie Mae’s short video to learn how lenders are realizing the true benefits of a digital mortgage through one end-to-end solution.

Kentucky Bankers Association has officially endorsed Promontory Fulfillment Services’ comprehensive mortgage fulfillment services and proprietary point-of-sale (POS) technology, Borrower Wallet. PFS’ tech-driven mortgage fulfillment solutions are designed to help banks, especially community banks, compete in the mortgage business without incurring the expense and burden of supporting an entire mortgage operation. PFS’ comprehensive set of solutions enables banks to determine their own product and loan pricing strategies while PFS provides the POS technology and process. Banks partnering with PFS field their own loan officers to co-pilot the application process and collaborate with their borrowers via Borrower Wallet®. PFS then processes and underwrites each loan using client-provided business rules and closes in the bank’s name.

The Lender Price Marketplace pricing engine provides mortgage brokers a search engine for multiple wholesale lenders. The recent addition of Home Point Financial increases the total number of wholesale lender partners to twenty-five. At no cost Lender Price distributes the Marketplace pricing engine through a partnership with the National Association of Mortgage Brokers (NAMB), an industry trade group with over 6,000 mortgage broker members.

Factual Data announced an integration with digital lending technology leader Blend. The integration will allow lenders who use Blend’s mortgage application platform to gain immediate access to Factual Data’s credit reporting services, increasing process efficiency while lowering risk and increasing reliability, providing an experience that will meet consumer’s expectations today.

Finicity announced the release of its new AssetReady Report that will rapidly identify a borrower’s assets using consumer-permissioned data during a lender’s pre-qualification process. Lenders have the option to receive balances and other data without having to ask for or include consumer Social Security numbers or date of birth. Fast, high-value data with less friction on lower probability applicants can provide lenders with better insights on how to strategically move borrowers forward in the application process without asking for detailed verification reports.

Sitel Group and CallMiner partnered to publish a research study titled Sitel + CallMiner Survey: Preventing Fraud and Preserving CX with AI. The study identifies consumer concerns around fraud, habits and channel preferences for communicating with brands and their perceptions around the use of artificial intelligence (AI) and speech technology to prevent fraud.

SimpleNexus has integrated with CoreLogic’s Instant Merge to give its loan officers users instant, on-the-go access to loan applicants’ credit reports and FICO scores from all three national credit bureaus. With SimpleNexus, borrowers can complete a loan application, upload documents and view loan status, all from a mobile device. Loan officers receive an alert as soon as a borrower applies, and they can use their own mobile device to move loans forward, including ordering credit reports, even when they are out of the office.

Deephaven Mortgage and LoanScorecard have enhanced the functionality of Deephaven’s popular Scenario Calculator, providing originators one-click access to the lender’s AUS engine, IDENTI-FI AUS. Now originators using the IDENTI-FI Scenario Calculator to view product and program eligibility scenarios and price loans will be able to obtain detailed AUS findings from directly within the scenario calculator.

PennyMac Loan Services LLC will leverage Ellie Mae’s Encompass™ Digital Lending Platform to support its correspondent business. This move expands PennyMac’s long standing relationship with Ellie Mae’s Encompass platform, allowing PennyMac to eventually consolidate its consumer direct, broker direct and correspondent businesses on a single platform. The Encompass Digital Lending Platform empowers lenders and investors to engage homebuyers and efficiently originate, close, sell and purchase loans that maximize ROI across their business, all from a single system of record.

Brace’s software solutions, used to streamline complex borrower loss mitigation processes, has partnered with The Palisades Group, a residential whole loan investment and asset management firm. Brace technology development is focused on providing the market with a digital solution to streamline one of the most inefficient and costly aspects of residential mortgage loan servicing – the borrower loss mitigation process. Joining an asset manager like Palisades lends credibility to Brace while providing direct access to whole loan and mortgage servicing rights (MSR) investors and servicers to further create new innovative product offerings which are catered to investors’ needs.

Capital markets

Every lender out there is trying to a) cut costs, and b) increase revenue. There are only a couple ways a lender actually makes money, one of which is superior mandatory execution in the secondary markets. And one way to improve that is by divvying loans into specified, aka spec, pools. Agency MBS carrying prepayment protection through “spec” pools have noticeably outperformed more rate-sensitive, generic collateral as interest rates have dropped, with spec pool price spreads over TBAs up nearly 4x since the start of this year. Almost half that appreciation has been realized since the end of April, with most companies concentrating towards “higher quality” specified collateral, keeping book values propped up, especially with the intensity of spread widening on current coupon mortgages.

REITs have been injecting additional prepayment risk into their portfolios by acquiring bonds with significant premiums at high leverage levels over the last few months. Unfortunately, the value embedded in high-priced spec pools could deteriorate quickly if rates snap back in the other direction, making it a tough time for Agency REITs to manage risk right, as companies are faced with either absorbing hefty premiums on new investments in spec pools (and possibly needing to increase leverage in order to maintain stable earnings), or taking the path of acquiring more prepayment sensitive (but cheaper in price, and potentially higher yielding) securities. The trade-off is complicated by the strong recent performance of spec pools, since prepays could accelerate rapidly if rates decline much further, even for the highest quality collateral.

Given that outlook, it calls into question how much room for additional appreciation the market is willing to bid for spec pools. And REITs also run the risk of price premiums collapsing in response to a sharp upward correction in rates, thereby leaving the portfolio stuck in lower yielding, slower paying securities as the market cheapens. All that being said, companies with relatively modest Agency prepayment risk, including those with offsetting exposure via discounted credit assets, are best positioned in the current environment. Most mortgage REIT management teams noted on Q2 earnings calls that book values were flat to up slightly in July, though that’s been offset by slightly wider spreads on spec pools in August despite price pay-ups over TBA continuing to climb higher. Spec pools have still meaningfully outperformed a hedged portfolio of generic securities or TBAs, where both nominal spreads and option-adjusted spreads (OAS) are wider since the end of June. It will be interesting to pay attention to going forward, as the risk in rates dropping further could pressure economic returns for REITs.

Plenty of lenders are closed today and not even taking locks, but U.S. Treasuries ended Wednesday on a lower note due to better- than-expected data. Notably, durable goods orders increased when they were expected to decrease. The reading will surely be a positive input for Q4 GDP forecasts. Speaking of GDP, the second estimate for Q2 GDP beat expectations as it was revised upward, driven by a change in private inventories. The Federal Reserve’s Beige Book for November noted that economic activity was little changed from the previous reporting period. And Brexit popped back up in the news, with the EU’s Brexit negotiator telling European politicians that the U.K. will be expected to agree to free movement of people in order to secure a tariff-free trade deal with the EU after Brexit.

 

After bond and equity markets were closed for Thanksgiving yesterday, there are no scheduled releases today and there is an early close. Trading desks will be lightly staffed despite the month-end trade, and the futures pits will close with cash closing at 2PM ET. After everyone has left, the Desk of the New York Fed will release a new FedTrade schedule, covering December 2 to 12 and expected to total about $4.6 billion. We begin the day with Agency MBS prices unchanged and the 10-year yielding 1.77% after closing Wednesday at that level.

It was the day of the big sale. Rumors of the sale (and some advertising in the local paper) were the main reason for the long line that formed by 8:30, the store’s opening time, in front of the store.

A small man pushed his way to the front of the line, only to be pushed back, amid loud and colorful curses.

On the man’s second attempt, he was punched square in the jaw, and knocked around a bit, and then thrown to the end of the line again.

As he got up the second time, he shouted to the person at the end of the line, “That does it! If they hit me one more time, I won’t open the store!”

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, “Fannie & Freddie: A Snapshot” 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.)

Nov. 27: LO jobs; borrower retention tool; 2020 loan limits spelled out; Fed addressing haves & have nots disparity

Loan officers know that rent is a “piece of the puzzle,” “a part of the equation” in the homebuying decision. They should be glad to know that the typical rent in the U.S. is now $1,600, an annual increase of 2.3% in October. I’m simplifying things quite a bit, but it is not lost on LOs that a $1,600 monthly outgo, including taxes and insurance after a $20,000 down payment, buys someone a $300,000 house at current rates. And it’s still the American Dream! What isn’t in the American Dream is having your personal information sold by motor vehicle departments around the nation. For example, the California DMV pocketed $52,048,236 in revenue in the 2017-18 financial year through the sale of drivers’ personal information. California is not alone in the practice of selling names, physical addresses and car registration information to companies like LexisNexis and Experian, as well as to private investigators, insurance companies, and prospective employers.

Employment

Wyndham Capital Mortgage, the highest consumer-rated digital mortgage lender, announces rapid expansion on the heels of record-breaking performance. The company is scaling its sales teams to meet the demands of its customer growth by debuting a new headquarters in early 2020. Earlier this year the company opened its first lending centers in Kansas City, KS (13 new employees) and Salt Lake City, UT (8 new employees with more in the coming weeks).  Wyndham is building an entirely new model for loan officers, offering freedom and flexibility, operational excellence, and comprehensive marketing support. Shifts in the mortgage industry have created a need for experienced loan officers, a need Wyndham can meet. The company’s operations department supports loan offers with dedicated speed teams, robotics, and an all-inclusive marketing platform, resulting in closing timelines 16 days faster than the national average. To learn more about how Wyndham can help you grow your career, visit join.wyndm.co.

Congratulations to John Cannon who is the new president of CPC Mortgage Company, a subsidiary of the Community Preservation Corporation.

Lender products & services

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.

Minnesota Vikings quarterback Kirk Cousins overcame a lot of doubters to become a successful NFL player. Austin Niemiec, EVP and leader of QLMS, sat down with Kirk to talk business, sports, family and philosophy. Their great conversation is captured in Austin’s growing library of podcasts with top influencers in the mortgage field and beyond. Search “Stronger Together” on any of the top podcast platforms to listen and subscribe. If you aren’t already a QLMS approved partner, click here and flex your superpower of CHOICE!

The slow season doesn’t have to be slow, and it won’t be slow for lenders like PRMG, Wallick & Volk, AnnieMac, Churchill Mortgage, American Pacific Mortgage, and Willow Bend Mortgage. What are these lenders doing differently? They’ve realized what over 70 other lenders have already discovered: what Sales Boomerang’s Automated Borrower Retention System will do for them when the market shifts completely. This is your recession buster. Schedule a demo and be prepared for whatever the market brings.

Latest from STRATMOR

In the November issue of STRATMOR’s Insights ReportCEO Lisa Springer connects the leadership elements of passion, purpose and persistence to her recent experiences in Santorini, Greece. “I came away from our visit to Santorini with new perspectives about the importance of reinforcing our passion, purpose and persistence at STRATMOR,” says Springer. “In today’s world, companies must overcome competition, rising costs, changing customer perceptions, the unpredictability of social media, and regulatory threats, all in tandem. Mortgage lenders have the additional challenges of disparate systems, geographically dispersed locations, and different state and municipal laws and regulations. It takes passion, purpose and persistence to succeed and to grow.” Also, in the November issue, MortgageSAT Director Mike Seminari offers insight into the importance of creating awareness and establishing accountability in translating the vision for a great customer experience from leadership to loan officer. Read the November Insights Report.

Conventional conforming news

The new Uniform Residential Loan Application will have a significant impact on the industry and the FHFA and GSEs (Freddie Mac and Fannie Mae) are debating new implementation timelines. The new timeline is a result of changes to the URLA that were announced in August, which include eliminating the language preference question. The proposed schedule includes mandatory use of the new form by November 1, 2020. Early adoption can begin on August 1, 2020. Lenders that coordinate with the GSEs and complete a readiness questionnaire may be permitted to use the new form beginning May 1, 2020. The MBA wants to hear from industry about the proposed new timeline and for more information, please contact Rick Hill at (202) 557-2718.

As expected near Thanksgiving, the Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits (based on changes in the average U.S. home price) for mortgages to be acquired by Fannie Mae and Freddie Mac in 2020. In most of the U.S., the 2020 maximum conforming loan limit for one-unit properties will be $510,400, an increase from $484,350 in 2019. (According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased 5.38 percent, on average, between the third quarters of 2018 and 2019. Therefore, the baseline maximum conforming loan limit in 2020 will increase by the same percentage.)

“High-Cost Area Limits,” usually along the coasts or in major cities where 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit. “HERA establishes the maximum loan limit in those areas as a multiple of the area median home value, while setting a ‘ceiling’ on that limit of 150 percent of the baseline loan limit. Median home values generally increased in high-cost areas in 2019, driving up the maximum loan limits in many areas.” The new ceiling loan limit for one-unit properties in most high-cost areas will be $765,600 (150 percent of $510,400).

And don’t forget the different loan limit calculations for Alaska, Hawai’i, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $765,600 for one-unit properties.

The Agencies posted updates. For example, Freddie Mac will update Loan Product Advisor® on December 4, 2019, so you may begin originating mortgages with these new loan limits. “However, mortgages with higher original loan amounts eligible under the 2020 loan limits must have Freddie Mac funding or settlement dates on or after January 1, 2020. As a reminder, actual loan limits for certain high-cost areas, as determined by FHFA, may be lower than the maximum high-cost area limit. When originating super conforming mortgages, you must check the loan limits for the specific county where the property is located. The Single-Family Seller/Servicer Guide will be updated with the 2020 loan limits with a December Bulletin. Make sure to read our article and FHFA’s press release for details on the 2020 loan limits.”

Remember HAMP? It’s remnants are still around for borrowers if their loan is owned by F&F, it is a first mortgage and not a refinance, and other requirements are met. It is titled the Flex Modification Program. Fannie Mae has a Fact Sheet, as does Freddie Mac.

The PennyMac Correspondent Group posted a Revised Sample Rate Sheet for Conventional and VA LLPA Updates. In addition, Announcement 19-59 provides information regarding Updates to Conventional LLPAs and VA Full Doc Price Adjustments.

Fannie Mae issued a Lender Letter to provide guidance on updated mortgage insurers’ master primary policies and related endorsements and other forms. Any loan sold to or securitized by us that has mortgage insurance and a loan application date on or after March 1, 2020, must be insured under one of the new approved forms.

Lakeview posted a new announcement regarding important updates to the following: TSAHC Program Changes, Forgivable 2nd Lien DPA Options, Freddie Mac LPA, Fannie Mae SEL-2019-08 and an important reminder regarding rental income calculations and documentation.

Capital markets

Loan officers should know that rates may chop around at these levels well into 2020. Keep in mind that the latest minutes from the Federal Open Market Committee point to a Fed that would prefer to keep monetary policy unchanged through the end of 2019 so they can monitor what effects their recent changes have on the economy. Financial conditions are looser than earlier in the year and at a place the Committee feels is “appropriate” to sustain the current economic expansion. Additionally, the FOMC indicated that it would need to observe substantial economic degradation prior to any further easing. The mood of the financial markets continues to hinge on whether or not a trade deal will be reached between the US and China. Deal or no deal, the markets do not expect any movement in monetary policy until the second half of 2020. Although there are plenty of downside risks that may force the Fed’s hand earlier such as a global growth slowdown and weak business investment. All eyes will be focused on consumer spending heading into the holiday shopping season and through year-end.

Yesterday Fed Chair Powell said that monetary policy is now well positioned to support a strong labor market and return inflation to the Fed’s symmetric 2 percent objective. He reiterated that if the outlook changes materially, policy will change as well, adding that at this point in the long expansion, he sees the glass as much more than half full. Mr. Powell began the week describing how the economic expansion has seen major gains among minorities, the disabled, and people who don’t have degrees. That is a new line of Fed communication this year, and Minneapolis Fed President Kashkari likely helped Powell arrive to that conclusion.

 

Cutting rates three times in 2019 has largely been due to trade tensions and a slowing global economy, but the Fed has also offered new explanations for their actions, focused on low-paid Americans. Kashkari has been an advocate that monetary policy can play the kind of wealth redistribution role once believed to be solely the domain of elected officials. After all, politicians control government spending and taxes, and the Fed’s guiding doctrine says that moving rates around can shift prices, but not the structure of job markets, or the prevalence of inequality.

 

In 2017, Kashkari began to examine widening disparities in the economy, expecting to generate research that might inform lawmakers’ decisions, rather than the Fed’s. What he discovered was that Americans who’d given up looking for work after the financial crisis (who weren’t therefore counted among the unemployed) were reentering the labor force, confounding expectations at the U.S. economy kept creating jobs, even as low jobless rates suggested that it should’ve been at or near full employment under old assumptions. It turns out that supply explanations, like men (ages 25 to 54) that had dropped out, wasn’t a big source of the problem. The issue was weak demand, which implies the trend could reverse, if policy makers let the economy heat up enough. This may influence the Fed to raise rates less rapidly during the next economic expansion.

 

Turning to rates, U.S. Treasuries rallied on Tuesday despite encouraging new home sales data and optimism surrounding a trade deal. New home sales in October beat expectations and saw a large, upward revision to the prior month’s number. On the trade front, China reported the two sides “reached consensus on how to resolve related issues and agreed to maintain communication on the remaining issues,” while the U.S. side acknowledged a phone call took place but declined to comment on what was discussed. The next few retail sales reports will be of particular interest, given both the next round of incoming tariffs and Thanksgiving falling late this year, causing many in the retail sector to worry about holiday spending activity.

 

But that is a few weeks in the future. We began today with the MBA Mortgage Applications Index for November 23 (+1.5 percent). Markets have also received jobless claims for the week ending November 23 (213k), the second estimate of Q3 GDP (+2.1% from +1.9%), and Durable Goods Orders for October (+.6%). Later this morning brings consumer spending information, Pending Home Sales for October and the Fed’s beige Book, in addition to $32 billion 7-year Treasury note auction results. We begin the day with Agency MBS prices worse .125-.250 (not that anyone is locking today) and the 10-year yielding 1.78 percent after closing yesterday at 1.74 percent.

I ordered a chicken and an egg from Amazon. I wonder what’ll come first.

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, “Fannie & Freddie: A Snapshot” 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.)

Nov. 26: Bus. Dev., LO, Ops, compliance jobs; broker, portfolio marketing products; CFPB is taking on LO comp

“Rob, with the announcement a while back that Quicken Loans inked a mortgage deal with Charles Schwab, and now with Schwab buying TD Ameritrade, do you think Quicken will go after those customers as well?” Gee, do ya’ think? And for anyone selling loans, or originating loans, I received this note yesterday. “Rob, have you heard of the IRS’ Taxpayer First regulations that take effect on December 28th? As I understand it, a new disclosure form is required if you’re passing any tax return information on to third parties – like an investor. True?” Yes, more documents to fund any loan that will be sold! The lending industry is focused on disclosures by the IRS, and as I understand it, any information provided by the IRS from December 28 on falls under this. Click on the link above and look for the, “Notice to taxpayer of IRS contact with third party.” Your compliance people should formulate a policy regarding this and the commonly used 4506-T form. (Carter Gladstone at 4506-Transcipts.com has more information regarding this and whether more disclosures are needed to stay compliant. And no, this is not an ad.) Lots more compliance and CFPB news below.

Employment

Opus Capital Markets Consultants, LLC, (Opus CMC) leading provider of mortgage due diligence, a wholly owned subsidiary of Wipro Ltd. (NYSE: WIT), a leading global Information Technology, Consulting and Business Process Services company, is seeking a Compliance Officer to act as liaison between business units and compliance counsel. The candidate will be responsible for communication related to changes in legal conditions and monitor compliance systems. S/he will be the resident expert on current and evolving regulations, as well as on historic regulations at both State and Federal levels. The Compliance Officer will work with the training team to assist with further development of materials; will convey Opus’ position in a concise manner and will be responsible for attending and contributing to industry working groups to appropriately communicate and present Opus’ position on varied compliance topics.  For more info contact Anine Cureton.

Attention Post Closing Managers! A lender headquartered in Irvine, CA is looking for an AVP-Funding/Post Closing. The ideal candidate will have 5 years of successful Post Closing management experience, and knowledge of compliance, processing, underwriting, closing, and funding as well. If you have a proven track record of creating efficiencies and improving workflow, and want to be part of a positive and collaborative work culture, please send your resume to mortgagerecruiter4u@gmail.com.

Wyndham Capital Mortgage, the highest consumer-rated digital mortgage lender, announces rapid expansion on the heels of record-breaking performance. The company is scaling its sales teams to meet the demands of its customer growth by debuting a new headquarters in early 2020. Earlier this year the company opened its first lending centers in Kansas City, KS (13 new employees) and Salt Lake City, UT (8 new employees with more in the coming weeks). Wyndham is building an entirely new model for loan officers, offering freedom and flexibility, operational excellence, and comprehensive marketing support. Shifts in the mortgage industry have created a need for experienced loan officers, a need Wyndham can meet. The company’s operations department supports loan offers with dedicated speed teams, robotics, and an all-inclusive marketing platform, resulting in closing timelines 16 days faster than the national average. To learn more about how Wyndham can help you grow your career, visit join.wyndm.co.

Guaranteed Rate is seeking acquisition opportunities with mortgage companies looking to maximize profitability. Guaranteed Rate, the 6th largest retail lender in the country, experienced record growth in 2019, creating a great opportunity to partner with like-minded leaders looking to take advantage of our expertise and economies of scale. If you are an owner or CEO of a mortgage company that is looking for better pricing, increased profitability, lower risk and much less stress and hassle, we urge you to confidentially e-mail Mark Filler to learn more about integrating your business into our platform.

GO Mortgage is seeking an experienced Business Development Manager (BDM) to serve as an advocate and brand ambassador. The focus will revolve around identifying and targeting industry professionals who are qualified to sell GO Mortgage products. The BDM will perform as a Chief Sales Talent Recruiter and Hiring Manager. Additionally, the experienced BDM will connect branch sales offices with outside mortgage industry partners and create lasting, beneficial relationships. The successful candidate understands people and their motivations and has the ability to apply marketing concepts to live scenarios in a creative fashion. Candidates must have a minimum of three years of recruiting or hiring experience, plus two or more years’ experience in Mortgage Loan Origination. Bachelor’s degree preferred. Position requires travel. Please send resumes directly to Toni Barma.

Lender products & services

A property management company faced significant obstacles liquidating a large portfolio of lower-value assets in need of varying levels of maintenance and repair in hard to access rural communities. Traditional real estate marketing channels had been unsuccessful and the company struggled to maintain adequate exposure of these assets, resulting in longer marketing timelines averaging six months. Altisource® increased asset exposure for this client through its industry-leading real estate marketing platform Hubzu®, which ultimately resulted in 44% of the client’s properties liquidating within 30 days on market. Download the case study here.

Here’s a new podcast! “You’ve loved its eBooks, you’ve binged its blog posts, and now, by popular demand, the Maxwell team has released its brand new podcast, “Clear to Close”! Each episode of Clear to Close presents a no-BS, unbiased take on the issues impacting the mortgage world featuring topical deep-dives and exclusive interviews with industry thought leaders. In episode one, Bryan and Alan sit down with HousingWire CEO and President Clayton Collins to discuss his passion for financial education, entrepreneurial challenges, and what he’s learned from running a thriving media company. Stream, download, and subscribe to Clear to Close now on Apple Podcasts, Spotify, and Soundcloud (or wherever you get your podcasts). A must listen!

This holiday season, TMS is putting the CARE in CAREspondent Lending. For every new lender that partners with TMS before the end of the year, TMS will donate $250 to Family Reach, a national non-profit dedicated to alleviating the financial burden of cancer. You can sign up here today!

Completing a major financial transaction is an emotional experience. Consumers want to be educated and advised along the way and have a trusted partner they can turn to throughout the process. Mortgage lenders who anticipate their customers’ needs strengthen their relationships and create customers for life. The most successful financial brands are leveraging artificial intelligence (AI) and machine learning (ML) to enhance this ability and develop deeper connections with their customers. However, how do you strike the balance of leveraging technology without losing the human element? Total Expert Founder & CEO Joe Welu breaks this down in National Mortgage News, “Why AI in the Mortgage Industry Needs a Human Touch.”

 

Home Point Financial believes in turning near misses into home runs. Built from the ground up for challenging loan scenarios, Home Point Edge offers Near-Prime products for those near-miss borrowers, Expanded Access for borrowers with less-than-perfect credit, and dedicated underwriters who know the program inside and out. Features include departure residence flexibility, cash-out to meet reserve requirements, asset utilization, and ratios up to 50%. Learn more here, or cut to the chase and partner with Home Point today.

Remember compliance? The CFPB?

Don’t forget that the California MBA 2019 Legal Issues & Regulatory Compliance Conference is next week in So Cal. (If you’re there, say hi!) And on 12/11 “join the MBA’s Compliance Essentials program (it’s free!) as the presenters will highlight the primary requirements under RESPA’s statute and regulations that apply in connection with the origination of mortgage loans, including the anti-kickback provisions in Section 8 of RESPA, the prohibition on required use in Section 9 of RESPA, and a brief summary of consumer disclosures required by RESPA.

Even though we are less than a month away from the official start of winter, last week the Consumer Financial Protection Bureau (aka CFPB) released its Fall 2019 Agenda. On it, for the first time, and as a priority, is a review of the Loan Originator Compensation Rule (LO Comp Rule). The agenda identifies regulatory matters that the Bureau “reasonably anticipates having under consideration during the period from October 1, 2019, to September 30, 2020” as well as long-term regulatory actions that the Bureau is considering undertaking beyond the current fiscal year. The Mortgage Bankers Association points out that “the Bureau has received feedback that aspects of Regulation Z’s loan originator compensation requirements are unnecessarily restrictive.”

The CFPB is now considering “whether to permit adjustments to a loan originator’s compensation in connection with originating state housing finance authority loans[,]” and “whether to permit creditors to decrease a loan originator’s compensation due to the loan originator’s error in order to provide clearer rules of the road for regulated entities.”

But wait… there’s more! Also on the CFPB’s mortgage platter are rulemakings on the Qualified Mortgage/Ability-to-Repay Rule (QM/ATR Rule), PACE financing, and potential HMDA changes. But why take my word for it? The Fall 2019 Rule List can be found here.

Not wanting to leave RESPA fans in the cold, the CFPB published a request for information (RFI) on its assessment plan for the TILA/RESPA Integrated Disclosure Rule (TRID Rule). Like prior assessments of the ATR/QM Rule and the RESPA Mortgage Servicing Rule, the TRID assessment will be conducted pursuant to section 1022(d) of the Dodd-Frank Act, which requires the Bureau to assess each significant rule and publish a report of the assessment within five years of the effective date of such rule. Based on the TRID Rule’s October 3, 2015, effective date, “the Bureau anticipates that it will issue an assessment report not later than October 3, 2020.” The assessment will address, among other factors, the TRID Rule’s effectiveness in meeting the purposes and objectives of Title X of the Dodd-Frank Act, as well as the specific goals of the TRID Rule: aiding consumers in understanding their mortgage loan transactions, facilitating cost comparisons, helping consumers decide whether they can afford a loan as offered, etc.

The Bureau notes that the TRID assessment plan “is informed by a cost-benefit perspective[.]” Given this approach, research questions presented in the assessment plan “seek to quantify the costs and benefits of the TRID Rule” by examining its consumer, firm, and market effects. The RFI invites comment on a series of specific questions relating to proposed assessment plan, including the plan’s scope, feasibility, and recommendations for improvement. The Bureau also requests data and other factual information on the TRID Rule’s benefits and costs; comments on unclear aspects of the TRID Rule; and recommendations for modifying, expanding, or eliminating the TRID Rule. The Bureau does note that while these comments will be informative, the assessment is not necessarily the first step to a subsequent rulemaking. Comments in response to the Bureau’s TRID assessment plan must be submitted by January 20, 2020. MBA will prepare a response to the Bureau’s RFI.

Capital markets

Looking at rates from Monday, U.S. Treasuries (but not so much MBS) reclaimed some recent losses to open the week on the back of mixed data out of Asia and positive data out of Europe. Reports have the Chinese government scheduled to increase penalties for intellectual property infringement, a positive step toward reaching a partial trade deal. That optimism was offset by the People’s Bank of China releasing its financial stability report, which noted that the country’s economy is facing bigger downward pressures and is unable to eliminate potential risks in the near term. Separately, Japan’s September Leading Index missed expectations. Out of Europe, European Central Bank chief economist Lane said that current ECB policy is positioned for an improvement in overall conditions over the next year or two. Fitch affirmed Portugal’s BBB rating and Austria’s AA+ rating, while Germany had a series of positive business indices. A heavy domestic calendar the next few days should have a larger effect on rates.

 

With the Thanksgiving holiday Thursday and early close Wednesday, today sees a very busy economic calendar. We already have seen Advance October goods trade balance (down to $66.53 billion), Advance October Retail & Wholesale Inventories (+.3%, +.2% respectively), and the Philadelphia Fed nonmanufacturing survey for November.

 

Later this morning brings a laundry list: the September FHFA Housing Price Index, September S&P Case-Shiller Home Price Index, October New Home Sales, November Consumer Confidence, the Richmond Fed surveys, and the Dallas Fed Texas services index for November. Additionally, Treasury auctions $41 billion 5-year notes at a closing time of 1:00pm, the same time that Fed Governor Brainard will speak, and an hour before the Fed will release the minutes from the latest discount rate meetings. We begin the day with Agency MBS prices better by a few ticks and the 10-year yielding 1.74 percent after closing yesterday -1 bp to 1.76 percent.

This Thursday don’t fall for the ol’ pregnant turkey prank!

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, “Fannie & Freddie: A Snapshot” 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.)

Nov. 25: Legal, Sales & Ops mgt., LO, AE jobs; non-QM products; customer experience trends

An LO from Wyoming recently reminded me that, “At the end of the day we sell a product driven by rates.” And we may be at, or near, these rates for a while, so I hope you’re happy with them (and have great service and solid products to back them up). Federal Reserve Bank of New York President John Williams recently said that the central bank is not set on predetermined policy on interest rates in coming months and that “the key thing is we’re not locked into any specific decision.” The Fed is satisfied with monetary policy at the moment, Williams said, and the economy is in a good position. So U.S. mortgage rates could very well chop around in the range we’ve been in for several months already, despite a lot of jawboning about economic news every week.

Employment

A Mid-Atlantic Mortgage Company is looking for an experienced Underwriting Manager. Responsibilities include overseeing the department to ensure all mortgage transactions are underwritten based on the guidelines in a timely manner and meeting commitment dates and closing dates. Collaborate with management team to create, revise and implement policies and procedures. Hire, develop and manage their team. Must have knowledge of Encompass, at least 10 years’ experience in underwriting (3 years’ experience as an underwriting manager) and knowledge of all products and guidelines. Confidential notes of interest should be sent to Chrisman LLC’s Anjelica Nixt for forwarding.

A rapidly growing direct Non-QM Lender headquartered in FL is seeking to hire experienced Sales Manager and Team Leads. The company has a large portfolio of innovative Non-QM products and a diverse team of experts equipped with cutting edge loan origination technology. Management is looking for candidates that can demonstrate extensive knowledge of mortgage wholesale market, strong analytical background, and the ability to lead and manage sales team. “There is a tremendous opportunity with our company as you can be one of the first in your area to procure accounts and represent us to potential mortgage brokers”. Please email resume to Chrisman LLC’s Anjelica Nixt for forwarding; specify opportunity.

Plaza Home Mortgage is looking for superstar Account Executives. “What if you could step into an established wholesale territory and book of business and offer your clients a can’t-miss program line-up, including; Renovation, Non-QM, One-Time Close Construction-to-Permanent, and Reverse, best-in-class service, technology to make their life easier, and free industry and program education, just to name a few perks? Do you think you would be successful? Or do you KNOW you would be? If you KNOW you would be, then Plaza Home Mortgage may have just the spot for you covering our established market and existing client base in the upper Midwest states, based out of our Chicago branch office. Plaza has been in the business for nearly 20 years and is one of the nation’s leading third-party originators. We are looking for an exceptional salesperson for our growing team of Account Executives and will provide the support and tools you need make an impact and drive success in this market. If interested, contact David Loch (708.408.8448).

Mortgage Investors Group has opened its first branch in Georgia as part of its continuing efforts to expand its mortgage lending presence across the Southeast. The opening of the Alpharetta branch marks the Knoxville-based company’s first step to expand its retail presence outside the state of Tennessee, where it has grown over its 30-year history to become a respected residential mortgage lender among industry peers. Branch Manager Andrew Denham said the opening of the Alpharetta office marks the beginning of a journey towards MIG becoming a household name among Georgia homebuyers seeking customer-focused mortgage lending services from knowledgeable loan officers.

And in February MIG hired Gary Royal to oversee the growth of its retail presence in select markets across the Southeast. “The North Fulton/South Forsyth area represents a great opportunity for MIG with both new construction and resale,” Gary said. “With our primary mission to always do what is right, we will provide an exceptional customer experience for everyone. From the first-time homebuyer to those looking for their dream home, MIG will be there every step of the way.” Interested in learning more about joining the MIG team? Schedule a call with Gary Royal here.

Indecomm, a leading provider of mortgage automation, outsourcing, and business services for the US mortgage industry, is hiring a Senior Counsel/Assistant General Counsel to work out of the Charlotte, NC or New York/New Jersey office. In addition to general corporate legal responsibilities, this senior attorney will be the legal point of contact on contracts and assigned projects supporting sales and revenue generation agreements. For a full description of the position and its duties, visit https://mortgage.indecomm.net/job_post/senior-counsel-assistant-general-counsel-position/ or email Indecomm for more information.

Lender products & services

Galton’s new Prime Jumbo Program is one of the most comprehensive in the industry with many unique features including LTV’s to 95% (with unlimited cash out), non-warrantable condos, Co-ops, 30- and 40-year IO options, and NOO (up to 85% LTV), all on loan amounts down to $100,000. Both Fixed and ARM products available. With the addition of the Jumbo product, Galton rounds out their product suite, making it one of the most robust in the Non-Agency space. With Jumbo, Expanded Prime, Streamlined, and Alternative Doc programs, Galton continues to be a leading one stop shop for Non-Agency options. Together with this industry leading product set, Galton offers highly competitive pricing, especially on higher LTVs, Purchase transactions, NOO, 2-4-unit properties, and low DTI loans. Please visit Galtonfunding.com/contact-us/ and contact one of Galton’s Business Development Mangers to learn more today.

Caliber Home Loans, Inc. celebrates the season of gratitude by offering Wholesale Business Partners a New Fall Pricing Special now through Wednesday, November 27th. This applies to all new locks on conventional and government loan products locked between November 19 – 27, 2019.  When you lock your next loan through the H2O platform or through the easy-to-use H2O mobile app, you will see the price improvements as loan level adjustments. Don’t miss out on this great special! Approved business partners can call your dedicated Caliber Wholesale Account Executive with your loan scenarios or email newclientinquiry@caliberhomeloans.com to get connected to a Caliber Rep in your area.

The customer is king, whether a borrower or a lender

How can lenders get their customer experience vision to catch fire throughout their entire organization? In his November MortgageSAT Tip, STRATMOR’s MortgageSAT Director Mike Seminari looks at two factors that foster buy-in of a shared vision: awareness and accountability. “One of our lenders identified a loan officer who had asked for the same documents multiple times on 28 of her last 45 loans, costing her 52 Net Promoter Score points and a lot of referrals,” says Seminari. “What’s interesting is that the loan officer had no idea the customers were unhappy. Multiply this type of situation across a company’s loan officer base and the detrimental impact of ‘lack of awareness’ looms large.” Seminari offers three suggestions for driving your customer experience vision to completion in “Translating Customer Experience Vision From Leadership to Loan Officer.”

Intelli-Mortgage is a pre-packaged Mortgage Data to Decision Manager for the mortgage industry that integrates data from your loan origination, accounting, and other source systems and provides mortgage specific key performance indicators (KPIs) via integrated dashboards, scorecards, alerts, and robust analytics using the combination of the latest state of the art technologies: Artificial Intelligence, Deep Learning, Machine Learning and neural networks !!! Click here to contact.

Wells Fargo Funding updated measurement periods for Non-Conforming PerformanceWorksSM to allow increased time to fund and eliminate evaluation period overlap. The changes are effective with the Q1 benefit quarter and appear in the October progress reports.

Angel Oak Mortgage Solutions recently announced major improvements to the process of submitting loan conditions. Changes include an improved screen, documents uploaded directly to the condition, no more missing conditions, and a comment section for the underwriter to explain why a condition was not cleared. Instructions and pictures are available in a downloadable PDF.

Avenu Inc., creators of the IntroLend transactional convergence platform, made to empower home buyers, agents, and lenders, announced the official launch of its platform with RE/MAX Associates Utah. The platform has been incorporated for all RE/MAX Associates team members across the state to serve home buyers better while transforming the monetization model for the agents. The company refers to the RESPA-compliant, Affiliated Business Arrangement-Third Party Origination platform, as Transactional Convergence. Moving the agents from a single-monetization event, i.e., sales commission, to developing new services they can now provide their valued client while at the same time generating new revenue flows from these services.

Mid America Mortgage, Inc. has completed the transition of its servicing operations to its newly formed in-house servicing department. As of November 4 Mid America’s national servicing portfolio, which currently comprises more than 35,000 loans from across the Mid America family of brands, will be managed by an internal staff of approximately 40 employees located in the firm’s Addison, Texas headquarters.

Capital markets

Odds & ends: The PennyMac Correspondent Group has posted an announcement: 19-57: New Bulk Bid Tape Field – Number of Borrowers. And Redwood Trust closed its first single-family rental securitization since its acquisition of CoreVest (it was CoreVest’s tenth securitization since 2015). And Mr. Cooper’s Hybrid AOT is now available as a bid option for Delegated transactions through MOXI – Mortgage Originations Xpress Interface. During the loan submission process, Hybrid AOT loans can be grouped together on one tape or indicated individually.

 

U.S. Treasuries ended the week with a slight curve flattening as markets received a few reminders of slowing global growth via contractionary Australian, Japanese, and eurozone PMIs. The session also saw optimistic remarks from General Secretary Xi regarding a U.S. / China phase one deal, saying that he wants the partial trade deal with the U.S. to be built “on the basis of mutual respect and equality.” President Trump was asked during a morning interview on FOX whether he will sign the Hong Kong Human Rights and Democracy Act, which was passed with overwhelming Congressional support, but the president refused to provide a direct answer. Instead, he said “I stand with Hong Kong, I stand with freedom, I stand with all the things we want to do.” Six weeks after Trump declared he had just about secured a partial end to his trade war with China, he still appears to have fundamental disagreements with Xi. Domestic releases saw the final November reading for the University of Michigan Consumer Sentiment Index beating expectations, suggesting consumer spending activity should remain supportive for the U.S. economy.

Keeping things in perspective for the entire week, the economic data was once again mixed, painting a picture of a global economy that’s slowing or stalled in some cases. The Purchasing Managers’ Index for the Eurozone, the world’s largest trading block, was at 50.3. In Japan, the index showed contracting conditions for the seventh straight month and the index showed contraction in Australia as well. Back Stateside, the Conference Board’s Leading Economic Index saw its third consecutive monthly decline. On the bright side, both housing starts and building permits increased in October. Both single and multifamily projects saw increases. Existing home sales increased last month and inventory fell to a tight 3.9 months’ worth. According to the National Association of Realtors, the median sales price of an existing home increased 6.2 percent over the last twelve months to $270,900. This was the 92nd successive month of year-over-year gains. Mortgage purchase applications increased 6.7 percent for the week ending November 15 while refinance application fell 7.7 percent. Mortgage rates for 30-year fixed continue to hover around the 4 percent level.

This holiday-shortened, month-end week sees a very busy calendar in terms of data and supply ahead of Thursday’s Thanksgiving holiday with an early close on Friday (and a de facto one on Wednesday). Key releases include Advance October Retail Inventories and Wholesale Inventories, the September FHFA Housing Price Index, September S&P Case-Shiller Home Price Index, and October New Home Sales on Tuesday, October Personal Income and Spending, the PCE Price Index, Q3 GDP — Second Estimate, October Durable Orders, October Pending Home Sales, and the December Fed Beige Book on Wednesday, and November Chicago PMI to close the week.

Today’s calendar began with the Chicago Fed National Activity Index for October. Next up will be the Dallas Fed Texas manufacturing index before $40 billion 2-year Treasury note auction results this afternoon. With regards to MBS, the NY Fed will conduct a sizable UMBS30 FedTrade operation when they purchase up to $1.579 billion 3 percent ($1.15 billion) and 3.5 percent ($429 million). The lone scheduled Fed speak is Chair Powell, who will speak tonight. After closing Friday unchanged at 1.77 percent, we begin today with the 10-year yielding 1.78 percent and Agency MBS prices down/worse a few ticks (32nds) versus Friday night.

(Thanks to Tony P. for this one.)

A loan officer walks into the psychiatrists office wearing nothing but Saran Wrap.  The psychiatrist takes one look at him and says, “I can clearly see you’re nuts”!

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, “Fannie & Freddie: A Snapshot” 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.)