June 7: Compliance, AE, LO jobs; broker, non-QM products; tariffs & rates; non-QM & expanded products across the biz

Today is National Doughnut Day, but those in financial services are probably more interested in U.S. equities having their second-best day of the year Tuesday after Federal Reserve Chairman Jerome Powell said the central bank was receptive to cutting interest rates to ease the effect of trade tensions on the economy. Powell said the Fed will “act as appropriate to sustain the expansion.” Say what you will about the tariffs, many are quick to point out that it is convenient that President Trump (like nearly every president before him) has been trying to have the Fed reduce short term rates, but has also been the one creating the trade tensions. Aside from those holding mortgage servicing, due to prepayment risk, most lenders are just fine with the lower rates. (More in the cap markets section.)

Jobs, promotions, transitions

A mid-size independent residential mortgage lender in southern New Jersey (easy commute from Philadelphia) is seeking a qualified candidate for the role of VP of Compliance with the following experience and expertise. A minimum of 5 years in mortgage banking in regulatory compliance. This role will be required to have a strong working knowledge of federal mortgage compliance (including but not limited to Fair Lending, S.A.F.E. Act, HMDA, and RESPA), state mortgage compliance and state examination preparation, management, and remediation, experience in the administration and change management of a compliance management system (CMS), experience in the administrative management of a MLO compensation program, Anti-Money Laundering, and consumer complaint processing, and the ability to manage, change, and create policies and procedures. Candidates looking to work within a dynamic and supportive culture should inquire about this role with Anjelica Nixt.

Homespire Mortgage Corporation, one of the country’s fastest-growing independent mortgage companies currently licensed in 35 states and DC, is pleased to announce it has been approved as a seller/servicer by the Federal National Mortgage Association (Fannie Mae). “We are very proud to be recognized as a seller and servicer by Fannie Mae,” said Michael Rappaport, President of Homespire Mortgage Corporation. “Homespire Mortgage continues to expand its national presence thanks to the hard work our employees have dedicated to our ongoing growth plans. This distinction allows Homespire Mortgage to expand its product offering and retain mortgage servicing rights. Homespire Mortgage was founded in 2006 in Gaithersburg, MD. The company is already an approved Freddie Mac servicer and has plans to obtain its Ginnie Mae approval in 2019. Homespire Mortgage continues to receive national recognition – being named among the list of “America’s Fastest Growing Companies” the past two consecutive years by Inc. 5000 and “Best Mortgage Companies to Work For” by NMN.

Orion Lending is elevating its growing business with the addition of Tracey Corbett, Senior Vice President of Business Strategy. With an established reputation in the Wholesale market regarding effective technology and consistent broker satisfaction, Orion is making yet another impact with this exciting addition. Tracey is bringing her 20+ years of experience in tactical strategies and process enhancements to further strengthen the Orion experience. Her enthusiastic passion for the mortgage industry will drive new product development for Orion’s portfolio and enhance their proprietary broker portal, STAR. Tracey brings exquisite technical expertise to implement strategic initiatives and manage corporate projects. It’s a new dawn on the horizon for Orion, and their newest senior leader, Tracey Corbett.

Guaranty Home Mortgage Corporation announces the addition of Todd Carte, VP Eastern Regional Manager to the staff. “Todd brings more than 25 years’ experience in mortgage lending throughout the nation. We are excited to have a seasoned industry veteran join the GHMC family,” stated Chip Adkins, SVP. Carte will focus his efforts on developing a comprehensive and strategic plan aimed at increasing regional and national sales for GHMC. Carte joins GHMC after 10 years as a Divisional VP of Wholesale and Non-Delegated Lending at a major retail lender where he was responsible for the bank and credit division, developing and initiating sales strategies and recruiting and developing staff. Guaranty Home Mortgage Corporation, one of the nation’s top home loan providers is expanding its presence nationwide as demand for mortgages increases. The Murfreesboro-headquartered mortgage company is a locally owned, billion-dollar mortgage lender. The company markets mortgages nationally.

PRMG Retail continues to experience accelerated growth and expand their national footprint by opening 3 new branches during the month of May!  Along with the drive and ambition to bring the American Dream of Homeownership to all cities across the country, PRMG has now opened its doors in Honolulu, HI; Oakbrook Terrace, IL and Sacramento, CA. Ranked No. 1 for mortgage companies employing over 500 employees by Mortgage Professional America (MPA), Voted TOP 5 of the 50 Best Companies to Work for in America, NMP Visionary Organization 2017, CAMP Corporate Affiliate of the Year 2017, TOP 25 of 100 Mortgage Companies in America, Top 25 Companies to Work for Minorities and Women by NAMMBA and MORE! PRMG is Built by Originators for OriginatorsTM and is devoted to continuously growing their retail platform.  If you are a motivated Loan Originator who wants to be progressively better, contact Chris Sorensen (909.262.0452).

Lender products & services

Announcing IMPAC’s biggest pricing special ever and the launch of iPrice Mobile! Now is the time to take advantage of our June pricing special, offering a 50 BPS pricing enhancement on all of our Non-QM loan products including Bank Statement, Investor, Agency Plus and Asset Qualification. iPrice Mobile get Non-QM loan pricing anytime, anywhere. Now available for the first time on the App Store for Apple and Google Play for Android devices, iPrice Mobile makes pricing your loan easier and more convenient than ever. Try it now! If you’re not an approved broker with us yet, get started or submit your broker application today. It’s time to experience Non-QM done right.”

NewRez Wholesale recently launched a new Product and Pricing Engine! “Our broker partners now have a self-serve lock desk and consulting service at their fingertips. Quickly find the right product by filtering through product groups and/or loan terms. Lock the desired loan scenario right from the search screen. Contact your AE today to learn how the Product and Pricing engine can help you close more loans.”

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

Caliber Home Loans, Inc. is excited to grow our digital enhancements and be part of the initial group of lenders integrating with ARIVE. ARIVE, a fully integrated broker environment will allow Caliber Wholesale’s business partners to shop all of our products ranging from conventional, government, and non-agency loan products with one platform. Partners can check price and run eligibility, and upon selecting the best Caliber product for their borrower’s needs, can create the loan! We look forward to offering improved efficiencies and streamlined process for our business partners. Please contact your account executive or newclientinquiry@caliberhomelaons.com for more details.”

Expanded products, misc. underwriting changes, and a clarification

First, a clarification on a note from yesterday regarding an ex-LO that I ran into who was a reader of my commentary from many years ago. I wrote, “It turns out he was an LO with Bay Capital in Maryland before being washed out of the biz ten years ago…” Just to be perfectly clear, he was the one who left the business, not Bay Capital. Leo Dunn founded Bay Banc Mortgage 25 years ago, later changing the name to Bay Capital Mortgage, and it is alive and well.

Have you ever had a borrower apply for credit and be denied because of their credit score? Consumers should be aware that if a financial institution uses a credit score to deny a consumer loan, the Fair Credit Reporting Act (FCRA) requires the financial institution to provide the applicant with 9 specific pieces of information.

AHL Wholesale now offers Verification of Employment ONLY.

Ditech has a new 12 Month Bank Statement program “NINE”. Self-employed borrowers and borrowers earning rental income can be qualified using 12 months bank statements rather than tax returns. Count on the NINE Bank Statement Calculator for an easy and accurate way to determine eligible deposits and income. Ditech’s eligibility and underwriting guidelines for the Expanded Criteria products have been revised effective for all loans with an application date on or after May 31, 2019. All loans submitted using prior guidelines must be submitted for review by July 1, 2019. The LTV, credit score and DTI ratio requirements have been enhanced. Also added, the addition of the No Income No Employment (NINE) documentation type. As a reminder, all loans must be submitted to ditech for underwriting. Delegated underwriting is not permitted.

Citadel Servicing Corp. offers Non-Prime Lending with No Reserve Requirements. “Qualify Your Borrowers” with Citadel’s ONE Month Bank Statement Program.

ACC Mortgage offers a NIVA Investment Program – No Income and No Reserves Required for Investment Properties.

loanDepot Wholesale has expanded its 40 Year Interest Only Program with the following changes: expanded LTV options, minimum FICO score 680 to 95% LTV, maximum DTI’s expanded to 50% under certain scenarios, non-occupant co-borrowers are now eligible for Purchases and R/T Refinances and more. Refer to its Announcement for additional changes highlighted in yellow. 

LoanStream Mortgage announced a new Credit Grade on its NanQ Product Line: LoanStream “Select”. And LoanStream has updated its NANQ guidelines and has introduced its NANQ ONE Program.

There were enhancements to Excelerate Capital’s Diamond Plus Program that included .50% base rate improvement, pre-payment payment reduction and no reserves 1.5M limit, but the loans had to fund a few months ago. Contact Rachael To for what they’re up to now.

Mountain West Financial Wholesale posted a new alert referencing multiple UW guideline additions and changes. Topics include manufactured home requirements, seasonal income, commercial use, single entity ownership in a project and mortgage with less than 1-year seasoning. Mountain West Financial Wholesale underwriting guideline changes have been implemented within the UW Manuals/Product Matrices. Topics include Ineligible Income, Maximum Properties Owned by Borrower, Escrow Holdbacks, Commission Income and more.

Land Home Financial Services offers programs that allow utilization of personal banks statements for income verification as well as Non-QM Foreign National loans. Contact Mark Sheridan.

PRMG announced several expansions to the Expanded Access product, primarily to the AA Credit option. Some of the enhancements on the AA credit grade include that the DTI is now allowed up to 50% without additional restrictions, maximum cash out increased from $1 million to $1.5 million, first-time home buyer restrictions removed, interest only now allowed on non-owner occupied and second homes and max number of financed properties increased from 10 to 15.  Refer to its profiles for additional information. Due to the updates PRMG had made to its Expanded Access product, it has been split into two separate profiles. One for AA credit only and the other for B and C credit.  The A credit grade has been eliminated, as the B and C credit grades have been significantly expanded.

The PRMG Resource Center has received numerous updates. These changes include appraisal forms, training/instructional material, USDA forms and links and Bond/Housing Authority/DPA products. PRMG Product Profile Update 19-34 includes changes to Agency Portfolio, FHA products-condos, VA and VA High Balance, USDA, Ruby Jumbo, Closed-End Seconds, Niche Conforming and Jumbo and Niche Alternative Access, CalHFA Conventional and WHEDA Advantage FHA and Conventional.

If you are looking for a faster and easier Condo approval, check out the Freedom Mortgage Wholesale Condo Advantage.

Citi Correspondent Lending’s Credit Policy Overlays document has been updated based on recent credit policy updates. Various overlay changes include Removals, Modifications and Additions. And it posted a bulletin with information on credit policy updates which include HomeReady and Home Possible Updates, verifying Social Security income, rental income lease agreements, Alimony and maintenance payments and second homes LPA transactions.

US Bank Correspondent/HFA Seller Guide Update SEL-2019-021 covers multiple credit underwriting topics.

The PennyMac Correspondent Group posted information regarding Overlay Updates.

Plaza offers a High Balance Access Loan Program that bridges the gap between conventional conforming loans and jumbo, “giving your borrowers more options to decide how they want to finance their home.” Program features include: Purchase up to 90% LTV with no MI; refinance up to 80% LTV. Min 680 FICO; Max 43% DTI. Loan amounts from $484,351 to $726,525. DU® Approve/Ineligible due only to loan amount. Eligible for primary residences and second homes.

Buyers with Recent Chapter 7 or 13 Bankruptcies, Foreclosure, etc. shave buying options with Carrington Wholesale Non-QM loans. Carrington is offering improved pricing on its Carrington Flexible Advantage and Carrington Flexible Advantage Plus loan programs to reflect the following: Price improved by 25 bps across the board (Carrington Flexible Advantage). Price improved by 50 bps across the board (Carrington Flexible Advantage Plus). View its Matrix for more information.

Capital markets

The International Monetary Fund and the Federal Reserve have separately warned that intensifying trade tensions and tariffs are endangering growth of the US and global economies. The IMF says it is crucial that the US resolve its dispute with China because the global trading system is being undermined by use of tariffs to put pressure on China. And as economist Elliot Eisenberg points out, “The widening tariff wars are a double whammy for banks. First, falling interest rates are squeezing the gap between what banks charge borrowers and what they pay depositors, known as net interest margin, which necessarily discourages lending. Moreover, as firms and households get nervous, they borrow less and that reduces loan demand. Not surprisingly, bank shares fell 10% in May as trade tensions with China and Mexico skyrocketed.”

Aside from some yield curve movement, despite starting off with a nice rally Thursday was a bit of a dull day and the U.S. 10-year closing unchanged at 2.12%. Markets received positive domestic data and uncertain international readings. The Federal Reserve Bank of Atlanta’s Q2 GDPNow forecast was revised upward, nonfarm business sector productivity increased in Q1 while unit labor costs decreased (indicating muted inflationary pressures), and the trade deficit narrowed to $50.8 billion in April as exports fell off less strongly than imports since March, though the monthly deficit level has not changed much over the past year.

Internationally, Fitch cut Mexico’s sovereign rating and revising the outlook to “Stable,” while Moody’s cut the country’s outlook to Negative from Stable, and news outlets reported no concrete progress in U.S. discussions with Mexican officials. The Reserve Bank of India cut its expectations for FY20 growth in India. Oh, and President Trump reiterated that he will decide whether to impose a 25 percent tariff on $325 billion worth of imports from China shortly after the G-20 meeting at the end of June.

The May employment report kicked off today’s calendar: nonfarm payroll +75k (weak), unemployment rate unchanged at 3.6%, and hourly earnings +.2%. There is little else of consequence aside from two Fed District presidents scheduled: San Francisco’s Daly and Richmond’s Barkin. Fedspeak goes quiet after Barkin as they enter their traditional blackout period ahead of the June 18-19 FOMC meeting. After the weak employoment data we begin today with Agency MBS prices better by .250 and the 10-year yielding 2.07%.

What did the buffalo say to his son when he left for college?

“Bison.”

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, “Are You Ready for CECL?” 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.)

June 6: LO jobs; non-QM, pricing, reno products; vendor news; CFPB/Freedom settlement

Here on the 75th anniversary of D-Day, recall that, “Those who cannot remember the past are condemned to repeat it.” One could easily follow that with, “Those who remember the past can learn from it.” The death of Herb Sandler (Golden West Financial, sold to Wachovia for $24 billion in 2006; Wachovia was purchased by Wells Fargo in 2008) yesterday sparked discussions of loan programs and giving borrowers too much flexibility through the fabled Pick-a-Pay program. My guess is that if there were investors for it, or some similar program, plenty of lenders would jump on it again. The talk of eleven years ago reminded me that I was recently speaking to a funeral services salesman who California who surprisingly asked me if I sent out a commentary on the mortgage biz! It turns out he was an LO with Bay Capital in Maryland before he was washed out of the biz ten years ago – and read my commentary back then. Bay Capital lives on.

Jobs

loanDepot dominates again – securing the #1 Retail Volume Lender spot, back-to-back years, in both Scotsman Guide’s Top Mortgage Lenders issue, as well as Mortgage Executive Magazine’s Top 100 Mortgage Companies list for 2018. loanDepot’s fully digital mortgage, powerful lead aggregation platform, unique portfolio product suite, and Modern Lending Playbook training program are just a few of the reasons why the lender attracts top industry talent and tops the charts each year. Want to learn more about what makes us #1? Check out Our Story here, or reach out to Shane Stanton. loanDepot would also like to congratulate all the top lenders and originators out there that ranked on these respected and competitive lists!

You have tried the rest now, try the best! Going on its 6th year of its ALTA NonQM offering, LoanStream mortgage continues to be a service leader and product innovator. No Income, No Doc? No Problem! Need a solution for Jumbo loans up to $10M with alternative documentation options? No problem! Whatever your need, LoanStream is cutting through the clutter with their simple ONE Program and ONE rate sheet. They also continue to be the ONE Lender and one-stop shop for all agency and government needs. Brokers or Correspondents interested in signing up should contact clients@lsmortgage.com. Industry professionals interested in careers with LoanStream should contact inquiries@lsmortgage.com.

Lender services and products

Maxwell recently released its amazing four-part series, “A Crack in the Foundation?”

which examines the evolution of the mortgage industry & homeownership in America, with an eye on mortgage policies & how they can promote (or prohibit) periods of economic growth. To read the whole series, Start Here, or choose your own part below:

Part 1: Part 1: Fannie & Friends — The Evolution of Mortgage Policy from 1930-1969

Part 2: Three Decades of Red Flags — Mortgage Policy & Praxis, 1970-1999

Part 3: Sideswiped by the American Dream

Part 4: A Cautious New World.

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

BeAMortgageBroker.com.

One of the biggest myths in the industry is that there are no homes available for first-time homebuyers. Wrong. There are plenty of homes. People simply don’t know where to look. Over the last decade, at least 1.7 million housing units were deemed uninhabitable. What if these homes were made livable again and put back into the market? It’d be a win for lenders and borrowers, creating much-need housing stock. With the right education, communication and customer service, renovation loans can be executed effectively and make obsolete homes habitable again. TMS put together this in-depth list on the best practices for successfully executing a renovation loan to help lenders confidently provide them. It’s a win for everyone involved.

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

ClosingCorp, the leading provider of real estate closing cost data and technology, recently introduced SmartEngine, a software-as-a-service enterprise solution that captures and manages lender and investor fees across channels and platforms, assuring accuracy and reducing speed to market for new program. Used by a top five lender and touted for its ability to help lenders avoid fair lending pricing risk, this single centralized repository interfaces with commercial loan origination systems, point of sale solutions, pricing engines and internal proprietary systems to track and control lender fees, adjustments and overlays. Learn more about ClosingCorp and its products at closing.com

Announcing our biggest pricing special ever and the launch of iPrice Mobile! Now is the time to take advantage of our June pricing special, offering a 50 BPS pricing enhancement on all of our Non-QM loan products including Bank Statement, Investor, Agency Plus and Asset Qualification. iPrice Mobile–get Non-QM loan pricing anytime, anywhere. Now available for the first time on the Store for Apple and Play for Android devices, iPrice Mobile makes pricing your loan easier and more convenient than ever. Try it now! If you’re not an approved broker with us yet, started or submit your application today. It’s time to experience Non-QM done right.”

Vendor news

With over 1,400 vendors/service providers tumbling over each other, no wonder companies like The Mortgage List, Vendorly, and HQ Vendor Management have lots of interest. Vendors do plenty of things besides combine words or creatively spell to create their name. Let’s take a random look at what some have been up to.

Indecomm Global Services, a leading provider of business process as a service (BPaaS), software as a service (SaaS) technology, and learning solutions for the mortgage industry, today said that BBVA Compass has selected its IncomeGenius® software as the automated income calculation platform for its mortgage business. IncomeGenius® enhances the mortgage loan origination process by getting accurate income information right at the beginning of the loan transaction. It alerts the borrower about missing income documents and additional potential income and reduces tax return review time by as much as 50 percent.

CoreLogic® announced the availability of data and reports within the CoreLogic Store, a self-service, e-commerce portal providing instant access to leading property data and analytics from CoreLogic. Through the CoreLogic Store, small businesses and other industry professionals can obtain a variety of reports on properties, comparable sales, document images, automated valuation models and more without a long-term commitment. The CoreLogic Store provides nationwide information on properties, covering approximately 99% of U.S. residential properties. In total, the Store offers insights on more than 150 million residential and commercial parcels.

CERTIFID has released an educational eBook for the real estate industry to better understand and protect themselves from wire fraud. Clear to Close is a complete guide to understanding and preventing real estate wire fraud. Key points of information include how it happens, parties affected, why it happens, fraud strategies to look for, how to prevent, how to recover and understanding insurance coverage.

Ellie Mae launched Encompass Digital Lending Platform™ 19.2. The latest release will help lenders of all sizes originate more loans across a wider variety of loan types, capitalize on the growing HELOC demand, sell and deliver loans more efficiently, provide a better loan officer experience and leverage the power of data to make better decisions faster. Key highlights for the Encompass Digital Lending Platform 19.2 release include: Temporary buydown and enhanced HELOC support, Expanded Investor delivery services, Encompass Consumer Connect Single Sign-On (SSO), Loan officer workflow enhancements, and new loan audit capabilities.

Ellie Mae announced an expansion of Encompass Investor Connect™ with partnerships that now include seven of the ten largest correspondent investors: AmeriHome, Flagstar Bank, Franklin American Mortgage, Mr. Cooper, NewRez (formerly New Penn Financial), TMS and Wells Fargo, as well as other top ten banks, with more partnerships to be announced in the coming quarters.

Calyx Software now has a new brand identity, website, and enhanced service options for customers.

Promontory Fulfillment Services LLC (PFS), a mortgage fulfillment services that include an advanced digital point-of-sale solution, announced that its white-label mortgage origination platform is now integrated with ComplianceEase’s automated compliance solution, ComplianceAnalyzer®. The integration with ComplianceAnalyzer allows PFS to automatically audit mortgage loans for regulatory compliance with all federal, state and municipal regulations, including TRID and QM, as well as federal and state high-cost and anti-predatory lending violations. The solution also audits for compliance guidelines set by the secondary market and government-sponsored enterprises. Both PFS’ mortgage fulfillment services and ComplianceAnalyzer are endorsed solutions by the American Bankers Association.

Roostify has partnered with Docutech for enhanced eSign and eClose capabilities within the platform. Consumers can view, complete, and eSign documents, all within the Roostify platform. Everything created and signed inside the platform is compliant with federal, state and local regulations. By leveraging Docutech’s ConformX dynamic document generation engine and Solex eSign platforms, mortgage disclosure documents are created and presented to the consumer for completion and signature without having to use an outside application. Roostify’s digital-first platform is accessible on mobile devices allowing a much quicker closing time. In addition to disclosure forms, the Docutech integration now gives Roostify’s customers access to eClosing solutions, which enable a more efficient and streamlined closing experience for consumers, lenders, and third parties.

Freedom Mortgage settlement

The Consumer Financial Protection Bureau (CFPB) announced it had settled a consent order with Freedom Mortgage Corporation over errors in reporting on mortgage transactions. The CFPB found that Freedom had violated the provisions of the Home Mortgage Disclosure Act by reporting inaccurate race, ethnicity and sex information “and that much of Freedom’s loan officers’ recording of this incorrect information was intentional.” Freedom will pay a civil penalty of $1.75 million and “take steps to improve its compliance management to prevent future violations.”

Capital markets

Of course mortgage rates are “sticky” on the downside versus movements in the Treasury market. That should be a surprise to no one. Capital markets pricing folks don’t ever push rates down as fast as we push rates higher for a variety of reasons. No one knows for sure if rates will stay down, it is a good time to add some margin and keep control of locks, and it dampens rate lock renegotiations on existing locks.

Yesterday lower coupon mortgages didn’t do well relative to other coupons, and U.S. Treasuries ended Wednesday on a mixed note, as supply and demand was impacted by yield curve steepening amid growing speculation of an imminent rate cut. The 2-year yield closed -4 bps while the 30-year yield closed +3 bps, meaning shorter term treasuries were less appealing to investors at higher yields, and longer dated Treasuries now being seen as a less volatile and safer investment by comparison. The release of a much weaker than expected ADP Employment Report for May (the lowest print in nearly 10 years) helped drive both short-term market uncertainty and rate cut expectations higher.

The Federal Reserve’s June Beige Book described economic activity during the survey period as expanding at a “modest” pace but the fed funds futures market sees nearly a 70 percent implied likelihood of a rate cut at the July 30 FOMC meeting while the implied probability of another cut in September sits just above 56 percent. The World Bank lowered its 2019 global GDP growth forecast, the IMF lowered its 2019 and 2020 forecast for GDP growth in China, Hong Kong’s Manufacturing PMI fell deeper into contraction in May, Australia’s Q1 GDP missed expectations, South Korea’s April Current Account recorded first deficit in seven years, and India’s May Nikkei Services PMI decreased.

Today has already seen the latest ECB decision (unchanged into 2020) and statement. European Central Bank head Draghi’s press conference is currently under way. Domestically, Challenger, Gray & Christmas announced layoffs for May (+46% to 59k), we received initial claims for the week ending June 1 (218k), April’s trade deficit ($50.8 billion), Q1 productivity (+3.4%) and unit labor costs (-1.6%) and Dallas Fed Kaplan delivering remarks. Later New York Fed President Williams speaks. We begin today with Agency MBS prices better by .250 and the 10-year yielding 2.09%.

I tried to explain to my 4-year-old son that it’s perfectly normal to accidentally poop in your pants.

But he’s still making fun of me.

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, “Are You Ready for CECL?” 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.)

June 5: LO jobs; sales, digital, cost-saving products; upcoming events & free training; company moves and M&A

I was walking by a classroom recently and I overhead the teacher telling the 1st graders, “Let’s work really hard today – your parents are eager for deliverables.” There are certainly some lenders out there delivering… deliverables. As if someone hit a light switch, many conversations I have around the nation no longer involve “margin compression” and “cutbacks” but instead involve the terms “pricing to manage capacity” and “record lock month.” Can anyone say, “cyclical business”? Residential applications were only up 1.5% last week, but lots of lenders and vendors are “bulled up” and small companies, who earlier this year were contemplating selling their companies or merging, are excited about the future. Fun! Of course with lower rates, prepay speeds are now projected to jump, hurting servicing values.

Employment & transitions

Mason-McDuffie Mortgage is expanding its footprint in South and Southwest by welcoming on its team industry influencer and mortgage veteran Phil Treadwell as Regional Manager and VP of Business Development. “Mason-McDuffie’s focus is to grow our production by bringing in professionals who understand the importance of social media and modern marketing,” said, CEO Marilyn Richardson. “Phil fits that mold with his top-rated Mortgage Marketing Expert Podcast and various speaking engagements on the topic of social media.” Along with his podcast, Phil is the co-founder of the Industry Syndicate, Real Estate’s first Media Network and also sits on the content advisory board of HousingWire. “We couldn’t be more excited to have someone of Phil’s caliber help grow our production team and take us to the next level.”

Georgia loan originators can see a 50-75 BPS pay raise when you originate for MortageRight! If you’re closing $12 million per year, this is an additional $5,000 per month by doing no more loans, or an additional $60,000 per year! We also offer a high-performance personal assistant and a dedicated in-house production team designed to help you increase production! If you’ve been losing loans due to pricing and getting stuck micro-managing your files with no time to go develop new referral relationships, contact us to see how you could leverage our proven systems to help you double your income this year. MortgageRight is the home of the aggressive compensation platform for producers who are looking to double their income. If you’re a Georgia loan originator whose business is completely self-generated, call Alvaro or Mike at (404) 551-3444 or check out the opportunity post here to learn more about this opportunity and receive your new comp plan in writing.”

NEXA Mortgage, the fastest growing mortgage broker in America, per growjo.com, is expanding. (Growjo is “a simple site with an intricate algorithm that indexes and predicts the fastest growing companies in the world. We love data, startups, and most of all, growth.”) “We are looking for a LOs and branches in AZ, CA, OR, WA, ID, CO, TX, UT, GA, FL and MT. Soon to be licensed in NC, SC, VA, MD, IL, WI, NM and NV. The time has come for you to start making the money you deserve. Nationwide broker production has surpassed banks, and NEXA helps transition bankers to brokers. Fantastic processors who only get paid when the deal closes, just like you. The Best Support in the Business. Be the low rate leader in your market,

and a product expert w/over 40 lenders, including top Non-QM lenders. If NEXA can’t do it, no one can. Click on the link for our rates www.NEXArates.com. An industry disruptive compensation plan including Revenue Share. Contact Michael Neill or click on NEXA to set up a ‘Why NEXA’ Zoom meeting.”

GSF Mortgage Corporation’s (GSF) Single Close Construction program is the preferred product of lenders across the nation for construction loans. As an expert in Single Close Construction loans, GSF is seeing month-after-month success and was recently featured in several top industry publications highlighting its culture, market outlook, and new products, including its Single Close Construction program. GSF is currently looking for talented Branch Managers and Area Managers to manage and develop its growing team. GSF leads the industry in leveraging new and innovative technology to help originators close more loans on time and earn amazing compensation. At GSF you will not only enjoy the support of a forward-thinking team but also access to tools to make your job more rewarding and more profitable. If you are interested in learning more about GSF’s lending philosophy, products or culture, please reach out to VP of Retail Lending, Frank Papaleo.

Valuation Partners announced that Karen Herr has joined as VP of its U.S. West region responsible for overseeing business development and new client services in California, Arizona, Utah, Nevada, Oregon, Washington, Idaho, Montana, Wyoming, Hawaii and Alaska.

Lender products & services

Regardless of market conditions, top producers are always able to stay out in front of the pack. Maxwell recently interviewed some of the country’s top-producing originators to understand how they’ve reached (and maintained) such a high level of success in a fluctuating market. Its new eBook“14 Habits of High-Producing Loan Officers,” 

highlights the tips and tricks that help them stand out from the competition. A must-read for ambitious managers and originators looking to elevate their performance. No form required; no strings attached. Just one click to download your PDF: Click Here.

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

With the market as volatile as it is right now, it’s really important to get back to the basics of successful lending – by optimizing ROI, reducing loan fallout and closing more loans. Credit Plus has developed a suite of products called CloseCAPTURE to help lenders be more productive and profitable. CloseCAPTURE directly addresses some of the most prevalent challenges lenders are struggling with today: Reducing credit report costs; Qualifying more applicants with credit score issues; Preventing approved applicants from going elsewhere; Finding more quality leads; Retaining portfolios. For more information about this unique set of solutions, watch this 3 minute video. You can also speak with a Credit Plus account executive to learn how CloseCAPTURE can you. Simply send an email to info@creditplus.com.

Heading to MBA of Florida’s Secondary Market Conference and Annual Convention this month? Informative Research will be on deck and ready to talk about how you can manage mortgage loans costs in a competitive market. Stop by Booth 6 and learn more about their full-proof strategy that will cut your credit report costs by at least 40% and help you qualify more applicants. Losing borrowers early in the mortgage process leaves lenders footing the bill for upfront application expenses. Get the most out of this conference by learning how to save big on out-of-pocket expenses and investing more in qualified borrowers. Finish your first half of 2019 strong and start making a bigger impact on your bottom line. Reach out to our IR team members Kimberly or Dan to schedule a meeting now!

Choosing the right digital lending software: For in-house teams who are still looking, evaluating, and testing digital lending platforms, Blend has compiled a guide of our customers’ collective advice. We hope it shines some light on what we know can be an incredibly intimidating process. Download the white paper.

“OMG!! What a fantastic presentation. Alex Kutsishin Co-Founder, CEO and Chief ROI Booster at Sales Boomerang delivers insane value and information in less than 10 minutes. Alex talks about how lenders can create their own REFI BOOM year-round and the points he makes are spot on. Alex also shows how much money lenders are losing from their own database, so when you watch this video try not to get sick to your stomach because the numbers are devastating and clearly a reflection on how much better we can do as an industry if we had a solid understanding of our own customer base. If you are serious about growing your volume, growing your team, making a real impact on your company then this and take notes and then go and schedule a demo with Sales Boomerang.”

Company moves

Legal folks are following Flagstar’s complaint against Michael Hild, CEO of the now defunct Live Well, regarding unpaid loans worth more than $82 million. But from Texas comes news that Austin’s Open Mortgage has hired Live Well Financial’s core team of mortgage lending executives (Bruce Barnes, Jim Cory and Joshua Moran, formerly EVP, SVP of Ops, and SVP of Wholesale & Correspondent Lending, respectively) and approximately 50 sales and operations employees to expand the company’s retail, wholesale, principal agent and closed loan seller mortgage channels.

A couple states over we apparently have the first Arizona deal where a credit union is purchasing a bank. In the deal, subject to regulatory approval and expected to close by year end with no jobs being lost, Pinnacle Bank is being acquired by Arizona Federal. “The transaction will be structured with Arizona Federal purchasing all of the assets and assuming all of the liabilities of Pinnacle Bank. Arizona Federal is a federally insured $1.6 billion, 125,000-member credit union headquartered in Phoenix, Arizona since 1936, chartered and regulated under the authority of the National Credit Union Administration (NCUA).

“Our branch locations will also be maintained, and incorporated with Arizona Federal’s, resulting in a network of 16 service locations throughout the Metro Phoenix area… Once complete, our combined organization will have over $1.8 billion in assets, and serve over 127,000 members throughout the Valley of the Sun.”

Trainings and Events into mid-June

Register for the Altisource Lunch and Learn on Tuesday, June 11th at McCormick & Schmick’s in Kansas City. Industry attorney Brian Levy and I will discuss the state of the U.S. housing market, non-QM lending, and offshoring.

MGIC’s June Webinar Schedule is now available. Training topics include Facebook Strategies for Mortgage Professionals, How to Evaluate and Calculate Borrower Income – Focus on Base, Hourly, Overtime, Bonus and Commission, Self-Employed Borrowers – Focus on the Sole Proprietor and Rental Income, Plus registration for Special Events.

Ditech Business Lending released its June Client Development Calendar. Agency High LTV Option sessions, highlighting the HARP replacement has been added as well as Expanded Criteria product sessions featuring Alternative Documentation styles including Bank Statement usage.

FAMC Wholesale has published its June 2019 Wholesale Customer Training Calendar.

Training opportunities include: Analyzing Appraisals, 5 Tips to More:  More Business, More Referrals, and More Loyalty, Facebook Strategies for Mortgage Professionals, Follow the Trends – Top Social Media Tips in 2019, Selling in a Purchase Market.

Join Plaza’s webinar Opening Doors to Homeownership on Monday, June 10th: economic trends and forecasts that impact the housing industry, the real biggest obstacle today’s homebuyers face and down payment solutions.

Register for Freddie Mac’s Community Classroom Webinar, Underwriting Income and Employment on Tuesday, June 11th: recent revisions to income starting after the note date, assets as a basis for mortgage qualification, and alimony & separate maintenance income.

INDECOMM Global Services is offering a webinar on June 12th to provide information on Solving Loan Set Up Challenges with Automation.

FHA has a new on-site FHA Underwriting Training in West Fargo, ND on Tuesday, June 11th, from 8:30 AM to 4:30 PM (Central). And FHA has a new on-site FHA Appraisal Training in West Fargo, ND on Wednesday, June 12th, from 8:30 AM to 4:30 PM (Central). This training is intended primarily for appraisers; however, other industry professionals may also benefit from attending. Priority will be given to appraisers. Reminder: There is no charge for training courses and webinars offered by the FHA.

Ellie Mae announced the Uniform Residential Loan Application (URLA) Training Roadshow will be coming to 14 locations across the United States in preparation of the mandatory changes that are coming in Feb. 2020. The URLA Training Roadshow offers Encompass®-specific training to help Encompass system administrators and end-users gain first-hand experience and personal guidance with all new URLA functionality.

Capital markets

The Fed preached patience and U.S. Treasuries pulled back yesterday for the first time in over a week, including the 10-year closing +4 bps to 2.12 percent, as markets had a lot of dialog to digest. Fed Chairman Powell said the FOMC will “act as appropriate” to sustain the economic expansion (read: the Fed is exhibiting more willingness to cut the fed funds rate range, especially as Trump’s tariff moves suppress the U.S. economy), and Chicago Fed President Evans struck a similar tone when he said that a “light tilt” to accommodation would be acceptable. Domestic data showed factory orders in April beat expectations but still displayed weak business investment, evidenced by the decline in non-defense capital goods orders excluding aircraft. Internationally, Japan’s Economy Minister said that working-level trade talks will be held with officials from the U.S. next week; and the Eurozone’s Unemployment Rate decreased to a decade low in April.

MBA mortgage applications for the holiday-adjusted week ending May 31 kicked off today’s calendar (+1.5% due to refis). We have also had the May ADP report (27k, 1/10 of the prior month’s gain – ugly!). Markit Services PMI for May and the ISM non-manufacturing PMI follow later. Finally, the latest Beige Book will be released this afternoon. Markets will receive another large round of Fed speak, with Chicago Fed President Evans, Vice Chair Clarida, Atlanta President Bostic, and Boston Fed President Rosengren all delivering remarks at some point throughout the day. And the Senate Banking Committee will hold a hearing on the re-nomination of Michelle Bowman to a full term on the Federal Reserve Board of Governors. We begin today with Agency MBS prices better .125-.250 versus Tuesday’s close and the 10-year yielding 2.09% after the depressing ADP figure.

A young boy enters a barber shop and the barber whispers to his customer, “This is the dumbest kid in the world. Watch while I prove it to you.”

The barber puts a dollar bill in one hand and two quarters in the other, then calls the boy over and asks, “Which do you want, son?” The boy takes the quarters and leaves.

“What did I tell you?” said the barber. “That kid never learns!”

Later, when the customer leaves, he sees the same young boy coming out of the ice cream parlor.

“Hey, son! May I ask you a question? Why did you take the quarters instead of the dollar bill?”

The boy licked his cone and replied:

“Because the day I take the dollar the game is over!”

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, “Are You Ready for CECL?” 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.)

June 4: LO jobs; broker, LO training, anti-fraud products; new MSR index; primer on tariffs, inflation, and rates

What does $3.4 million buy you in Joisey? A 5,600 square foot house on 1.5 acres. In this case, it was the house owned by New Jersey’s Tony and Carmela in The Sopranos. (Ducks in the pool not included.) What does $3.4 million take down in mountains of Colorado? How about 447 acres with a stunning ranch house.

Jobs

“Recruit better and smarter with Model Match. Model Match helps forward-thinking mortgage professionals source and attract qualified talent. Our powerful Talent Management Software (TMS) brings your entire pipeline and team into one central, collaborative space helping your efforts with candidates stay organized and on-track. The Model Match ecosystem was designed by Mortgage Recruiters, for Mortgage Recruiters. Combined with our Market Insights solution, we help eliminate the guesswork of prospecting allowing you to target producers doing the type and amount of business best matched to your organization. Set the criteria and we do the rest. We’ll identify and provide visibility into a complete production report including last fiscal year volume, trailing 12 months, most recent 90 days, unit counts, average loan amounts, product mix, contact details and much more. Click here to see the value Model Match brings to the industry.”

Award season is wrapping up, and Academy Mortgage and its Loan Officers have taken home several top honors for 2018. Scotsman Guide released its list of Top Mortgage Lenders, on which Academy ranks in the top 20 for Top Retail Volume and Top Overall Volume. Academy has 10 Loan Officers appear across Scotsman Guide’s lists of Top Originators for different categories, including Top Dollar Volume and Most Loans Closed. Mortgage Executive Magazine also names Academy in its top 20 of the Top 100 Mortgage Companies in America. An impressive 46 Academy Loan Officers rank on the publication’s list of the Top 1% in America, with five included in its Top 200 in America. Academy Loan Officers were also recognized by National Mortgage News, MPA Magazine, NMP Magazine, and HousingWire. If you’re interested in joining an award-winning company to power your Potential, contact Chad Melin, VP of National Business Development.

“Focused on the simplest path to homeownership for our loan officers and their clients, GoPrime Mortgage, Inc. believes in local service, local engagement and local lending. With unbeatable service, dedication to the best back-office support and top-notch technology – GoPrime Mortgage, Inc. will continue to go above and beyond for our team members so they can stay focused on delivering extraordinary service to their clients. We are thrilled to take the next step in customer service and community connections as GoPrime Mortgage, Inc. For more information about our new look, please visit our blogs at www.goprime.com.”

Lender services and products

Lending solutions provider Data Facts is offering a complimentary webinar on Wednesday, June 5 at 2pm CT. “The New URLA Update” webinar features industry expert David Luna, who will talk about the changes already taking place in the mortgage industry and how they will affect your ability to gain customers and close loans. Save your seat. Data Facts offers a full-circle portfolio of customizable solutions that helps lending professionals make sound decisions and maximize efficiencies. Its products include credit reports, verifications, flood, fraud, lead gen products, an appraisal ordering platform, and more. Data Facts offers a variety of seamless LOS integrations (Encompass, Calyx, Byte, etc.) and a 100% US based customer support team for personalized service. And it NEVER offshores your data! Enjoy a transformative digital mortgage experience at a cost-effective price that helps you drive efficiency, increase market share, and close more loans, faster and easier with Data Facts.

Facebook has made recent privacy changes that will have a big impact on how lenders utilize this social media giant. The good news? Updates to Facebook’s ad targeting and communication settings will make it far easier for lenders to get the most out of the platform. Read the full update here

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

Fundingshield is the market leading FinTech providing secure wire fraud prevention, closing agent vetting and closing document certification tools. FundingShield has the industry’s largest database of over 50,000 closing party accounts with current valid data allowing lenders to lower their cost, shorten SLAs and add to the bottom line.  FundingShield’s cloud-based, plug ‘n play, AI and machine learning cognitive solutions are the only FinTech solutions of their kind that are integrated into Ellie Mae’s Encompass LOS. Lenders can access FundingShield’s loan level Guardian & WAVs products to conduct validations of settlement party licenses, CPLs, good standing checks, bank account / wire verification and more with a single click or via the firm’s robust APIs! Loan level warranties can cover good settlement up to $5mm per transaction. Contact Sales@Fundingshield.com or 800.295.0135, ext. 2, to discuss solutions or to set up a demo.

XINNIX will provide a FREE Webinar on June 12 (valued at $99) featuring top performing loan officers found in recent XINNIX programs. These Loan Officers will share some of their strategies and tactics that helped them perform at a level worthy of recognition in their own companies and as top producers in their markets. In this webinar you will learn the characteristics that separate top performers from average performers, three key disciplines that top performers consistently execute, and three simple strategies that will impact your business immediately. Seating is limited, so don’t delay. Register today!

Your broker business relies on two things: Clients coming in your door, and having elite professionals to assist them. Quicken Loans Mortgage Services (QLMS) can help you with both if you’re a Pinnacle member. QLMS just announced free marketing and recruiting advice for its Pinnacle members. If you’re a member, you now have access to annual recruiting and marketing consultations with some of Quicken Loans’ best recruiters and marketers who will create custom strategies for your business. If these new benefits aren’t enough, you also have a handful of existing perks like free 5-day rate lock extensions, direct access to the Fresh Start Team to help your clients improve their credit scores and one-of-a-kind events specifically for Pinnacle partners that combine unique experiences with education and interaction with Quicken Loans leadership. Connect with QLMS here or contact your QLMS account executive to learn how you can become a Pinnacle member and grow your business.

Capital markets

Servicing values figure into mortgage pricing, which in turn impacts rate sheets. MGJ Advisory Solutions is releasing the bank residential Mortgage Servicing Asset Index (MSAI™).

For the better part of this year we’ve been bombarded with talk of an impending recession, given slowing economic growth and a brief yield curve inversion. Overall the US economy remains in generally good shape, however, despite worries about tariffs and deteriorating global economic conditions. A focal point for anyone watching the economy is consumer spending, which accounts for nearly 70% of the GDP calculation. As the consumer goes, so does the economy. Spending has been mixed over the past few months. And on the manufacturing front news has been mixed as well when you look at durable goods and ISM manufacturing surveys. Slower expansion is still expansion. Employment continues to be solid as well, and we have some numbers coming out this Friday. With labor conditions still very tight, it would suggest that any pull-back in consumer spending would not be prolonged.

Recent data has not brought any surprises or changes to the current economic picture in the United States. Inflation remains near the Fed’s target of 2% and labor market conditions are strong. Small business optimism edged higher by 0.1 points signaling that small business continue to expand, adding 0.5 net workers per firm. Twenty one percent of owners reported the ability to find qualified workers as their most important business problem. Job openings continue to outnumber unemployed workers although the vacancy rate declined. Despite the slowdown in hiring, initial jobless claims fell to a near 50-year low. On the inflation front, both the Producer and Consumer Price Indices saw modest gains for the month of March driven by a rise in energy prices. Both were barely changed, however, at the core level which excludes energy and food prices. The increasing inflation has led to slower growth in real wages but inflation is not expected to accelerate in the near term.

Markets don’t like uncertainty and we have seen our share of that as trade talks with China stalled and have, in turn, pushed a meaningful infrastructure bill aside. Real disposable income was up just 0.1 percent in April and person spending was unchanged for the month. Corporate profits declined $54.6 billion in the first quarter for the second straight quarter. While consecutive drops in corporate profits are not uncommon, continued declining profits could be troublesome for the US economy. On a bright now, consumer confidence increased 4.9 points to 134.1 in May which is near last fall’s peak. Combined with lower interest rates, this should be welcome news for the housing and auto industries. House price appreciation slowed in March according to the Case-Shiller US National Home Price Index. Mortgage rates continue to benefit from the uncertain economic outlook and while mortgage applications were down for the week ending May 24, they are up on a year-over-year basis. Speaking of rates, the Fed is expected to leave rates unchanged at their upcoming June meeting, however, the market implied odds of a rate cut before the end of the year have increased to roughly 83 percent.

Economists at leading banks warn that the likelihood of recession should not be underestimated if the US-Chinese standoff worsens. Investors are generally of the view that the trade dispute could drag on for longer, but they appear to be overlooking its potential impact on the global macro outlook. A higher tariff of 25% on Chinese imports has begun, while President Trump has rescinded India’s status as a developing nation, likely ending its ability to export to the US duty-free. Many wonder if Trump is using tariffs to push our economy down, thus forcing the Fed’s hand in lowering short-term rates.

Downside risks to the US economy have been top of mind stemming from fears surrounding the trade dispute with China as well as new tariffs on Mexican imports. As a result we saw a flight to quality and the Treasury yield curve became inverted. Tariffs are affecting corporate supply chains and are expected to adversely affect profits. Consumer prices are also expected to rise as a result of the increased taxes on imported goods. It is also possible that the prices of domestically produced goods will also rise as the price of the imported goods they compete with rise. For the moment, inflation remains at or below the Fed’s target and first quarter final domestic demand growth was the weakest in nearly six years. This has created a shift in market sentiment where the market is now expecting the Fed to cut interest rates before the end of the year when just a couple months ago, we were talking about how long the Fed would pause before continuing to increase rates.

U.S. Treasuries rallied again yesterday, including the 10-year closing -6 bps to 2.08 percent as discussions now center if it will go below 2 percent, and the subsequent impact on mortgage rates. The rally was driven by disappointing manufacturing PMI from the eurozone and China’s government releasing a White Paper placing the blame on the U.S. for the breakdown in trade negotiations, saying it is still willing to negotiate but won’t bend on its key economic principles.

Global growth concerns increase every day and yesterday saw the U.S. end India’s designation as a beneficiary developing nation, likely losing the ability to exports products to U.S. without tariffs; and the Chairman of President Trump’s Council of Economic Advisers announced he would step down. Markets also received the lowest ISM Manufacturing Index reading (52.1 percent) since 2016, reflecting a deceleration in manufacturing activity that will continue growth concerns for the U.S. economy. And total construction spending missed expectations as it was unchanged in April as a result of a decline in residential spending. Rate-cut expectations were again adjusted upward; adding fuel to the fire was St. Louis Fed President Bullard saying he thinks a rate cut may soon be warranted to boost inflation.

Today’s calendar is relatively light on data but busy with Fed speakers, and their remarks will be of particular interest given the recent increase in implied likelihood of rate cut(s) this year. On tap are Chicago Fed President Evans, New York’s Williams, Dallas’ Kaplan, and Fed Chair Powell. Economic data begins here shortly with Johnson Redbook Chain Store Sales Index for the week ending June 1, and will be followed later in the morning by April factory orders. That is it for domestic releases as we begin today with Agency MBS prices worse/down .250 versus Monday afternoon and the 10-year yielding 2.12%.

Thanks to Glenn F. who sent, “Hey Rob, my daughter went into pre-mature labor. She got a job before she wanted to!”

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, “Are You Ready for CECL?” 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.)

June 3: HR, LO jobs; eClosing, u/w products; vendor capital infusion; URLA webinar & other training this week

If you had $85 million you could buy 85 $1 million homes in as many countries, or one apartment in Manhattan’s West Side that includes two Rolls-Royces, a Lamborghini, a house in the Hamptons for a summer, a yacht, Brooklyn Nets season tickets (that’s a plus?), weekly dinners at a Michelin-starred restaurant, a butler, a private chef for a year, $2 million for renovations, and two seats on a flight to space. At the other end of the spectrum, a study by Deloitte shows that the average net worth of Americans aged 18-35 is below $8,000 and has dropped 34% since 1996. No wonder the “Bank of Mom & Dad” and down payment assistance programs are so popular. But wait – isn’t everyone aged 18-35 above average? That age group probably isn’t building many homes, but the CFPB published the first set of Frequently Asked Questions on the TRID Rule as it applies to construction loans.

Employment

Compass Analytics is a leading provider of mortgage pricing and risk management services and analytics to financial institutions nationwide. Compass is actively seeking experienced secondary marketing candidates for its San Francisco, Irvine, CA and Chevy Chase, MD offices to serve as Account Managers. “The candidate will employ our proprietary risk management and best execution software, CompassPoint™, to provide hands on support to clients with onboarding and daily pipeline hedging, best execution and loan sales activity, delivering exemplary customer service. This role will also contribute to the further development and delivery of our innovative and fully integrated suite of technology solutions.” Candidates can see the complete job posting details here and interested candidates should send a comprehensive resume and cover letter to compass-analytics@jobs.workablemail.com

An independent mortgage banker in the Philadelphia metro area is currently seeking qualified applicants for the position of VP of Human Resources. The ideal candidate will have at least 5 years of HR experience in the mortgage industry specifically and additional HR management experience. Also, for this role candidates will need a working knowledge of how to manage a business platform with staff in 15+ states, a team of HR staff, and oversee an internal training team. Candidates with a strong working knowledge of Federal and State labor and employment laws, the ability to create and work within a budget, and be able to drive process change for efficiency and cost reduction are encouraged to apply. Please send resumes to

Anjelica Nixt; please specify the opportunity.

Thrive Mortgage has added two powerhouse managers to its leadership team in Central Texas. “We have the perfect model for true performers. All the tools and technologies without the layers. We are built to be the premier lender,” stated Thrive’s National Sales Director,

Randell Gillespie. Thrive recently announced the hiring of vet Doug Smithe as the Branch Manager for the company’s branch in the North Austin market. Additionally, last week, Thrive introduced Andrew Smithanother well-known industry vet and Regional Manager, as its new Regional Manager covering Central Texas. “Thrive Mortgage is one of the most impressive organizations I’ve ever seen,” stated Smith. “The opportunity to be a part of this company’s vision and witness first-hand such amazing growth was an opportunity I couldn’t pass up.” For more information on available positions or to speak with members of our leadership and recruiting teams, please visit join.thrivemortgage.com.

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

“Consistent top-level performance. Relentless commitment to high-quality service. Award-winning technology, product programs and ops. These are just some of the reasons that PrimeLending has been named a Top Mortgage Lender for the 7th straight year by Scotsman Guide – ranking #6 for Top Retail Volume and #9 for Top Overall Volume in 2018. Over the past three decades, we’ve been steadfast in our quest to simplify the mortgage process, offer streamlined technology for our LOs, homebuyers and business partners and deliver on-time closings without the obstacles. The ultimate mortgage experience exists at PrimeLending, and that’s why we’re consistently ranked a Top Mortgage Lender by Scotsman Guide — and a top destination for expert loan officers looking to increase their business. If you’re ready to join a team with a proven track record, contact Brian Miller to discuss what your future looks like with PrimeLending.”

In today’s competitive environment, technology is the difference between getting by and staying ahead. As a mortgage broker tech start-up, we’ve built the technology needed to succeed in this industry and are now seeking experienced MLOs in the DC, Atlanta, and Hoboken markets to join our growing team. Backed by some of the same investors as Airbnb, Compass, and Lemonade, and with a leadership team of mortgage industry vets and software engineers, we’re pursuing one simple mission: to make getting a mortgage as simple, fast, and transparent as any other online transaction. If you see the industry moving in the same direction as we do and have at least three years of experience and a strong desire to leverage technology to improve the mortgage experience for your clients, contact Anjelica Nixt; please specify the opportunity

Lender products and services

Leave it to TMS to make the mortgage process easier for lenders with less risk, faster purchases, and better loan delivery by partnering with EncompassTM Investor Connect. An all-in-one mortgage management solution that establishes a secure system-to-system workflow between lenders and investors, it makes transferring loans to TMS fast and super-easy. In fact, TMS cleverly summarizes it as “Transfertopia” and defines it as “A wonderous world where all borrower information seamlessly transfers from lender to investor with just the push of a button.” Great info for investors, so check it out.

eClosings are critical component to any digital mortgage strategy. If you want to become more e-friendly at the closing table – whether its real or virtual – look no further than right here. IDS is now offering a 45-minute, on-demand webinar covering strategies for eClosing tech adoption, effective ways to acquire performance data and gain valuable eClosing experience, and the latest eClose enhancements to idsDoc. For more information on how you can make the most of eClosings, contact IDS at sales@idsdoc.com.

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

Vendor updates

A new financial technology company, Dytrix, now provides financial institutions with a real-time SOC2-compliant and cloud-based platform for wire/ACH transfer validation and closing agent management. It is designed to mitigate the increasing cybersecurity risks of wire fraud and disclosure of NPI, which are significantly impacting financial institutions nationwide as they work to manage financial, operational and confidentiality risks. The company, which will operate independent from RML Advisors, enables lenders and others who transmit funds electronically to secure financial transactions from fraud through a state-of-the-art platform. In making the announcement, Regina Lowrie acknowledged that a key element in launching Dytrix was a significant investment by John H. Martinson, a venture capitalist with a focus on fintech companies.

Mortgage Coach and ClosingCorp SmartFeessm announced an integration. “Eliminate, with one click, all of the guesstimating of fees by loan originators as they create loan options for specific borrower profiles. Two industry veterans have partnered to deliver a solution for mortgage lenders to build borrower trust, convert borrowers faster, and reduce the risk of compliance variance violations. There is no better time to operationalize and simplify presenting accurate loan options.” View an overview of the integration here.

Notarize announced that it has facilitated more than $1 billion real estate transactions online. With partners that include Redfin, Realogy and United Wholesale Mortgage, the company expects to facilitate the next billion within the next 4 weeks. “We’ve hosted closings across three continents via mobile phones because of this technology. Notarize is taking the step towards making real estate markets more liquid, so it’s easier for people to move to better neighborhoods, better job prospects, and a better life.” – Glenn Kelman, CEO of Redfin.

Training & events this week

Lending solutions provider Data Facts is offering a complimentary webinar on Wednesday, June 5 at 2pm CT. “The New URLA Update” webinar features industry expert David Luna, who will talk about the changes already taking place in the mortgage industry and how they will affect your ability to gain customers and close loans. Data Facts offers a full-circle portfolio of customizable solutions that helps lending professionals make sound decisions and maximize efficiencies. Its products include credit reports, verifications, flood, fraud, lead gen products, an appraisal ordering platform, and more. They offer a variety of seamless LOS integrations (Encompass, Calyx, Byte, etc.) and a 100% US based customer support team for personalized service. And they NEVER offshore your data! Enjoy a transformative digital mortgage experience at a cost-effective price that helps you drive efficiency, increase market share, and close more loans, faster and easier with Data Facts.

Join Carrington Wholesale for a LIVE webinar on June 4th and explore credit fundamentals that can trigger a loan from AUS to Manual UW.

Plaza and Calyx Software® are hosting a complimentary 30-minute webinar on June 5th. Find out information on Plaza’s newest program – High Balance Access. Non-QM and bank statement program options. Plaza’s bank statement income calculation service. Renovation and construction loan programs and How to connect with Plaza in Point®.

Register for a free FHA on-site appraisal training, June 5th in Salt Lake City. This training will cover FHA appraisal requirements, including FHA appraisal protocol and updates to FHA appraisal policy.

Join Freddie Mac on Thursday, June 6th for a free Community Classroom webinar about the recently enhanced Freddie Mac Single-Family Seller/Servicer Guide (Guide). Walk through the modernized Guide interface, demonstrate improved search and navigation and discuss updated user-friendly features.

Arch MI’s complimentary webinars offer new methods on a variety of mortgage lending topics. Registration is open for its June sessions.

Genworth Mortgage Insurance provides complimentary online courses to help customers manage, protect and grow their business by delivering you-centric solutions that matter. Not only do you get quotes quickly and information proactively, but you’ll also receive first-class training from Genworth’s group of Six Sigma Quality and Change Management experts. View the June Training Calendar here.

Plaza’s June Webinar Calendar is posted and includes topics such as VA Reno, 203k,HomeStyle, Appraisals, Reverse, Taxes, Secondary Market and First-Time Homebuyers.

National MI has a full line-up of training scheduled for June:

June 5th at 11:00 5 Habits of Highly Successful Salespeople – Perfecting Your Follow Up

June 11th at 12:00 The New URLA Form

June 12th at 12:00 Oh, Shift! Session #2 – Oh, Shift!

June 13th at 12:00 Follow the Trends: Top Social Media Tips in 2019

June 20th at 10:00 Advanced Self-Employed Borrower

Join MCT on June 6th at 10AM Pacific, when MCT will unveil a new platform for digital TBA trades, allowing competitive bidding on TBA requests. MCT’s Phil Rasori, COO and Hedge Advisory Lead, will discuss how this new tool improves productivity, efficiency and profitability and how TAM’s competitive environment saves lenders 3+ basis points on their TBA transactions.

Capital markets

U.S. Treasuries rallied to close the week, and start this one this morning, due to global growth concerns. The 10-year wrapped up at 2.14 percent after President Trump announced all goods coming in from Mexico will be subject to a 5 percent tariff starting on June 10, increasing every month until it reaches 25 percent on October 1. The tariffs could be lifted if the White House decides that Mexican officials have done enough to curb the flow of illegal immigrants from Mexico into the United States. These new tariffs come at a time when the trade dispute with China remains unresolved, and potentially against the counsel of U.S. Trade Representative Robert Lighthizer, as it could jeopardize the ratification of the U.S.-Mexico-Canada Agreement.

Some have suggested Trump is trying to force the Fed’s hand with rate cuts as there is an election on the horizon. The fed funds futures market now sees over a 71 percent likelihood of a rate cut in September and nearly 62 percent chance of another cut in December. Barclays went so far as to expect 75 bps of rate cuts by year’s end. For those focusing on the yield curve, the spread between the 3-month bill yield and the 10-yr note yield has compressed by 16 bps in the last ten days.

We also had a whole host of poor global economic data to close the week. Domestically, the Federal Reserve Bank of Atlanta lowered its GDPNow forecast for Q2 growth following May personal income and outlays readings. Separately, Real PCE was unchanged in April, another data point suggesting much slower Q2 real GDP growth than what was reported in Q1. And the final May reading for the University of Michigan Index of Consumer Sentiment missed expectations, as “confidence significantly eroded in the last two weeks of May” on account of concerns about the tariff actions. Internationally, China’s Manufacturing PMI decreased below expectations in May; Japan’s April Retail Sales missed expectations and Housing Starts fell dramatically; Hong Kong’s Retail Sales fell in April; Germany’s Retail Sales fell in April (and bund yields hit an all-time low); Italy’s Q1 GDP growth was revised downward; and Swiss Retail Sales fell in April.

Today’s domestic calendar kicks off with final May Markit Manufacturing PMI, expected to be unchanged, before the duo of May Manufacturing PMI and April construction spending are released. Later in the morning, Treasury will auction $36 billion each of 3- and 6-month bills. There will be a bevy of Fed speak for markets to digest, as Governor Quarles, Richmond’s Barkin, and St. Louis’ Bullard all scheduled to deliver remarks. We begin today with Agency MBS prices up a few ticks and the 10-year yielding 2.11%.

A farmer was milking his cow.

He was just starting to get a good rhythm going when a bug flew into the barn and started circling his head.

Suddenly, the bug flew into the cow’s ear. The farmer didn’t think much about it until the bug squirted out into his bucket.

It went in one ear and out the udder.

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, “Are You Ready for CECL?” 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.)

June 1: USB ports suspect? Relationships matter for vendors; state lending law maneuvers; cool business cards

Web security

Thank you to Brian B. who sent along this story on 9 Signs You Might Get Hacked. “62% of small and medium sized companies have been hit by a data breach. Make sure you’re not one of them.” (Although I didn’t see “sending out a free daily mortgage commentary” listed as increasing the probability of being hacked, I’m sure it’s up there.)

And the Knowledge Coop put out an entertaining video on why you should use your own charger instead of a USB port found in airports or hotels. Yup, data is transferrable over a USB connection, so plugging your phone into an unknown charging port puts it at risk. Avoiding the risk of an attack known as “juice jacking” is easy enough that it won’t inconvenience you. Current iPhones and Android phones usually require your permission to share things. Your iPhone will prompt you to “Trust This Computer” when a device you’re plugged into wants access. On Android, you must enable transferring files over the connection. Even if you have USB debugging enabled, you must permit the device to access it.

But there are bigger issues out there than your phone. Andrew Liput with Secure Insight writes, “Phishing emails are circulating purportedly from First American Title with instructions to open a link to complete a DocuSign process. The attempts may be attempting to capitalize on the recent announcement of the alleged exposure of nearly 850 million data records through a company website. The email contains the First American logo and indicates in the body that it is from the ‘processing department’ however the email address itself is a dead giveaway to a careful examiner. In one case we saw the return address was ‘Mia Manning mmanning@lohmanapartments.com’ (do not follow this link), clearly a disconnect between what is purportedly being transmitted.

“Cyber risk of this nature is more widespread now than ever before, and criminals use phishing schemes and social engineering efforts to convince unwitting or inattentive employees to open links that may contain malware, ransomware or other damaging computer viruses. These entryways could be used to intercept business communications to set up wire fraud events. We are encouraging our clients to educate and train their managers and staff (beyond just the IT department), and to immediately respond to attempts to engage in email phishing by blocking the sources.”

Relationships

Earlier this week I published a paragraph on a new vendor product focused on allocating loans to warehouse lines. I received this note from a long-time warehouse lender, addressing a topic felt by many lenders: pure economics versus relationships, regardless of the product in question.

“Rob, I’ve never responded to any of your letters until now. Any engine used for decision making and that makes warehouse finance pricing the sole focus and flies in the face of the importance of a deep relationship with a lender, especially in challenging times. Ask any owner who has leaned on a warehouse relationship at a time when they needed it the most. Long-time warehouse banks didn’t stop funding loans or cease taking applications in 2007 or 2008, nor did they balk at this business like many of their competitors did.

“At our company, our phone never stopped ringing and we always answered. True, our lifeboat was only so big, but we helped in every way possible. Many younger entrants into this mortgage banking world have no idea about any of that and I hope they don’t find out the hard way. To them, warehouse lines of credit have become a commodity like pork bellies and crude oil – a dangerous assumption, don’t you think? Especially since non-banks comprise over 50% of all residential mortgage originations? I would think your influence over and responsibility to our industry warrants some comment from you on this front?”

State legal news

The MMBA filed an amicus brief in a case that has the potential to create uncertainty and hardship for mortgage lenders in Massachusetts by calling into question the validity of innumerable pending and previously completed foreclosures.

“The Massachusetts Mortgage Bankers Association (MMBA) filed an amicus brief in Thompson v. JPMorgan Chase Bank, N.A., a U.S. Court of Appeals decision handed down by the First Circuit. The Thompson case involved the notice of default sent to the Thompsons (the borrowers) by JPMorgan Chase Bank when the borrowers failed to make their mortgage loan payments. The Court held that the notice was “potentially deceptive” and declared the foreclosure invalid.

“This case involves the interpretation of a foreclosure notice requirement, often referred to as ‘paragraph 22’ because the notice is found in paragraph 22 of most residential mortgages. It requires a mortgagee to provide a borrower with several disclosures prior to foreclosure, including the right to cure and the right to reinstate the loan after acceleration,” said Debbie Sousa, Executive Director of the MMBA. “We took this action in response to the enormously consequential decision the Court issued about the notice requirement. This case has the clear potential to create uncertainty and hardship for mortgage lenders in the Commonwealth by calling into question the validity of countless pending and previously completed foreclosures.”

In Thompson, the First Circuit ruled that the notice of default and right to cure potentially misled the borrowers regarding the precise amount of time they had to reinstate the loan prior to foreclosure. The content of the Thompson default notices exactly tracked the disclosures contained in paragraph 22 of the mortgage and also included the mandatory Notice of Right to Cure a Default (“Cure Notice”) promulgated by the MA Division of Banks (“DOB”). The DOB notice informed the borrowers that the foreclosure could be avoided by paying the total past-due amount before a foreclosure sale took place. This conflicted with a more restrictive limitation on the right to reinstate contained in paragraph 19 of the mortgage, which provided that payment had to be made at least five days before the foreclosure sale date. Despite never having attempted to reinstate the loan, the borrowers claimed that the Cure Notice’s failure to disclose the five-day requirement rendered the notice confusing and potentially deceptive.

The amicus brief contends that this decision frustrates the long-standing custom and practice of Massachusetts lenders giving homeowners every opportunity to avoid foreclosure, including the ability to reinstate their loan up until the foreclosure sale. It further states that forcing lenders to cut off this right at an earlier time would be unfair to all involved and that a lender’s decision to waive this limitation in favor of a more consumer friendly option should not be construed as deceptive. The brief also outlines the chaos the Thompson decision will create for MMBA members and their customers who will likely be unable to buy, sell, finance or refinance homes with an affected foreclosure in the chain of title. The amicus concludes by asking the Court to avoid making the MMBA’s members and their customers the inadvertent casualties of this erroneous decision.

Illinois Department of Financial and Professional Regulation has adopted rules which modify parts of its Residential Mortgage License Act.

A new provision requires that an independent loan processor entity employ at least one individual licensed as a Mortgage Loan Originator to provide supervision and instruction to individuals performing loan processing services. If only one loan processor is providing services for an independent loan processing entity, that person must be licensed as a Mortgage Loan Originator to fulfill this requirement.

One of the new advertising provisions specifies that business cards shall be considered an advertisement under the Act.

Another provision under this section sets out the requirements for advertising residential mortgage services in Illinois. All such advertisements must include, in a manner that is clear and conspicuous to the consumer: the NMLS Consumer Access homepage, the NMLS Unique Identifier of the licensee, the individual NMLS Unique identifier of the MLO in cases where a Mortgage Loan Originator is also advertised, and the phrase “For licensing information, go to www.nmlsconsumeraccess.org” for advertisements in electronic media.

On May 10, the Office of the Illinois Secretary of State published in the Illinois Register a notice by the Department of Financial and Professional Regulation of adopted amendments to certain parts of its Residential Mortgage License Act. In general, the amendments impact independent loan processor licensing as well as residential mortgage loan bond and advertising requirements. Specifically, an independent loan processing entity must employ one or more licensed mortgage loan originators (MLO) to be in compliance with the Act’s supervision and instruction requirements. In addition, any advertisement appearing in the state by a licensee concerning residential mortgage loans must clearly and conspicuously include the following: (i) the Nationwide Multistate Licensing System and Registry (NMLS) Consumer Access homepage; and (ii) a licensee’s unique NMLS identifier. If an MLO is advertised, licensees are also required to include the MLO employee’s individual NMLS unique identifier, in addition to listing the licensee’s NMLS unique identifier. Furthermore, licensees are prohibited from including a NMLS unique identifier in any advertisement related to “activities other than residential mortgage lending or brokering” unless certain criteria are met. The amendments became effective immediately.

Effective on July 1, 2019, Minnesota modified provisions relating to references of “subprime” from certain statutes.

The amendment removes subprime references from the definition of “investment grade” and redefines it to mean “a system of categorizing residential mortgage loans in which the loans are distinguished by interest rate or discount points or both charged to the borrower, which vary according to the degree of perceived risk of default based on factors such as the borrower’s credit, including credit score and credit patterns, income and employment history, debt ratio, loan-to-value ratio, and prior bankruptcy or foreclosure.”

Section 2 of the amendment prohibits a residential mortgage originator from entering into a loan (current law states subprime loan) that contains a provision requiring or permitting the imposition of a penalty, fee, premium, or other charge in the event the residential mortgage loan is prepaid in whole or in part if the loan also contains certain elements applicable to the annual percentage rate.

On May 15, the New Hampshire governor signed HB 649 to, among other things, amend the state licensing requirements for non-depository mortgage bankers, brokers, and servicers, as well as pawnbrokers and moneylenders. Specifically, licensing applicants must file with the banking commissioner a written verified application through the Nationwide Multistate Licensing System and Registry (NMLS) using the NMLS form, or by providing all the same information required on the application using the NMLS. Applicants must also file a statement of net worth. Finally, HB 649 defines what constitutes a “significant event” pertaining to a licensee’s practices with respect to consumer credit, small loans, debt adjustments, and money lending. The act became effective immediately.

Arkansas has passed House Bill 1943, which makes amendments and revisions to the Personal Information Protection Act. HB 1943 revises the definition of “personal information,” and makes amendments to requirements regarding the disclosure of security breaches.

HB 1943 revises Arkansas Code section 4-110-103(7) to include biometric data in the definition of “personal information.” Biometric data is data generated by automatic measurements on an individual’s biological characteristics.  These biological characteristics may include fingerprints, a faceprint, retinal or iris scans, hand geometry, voiceprint, DNA, or any other unique biological characteristic of an individual.

HB 1943 also amends Arkansas Code Section 4-110-105(b), which details disclosure requirements regarding security breaches. HB 1943 requires that, in the event of a security breach which affects the personal information of more than 1,000 individuals, a notification of the breach must now also be made to the Attorney General. The provisions of HB 1943 are effective August 9, 2019.

On April 29, 2019, the New York State Department of Financial Services announced a newly created Consumer Protection and Financial Enforcement Division. The new division is responsible for protecting and educating consumers and fighting consumer fraud.

It is tasked with ensuring that regulated entities comply with New York and federal law in relation to their activities serving the public.  In addition, it will develop investigative leads and intelligence to enforce banking and financial services laws.  Katherine A. Lemire, a former assistant United States attorney and prosecutor, was appointed as executive deputy superintendent of the new division.

On May 7, the Georgia governor signed HB 185, which amends various state laws related to financial institutions, including the licensing requirements for mortgage lenders and mortgage loan originators. The bill specifies that any licensed mortgage lender is authorized to engage in all activities that are authorized for a mortgage broker and therefore, is not required to obtain a mortgage broker license. Additionally, the bill specifies that a mortgage loan originator license shall become inactive in the event that a mortgage loan originator is no longer sponsored by a mortgage lender or mortgage broker that is licensed. The bill becomes effective July 1.

(Warning: Rated PG for vulgarity. Don’t click on the link if you are easily offended.) You know the drill. You call on a new client, or you go to a conference, and you hand over your business card. And most lender business cards look the same. Well, creativity is not dead, and here are photos of some darned cool business cards that would leave an impression. (The plastic surgeon’s is particularly clever.)

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, “Are You Ready for CECL?” 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.)

May 31: Sales, Corresp., AE, LO jobs; broker/dealer, POS products; jumbo/high bal. trends

Congress has become adept at kicking the can down the road, the latest example being, for the 11th time, passing a two-week extension for the National Flood Insurance Program. Those who actually have to earn a profit usually don’t have the time or inclination to delay things, and must act – like closing loans. I remember when there were questions about “refi shops” making the transition to purchase biz, as well as non-bank business growth. Estimates are out already for the top retail lenders in the first quarter of 2019. Apparently, those were answered as Quicken Loans’ $21.8 billion dwarfed Wells Fargo’ $14.1 billion. BofA is estimated at $11.5 billion, Chase $9.3. loanDepot followed with $5.4 billion, followed by Fairway with $5.3 billion, G-Rate $5, US Bank estimated at $4.7, and the Top 10 ends with Caliber and Guild, per Inside Mortgage Finance. (And yes, there may be reporting issues in terms of what exactly is included in “retail.”)

Employment & transitions

Wholesale & Correspondent Account Executives considering a mid-year career move should consider a move to Sierra Pacific Mortgage. Account Executives are now being recruited for the following cities and states: Seattle, Boise, North and South Carolina, Georgia and Pennsylvania. Established for over 30 years, Sierra Pacific Wholesale offers AEs the security of working for one of the largest privately held independent mortgage companies in the nation. AEs get everything they need to boost sales, including a comprehensive product inventory, competitive rates and access to Calyx Wholesaler MarketPlace. Part of NAMB’s All In cloud-based origination system, Wholesaler MarketPlace enables members to securely transfer loan files to Sierra Pacific in seconds, with most approvals delivered in 48 hours. Confidential inquiries should be sent to Amanda Coffrini.

Lenders One is pleased to welcome Justin Demola, CMB, to the role of Vice President, Sales. In this role, Demola will be focused on delivering unique value to members through new benefits, innovative solutions and opportunities to connect. Previously, Demola was a member of Lenders One, serving as COO of MLB Residential Lending, LLC, giving him unique insights into the challenges lenders face in today’s market. Additional opportunities to join this burgeoning team include Regional Sales Director – WestRegional Sales Director – Northeast and Chief of Staff to President/Strategic Internal Consultant. The cooperative is ramping up for its biannual Summit August 4 – 7, in Seattle, WA. To take advantage of early bird pricing, register by 11:59pm ET tonight, May 31, at www.l1summit.com. To learn more about open positions, Summit, or membership opportunities, contact Justin Demola.

“We at City National Bank believe that cultivating complex financial relationships will always require genuine high-touch service, producing results that exceed our discerning clients’ expectations. Financial expertise, trust and authenticity are the basic qualities we hold in the highest regard and consistently apply to the client experience. If your approach and qualifications line up with the City National brand of mortgage banking, we look forward to hearing from you. As we continue to grow, our Residential Lending Division is accepting applications for Residential Lending Consultants in our West Coast Regions. Whether your experience is in origination, underwriting or senior processing, if you have a strong understanding of self-employed jumbo and super jumbo loan structure, and an innate sense for extraordinary client service, this could be the next step in your career. To learn more, visit CNBCareers or contact Bridget Purviance, Talent Acquisition, at 213-673-9155.”

“Looking for a company offering continuous growth, a full-scale marketing strategy, continued training, career improvement courses? Well according to the 2018 Scotsman Guide Report, Carrington has continued to move up the ranks as a Top 25 company to work for! We offer a complete suite of products including FHA, VA, FNMA, FHLMC and a robust menu of Non-QM programs which has further fueled our growth. We are currently looking to build out our Non-Delegated Correspondent sales team. If you feel your sales skills and experience would be a fit with Carrington, please email John Cervantes.”

Compass Analytics is growing its Sales team in the Northeast and on the West Coast! Compass is an innovative FinTech company and leading provider of mortgage pricing and risk management analytics to banks and financial institutions nationwide. Compass provides cutting-edge analytics, real-time hedge advisory and active risk management services to mortgage originators, bankers, traders and investors. Compass is actively seeking an experienced and energetic Sales Director with a background in secondary marketing or loan origination. If you live in either region and you’re an experienced mortgage technology sales professional looking for a great team and great products, Compass may be the right next step in your career. If you’re ready to offer exceptional products to mortgage bankers in the Northeast or on the West Coast, please CLICK HERE to see a detailed job description and to submit your resume.

Caliber Home Loans, Inc. is poised for success in virtually any market condition – especially as we enter a low interest rate environment. Caliber is a full-service loan originator and servicer. And because Caliber retains servicing, it’s in a strong position to help its Loan Consultants create customers for life – and succeed during a refi boom. Caliber does several things well to help its Loan Consultants maintain their relationships with their customers over the life of the loan. Caliber prints the Loan Consultants’ name, contact information and photo on the monthly mortgage statements sent to customers. Caliber emails past clients for the first three years post-close on behalf of its originators and has credit triggers in place to alert its Loan Consultants when past clients are showing a propensity to refinance. And unlike many lenders that operate in Consumer Direct, Caliber’s direct-to-consumer channel doesn’t compete with its Retail business.

Congrats to Tanya Hilton who recently joined Dynaxys, LLC, a leading provider of government mortgage loan servicing and property management technology solutions, as the new CEO leading the overall corporate vision, culture, and strategy for the company. She brings nearly three decades of leadership experience with a focus on technology and organizational transformation.

Lender products & services

It is an honor and privilege to personally invite you to Volly’s #summit11 conference held in Kansas City on June 10-12. Attendees can network with top banking and mortgage executives while learning the latest strategies and technology trends from riveting speakers such as Doug Duncan of Fannie Mae; Daniel Luna, a former Navy SEAL; and Jim Cameron of STRATMOR Group. “Volly’s recent merger of LoyaltyExpress, SoftVu, and Lending Manager provides the mortgage industry with powerful technology solutions that transform the customer journey,” said Jerry Halbrook, CEO of Volly. “The Summit is our opportunity to learn and hear directly from the industry about very specific needs for Volly to incorporate into its technology and marketing services roadmap.” This year, 10% of Summit proceeds will be donated to the Navy SEAL Foundation, which supports Navy SEAL families and Giving the Basics, a Kansas City organization that provides personal care items for local residents.

OpenClose® announced that STRATMOR Group’s most recent Technology Insight Survey ranked its LOS platform, POS system, and PPE as having the highest Overall Satisfaction and Lender Loyalty Score™ out of any vendor surveyed. Notable is that the company’s LenderAssist LOS had the best Overall Satisfaction rating of 9.7 out of 10, a perfect 100 Lender Loyalty Score™, and was the only LOS with zero outages reported. For POS digital, OpenClose scored higher than any vendor for Overall Satisfaction at 9.4 out of 10. OpenClose’s DecisionAssist™ PPE ranked highest in Overall Satisfaction and also had a perfect 100 for its Lender Loyalty Score™.  In addition, OpenClose was the only vendor to receive a LOS functionality score of 100% from users for ‘Availability of Help Desk’ and ‘Overall Customer Support’ as being “Highly Effective/Competitively Advantaged.”

Borrower satisfaction

Want to know if your technology strategy is a success? According to data from STRATMOR Group’s MortgageSAT Borrower Satisfaction Program, technology improvements can have a major impact on Net Promoter Scores (NPS) that measure the likelihood of customers to recommend your company — a reliable representation of potential future revenue. One large independent lender who recently implemented a new Point of Sale (POS) system experienced a 34-point improvement in their NPS score with purchase borrowers taking an application through the new POS. In the May MortgageSAT Tip, MortgageSAT director Mike Seminari suggests three steps lenders can take to tie technology success to the borrower experience.

Jumbo & high balance trends

Without 52 basis point guarantor/guarantee fees (“gfees”) and conforming loan level price adjustments, of course jumbo rates are prone to be lower than conforming conventional products. Non-depository lenders are having trouble competing with the likes of Wells and Chase in the jumbo channel. Yet per Tom LaMalfa’s recent survey at the MBA Secondary Marking Conference, respondents noted that 13% of YTD origination volume was non-agency jumbo? And KBW notes that at its peak, Redwood Trust held the underlying credit risk for more than 10% of the jumbo residential loan market. Let’s see what lenders are doing out there.

Plaza Home Mortgage has announced a new High Balance Access loan program that allows borrowers to qualify for high cost area loan amounts from $484,351 to $726,525, at competitive rates, regardless of where the property is located. Plaza’s Wholesale, Mini-Correspondent and National Correspondent channels are offering a High Balance Access loan program designed to bridge the gap between conventional conforming requirements and Jumbo loans, giving banks and brokers more options to offer customers to finance their home purchase or refinance. Program highlights include: Loan-to-value ratios up to 90% for purchase and 80% for refinance, Minimum FICO score of 680, Debt-to-income ratio up to 43%, DU® Approve / Ineligible due only to loan amount and Eligible for primary and second home residences.

Plaza Home Mortgage has made updates to all Elite Jumbo Programs such as its Elite Jumbo and Elite Jumbo Non-QM now allows Second home cash-out to $1.5 million up to 60% LTV with a 740 FICO and Agency High-Balance loan limits are now eligible for transactions with LTVs greater than 80%. Also, rental income may be allowed for short-term rentals without a lease on its Elite Plus Jumbo Non-QM. And the AUS Non-Conforming Program has also been updated to include investment properties and delayed purchase refinances, new flexibility in trade line requirements, increased max loan amount from $2.5 to $3M, minimum FICO now 640 vs. 660 for purchase and rate/term to 85% LTV and gifts of equity are now allowed. And its Solutions Non-QM program now allows investment property transactions.

Plaza Home Mortgage now accepts converted one-time close construction-to-permanent loans so you can offer a streamlined mortgage option for buyers to build their own custom-crafted home. Program highlights include Fannie Mae® Conforming and High Balance, Owner-occupied and second homes, up to 95% LTV, Minimum 620 FICO, 30-year Fixed and DTI per DU®.

Wells Fargo Funding has removed the following Non-Conforming Loan requirements for borrowers receiving commission income: Most recent two years’ complete individual federal tax returns to verify commissions earned and expenses incurred. When commission income represents 25% or more if the borrower’s total annual employment income, unreimbursed employee-paid business expense must be deducted from the gross commission income.

Wells Fargo Funding expanded its flood insurance requirements for Non-Conforming Loans secured by condos to no longer require coverage for contents of the building owned by the homeowner’s association. And updates to its nontaxable income requirements for Non-Conforming Loans have been added to clarify there are many types of nontaxable income and acceptable documentation.

Down Payment Equity Sharing is now available on PRMG’s Ruby JUMBO. Loan officers must be certified with Unison.

Land Home Financial Services offers a Jumbo 30-Year Fixed Loan PRICED like a High Balance.

Capital markets

ED&F Man Capital Markets is pleased to announce that Rod Damon has joined the firm. ED&F Man Capital Markets is a global financial brokerage business and the financial services division of ED&F Man Group. “Blending the heritage of ED&F Man with our Capital Market expertise, our business ethos is built on integrity, client care and careful risk management along with a strong compliance focus. We offer direct access to global capital markets via world class IT infrastructure. We offer a full suite of Capital Market products including trade processing, financing, clearing, execution, market making, and agency based electronic and voice brokerage services. Our Mortgage Products group offers TBA execution, Assignments – approved with all of the major AOT participants, and pricing on MBS Specified Pools. We focus on the needs of our Independent Mortgage Bankers and their Hedge Advisors. Please feel free to contact us toll free (833-491-2816) or email Rod, Rob Branthover, Matt Camp, or Logan Damon.”

Looking at rates, an abrupt downturn in domestic demand and weak first-quarter inflation that surprised economists call into question the Federal Reserve’s view that low US inflation is the result of temporary factors. The minimal increase in inflation, the smallest in four years, builds pressure on the central bank to decrease interest rates. But rates were little changed Thursday. The 10-year closed yielding 2.23% though mortgage rates hit new lows with some 30-year rates now below 4 percent for the first time since January 2018 (per Freddie Mac). The average 15-year fixed rate and 5/1 hybrid ARM rates declined to 3.46 percent and 3.60 percent, respectively.

Global growth concerns, which aren’t being helped by tariffs (real or talked about), are pushing rates lower around the world. Australia and New Zealand released a series of weak economic and housing stats. China’s Commerce Ministry spokesman said it would be unacceptable to sell rare earths to countries that want to suppress China while Nissan is expected to lower its production at ten plants around the world.

Today’s month-end calendar began with April personal income (+.5%), spending (+.3%) and the and Core PCE Price Index (+.2%). Later this morning, markets will digest May Chicago PMI, Michigan sentiment figures, and separate remarks from Atlanta Fed President Bostic and New York Fed President Williams. We begin today with Agency MBS prices up .125-.250 and the 10-year yielding 2.17%.

(I heard this one here in Denver.)

A guy walks into a bar and there is a horse serving drinks.

The guy stares until the horse finally says, “What’s the problem? Haven’t you ever seen a horse serving drinks before?”

The guy says, “No, it’s not that. It is just that I never thought the ferret would sell the place.”

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, “Are You Ready for CECL?” 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.)

May 30: LO jobs; broker, digital, customer retention products; FHA, VA, Ginnie changes run the gamut

My cat Myrtle’s direct exposure to the falling stock market is minimal. Mine, however, has become a sense of concern as I watch the value of my holdings get clocked, reminding me of the proverbial question lenders debate: would they rather have a strong economy and higher rates, or a not-so-strong economy with lower rates? At some point down payments and borrower confidence are negatively impacted, as are some occupations (like farmers, after news yesterday that China put U.S. soybean purchases on hold). During the layoffs of 2018 a lender keeping its in-house attorney was a real luxury. Some did, but once again we unfortunately see the grim reality of differences in pay between genders. The average annual salary of corporate counsel in all positions across all industries increased 4.4% from 2017 to 2018, Phillip Bantz reports. The average total compensation last year for all women in-house counsel was $313,782. For men it was $368,000.

Employment

“In today’s competitive environment, technology is the difference between getting by and staying ahead. As a mortgage broker tech start-up, we’ve built the technology needed to succeed in this industry and are now seeking experienced MLOs in the DC, Atlanta, and Hoboken markets to join our growing team. Backed by some of the same investors as Airbnb, Compass, and Lemonade, and with a leadership team of mortgage industry vets and software engineers, we’re pursuing one simple mission: to make getting a mortgage as simple, fast, and transparent as any other online transaction. If you see the industry moving in the same direction as we do and have at least three years of experience and a strong desire to leverage technology to improve the mortgage experience for your clients, contact Anjelica Nixt.”

Looking to join a company where you can maximize your opportunities and grow your business? Want to be part of a fast-growing, top-ranked mortgage workplace with cutting-edge technology partnerships and a centralized team of loan experts who move loans efficiently and close on time? Top-ranked Inlanta Mortgage, Inc. is looking for loan officers at locations throughout the country with the right stuff to join our team of exceptional loan officers. Make plans to stop by our invitation-only reception at the MasterMinds Summit in Las Vegas on June 5th and learn more about what makes Inlanta one of the Nation’s Leading Mortgage Companies. For an invitation, contact  Inlanta’s Shaun McGuire or Beth Juergens, Directors of Branch Development, or visit Inlanta’s career page to learn more about a career at Inlanta.”

Lender services and products

Lending managers should always be focused on attracting and retaining top originator talent, especially in a constrained and challenging market. Your technology can play a big factor in your ability to do this; the right platform will enable your LOs to be more productive and efficient, and it will also empower them to trust your organization with their future. Maxwell’s digital mortgage point-of-sale stands out from other digital mortgage providers by providing a platform that entire teams of LOs can easily incorporate as a natural extension of their process, allowing them to accomplish more every day, delight their referral partners, and attract new business. Maxwell was intuitively designed based on input and feedback from 1,000+ LOs, and it shows in their adoption rates and their ability to have an impact in businesses faster. Request a Demo to learn more about Maxwell, today.

What did the 1000+ salespeople of American Pacific Mortgage have in common? They needed a technology solution to reach consumers faster and boost engagement throughout the customer lifecycle to build customers for life. The Total Expert Marketing Operating System® (MOS) became the chosen solution due to its enterprise marketing distribution, intelligent automation and centralized compliance platform. Read the full case study.

Mortech, a Zillow Group business, will be hosting an upcoming webinar, “Mortech Protection – Using Predictive Analytics for Mortgage Customer Retention” on June 5th at 1:00 PM CST. The webinar will discuss opportunities for mortgage growth using Mortech’s predictive analytics platform. Using a proprietary prediction model, the platform periodically identifies the likelihood that addresses within a lender’s database will be listed for sale within 90 days. With the majority of today’s home sellers looking to buy their next home at the same time, most sellers will be in need of a new mortgage to finance their next home. Using Mortech Protection’s pre-MLS data, you can better align yourself to be the first lender to reach out to these home sellers. Register today  to see how Mortech Protection can help you effectively target your outreach marketing to customers likely to need a new mortgage at an opportune time with relevant messaging.

Here is a free webinar titled, “Standing up Successful Construction Loan Programs.” This Land Gorilla webinar provides lenders a solid foundation of strategies, tools, and resources to start or scale CTP lending. Learn the business considerations many lenders face, key differences in CTP programs, and the profit landscape. These foundational strategies will help establish how your CTP product operates internally and supports consumers externally. Watch now. 

Informative Research recently announced their new division Informative Research Data Solutions (IRDS), which provides big data analytics, modeling, and business intelligence to improve consumer targeting and retention strategies for lenders. “The market is at a crossroads right now,” explained Sean Buckner, CEO and President at Informative Research. “Informative Research has access to more data than most in our market space – data that lenders can capitalize on to help offset the negative market impacts on their bottom line. With Data Solutions, we can help our clients work through that data and develop viable and profitable strategies around it.” IRDS incorporates a unique blend of credit, public record, property, and marketing datasets that are processed and accessed using the latest big data technologies and services. They offer Prospect Insight, Prospect Triggers, Risk and Retention Triggers, Borrower Intelligence, and MLS Triggers, among other services. Reach out now for more information!

How leading lenders think about technology: For in-house teams who are still looking at, evaluating, and testing digital lending tools, Blend has compiled a guide of our customers’ collective advice. We hope it shines some light on what we know can be an incredibly intimidating process. Get your guide.

Mortgage brokers – do you have a secret weapon? “The Answer” from Quicken Loans Mortgage Services (QLMS), was utilized 30,000 times in the last month alone, so it’s not a secret anymore. This tech-enabled tool is like having an underwriter available to answer your questions, anytime, day or night. You don’t even need to send an email or make a phone call, because your question can be answered immediately. The top questions loan officers asked in the last week were “What payment can be used for a student loan to qualify?” Not only can you get an instant answer to questions like this, but you can get your clients approved quicker and focus on what matters most – growing your business. Reach out to your QLMS account executive for more details, or connect with QLMS here to learn how the fastest-growing mortgage lender serving the needs of brokers, regional banks and credit unions can help grow your business.

FHA, VA, HUD, Ginnie news across the spectrum

The industry is still nattering about Ginnie Mae’s recent report on non-depository lenders. Ginnie’s priorities are risk management, monitoring new issuers, policy efforts, and watching prepayment issues on its $2.1 trillion of outstanding securities. Ginnie, with less than 200 employees, must understand various issuer business models, develop stress models, and is keep a close eye on 4-5.5% coupons. These “up” coupons are watched for unusual patterns of loans paying off early that have been originated less than six months ago, 6-12 months ago, and 12-24 months ago. After all, early payoffs impact investor opinion about the product that Ginnie is issuing.

And hey, newly approved issuers should know that if they don’t issue a Ginnie security within 18 months, well, you’ve got some explaining to do after you receive a letter asking you to leave the program.

Ginnie Mae published a Request for Input (RFI) as it considers making changes to the parameters governing loan eligibility for pooling of mortgages into its security. This RFI is a part of the agency’s continuing effort to monitor and support the market performance of the Ginnie Mae mortgage-backed securities (MBS). The publication of the RFI follows policy changes already implemented by Ginnie Mae and the Department of Veterans Affairs (VA) to address abnormal prepayment patterns in some mortgages pooled in Ginnie Mae MBS that negatively affect MBS pricing, to the detriment of home mortgage loan affordability. The RFI may be viewed here.

Ginnie Mae announced Leadership Staff Appointments.

FHA notified lenders of an inconsistency in its SF Handbook update issued on March 27, 2019. The update highlights corrected borrower qualification language for the FHA-HAMP option in Section III.A.2.k.v.(B)(2) of the SF Handbook. The correction to the qualification criteria is in bold below and should read as follows: (2) Borrower Qualifications The Mortgagee must ensure that the Borrower meets the following eligibility criteria for the FHA-HAMP Option: The Mortgagee’s calculations show that the resulting monthly Mortgage Payment not exceeding 40 percent of the Borrower’s gross monthly income can be offered, provided that either: the Borrower(s) existing front-end ratio is greater than 31 percent; or 85 percent of the Borrower’s surplus income is insufficient to cure arrears within six months. The criteria noted above will be incorporated into a future update of the SF Handbook. In the interim, mortgagees should continue to utilize the correct evaluation process in the Loss Mitigation Home Retention Option Priority Waterfall in Section III.A.2.j.iii.

FHA published Mortgagee Letter (ML) 2019-08: Construction to Permanent and Building on Own Land Programs, to revise and clarify its policy for each program. This ML provides revisions that separate the two programs according to the “one-time close” feature of the Construction to Permanent (CP) program and the “two-step close” structure of the Build on Own Land (BOOL) program (either separate or builder-financed construction and an ultimate FHA “take out” mortgage after construction completion). The guidance also addresses the use of the borrower’s equity in the land for the purpose of satisfying the borrower’s Minimum Required Investment (MRI) in both programs.

FHA issued a waiver of its policy on the timeframe for completing the inspection of properties prior to closing or submitting the mortgage for FHA insurance endorsement in the March 23, 2019, Presidentially-Declared Major Disaster Area (PDMDA) due to the Iowa Severe Storms and Flooding declaration (DR-4421). Mortgagees can find more information about FHA’s PDMDA policies, as well as the 203(h) Mortgage Insurance for Disaster Victims Program and the 203(k) Rehabilitation Mortgage Insurance Program, on the FHA Resource Center’s Online Knowledge Base.

FHA published a notice in the Federal Register (FR) (Docket No. (FR-6163-N-01) of all completed administrative actions taken by HUD’s Mortgagee Review Board during the period from October 1, 2017, through November 14, 2018. The FR Notice provides a description of, and the cause for, the Mortgagee Review Board’s administrative actions against HUD-approved mortgagees in 17 fact-based cases and 31 annual recertification violations.

To maintain production of FHA forms that are concise, easily understood and continue to reflect FHA’s statutory and regulatory program requirements; FHA is seeking public feedback on proposed changes to its loan-level certifications, annual lender certifications, and the Defect Taxonomy. The proposed changes streamline the certification statements while continuing to hold lenders accountable for compliance with all HUD eligibility and approval requirements. The proposed updates are now posted on the Single Family Housing Drafting Table (Drafting Table) on hud.gov.

NewDay launched Operation Home, a program that utilizes VA-guaranteed mortgages and seller-paid closing costs to put active-duty and veteran servicemembers military families into homes with as little cash out of their own pockets as possible.

U.S. Bank issued SEL 2019-20 for its Correspondent and HFA channels. Topics include multiple FHA updates, PITIA and DTI to include monthly assessment amounts, U.S. Bancorp employee loan exceptions, pre-funding income verification, collection and non-mortgage charge off accounts, disaster declaration updates and condo review reminders.

With Mortgagee Letter 2019-01, FHA revised its requirement for employment, income, and asset accounts to permit the use of TPV services. MWF Wholesale will follow the guidance per the FHA revisions effective immediately and will accept third party verification services.

Read the MWF wholesale bulletin for details.

Find out what’s new with LDWholesale. New information updates include loanDepot Jumbo Advantage Matrix, loanDepot Advantage Lending Guide and VA Interest Rate Refinance Reduction Loan.

Freedom Mortgage Wholesale is now offering Improved Lower FICO LLPAs for VA, FHA and USDA.

Ditech Correspondent Funding posted information regarding the new process for requesting VA appraisals. Additionally, Ditech posted an announcement about VA Underwriting guideline changes.

First Community Mortgage posted a new Wholesale Announcement 2019-15. Guideline updates are specific to FHA, VA and Jumbo products.

AmeriHome is offering a temporary buydown option available for 30-year fixed rate products in certain Fannie Mae, Freddie Mac, FHA, VA and USDA programs. A new temporary buydown product codes will be available in Correspondent Connect and the applicable program guides. A new temporary buydown LLPA will be included on the rate sheets. VA is in the process of extensively updating the VA Lenders Handbook. Per a recent AmeriHome announcement, unless VA provides a more stringent requirement, AmeriHome will require that loans meet the new requirements effective with loan applications dated on or after the respective dates as outlined by VA.

Carrington Wholesale offers VA IRRRL products which include no minimum FICO, no appraisal and no income documentation. For detail, view the Carrington Wholesale VA IRRRL guidelines.

Mountain West Financial, Inc. will be following the guidance set by VA with respect to accepting third party verification services. It is now acceptable to use “The Work Number” verification service for all VA loan applicants. A current paystub is not required with an automated employment verification if the automated verification includes all required information. The veteran cannot be charged a fee for the verification.

Capital markets

Low rates = forecast slow economy. Treasuries rallied Wednesday, including the 10-year closing at 2.23%, as trade and growth concerns continued to fuel safe-haven buying interest. China has threatened to use rare earths exports in trade war, fueling global growth jitters and an overnight risk-off trade which saw the 10-year yield easily blow through Monday’s 2.26 percent low by the open. Treasuries, backed by the full faith and credit of the government, have seen yields drop recently as investors are willing to accept less return on their investments in these times of geopolitical uncertainty and global growth concerns in exchange for less risk. The rally over the last week or so has led to a further inversion between the 3-mo bill and 10-yr note yield, which has feed into broader growth concerns as the spread is at its widest since the financial crisis. The CME FedWatch Tool now shows prevailing expectation for two rate cuts by the end of January 2020. Further fueling global growth concerns were threats from the Trump administration of penalties against EU over Iran sanction workaround; EU leaders attempting to choose a candidate to replace EU Commission President Jean-Claude Juncker in time for the next leader summit on June 21-22; and Germany’s Unemployment Rate rose in May, the first increase since 2013.

Today’s heavy economic calendar has already had several economic releases out, including initial claims for the week ending May 25 (+3k to 215k), Q1 GDP – Second Estimate (3.1%), Q1 GDP Deflator – Second Estimate (1%), and Advanced International Trade in Goods for April ($72.12 billion). Pending Home Sales for April is the only scheduled release not out yet. Additionally, Treasury will announce the auction sizes for next week’s 3- and 6-month T-bills; and will auction $40 billion 1- and $35-billion 2-month bills. We begin today with Agency MBS prices better .125 versus Wednesday’s close and the 10-year yielding 2.25%.

I head to Denver today. You might be from Colorado if you expect snow on Easter, Mother’s Day, Memorial Day, Halloween, and Thanksgiving – but not on Christmas.

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, “Are You Ready for CECL?” 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.)

May 29: LO jobs; processing, sales, u/w products; digital white paper; 40% of MLOs close what % of total volume?

Lenders ask themselves, “Would you fund loans where people cannot buy or sell houses because they can’t check, or record, liens?” Probably not, and this month Baltimore joined other cities that have fallen prey to crippling ransomware attacks. Using a ransomware variant called RobbinHood, hackers crept under firewalls crippling key city systems. Our industry is always under attack. The Buffalo News reports that apartment developer Robert Morgan and others have been indicted for 114 counts of mortgage fraud took place from 2007 through earlier this year involving “conspiring to defraud banks, as well as Freddie Mac and Fannie Mae, by providing false financial information and other documents to inflate commercial property values,” “deceiving loan servicers [to] conceal the actual financial condition of the properties,” and “manipulating income and expense for properties…to meet lender requirements.”

Jobs

Nations Lending is proud to announce and congratulate two of our high performing branches for being recognized within their local communities. Our Ocean City, Maryland branch, led by Michael Ciorrocco, was just named a Best Mortgage Company by The Metropolitan Magazine (Berlin & Ocean City regions) by the magazine’s readers. The Providence Journal named our Cranston, Rhode Island branch, led by Ken Ferranti – as a People’s Choice Award for Best Mortgage Lender for 2019. “We are excited to see that both of these Leaders have been recognized in their communities for the great work that they do.” said Corey Caster, EVP of National Production at Nations Lending. “Our goal is to fully support each of our branches in every way possible.” Nations Lending is a well-established, Agency/Government Servicer, licensed in 47 states. We are proud to service 100% of the Agency loans we originate. For more information and opportunity on how to join our growing organization, please visit the company’s website.”

NEXA Mortgage, the fastest growing mortgage broker in America, per growjo.com, is expanding. We are looking for a LO’s and Branches in AZ, CA, OR, WA, ID, CO, TX, UT, GA, and MT. NEXA is soon to be licensed in NC, SC, VA, MD, IL, WI, NM, and NV. The time has come: We help transition Bankers to Brokers, so don’t be left behind. We have fantastic processors who only get paid when the deal closes, just like you. The Best Support in the Business. Be the low rate leader in your market with an industry disruptive compensation plan including revenue share. Contact Michael Neill or click here to set up a WHY NEXA Zoom meeting.”

Lender products & services

Stearns Wholesale is excited to announce a new feature that allows its brokers to control the condition process within SNAP 2.0. With the snap of your fingers, you can push files directly to underwriting for review and speed up the condition review process. Loans move faster so you gain valuable time back. For 30 years, Stearns has empowered their brokers with tools to help them work smarter, more efficiently and close more loans. Hear from tenured Account Executive, Frank Burruel, about Stearns’ unrelenting commitment to providing the tools and service their brokers need to grow.

American Advisors Group (AAG, NMLS# 9392), a leader in senior home equity solutions, is hosting a live learning and networking session focused on utilizing the data behind America’s “retirement crisis” to explore the opportunity that awaits. Last year, AAG moved from a monoline product company, selling only reverse mortgage loans, to a home equity solutions business offering a full suite of products and services, putting AAG in a “category of one.” The market is more ready than ever before for senior home equity solutions. Are you interested in learning how you can start scaling your book of business? Register now for AAG’s June 5th Networking Session!

“Join us for National Mortgage Professional Magazine’s complimentary webinar “Worried About Amazon Mortgage? How to Survive and Thrive in the Age of AI and Mortgage Platform Disruption,” on Thursday, May 30 at 2 pm Eastern/11 am Pacific featuring Ken Bartz, Chief Vision Officer of Monster Lead Group. Ken will explain how today’s forward-thinking lenders are already preparing by changing their sales approach and becoming the consumer’s trusted resource. You’ll learn how asking the right questions makes you an instant expert where customers come back to over and over, and you’ll discover exactly where you should invest your time, resources and money to build value and increase retention over the long term. Key takeaways include: The simple ways to deliver more value to your borrower on your very next call, Critical skills to equip your LOs so they can win in any situation, Niches you should be exploiting right now, and where you’re already losing business, and much more. Register for this complimentary webinar here and start changing your business today.”

When a borrower goes into delinquency, it means there’s a disruption to the lender’s cash flow, right? Which is not good. And if the lender doesn’t have the technology to discover it for several months, they’re probably missing out on a lot of cash. That’s really not good. TMS has a blog out right now that explains just how their people and technology help borrowers avoid, as well as get out of, the delinquency state. TMS takes a proactive approach to the whole delinquency issue so a lender can work with borrowers to make sure they get on the right track and stay on it. Which also means that the lender’s cash flow is doing what it supposed be doing: flow.

BCG tells us that digital mortgages are here to stay and has released a white paper on the next wave of digital transformation in mortgage. The next generation of homebuyers wants a digital-first experience from end-to-end. The paper takes a close look at how digital solutions are poised to help lenders fight their way through tough times ahead. View the white paper here.

Deephaven IDENTI-FI AUS, a first of its kind technology, aims at helping originator pre-qualify loans at the point of sale. The IDENTI-FI AUS is powered by LoanScorecard and utilizes LoanScorecard’s Portfolio Underwriter technology which analyzes the 1003, fully evaluates the credit report and runs against Deephaven’s underwriting guidelines, exception logic, & matrices to provide originators with an instant-read on potential options across Deephaven’s non-agency loan programs. This, in turn, enables originators to place loans that might otherwise not qualify. This new technology is free, available 24-7, and is now at the originator’s fingertips. To find out more about Deephaven’s new technology or its suite of Non-QM products, email Wholesale, Correspondent, or visit https://deephavenmortgage.com/.

“Hey lenders, is your team killing it right now? Are you catching deals falling from the sky? So, I guess you don’t need all those deals from your database while the market is this hot, right??

WRONG!!! This is the part of the rollercoaster that you and your team love, but rollercoasters are great for theme parks but terrible for business. Soon you’ll be on the “I hope we can make it through this dry period” ride and then you are scrambling to get a deal. That’s dumb!! Smart lenders are using Automated Borrower Intelligence from Sales Boomerang. Lenders using this service are smiling all the way to the bank with over $700MM in new originations this year. All of these notifications came from their own database which means 100% of these deals came from existing relationships. Schedule your demo today and get off the rollercoaster.

Floify has just rolled out their newest partnership and integration with one of the industry’s leading credit reporting vendors, Partners Credit. Floify’s Partners Credit integration enables lenders who are using Floify to streamline their mortgage process to automatically collect a borrower’s credit report from Partners Credit upon submission of a loan application or on-demand directly from their Floify account. Floify’s integration with Partners Credit also eliminates the hassle of collecting credit reports by empowering borrowers to digitally submit consent directly to lenders in just a few clicks. Once ordered, borrower credit reports are seamlessly and securely delivered to the corresponding loan file. Floify’s integration with Partners Credit adds to their massive selection of credit, CRM, LOS, VOA/VOI/VOE and productivity solutions available to Floify customers who also subscribe to these services. To learn more about Floify’s new integration with Partners Credit, or their dozens of other integrations, request a live demo!

Efficiency

According to data from STRATMOR Group’s Originator Census study, the top 40 percent of originators account for more than 80 percent of total volume, a measure which has not changed by more than one percent in any given year. That means that 60 percent of an average lender’s sales force produces only 17 percent of total volume. The bottom 60 percent close less than one-half of one loan monthly. What’s a lender to do? In a recent article in the Insights Report, STRATMOR Senior Partner Nicole Yung suggests that lenders need to actively manage out low producers. “Our data shows that even for the bottom 20 percent, almost 60 percent of terminations are voluntary, which means these originators are leaving on their own versus the company managing them out or up. If lenders are looking to cut costs, they must be more aggressive in terms of managing sales. Set expectations and stand behind them.” If you’re looking for strategies to help you stabilize in this environment and build a scalable foundation for future growth, see, “Strategies for Mortgage Lenders to Maintain Profitability” by STRATMOR Senior Partner and CEO, Lisa Springer.

Vendor news

Non-banks now account for more than 60% of all newly originated mortgages, which means the use of warehouse lines has become an integral part of the origination process. Michael McFadden, former Finance executive from Stonegate Mortgage, has announced the launch of OptiFunder to automate and optimize the use of warehouse lines for non-bank mortgage originators. OptiFunder leverages Machine Learning and a patented Optimization algorithm to ensure originators achieve the absolute highest spread on warehouse. You best-ex your loan sales, now you can best-ex your warehouse funding. Until now, the funding process has been a forgotten part of the origination process. OptiFunder is fully integrated with the LOS, Warehouse Lender, and Document Custodian to bring automation to a currently manual process.

Cherry Creek Mortgage announced the launch of Connections, its new mobile app designed specifically for real estate agents and builder partners. The app provides loan transparency, real-time collaboration, and digital automation of critical touchpoints between the stakeholders involved in a residential mortgage. Read more about its App here.

Consolidated Analytics launched its Consolidated Collateral Analysis (CCA), a collateral risk reporting tool that assesses the integrity and accuracy of an underlying appraisal by combining a licensed review appraiser’s analysis and commentary with an intelligent, rules-driven risk score, and an Automated Valuation Model (AVM). Key features of the CCA tool include Appraisal Risk Analysis, Collateral Risk Score, embedded Automated Valuation Model, and a Review Appraiser’s Value.

Capital markets

Tensions over trade between the US and China continued to be the main focus in recent weeks as a resolution appears to be further away than markets were anticipating. As a result, last week yields on the US 10-yr fell from 2.41 at the start the week to 2.32 by week’s end. Trade data was disappointing in April but it was impacted greatly by the grounding of the Boeing 737 MAX and its impact on civilian aircraft orders. Nonetheless, orders will likely be impacted by the trade negotiations as well as slower overall global growth. A positive outcome from all this has been a decline in mortgage rates which saw the rate on a 30-yr fixed drop to 4.14 percent in April; contributing to new home sales running 7.0 percent ahead of last year’s pace. Headline new home sales showed a decline in April but this was after March’s number were revised upward to a cycle-high 723,000 annual unit pace. April’s 673,000-unit pace was the fourth strongest since 2007. Existing home sales continue to run slightly below last year’s pace but are expected to strengthen. As a reminder, new home sales are counted when the contract is signed while existing home sales are counted after closing.

Yesterday fixed-income securities began the holiday-shortened week in rally-mode, including the 10-year dropping to 2.27%, as the long weekend did not produce any notable progress in trade talks with China. President Trump added salvo to the fire by saying that China is ready for a trade deal, but the U.S. is not ready to make a deal with China just yet. Weekend elections to the European Parliament saw a continuation of a recent trend of growing popularity among nationalist and populist parties. Meanwhile, in Germany, Bloomberg reported Chancellor Angela Merkel now plans to stay in her post until 2021 due to a belief that her successor is not ready to assume the leadership position, and the European Commission may begin a disciplinary process next week over Italy’s 2018 debt levels that could lead to a $3 billion fine.

We start the morning with news that Federal Reserve Bank of New York Markets chief Simon Potter will step down on June 1. Weekly mortgage applications for the week ending May 24 from the MBA kicked off today’s calendar (-3.3%, refis dropping 6%). There is some second-tier economic news to be released today, as well as the Bank of Canada’s monetary policy decision and statement where rates are expected to remain steady. We begin today with Agency MBS prices better by a solid .125 and the 10-year yielding the easy to remember 2.22%.

I’m not the easiest guy in the world to get along with. So when our anniversary rolled around, I wanted my wife to know how much I appreciated her tolerating me for the past 20 years. I ordered flowers and told the florist to enclose a card that read, “Thanks for putting up with me so long.”

When my wife got the delivery, she called me at work.

“Just where do you think you going?” she asked.

“What do you mean?” I said.

She read the card aloud as the florist had written it: “Thanks for putting up with me. So long.”

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, “Are You Ready for CECL?” 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.)

May 28: IT, sales, LO jobs; MSR sale, cost bundling, high balance products; the CFPB wants your input!

First off, best wishes to Quicken Loans’ owner Dan Gilbert who was hospitalized Sunday after experiencing stroke-like symptoms. As the lending industry sees 19-month lows in rates (the 10-year hit 1.37% in mid-2016) and focuses on the future and ruminates on the latest big M&A deal (RoundPoint, with its $91 billion of agency servicing and its LO/correspondent origination channels, will become a wholly-owned subsidiary of Freedom Mortgage), we continue to be reminded of the problems that the financial services sector faces. Namely, as was noted in this commentary Saturday but is worth repeating, First American’s data leak has exposed sixteen years of borrower data. Hopefully there was no large-scale unauthorized access – but hope is not a strategy. What is your company doing to avoid this, and the corresponding financial liability?

Employment

PHH Mortgage is searching for someone to lead its Lending Technology business as Head of Lending Technology. The successful candidate will have deep technology experience with an emphasis on Mortgage Platforms and will have extensive experience with core lending technologies including Encompass, Velocify, Compass Analytics, Marketo, and telephony systems. This results-driven Leader will be an innovator and be able to provide both big picture strategic leadership and day-to-day management to a talented team of tech professionals, and will execute on initiatives in collaboration with the Executive Leader of HomeLoans and report directly to the Chief Information Officer. This position will be located in Mount Laurel, NJ. Interested candidates may send their resumes & questions to Heather Nehmer or visit jobs.ocwen.com to view the full job description.

For LOs looking for a new home, Mortgage Unlimited, recently named by the National Mortgage News as one of 2019’s Best Mortgage Companies to work for, has partnered with Mortgage Coach to become one of its Enterprise accounts. “This collaboration between our two companies is a game changer!” said Justin Tagliareni, CEO at Mortgage Unlimited. “Not only does Mortgage Coach ensure we live by our Mission Statement to Love, Educate and help families prosper. It also allows us to expand our Sustainable Lending Platform and create clients for life. Mortgage Unlimited, L.L.C. is a family owned mortgage lender in existence for over 30 years and headquartered out of Garfield, NJ. Our company proudly recognizes our moral and ethical responsibility to protect the financial well-being of the families and communities we serve and reinvest a portion of our profits back into the local communities through charities and non-profit organizations. We use technology to make a more personal connection and a lifelong relationship with the families we serve.”

SocialSurvey, the leader in online presence and reputation management, has experienced explosive growth in the mortgage vertical and is just getting started and has an immediate need for a Director of National Sales to continue that growth and lead the expansion into credit unions, banking, title, and servicing. This position will also be responsible for developing and driving opportunities with larger, key accounts. Candidates must have a proven background in developing go-to-market strategies and leading sales teams in an enterprise SaaS environment. This is a unique opportunity for a proven SaaS sales leader. Are you ready for a bold move? Send confidential resume and contact info to Gaby Esposito.

Mortgage Investors Group recently announced that Gary Royal has joined its team to oversee the mortgage lender’s growth in new markets across the Southeast region. As MIG’s new VP, Southeast Regional Production Manager, Royal will lead the Knoxville-based company’s efforts to expand its retail presence outside of Tennessee, where it has been the top residential mortgage lender for more than a decade. The expansion includes opening branches in select markets across the Southeast, including FL, GA, AL, NC, & SC. Coinciding with the expansion, MIG unveiled an updated logo and fresh tagline to mark its 30th anniversary. The new modern, simple and sophisticated logo boasts a brighter green, while other aspects of the updated brand will guide the company in its growth into new markets. The firm has nearly 400 employees in 26 branch locations across Tennessee and is excited to be expanding.

Interested Branch Managers and Loan Officers should contact Gary Royal (404-376-4320).

As Academy Mortgage’s national footprint grows, the independent lender recently announced the addition of two Regional Sales Leaders. Jed Rudd joins Academy as its Mid-South Regional Sales Leader. Jed is a passionate leader who thrives on building energetic and top-performing teams. He brings to Academy a wealth of experience and most recently served in leadership at Guild Mortgage. Jed is a Veteran of the U.S. Air Force. Mark Deitz is now Academy’s Mid-Atlantic Regional Sales Leader. Coaching and helping Loan Officers build successful careers are most important to Mark. He is an experienced mortgage professional and previously held leadership positions at EagleBank and First Savings Mortgage. With their demonstrated expertise in growing market share and leading award-winning teams, Jed and Mark will play key roles in helping Academy’s Sales Teams achieve their Potential. Contact Chad Melin, VP of National Business Development, if you’re interested in learning from Academy’s strong leaders.

Lender products and services

JMAC Lending is pleased to announce the addition of four key industry veterans to the sales team as Sr. Account Executives: Kris Varia, Tom BennettJeffrey Warner and Tamara Webster. Kris, Tom and Jeffrey will service accounts in the Southern California area. Tamara works in Northern California and the San Diego area. “Each of these individuals has a service-first mindset along with outstanding TPO and correspondent skills fit for today’s market,” Regional Sales Manager Al Gruzdis says. “We’re excited to add these lending pros to our very strong sales team.” To meet and work with our new Sr. Account Executives, please contact sales@JMACLending.com. Visit www.JMACLending.com to learn more.

MortgageFlex Systems believes in the power of integrations and adding value to its lenders. Most recently, a MortgageFlex customer implemented MortgageHippo, a digital POS lending platform. Verity Credit Union wanted to maximize conversions and increase efficiency. MortgageFlex Systems was happy to help them by providing this efficient solution while offering lower costs. Now MortgageFlex is working with MortgageHippo to offer a best of breed partner approach with bundled costs. MortgageFlex is more than a vendor. We are a partner who wants to see you succeed. Our lenders are closing more loans per FTE per month (3.5) to be exact. Let us add more to your lenders while lowering your cost to originate. If your tired of a system that isn’t customizable or reliable reach out to us! sales@mortgageflex.com or 904-356-2490. We’d be happy to discuss an efficient solution.

Caliber Home Loans, Inc. is excited to launch its Nationwide High Balance Fixed Rate Mortgage today. The high balance loan program offered by FNMA/FHLMC is great for high-cost markets on the coasts, but doesn’t solve a growing need in other states and markets. Until now, customers outside of defined high cost markets are forced to select a Jumbo loan product. Customers seeking a loan amount between $484,351 and $726,525 now have another choice with Caliber! The FNMA/FHLMC high balance product will continue to be available in eligible markets at Caliber.

PHOENIX recently completed an asset sale on behalf of Nationwide, comprised of $750M+ FNMA/GNMA/PLS MSRs, $46.5M GNMA EBO Whole Loans and $7.3M Scratch & Dent Whole Loans. This transaction superbly highlights the depth of our team’s experience and capabilities. PHOENIX Mortgage Services completed pre-sale due diligence, which enhanced our Whole Loan and MSR trading desks in carrying out a sale that successfully liquidated the portfolio with no fallout.

Prime Mortgage Lending, Inc transitions to GoPrime Mortgage, Inc. on June 1, and the “go” in our new name simply emphasizes our dedication to taking action for our clients and our employees. The same company, the same unbeatable service, the same dedication to the best back-office support and top-notch technology – GoPrime Mortgage, Inc. will continue to go above and beyond for our team members so they can stay focused on delivering extraordinary service to their clients. We are thrilled to take the next step in customer service and community connections as GoPrime Mortgage, Inc. For more information about our new look, please visit our blogs at www.goprime.com.”

Todd Duncan’s High Trust Company proudly announces Morgan Stanley’s Vice Chairman and Managing Director, Carla Harris, as the Sales Mastery 2019 keynote speaker. A powerful businesswoman and passionate speaker, Ms. Harris is responsible for increasing client connectivity and penetration, enhancing revenue across Morgan Stanley. She is committed to providing you with tools, strategies, and pearls of wisdom honed by her extensive experience. For nearly 30 years, Sales Mastery has been equipping professionals like you with powerful tools, experience-based insights, and clear strategies that help you make more money, impact more people, and enjoy a more balanced and rewarding life. Come learn from Carla Harris and a host of other impactful guest speakers at Sales Mastery 2019, the #1 life-changing event in the financial services industry. Become FIT! FAST! FORWARD! You owe this to yourself, your family, and your team. Learn more and secure your spot TODAY!

Regulatory chatter

Contrary to what some believe, the CFPB has not gone away, and in fact is very active – just not in the headline-grabbing enforcement actions and penalties. Automated valuation models? Yup. On May 22, the Office of Information and Regulatory Affairs released the CFPB’s spring 2019 rulemaking agenda. According to a Bureau blog post, the information presented represents regulatory matters it “reasonably anticipates having under consideration during the period of May 1, 2019, to April 30, 2020.”

Residential lenders are particularly interested in what the CFPB is doing in terms of Property Assessed Clean Energy Loans (PACE). On March 4, the Bureau published an advanced notice of proposed rulemaking (ANPR) and request for comments in response to Section 307 of the Act, which amended TILA to mandate the CFPB propose regulations related to PACE financing. The regulations must carry out the purposes of TILA’s ability-to-repay requirements, and apply TILA’s general civil liability provisions for violations. Buckley LLP did a write up about it.

HMDA/Regulation C is on the table. On May 2, the Bureau issued a notice of proposed rulemaking (NPRM) to raise permanently coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit under the HMDA rules. Specifically, the NPRM would raise permanently the reporting threshold for closed-end mortgage loans from 25 loans in each of the two preceding calendar years to either 50 or 100 closed-end loans in each of the preceding two calendar years.

So is the Debt Collection Rule since earlier this month the CFPB issued a NPRM to amend Regulation F, which implements the FDCPA, covering debt collection communications and consumer disclosures and addressing related practices by debt collectors. The Bureau reports that the NPRM “builds on research and pre-rulemaking activities regarding the debt collection market, which remains a top source of complaints.”

Why should originators care? Let’s take a deeper dive on one issue. On May 7 the CFPB issued proposed rules under the Fair Debt Collection Practices Act (FDCPA) and its authority under the Dodd-Frank Act, potentially the first substantive regulations for debt collection practices since the FDCPA was enacted in 1977. But why is this important for LOs to know? The Proposed Rules would clarify the application of the FDCPA to current market conditions, most notably by permitting the use of text messages, emails, and social media to communicate with debtors.

At the same time, the Proposed Rules would address concerns about traditional means of communication, such as phone calls and voice mail messages; interpret and apply prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection; and clarify requirements for certain consumer-facing debt collection disclosures. To provide small financial institutions permanent relief from expanded Home Mortgage Disclosure Act (HMDA) requirements, CFPB has also proposed to permanently raise the loan thresholds for open-end and closed-end lines of credit, seeking industry feedback on the costs and benefits of the expanded data collection requirements mandated by the 2015 HMDA rule.

The CFPB proposes to amend Regulation F, 12 CFR part 1006, which implements FDCPA and currently contains the procedures for State application for exemption from the provisions of the FDCPA. The Bureau’s proposal would amend Regulation F to prescribe Federal rules governing the activities of debt collectors, as that term is defined in the FDCPA. The Bureau also proposes that FDCPA-covered debt collectors comply with certain additional disclosure-related and record retention requirements pursuant to the Bureau’s rule-making authority under title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Proposed rule provisions that rely on the Bureau’s Dodd-Frank Act rule-making authority generally would not require FDCPA-covered debt collectors to comply if they are not collecting debt related to a consumer financial product or service.

Capital markets

The media, and apparently traders, continue to be focused on the United States/China trade talks. Rates are near their lowest yields of 2019 (including the 10-year closing yielding 2.32%). Comments from President Trump did not close the door on a potential trade deal with China – we’re always waiting for more comments. Reports from China suggesting there are no current plans for a meeting between the leaders of the countries. Economic data showed durable goods orders for April revealed a deceleration in business spending during the month after a smaller than previously estimated increase in March. International news of note included announced expectations the Reserve Bank of Australia will cut rates three times this year, Japan’s Prime Minister Shinzo Abe is reportedly considering a visit to Iran in June, and British Prime Minister Theresa May’s announced resignation (which doesn’t change the EU’s position on Brexit).

This holiday-shortened week has a lot of news and a few Fed speakers. Kicking off today’s calendar will be March home prices from FHFA and S&P/Case-Shiller figures in a couple hours. Later in the morning is May consumer confidence followed by the Dallas Fed Manufacturing Index for May. Tomorrow has a light calendar before markets really take note on Thursday with the release of the second estimate of Q1 GDP. We begin today with Agency MBS prices are up .125 versus Friday and the 10-year yielding 2.29% on global economic nervousness.

1 in 5 people in the world are Chinese. There are 5 people in my family, so it must be one of them. It’s either my Mom or my Dad. Or my older brother Corbin. Or my younger brother Ho-Cha-Chu. But I think it’s Corbin.

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, “Are You Ready for CECL?” 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.)