Oct. 22: Controller job; appraisal, broker, construction products; vendor news

I am often asked about a primer for capital markets. Much of the training is “on the job,” but for anyone serious about learning the topic, here’s a good place to start. How about a little learnin’ about the stock market, despite its waning popularity? (About 3,600 firms were listed on U.S. stock exchanges at the end of 2017, down more than half from 1997.) How did the bull become associated with rising stock prices? Some say it’s because the bull attacks by swinging its horns upward. But the association of bears with falling prices came first, thanks to a practice in 17th-century fur trading. Middlemen sometimes sold bearskins they had not yet bought from hunters, betting that the price would drop. It seems to be an early form of what is now known as naked short selling. And the bull was once an obvious partner to the bear, because of the enormous popularity of “baiting” them with trained dogs or beatings. Britain’s Parliament banned the practice in 1835, thankfully, but the bull and bear are still battling it out on the stock market

Jobs

“If you prefer working from home and to have a daily commute as short as the distance between your bed and your desk, have the CPA designation and have extensive mortgage banking experience, you want to consider our open position! We are a retail-only independent mortgage lender with annual origination of about $5B and have our agency approvals, offering QM, non-QM jumbo, conventional, government and state bond loan programs over 40+ states. You, as our Controller will be responsible managing a high-performing and dedicated team of 14 accountants. As part of your daily activities, you will be providing financial oversight, insight, direction to timely financial reporting with emphasis on conformity, compliance with US GAAP and Sarbanes-Oxley and contribute to our ongoing projects.  Experience with LoanVision is a huge plus. There is no reason to wait, contact Chrisman LLC’s Anjelica Nixt for more information!”

Lender products & services

“Our decision to partner with Optimal Blue has exceeded all of our expectations,” said Joe Senecal, Treasurer of SEFCU Mortgage Services. In a recent case study, Senecal explains how Optimal Blue’s End-to-End Secondary Marketing Platform, real-time connectivity across multiple mortgage technology systems, streamlined mortgage servicing rights (MSR) valuations, and unique executive data insights play a critical role in SEFCU Mortgage Services’ recent success. Contact Optimal Blue to discover the real-time integrations and functional depth that can significantly impact bottom line results.

Join National Mortgage Professional Magazine on Thursday, October 24 at 12 pm ET / 9 am PT for nmp’s webinar “Own your market with non-QM.” Originations are expected to be lower next year overall and the refinance market is expected to decline. Lenders will be forced to find new ways to produce volume. The non-agency market will continue to thrive despite a decreasing real estate market with growth potential of over $150 billion in annual originations expected. Find out how you can grow your business and help underserved Americans find the mortgage solution that fits their needs for the home of their dreams. Everyone wins!

You can register here.

By now you’ve probably heard about Phil Shoemaker’s presentation at AIME’s Fuse event in Vegas. Home Point Financial’s Customer For Life program is expanding to really keep brokers in front of their customers. Keeping over 95% of loans in-house for servicing means they have 50 borrower touch points a year, and Home Point is building a system to get brokers on the phone with borrowers reaching out. All of this will connect to a proprietary end-to-end servicing platform so borrowers are taken care of from the day their loan begins until they reach out for their next mortgage needs, and beyond. Not only that, Home Point is creating a recapture scorecard to allow its broker partners to see how much they’re keeping for all their hard work! Don’t wait to partner with Home Point Financial: click here.

“If this challenging marketing environment has you searching for answers on improving your profitability and turn-times, why not tap into an AMC whose valuation turn-time averages 5.6 business days nationally, and as low as 4.4 in metro areas? United States Appraisals is a future-focused AMC that delivers the confidence clients desire in the valuation process. We value every client relationship by providing superior customer service, diligent quality assurance and compliance, and the most precise technology-driven results available in the industry. Our #1 asset is our staff and appraiser vendors who we believe are the best in the industry. Focus less on dealing with valuation issues and spend more time on other actions that can positively impact your performance with United States Appraisals’ Appraisal Modernization Program (A.M.P.) Contact our Director of National Sales Brett Berg, to learn more.”

Get ready to re-imagine how sales and marketing work together to drive growth. Connect, engage and learn with leading financial brands at Total Expert’s second annual road show, Accelerate 2020. Join us at one of our next two stops in Chicago on Nov. 12 or New York City on Nov. 14 as we explore best practices to drive ROI and look at the latest technology trends in the industry. You’ll have the chance to network with some of the top lenders in the country and walk away with new strategies to modernize your sales and marketing processes and create customers for life. Get ready for a day of thought leadership, actionable insights and winning strategies. Space is limited, so register today and position your organization for success in 2020. See you there!

GSF Mortgage Corporation (GSF) will be attending the Mortgage Bankers Association’s Annual Convention & Expo Oct. 27-30 in Austin, Texas. Robert Stephens, SVP of Sales for Construction Lending Division will be onsite discussing the benefits of Single Close Construction loans over traditional construction loans. Single Close Construction loan programs offered are, FHA-96.5% LTV, USDA-100% LTV, VA-100% LTV, and Conventional up to 95% LTV. All programs are single settlement without the need to requalify the borrower after the initial closing. Our construction management team has the experience and ability to review and approve the project budget, plans, specifications, inspections, and disbursements of all draws in-house—adding an additional layer of service and protection for our partners. To learn how you can incorporate Single Close Construction loans into your programs, schedule a meeting and email Robert.

Imagine receiving your borrower’s entire underwriting package within minutes (instead of days) of a submitted loan application. With Maxwell’s digital mortgage platform, lenders are getting documents 73% faster with their FileFetch technology which connects to over 1,300 financial institutions for increased efficiency and a better borrower experience. This, coupled with their already impressive, customizable loan app, borrower portal, task list, and integration, drive real performance. Loans in Maxwell close more than 45% faster than the national average. To learn more and start using Maxwell today, visit www.himaxwell.com and request a demo today.

There are many advantages of tapping home equity, and it’s important to feature the benefits that are most relevant to your audience in your outreach. First-time homeowners have different goals and priorities than those planning for retirement. Blend’s ebook outlines how to craft a personalized home equity strategy that effectively engages your customers. Download it here.

Vendors at play

There’s a lot to keep track of out there! Let’s play some catch up.

MISMO®, the mortgage industry’s standards organization, released Remote Online Notarization (RON) standards which allow the use of audio-visual communication devices to notarize documents in a virtual online environment. MISMO’s RON standards were updated to include language to preclude the storage of personally identifiable information. With this revision, the RON standards have been released for a public comment period that ended. The revised MISMO RON standards are available on mismo.org. An additional version of the updated RON standards is available with revised text highlighted in yellow.

The Momentifi Sales Productivity App “simplifies daily follow-up tasks with borrowers and referral partners so that you don’t lose deals to your competition. Simple to use, key features and benefits include ability to send personalized videos, emails and text messages to borrowers and referral partners directly from the App. Every communication gets automatically logged for compliance. It also comes with built-in follow-up templates and $3,589 worth of extra bonuses. Sign up for a free 30-day trial.

DocMagic’s new Mobile Application, LoanMagic™, provided free to all DocMagic customers, leverages a powerful backend platform that provides full interoperability with DocMagic solutions, as well as other third-party mortgage software. Its core functionality includes real-time loan status, document uploads, eSigning, integrated messaging, task management, push notifications and more. “The App leverages DocMagic’s eVault to ensure that every transaction is logged and securely stored, and it uses a ‘gamified’ design that encourages borrower engagement by making the process of fulfilling conditions faster, easier and more entertaining for the borrower. LoanMagic’s primary differentiator is at its backend [Editor’s note: their term, not mine; reminds me of some folks I know.], which allows the mobile app to provide an unprecedented level of interoperability with numerous relevant technologies.

Optimal Blue launched support for Non-QM and Expanded Criteria loans. With monthly lock volume exceeding $1 billion, a threshold 2.5 times the volume experienced just 18 months earlier, Optimal Blue is observing significant market growth in this area. Designed to drive pricing accuracy and precision, Optimal Blue now supports close to 20 granular filters for income verification, payment history, debt consolidation, bankruptcy, and more. In addition, specific housing events, financial outcomes, and other user-defined selections are evaluated. Optimal Blue lenders can now take advantage of the Non-QM and Expanded Guidelines products for +60 leading investors.

Capital markets

Economic data from last week continues to soften, causing many to expect another reduction in the Fed Funds rate sooner rather than later. China released third quarter GDP figures which showed its economy expanded at the slowest annual pace since 1992. While there are those who suspect China’s reporting is not up to the same standards as other developed countries, the decline is significant, nonetheless. Back stateside, leading economic indicators declined by 0.1 percent in September due to ongoing weakness in the manufacturing sector. This marks the second consecutive month of declines for this index. Retail sales were also weaker than expected in September; falling 0.3 percent despite low unemployment. Motor vehicle sales declined on a dollar basis, however unit sales increased. Manufacturing output was also down during the month as the production stoppage at General Motors weighed on the data. Housing starts declined to a 1,256,000 annual rate due to a 28.2 percent decline in multifamily starts. Mortgage applications were down for the second straight week although applications or both purchase and refinance are up on a year over year basis.

Despite the soft news last week, U.S. Treasuries ended yesterday with losses across the curve, including the 10-year yield closing at 1.79 percent, amid positive signs on trade talks. It was reported that proposed December tariffs could be taken off if phase one of talks go well. President Trump commented that the trade deal was coming along “great” with the phase two part of the deal in many ways easier than phase one. Trade Representative Lighthizer said the goal is to have the phase one part of the deal ready by mid-November.

Additionally, equities were moved by favorable earnings expectations from Wall Street. Risk appetite to open the week wasn’t thrown off following the UK parliament’s postponing of a vote over the weekend for Prime Minister Johnson’s Brexit plan, which forced him to ask the EU for a three-month extension he did not want. Parliament was expected to vote on the latest Brexit deal on Saturday, but instead it passed a motion forcing the prime minister to request another Brexit extension from the EU. EU officials have indicated that an extension will be granted if the deal doesn’t pass by October 31. Prime Minister Johnson still has a surprisingly good chance of getting a deal through Parliament this week, with Parliament scheduled to vote on the deal today, and if it passes it will see a series of additional votes.

Speaking of today, the economic calendar is relatively light. There will be an auction of $40 billion 2-year notes. Economic news consists of Philly Fed non-manufacturing surveys for October, the Richmond Fed manufacturing and services indexes for October, and existing home sales for September. We begin the day with the 10-year yield at 1.78% and Agency MBS prices better by .125.

The best of Marcus Lam (part 2 of 5)

200 years ago, people would never have guessed that humans in the future would communicate by silently tapping on glass.

“Good luck” is probably one of the most situational phrases out there. For example it’s nice to hear from your blackjack dealer but probably terrifying to hear from your waiter.

If you could hear people’s thoughts, the gym would sound like angry pre-school: lots of people straining hard to count to a relatively low number.

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, “How Productive is Your Origination Team?” 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.)

Oct. 21: AE jobs; non-QM, affordable housing, income products; vendor news; what is driving rates

Great MLOs keep up on events not only impacting their loans but on events impacting the everyone else’s loans as well. For example, the Supreme Court has agreed to rule on the constitutionality of the CFPB’s structure. Saturday’s commentary discussed new developments for the transition away from LIBOR and toward SOFR. For any clients with adjustable rate mortgages the Treasury Department and the IRS issued proposed regulations to help taxpayers avoid negative tax consequences in the transition away from the London Interbank Offered Rate and other interbank rates. And many companies breathed a sigh of relief last week when FASB held a board meeting to discuss the comment letters surrounding the proposed extension to the adoption date of CECL. The board unanimously voted to adopt the language in the exposure draft, which extends the effective date of CECL to 1/1/2023 for many calendar year end entities.

Jobs & products

AmeriHome will be out in full force at next week’s MBA Annual Convention & Expo 2019! With its new Income Flex Non-QM Program, enhanced Core Jumbo program, new BE rate sheet, Non-Delegated Close-on-Time Commitment, and more exciting updates to share, it’s a great time to find out what AmeriHome can do for you. If you’re a bank looking to fulfill CRA requirements, AmeriHome can help with that too! Reach out to the AmeriHome sales team at CLsales@amerihome.com to schedule a meeting, and follow AmeriHome Correspondent on LinkedIn to stay up to date on all of their new products, enhancements, events, job opportunities, and more!

Lender products and services

From Service 1st’s CEO, Curtis Knuth, “Rob, a big thank you to your newsletter team as we’ve received a great response to our product launch at MBA Annual. To your readers that didn’t see, we’re launching a simple income determination solution saving FTEs 40 mins per loan file. e-Mail info@srv1st.com to schedule last minute meetings. Lastly, we’re launching this same solution through NCS to our preferred Alliance Partner channel at the NCRA Annual Conference in Savannah, GA; Nov 5-7. To schedule meetings @ NCRA, please e-mail me directly at cknuth@ncstrv.com.”

Lending solutions provider Data Facts recently announced it is offering a webinar to examine why you should really be taking a second look at Fannie Mae’s Day 1 Certainty program. Data Facts will uncover how it’s been changing the game for lenders, and why it’s never been easier to implement D1C for your business. The free webinar is on Thursday, October 24that 9am CT. Click here to save your seat. Keep Data Facts in mind as a trusted partner you can rely on for credit reports, fraud products, tax return and social security verifications, flood certs, lead gen products, and more. Talk with a live person and take advantage of their personalized support. Offering a variety of seamless LOS integrations (Encompass, Calyx, Byte, etc.) and a 100% US based customer support team, helps lending clients close more loans, faster and easier.

Take charge of your 2020 production and profitability numbers by getting the book Conquering Shifts into the hands of all of your originators as part of your business planning. There are several reasons I recommend this book. First, it provides a road map to origination success, second it provides numerous examples of mortgage originators who made the necessary shifts in their businesses to grow and win. Mike Hardwick, Churchill Mortgage. The authors, Cindy Douglas and Kathleen Heck have done a masterful job of both selecting and interviewing a variety of experts from different regions. What sets this book apart from others is 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 Conquering shifts is a must readDiscount pricing ends October 24.

Chenoa Fund: Helping Homebuyers Overcome Obstacles – Homeownership may be the cornerstone of the American Dream, but achieving it isn’t easy. Even couples with steady jobs and solid incomes sometimes struggle to secure a mortgage, perhaps because of past medical or financial difficulties or high rents that prevent them from accumulating a down payment. State housing programs are intended to support such borrowers with down payment help or other assistance, but many carry restrictions that lock out qualified buyers. Some limit assistance to lower incomes, while others help only first-time buyers. Many frustrated borrowers have found an ally in the Chenoa Fund. With reasonable credit controls and borrower education through a HUD-approved provider, Chenoa Fund programs are helping thousands of buyers escape the renters’ trap and buy homes. The Chenoa Fund is administered by CBC Mortgage Agency, whose mission is to increase affordable, sustainable homeownership across the U.S.

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

Exciting things are happening at NewRez! With the acquisition of Ditech into the NewRez family of companies now complete, we combine the expertise and capabilities of the organizations to bring more than ever to our clients. NewRez Correspondent’s national team remains focused on GSE and government business, now under the leadership of John Davis. Lisa Schreiber is leading the growth of a new, national NewRez Non-QM team, delivering more product choices and technology solutions. We look forward to seeing you at the MBA to share more about how we can support your success – find us in the Capital Ballroom at the Omni Austin Hotel Downtown. To make an appointment in advance, contact mba2019@newrez.com.

Vendor vestibules

With hundreds of lenders vying or business from lenders, competition is fierce. Let’s take a random sample and play some catch up on who is doing what out there.

Appraisal management software developer, Anow has announced the release of Anow Enterprise, a cloud software suite that connects individual appraisal companies to form service networks that can efficiently provide localized service at scale. Anow Enterprise’s order management framework enables a true peer-to-peer system, where any participant in the network can originate an appraisal order and route it to others.

Unison launched a home volatility index showing that American homes, considered a bedrock asset and the key anchor of many Americans’ financial portfolios and retirement plans, are as volatile in value as a stock market index. New homeowners are particularly vulnerable to housing market risk, as they typically have the highest proportion of net worth locked in their home and are also the people taking on the most mortgage debt. For details, read the full Unison Volatility Index Whitepaper.

First Allegiance is offering to develop property inspections to meet the needs of its clients. Inspections include, but are not limited to, General Inspections, Occupancy Determinations, Property Condition Reports, Hazard, Insurance, Damage- storm, accident, other, Contractor Inspections- Quality control and more.

Fidelity National Financials’ new Digital Closing Hub is now open. This resource, available to FNF title agents nationwide, was created as the company continues to lead the way on the ever-evolving topic of digital closings. This Digital Closing Hub is another step in the plan to create a better experience for consumers wanting to take advantage of full and hybrid digital real estate closings. It is education-focused and will ensure that FNF’s independent agents have the knowledge and tools they need to utilize everything that adopting digital closings can give them and their customers.

Purchasing real estate auction properties just got easier for buyers with the Hubzu® free mobile app and SMS notifications. Buyers can find detailed property information, photos, receive auction alerts and place bids on properties. Click to learn more.

NRL Mortgage is now offering FormFree’s AccountChek automated asset verification to loan applicants. Bolstering borrower experience with AccountChek’s convenient and secure electronic asset verification, AccountChek gives borrowers a convenient and secure way to verify their assets without having to print, scan or fax bank statements.

Capital markets

Will the US consumer continue to spend heading into the fourth quarter? Last week we saw the first decline in retail sales in seven months due in part to a sharp decline in auto sales. Consumer confidence has stalled and job growth is slowing, albeit the unemployment rate is a very low 3.5 percent. With personal consumption roughly 70 percent of GDP, a slowdown in spending would have a significant impact on growth in the coming quarters. Industrial and manufacturing production is already seeing a slowdown, contracting 0.4 percent and o.5 percent respectively in September. While part of the decline was due to the strike at GM, manufacturing output excluding auto production was still down for the month and has been down six of nine months this year. One bright spot in the economy is single family housing starts, which rose for the fourth consecutive month. Additionally home builder confidence was at a 20-month high in September. Still, housing by itself only accounts for about 4 percent of the economy and the slowdowns in consumption and manufacturing have driven many market participants to expect a 25-basis point rate cut to the fed funds rate following the FOMC meeting at the end of the month.

Prime Minister Boris Johnson finally managed a new Brexit deal with the European Union last week, three months after his “do or die” promise to get Britain out of the E.U. by the Oct. 31 deadline. Markets were temporarily buoyed by investors’ optimism that the plan could actually get a nod from Parliament, but British lawmakers rejected Mr. Johnson’s proposal in a rare Saturday session / vote, bringing the entire mess back to square one. Three possibilities remain: a no-deal exit from the European Union, which could be economically disastrous, a second referendum on whether to leave at all, or a general election that could put new leaders in power. In addition to the uncertainty surrounding Brexit, there have been several notable revolts and protests around the world, forcing Treasury yields lower in the process.

 

Remember, U.S. rates usually go down the more uncertainty in the world/markets, and vice versa. There are rallies & demonstrations around the world grabbing headlines and causing unrest: More than 500k people rallied in Barcelona, Spain, Chile declared a state of emergency after a transportation fare increase set off violence and looting, Lebanese protesters marched in Beirut and other cities calling for the government’s overthrow, Haiti has seen weeks of violent demonstrations and left streets across the country barricaded because of a power struggle between its president and a surging opposition movement, and protestors continue to march in Hong Kong despite an official ban and attacks on the march promoters.

 

U.S. Treasuries ended last week on a mostly higher note, trading in “risk-off” fashion, though it was a dull session in general. Abroad, China reported its weakest year-over-year GDP growth rate in nearly three decades, while domestically, the Conference Board’s Leading Economic Index declined in September, abetting the narrative of a developing growth slowdown for the U.S. economy.

 

Ahead of this week’s FOMC blackout period, markets received some Fed speak on Friday. Fed Vice Chair Clarida affirmed the U.S. economy remains in a good place, despite “evident risks.” Kansas City Fed President George said that her assessment of the economy does not call for a rate cut at this time, though this came after she voted against the rate cut in September. The fed funds futures market currently sees nearly a 90 percent implied likelihood of a rate cut being announced on October 31. This week brings central bank decisions from the Riksbank on Wednesday and the ECB and Norges Bank on Thursday.

 

Today is a light economic calendar, with no economic data scheduled for release. However, markets will receive remarks from Fed Governor Bowman, in addition to the results of a joint BoE, FRB, and ECB conference. Tomorrow brings September Existing Home Sales, before the midweek session reveals the August FHFA Housing Price Index. Thursday sees September Durable Orders and September New Home Sales, before the week closes with a Final October Michigan Consumer Sentiment Survey. We begin today with the 10-year yielding 1.77% after closing last week at 1.75 percent and Agency MBS prices are worse/down a few ticks.

The best of Marcus Lam (part 1 of 5)

People are totally fine with eating the same exact thing for breakfast every day, but consider it too repetitive to have the same thing for dinner two nights in a row.

The only thing scarier than finding extraterrestrial alien life on another planet would be to find other humans on another planet.

Adulthood is finally making enough money to do the things you’ve always wanted, but can’t because you have to spend it on things you never knew you needed.

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, “How Productive is Your Origination Team?” 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.)

Oct. 19: Letters on electronic signatures, cyber threats, LOS, staying abreast on compliance; SOFR transition updates

Greetings from London. Parliament will be “sitting” on a Saturday for the first time in 37 years, and I decided to come here to watch the Brexit vote. Okay, I am here, but it is just a coincidence that this vote is happening today. The streets are packed with protestors and people watching the protesters. Prime Minister Boris Johnson spent yesterday trying to convince MPs to support his Brexit deal ahead of a close vote. The Ministers of Parliament will gather “in the Commons” for the main debate and then the vote on the deal. The issue is more complicated than GSE reform (now titled “housing finance reform” in case you missed that memo) so I am not going to go into the details, but this place is certainly buzzing over it. If Brexit occurs without a transition agreement, UK financial-services firms could end up in regulatory limbo as EU regulation ceases but the UK hasn’t enacted legislation to fill the void. The takeaway for the U.S. mortgage market? Worldwide markets never like uncertainty.

Before we jump in, congrats to Richard Payne, a new board member of Wells Fargo. (Yes, another tough name to grow up with.) And along those lines, how about TMC’s blog with the 25 top mortgage names in the biz?

LIBOR transition update: SOFR

FHLBank Chicago has the latest. It would appear that the “liabilities” side of the balance sheet continues to march forward, whereas the “asset” side, namely lenders converting adjustable rate programs and documents for loans, has lagged. I’ve received comments about eventual potential lawsuits from borrowers placed into a LIBOR-based index despite the lender knowing it is sunsetting. But that is a question for your attorney.

If you’d like, here is a SOFR Primer by SIFMA Insights. “The publication of LIBOR is not guaranteed beyond 2021. Much work lies ahead in order to implement a successful reference rate change, and time is of the essence. In this primer, SIFMA Insights provides an overview of the LIBOR transition, as well as an actionable checklist, with a focus on the proposed US alternative reference rate, Secured Overnight Financing Rate (SOFR).

Moody’s Investor Service reports that, “The credit quality of certain structured finance sectors would face higher risks from certain adverse cash flow changes that are possible with the potential discontinuation of London Interbank Offered Rates (Libor). Instruments in certain sectors, including US student loan asset-backed securities ABS), UK residential mortgage-backed securities (RMBS), and US collateralized loan obligations (CLOs), would be more susceptible. The discontinuation of Libor could result in notable reductions in payments on transaction assets relative to their liabilities via fixed/floating rate mismatches, significant new basis risk, or disruptions from embedded derivatives.”

Yet the Bank of England says Libor’s continued use poses a financial stability risk and is considering introducing policy tools in Q4 to accelerate the transition. The BoE says the tools “could be deployed by authorities to reduce the stock of legacy Libor contracts to an irreducible minimum ahead of end-2021.”

The Bank of China sold $350 million worth of SOFR-based three-year floating rate bonds, the first offering of its kind from Asia’s private sector. Bank executives say the deal should help open the door for other borrowers to enter the market.

Libor-based derivatives contracts should include language allowing an alternate rate to be substituted automatically if Libor is officially declared to be unrepresentative of the underlying market, said David Bowman, a senior adviser to the Federal Reserve board of governors who is helping lead the transition away from Libor.

Bank of Japan deputy governor Masayoshi Amamiya called for concerted collective action on the transition away from Libor. He told ASIFMA’s annual conference that the discontinuation of Libor is among the “most significant events in global financial history”.

Bank of China’s Hong Kong subsidiary has become the first financial firm to issue financing in China or Hong Kong benchmarked to the US Secured Overnight Financing Rate. The company has not disclosed the client, the counterparty bank or the size of trades.

How’s your loan origination system (LOS)?

 

MortgageBusiness99@gmail.com writes, “Do you have counter party risk with your Loan Origination System? During a recent regulatory exam, we were covering vendor management when a question that never occurred to me was raised which was: ‘If your LOS raised your prices by 100% what you would do?’

“I have always taken vendor management questions with a grain of salt. What if Experian, Equifax and Transunion did anything? Like failed a cyber-security test, increased prices YOY, or sell your prospect data to your competitors? How about ‘all of the above.’ The credit bureaus of course have a monopoly and in time there will be an alternative.

“Changing credit vendors would be simple compared to changing LOS. Changing LOS is no easy job, it can take over a year and require the massive cost of implementation, change of staff and adoption learning curve. I like many others use the industry standard LOS and I like many of my colleagues recently received my renewal with a 25-41% increase. I think they are counting on our inability to act in a collective manner. Quite frankly there is no fear of loss. Are you going to change?

“In addition to the increase that seem to be universal I am getting constant reports from my vendors that they are being squeezed to pay for access to the system. 15% of the revenue generated. Closing agents, appraisers, hedge advisors and CRM. My increase was over $200,000 annually. Considering the number of others, I have corresponded with the increase was ubiquitous and of course blamed on bringing in top talent to make the software more efficient. If memory serve me correctly, they just laid off 10% of their work force. (Reminds me of a guy named Martin Shkreli.) What may we as a group do to protect ourselves? The unfortunate part of being parasite is that the host needs to live.” (Feel free to write to the author, email above, about their opinions.)

Electronic signatures, compliance notes

Occasionally the question comes up whether all states, and Freddie & Fannie, will accept the digital closing and online notary, a great idea. Jeremy Potter has an answer. “Fannie and Freddie simply require the lender to ensure all regulations and compliance are met. So it does go back to state law, if state law allows it, F&F accept it on delivery. All states will accept electronic signatures but not all recording offices are capable of accepting fully electronic docs/data.

“At this point, most states will accept electronically executed and notarized closings but not all states have approved the notary being online instead of in person. 19 states have either gone live with online notary, or have approved it but the effective date is still pending. 4 states are currently considering legislation. The other 27 states have not proposed legislation and do not allow the notary to be entirely online for the closing yet. Many in the industry anticipate the fully online notary (not physically present with the borrower) will take another year or two. The bottom line is that almost all states allow for electronic closings (where notary is presenting the borrower a tablet or computer) but not all recording offices can handle it. Majority of states are still working on passing fully online closing laws.” Thank you, Jeremy!

The Depository Trust & Clearing Corp. has postponed the introduction of its blockchain-based derivatives post-trade system, though it did not set a new date for the release. Reasons for the delay include anticipated Brexit complications and a need for more testing of the trade-information warehouse.

Each state has a different set of laws addressing security breaches. There is a trend, however, toward mimicking California’s set.

“Rob, can you think of any particular site or sites I can have my staff review each day for the latest on compliance, origination issues and legal news?”

Ken Perry, the President/CEO of The Knowledge Coop, suggests, “You may want to join RegList. It’s a free email communication chain that lets you ask and answer questions about compliance matters to a group of compliance people all over the nation. To join the RegList go to https://reglist.org. You can learn a ton there. You can also join the Knowledge Coop as an individual to get all of our content. That can be done here.

And Mike Steer with MQMR ventured, “Many companies subscribe to AllRegs, leverage attorney firms such as Ballard Spahr/K&L Gates/Weiner Brodsky/Alston Bird/ (and other law firms which I’m probably missing) who put out compliance newsletters and news alert notifications, register directly to receive state/FHA/Fannie/Freddie/CFPB updates directly with those respective websites, MBA/state MBA membership announcements if you’re a member, FDIC/OCC and other regulatory updates, and leverage compliance firms, such as MQMR to keep abreast of changes. Attending conferences, such as MBA Legal Issues/MBA RMQA/MBA Compliance/state specific compliance/regulatory conferences and other banking conferences is also good for staying current. Here’s also a free compliance update calendar provided by Aces Armco which I’ve found helpful in terms of aggregation of various changes, and Mortgage Compliance Magazine.”

Steve Spies updated me with, “Rob, I just wanted to let you know after 22 years of leading Fannie Mae’s QC and Risk management efforts I left this summer to start my own risk management consulting practice, SWS Risk Advisory LLC. I recently published an article in Mortgage Compliance Magazine on preventing mortgage origination fraud that I think your readers might really benefit from.”

Which companies have reported security breaches and cybercrimes? Here you go.

And how about a checklist for executives? “11 Steps Executives Should Know to be Prepared for Cyber Threats.”

Researchers found that the Biostar 2’s database was unprotected and unencrypted, granting the security analysts access to 27.8 million records, and 23 gigabytes worth of data. I’d say that those affected are advised to secure and change their passwords, but in this case they’d be fairly hosed: Biostar 2 is a biometric lock system for secure entrances to office buildings and warehouses in 1.5 million locations worldwide, one that uses facial recognition and fingerprints that are inextricably linked to employees as keys. The exposed data included fingerprints, facial photos, facial recognition data, unencrypted passwords, clearances and personal details.

Criminals are finding innovative ways to use technology to target banks, said Colin Bell, chief compliance officer at HSBC Holdings. “We see innovation on the criminal side at a tremendous pace, and there is no question they are using technology against us, and they are doing it in a way that isn’t hampered or harnessed by privacy legislation, cross-border legislation and so on,” he said.

Does your state’s Department of Motor Vehicles do anything with all the “private” information you give them? According to this article, DMVs sell it to private investigators.

Deepfakes, the technique that uses artificial intelligence to perpetuate visual and audio hoaxes, could be the next frontier of lawyer-focused phishing scams, Frank Ready reports. It hasn’t happened yet, but fraudsters could clone the voices of clients or law firm leaders to fake out unsuspecting attorneys who believe they’re talking to the real deal. Gatekeepers who screen calls, like receptionists, make law firm offices tougher targets for scammers, but the rise in attorneys conducting business on their cellphones mean lawyers should keep deepfakes in mind.

“Lexophile” describes those that have a love for words, such as “you can tune a piano, but you can’t tuna fish”, “To write with a broken pencil Is pointless.” An annual competition is held by the New York Times to see who can create the best original lexophile. Recent submissions.

A will is a dead giveaway.

With her marriage, she got a new name and a dress.

Police were summoned to a daycare center where a three-year-old was resisting a rest.

Did you hear about the fellow whose entire left side was cut off? He’s all right 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, “How Productive is Your Origination Team?” 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.)

 

Oct. 18: Sales, MLO, AE jobs; broker, fraud, credit, hedging products; lenders adjust to FHA changes

Here’s a little trivia for you. What does San Francisco have six of that Manhattan has none of? Dirt roads! I don’t know if the cost of maintaining a dirt road is more than that of maintaining a paved road, but I do know that the industry is buzzing about Citi being smacked with a $30 million fine by the Office of the Comptroller of the Currency stemming from violations in relation to the holding period of other real estate owned. Yes, apparently there is a two-year limit on banks maintaining possession of a foreclosed property unless the bank applies for an annual exemption for five years. Past five years and the bank is supposed to sell the property back into the market to prevent available housing inventory from being kept away from would-be homebuyers. I received a few notes supporting the fine, saying stalling keeps someone from obtaining a new home, especially if they don’t take the homeowner off the title/deed. (Editor’s note: How about fining states like New York for dragging their feet for years during the foreclosure process?)

Jobs & changes

Optimal Blue continues to expand and with growth, comes opportunity! The company is actively searching for a SALES SOLUTIONS SPECIALIST – CAPITAL MARKETS, located on the West coast. What is a Sales Solutions Specialists? They are the product experts responsible for delivering specialized product and market expertise to prospective Optimal Blue clients. The ideal candidate is a sales-minded individual with extensive capital markets experience, a detailed understanding of all aspects of secondary marketing, and experience with multiple hedging platforms. This is a great opportunity for an individual to capitalize on the experience and reputation they have built in the mortgage industry. Visit the corporate careers page to learn more about this opportunity and joining the innovative team at Optimal Blue.

Polygon Mortgage is actively hiring purchase-focused Loan Consultants to work as the exclusive lender for Polygon Northwest Homes, the #1 home builder in Oregon and a top home builder in Washington state. Polygon Mortgage is affiliated with ClosingMark Home Loans™ which is one of the fastest growing mortgage lenders in the United States, and provides a superior platform for Loan Consultants looking to grow their purchase volume. “We have everything a Loan Consultant needs to be wildly successful, and our exclusive relationship with Polygon Northwest makes this an extremely attractive opportunity,” said Heidi Iverson, VP Talent Acquisition & Development. Polygon Northwest is also a proud division of William Lyon Homesone of the nation’s largest homebuilders. Contact Heidi Iverson, VP Talent Acquisition & Development to learn more about the positions in Bellevue, WA and Kirkland, OR and other open positions available nationwide within the entire ClosingMark Financial Group.

The Wholesale Lending Production opportunity you’ve been looking for has just found you! We are an expanding over twenty-year old East Coast Regional Wholesale lender adding AE’s and Managers from Connecticut down to Florida. We price strong and we write Agency, Government and Non-QM product. We provide one of the Best Fulfillment Platforms in the Country! This is a great opportunity for confident TPO Professionals who know their customers and value working in an entrepreneurial self-managing environment. Yep, no Call Reports, no Micromanaging, your production writes your success! We got the track and we will support your run! No Overlays, No Hassle, No Nonsense! Contact Scott Karch at 908-293-2218 for more details!

Freddie Mac announced that Frank Nazzaro has been named EVP and chief information officer (CIO) of the company. He is a member of the senior operating committee and reports directly to CEO David Brickman. Frank’s been with Freddie for a year as Chief Technology Officer (CTO) and has been Acting CIO since May 2019.

FormFree announced it has appointed 30-year industry vet Christy Moss, CMB as director of partner relationships to “strengthen and grow industry partnerships and cultivate internal talent as leader of the company’s strategic sales team.”

CrossCountry Mortgage, LLC announced the appointment of Chris Knapp to the position of EVP responsible for recruiting as well as setting and achieving sales and production goals across the country.

Lender services and products

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.

Reminder! Freedom Mortgage Wholesale’s FHA Condo Single Unit Approval program allows for approvals of individual condo units meeting certain eligibility requirements even if the condo project is not FHA approved! Freedom Mortgage Wholesale is the right choice for a fast and easy FHA Condo approval. Relax – we coordinate the collection of all condo project information for you. Additionally, Freedom Mortgage will absorb any fees associated with Condo Questionnaire requests. Join us for FHA Condo Single Unit Approval training.

Going to the MBA Annual? Looking for a long-term strategy on reducing costs and scaling your business? Connect with the team at Sutherland to discuss how we are helping our clients scale and reducing costs by combining Automation with BPO solutions. We can deliver anywhere in the world or in the cloud. If you would like to schedule a meeting, please contact Neil Armstrong.

Lending solutions provider Data Facts recently announced they are offering a webinar to examine why you should really be taking a second look at Fannie Mae’s Day 1 Certainty program. They’ll uncover how it’s been changing the game for lenders, and why it’s never been easier to implement D1C for your business. The free webinar is on Thursday, October 24that 9am CT. Click here to save your seat.

 

Keep Data Facts in mind as a trusted partner you can rely on for credit reports, fraud products, tax return and social security verifications, flood certs, lead gen products, and more. Talk with a live person and take advantage of their personalized support. By offering a variety of seamless LOS integrations (Encompass, Calyx, Byte, etc.) and a 100% U.S.-based

customer support team, they help their lending clients close more loans, faster and easier.

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.

$1.1 billion in a weekend – or basically $1.2 million per minute. WOW, you brokers are amazing! Thanks the grinding you did last weekend, Quicken Loans Mortgage Services had its BIGGEST WEEKEND EVER, with $1.1 billion in home loans across America being placed with QLMS. That’s a fantastic feat! A huge share of QLMS’ 6,000 broker partners tapped into the incredible pricing, process, technology and support QLMS offers. If haven’t run your clients’ numbers with QLMS recently, call your AE today. If you’ve never talked to QLMS, now is the time. Click here to join.

Lender, investor, and vendor FHA & VA tweaks

The Department of Veterans Affairs said it has completed processing roughly $400 million in “funding fee” refunds to more than 50,000 veterans, begun after the VA inspector general reported that at least 53,000 disabled veterans were charged funding fees that they were exempt from paying. LOs know that VA loans require no down payment or MI but borrowers often pay a funding fee to reduce the loan’s cost to taxpayers. Some borrowers are exempted, including those receiving compensation for a service-connected disability.

Scott Olson reports that the CHLA sent a letter to HUD opposing components in the Plan to reduce the footprint of FHA and opposing the use of risk-based pricing. In the letter, CHLA supports a number of Plan proposals – better alignment of servicer deadlines and penalties, more flexible pay scales, and addressing risk concerns of PACE loans and the Down Payment Assistance program. The CHLA believes, however, that proposals to curb eligibility for things like FHA repeat borrowers and refinance loans would hurt consumers’ access to mortgage credit.

Turning to lender & investor changes, AmeriHome addressed condominium project approvals. “On August 14, 2019, with FHA INFO 19-41, FHA announced its Condominium Project Approval Final Rule (Project Approval for Single Family Condominiums) and implementation of the Rule with publication of new condominium sections of FHA’s Single Family Housing Policy Handbook 4000.1 (SF Handbook). For individual Condo Units underwritten by the Seller through Delegated underwriting: For Approved Projects: The project appears on the FHA-Approved Condominium Projects List with an unexpired HRAP/DELRAP FHA approval at the time of case number assignment and meets the loan level standards and requirements, or for Unapproved Projects: The project is not on the list of FHA-Approved Condominium Projects at the time of case number assignment and meets the standards and requirements for Single-Unit Approval.

For individual Condo Units underwritten by AmeriHome through the Non-Delegated Underwriting Program: For Approved Projects: The project appears on the FHA-Approved Condominium Projects List with an unexpired HRAP/DELRAP FHA approval at the time of case number assignment and meets the loan level standards and requirements. o AmeriHome will complete the Loan Level Review based on the required documentation provided to AmeriHome by the Seller. Single-Unit Approval is not eligible. See the FHA Standard Program Guide for AmeriHome condominium eligibility overlays that may apply. See the Seller Guide for Seller Representations and Warranties that apply.

Bayview | Lakeview Correspondent Announcement C2019-39 covers the following topics:

FHA and VA updates, USDA Update to Student Loan Payment Calculation, Lakeview No MI with Community Second Enhancements, Training Resources in MRN/Evolve and Home in Five Program Change.

A recent US Bank Seller Guide provides information on Rural Development student loan debt, disaster area declaration updates and a new Correspondent overlay for FHA delegated.

In a loanDepot Wholesale/Correspondent Weekly Announcement, information on the Freddie Mac Bulletin 2019-17 and the VA Handbook Chapter 13 Notices of Value is covered.

The ComplianceEase® flagship platform, ComplianceAnalyzer®, is now able to audit Veterans Affairs (VA) loans for unique state charges and fee deviations allowed by the U.S. Department of Veterans Affairs. With this enhancement, lenders that use ComplianceAnalyzer now have the ability to seamlessly test VA loans for allowable state charges and fees that are typically considered unallowable under VA guidelines—ensuring they are compliant when itemizing charges and fees. “Our enhancements to ComplianceAnalyzer allow lenders to not only itemize fees for VA loans to take advantage of allowable state exceptions, but also mitigate risk by ensuring compliance and quality control.”

Capital markets

MCT has announced that STRATMOR Group’s 2019 Technology Insight Study shows MCT as the industry leader in lender share, overall satisfaction, and Lender Loyalty Score® in the Production Pipeline Hedging category. 75.1% of category respondents use third-party tools and 39.9% chose MCT, giving MCT the highest Lender Share among pipeline hedging providers. MCT again had the highest Lender Loyalty Score®, an impressive 86.4 out of 100 with the average competitor at a distant 37.9. MCT also had the highest Overall Satisfaction of any vendor measured in the study, coming in at 9.3 out of 10. “We are elated to again receive the highest scores in our category, which we see as a direct reflection of how diligently we work to support our clients,” stated Curtis Richins, President at MCT. See how MCT stacks up against the competition, or read the press release for more details.

Traders will tell you that markets, like the bond market, will trade in a certain range only for so long, and then it will head one way or the other. We’re certainly “stuck in a range” and yesterday the 10-year ended the day yielding 1.76%. Brexit, impeachment, Turkey, China/trade, hog inventories. How long can we talk about these issues?

In the U.S. yesterday we did see that total housing starts declined a disappointing 9.4% m/m in September to a seasonally adjusted annual rate of 1.256 million. Building permits declined 2.7% to a seasonally adjusted annual rate of 1.387 million. The month-over-month weakness was a function of downturns for multi-unit dwellings. Jobless Claims indicated that we’ll see another solid increase in October nonfarm payrolls. Industrial production declined, as did Capacity Utilization, but most of that was blamed on the strike at General Motors (GM), which contributed to a 0.7% decline in the manufacturing output for durables.

Today we’ll have the second-tier September Leading Economic Indicators, expected to decline slightly. We do, however, have plenty of speakers from the Federal Reserve, probably heading for three-day weekends wherever they’re speaking. Dallas’s Kaplan, Kansas City’s George, Minneapolis’s Kashkari, Fed Vice Chair Richard Clarida, and… oh, wait? Kaplan is back, speaking for the second time! Friday begins with rates little changed from Thursday: the 10-year is yielding 1.77% and Agency MBS prices are worse/down a tick or two (32nds).

Lots of travelers read this commentary. And some of them use the safes in hotel rooms. Before you put anything in, watch this 90 second video about someone cracking the safe with six 0’s.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “How Productive is Your Origination Team?” 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.)

Oct. 17: Fraud, correspondent, home equity products; warehouse facility for sale; HUD & flood

52% of Agency biz (e.g., Freddie and Fannie) is first-time home buyers. Over at HUD, according to the Mortgage Bankers Association (MBA), first-time home buyers account for more than 75 percent of FHA home purchases. FHA & VA continue to evolve – more below.

Lender services and products

“New! Freedom Mortgage Wholesale’s FHA Condo Single Unit Approval program allows for approvals of individual condo units meeting certain eligibility requirements even if the condo project is not FHA approved! Freedom Mortgage Wholesale is the right choice for a fast and easy FHA Condo approval. Relax – we coordinate the collection of all condo project information for you. Additionally, Freedom Mortgage will absorb any fees associated with Condo Questionnaire requests. Join us for FHA Condo Single Unit Approval training.”

Just announced at AIME Fuse: UWM’s BRAND 360. Launching October 23rd, Brand 360 will make it easier for clients in their network to market to borrowers, increase retention and promote their businesses. It’s packed with features that alert you when it’s time to reconnect with past clients (or opt in to have UWM do it for you automatically), let you create customized marketing materials, and select and schedule social media posts for up to 30 days. You’ll also be able to use their built-in analytics to measure your marketing’s effectiveness. Contact UWM if you’re interested in joining its network.

Chenoa Fund: A Safe and Happy Home: Through the years, Chenoa Fund’s programs have helped more than 17,000 low- and moderate-income borrowers obtain loans and realize long-held dreams of owning a home. When asked what they value most about the experience, most buyers provide a common response: the chance to live in a safe and happy home. Darlene T. recalled the joy she felt at leaving behind her “overpriced, poorly maintained rental” in an “undesirable part of town” and moving into her own house: “The neighborhood is beautiful, safer and has many conveniences close by.” Brittnie S. also was grateful to have a “safe place to come home to” after long shifts as a nurse. For these and other former renters, homeownership provides a sense of security that has a decisive impact on their quality of life. That’s an outcome worth celebrating.

CLOES.online is now offering the newest format for online education designed for mortgage loan originators. Deb Killian, CRMS presents a full video, NMLS approved, online pre-licensing and continuing education classes that will change the way you think about online education. These recorded presentations provide students with the information they need to succeed as mortgage originators. The courses are available 24/7 and not available anywhere else. Hear the rules and best secrets from a professional who was personally responsible for over $1 billion in loan originations. Get information you need to know about originations and why. Hear, read the material and see full video presentations. Get accurate information the first time and get it right. Now the Latest Streaming info CLOES Live. Contact Deb Killian, CRMS for information on using CLOES.online to supplement  your training programs. We teach MLO competencies and we prove it. Charter Oak Systems, LLC, NMLS Provider #1405047

Blend, the digital lending platform, is now helping financial institutions address the broken home equity process. The market opportunity is rapidly growing – according to TransUnion, HELOC originations are expected to double over the next five years. Want to reach new customers at the right time in the cycle? Check out Blend’s guide to incorporating home equity into your marketing mix. Read it here.

“Everything’s Bigger In Texas” including Mr. Cooper! Based in Dallas, we take pride in our ranking as America’s largest non-bank servicer ($640B+), position as a top Correspondent and Co-issue investor, and our comprehensive offerings and capital markets expertise. In addition, we’re excited to announce the successful launch of MOXI (Mortgage Originations Xpress Interface), which is our new Delegated Correspondent technology innovation and loan management solution. MOXI offers our clients dynamic features such as drag and drop document delivery, self-service ad hoc reporting, instant bulk registrations and eligibility for Hybrid AOT just to name a few. Also, no FNMA 3.2 is required! AND that’s not all!  Significant technology investments continue as we are in development to introduce an innovative Non-Delegated platform in early 2020. MOXI’s big debut is during MBA’s Annual Convention & Expo in Austin. Contact your Regional Sales Team to schedule a proper introduction! For information, visit www.mrcooper.com/correspondent.

The threat of an impending recession continues to be a popular topic in the news lately, and while the timeline of when the economy will slow is hotly contested, the question seems to be when, not if, we’ll see our next fiscal downturn. As a mortgage lender, having a game plan—and understanding how to adapt to stay successful—is imperative with a recession on the horizon. A new Quick Guide,9 Ways to Prepare for an Economic Recession,” provides a great starting point to evaluate where your business stands today and what you can do to weather the storm, regardless of length or intensity. A must-read for all lending managers and professionals, and an exclusive to Rob Chrisman subscribers today, download your free copy here (no form required).

FundingShield is the first Mortgage Fintech focused on Wire Fraud Prevention and Risk Management to receive Mortgage Bankers Association’s MISMO Premiere Level Certification. The Premiere Level Certification is the highest-level certification available by MISMO. It provides assurance that the technology provider’s products demonstrate compliance with MISMO standards and best practices driving data integrity and security to the market.  The Certification is further confirmation of FundingShield’s commitment to provide relevant risk management solutions to the industry as the market leader and pioneer in closing agent compliance, settlement risk management & wire fraud prevention technology. The Full release is available here at the Mortgage Bankers Association News Link.

Promotions & moves

Altisource Portfolio Solutions S.A. announced that Steve Kolimaga has been appointed VP, Enterprise Sales, and will be enhancing the value that Altisource delivers to the origination market through tailoring specific products and services to customer needs.

And from Rhode Island comes news that Embrace Home Loans’ Buddy Hardiman has been promoted to SVP of retail and direct sales and will lead and manage the company’s direct sales team, the transition to new technologies to improve the overall digital customer experience, and continue spearheading the many enhancement initiatives currently underway on the company’s retail platform.

FHA & VA – the changes never cease

FHA has introduced training materials to assist mortgagees and other stakeholders with the implementation of the Condominium (Condo) Project Approval Final Rule and updates to

Single Family Housing Policy Handbook. For additional support on this topic, the following pre-recorded webinars are now available: Module 2C1: FHA Condo Approval –Condo Project Approval: Module2C1-CondoProjectApproval. Module 2C2: FHA Condo Approval – Mortgagee Direct Endorsement Lender Review and Process (DELRAP) Authority Requirements:

Module2C2-MortgageeDELRAPAuthorityRequirements. Module 2C4: FHA Condo Approval – Underwriting Condominium Loans: Module2C4-UnderwritingCondominiumLoans. To access additional FHA webinars, visit the Single Family Housing Self-Paced, Pre-Recorded Training page.

Last year, The Economic Growth, Regulatory Relief, and Consumer Protection Act established new requirements for Department of Veterans Affairs (VA) refinance loans, including seasoning, net tangible benefit and recoupment. The agency is now taking action against loans that do not meet the new requirements. “The VA has started to contact lenders regarding recent refinances that may be ineligible for guaranty,” said Stephanie Schader, Vice President at The Collingwood Group.

Meanwhile, much of the industry hopes that HUD and the FHA takes a stand in private flood insurance policy, or at least following other financial regulators’ policies. The National Association of Realtors sent yet another letter. “Dear FHA Colleagues: I am following up on our letter, dated July 26, 2017, urging FHA to begin accepting private flood insurance. Over the past two years, we have been communicating with you and Congress about this. We were pleased to see plans in the Unified Agenda for a proposed rulemaking in early 2019 but to date, no notice has been issued. Urgent action is required: On July 1, new federal lending regulations take effect, relating to whether private flood insurance can be placed on FHA-backed home loans in flood hazard areas. Those rules generally require the acceptance of certain private flood insurance; your rules currently prohibit any acceptance at all.

 

“We are concerned about market uncertainty and confusion, especially when consumers are finding that the private market offers more affordable and higher quality coverage than the National Flood Insurance Program. Is there any update you can share with us?  This is critical to our membership. We thank you for considering this important issue. Please let us know if there is additional information or anything else we can provide to help move this issue forward.”

A group (the Mortgage Bankers Association, the American Insurance Association, the Independent Insurance Agents & Brokers of America, the National Association of Mutual Insurance Companies, the National Association of REALTORS, the Property and Casualty Insurers Association of America, The Financial Services Roundtable, and United Policyholders) have urged FHA to amend the agency’s policy regarding the acceptance of private flood insurance by lenders for FHA-insured loans. “We all believe that FHA requirements pertaining to the use of National Flood Insurance Program (NFIP) policies are resulting in an unnecessary roadblock for otherwise capable borrowers.”

VA recently completed an aggressive initiative to process home loan funding fee refunds to Veteran borrowers. The culmination of a multi-year internal review of millions of VA-backed home loans spanning almost two decades resulted in more than $400 million in refunds. While some funding fees charged were found to be attributable to clerical errors, most fees were charged correctly. The exception was for those Veterans whose exemption status changed following the issuance of a disability rating after the closing of their loan. Letters were mailed notifying Veterans who were eligible for a refund. Veterans who believe that they are entitled to a refund of the VA funding fee are strongly encouraged to call their VA Regional Loan Center at (877) 827-3702 to find out if they are eligible.

And remember that the VA released Circular 26-19-23, interim guidance for the Blue Water Navy Vietnam Veterans Act of 2019. It is best to read the Circular, but some key provisions of the Act, effective with loans closed on or after (and not before) January 1, 2020, are: Veterans with loans amounts over $144,000 with full entitlement, will not need a down payment regardless of purchase price. The guarantee for loans at $144,000 and less will not change. For Veterans who have previously used entitlement that has not been restored, the maximum amount of guaranty is the lesser of 25 percent of the loan amount OR the maximum amount of guaranty entitlement available. The maximum amount of guaranty entitlement is 25 percent of the Freddie Mac Conforming Loan Limit, reduced by the amount of entitlement previously used (not restored). Purple Heart recipients will be exempt from paying the Funding Fee.

If you are attempting to keep up on regulatory news involving government programs, the OMBA provides pertinent information via its OMB Alerts like published information applicable to The Economic Growth, Regulatory Relief and Consumer Protection Act, Public Law”, as passed by Congress. The law addressed VA refinances, both IRRRLs and Cash-Out and may mean big problem for lenders.

Capital markets

Mortgage Industry Advisory Corporation (“MIAC”) is pleased to solicit offers for a warehouse facility for a Non-Bank Originator of Residential and Commercial Mortgages. Also, on offer are the high coupon, Non-Agency loans originated in this program. The Originator is headquartered in Sydney Australia with production coming from the major cities on the East Coast of Australia being Sydney and Melbourne. The Client originates approximately AU$1b of mortgages per year. Approximately 20% of this volume is Non-Agency – in domestic terminology. The Financing request is for this AU$200mm per year, expected to grow to AU$400mm per year over the next 12 months. On offer is an additional ~ AU$100mm per year in Personal Guarantee commercial loans of similar quality secured by commercial real estate. For more information, please contact your MIAC sales representative (212-233-1250) or Brendan Teeley.

Fannie’s trading desk spread the word that now clients have more flexibility when selecting a settlement date, “allowing you to pool sooner, if you choose.” The standard book entry form is now 3 business days for Fannie Majors and 4 business days for a single-issuer pool. The Selling Guide and Settlement Calendar, available on our Delivering page, will be updated in December to reflect these changes.

Rates go up. Rates go down. And everybody now seems to be an expert on when the recession is coming. Housing data out yesterday was positive with the NAHB Housing Market Index increasing in October, though combined with a decline in retail sales, it is quite impossible to predict precisely where the economy is headed. The October Fed rate cut odds rose to over 80 percent.

 

Treasuries got off to a higher start after the Chinese government warned overnight that “strong countermeasures” will be taken if the U.S. passes the Hong Kong Human Rights and Democracy Act. It has already passed the House and is awaiting Senate approval. Treasuries extended their starting gains after the release of a weaker than expected Retail Sales report for September was coupled with an upward revision to the reading from August, and the 10-year yield closed the day -2 bps to 1.75 percent.

 

The other big news, as I mentioned yesterday, is the impending Brexit deadline on October 31. The U.K. and EU are reportedly nearing a deal, though nothing is finalized before this week’s critical European summit. If no agreement is in place by Saturday, the U.K. is legally required to either ask Brussels for an extension or win Parliament’s approval for leaving anyway. The main obstacle remains how to handle the Irish border.

 

The Federal Reserve’s Beige Book for October noted that overall economic activity increased at a slight to modest pace during the survey period but with variations seen across the country. Overall household spending was described as “solid” while tourism and travel-related spending increased modestly. The report noted that most contacts expected continued economic expansion, but at a slower pace. Separately, the Federal Reserve resumed permanent open market operations yesterday, as part of a plan to purchase $60 billion worth of Treasury bills per month.

 

Today’s calendar is already underway with progress on Brexit in the UK, initial jobless claims (+4k to 214k), September housing starts (-9.4%!)/building permits (-2.7%), and the October Philadelphia Fed Survey (down to “5.6”). Later this morning brings September industrial production and capacity utilization. The session also sees remarks from Chicago Fed President Evans, Governor Bowman, and New York’s Williams. We begin the day with Agency MBS prices roughly unchanged and the 10-year yielding 1.75%.

After learning six hours of basic semaphore, I was flagging!

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, “How Productive is Your Origination Team?” 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.)

Oct. 16: Sales jobs; broker, LOS, warehouse products; coast to coast events and free training

Sen. Patrick Moynihan once said, “Everyone is entitled to their own opinions, but not their own facts.” In a question guaranteed to generate opinions, there is, “Rob, do you ever think that the mortgage industry will be like the gasoline business, dominated by a very few huge companies?” No, I don’t think so. The cost and barriers to entry are too low. I very much doubt that a few lenders will ever dominate the mortgage origination sector. Looking back over a few decades concentration among the top 30 lenders has been very fluid. The top 30 lenders had a 92% market share in 2008, but that has dropped to 57% in 2018. Over the last ten years, 23 of those top 30 lenders are newly in this elite group which means that only seven have been able to sustain their leadership position. I personally expect that we will experience a similar turnover in the next ten years, including some major disruptors, and the size of marketing budgets. My two cents.

Jobs & transitions

Join the String Real Estate Information Services team today. There isn’t enough time or space to name all of the reasons why this is the perfect time to connect with String, but here are a few highlights. String’s reputation and experience is unparalleled, we are growing (6th straight year), ALTA just added String to its ALTA Elite Provider Program and we are laser-focused on quality and metrics. The bottom-line for String clients is more profits, less risk and the ability to focus internal resources where they can make the biggest impact. And when you join the String team, you will be recognized and rewarded for your contribution. We are hiring Account Managers in multiple cities! For a detailed job description and to apply visit the String careers page or send your resume to Prashant Kothari.”

Thrive Mortgage believes in technology that enhances the client experience and increases the efficiency of the Originator. Last year, Thrive launched iThrive, its Intelligent Mortgage Platform, to create a vastly superior lending experience. Thrive’s drive to become the leader in lending innovation has led to impressive “Contract-to-CTC” times of lower than 14 days. Beginning next week, Thrive will implement the third phase of its iThrive platform adding advancements designed to bring the entire loan process into the palm of the borrowers hands all the way through closing. Dan Windell, Training & Development Manager, stated, “Borrowers benefit from an incredibly simplified interface and communication tools that update at every milestone. The LO manages their files more efficiently from prequals, to pricing options and locks, to disclosures. All of it handled through a single, interconnected app.” To learn more about available growth opportunities, please reach out to info@thrivemortgage.com.

MAXEX announced that Erik Anderson is its new COO to lead day-to-day business operations and manage continued company growth. MAXEX is a residential mortgage loan trading platform and exchange company.

Lender services & products

What exactly is a Property Fingerprint? Class Valuation has spent the last year partnering with industry stakeholders — including the GSEs, lenders, and appraisers – to work on valuation modernization initiatives designed to bring better transparency, granularity, and credibility to the appraisal process for all involved. The result? The industry’s first true Property Fingerprint designed to provide the most robust, in-depth level of property data to appraisers and lenders alike. The technology, which is currently in pilot, is the first of its kind and is GSE-backed. See it in action here.

Are you a mortgage banker who is looking for a new warehouse partnership? One that offers enhanced options in today’s dynamic interest rate environment? If so, book a meeting with the Executive Team from Axos Bank (formerly BofI Federal Bank) at the MBA Annual Conference in Austin, TX. Our diverse offerings include a comprehensive array of Agency, Super Jumbo and Non-QM products, aggressive pricing with deposit relationships, warehouse facilities from $5MM to $125MM, and a streamlined application process. With extended funding times up to 5:30 pm ET and exceptional customer service just a phone call away, Axos Bank is an essential partner to help you grow your business. Contact our Warehouse Lending Division or our Wholesale and Correspondent Division to set up a meeting at the MBA Annual Conference.

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.

For those of you heading to the MBA Annual, this is a reminder to make sure you check out Tequilatopia. Hosted by your friends at TMS and South Street Securities, it’s a party that promises to be as unique and weird as the city of Austin. Indulge in tequila tastings and delicious Mexican food while enjoying the company of friends. It all happens on Monday, October 28 from 5-8 pm at Café 605 in the Hotel Van Zandt. Spots are filling up fast so register here to get on the guest list today!

Path, the enterprise-level, cloud-based LOS designed from the ground up for banks, credit unions and mortgage bankers from Calyx, is now offering new software versions to match your organization’s size and complexities. Need your LOS preconfigured with standard settings for a quick and simple implementation? You got it! Need a more customized solution specific to your organization and its needs? No problem! With Path, you have options. Stop by booth 839 at MBA Annual to explore how Path can fully transform your business (and enter for your chance to win a Google Home smart speaker & home assistant). Contact Michele Warren to schedule a meeting and learn more.

Stearns Wholesale recognizes the importance of providing innovative tools to propel mortgage broker success in today’s hyper-competitive market. With broker market share catapulting ahead, Stearns is delivering experiences that make a difference. “Our view is that for a mortgage broker to thrive today, they must remain nimble and have an acute focus on the client experience,” said Jon McCash, EVP National Sales. This month’s product & technology release includes real-time BPMI quotes, a one-click portfolio view of important customer milestones, and two new product launches. Brokers who are looking to partner with a customer-first lender, send a message here.

Conferences, events, lots of free training

Lots of folks are heading to Austin for the MBA’s shindig in about a week and a half. But there is a lot going on elsewhere in the next 2-4 weeks. Let’s take a sample.

(First, here’s a little tip. Anyone interested in next July’s Western Secondary, care of the California MBA, should know that a) it is moving to a fantastic location in Southern California, and b) you should contact CEO Susan Milazzo sooner than later to reserve meeting space. And rooms. The only thing nearby is the Ritz and the ocean, and anyone who waits will be scrambling.)

If you’re in North Carolina, the Charlotte Regional Mortgage Lenders Association is having its monthly luncheon and speaker on Thursday, November 7th at Myers Park Country Club.

The California MBA Legal Issues Committee is offering a free webinar on October 17th. Topics include the impact of QM patch expiration, an update on Taniguchi v. Restoration Homes and vicarious Liability of Lenders for Independent Contractors’ TCPA Violations.

Want to see how you can better engage with and manage your prospects, borrowers and past customers? Next week, on October 22nd at 10am PST, Insellerate will show how it helps lenders engage with over 50,000 new borrowers monthly with its CRM and marketing automation platform. Learn how you can use new technology to engage with your borrowers thru text, social media, email and more. Register here.

If you are a credit union in the Southeast, or want to meet one, on October 24th come to the SECUREN Fall Conference which takes place in Chattanooga.

Reverse mortgage folks are gearing up for the annual conference in Nashville Nov. 18-20. Brian Montgomery will be the featured keynote speaker.

If you find yourself in the Kansas City area on November 14, the MBAKC is having a fine holiday luncheon.

If you work in Minnesota and want to get the latest on the iBuyer movement and learn how to become a better salesperson, check out the line up at this year’s Minnesota Mortgage Association Annual Conference. Nationally renowned speaker Rene Rodriguez, MN Twins President Dave St. Peter, and local Real Estate expert Long Doan will get you prepared for 2020 in this power packed ½ day of information on November 13.

In Maryland MMBBA is offering a two-day course in conjunction with Genworth entitled “Mortgage Foundations: Mastering the Basics for the Business” on October 29 and 30th in Columbia, MD. Early bird deadline ends 10/18, so register now here. Email info@mmbba.org for further information. This is a great course for ‘new’ people to the mortgage industry, or those who want to learn more fundamentals of the business!

Register for the October 24thMortgage Quality & Compliance Committee (MQAC) Webinar: “Banking and Secondary Market: How to Avoid Repurchase Demands”.

The MBA of Florida’s November 7th Webinar will be hosted by Pat Sherlock who will discuss Successful High Tech & High Touch Marketing Strategies in Origination.

The Utah Mortgage Show will be “celebrating, advancing and supporting” the men and women who finance residential and commercial real property. With top speakers, great hands-on sessions and a wealth of opportunities from exhibitors and sponsors, November 8th is a can’t-miss day for hundreds of mortgage professionals.

Register for the MMBBA’s Navigating the Waters To Be the Best Version of Yourself (PMW) at Hudson Coastal on November 5th beginning at 8:00.

If you have been looking for a conference specifically for origination, servicing, operations and reverse professionals, look no further than TMBA’s 2nd Annual Mortgage Symposium ‘Preparing For The Future Using Today’s Technology” happening November 11th and 12th, 2019. Register now and join the fun at the Omni Frisco Hotel in Frisco, Texas.

Slots are filling up fast for TMBA’s 2nd Annual Mortgage Symposium, ‘Preparing For The Future Using Today’s Technology”, November 11th and 12th at the beautiful Omni Frisco Hotel in Frisco, Texas. Full of great sessions and speakers, industry trends and projections and of course ‘Tailgate at The Cowboys Club’ at the Star where the Dallas Cowboys work and play. Mingle with colleagues at this iconic venue. (only 100 tickets available).

Join the Texas Women’s Mortgage Bankers networking group on November 11th. This popular event strives to provide opportunities for women from all aspects of the mortgage banking industry to network, engage, learn and grow in their careers. Separate registration is required for this event. Register or sponsor today.

On November 18th-19th, Washington insiders, fintech providers and mortgage lenders are invited to #NEXTDC19. An exclusive, boutique event focused on delivering policy intel. This is the Washington event where housing policy and technology intersect.

Registration is underway for MBA’s Accounting & Financial Management Conference (AFM19) scheduled for November 19-21 in San Diego. This event brings together leading authorities in real estate finance to share critical business intelligence, insights and best practices. Yes, there’s the MBA’s Accounting and Financial Management Conference 2019. But also available on Tuesday, November 19th from 8:00-11:00 is Fundamentals and Best Practices in Mortgage Accounting or Foundational Elements of Mortgage Servicing Rights.

Join MBA Education and industry experts in San Diego on November 19th for a new workshop Foundational Elements of Mortgage Servicing Rights (MSR). The three-hour condensed session will cover critical topics that every financial and servicing professional should understand. Participants will learn MSR cash flow assumptions, commonly accepted accounting practices, and the appropriate method of valuation given your business mode.

Capital markets

What have rates been doing? Well, there are two big stories vying for market’s attention on a continuing basis: Brexit, and the U.S./China trade war. On Friday, rates went up slightly after the U.S. and China announced a partial trade deal, though it appears Beijing wants a rollback in tariffs before it will agree to buy as much as $50 billion of American agriculture products. Yesterday, rates went up slightly again after it was reported U.K. and European Union negotiators in Brussels are closing in on a draft Brexit deal, though it remains to be seen whether Prime Minister Boris Johnson has the support of various groups such as Northern Ireland and Parliament.

Regardless, any optimism should buoy Treasury yields, and the 10-year closed the day +2 bps to 1.77 percent. U.S. stocks rose as well because of some positive earnings news. On a slightly more sober note, the International Monetary Fund lowered its global growth forecast for 2019 to 3.0 percent from 3.2 percent due to falling manufacturing activity and trade, and the forecast for 2020 was lowered as well.

 

It’s a whole new day, and we have already seen that mortgage applications increased 0.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 11. The Refinance Index increased 4 percent from the previous week and was 199 percent higher than the same week one year ago, while the seasonally adjusted Purchase Index decreased 4 percent from one week earlier and was 12 percent higher than the same week one year ago. We’ve also received September Retail Sales (-.3%, ex-auto -.1%). August business inventories are later this morning, as well as the NAHB Housing Market Index for October. There are also two scheduled Fed speakers: Chicago’s Evans and Fed Governor Brainard. We begin the day with Agency MBS prices +.125 and the 10-year yielding 1.74%.

If the person who named Walkie Talkies named everything (part 3 of 3)

Comedian’s wages = funny money

Fairy Laundromat = Wishy Washy

Fire Engine = Flashy Dashy

Shot glass = dinky drinky.

Crypt – roomy tomby

Toilet paper: bowel towel… (Thanks to Doug B. for that gem.)

Lifejacket- boaty coaty

Psychiatrist = findey mindey

Low fat desserts = Fakey Cakey.

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, “How Productive is Your Origination Team?” 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.)

Oct. 15: Ops, LO jobs; recruiting, marketing, POS, appraisal products; Non-QM company & product news

Scholars disagree on how much sleep we need, what time is the best time to wake up, and what time to go to work. But then again, scholars disagree on everything. Being a capital markets person on the West Coast was, and is, not easy, with most rising between 4 and 5AM and at their desks by 5 or 6 AM. This was really a convoluted way of working in the news that in California the Governor has signed a law mandating a later (8AM) start time at public elementary schools, 8:30 for high schools. What the heck? “Shifting to a later start time will improve academic performance and save lives because it helps our children be healthier.” Couldn’t they just go to bed a little earlier? Speaking of nocturnal patterns, most of the U.S. doesn’t change their clocks back an hour until November 3. I’ll save the daylight savings rant for another day.

Jobs

Home Point Financial continues its climb. The company has experienced 5X growth this year and took the title as the fastest-growing non-bank lender. No wonder it is hiring! Home Point wants to grow its team of experts and hire 50 Sr. Underwriters ASAP, with remote openings at all four regional centers. If you know (or are!) someone interested in joining a fast-moving organization that has plans for even more growth, here are the direct links to apply at Home Point centers in Ann Arbor, MI, Chandler, AZ, Madison, AL, and Maitland, FL.

The business opportunity you’ve been looking for is here! You’re already an expert in the mortgage industry, why not put that expertise to its ultimate use by becoming your own boss with a Motto Mortgage franchise. The Motto Mortgage network supports entrepreneurship with an out-of-the-box franchise model and industry-leading tools – all for a flat, monthly fee. You’ll have full and customized access to best-of-breed technology, business support tailored to you, and wholesale lender connections for all of your loan origination needs. Reach out to franchise@mottomortgage.com to discover how franchise ownership can open the doors to more opportunity today.

Caliber Home Loans, Inc. is incredibly honored to announce that the United States Veterans Chamber of Commerce (USVCC) has chosen us as its official lender of choice, its #1 OPTION, for home mortgage loans! This new relationship will allow Caliber to provide guidance around the home buying process and VA Home Loan Education, to the USVCC’s several million members nationwide. As part of this effort, we will participate in various transition and education symposiums and events. Through our USVCC relationship, Caliber is partnering with the following organizations that honor military and veteran families: Veterans Advantage, and Warrior & Invictus Games. The USVCC had many choices but chose Caliber because we provide credibility in product and sincerity in message when engaging transitioning military, veterans, and their families. We’re looking for a few good loan officers to join the ranks of our sales organization! Email us to learn more.

Lender products & services

Do you have a sales automation platform that isn’t being used to its full potential because your salespeople don’t understand how to use it? Or, did you purchase a marketing automation platform but now realize you don’t have the resources or expertise to create engaging content like email tracks, white papers, case studies, videos, infographics or blog posts to populate it for distribution? That’s why Seroka Brand Development, a leading branding, digital and strategic communications agency for the mortgage industry, just launched Marketing Automation Optimizer. Through this program, you can obtain our assistance with developing a smart sales and marketing automation strategy and/or well-written, personalized content that can be effectively used in your company’s sales and marketing efforts, no matter what automation platform you have. Schedule a meeting with them in Austin at the MBA Annual or email John Seroka to learn more.

Lenders in the future will be lending digitally to lower their costs, comply with investor requirements and increase borrower satisfaction, according to a new white paper from Fiserv. Some of the evidence the company uses in its paper came from The Harris Poll conducted on behalf of Fiserv: 62 percent of recent mortgage borrowers e-signed loan documents via online or mobile, up from 51 percent in 2018 and 64 percent say they prefer loan status updates via email. Consumers are driving the industry to digital — at least they are driving the lenders that are paying attention to their borrowers. In its white paper, Fiserv goes into great detail on how lenders can meet these borrower demands. Download it on the company’s website. Are you headed to Austin for the MBA Annual Convention? Meet with us and pursue a truly digital mortgage. Email mortgagedirectorsales@fiserv.com.

 

It’s time to re imagine how sales and marketing work together to drive growth. Connect, engage and learn with leading financial brands at Total Expert’s second annual road show, Accelerate 2020. Join us in Charlotte, Chicago, New York City, San Diego or Dallas as we explore best practices to drive ROI and look at the latest technology trends in the industry. Network with some of the top lenders in the country and walk away with new strategies to modernize your sales and marketing processes and create customers for life. Get ready for a day of thought leadership, actionable insights and winning strategies. Space is limited, so register today and position your organization for success in 2020. See you there!

“Mortgage lenders, can you loan me a few minutes of your time? As you may have seen, MQMR is celebrating National Gratitude Month in November by offering you the chance to give your compliance team lunch on us! Don’t forget to nominate your team and tell us what makes them so special. Nominations are open now through Nov. 8. MQMR will select a winner at random each week in November starting Nov. 4, and they’ll receive a $250 gift card for lunch on us. For a list of Official Rules and to submit your nomination, visit the contest page here.”

Chenoa Fund: Helping Homebuyers Overcome Obstacles – Homeownership may be the cornerstone of the American Dream, but achieving it isn’t easy. Even couples with steady jobs and solid incomes sometimes struggle to secure a mortgage, perhaps because of past medical or financial difficulties or high rents that prevent them from accumulating a down payment. State housing programs are intended to support such borrowers with down payment help or other assistance, but many carry restrictions that lock out qualified buyers. Some limit assistance to lower incomes, while others help only first-time buyers. Many frustrated borrowers have found an ally in the Chenoa Fund. With reasonable credit controls and borrower education through a HUD-approved provider, Chenoa Fund programs are helping thousands of buyers escape the renters’ trap and buy homes. The Chenoa Fund is administered by CBC Mortgage Agency, whose mission is to increase affordable, sustainable homeownership across the U.S.

United States Appraisals announced the launch of its Appraisal Modernization Program (A.M.P.), providing lenders access to the changing landscape of valuation products, including bifurcated appraisals. The program is available nation-wide, and USA is already delivering thousands of appraisals monthly to lenders by leveraging innovative mobile apps and other technologies while also incorporating new valuation products.  “Our aim is to incorporate more technology and standardization in the process of collecting intelligence on properties, and to provide the best possible experience for both the users and the providers of the next generation of appraisals,” said Aaron Fowler, CEO. Fowler added that appraisers will remain a critical element in providing quality service to its investors and lenders. However, he noted, the shortage of skilled and experienced appraisers is driving a need for innovation. “We are seeking creative ways to supplement the expertise of our most valued appraiser-partners with additional resources to gather first-hand data on target properties.”

Is home equity part of your marketing mix? When potential customers think home equity, you want your name to be top of mind. Providing a seamless home equity experience can turn a mortgage customer into a lifelong borrower. Learn how to reach people across the customer journey, providing the peace of mind and security they expect. Download Blend’s ebook.

Imagine increasing your borrower satisfaction by 25% in less than two months. That’s exactly what happened for a regional credit union that implemented Maxwell’s digital mortgage point-of-sale solution. Maxwell continues to be the leading digital mortgage solution for independent and regional lenders looking to improve their borrower experience and increase profitability. I’ve seen firsthand the results and impact Maxwell can have across many different organizations, from independent lenders to banks and credit unions. Their platform enables teams to easily launch an all-encompassing digital experience to their borrowers, while providing industry leading tools and integrations to help improve loan officer efficiency across the organization. To learn more about Maxwell visit www.himaxwell.com or request a demo here.

XINNIX is seeking input from Mortgage Industry executives to create a first-of-its-kind, industry wide Engagement and Performance Study. Organizational behavior studies have shown that companies that maintain a high level of engagement in their organizations have great success in areas such as retention, recruiting, and customer and associate satisfaction to name a few. Take the survey today to secure your advanced copy of the report. If you’re attending the MBA Annual Convention later this month, stop by booth 913 on Monday, October 28 at 1:00 PM to meet XINNIX CEO and Founder Casey Cunningham as she discusses employee engagement and the impact it can have on your business.

Non-conforming and Non-QM nuggets

Join National Mortgage Professional Magazine for a Deal Desk webinar on Non-QM Business Bank Statement, 1099 Alt Doc & Asset Depletion Programs, being held on Thursday, October 17 at 2 pm ET / 11 am PT. The webinar will be focused on educating participants on how to qualify Self Employed consumers using business bank statements along with providing insights into how to lend to consumers with moderate and high asset levels using Asset Depletion. Further, we’ll explore 1099 Alt Doc program qualification and how using this program can be a big improvement over bank statement loans in general from a documentation standpoint. You can register here.

Yesterday Redwood Trust announced the acquisition of CoreVest, a nation-wide originator and portfolio manager of business-purpose loans (BPL), for $490 million. CoreVest’s portfolio consists of over $580 million of BPL investments which include residential bridge loans (aka fix-and-flip), and single-family rental loans (SFR).

Homeowners First Mortgage was recently created as a joint venture between NewRez LLC, its Shelter Mortgage Co. LLC business division, and First Team Real Estate. New Penn was an early entrant into the non-QM space and rebranded in December 2018 as NewRez LLC a few months after their acquisition by New Residential Investment Corporation.

Certainly the Agencies, investors, and lenders are looking at new ways of evaluating credit, one of the “Three C’s” of underwriting. For example, Fair Isaac introduced a new type of credit score called UltraFICO in 2019. The new score takes into account bank balances as well as payment history and is meant to boost the number of approved loans and credit applications.

AmeriHome Mortgage now offers a new Non-QM Income Flex Program, providing financing options for qualified borrowers who may not meet all requirements for a Qualified Mortgage, or who are seeking an alternative loan documentation program. This program offers multiple documentation types, DTIs to 50%, 90/90 LTV/CLTVs: Mortgage insurance is not required at any LTV, Loan amounts to $2,000,000. Primary residence, second home, and investment property financing. SFR, 2-unit property, condominium, townhouse, and PUD eligibility. Financing for First-Time Homebuyers. View its Non-QM Income Flex Program Guide for more information.

Plaza Home Mortgage has updated certain price adjustments on its Elite Jumbo, Elite Jumbo Non-QM, Elite Plus Jumbo and Elite Plus Jumbo Non-QM programs. These changes are effective for new locks on or after Tuesday, October 8.

Due to system constraints, loans to Wells Fargo Funding with more than four borrowers are ineligible for purchase. To align the Seller Guide with its current process for Non-Conforming Loans, maximum borrower limit will be added to Section 825.02: Borrower Eligibility and Title Vesting (aka Borrower – General Information) on November 5, 2019.

The Mortgage Partnership Finance Program announced origination and underwriting updates for its MPF Direct program. Specifically, changes were made to Direct Select QM, Select 90 QM, and Choice QM guidelines.

U.S. Bank Correspondent/HFA’s Lending Guide Update SEL-2019-037 covers multiple topics including use of Loan Beam in lieu of Income Analysis Worksheet, update to final verbal VOE guideline, and expansion of dollar amount requirements for Work Completion Escrow.

Carrington Wholesales’ Advantage Flexible Advantage (CFA), CFA Plus, and Investor Advantage (DSCR) programs now offer a new Interest Only ARM option.

Lender Price has released FLEX Pricer, a new pricing platform designed specifically for non-agency and non-QM lenders. “FLEX Pricer supports all types of loan products, but is most effective with non-QM products due to its configurable interface. Lenders can create their own non-QM loan pricing search tool without the complexity and cost of custom development.”

Capital markets

Economic data released over the last week remains consistent with the slowing, but growing, narrative observed over the last quarter. The NFIB small business Optimism index fell but is still at a level within the top 20 percent of all readings throughout the 46-year history of the survey. It indicated that small businesses still continue to hire, invest, and expand, albeit at a slower pace than earlier in the year. The Uncertainty index continues to rise, which should not come as a surprise to anyone given global economic conditions and uncertainty surrounding trade. Job openings are down 7.5 percent from January but layoffs and jobless claims remain historically low. Keep in mind, that it is common for hiring to peak and slow before jobless claims begin to significantly rise. As hiring slows, income growth and by extension consumer spending tends to moderate. Fortunately for consumers, September’s consumer inflation was unchanged from August and was up a small 1.7 percent over the prior twelve months. Given the many headwinds currently facing economic growth, the market is putting the odds of a rate cut at October’s FOMC meeting at around 75 percent.

Today we have the usual bevy of Fed speakers but little else. Rates today versus Friday? Down: The yield on the 10-year is yielding 1.70% and Agency MBS prices are better a solid .125.

If the person who named Walkie Talkies named everything (part 2 of 3)

Nightmare = Screamy Dreamy

Thong = peekie cheekie

Parrots = Wordie birdies

Auto correct function = writey righty

Vibrators = shakie snakie

Nude pics = sexy texty

Circumcision =willy nilly

Miniature sausage dog = teenie weenie

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, “How Productive is Your Origination Team?” 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.)

Oct. 14: LO jobs; analysis, broker, underwriting tools; disaster news: FEMA buys properties?

Mortgage loan officers often point out that borrowers will complain about every fee or price adjustment, yet think nothing of paying $6 every day for a Starbucks latte, $4 for a bottle of water that is basically free out of the tap, or using an ATM machine. (The fee at an American ATM machine has hit an average $4.72 for a machine that is not owned by your bank, the highest ever measured by Bankrate.) People are still willing to spend, and the U.S. is a long way away from a recession (two quarters of negative GDP). The consumer, the main driver of the economy, is solid. On the plus side we have domestic GDP, the labor market, wage growth, consumer spending, and consumer sentiment are all good. Where are the uncertainties? Business confidence, manufacturing, political uncertainty, a flat or inverted yield curve, the ongoing trade war, tightening financial conditions, and muted inflation are the focus of those who think we’re heading for a recession. More about rates in the Capital Markets section below.

Jobs

Nations Lendinga privately-owned mortgage lender headquartered in Independence, Ohio, has announced the addition of Jim Collier as Executive Vice President of Operations. As a member of our company’s Leadership Team, Collier will act as the senior lead to our retail operations. Prior to joining Nations Lending, Collier was responsible for leading Operations at Guaranteed Rate Affinity, where he executed on a heavily focused purchase business, and brings with him over 25 years of Operational mortgage experience. “Jim is a great fit culturally to our Leadership Team,” said Nations Lending CEO Jeremy Sopko. “We feel Jim’s experience and expertise will help guide our Operations Teams to the next level we seek.” Nations Lending is a well-established, Agency/Government Servicer, licensed in 48 states. We are proud to service 100% of the Agency loans we originate. For an opportunity to join our growing organization, please visit the company’s website.”

“Attention all Hawai’i residents! LoanStream mortgage is expanding and heading to the Islands. We are looking for an NMLS licensed individual to serve as our Qualified Individual. NMLS license must be up to date and in good standing. Acceptable applicants are licensed Account Executives, licensed Loan Officers or licensed individuals with employment in another field. Applicant must have a physical residence in Hawai’i. With our broad array of prime and non-prime products, LSM is quickly becoming the lender of choice. Here we come Hawai’i! Interested candidates should send resumes to careers@lsmortgage.com and/or apply online: https://loanstreamwholesale.com/careers/.”

Lender products & services

Citibank, N.A. remains committed to growing its Correspondent Channel through a client centric approach. Citi’s team of industry professionals engage our sellers to unlock execution opportunities and develop lender specific ways to optimize loan delivery. This tailored approach has been a key factor in fueling Citi Correspondent’s growth over the past year, and we continue to strategically add new Correspondent Sellers for delegated and non-delegated delivery. Be a part of the growth story and find out how Citi can help you! To learn more, we welcome you to schedule a time to discuss our offering at the MBA Conference in Austin, TX. Contact our National Client Service team for more information at 1-800-967-2205. For new seller consideration, please complete Citi’s Prospective Mortgage Correspondent Questionnaire.

 

Start Your Path to Independence. Don’t miss our Webinar on October 17th at 2 p.m. EST. If you’re interested in pursuing a more flexible schedule and better compensation as an independent mortgage broker, sign up for our Webinar this Thursday at BeAMortgageBroker.com. Join our panel of experts as they provide valuable information on the key differences between working for a retail direct lender and working in wholesale, the timeline to transition to wholesale and the steps needed to become or join an independent mortgage broker. Or call 1-800-229-6342 for a completely confidential consultation.

 

Hey Loan Officers! Are you looking for ways to improve your industry knowledge? Do you want to continue cultivating your credibility with your clients and realtor partners? Then have we got the tool for you! TheRuleTool ™ is made with YOU in mind, designed to make your life easier by providing agency rules and guidelines in a simplified, easy-to-use format. Created and maintained by experts, TheRuleTool ™ helps you address any issue that comes your way. No more panicking over last-minute questions, TheRuleTool ™ gives you the answers you need so you can get those loans approved! Email support@theruletool.com

 

Just announced at AIME Fuse: UWM’s BRAND 360. Launching October 23rd, Brand 360 will make it easier for clients in their network to market to borrowers, increase retention and promote their businesses. It’s packed with features that alert you when it’s time to reconnect with past clients (or opt in to have UWM do it for you automatically), let you create customized marketing materials, and select and schedule social media posts for up to 30 days. You’ll also be able to use their built-in analytics to measure your marketing’s effectiveness. Contact UWM if you’re interested in joining its network.

“It’s tough to understand your costs per individual loan. In order to get it you need to combine Secondary data, like stips and tolerance cures, Sales data from your LOS, HR data, like pay scales and hours worked, Finance Data, like employee & marketing costs and more! RM Analyze, a lender-focused BI Solution from Richey May Technology Solutions, can connect to all your crucial systems to bring you actionable insights to help you grow intelligently. Our tool + consultative implementation approach will get you started with impactful reports today and ongoing support from experts as your business grows and changes. Contact us for a demo today.”

FEMA: Director of all things disaster

Did you know that since 1989 Americans voluntarily sold more than 43,000 properties in high-risk, flood-prone areas to the government, including FEMA, for demolishing?

What about a community bank financing the construction of a mixed-use property that is located in a flood zone with the borrower asking the lender to accept a private flood insurance policy with a coinsurance clause and a coinsurance deductible? Does the bank have any permission/obligation to accept such a policy? And how is maximum amount of coverage available under the NFIP determined for a mixed-use property?

Nonresidential buildings include mixed use buildings with less than 75% residential square footage, which for the purpose of flood insurance under the NFIP, the maximum coverage available for Other Non-Residential is $500,000. The bank is under no obligation to accept a private flood insurance policy containing a coinsurance clause, but may accept provided the policy meets certain criteria which include the provision of sufficient protection the loan, as the bank must require flood insurance in an amount at least equal to the lesser of the outstanding principal balance of the loan or the maximum coverage available for the particular type of property.

The regulations have been revised such that the bank must accept private flood insurance in satisfaction of the requirement for flood insurance if the policy meets certain requirements. A private flood insurance policy which contains a coinsurance clause does not equate to a policy issued under the NFIP. The coinsurance clause narrows the coverage otherwise provided under an SFIP, and effectively is a clause not applicable in an SFIP policy.  Under a policy with a coinsurance clause, the insured must carry insurance equal to at least a certain percentage of the property’s actual cash value. This is done to ensure that the property is not underinsured when the replacement cost loss settlement option is purchased.

As Mother Nature continually unleashes an array of natural disasters throughout the states; the aftermath of flooding in unforgiving to say the least. According to a new NRDC report, “Going Under: Long Wait Times for Post-Flood Buyouts Leave Homeowners Underwater”; the existing FEMA voluntary buyout programs are struggling to meet current needs.

Regarding Chambers, Harris, Jefferson, Liberty, Montgomery and Orange counties in Texas declared by FEMA as Major Disaster Areas for the incident period of 9/17/19-9/23/19;

Sun West Mortgage will require an interior and exterior inspection prior-to-funding or purchase of any loans with subject properties that are determined to be at risk. Specifically, for loans submitted with an appraisal dated on or before the incident period end date or for those submitted without an appraisal. The inspection must verify that the property is sound, habitable and in the same condition as when it was appraised.

An update has been made to the Bayview | Lakeview Loan Servicing Disaster File either declaring a new disaster or updating an existing disaster. Bayview | Lakeview issued a disaster update declaring Hyde County in North Carolina as a disaster area. FEMA has not yet declared a disaster. Loans within Hyde County will have to adhere to the Disaster Guidelines as posted in the Disaster Guide. All other suspensions have been lifted for all counties in North Carolina. Lakeview will continue to monitor the impacted areas and provide updates as necessary.

Mortgage Solutions Financial issued disaster alert Announcement 24-19C regarding the Texas Tropical Storm.

Plaza Home Mortgage® has now resumed funding in all areas that were in the potential impact zone of Hurricane Dorian. At this time FEMA has not made any declarations of disaster areas, but Plaza will continue to monitor for any future announcements.

loanDepot Wholesale monitored the impact of Hurricane Dorian along the Eastern seaboard and continued to provide updates and guidance as new information becomes available. At that time the following actions were suspended in the counties below: Document Draws, Loan Signing, Loan Funding and Wire Requests. Regarding North Carolina, all previous restrictions for Brunswick, Carteret, Currituck, and New Hanover have been removed. Counties still impacted include Dare and Hyde. All previous restrictions for Florida, Georgia and South Carolina have been removed.

U.S. Bank Home Mortgage has updated the U.S. Bank Home Mortgage National Flood Insurance guidelines in the Correspondent Seller and HFA Division Lending Guides.

Capital markets

Despite unemployment being at a 50-year low in September, negative perceptions about current US economic conditions persist. Growth is slowing, but we are still experiencing the longest continued period of economic growth in history. Consumer prices for September were unchanged from August and up 1.7 percent year-over-year. Core CPI was up a mere 0.1 percent for the month but was up 2.4 percent for the year. Producer prices declined 0.3 percent due to falling energy prices. Core PPI was unchanged for the month and up 1.7 percent for the year. Small business optimism declined in September, but remains strong as small business continue to expand and hire. Minutes from the last Fed meeting show an increasingly divided Fed. Additionally, the Fed may look to moderately increase its balance sheet to avoid the liquidity concerns from a couple weeks ago in the short-term lending market, however Fed Chairman Powell stopped short of calling a new round of quantitative easing. The minutes also showed concern among Fed committee members that the market’s expectations of the future course of the fed funds rate may be out of sync with members’ expectations. On that note, the market has priced in the likelihood of a 25-basis point rate following the October meeting of the FOMC at around 75 percent.

Treasuries sold off to close last week, including the 10-year yield closing Friday +9 bps to 1.75 percent (the highest level in three weeks) as the U.S. and China reached a partial trade deal that could pave the way for a more detailed agreement. The risk-on trade also coincided with reports of the UK and EU making progress toward a proposal that avoids a no-deal Brexit. Other news of note included the Federal Reserve announcing a plan to buy $60 billion a month of T-bills at least through Q2 of 2020 as part of an effort to help with bank reserve management. And the Desk of the NY Fed announced that repo operations will continue through January of 2020. Additionally, the NY Fed announced it planned to buy a maximum of $7.1 billion in agency MBS from October 15 through November 14, based on September paydowns.

 

This holiday-shortened week kicks off with the NY Fed Business Conditions Index for October and Redbook same store sales for the week ending October 12. The day also includes three speakers ahead of Wednesday’s Fed Beige Book, with St. Louis’ Bullard, Atlanta’s Bostic, and San Francisco’s Daly all set to make remarks. In addition to the Beige Book, Wednesday brings Retail Sales for September. Thursday sees both Housing Starts and Building Permits for September, and Industrial Production and Capacity Utilization for September, before the week closes with Leading Indicators for September. The bond markets are closed today.

If the person who named Walkie Talkies named everything (part 1 of 3)

Stamps = Lickie Stickie

Defibrillators = Hearty Starty

Bumble bees = Fuzzy Buzzy

Pregnancy test = Maybe Baby

Bra =Breastie Nestie

Fork= Stabby Grabby

Socks = Feetie Heatie

Hippo = Floatie Bloatie

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, “How Productive is Your Origination Team?” 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.)

 

Oct. 12: The impact of rates on lenders & servicing; Agency risk transfers continue; our changing language

Six days a week, this commentary is filled with words and phrases. New York banned the term “illegal alien”, punishable by fines. Words and phrases come and go, changing over time, usually naturally. No one likes outright censorship. Yet there have been some surprising examples of banned books in the United States, most recently in Tennessee where a Catholic school banned Harry Potter books for containing “actual curses and spells.” As a reminder, The Wonderful Wizard of Oz was banned by Chicago’s public library in 1928, partly for showing women (including witches) as leaders. Lewis Carroll’s Alice’s Adventures in Wonderland was banned in China in 1931 under an official mandate that it was wrong for animals to speak human languages. And Where’s Waldo was one of the most frequently challenged books in the U.S. from 1990 to 1999 because it included a cartoon depicting the side of a woman’s breast measuring 1/16th of an inch on the page.

There are no more “manholes” in Berkeley, California. There are, however, “maintenance” holes. The Berkeley City Council unanimously passed an ordinance replacing terms in the municipal code with gender-neutral alternatives. For example, a “sportsman” is now a “hunter,” a “bondsman” is now a “bonds-person,” “manpower” is now “human effort,” and “fraternity” and “sorority” are now “collegiate Greek system residence.” No word on eliminating “mankind.”

2,400 miles away, Atlanta Mayor Keisha Lance Bottoms signed a bill officially renaming three city streets with Confederate in their names. Confederate Avenue and East Confederate Avenue will be renamed United Avenue and United Avenue S.E., respectively, and a third street, Confederate Court, will be renamed Trestletree Court. And 500 miles from Atlanta, Charlottesville, VA, has stopped honoring Thomas Jefferson’s birthday due to him owning slaves. As a reminder, TJ was born and died in Virginia, drafted the U.S. Constitution, was the primary draftsman of the Declaration of Independence, was responsible for the Louisiana Purchase, wrote the Virginia Statute for Religious Freedom, was the 3rd president, founded the University of VA… among dozens of other notable achievements. Some believe that “political correctness” has been a cover by politicians for the lack of attention to the really pressing social-economic issues like homelessness, affordable housing, and education. Others disagree. Our language and thinking continues to change.

On to mortgage banking! How ‘bout dem rates!

“Rob, as you know, I have been in the camp of lower interest rates since December, and still feel that way. The simple story is the Central Bankers of the world, including the U.S. Federal Reserve Open Market Committee, have created a ‘house of cards by forcing investors into buying certain assets, encouraging borrowing, and so forth. Over time, the Fed will be forced to support this house of cards with lower rates. I think we will see the 10-year T-note yielding 1% within the next 6-12 months, maybe by year end. That will translate into mortgage rates of 3%, maybe a little higher.

“This will create a HUGE refi boom and great times for originators. There is no way to tell when that starts, or how long it lasts. But in this process, capacity will inevitably increase. When rates turn up, they will move very fast. Nobody in the world really wants to hold any of these bonds for the duration, just trade them for short term profits. The window to do a deal will close in 60-90 days.

“Company owners want to reap the benefits of this good market if it happens like I suggest. But they also want to do a deal to sell their company before the party is over. That is NOT going to happen. The smart guys I know are already coming up with their exit plan. I am suggesting that owners start sooner rather than later in terms of planning what they want to do. Maybe they end up giving up a little of the gravy, but can still make a lot of money and position themselves to survive a market that is going to be worse than 2018.” (If you would like to look into your options, email James Johnson or call him at 707-738-2666.)

Are rates or recession anxiety impacting MSR trades? BSI Financial Executive Vice President of Capital Markets Larry Goldstone seems to think so, saying lower rates have spelled bad news for both MSR buyers and sellers. “Sellers trying to sell their rights over the past several months have experienced what I call ‘inverse sticker shock’ with lower than expected prices. Buyers are pricing not only for realized higher prepayments, but also the potential for even lower rates, higher prepayments and rising delinquencies with the possibility of some sort of recession in the future. Declining rates are causing a lot of consternation for both MSR buyers and sellers over the past several months. Put another way, buyers have reason to be cautious in their MSR bid, but prices have been lower than expected because they’re are pricing not just for realized higher prepayments but also for the possibility for some sort of recession in the future.

“The good news? With lower rates, the pressure to sell MSRs for cash flow have diminished.

Over the past month, the market seems to be calming down and accepting the fact that lower rates may be here to stay. From a seller’s perspective, dramatically lower rates have triggered

another refinance wave that has improved profits and lessened the pressure to sell MSRs for

cash. There’s a growing acceptance that lower rates may be here to stay, and while economic data is softening, the risk of a materially bad recession seems to be declining in the minds of investors. Let’s hope they’re right.”

Agency action continues, and transferring risk is alive and well

Freddie Mac has been busy pricing multifamily security deals. On October 4, Freddie Mac priced a new $1.2 billion offering of Structured Pass-Through K-Certificates (K-098 Certificates), which are backed by underlying collateral consisting of fixed-rate multifamily mortgages with predominantly 10-year terms. The certificates are expected to settle on or about October 11, and are backed by corresponding classes issued by the FREMF 2019-K98 Mortgage Trust (K-98 Trust) and guaranteed by Freddie Mac. The K-98 Trust will also issue certificates consisting of the Class B, Class C, Class D and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-098 Certificates.

Pricing for the deal is as follows. Class A-1 has principal of $103.918 million, a weighted average life of 6.55 years, a coupon of 2.046 percent, a yield of 1.950 percent, and a $100.4955 price. Class A-2 has principal of $1,069.450 million, a weighted average life of 9.77 years, a coupon of 2.425 percent, a yield of 2.077 percent, and a $102.9936 price. Class A-M has principal of $61.001 million, a weighted average life of 9.87 years, a coupon of 2.146 percent, a yield of 2.139 percent, and a $99.9985 price. Class X1 has principal of $1,173.368 million, a weighted average life of 9.26 years, a coupon of 1.270 percent, a yield of 2.713 percent, and a $9.6369 price. Class X3 has principal of $200.945 million, a weighted average life of 9.62 years, a coupon of 2.069 percent, a yield of 4.207 percent, and a $15.9334 price. Class XAM will not be offered.

 

On October 3, Freddie Mac priced a new $715 million offering of Structured Pass-Through K-Certificates (K-F68 Certificates) backed by floating-rate multifamily mortgages with seven-year terms. The certificates are expected to settle on or about October 11, will not be rated, and will include one senior principal and interest class, one interest-only class, and one class entitled to static prepayment premiums. The K-F68 Certificates are backed by corresponding classes issued by the FREMF 2019-KF68 Mortgage Trust and guaranteed by Freddie Mac. The KF68 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-F68 Certificates and will not be guaranteed by Freddie Mac. Pricing for the one offered class is as follows. Class A has principal of $715.743 million, a weighted average life of 6.54 years, a yield of 1-month LIBOR + 49 bps, and an even $100 price.

 

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the un-guaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

Fannie Mae announced and priced a new issue 18-month SOFR floating-rate corporate debt due January 29, 2021. Details of the transaction are as follows. The debt has a pricing date of July 25, a settlement date of July 29, the aforementioned January 2021 maturity date, a $2.0 billion issue size priced at SOFR plus 4 bps, and a CUSIP of 3135G0V83.

In this low interest rate environment, Fannie Mae is attempting to customize flexible portfolio structures while the market copes with high premium bonds. That being said, Fannie Mae recently priced its seventh Multifamily DUS REMIC in 2019, totaling $802 million under its Fannie Mae Guaranteed Multifamily Structures program. FNA 2019-M12, which marks Fannie Mae’s 90th GeMS deal since Fannie Mae’s trading desk began to market its own REMIC products, has a UPB of $802.41 million, collateral comprised of 58 Fannie Mae DUS MBS, a geographic distribution primarily based in CA (22 percent), PA (20 percent), VA (12 percent), a weighted average debt service coverage ratio of 1.53x, and a weighted average LTV of 67.5 percent. All classes of FNA 2019-M12 are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal. For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2019-M12) available on the Fannie Mae GeMS Archive page http://www.fanniemae.com/portal/jsp/mbs/mbsmultifamily/gems_archive.html

Fannie Mae announced their latest front-end deal, a new Credit Insurance Risk Transfer (CIRT) transaction that, for the first time, covers a pool of primarily Single-Family affordable loans delivered with a short-term, lender repurchase obligation (provided primarily by state Housing Finance Agencies), which serves as the initial loan credit enhancement. With CIRT LR FE 2019-1, Fannie Mae has transferred to a panel of insurers and reinsurers additional credit risk beyond that absorbed by the lender repurchase obligation, providing front-end coverage of loans to be delivered to Fannie Mae over a forward 12-month period plus bulk coverage of existing loans, together insuring up to $1.75 billion of high loan-to-value ratios. In aggregate, the transaction will transfer up to approximately $154 million of credit risk. CIRT LR FE 2019-1 secures commitments from a panel of eight insurers and reinsurers to cover up to $1.15 billion in unpaid principal balance for loans to be acquired by Fannie Mae between July 2019 through June 2020.

Additionally, this transaction covers approximately $600 million in unpaid principal balance of loans previously acquired by the company between January 2018 through August 2018. All covered loans will be originated with fixed rate notes, original terms of 21 to 30 years, and loan-to-value ratios greater than 80 percent and less than or equal to 97 percent. Fannie Mae will retain risk for the first 250 basis points of loss on the aggregate covered pool. If the approximately $43 million retention layer is exhausted, reinsurers will cover the next 880 basis points of loss on the pool, up to a maximum coverage of approximately $154 million. Coverage for this deal is provided based upon actual losses for a term of 10.5 years from the effective date of June 1, 2019. Depending on the paydown of the insured pool and the principal amount of insured loans that become seriously delinquent, the aggregate coverage amount may be reduced at the 16th month following the effective date and each month thereafter. The coverage on this deal may be canceled by Fannie Mae at any time on or after the 66th month following the effective date by paying a cancellation fee. Fannie has now committed to acquire about $9.4 billion of insurance coverage on $360 billion of single-family loans through the CIRT program to date.

On September 19, Freddie Mac priced an $1.17 K-Certificate offering (K-S12) backed exclusively by three multifamily mortgages on seniors housing properties, each with floating-rate components and, collectively, forty-nine underlying properties controlled directly or indirectly by KKR, as described in the offering documents. K-S12 is expected to settle on or about September 27, 2019. This is Freddie Mac’s twelfth K Certificate offering backed exclusively by seniors housing. The one offered class, Class A, has principal of $1.17 billion, a weighted average life of 9.69 years, a coupon of 1-month LIBOR plus 65, and an even 100 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. Freddie Mac purchases 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. K-Deals are part of Freddie Mac’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

 

On September 18, Freddie Mac priced the $364 million K-J25 deal, backed by underlying collateral consisting of supplemental multifamily mortgages. The K-J25 Certificates are backed by corresponding classes issued by the FREMF 2019-KJ25 Mortgage Trust (KJ25 Trust) and guaranteed by Freddie Mac. The KJ25 Trust will also issue certificates consisting of class B and class R certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-J25 Certificates. Pricing for the two offered classes is as follows. Class A-1 has principal of $65.0 million, a weighted average life of 4.00 years, a coupon of 2.149 percent, a yield of 2.121 percent, and a $99.9994 dollar price. Class A-2 has principal of $298.855 million, a weighted average life of 5.27 years, a coupon of 2.61 percent, a yield of 2.215 percent, and a $101.9994 dollar price.

This is what we who are aged 70 or 80 years plus, can look forward to. This is something that happened at an assisted living center.

The people who lived there had small apartments, but they all ate at a central cafeteria. One morning one of the residents didn’t show up for breakfast so my wife went upstairs and knocked on his door to see if everything was OK. She could hear him through the door and he said that he was running late and would be down shortly, so she went back to the dining area.

An hour later he still hadn’t arrived, so she went back up towards his room, but found him on the stairs. He was coming down the stairs but was having a hard time. He had a death grip on the hand rail and seemed to have trouble getting his legs to work right.

She told him she was going to call an ambulance, but he told her no, he wasn’t in any pain and just wanted to have his breakfast. So, she helped him the rest of the way down the stairs and he had his breakfast.

When he tried to return to his room, he was completely unable to get up even the first stair step, so they called an ambulance for him.

A couple of hours later she called the hospital to see how he was doing. The receptionist there said he was fine, he just had both of his legs in one side of his boxer shorts.

I’m sending this to my children so that they don’t sell the house before they know all the facts.

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, “How Productive is Your Origination Team?” 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.)

 

Oct. 11: AE, MLO, corresp. jobs; marketing, pricing, DPA, 2nd lien products; vendor’s new wares

Fun with HMDA! Compliance folks everywhere know that yesterday the CFPB (“educate through education rather than enforcement”) issued a final rule amending Regulation C to extend the current temporary threshold of 500 open-end lines of credit to January 1, 2022. The final rule also incorporates into Regulation C the interpretations and procedures from the interpretive and procedural rule issued by the Bureau in August 2018, and further implements the amendments made to the Home Mortgage Disclosure Act by the Economic Growth, Regulatory Relief, and Consumer Protection Act. You can access the final rule here. The Bureau has also posted a summary of the final rule and an unofficial, informal redline reflecting changes to Regulation C to assist industry and other stakeholders.

Employment

“Do not miss out on this unique opportunity!! PCF Wholesale is looking to hire top notch Sales Associates who are actively producing a high volume of business. We PAY for proven production both in sign on bonus and increased commissions while ramping up. Get in early with a proven wholesale lender. Tired of legacy issues with a potential employer? Not getting compensated what you deserve? Missing out on various products? From agency to proprietary Non-QM, we have a home for your Brokers loans. We have tested and perfected and are now ready to expand. If you are an Account Executive, Sales Manager and or Regional Manager in the Wholesale Mortgage Space and are currently funding at least $5 million per month we want to talk to you. If you are interested, please email us (PCFwholesale.com): Built for Brokers.”

PRMG is Built by Originators for OriginatorsTM and is devoted to continuously growing its platform which includes Wholesale, Retail and Correspondent channels. Ranked within the Top 25 of the Best 100 Mortgage Companies and in the Top 5 of the 50 Best Companies to Work for in America, PRMG is on its way to becoming a billion dollar a month company with over $900 million funded in the month of August and September! If you are looking to work with a privately owned company that is large enough to serve you yet small enough to know you and is on the cutting edge of technology please contact Kevin Peranio.

Perch, a real estate technology company, is looking for a highly enthusiastic Mortgage Loan Officer who is passionate about serving Perch’s clients from Origination to Closing. Perch has offices in New York, Austin, Dallas and San Antonio, and raised over $50 million in financing from top tier investors. “We are looking for Home Loan Advisors (HLAs) to help serve our captive Real Estate clients. This is an exciting opportunity to join an early stage venture-backed company which serves its clients. The ideal candidate possesses deep lending knowledge and experience in Texas residential mortgage lending, including a valid Texas Residential Mortgage Loan Originator license”. For more information on the role and company, please see our full posting here.

Are you looking to work in a fast-paced, fast growth and positive environment with loads of opportunity? If so then we want you to join our team. Is culture important to you? Is compensation important to you? Is being with a company that values its employees important to you? If you answered yes to theses 3 questions you owe it to yourself to contact Carrington Mortgage Correspondent for a confidential conversation. Carrington Mortgage Correspondent is experiencing tremendous growth and we are hiring for a number of positions immediately, including Purchasers, Relationship Managers and Loan Setup personnel. If interested please contact John Cervantes.

 

Lender products & services

Evolve Mortgage Services/Signia Documents recently added Katie Paolangeli to its experienced eMortgage team. Katie has been aiding the mortgage industry’s move to electronic mortgages for 15+ years, spending the past 14 years as a key member of MERS serving as VP of eCommerce. She was the project lead for the MERS® eRegistry and oversaw the integration of dozens of MERS members onto the eRegistry. She joins a team led by Charlie Epperson, widely considered a founding father of the eMortgage space, and who currently sits on the board at MISMO and chairs the Education Committee. Evolve/Signia is leading the way towards a truly digital mortgage and eClosing using data from end to end with an entire library of Category 1 SMART Docs and unmatched expertise in the space. SMART Docs eliminate OCR and scanning PDFs, allowing seamless and accurate data flow from application to close. Contact Mike Romano to learn more.

Spring EQ Wholesale, the industry’s premier second lien lender, offers 95% combo, 100% CLTV stand-alone and pays Lender Paid Compensation (LPC) up to $10,000. Spring EQ is excited to announce the following product enhancements: FICO score tiers have been lowered (700 FICO for 100% CLTV, 660 FICO for 90% CLTV, 640 FICO for 70% CLTV), investment properties now allowed to 70% CLTV, and debt ratio’s allowed to 50% DTI.  In addition, fixed rates have been lowered up to 190 Bps. Spring EQ is now offering fixed rates that are below the prime rate, which is the HELOC rates index, a fiscally responsible, budget friendly way for clients with needs to tap their available equity. For more information, or to partner, please contact your Account Executive or visit Spring EQ Wholesale here.

In Tuesday, October 2’s Chrisman Report, a national lender referenced guidelines for down payment assistance (DPA) programs requiring a legal opinion per Mortgagee Letter 2019-06. CBC Mortgage Agency reminds the industry that FHA withdrew that letter in response to ligation. NONE of its provisions are in effect. As part of the litigation, FHA acknowledged that there are no jurisdictional limitations on government DPA providers (click here). Relatedly, industry rumors indicate that HUD plans to limit national government DPA programs by redefining what it means to improperly “financially benefit” from a transaction. Any new restrictions or definitions imposed by FHA on government DPA must be done through notice-and-comment rulemaking, which requires public participation and typically takes 12-24 months to complete. To support any new rule, HUD must first collect loan performance data on individual programs. Since such a rule would significantly impact tribes, HUD must also conduct meaningful tribal consultation.

What if you had a marketing technology solution that equipped you to close 5.9 more loans per year – per LO? What if you could increase your ROI by as much as 321% and reach payback for your technology solution in less than nine months? These are just a few of the findings uncovered in TheTotal Economic Impact™ of the Total Expert Marketing Operating System (MOS), a Total Expert commissioned study conducted by Forrester Consulting. Join our live webinar on Oct. 15 at 1 p.m. as we explore how leading financial brands are leveraging the Total Expert MOS to increase productivity and drive optimal business outcomes.

Vendor developments: they do other things besides combine 2 words into 1

Yesterday Finicity announced it has partnered with American Financial Resources (AFR) to provide “a faster, simpler and more secure way to verify assets and income while originating loans… Through Finicity’s verification platform, borrower assets can be confirmed within minutes, without the need to find, copy and scan piles of paper documents for verification. This can reduce the mortgage origination time by more than a week while eliminating the hassle of paper documents and manual processes.”

Sun West Mortgage Company today announced its decision to license Cloudvirga, a digital mortgage point-of-sale software provider, and its growing suite of technology offerings to Sun West Mortgage loan offers and borrowers. Sun West will become the first Cloudvirga customer to utilize a pair of exclusive new technology offerings, DocCertainty and HomDNA, within its point-of-sale software, the Cloudvirga Digital Mortgage Platform. And Cloudvirga and Envoy Mortgage Ltd, an independently owned national mortgage lender serving retail originators, have partnered to provide the Cloudvirga Digital Mortgage Platform to Envoy Mortgage loan officers and borrowers.

Homebot, Inc. announced enhancements to its refinance module, including the addition of support for adjustable-rate mortgages. The interactive module helps Aiming to address volatile market conditions, the module allows homeowners to easily explore various refinance options. Homebot lets the homeowner indicate the number of years they plan to remain in their home, then automates the complex amortizations and calculations to present wealth-building potential with hypothetical refi scenarios. This is all completed in real time and tailored to the homeowner’s unique financial situation. Loan officers can track refi module engagement, enabling them to contact clients at the right time with professional guidance about refinancing.

Finastra launched its Fusion Mortgagebot Data Insights Tool. The machine-learning driven tool will provide banks and credit unions with powerful data and analytics about mortgage borrower behavior to assist with developing strategic revenue-generating portfolios. And Finastra announced a new development to its open banking platform, FusionFabric.cloud, in partnership with Monotto. This partnership has led to the release of Monotto’s latest personal savings tool: RoboSave. The tool was built in collaboration with banks and credit unions and serves as another example of artificial intelligence’s ability to automate personal savings. RoboSave, looks at the way users spend money, calculating how much they would need in their safety net to take on life’s emergencies. Using AI, RoboSave determines how much consumers can save without affecting spending habits and automatically draws it into a personalized savings pot.

DocMagic has completed an integration with cloud-based loan origination system (LOS) provider LendingPad from WEI Technology LLC, offering its document preparation services directly from within the LendingPad environment. The new integration was completed in only 60 days and provides seamless access to DocMagic’s fully TRID-compliant documents, state-specific disclosures and paperless digital mortgage process. Users can order, generate, manage, receive and deliver electronically signed TRID-compliant documents such as the loan estimate (LE), closing disclosure (CD) and other relevant lending documentation. DocMagic’s Audit Engine automates data and document validation throughout key phases in the lending process with continuous compliance checks, providing accuracy always.

Capital markets

MCT is proud to announce the addition of the Freddie Mac Cash-Released XChange browse price API to the integration between Freddie Mac and the MCTlive! platform. Leveraging the browse price API, MCTlive! lenders can now accurately and conveniently utilize Freddie Mac Cash-Released XChange in their best execution analysis. Prior to the addition of this API, pricing a large population of loans individually via Freddie Mac’s Loan Selling Advisor was manual and time-consuming. Alternatively, the typical practice of using a single scenario-based rate sheet often results in inaccuracies of 30+ BPS when factors such as state or loan amount differ from the proxy scenario. Through the new Freddie Mac Cash-Released XChange API on MCTlive!, loan populations of any size receive loan-level, characteristic-based pricing with a single click. Combined with MCTlive! Rapid Commit, lenders can take advantage of an accurate, end-to-end process for these executions for the first time. LEARN MORE

Why’d rates go up yesterday? The same reason they’ve been going up and down for the last several months: trade chatter. The U.S. and China began two days of talks aimed at easing hostilities in the 18-month trade war, with both sides signaling cautious optimism in securing a partial deal that could lead to a temporary truce on tariffs. Markets seem to believe something will be done to avoid the next round of tariff increases. U.S. Treasuries retreated to their highest levels of the month, including the 10-year closing the day +7 bps to 1.66 percent, though this was as much due to a cool September CPI report as the lack of specifics reported about the trade talks. The year over year CPI changes remained the same as in August, and that firming could give the Fed some possible cover to hold off on a rate cut later this month. Finally, the $16 billion 30-year bond reopening Treasury auction saw lukewarm demand, and the selloff coincided with hopeful talk surrounding Brexit.

I’m sending this out darned early, so can only guess that rates will be a little up, down, or unchanged when bonds start trading. We have news ahead today of little consequence: Import & Export prices for September, preliminary October Michigan sentiment, remarks from three Fed presidents (Minneapolis’ Kashkari, Boston’s Rosengren, and Dallas’ Kaplan). Have a great Friday, and don’t forget that the U.S. bond markets are closed Monday, and pricing folks will be a little defensive – and rightly so.

From Dallas I received:

Three sisters age 92, 94 and 96 live in a house together.

One night the 96-year old draws a bath, puts her foot in and pauses. She yells down the stairs, “Was I getting in or out of the bath?”

The 94-year old yells back, “I don’t know, I’ll come up and see.”

She starts up the stairs and pauses, then she yells, “Was I going up the stairs or coming down?”

The 92-year old was sitting at the kitchen table having tea listening to her sisters. She shakes her head and says, “I sure hope I never get that forgetful.” She knocks on wood for good measure.

She then yells, “I’ll come up and help both of you as soon as I see who’s at the door.”

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “How Productive is Your Origination Team?” 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.)