Dec. 12: LO jobs, compliance personnel moves; non-QM & warehouse products; STRATMOR Tech Insight Study

Who among us has pushed for abolishing the mortgage-interest deduction, supported getting rid of government subsidies for the 30-year fixed-rate mortgage, putting Fannie and Freddie into receivership, and supported ending the sweep of F&F’s profits into the Federal Government? The answer is Dr. Mark Calabria, currently working for Mike Pence, and if confirmed by the Senate, he’ll replace Mel Watt as the Director of the FHFA, overseer of Freddie and Fannie. As mentioned yesterday in this commentary, there are plenty of ways the government can reduce its footprint in home lending: lowering LTVs, raising gfees, cutting back on non-owner or high-balance lending, adjusting the QM patch for DU & LP approval, and so on. Confirmation will take months and lets hope he has the industry’s best interests in mind, but given this personnel change, interest rates, M&A activity, and a housing shortage, it could make for an “interesting” 2019.

Jobs & promotions

“Retail branches looking to grow your income, improve your pricing, and expand your product line as you head into the challenging, new year ahead, we are an established and motivated mortgage banker that is interested in recruiting producing branches or teams. Join a company that has competitive pricing, 24-hour/around the clock operations and processing that makes decisions every day for the benefit and improvement of the sales team. If your numbers are stale due to the lack of competitiveness, and support, while experiencing anxiety from an unorganized group before closing, or are in need of solid processing support, then we are the right organization for you. Branches located in CA, CO, WA, OR, TX, FL, VA, that produce $5M – $30M monthly that are looking to become more competitive, increase margins, and have a full suite of loan products including an aggressively expanded Non-QM product line, should contact EVP Greg Handy.

Fidelity Bank Mortgage is pleased to announce the hiring of Amy Butler as the new Builder Services Manager, responsible for strategy and initiatives for Fidelity Bank Mortgage Builder clients. Amy is a veteran of the Mortgage industry, serving in various sales and leadership roles. Her vast network plus her devoted industry involvement, including past President of the Atlanta Mortgage Bankers Association, make her a great fit for the growing team. Click here to contact Amy. Fidelity Bank Mortgage is headquartered in Atlanta, Georgia with Retail Mortgage production offices throughout the Mid-Atlantic and Southeast. Since 2008, the Mortgage division has grown to over 40 offices and over 600 employees. We are expanding into new markets and interested in Top Sales and Leadership Talent. Click here to contact David Rapson, Senior Vice President, Mortgage Production Manager, and view our eBook to learn more about our team.

Mortgage Possible launches nationally, names Eddie Brown Managing Director of National Production. Brown has 21 years of experience driving change and strategy for residential mortgage lending, focusing his efforts on enhancing customer experience through innovation. In 2011, Brown was brought on board to help promote productivity and growth for Emery Financial, where he lead the company to its largest dollar production month in company history. More recently, Brown served as the Managing Director of leading lender, where he brought significant gross volume increases to both consumer direct an inside sales for wholesale production. “I’m grateful for the opportunity to help drive change in the industry with Mortgage Possible,” said Brown. “People who don’t care will go the way of Blockbuster & Toys R Us. No business can rest on their past success as the market is always changing. It’s my duty to my family and my team to be on the forefront of change.”

For Loan Officers or Branch Managers looking for a change, MortgageRight sets itself apart from other companies by offering lower rates, better pricing and higher compensation.

MortgageRight is making a name for itself across the nation by operating with thinner margins than other industry players due to several key strategic factors put into place by ownership in order to help their producers win in a market like this one. Very simply, they can offer lower rates and/or a higher comp and they can back their claims up 100%. But don’t take their word for it – They’ll put any candidate in touch with recent hires and existing LOs to discuss their strengths along with everything else they have to offer. For a pricing engine walk through, contact Mike Russo at (866) 425-5456 or visit them at www.branchright.com.

Lenders Compliance Group, a nationwide risk management firm, announced that Joyce Wilkins Pollison has been appointed to the position of Executive Director as well as retain her position as Director of Legal and Regulatory Compliance. Jonathan Foxx, Chairman and Managing Director, noted that, “For many years, Joyce has provided our clients reliable compliance support on applicable federal and state banking laws and regulations, identifying regulatory risks as well as developing, reviewing, and editing procedures and policies to assure regulatory compliance. In addition to her role as Director of Legal and Regulatory Compliance, Joyce has demonstrated substantial leadership and served as Team Leader for LCG’s monthly clients.” In 2018, LCG’s growth increased for its twelfth consecutive year. This continuing growth has strengthened the need for enhanced executive management. Ms. Pollison will have oversight of LCG’s monthly clients, projects, regulatory tune-up’s, audits, risk assessments, research and team assignments, webinars, educational venues, conferences and convention exhibitions. Recently, Ms. Pollison was recognized as a recipient of the honor of Mortgage Banking’s Most Powerful Women 2018 by National Mortgage Professional Magazine. For more information, please contact compliance@lenderscompliancegroup.com.

Lender products and services

In eMortgage news, congratulations to Texas Capital Bank on achieving an industry first! Texas Capital Bank, N.A. helps lenders position themselves for the future by providing warehouse financing secured by eNotes and purchasing fully digital mortgages through its Correspondent Lending group, is the first bank in the industry to do both. Contact Bruce Karda, National Sales Manager for Warehouse Lending, or Matthew Mead, National Sales Manager for Correspondent Lending, to learn how they can support your business.

Floify just announced that its next-generation mortgage point-of-sale system is now available for use with Ellie Mae’s Encompass® digital mortgage solution. The seamless, two-way integration allows lenders to access Encompass® directly through Floify to drive quality and efficiency in the loan origination process. By using the Encompass® integration with Floify, loan originators will be able to quickly and easily process borrower loan applications, securely send and receive supporting documentation, automatically deploy status updates and reminders via email and SMS, and more – all from a single, intuitive user interface. To see this powerful integration in action, request a live demo!

Non-QM origination volume continues to grow at a robust pace, and as we near the finish line for 2018, the velocity of growth, interest in the product, and capital investment are at an all-time high. Deephaven Mortgage is committed to helping the industry continue its upward trajectory. To help originators & executives learn more about the Non-QM marketplace, Deephaven has partnered with NMP on several informative webinars that you shouldn’t miss: “What & Why of Non-QM” and learn about “How to build a Non-QM focused business.” Find out more about how Non-QM can help you grow your business by contacting us at

brokerinfo@deephavenmortgage.com (Wholesale) or sales@deephavenmortgage.com (Correspondent).

PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), “continues to look for opportunities to help reduce our customers costs as related to their warehouse funding needs. That is why we offer multiple incentive pricing options to reduce costs for our customersTiered Utilization Incentive Pricing allows our customers to set utilization tiers they are comfortable meeting with rate incentives that reduce their costs. Our customers can also take advantage of Deposit Incentive Pricing. PlainsCapital Bank offers a competitive line up of Treasury Management products and when our customers take advantage of those products, they earn rate incentives to further reduce costs. We are committed to building strong relationships with our customers and providing the service you need most.” If you are interested in learning more about PlainsCapital Bank National Warehouse Lending please Deric Barnett, EVP National Warehouse Lending.

Tech & vendor news

Lenders need to put this one on their New Year’s Resolution list: Lisa Springer, CEO of STRATMOR Group tells me that STRATMOR has released its 2018 Technology Insight Study with more information than ever before on a wide range of system technologies that lenders are actively using. “This report is the only independent technology survey in the industry that captures data on mortgage lender experiences with their technology, from lead generation through post-closing and delivery. Our goal in developing this study is to offer lenders much needed, lender perspectives on the technologies at work in the mortgage marketplace. One of the biggest ‘aha’ moments of this year’s study is that digital is no longer a competitive differentiator: it’s the new reality. Customers expect a digital experience, and lenders who are not offering customers options for executing disclosures, uploading docs and other origination steps have fallen far behind their peers. This study gives lenders a voice in their overall technology experience without the hype or sales pitch from the vendor.”

(The comprehensive end-to-end study that includes the Digital findings is now available for purchase, or lenders can purchase the Digital Mortgage section separately. For more information, contact the STRATMOR Group through their website or click here: STRATMOR Tech Insights, to purchase.)

Riivos, a financial forecasting company, continues to add clients and has added Jeffrey Axelrod to its staff. Riivos works on forecasting or doing ‘what if’ scenarios for lenders. For less than a basis point Riivos helps originators make more money by providing visibility into the financial and operational components of the loan manufacturing process – management can make informed decisions on which changes to make to become more profitable. On average, Riivos mortgage customers are actually making 11 bps more in 2018 than 2017, significantly outperforming the industry in net income bps.

Capital markets

The U.S. 10-year displayed the same movement yesterday as it did to start the week, closing +1bp for the second consecutive day; this time the figure at closing registered 2.87%, with shorter duration Treasuries rising in a curve-flattening fashion on no real news. Trade tensions with China highlighted the day, with reports of Trade Rep. Lighthizer, Treasury Secretary Mnuchin, and China Vice Premier Liu having a call to advance trade talks. China reportedly agreed to cut U.S. auto import tariff rate to 15% from 40%, but it is unknown when the change will go into effect. On the Brexit front, after UK Prime Minster May asked to renegotiate the Brexit deal with EU, EU President Tusk said the EU will not renegotiate the deal and German Chancellor Merkel said there is no way to change the Brexit deal. And Reserve Bank of India Governor Urjit Patel abruptly resigned in a move that was interpreted as a signal of dissension between the government and the central bank over the handling of monetary policy.

In this country and the impending U.S. government shutdown, as President Trump said to Representative Nancy Pelosi and Senator Charles Schumer that he would be proud to shut down government in name of border security if he does not get funding to build the wall. In Fed-land, Former Fed Chair Yellen said leveraged loans and reductions in regulatory authority could be a potential setup for another financial crisis at some point. And Bloomberg reported Fed Chairman Powell plans to widen the Fed’s communication plan to build public trust and insulate the Fed from political attacks.

Turning to today, MBA mortgage applications for the week ending December 7 kicked off today: +1.6% (refis at 41.5% of apps), the Consumer Price Index for November came in flat, core +.2%, as expected. Real weekly earnings are seen rising 0.1% MoM, the same as October. Closing the day is the November Treasury budget statement, due to be released at 2:00pm with the CBO estimating a deficit of $203 billion compared with $138.5 billion in the prior fiscal year. We begin today with the 10-year yielding 2.89% and Agency MBS prices worse a smidge versus last night.

(Thanks to Ed W. for this one.)

There was a man who worked for the Post Office whose job was to process all the mail that had illegible addresses. One day, a letter came addressed in a shaky handwriting to God with no actual address. He thought he should open it to see what it was about. The letter read:

Dear God, I am an 83-year-old widow, living on a very small pension. Yesterday someone stole my purse. It had $100 in it, which was all the money I had until my next pension payment. Christmas is in two weeks, and I had invited two of my friends over for dinner. Without that money, I have nothing to buy food with, have no family to turn to, and you are my only hope. Can you please help me?

Sincerely, Melva

The postal worker was touched. He showed the letter to all the other workers. Each one dug into his or her wallet and came up with a few dollars. By the time he made the rounds, he had collected $96, which they put into an envelope and sent to the woman.

The rest of the day, all the workers felt a warm glow thinking of Melva and the dinner she would be able to share with her friends. Christmas came and went.

A few days later, another letter came from the same old lady to God. All the workers gathered around while the letter was opened. It read:

Dear God, How can I ever thank you enough for what you did for me?

Because of your gift of love, I was able to fix a glorious dinner for my friends. We had a very nice day and I told my friends of your wonderful gift.

PS: there was $4 missing. I think it might have been those b-stards at the Post Office.

Sincerely, Melva

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, “Servicing: Don’t Underestimate Liquidity.” 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 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Dec. 11: LO jobs; LO training, CRM & recruiting products; December training still available; FHFA leadership conjecture

I’m a capital markets guy. “Bespoke luxury” isn’t in my vocabulary. First-time home buyer prices and floorplans aren’t in the cards at the new Aston Martin apartment building in Miami. If you buy one of the 47 most expensive apartments, they come with a new DB11. And, not to be outdone, Porsche also has a residential building – thanks to Jim P. for passing that along. (But owners won’t be building any sculptures to flip off town officials in the name of “art” or “expressionism” like a fellow did in Vermont.) You can bet those developers are hoping the market doesn’t sag – but it appears that the market is sagging in some areas already, or at least not going up as fast. Is that a surprise? “No tree grows to the moon,” as they say, and everyone knows house appreciation can only outpace wages for so long.

Employment & promotions

Looking ahead to a year of growth in 2019, Academy Mortgage has implemented a new regional leadership structure to provide exceptional service to the company’s hundreds of branches nationwide. The independent mortgage lender recently named 17 Regional Sales Leaders to bring enhanced Loan Officer support, expedited decision-making, and local market knowledge and experience closer to home for increased efficiency. These dynamic new leaders will oversee branch and business development, recruiting, and one-on-one coaching and mentoring in their identified regions. To connect with one of Academy’s talented and experienced Regional Sales Leaders in your area, contact Chad Melin, VP of National Business Development.

“Third-quarter profitability was the lowest since the MBA’s study got underway in 2008.” Who still thinks the answer to market compression is cutting LO Comp? While other lenders ARE cutting LO comp, Canopy is expanding a National Network of forward-thinking Loan Officers who are comfortable making more money. “It’s a no-brainer! Really, when you cut the fat from the traditional lending model there’s a lot more to go around,” per Aaron Brown, CEO of Canopy Mortgage. See how Canopy Mortgage is trimming the fat from retail, keeping LO comp intact, and creating unheard of efficiencies with proprietary tech that allowed ONE loan officer to close over 100 loans in one month! Do you believe there’s a better way to do home loans? Consider joining Canopy: Reach out to Josh Neumarker, National Hiring Director at Canopy Mortgage (888-696-9076).

Eagle Home Mortgage announced the promotion of David Todd to EVP of Production for the Company’s builder division and is tasked with national sales, operations and production for Eagle’s builder division and expanding the Company’s footprint in the industry. (David succeeds Laura Escobar who was promoted to President of Eagle Home Mortgage in August.)

Lender products and services

Not converting your leads? Hit the ground running in January 2019 with Master Mortgage Coach, Cindy Ertman, one of the industry’s Top 100 Loan Originators in the U.S. for over a decade. Cindy’s 90 Day Jumpstart to Mortgage Success Program will help you learn in 90 days what has taken other Mortgage Loan Originators years to accomplish on their own. You’ll learn to work smarter, not harder, using Cindy’s proven Connection to Conversion Lead Strategy System. See testimonials from past participants and learn more here now. LIMITED TIME OFFER! Receive a $200 DISCOUNT by using discount code 90DAY200 at checkout. As a bonus, you will also get a FREE copy of Cindy’s proven 10 Easy Steps to Secure Your Listing Agents.

“Are you tired of losing business because you didn’t have time to manually add contacts to your CRM? Now Loan Officers can easily capture and convert more leads and referrals without double data entry with Usherpa’s integration with CardTapp. This powerful integration automatically adds new contacts to Usherpa’s nurturing marketing campaigns and follow-up workflows every time the CardTapp App is shared. Never lose a referral and increase your pull-through and production by automating marketing to every lead every time. Usherpa is committed to helping you close more deals with less effort. Schedule a demo today to see all the new and innovative technology Usherpa can offer you.”

Home buyers have changed how they shop and public search sites like Zillow and Trulia are responsible for conditioning consumers to expect home and loan shopping together in a single user experience. HomeScout pioneered the first custom branded, lender-centric solution that provides consumers with an online experience where they can find and fund a home in a single location. With the recent integration of Optimal Blue loan pricing into its mortgage calculator and 100% MLS listing data, HomeScout empowers your buyers to make confident purchase decisions without additional rate shopping. Introduce your borrowers to a better online experience with accurate, real-time pricing combined with automated alerts that provides consistent engagement with your customers, helping you close more loans. Take the behemoth search sites out of the equation and schedule a HomeScout demo HERE or give them a call at 952-831-0623.

Tiz the season to recruit! “With current market conditions and a seasonal dip in purchase business, we’ve noticed many originators making transitions to maintain their income and lifestyles. Quality talent doesn’t fall into our laps or respond to job ads, and you need to have a strategic plan to identify and attract producers on the move. As the leading growth partner in the mortgage industry, Model Match can help! We provide a full range of solutions to help our partners grow their business.  Whether you’re looking to increase the effectiveness of your recruiting efforts or need a trusted partner that can attract high-quality candidates for you, Model Match is your solution. Between our award-winning Talent Management Software and seasoned recruiting professionals, we ‘Model Match’ the right people, to the right company, at the right time! CLICK HERE, let us show you the value we can create for your business!”

FHFA (overseer of Freddie and Fannie) management

Talk of Mel Watt’s sexual harassment (misconduct) claims haven’t been in the headline press lately, and his term ends next month. The Wall Street Journal reports that President Trump is expected to nominate Dr. Mark Calabria, Mike Pence’s Chief Economist, to be the next director of the FHFA, the GSEs’ regulator. Dr. Calabria has been an outspoken critic of the GSEs, but he will be implementing the administration’s agenda, not his own…right?

A more forceful move to end the conservatorships of Fannie Mae and Freddie Mac? A reduction in the GSEs’ footprint? Reducing non-owner, high balance, cash-out refis, or affordable housing initiatives that F&F are known for? An increase in credit risk transfers and more private MI coverage? Don’t worry about those recently imposed higher loan limits: the FHFA lacks the legal authority to lower the GSEs conforming loan limits. And no one wants to disrupt the housing market, which could, in turn, hurt the president’s reelection chances.

Recall that under Director Watt, the GSEs reintroduced the 97 LTV product and have also been active in growing 43+ DTI lending. Reducing or eliminating this business could shift it back to the Federal Housing Administration. There is hope, if Calabria is indeed “the guy,” he would end the profit sweep and allow the GSEs to start rebuilding capital. The Senate would need to confirm him, which could take months, so the smart money, including KBW, is on the administration nominating Dr. Calabria but also replacing Director Watt in January with a temporary director, possibly Comptroller of the Currency Joseph Otting.

Training & events in Dec

Things wind down, but there are still ways before Christmas to help you learn more!

Last chance in 2018 to become a Certified Military Home Specialists (CMHS). CMHS designees are housing professionals who work with our military personnel and their families. This designation helps to establish credibility, allow the originator to build a worthy rapport and accurately guides them toward their housing and budgeting goals in a timely manner. As a CMHS, you will have a deeper knowledge of jargon, military lifestyle and the finances of our beloved military. Sign up now to participate in the live training offered by Boots Across America and presented by Beverly Ray Frase, National Director, and National Mortgage Professional Magazine’s nmpU on Thursday, December 13th at 2PM ET. Follow this link to register, download the workbook, slides, sign-up for the live webinar, pass the exam and start working with more active service members and veterans in 2019. Normally it’s $79 for the CMHS Live Webinar Training and Certification, however our daily readers only pay $49 when you register and enter the code ROBCMHS.

Join National Mortgage Professional Magazine on Monday, December 17th at 2PM EST for the complimentary webinar “How to Win Great Agent Relationships in 2019.” With the market rapidly changing, and competition growing, knowing how to win business on the front line with agents is critical to your success. Join Ron Vaimberg, President and Head Coach of nmpU, to learn the exact strategies necessary to win great agent relationships for the upcoming year. You will learn how to determine who are the right agents to go after, what it takes to get the attention of the right agents, how to deliver a powerful presentation when you meet with the agent, and strategies for keeping momentum going after the meeting. Click here to register for this free webinar.

51% of homebuyers and 75% of renters find their homes to buy or rent online, respectively. Rather than seeking advice from an industry professional, consumers are conducting their own searches online and educating themselves on the market. So how do you get to them first, and gain their trust to offer a one-stop shop for improving their homebuying experience? Join our webinar, Where Will Lending & Banking Customers Come From in 2019? on Dec. 19 at 1 p.m. CT, brought to you by HousingWire and Total Expert, and get a jumpstart on the year ahead. Total Expert Founder & CEO Joe Welu and Founder of the Basis Point Julian Hebron will disclose consumer stats, business models and their secrets for winning in this era. Interested but unable to attend? Sign up anyways and we will send you the recording.

Want to find out what Ginger Bell is doing with her list of over 1,400 vendors? Register for her webinar on Wednesday, December 12th at 1PM PT.

Black, Mann and Graham’s newest training video “Welcome to Texas” contains information that a new lender entering the Texas market should know including misnomers seasoned lenders may be confused about.

The U.S. Banks & Data Privacy upcoming webinar on December 17th will include speaker Louise Thorpe, the Chief Privacy Officer for American Express who will provide perspectives on how a large global company like American Express views consumer data and privacy, and the stance the company has taken over the years. Attorney, Tanya Forsheit, widely considered one of the country’s top privacy and data security lawyers; will be covering the specifics that financial services companies need to be prepared for when it comes to recent and pending privacy and data protection laws and regulations.

On December 20th, US Bank is offering a training opportunity in concert with Freddie Mac that will help you realize the possibilities with the HomeOne Mortgage, the new low-down payment option for first time homebuyers, which offers more flexibility while providing a 97% LTV with no income or geographic restrictions.

Capital markets

The U.S. 10-year began the week yielding 2.86% after free falling last week as Brexit-related headlines dominated markets. UK Prime Minister May announced she will be delaying the UK-EU Brexit plan vote in Parliament. The news was not a surprise but did stir angst about the future of leadership in the UK and the possibility of a “no deal” Brexit that weighed heavily on the British pound, which fell 1.5% against the dollar. No date has been set for a new vote. On the Chinese trade front, U.S. Trade Rep. Robert Lighthizer stated that he sees this 90-day window with China as a hard deadline to strike a deal or tariff rate to be raised. China had some poor news of its own, as November exports and imports were both weaker than expected. And French President Macron announced a minimum wage increase and the cancellation of a tax increase for low-income pensioners in response to violent protests over living conditions.

Today’s economic calendar kicked off with NFIB small business optimism, down for the 3rd straight month. Producer Prices for November were +.1%, ex-food & energy/core +.3%, more inflationary than expected. After these numbers we find the 10-year yielding 2.87% and Agency MBS prices worse a few ticks versus last night.

Since some of the radio stations decided to pull “Baby it’s Cold Outside” from its playlist because someone was offended, I feel that these other holiday songs must also be removed as they are offensive as well.

1. I Saw Mommy Kissing Santa Claus: subjecting minors to softcore porn.

2. The Christmas Song: Open fire? Pollution. Folks dressed up like Eskimos? Cultural appropriation.

3. Holly Jolly Christmas: Kiss her once for me? Unwanted advances.

4. White Christmas? Racist.

5. Santa Claus is Coming to Town: Sees you when you’re sleeping? Knows when you’re awake? Peeping Tom stalker.

6. Most Wonderful Time of the Year: Everyone telling you be of good cheer? Forced to hide depression.

7. Rudolph the Red-Nosed Reindeer: Bullying.

8. It’s Beginning to Look a Lot Like Christmas: Forced gender-specific gifts: dolls for Janice and Jen and boots and pistols (GUNS!) for Barney and Ben.

9. Santa Baby: Gold digger, blackmail.

10. Frosty the Snowman: Sexist; not a snow woman.

11. Do You Hear What I Hear: blatant disregard for the hearing impaired.

12. Have Yourself a Merry Little Christmas: Make the yuletide GAY? Wow, just wow.

13. Jingle Bell Rock: Giddy up jingle horse, pick up your feet: animal abuse.

14. Mistletoe and Holly: Overeating, folks stealing a kiss or two? How did this song ever see the light of day?

15. Winter Wonderland: Parson Brown demanding they get married…forced partnership.

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, “Servicing: Don’t Underestimate Liquidity.” 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 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Dec. 7: LO jobs; broker, non-del, warehouse products; vendor/service provider directory; yield curve primer

The year has sped along, and here we are at Pearl Harbor Day already. Although mortgage rates have lagged, what has pushed Treasury rates down? Released earlier this week, the Federal Reserve’s latest report on economic conditions, known as the Beige Book, says most of its 12 regions achieved satisfactory growth in November but also says there is “increased uncertainty” among businesses over the influence of U.S. tariff policy. The report highlights rising costs for manufacturers and problems for farmers due to counter-tariffs imposed by China and others. (The Trump Administration’s trade fight with China has been particularly hard in Nebraska, with its Farm Bureau estimating that retaliatory tariffs let to a loss of more than $1 billion so far in 2018, which is about 11 to 16 percent of the entire value of Nebraskan agricultural goods. Factor in labor income losses and the total economic hit to the state is $859 million to $1.2 billion.)

Jobs

GSF Mortgage Corporation is pleased to promote our Direct Originator Partnership Program for originators who are interested in a low expense and best execution opportunity in today’s market, while playing a critical role in delivering an exceptional customer experience during every step of the home lending journey. The program has no branch or lender fees, translating to better pricing and compensation for the originator. With access to management, technology, and a comprehensive set of products, we give you the tools to succeed and help you build solid and long-lasting relationships and engage all customers in a positive manner, ensuring the customer’s best interests are your number one priority. Originators participating in this partnership have enjoyed a 28-percent production increase – all while operating in a challenging market.” Please reach out to VP of Retail Lending, Frank Papaleo.

Mortgage Possible is expanding across the United States and has named Ty Kerns Senior Managing Director of National Production. With 25 years of industry experience, Senior Managing Director of National Production, Ty Kern, is leading the expansion of Mortgage Possible across the US. Kern has been in business leadership positions for 15 years and his experience makes him an excellent fit for the role of Senior Managing Director. Kern came to Mortgage Possible after a role as Senior Managing Director of National Retail Production elsewhere. He leads the channel to significant growth and profitability gains by overseeing the implementation of significant technology improvements and a reduction in cost structure. “It’s an honor to be a part of the expansion process with Mortgage Possible,” said Kern. “Our leadership team has what it takes to make a positive impact in the mortgage industry across the country.”

Visit https://mortgagepossible.com/ for more information.

 

Lender products and services

Get on point with BluePointMtg into 2019! “@BluePointMtg we are pleased to present several new products to our Broker Partners and offer Rate Improvement specials as we close out 2018! Free appraisals for any loan over 300k till the end of the year as well. (Except reverse loans.) A .25 rate improvement incentive on non-Agency loans >500,000, and a .375 rate improvement on Non-Agency loans over $2 million. (Applies to Leverage Product and Pivot Product only!) BluePointMtg is positioning itself to be a go to lender for Government loan options, conventional Loans, and Non-Agency loan options. Newly released is a VOE loan. New pricing on FHA 700+ credit scores as well this month! Highlights this month is a MIC DROP campaign where BluePointMtg has highlighted all files Submission to CTC with our Broker Partners of 15 days or sooner! Sign up today to expand your product mix, gain incentives monthly and get your own MIC DROP on your next loan! Contact your AE or marketing@bluepointmtg.com for details.”

Guaranty Bank & Trust (GBT) “is proud to announce the promotion of Nikki Maimone to Vice President of Warehouse Lending. In addition, we are pleased to announce Nicole Haba joining our team as Operations Manager of Warehouse Lending. Collectively, Nikki and Nicole have over 40 years’ experience in mortgage and warehouse lending. GBT is working hard to earn your business and become a leading provider of mortgage warehouse services. GBT is looking to add both Non-Delegated and Delegated Correspondent Lenders. GBT provides exemplary client support and service and we offer a fast and easy submission process with a variety of products. Our goal is to help you reach your potential as your preferred warehouse lender. We would love to share our competitive rates and personally tailor our program to fit your needs.” For more information, contact Veronica Soto (214.710.2340).

 

Carrington Mortgage Services launches its non-delegated Correspondent Lending Division. Carrington Mortgage Services, LLC (CMS), one of the nation’s largest privately held non-bank lenders with over $60 billion in servicing, announced the launch of its Non-Delegated Correspondent Lending Division to complement CMS’s full portfolio of loan origination channels which include Wholesale and Retail. “We have diligently planned and built the Correspondent Division and we’re now ready to make our presence known throughout the industry,” said Raymond Brousseau, President of CMS. “We are committed to delivering a high level of transparency and timeliness to the non-delegated correspondent lending process. We understand that it’s all about providing our sellers with the ability for further growth and profitability.” CMS’s wide program offers today’s non-delegated sellers with Fannie Mae and Freddie Mac products, FHA and VA products, and Carrington Advantage Products for underserved borrowers. To qualify, correspondent lenders should have a strong reputation of profitability in the industry.

 

PrimeLending Joint Ventures = Excellent Customer Experience + Increased Profitability for Home Builders.  You already know PrimeLending as a powerhouse mortgage lender providing an excellent home loan experience to customers across the U.S. Its proven joint venture model is no exception, providing home builders with a dependable formula for success, including an easy-to-use, fully-digital mortgage process, a huge range of loan options, an award-winning operations team, and solid backing from Hilltop Holdings Inc. and all its subsidiaries. If you are a home builder considering the next step to increase your profitability and give your customers a better mortgage experience, watch our videos and get more information at www.primelendingventures.com or contact Mike Matthews.

 

This is an offer you won’t want to miss! TMS partnered with Mortgage Educators to offer brokers extremely discounted rates on industry-required continuing education and pre-licensing courses. And the part that shocked me the most—they’re exclusively offering it at 73% off! The industry-required CE courses include the 2018 Online 8 Hour SAFE Comprehensive CE and NMLS 20 Hour SAFE Pre-license Bundle. To get started, go here.

PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), is looking for mortgage bankers and lenders that offer renovation products and programs. PlainsCapital Bank National Warehouse Lending currently funds multiple renovation programs and products with little to no additional requirements. “Whether it is a FNMA HomeStyle, FHA 203K Full, Limited or even an USDA Rural Housing renovation loan, PlainsCapital Bank National Warehouse Lending wants to be your preferred warehouse provider for these programs and products. Please ask us about our competitive rates, utilization and deposit incentives and other ways that we can reduce costs and time to exceed your loan funding needs in 2018.” If you are interested in learning more, please contact Deric Barnett, EVP National Warehouse Lending.

Vendor updates

Floify and Equifax have joined forces to expand the features and functionality of the industry’s leading mortgage point-of-sale system. This groundbreaking partnership integrates the power of the Equifax Trended Credit*Hi-Lite™ and The Work Number® with Floify’s flexible and feature-packed mortgage automation solution. Now, LOs who use both solutions to originate loans can instantly obtain and sync tri-merge credit reports via Trended Credit*Hi-Lite™ and VOE and/or VOI via a secure integration with The Work Number® directly with an application or loan file in Floify. Additionally, with GSE validation programs, such as Day 1 Certainty® from Fannie Mae, LOs can help mitigate risk and limit underwriting cycle times by reducing lenders’ reliance on applicant-provided W-2s, pay stubs and other income-related documentation. To experience the power of Floify’s Trended Credit*Hi-Lite™ and The Work Number® integrations, request a live demo.

Chase Gilbert, CEO and co-founder of Built Technologies, was recognized by Goldman Sachs and HousingWire for exceptional leadership. Gilbert was named one of Goldman Sach’s 100 Most Intriguing Entrepreneurs at the 2018 Builders + Innovators Summit. “The purpose of Builders + Innovators is to support emerging leaders in their quests to innovate faster,” said David M. Solomon, CEO, Goldman Sachs. Following the summit, Gilbert was honored at the 2018 HousingWire Vanguard Awards alongside 52 leaders, carefully selected by the publication’s editorial board for their accomplishments over the past year. “As the Vanguards program continues to grow and become more successful, the entry point gets tighter. These winners are truly the best Vanguards in the mortgage finance industry,” said HousingWire Editor-in-Chief Jacob Gaffney. “I am honored and humbled to be recognized alongside such esteemed groups of industry leaders,” said Gilbert. “These awards are a reflection of our team’s commitment to changing the way the world gets built.”

The Mortgage List, LLC., the most inclusive directory of all facets of the mortgage industry, announced at the National Association of Mortgage Professionals (NAMB) Annual Conference, its official launch of their online directory and community. The Mortgage List is literally, a “Who’s Who” featuring thousands of listings and resources including industry associations, organizations, vendors, service providers and publications. The directory alone is the “go to” guide for mortgage professionals which includes attorneys, accountants, NMLS course providers, wholesalers, compliance companies, trainers, marketing companies and much more. Founded by long time industry professional, Ginger Bell, The Mortgage List’s goal is to become the hub for the mortgage industry. You can register for its webinar on Wednesday, December 12th to find out more.

Flood & disaster updates

Will Congress ever “man up?” With Congress moving to keep the government funded through December 21, the National Flood Insurance Program is again extended, this time for two whole weeks. Realtors point out that, “This is the 43rd extension of the NFIP since 1998, and the 41st short-term deal made to avoid a lapse in the program over the past 20 years. NAR is relieved to know that the NFIP was again extended before a lapse could occur. Flooding is a constant, unavoidable threat to Americans living in both coastal and inland communities across the country, however. As such, NAR urges the House and Senate to continue working towards responsible, long-term reauthorization that includes meaningful reforms, as the current process of continuous short-term extensions is simply not sustainable.”

Fannie Mae announced the Fannie Mae’s Disaster Response Network™: a comprehensive case-management service for disaster-affected homeowners with Fannie Mae-backed mortgage loans. Homeowners may access this program, a supplement to the post-disaster mortgage relief options currently offered, by visiting Know Your Options or calling 1-800-2FANNIE.

Regarding the California fires, and disaster areas in general, most lenders have a policy that says all impacted areas will require an internal escalation review to determine current containment percentage, evacuation status, and property distance from current burn zone prior to drawing loan documents. All impacted files have been conditioned appropriately (to include but not limited to photos of property and a disaster affidavit). No one wants to lend money on a house that isn’t there.

Mountain West Financial (MWF) is committed to helping its customers during the recovery process in areas impacted by the massive California fires. Re-inspection requirements for properties in FEMA-declared disaster areas are as follows: Conventional, VA and USDA loans require an exterior-only disaster inspection report to certify that the property was unaffected by the disaster. Conventional loans with property inspection waivers, VA IRRRLs and USDA Streamline loans will require re-inspections if the property is in a FEMA-declared disaster area. FHA requires an interior and exterior disaster inspection report and photos. FHA Streamlines do not require re-inspection. VA requires both the lender and the veteran to certify the property is not damaged.

The Camp Fire (Butte County) and Woolsey Fire (Los Angeles and Ventura Counties) have been 100% contained. The following loanDepot Wholesale processes are in place for properties in impacted areas: Conventional Loan fundings have resumed for Butte, Los Angeles, and Ventura Counties. All files in impacted zip codes have been conditioned appropriately based on requirements for properties in FEMA declared areas. Regarding FHA Loans, Re-inspections are required, however cannot be ordered until FEMA issues a Disaster End Date. Funding exception requests can be submitted through your Account Manager.

Capital markets

The MIAC Capital Markets Group is pleased to announce its offering of $365mm of new origination whole loans. The collateral consists of 100% ARM Loans originated by a Bank as a portfolio product with an alt-doc component. The portfolio is concentrated in MI & FL with approximately 640 loans potentially qualifying for CRA credit. Loans >80 LTV are covered by PMI; this product has experienced near zero defaults over the history of the program. Parties should contact their MIAC sales representative at 212-233-1250 or Steve Harris for additional information.

There is chatter out there about the yield curve inversion – right up there with the coming of the Four Horseman, the Apocalypse, the Detroit Lions winning the Super Bowl, that kind of thing. There are different portions of the U.S. government securities yield curve (that graphs yields on the Y axis and maturity – overnight Fed Funds all the way to 30-year bonds) that one can compare. When long-term yields are lower than shorter-term yields, it typically reflects expectations of slowing growth, or a possible recession.

But the inversion between two-year and five-year Treasury yields could be temporary as it was in 1998. Everyone knows that, due to Quantitative Easing, the Fed continues to purchase long-term maturity securities, raising prices and keeping longer-term rates low. And LOs should know that inverted curves don’t cause recessions. They simply reflect a market assumption that growth will slow based on current economic information.

Yesterday was a volatile day for the Treasury market, which rallied strongly this morning when the S&P 500 was down as much as 2.9%, spurred by trade concerns which stemmed from the controversial arrest of Huawei Technologies’ CFO in Canada on allegations the company violated U.S trade sanctions on Iran. The arrest and reported extradition to the U.S. would get in the way of the U.S. and China striking a trade deal, coupled with potential retaliatory action against U.S. companies doing business in/with China. After hitting a low of 2.82% intraday, the U.S. 10-year closed the day at 2.87%.

The flight to safety in the Treasury market saw support from the drop in oil prices and remarks from Dallas Fed President Kaplan and Atlanta Fed President Bostic, who suggested the target for the fed funds rate is close to neutral. Oil prices dropped on reports Saudi Arabia oil minister floated a proposal to cut daily production by 1 million barrels per day, less than the market was thinking, though no formal agreement has been reached yet. Finally of note, JPMorgan Chase CEO Jamie Dimon told CNBC in an interview that if there is a bubble anywhere, it is in U.S. government bonds.

 

Today began with the November employment data: Nonfarm Payrolls +155k (less than forecast, and with a back-month revision lower), the Unemployment Rate steady at 3.7%, and Hourly Earnings +.2%. At 10AM ET the University of Michigan Sentiment Index is seen falling in both current conditions and expectations, and October wholesale inventories and sales are due. Fed Governor Brainard speaks on financial stability before a luncheon just after noon. And October consumer credit will be released and is expected to rebound from September. After the employment data we have the 10-year yielding 2.87% and Agency MBS prices better a smidge versus last night’s close.

I’ve heard rumors of loan officers being frightened to tell a borrower that they qualify for a non-QM loan and not a QM loan. There are other things that might frighten someone. I’m still tense after watching this short video.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Servicing: Don’t Underestimate Liquidity.” 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 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

 

Dec. 6: LO, sales mgt. jobs, recruiting service; profitability products; New Penn re-branded; what is pushing rates lower

I still receive questions about HMDA. It’s good to know about the 2018 edition of A Guide to HMDA Reporting: Getting it Right! (the Guide). Developed by the Federal Financial Institutions Examination Council, it provides a summary of certain key requirements of the Home Mortgage Disclosure Act (HMDA). Features include “Where to Look” hints, and the complete Consumer Financial Protection Bureau’s (CFPB) Small Entity Compliance Guide in Appendix B. Copies of the previously published resources, such as the CFPB’s Reportable HMDA Data: A Regulatory and Reporting Overview Reference Chart are also included as sections of The Guide.

Professions & promotions

Newfi Lending is expanding its Non-QM Correspondent channel and seeking an experienced sales leader. Newfi is uniquely positioned in the market with proprietary products, make sense underwriting approach and live scenario desk. Ideal candidates not only have established relationships, but the ambition to lead growing sales team. Newfi Lending is a Warburg Pincus portfolio company based the San Francisco Bay Area. Please contact Steve Abreu for information on the position.

A results-oriented mortgage banking professional with extensive capital markets, secondary marketing, and product management experience is searching for a new position. The Candidate is highly skilled in investor/vendor relations and operational management, while maintaining a strong risks & controls environment and is adept at marketing awareness/demand strategies, product development, and building strategic relationships. They’ve also managed mortgage volume planning and reporting, as well as, associated PTI, revenue/expenses. Directed all aspects of trading & hedging, best ex, portfolio retention, mortgage rate and fee pricing, including margin management/optimization. Guided the Fannie Mae, Freddie Mac, Ginnie Mae, FHA/VA, and private investor relationships, and led or sponsored numerous complex, multi-million-dollar real estate initiatives including trading & hedging system conversions, mortgage servicing transfers, portfolio sales, loan origination system conversions, and M&A integrations. Interested company should send me a note of interest me for forwarding.

One of the fastest-growing wholesale lenders, Lakeview Wholesale, has added two new Account Executives to their seasoned team: Eva Sharma of San Diego and Tiffanie Lande of Orlando. Lakeview’s commitment to being a premier wholesale lender is evident through the continued growth of their sales team, and their launch of the new TPO Connect broker portal, designed to radically improve user experience. By focusing on a faster, easier, and more efficient process, Lakeview provides clients with a user friendly interface to utilize innovative products such as the aggressively priced No MI Platinum. Interested in joining this talented team? Contact John Pater and learn about open positions with large territories

in Florida, Texas, Georgia, North Carolina and South Carolina.

Verity Search a well-known search firm in the industry, helps lenders hire the best talent. President Jim Boghos believes times are changing and search firms must also now evolve. “Lenders fuel our business and as margin compression has affected them, recruiting firms must also now adapt alongside them. Announcing POP, (Partner Origination Platform) by Verity Search. “We are proud to offer this advanced concept in mortgage production building. Recruiter and Lender objectives are now finally aligned” said Boghos. Verity’s POP Program claims to build production teams without charging the exorbitant up-front placement fees. The shared risk model has already seen tremendous early success. “POP ensures the lender investment associated with opening new branches. The failure rate is eliminated while guaranteeing the volume growth.  Verity now becomes your trusted partner” Boghos added.  For more info contact Jim Boghos (407-725-7085).

“Who thinks the decreasing LO Compensation is the solution to market compression? [Crickets chirping.] Shouldn’t there more discussion about trimming the fat from bloated retail shops who employ too many layers of middle management at corporate? There are too many people involved in the loan process and we’re all using outdated tech layered on top of slow LOS. Here’s a solution that shows how Canopy Mortgage is trimming the fat from retail, keeping LO comp intact, and creating unheard of efficiencies with proprietary tech that allowed ONE loan officer to close over 100 loans in one month. Do you believe there’s a better way to do home loans?” Canopy is NOW Hiring a National base of seasoned LOs. Reach out to Josh Neumarker, Director of Business Development, at Canopy Mortgage (888-696-9076).

American Advisors Group (AAG), announced that Joe Stephenson has been named SVP of Operations where he will oversee all facets of operations for AAG’s sales channels, including the retail call center, national field sales division and wholesale division. He will report jointly to Paul Fiore, AAG Chief Retail Sales and Operations Officer and Jesse Allen, AAG EVP of Alternative Distribution.

Lender products & services

Don’t let the changing landscape or current market conditions inflate your loan origination costs. Get “fixed” with Equilibrium Mortgage Solutions. Equilibrium Mortgage Solutions allow small and mid-size mortgage firms to have end-to-end loan fulfillment at a bundled price of $895 per loan without institutional headcount. You can also pick “a la carte” service for those labor intense functions.  Equilibrium provides Opening, Underwriting, Closing, Post Closing and Post Fund Quality Control Audits along with daily Client Status Reports. Equilibrium is a top-notch outsourcing solutions game changer with an outstanding price point.  We are backed by years of experience and expertise. Put Equilibrium in your 2019 Strategic Plan! Contact Paul Campbell (760-774-7704).

Lenders, CUT 80% off your essential LOS/PPE tech spend. The ReadyPrice RETAIL & WHOLESALE enterprise-strength LOS with an embedded multi-investor PPE and proprietary “error trapping” tech is the answer for any sized lender (or brokers wanting to become bankers). The ReadyPrice all-in-one RETAIL AND WHOLESALE platforms are fully configured out of the box, are up to 80% less expensive than heavy, “mature” competitors, come complete with D1C, deep Fannie DU, EarlyCheck, etc., integrations and can be stood-up in a couple of weeks. Or, you can easily and inexpensively customize/configure her to easily fund thousands of loans per month from thousands of MLO’s or brokers, for example. The

ReadyPrice LOS/PPE has funded over 300k units for $70 BILLION and is leading the way forward for today’s mortgage bankers as we utilize essential mortgage tech.  Call them at (408) 357–0931 or email hello@readyprice.com to get a free demo today.

The MBA just released data revealing that independent mortgage banks reported a meager net gain of $480 per loan on average in 3Q2018, down from $580 per loan in the 2Q2018 and $929 a year ago. “3 Steps to Profitable Growth” is a timely read in this challenging environment, providing key focus areas for lending managers to drive profitability in a tough, purchase-heavy market. A must-read for all mortgage managers: Download your free copy here!

What if you could dramatically cut your mortgage quality control turn time and prevent against loan defects? Join two technology innovators, Fiserv and TRK Connection, on December 13 to learn how to leverage document classification, data extraction and data comparisons to improve loan quality and automate QC. Register for “Maximize QC due diligence reviews with OCR and Defect Management Technology” web seminar today.

We’re making a list and checking it twice, and we’ll find out if your subservicer has been naughty or nice. Subsequent QC (MQMR’s servicing-focused sister firm) will begin conducting its annual on-site reviews of all the major subservicers in early 2019. SQC’s subservicer reviews are designed to meet all master servicer requirements, including those in Fannie Mae’s Servicer Self-Assessment checklist. The list was recently updated in September 2018 and specifically calls out a requirement for master servicers to perform an “annual onsite visit.” Unlike other firms that just “check the box,” SQC uses a holistic approach to deliver audits that not only mitigate risk, but also uncover opportunities for subservicers to deliver unmatched customer service – resulting in what we call The SQC Difference. First up on our annual rotation is Dovenmuehle in 1Q 2019. Reach out to info@mqmresearch.comto join and/or see when we’ll be visiting your subservicer.

Re-branding

National mortgage lender New Penn Financial, LLC today announced that the company will be rebranded as NewRez at the beginning of 2019. New Penn was acquired by New Residential Investment Corp. (NYSE: NRZ; “New Residential”) in July. The NewRez name and the decision to rebrand reflect New Penn’s close alignment with its parent company, as well as the combined organization’s commitment to bringing value to its customer relationships and strategic partnerships. “We are very excited to announce the rebrand and for the growth opportunities it signals,” said Kevin Harrigan, President and CEO of New Penn. “NewRez combines the strength and experience of the New Penn and New Residential brands under one umbrella, and we look forward to the benefits we will collectively bring to borrowers through all of our business channels.” More information will be communicated in the coming weeks, including transition timelines and more details of the NewRez brand.

Capital markets

This morning the stock market’s tumble is grabbing the attention, and rates continue to fall. Are world economies really slowing, or is this a knee-jerk reaction to Trump headlines? Morgan Stanley, for one, believes that yield curves will flatten in the US (2s5s and 2s10s), and that the Fed will deliver only two hikes in 2019 (March and June) and cease balance sheet normalization in September. “The year ahead should see the global economic expansion continue, but the rate of expansion moderate to just above trend with a slightly softer outlook for 2020. Our economists expect a pause in the Fed’s policy tightening cycle. The world still faces slower growth, higher inflation and tighter policy. But 2019 should see a turning point in this narrative, specifically in US growth, inflation and policy relative to the rest of the world.”

The last data on the consumer price index showed that inflation is more or less in line with the Fed’s target of 2 percent. Even with the recent drop in oil prices, the energy index rose 2.4 percent in October. Core inflation increased 0.19 percent, and core goods prices saw their largest monthly increase since January. Inflation is expected to trend higher through the rest of the year as tariffs and the labor market push production costs higher. That trend likely means the Fed will continue to gradually increase short term rates. Retail sales remain strong and were up 0.8 percent in October. Holiday sales are expected to increase from 2017 with spending moderating after the New Year. Manufacturing activity increased 0.3 percent in October and September’s figures were revised higher with most major categories showing expansion. The rising dollar and trade issues, however, remain concerns for this sector moving forward.

Real gross domestic product increased at a 3.5 percent annualized rate in the third quarter, according to the advance estimate from the Bureau of Economic Analysis, following a 4.2 percent increase in the second quarter. While market participants were expecting a smaller increase from Q2 to Q3, the headline gain was more than expected. The main driver of this quarter’s increase was consumer spending, the largest component of GDP, growing at a 4.0 percent annualize rate fueled by high consumer confidence and a strong labor market.

Consumer spending has increased on both durable and nondurable goods as well as services. A weak spot in the report was business fixed investment which grew at 0.8 percent after posting two strong quarters earlier this year as spending on structures, equipment and intellectual property slowed. Residential investment was another weak area, declining to a -4.0 percent annualized rate as that market cools. The trade component of GDP brought down the headline number by 1.8 percentage points as net imports increased. Finally, federal government spending increased at a 3.3 percent annualized rate and state and local government spending increased to a 3.2 percent annualized rate. Together, they added 0.6 percentage points to Q3 real GDP.

Recent economic data is pointing towards sustained slowing momentum in the housing market. The National Association of Homebuilders Index fell 8 points to 60 and is down from a recent high of 74 in December 2017. As with other 0 – 100 indices a reading above 50 indicates favorable conditions. The expected buyer traffic index fell from 53 to 45. Additionally, single family housing starts dropped 1.8 percent from September to October and are down 2.6 percent from a year ago, according to the Census Bureau. Single family permits also declined and are running below starts, suggesting that single family housing construction may be subdued in the coming months. Existing home sales managed to rebound from September’s decline and increased 1.4 percent in October, led by a 5.3 percent increase in condo/co-op sales. Consumer sentiment continues remain positive as incomes continue to slowly creep up, however rising mortgage rates continue to put pressure on affordability in some of the hotter housing markets in the country.

As stocks fall, as do rates, the calendar today is even busier than usual, with some of yesterday’s usual scheduled releases being moved back a day. Housing and jobs move the economy, and today & tomorrow are focused on jobs: job cuts from Challenger (53k), ADP employment (+179k, lower than expected), initial jobless claims for the week ending December 1 (-4k to 231k), Q3 (final) Productivity (2.3%) and unit labor costs (+.9%), the October trade deficit ($55.5 billion), Markit Services PMI, ISM nonmanufacturing PMI, and October factory orders before Atlanta Fed President Bostic, NY Fed President Williams, and Fed Chair Powell all take the stage. The day begins with the 10-year yielding 2.89% and agency MBS prices better nearly .125 versus Tuesday’s close.

(Thanks to Kris V.B. for this consulting humor.)

A Twelve Day Engagement

“On the twelfth day of the project, my consultant gave to me:

Twelve PowerPoint Presentations,

Eleven Technology Ratings,

Ten Project Plan Revisions,

Nine Complex Process Models,

Eight Risky Improvement Ideas,

Seven Facilitated Conference Calls,

Six Hours of Committee Meetings,

Fiiiiiiive Change Requests,

Four Redundant Recommendations,

Three Conflicting Diagnosis,

Two Solutions For One Problem,

AND

A Useless Report, In Microsoft Word”

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, “Servicing: Don’t Underestimate Liquidity.” 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 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Dec. 5: LO jobs, promotions; QC & fulfillment products, Alt-Doc webinar; recapitalize the Agencies?

There’s a saying: “You may not remember exactly what someone said, but you’ll remember how they made you feel when they said it.” Are you looking for a good article on what happens when loan officers work to improve the borrower experience? STRATMOR Group worked with Certainty Home Loans on this case study that offers insights into the seven commandments for achieving borrower satisfaction and real-life examples from loan officers who make providing a superior borrower experience a priority. Check out the article, “How Important Are Satisfied Borrowers to Growing Your Business?” at MortgageSAT.com.

Employment

To remain relevant in this industry, it requires passion, tenacity and integrity. Montana-based Mann Mortgage is Tried, Trusted and Proven and is looking for likeminded branch managers and loan officers to join its cooperative-based company. “As we start our 30th year in business, Mann is focused on the next 30 years with exciting recent branch additions in Virginia, Oregon, Montana, Minnesota, and Hawaii, adding to over 40 branches in 13 other states. Mann Mortgage has successfully launched two new game-changing products and services: a MannMade Construction Loans program (1-time closing construction-to-permanent loan), and borrowers, LOs, and processing teams are loving our new SimpleApp technology which allows for originating and closing loans faster and more efficiently! We offer the unique ability to work under our simplified expense management model, retail model and/or our HUB opportunities, and offer compensation plans with options! Finally, meet our Director of Risk Management and you’ll quickly understand why our Branch Managers keep calling him back with new ideas! If you are ready to do something with that entrepreneurial spirit of yours, please reach out to CEO Jason Mann.”

The Movement Mortgage Marketing team continues to push the envelope to support its LOs. The top 10 retail lender is surrounding Loan Officers with the air cover of a corporate social media, technology and branding strategy that promotes its unique position in the market. Movement then delivers a consultative, agency-modeled, full-service marketing team that provides LOs with personal coaching, branding and digital marketing. It’s one of the reasons Gary Vaynerchuck and VaynerMedia invited VP Jake Fehling to speak at his Agent 2021 event in Miami. Watch this hilarious new video explaining Movement’s unique approach. If you’re not being supported with aggressive, innovative and customized marketing support, check out the tools Movement offers here. You can also learn about career options by emailing Matt Hill.

Nations Lending “is excited to welcome these new employees to our family of branch managers:  Brian Klotz (San Marcos, TX), Brian Clark (Greenwood Village, CO), Randy Epley (Charlotte, NC), Greg Franks (Southlake, TX), Adalgisa Aquino (Cranford, NJ), Jennifer Nina (Miramar, FL), Sheila Herring-Nelson (Bay St. Louis, MS). Our new retail platform is focused on growth and personal attention to each customer – with the very latest tech tools available for branch managers and LOs. We believe these next generation of branch leaders will help take our proven success to the next level – from coast to coast. Nations Lending, is an Ohio-based, full-service national lender licensed in 47 states. For more information and opportunity on how to join our growing organization, please visit the company’s website.

For Loan Officers or Branch Managers looking for a change, MortgageRight sets itself apart from other companies by offering lower rates, better pricing and higher compensation. MortgageRight is making a name for itself across the nation by operating with thinner margins than other industry players due to several key strategic factors put into place by ownership in order to help their producers win in a market like this one. Very simply, they can offer lower rates and/or a higher comp and they can back their claims up 100%. But don’t take their word for it. They’ll put any candidate in touch with recent hires and existing LOs to discuss their strengths along with everything else they have to offer. For a pricing engine walk through, contact Mike Russo (866-425-5456) or visit www.branchright.com.

Guardian Mortgage, a division of Sunflower Bank, N.A., continues its nationwide expansion with two new branch locations: College Station, Texas, and Spokane, Washington. The company also announced the hiring of a Branch Leader in Albuquerque, New Mexico. These openings and new hires highlight the focus on growing in established markets, and new markets such as Spokane – Guardian’s first entry into the Pacific Northwest. “Our ability to continue growth through key alliances, adding experienced branches and proven producers in existing and new markets underscores our company’s strength. And we’ll continue to look for new opportunities with high performing teams and individuals.” said Guardian Mortgage president Mischelle Weaver. College Station is helmed by Dell Seiter, the Spokane office is led by Josh Martin. The new Albuquerque office is directed by Mitch Hollinger. Guardian Mortgage is enjoying rapid growth, and they’re always looking for top performers. Please visit its website for more.

Lender products, events, & services

Don’t miss this great opportunity to give back. For each new lender that signs up with TMS before Dec. 31st and becomes approved, TMS will donate $250 to Family Reach —a national non-profit dedicated to alleviating the financial burden of cancer. You can sign up here.

The Great Leads Debate: Why Purchasing Leads Sucks and What Can Be Done About It

Join this strikingly candid webinar where Jason Frazier, The Agent Marketer and long-time opponent of lead shops, will go head-to-head with Heather Bauman, GM of MortgageLead.com, the revolutionary new lead delivery platform for loan officers. They will discuss and debate hot topics surrounding online lead generation in the mortgage and real estate industry, and answer questions from attendees in real time. Click here to register: https://agentlink.io/mortgagelead.

Join National Mortgage Professional Magazine for a Deal Desk webinar focusing on Alternative Documentation products on Thursday, December 6 at 2:00PM EST / 11:00AM PST. Each DealDesk is product focused, quick (30 minutes) and only featuring lenders that can offer originators unique and/or proprietary loan programs. This DealDesk will feature Deephaven Mortgage and their alternative documentation product. This is an opportunity to discover how other successful originators use the features of these products to put more borrowers in loans in addition to being able to ask your own questions. Register to submit your questions here, ask them live, or eavesdrop on what other attendees are asking.

“Simplified mortgage originations with Trelix. Trelix offers an industry-leading suite of fulfillment, quality control and due diligence products and services that can help you manage risk and lower costs in a complex industry. If your goal is to grow quickly, dramatically lower costs, and attract top producing loan officers, the Trelix end-to-end solution is perfect for your business. Lenders who utilize our end-to-end services experience up to 40% reductions in manufacturing costs while helping to significantly improve the borrower experience.” To learn more, connect with Justin Vedder.

Fannie & Freddie don’t stop

Yes, the hearings on FHFA were postponed today. But let’s play some catch up on Agency news. It’s good to see what they’ve been up to in the primary markets over recent weeks to keep things in context, especially as lenders inevitably follow their lead. Hey, you wanna read 11 pages on recapitalizing Freddie and Fannie? Here you go.

In comments to the Federal Housing Finance Agency, which is overseeing the planned merger of government-sponsored enterprises Fannie Mae and Freddie Mac into the uniform mortgage backed security platform next year, SIFMA called for clarification on a number of issues. Christopher Killian, managing director of securitization and credit markets at SIFMA, noted the FHFA has “a supreme amount of power over the GSEs and should lay out how they will handle the UMBS market in writing.”

Fannie’s trading desk reports that, “Whole Loan and Loan Delivery will be updated the weekend of Dec. 8 to include the 2019 loan limits for loans delivered to Fannie Mae on or after Jan. 1, 2019. For loans or pools delivered through ASAP Plus or ASAP Sale, the new loan limits will not be effective until Jan. 1, 2019. The 2018 loan limits apply to any loans or pools funded in an Early Funding transaction prior to Jan. 1, 2019, even if such loans are intended to go into an MBS that will be issued in 2019.”

In recent months Freddie Mac announced organizational changes in its Multifamily business. The promotion of Robert Koontz to SVP, Multifamily Capital Markets and a new organizational structure for its Multifamily Capital Markets department. The changes integrate two functional areas: Multifamily Investments and Advisory and Multifamily Research and Modeling into the Multifamily Capital Markets department under Koontz. In his new role, Koontz will oversee these areas, while continuing his core responsibilities, including pricing, structuring, investor relations and sales, and securitization. Freddie Mac Multifamily is the nation’s multifamily housing finance leader. Historically, nearly 90 percent of the eligible rental homes we fund are affordable to families with low to moderate incomes. Freddie Mac’s Duty to Serve plan aims to expand affordability and address America’s most persistent housing problems.

The following statement was released September 27, 2016 by Freddie Mac and is attributed to Gina Healy, vice president of credit risk transfer of Freddie Mac’s Single-Family Business:

“Freddie Mac continually explores ways to responsibly broaden access to mortgage credit while reducing risk to taxpayers. This is fundamental to our effort to build a better housing finance system. To better manage the counterparty risk underlying the important role that mortgage insurers play in high-LTV lending, the eligibility requirements are designed to cover minimum financial and operational requirements for private mortgage insurers approved to do business with Freddie Mac and selected by lenders.

Capital markets

They’re closed today, but the Treasury market saw a further yield curve flattening Tuesday, with the U.S. 10-year losing 7bps to close at 2.92% amid diminished confidence of a near-term solution to U.S.-Sino trade tensions. President Trump tweeted that Bob Lighthizer will take over from Steve Mnuchin, Larry Kudlow, Wilbur Ross, and Peter Navarro in future tariff negotiations. China is said to be considering a cut to the tariff rate on U.S. auto imports from 40% to the original 15% by the end of the year. President Trump tweeted on Monday that China had agreed to reduce and remove tariffs on imported cars from the U.S.

The 30-year dropped 10bps while shorter dated Treasuries only fell two to three bps, and the 5-year yield (2.79%) fell below both the 2-year (2.80%) and 3-year (2.81%) yields. That inversion with the flattening action triggered the economic slowdown narrative, which diminished investor confidence in the stock market (the S&P closed -3% on the day) and spurred some safe-haven positioning in the Treasury market. New York Fed President Williams said there are signs the economy could be slowing more quickly than thought, though the baseline economic view remains very positive.

 

Despite today’s bond markets being closed in honor of President Bush, several economic events will still take place as scheduled. We have the MBA mortgage applications figures for the week ending November 30. (Mortgage apps were +2% last week with refis contributing 40%. Yes, they’re still out there! For you FHA lenders, FHA biz is about 10% of overall apps.)

On the Fed front, the Fed will still release the latest Beige Book at 2PM ET and Fed Governor Quarles will speak at Stanford University. Tomorrow’s calendar is even busier than usual, with some of today’s usual scheduled releases being moved back a day. Thursday’s calendar includes several employment related releases including job cuts from Challenger, ADP employment, initial jobless claims for the week ending December 1, Q3 (final) Productivity and unit labor costs, the October trade deficit, Markit Services PMI, ISM nonmanufacturing PMI, and October factory orders before Atlanta Fed President Bostic, NY Fed President Williams, and Fed Chair Powell all take the stage.

(Warning: rated PG for being a bad pun.)

There is a factory in Northern Minnesota which makes the Tickle Me Elmo toys. The toy laughs when you tickle it under the arms.

Well, Lena decides to give up the real estate biz and is hired at The Tickle Me Elmo factory and she reports for her first day promptly at 8:00 am.

The next day at 8:45 am there is a knock at the personnel manager’s door. The foreman throws open the door and begins to rant about the new employee.

He complains that she is incredibly slow and the whole line is backing up, putting the entire production line behind schedule.

The personnel manager decides he should see this for himself, so the 2 men march down to the factory floor. When they get there the line is so backed up that there are Tickle Me Elmo’s all over the factory floor and they’re really beginning to pile up.

At the end of the line stands Lena surrounded by mountains of Tickle Me Elmo’s. She has a roll of plush Red fabric and a huge bag of small marbles.

The two men watch in amazement as she cuts a little piece of fabric, wraps it around two marbles and begins to carefully sew the little package between Elmo’s legs.

The personnel manager bursts into laughter. After some hysterics, he pulls himself together and approaches Lena.

“I’m sorry,” he says to her, barely able to keep a straight face, “But I think you misunderstood the instructions I gave you yesterday.”

“Your job is to give Elmo two test tickles.”

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, “Servicing: Don’t Underestimate Liquidity.” 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 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

 

Dec. 4: LO & AE jobs; LO products; December events & training; servicing sale with CRA loans

Thinking about locking a loan tomorrow during the National Day of Mourning for George Bush? With the bond markets closed, plenty of mandatory execution desks, like Wells Fargo’s, will be closed. Check with the specific investor regarding best effort, bulk, AOT, and other commitment options tomorrow. Even though the market will be closed, Federal Reserve banks will be open. Plenty of lender’s lock desks will be issuing/posting rates and accepting locks. Many companies will be funding loans on Wednesday, December 5. And are independent mortgage bankers making any money funding these loans? Yes, a net gain but only of $480 on each loan in the third quarter, down from $580 per loan in the second quarter and $929 a year ago, per the Mortgage Bankers Association.

Vocations & promotions

Fidelity Bank Mortgage is headquartered in Atlanta, Georgia with Retail Mortgage production offices throughout the Mid-Atlantic and Southeast. Since 2008, the Mortgage division has grown to over 40 offices and over 600 employees. Fidelity Bank Mortgage is a Fannie Mae, Freddie Mac and Ginnie Mae seller/servicer also offering portfolio products such as Portfolio Doctor Loans for eligible doctors, Construction-to-Permanent Loans, Non-QM Loans, and more. “The majority of our operational support is in the local markets, providing for the best possible customer service. Fidelity Bank Mortgage has one of the highest production averages per Loan Officer according to MBA/STRATMOR Peer Group Surveys and boasts well above average Performance and Loan Officer Loyalty. We are expanding into new markets and interested in Top Sales and Leadership Talent.” Click here to contact David Rapson, Senior Vice President, Mortgage Production Manager, and view Fidelity’s eBook to learn more about the team.

Spiegel Accountancy Corp. (SAC) announced the promotions of Henry Chavez, CPA and Beeta Lecha, CPA, to Principal. The San Francisco Bay Area based CPA firm was established by Jeffrey B. Spiegel, CPA 27 years ago, and has since grown to be a powerhouse firm in the areas of lending and real estate. As department leads for their assurance and tax divisions, Chavez and Lecha bring extensive knowledge and technical expertise to their mortgage banking and private equity fund clients. Their promotions ensure continued customer service in their ever-expanding practice. Spiegel’s philosophy is to bring strategic, innovative solutions in the areas of assurance, accounting, tax compliance and tax planning to their mortgage banking clients.

“There is no other company that I can imagine working with” states Gregg Rudenberg, Producing Branch Manager and 9-year veteran of iServe Residential Lending.  “I’ve heard the recruiting pitch and false promises that are prevalent in the industry and always preferred stability and leadership that I can trust so that I can continue to produce. iServe provides me access to the best products, service and gives me direct access to decision makers in the company. Best of all, I have a personal professional marketing associate assigned directly to me for ads, flyers, CRM, social media…like my very own marketing company at my fingertips. My deals close on time, and my Realtor base is happy, so why would I ever consider changing?”  A powerful statement from a lender who is a good friend of this commentary. Reach out and see exactly what iServe has to offer. Management has immediate openings for originators in the Reno, San Diego, Castro Valley and Murfreesboro Loan Centers. Contact Allen Friedman in the West (415-298-2500) or Dennis Phillips in the East (615-497-6607).

“With all the talk of margin compression, everyone seems to be pointing at LO comp. But why isn’t there more discussion about trimming the fat from bloated retail shops who employ too many layers of middle management at corporate, have too many people involved in the loan process, and have outdated tech layered on top of slow LOS. Check out this 20 second video to see how Canopy Mortgage is trimming the fat from retail, keeping LO comp intact, and creating unheard of efficiencies with proprietary tech that allowed one loan officer to close 128 loans in one month. Do you believe there is a better way and need a fresh start? We’re growing rapidly; have an exploratory chat with Josh Neumarker (1-888-696-9076).”

“Submit non-QM loans in December, fund in December. ClearEdge Lending is service driven and sets itself apart by focusing on simplicity and speed at point-of-sale.  Issuing LEs/CDs, full underwrites, loan scenario requests, or bank statement reviews completed same day or next day. Submission to close as fast as 11 days. Non-QM products are critical in today’s lending environment and at ClearEdge we are a leader in the space offering a broad menu of programs for mortgage brokers. We do not offer retail lending and are the end-investor which allows us to make critical credit decisions – – same day. Those interested in a growth-oriented career with ClearEdge Lending should email Matt Shaw for inside sales (Aliso Viejo, CA) and outside sales (CA & AZ) and Kelly Blackburn for account management, underwriting, disclosure specialist, closer/funder positions. Accepting new brokers, come join the ClearEdge Lending team.”

Caliber Home Loans, Inc. applauds the FHFA’s announcement to raise the maximum loan limits for 2019 by $31,250. Prospective homebuyers now have more purchasing power with conforming loan limits of $484,350 and higher cost areas up to $726,525. Caliber Home Loans is one of the nation’s premier purchase lenders – and as these new limits expand homebuyers’ options – now is a great time to help more families realize the dream of homeownership. Last month Caliber was ranked 3rd by IMF for 2018 non-bank lender volume. As the industry continues to experience changes, Caliber is committed to growing its nationally distributed sales force. If you’re interested in joining one of the nation’s top mortgage companies, visit Caliber or contact Jeremy DeRosa today.

Wanna work for the Federal Home Loan Bank of Chicago and analyze risk? Here’s your chance!

Lender books, products, and services

Don’t just hope 2019’s production/profitability are an improvement over 2018’s. Take charge, drive results, to prosper in any economy. Get the book Conquering Shifts into the hands of all of your originators now, as part of your 2019 business plan. Many agree. “This book is a treasure trove of great and proven ideas that will assist seasoned salespeople in growing and improving their skill set.” Mike Hardwick, Churchill Mortgage. “Conquering Shifts is truly unique in that instead of simply teaching success principles or techniques, the reader sees exactly how they were implemented.” Marty Preston, Benchmark Mortgage. “If I read this book when I first began originating purchase loans in 2011, I can honestly say that I would be leaps and bounds ahead of where I am today.” Ryan Grant, Fairway Independent Mortgage. Authors Cindy Douglas and Kathleen Heck are offering a 15% discount for books purchased through December 15th.

I continue to be bullish on local and regional lenders to gain market share from large lenders. Smaller and mid-size organizations can use their size and nimbleness to get systems launched quickly and efficiently, mostly in part due to tech companies providing customizable digital mortgage solutions with low-effort deployment. Maxwell is a great example. Maxwell is the leading digital mortgage point-of-sale solution for small-to mid-size lenders across the nation. They’re scaling quickly, facilitating over $1.7B in origination volume per month. It’s incredible to see how a user-focused experience can take the industry by storm! As lenders, you should expect digital mortgage platforms to be deployed quickly, with minimal effort. The team at Maxwell has told me they are closing mortgages 45% faster than the industry average and reducing underwriting turns by 25%, substantially boosting production for their clients. Learn more about it here.

Did you know 90% of a customer’s lifetime value comes after the first transaction? How are you maintaining a human connection in the digital era – and doing so at scale? The customer journey cannot fall flat at any stage in order to meet the high benchmark of customer expectations. You can focus on the transaction and gain a customer for a day or you can focus on the relationship and gain a customer for life. Successful loan officers must build personal, human connections to add value for borrowers at every stage of the customer journey. It takes a customer-first approach if you want to earn customers for life. Hear from Total Expert Founder & CEO, Joe Welu, on how today’s technology empowers producers to drive lifelong revenue with relevant messaging across the customer journey.

Professional Development has been proven time and time again as a vital step for achieving business growth. There are infinite possibilities to realizing deep and everlasting success and happiness when we invest in ourselves personally as well as professionally. XINNIX, The Mortgage Academy, is committed to helping you thrive in every aspect of your life. As you focus on developing plans for your business in 2019, XINNIX is offering a great year-end opportunity to enrich your personal development as well with free registration to their December 12th webinar, Infinite Possibilities presented by XINNIX CEO Casey Cunningham. In this empowering session, you will learn how to plan and prioritize your personal and professional goals, implement a formula for success, and write and effective life mission statement that guides your decisions and priorities. CLICK HERE to register today for Infinite Possibilities on Wednesday, December 12 at 10 AM ET!

Trainings and Events in December

Tune in this Friday for a live video stream of Todd Pierson (The Mortgage Firm), Mike Donoghue (Premium Mortgage), Leo Dunn (Bay Capital), Phil Rasori (MCT), and myself as we discuss strategies to make the most of tight margins and what to expect in 2019. If you haven’t heard of the mortgage industry’s leading afternoon TV talk show, I suppose I can’t blame you. Now is your chance to join us for “Late Lunch with Rob Chrisman”, live from MCT Exchange in sunny San Diego, California on December 7th at 12PM Pacific. On the show we’ll hear about the causes behind margin compression from MCT’s COO and Head Trader, Phil Rasori, the tactics employed by a diverse group of lender panelists to protect their profit margins, and the outlook for 2019. Don’t miss out, register today to view the live stream of “Late Lunch with Rob Chrisman” this Friday at 12pm Pacific.”

HaMMR author Ralph DeFranco, Ph.D. economist and recognized industry expert, is now blogging his analysis of housing data and house price risk as fresh updates come in. Arch MI’s December webinars are available for registration. Get prepped on a wide range of topics, including loan processing, appraisals, analyzing tax returns and more.

The Plaza Home Mortgage December Webinar Calendar has been published. Remember, if you can’t make it to a webinar, register anyway and Plaza will email you the recording.

Click here to access the Franklin American Mortgage Wholesale December Customer Monthly Training Calendar.

The FAMP Central Florida December 5th Luncheon is tomorrow! It will feature a Lender Panel covering Construction Perm, Financing Real Estate Investment Projects, 203k and HomeStyle Lending.

On Monday, December 10th, Buckley Sandler attorneys are hosting a webinar to discuss developments in False Claims Act (FCA) litigation relevant to the financial services industry.

South Los Angeles County Chapter of CAMP is hosting John Reyes from Social Networx, Inc. Wednesday, Dec. 12th at the Grand in Long Beach. Learn about content that engages your audience, promoting and broadcasting your videos to the masses and helping to grow your business in 2019.

Capital markets

The MIAC Capital Markets Group is pleased to announce its offering of $365mm of new origination whole loans. The collateral consists of 100% ARM Loans originated by a Bank as a portfolio product with an alt-doc component. The portfolio is concentrated in MI & FL with approximately 640 loans potentially qualifying for CRA credit. Loans >80 LTV are covered by PMI; this product has experienced near zero defaults over the history of the program. Parties should contact their MIAC sales representative at 212-233-1250 or Steve Harris for additional information on this servicing package.

There’s a lot of chatter about the yield curve inverting, possibly leading to a recession. But if the Fed stops purchasing securities, those longer-term rates could easily move higher – is that what we want? The U.S. 10-year closed Monday yielding 2.99%, falling below the 3% threshold for the first time in nearly three months as optimism surrounding news that President Trump and President Xi agreed to suspend further tariff actions for 90 days to allow more time to negotiate a possible settlement on some major trade issues dominated headlines throughout the day. U.S. Trade Representative Lighthizer will be leading the negotiations for the U.S., with the 90-day clock starting on January 1. President Trump tweeted that China has agreed to reduce and remove tariffs on imported cars from the U.S. Elsewhere internationally, Qatar said it is planning to withdraw from OPEC. And Canadian province Alberta says it will cut output by 325,000 barrels per day.

Today’s economic calendar has Redbook same-store sales for the week ending December 1, the ISM-New York Index and Business Conditions for November, and NY Fed President Williams speaking. Don’t forget the bond market is closed manana. As far as the GSEs are concerned, all issuer investor reporting, pooling and issuance activity, and capital markets data disclosure activity will remain on the normal schedule. Today begins with the 10-year yielding 2.96% and Agency MBS prices unchanged.

A child psychologist had twin boys—one was an optimist; the other, a pessimist. Just to see what would happen, on Christmas Day he loaded the pessimist’s room with toys and games. In the optimist’s room, he dumped a pile of horse droppings.

That night, the father found the pessimist surrounded by his gifts, crying.

“What’s wrong?” the father asked.

“I have a ton of game manuals to read … I need batteries … and my toys will all eventually get broken!” sobbed the pessimist.

Passing the optimist’s room, the father found him dancing for joy around the pile of droppings. “Why are you so happy?” he asked.

The optimist shouted, “There’s got to be a pony in here somewhere!”

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, “Servicing: Don’t Underestimate Liquidity.” 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 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Dec. 3: LO & sales jobs, layoffs & promotions; sales, education products; bond market watching jobs & China

I admit that I’ve become jaded over the years. Another potential government shutdown comes and goes. As always, our industry, and more importantly those with insurance, must deal with the potential uncertainty of the flood insurance program (NFIP) being caught up in the budget negotiating. So late last week we received, not a one-year extension, not a 6-month extension, not a one-month extension… a 7-day extension? Really? And this helps homeowners how? (A while back I asked someone in Congress about it, and they replied, “It’s complicated.”) To end on a more interesting note, I remember, back in high school days, a hypnotist coming to school and hypnotizing a couple students to act like there was a flood in the locker room or they were newly hatched chickens. What is also hypnotizing (for folks who like numbers) is watching this population graph of the states since 1900. (Thanks to Jeremy P. for sending this.)

Jobs & layoffs

New Penn Financial is looking for aggressive, knowledgeable and hard-working loan officers to fill key positions in its industry-leading Joint Venture channel. Partnered with some of the best real estate companies and builders in the nation, New Penn has openings within the following markets: Columbus and Cleveland, OH; Charleston, SC; Southeast, Southwest, and Central FL; Indianapolis, IN; Pasadena, CA; and Atlanta, GA. “New Penn is uniquely positioned to provide LOs with a captive audience,” said Corey Caster, Senior VP JV Retail. “We are very fortunate to have strong real estate and builder partnerships throughout the nation.” To learn more about how to augment your business with an in-house opportunity, and additional opportunities available for LOs and producing managers throughout the country, contact Vincent Daino, VP of Recruiting and Business Development.

Congratulations to Al Velasco, PrimeLending EVP and Western Division Manager, on being named one of HousingWire’s 2018 Vanguard Award winners! This prestigious recognition is given to select number of executives whose leadership has made a significant impact on their company and the housing and mortgage industry as a whole. Al’s countless intangible gifts and strengths add up to tremendous measurable benefits for PrimeLending. Across PrimeLending, Al has had a powerful and lasting effect as a big picture thinker, problem solver, talent developer and culture setter. This year, Al has played a key leadership role in PrimeLending’s branch expansion initiative, resulting in the addition of more than 30 new branches and 250 new LOs. He is an inspirational coach and team-builder known for guiding and mentoring young leaders. If you’re eager for the chance to discover your best by working with award-winning leaders like Al, contact Brian Miller today.

The Correspondent team at Home Point Financial is pleased to announce that Dan Sheehy has joined the company as Correspondent Institutions Manager. In this role, he will work with Home Point’s Delegated Correspondent clients in Maryland, Delaware, Northern Virginia and Washington DC.   Commenting on Mr. Sheehy, Steve Landes, Senior Managing Director – Correspondent Division said, “Dan is focused on providing our clients with the products and strategic solutions they need to maximize their growth. We are excited to have him join the team and build our presence in the Mid-Atlantic region. To congratulate Dan, drop him an email. Looking to give yourself the gift of a new career this holiday season with a fast-growing company? Check out Home Point’s career page to learn more.

Want to start a WHOLESALE channel or make your existing wholesale much more profitable?  Do it on the fly for a fraction of the cost of fancy, heavy, “legacy” platforms with ReadyPrice. The ReadyPrice retail & wholesale enterprise-strength LOS with an embedded multi-investor PPE and proprietary “error trapping” tech is the answer for any sized lender (or brokers wanting to become bankers). The ReadyPrice all-in-one RETAIL AND WHOLESALE platforms are fully configured out of the box, are up to 80% less expensive than heavy, “mature” competitors, come complete with D1C, deep Fannie DU, EarlyCheck etc. integrations and can be stood-up in a couple of weeks. Or, you can easily and inexpensively customize / configure her to easily fund thousands of loans per month from thousands of MLO’s or brokers, for example. The ReadyPrice LOS/PPE has funded over 300k units for $70 billion and is leading the way forward for today’s mortgage bankers as we utilize essential mortgage tech. Call (408) 357–0931 or email hello@readyprice.com to receive a free demo today.

Compass Analytics, a leading provider of pricing and hedge analytics platforms, is pleased to announce the addition of Frank Poiesz as the company’s Chief Revenue Officer. “Frank’s decades of experience in delivering financial services technology solutions to the mortgage industry, including pricing, eligibility and valuation technology, is a great match for Compass as we expand market share in pricing technologies for lenders and investors,” according to Rob Kessel, Managing Partner. Adds Frank, “I’m very excited to join the Compass team who bring to market the only full-featured capital markets platform from point-of-sale through the booking of servicing. Compass fills a crucial need of driving more profitable originations at a crucial time for our industry.” Be on the lookout for more news about Compass Analytics soon on LinkedIn.

“Due to growth, SocialSurvey is looking for Regional VPs of Business Development to open our Southwest, Midwest, and Southeast regions. Candidates must have proven success selling tech or services into the mortgage vertical. SocialSurvey, known for its mortgage reviews platform, now offers social media compliance monitoring as a part of our integrated platform. We create over 600,000 verified mortgage company reviews annually and share those reviews more than 4,000,000 times on social sites, Zillow, and Google to help boost online reputation. Social Survey also acts as an enterprise feedback tool that drives employee engagement and behavior. This is a great opportunity for somebody with the right experience and contacts. Are you ready for something different?” Send confidential resume and contact info to me for forwarding.

Evergreen Home Loans looks to build on the 100 loan officers hired so far in 2018 by seeking professionals looking to GROW their production and career. Professionals choose Evergreen due to its success growing Evergreen’s people (average production per Loan Officer at Evergreen increased 42% over the past 3 years) and high employee satisfaction. Recent awards include; #3 Best Workplace for women in 2018, a Best Medium Sized Workplace in 2018, and a Best Place to Work for Millennials in 2018 by Fortune and Great Place to Work. In addition, Evergreen was named the #1 company to work for on the list of Washington’s Best Workplaces by the Puget Sound Business Journal. Loan Officers who seek a company that provides the tools and culture to succeed – a place where 96% of employees surveyed are proud to tell others they work here, can find more information on the careers page.

Congrats to Dolph Meyerson and Steve Sofka who Supreme Lending (which will be 20 years old next year) has brought on as Area Managers. Supreme Lending has two hundred plus branches within the fifty states, has been regularly voted as one of the Top Places to Work.

“SoFi Is Cutting 7% of Staff and Will Revamp Its Ailing Mortgage Unit” is quite a headline for a company that other lenders feared a few years back. Three thousand miles away in Connecticut United Bank confirmed its own job cuts in a “reorganization” of the mortgage banking division.

Lender products & services

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

With the proliferation of POS systems, it’s easy to see the consumer direct model is a prime candidate for new technology. While it’s important to acquire new business, are we losing sight of the long-term relationship? What happens after the loan closes? “It’s important to provide the borrower with digital tools to support them throughout the process,” John McCrea, SVP of Business Development at MortgageFlex Systems said. “In 2 years will they still talk about a great online application process? Or will they mention that their mortgage rarely crosses their mind as the process just happens.” In addition to POS, MortgageFlex has also been making investments into servicing technology, looking to provide a better experience where the long-term consumer relationship is cemented. Moving servicing to the cloud and adding a fully functional portal are a couple of ways we are improving the consumer experience.

The Decision Science team at BBM has created an advanced suite of propensity data models that help professional origination marketers identify homeowners who are actively in the market for FHA, VA, Jumbo and Non-Agency loan optionsBBM is a professional origination strategy and data driven marketing firm focused exclusively on helping direct to consumer lenders recalibrate their marketing spend towards equitable clients that will help your firm regain market share and profitability. If you are looking to expand into profitable areas of conventional and non-agency originations then BBM may be just the answer you are looking for. We specialize in modeling big data attributes for predictable and probable outcomes and applicants that meet your enterprise profitability targets. Our average loan amount for active FHA/VA and Non-Agency applications exceed $350K and gross top line revenue of nearly $15,000. Let BBM show you how a targeted marketing strategy focused on propensity modeling and targeted revenue opportunity can change the trajectory of your company. Please contact Bill Senteno and visit www.bbm.company for more information.

Capital markets

We’ll see the November jobs report this Friday. To refresh your memory, jobs and housing drive the economy. Nonfarm payrolls increased by 250,000 in October, higher than market expectations of +190,000. Adjustments to August and September netted no change and the average gain over the last three months was 218,000. The number of employed increased by 600,000 and the labor force increased by 711,000. While the official unemployment rate remained at 3.7 percent, moving out one more decimal showed it increasing from 3.68 percent to 3.74 percent. Job gains were broad-based in October as Education and healthcare gain 44,000 jobs, Leisure and Hospitality gain 42,000 jobs, professional and business services gained 35,000 jobs, manufacturing gained 32,000 jobs, and construction added 30,000 jobs. Wages continue to inch up, increased 0.2 percent for the month and 3.1 percent over the previous twelve months. With the continued strength in the labor markets and inflation near the Fed’s target of 2 percent, the expectation remains that the Fed will increase the fed funds target by 25 basis points at its December meeting are potentially twice more in 2019.

Interest rates? The U.S. 10-year closed last week yielding 3.01% as markets were captivated by a saturation of coverage of the G20 Summit and the uncertainty hanging over the Saturday dinner meeting between President Trump and President Xi to discuss trade matters. Speaking of the summit, President Trump, Prime Minister Trudeau of Canada, and President Nieto of Mexico signed the USMCA agreement, replacing NAFTA on Friday. Other international news of note included China’s Official Manufacturing PMI for November which failed to meet expectations and registered a 28-month low. Eurozone preliminary November CPI was weaker than expected and piqued concerns about slowing growth. And the Bank of Korea raised its key interest rate for the first time in a year by 25 basis points to 1.75%, as expected.

We’ve begun the final month of 2018 and have a decent chunk of economic data for markets to digest and much Fed speak. Today kicked off with an interview between Vice Chair Clarida and Bloomberg. Fed Governor Quarles participates in a moderated Q&A later this morning. We will also have New York Fed President Williams and Governor Brainard speaking at the same conference this morning, before the day rounds off with Dallas’ Kaplan speaking in Plano. As far as releases go, final November Markit manufacturing PMI kicks off the data calendar at 9:45am followed by October construction spending and November ISM manufacturing PMI.

Tomorrow, we receive Auto and Truck Sales for November before the usual MBA Mortgage Applications Index on Wednesday, which also brings the latest ADP Employment Change for November; Revised Q3 Productivity and Unit Labor Costs; ISM Non-Manufacturing Index for November; and the Fed’s Beige Book. Thursday brings the jobless claims and October Factory Orders before Friday reveals University of Michigan Consumer Sentiment for December; and Wholesale Inventories for October. The week begins with rates higher: the 10-year is back up to 3.04% and Agency MBS prices are worse nearly .250.

From Houston Robert S. sent, “Did you hear about the dyslexic who spit in the tips jar?

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, “Servicing: Don’t Underestimate Liquidity.” 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 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

 

Dec. 1: DACA – lenders & investors decide residency; URLA/1003 questions for every MLO to ask

My cat Myrtle never pays attention to rumors. Pine-scented cat litter next door? She shrugs. Line-caught salmon for dinner every night up the street? Couldn’t care less. Not so, however, in mortgage banking as rumors and bad-mouthing by some continue. How would you like to receive this email from a respected owner of a mid-sized non-depository lender in the Midwest? “This industry is turning on itself. We hear so many rumors and have people attacking us and calling our agents with things that are not true. I have never seen so much in-fighting ever. Why is everyone trying to take down everyone else with these lies? Why are the recruiters allowed to say anything they want? How can we get our industry to raise its standards and stop acting like the old subprime reps? It’s so disheartening!” [Apologies to any old subprime reps.]

URLA: Shades of TRID rollout?

The GSEs (Freddie and Fannie) have redesigned the Uniform Residential Loan Application (aka Form 1003), developed a corresponding Uniform Loan Application Dataset, and created a new Desktop Underwriter Specification (DU Spec) for submitting the redesigned Form 1003 data to DU. Rumor has it that the Agencies originally were going to implement it last January but the additional data fields required weren’t (originally) collected in a typical loan file, leading to complexity issues, so they kicked the can.

Want to see what the borrower will see? Here you go. Freddie Mac has a nice graphic showing the timeline. Unfortunately for every single lender, and every loan officer who takes a loan app, there’s a big difference between “Start planning now” and actually having everything in order. Do I have to remind you about how smoothly TRID was implemented having a year or two lead time?

Why are the Agencies doing this now? “Changes in the mortgage industry and the regulatory environment have led to the need for the GSEs to reassess the information obtained at the time of loan origination. The URLA/ULAD initiative has the following objectives. First, to update the URLA form to collect loan application information that is relevant and useful to the industry in making a loan underwriting decision, as well as update the physical format and layout to enhance the collection of information and usability of the form. Second, to develop and publish an industry data standard in support of the URLA. The ULAD Mapping Document provides a cross reference for every field on the redesigned URLA to the equivalent data point(s) in the MISMO Version 3.4 Reference Model. And third, publish GSE-specific automated underwriting system (AUS) specifications for Desktop Underwriter® (DU®) and Loan Product Advisor® updated to MISMO v3.4 and including the new URLA data fields.

I am fielding notes of dismay about the length and complexity. Nearly a month ago I published this: “In a world where things are becoming faster, easier, and more accurate, we have this for lenders?” There are some questions that every lender should be asking, and every vendor, and the Agencies, should have answers for. Third-party integration? Implementation support? business process design, LOS modifications, LO sales training?

How long is the form? The length of the redesigned URLA will vary depending on the number of borrowers, the type of loan and the type of transaction. All the examples I have seen are 9 pages, more if overflow is needed. The URLA Rendering Document provides additional formatting guidance for technology solution providers and lenders to tailor production of the form according to system requirements.

Wholesale lenders accepting brokered loans, or correspondent investors buying loans, will you accept two apps from the same lender for several months? (Lenders may begin submitting loan application production files starting July 1, 2019. Lenders will be able to submit their existing datasets until February 1, 2020.) F&F currently tell us that new applications dated February 1, 2020, or later must use the new AUS datasets based on MISMO v3.4. Applications dated before February 1, 2020, but that have not closed (e.g. construction loans) will be accepted in the existing data formats until February 1, 2021, when only the datasets based on MISMO v3.4 will be accepted.

Can or should the redesigned URLA be viewed in a web browser? It appears that no, the GSEs recommend that lenders and technology solution providers download the forms to their computers and then open the forms using a PDF document reader such as Adobe Acrobat Reader or Adobe Acrobat Pro. Ask F&F, but if the forms are opened within a web browser, the fillable PDF versions of the form may lose some functionality and as a result, not perform as designed.

By using the new URLA, are Fannie & Freddie telling the loan officer how to ask the questions and in what order? Ask your Agency rep, but it appears that they are proposing the consumer interview sequence of questions and interview flow as an interactive PDF that can take the role of input form. Experienced LOs are good at knowing how to glean information from their borrowers, and how to ask questions. Will that be eliminated?

What if the LO can’t have all the questions answered in one sitting? Good Question: that is likely to be bigger than just a technology change and will require modified processes and training.

Has there been real testing of the proposed interview flow and data sequence to see how well all of the new 1003 data elements will handle overflow cases (e.g., when you have 5 other sources of income and the form for 3, more assets and liabilities than there is room on the form to handle)? Ask Fannie & Freddie!

If your company just spent several months, tens of thousands of dollars, and countless hours of LO training rolling out a new LOS, what now? I don’t know – ask your vendor!

John Haring, Director of Product Management at Ellie Mae, shot over, “While the new URLA and ULAD are fifteen months away, that’s not a lot of time to get prepared for the impact of the changes. At Ellie Mae, we are planning to deliver functionality in the July 2019 timeframe to coincide with the early release date of the URLA and allow customers and partners ample time to test and transition. Ellie Mae’s goal is to always minimize any regulation or industry change so that it becomes a ‘non-event’ for customers and partners.

“Nearly every mortgage application is collected on Form 1003 or Form 65 and the format has not changed significantly in the last 20 years. Fannie Mae and Freddie Mac, under direction of the Federal Housing Finance Agency (FHFA), have significantly redesigned the form. With this, lenders may choose to use the new URLA starting July 1, 2019, although the GSEs will not require it until on or after February 1, 2020 for new loan applications.

“The redesigned URLA takes a design thinking approach, with dynamic field collecting and a presentation of data tailored to the individual borrower and loan scenario. The goal is to provide greater efficiency, transparency and certainty for future homebuyers applying for mortgage loans and greater consistency for lenders who sell to both Fannie Mae and Freddie Mac.

“While the new URLA and ULAD are fifteen months away, that’s not a lot of time to get prepared for the impact of the changes. At Ellie Mae, we are planning to deliver functionality in the July 2019 timeframe to coincide with the early release date of the URLA and allow customers and partners ample time to test and transition. “Ellie Mae continues to educate and keep customers and partners updated on the latest with URLA/ULAD with a series of webinars, FAQs and resources for training. Your readers can find them all on Ellie Mae’s Compliance Central.

Will the proverbial can be kicked down the proverbial road, and implementation delayed? Perhaps, but for now, despite lenders being caught up in the glamor of the nebulous “digital mortgage,” every entity that takes a loan app, and every investor that buys loans based on the information contained in that app, had better focus on having an implementation plan and holding vendor partners accountable. Pronto.

DACA loans

“Rob, I am seeing some lenders, and hearing about others, offering DACA loans. And some with conventional loans. Any feedback or anything you are hearing that make these possible?”

First, yes, apparently some lenders are offering these loans to individuals who fall under the Deferred Action for Childhood Arrivals (DACA) – a kind of administrative relief from deportation. Service to their community? Competitive reasons? Generally, lenders will make the loans and investors will buy them if some minimum level of residency is met. Some investors, such as loanDepot’s wholesale channel, spell things out in terms of eligibility.

Personally, I would be hesitant about basing my entire business plan on originating these loans, but that’s just me. Like MSAs and joint ventures, lenders should know all aspects. One can start by seeing what the U.S. Government, in its infinite wisdom and with its ability to state things in language we can all understand, has to say: “On June 15, 2012, the Secretary of Homeland Security announced that certain people who came to the United States as children and meet several guidelines may request consideration of deferred action for a period of two years, subject to renewal. They are also eligible for work authorization. Deferred action is a use of prosecutorial discretion to defer removal action against an individual for a certain period of time. Deferred action does not provide lawful status.”

Here is what Fannie’s Guide has to say about this. “Borrower Residency Status: The Selling Guide is clear that lenders, not Fannie Mae, determine whether an individual is legally present, and decide upon the documentation used to make that determination (my bolding). On the specific subject of DACA, lenders may wish to review applicable judicial decisions to evaluate whether current DACA beneficiaries’ status is consistent with being ‘legally present’ in the United States. We have also been advised to let Lenders know it is their responsibility, as always, to look at the specific circumstances of the individual’s employment to determine whether our continuity of income representation and warranty is met.”

Freddie Mac is also very clear in its guide (bottom of page 26) that the “Sellers represent and warrant that the non-U.S. citizen borrower is lawfully resident in the United States. Freddie Mac does not specify the documentation required to establish lawful U.S. residency…”

From what I understand, verbally FNMA and FHLMC are classifying DACA Borrowers as “Non-U.S. Citizen, not lawfully in the U.S.,” therefore, not eligible for financing. In writing they refer the actual question back to the lender.

FHA? Same kind of thing. The Atlanta HOC has verbally confirmed with lenders that there are still no changes to its policy. Namely, these individuals are considered temporary residents which fall under non-U.S. citizens without lawful residency in the U.S. and are not eligible for FHA insuring at this time. Borrowers with deferred action status are not eligible for FHA financing because they are not on a pathway to residency and do not meet the guidelines printed in the manual. Additionally, these loans are clearly not eligible for USDA financing as GUS requires you to enter information that identifies their status in the US. When you do so, GUS will tell you that the borrower is ineligible.

This commentary discussed DACA borrowers in the autumn of 2016 and it probably still aligns with HUD’s current position on DACA borrowers. There are millions of these people here in the U.S. and many of them are trying to apply for loans. Many of these loans are closing even though most lenders agree they should not.

Perhaps most DACA borrowers have probably closed undetected under FHA financing because HUD has nothing published regarding the ‘Category’ a Borrower’s EAD card is issued under (few were monitoring the “Category” of the Borrower’s EAD card on FHA loans and only recently became aware of Category C-33 being an identification of a DACA Borrower). Most lenders know that potential borrowers with EAD cards issued under Category C-33 need to be underwritten under paragraph (c) of Section (9) for Residency Requirement.

Since HUD published Handbook 4000.1, lenders have been told to “follow what is published in the 4000.1”. Some believe that a DACA borrower holding a valid EAD card should be eligible for FHA financing until HUD publishes that EAD cards issued under Category C-33 are not eligible for FHA financing. Because without that detail most DACA Borrowers will meet all of HUD’s published requirements under HUD Handbook 4000.1 Section II.A.1.b.ii. (A).(9).(b) for a ‘Non-Permanent Resident Aliens’.

Some in the industry believe that politics are to blame for the confusion (imagine that!) but that the Agencies will wait for one of the loans to go delinquent and push them back for repurchase stating the lender shouldn’t have made the loan because the borrower did not have a lawful status. Let’s hope that’s not the case. Agencies are not charged with setting the Administration’s policy.

(Thanks to Tony H. for this one.)

A delightful angelic little boy was waiting for his mother outside the ladies room of the gas station.

As he stood there, he was approached by a man who asked, “Sonny, can you tell me where the Post Office is?”

The little boy replied, “Sure! Just go straight down this street two blocks and turn to your right. It’s on the left.”

The man thanked the boy kindly, complimented him on how bright he was and said, “I’m the new pastor in town. If you and your mommy come to church on Sunday, I’ll show you how to get to Heaven.”

The little boy replied with a chuckle; “You’re kidding me, right? … “You can’t even find the Post Office.”

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, “Servicing: Don’t Underestimate Liquidity.” 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 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Nov. 30: LO jobs; paper on fraud, construction product; FDIC & non-bank lending; the Fed to start watching OBFR instead of Fed Funds?

As one Native American said, “Only a white man would cut two inches from the top of a blanket, sew it to the bottom, and think he has now has a longer blanket.” (Feel free to use that one wherever you like.) Winter is coming, with its increased blanket needs. According to the Census Bureau, while the majority of U.S. households are heated by electricity (39%) or utility gas (48%), 2% rely on wood for heat. Weighing in for the top two counties reliant on wood (with populations of 65,000 or greater) is Apache county Arizona accounting for 61% and McKinley county New Mexico at 39%. On the low end, Nevada county California and St. Lawrence county New York utilize 17% wood heat.

Employment & retail products

Caliber Home Loans, Inc., with a 25% growth rate in government volume between the Q3 2017 and Q3 2018, continues to report strong numbers – per IMF – throughout a challenging year for the industry. In 2018, Caliber has hired to-date 517 producers to join its national sales force, who will conservatively add $4.5 billion in annual purchase volume. Looking ahead, Caliber is excited to carry the positive momentum into 2019 and beyond. “Caliber is committed to establishing a local presence in markets across the nation,” said Caliber CEO Sanjiv Das. “Our loan officers are strong forces in their communities, and their stellar work has helped Caliber grow tremendously in the past few years. I can’t wait to grow our team further.” If you’re a motivated loan officer, looking to join a premiere purchase lender, visit JoinCaliberNow.com or reach out to Jeremy DeRosa.

Parkside Lending, LLC continues to expand its product offering!  Now offering USDA loans, Interest Only loans down to $100,000 and Jumbo using DU findings.  They’ve also launched Jumbo II allowing Restricted Stock Unit income, loan amounts to $4,000,000 and Non-Warrantable Condos.  With Parkside’s simplified process, automated Loan Estimates, state and federal disclosures delivered electronically, access to underwriters, and a plethora of products, it is easy to see why brokers love working with Parkside. Parkside continues to grow and is excited to welcome Alan Michaels and Debbie Baider covering the Mid-Atlantic states. They bring incredible depth and experience in the Mid-Atlantic region. Parkside isn’t done with new product roll outs; HELOCs and more Interest Only & Non-QM programs are coming soon, plus a Bank Statement program. To find out more about these programs contact your Account Executive or Sales@ParksideLending.com. If you are an Account Executive looking to join a great team or are a mortgage broker who is not currently working with Parkside Lending, please contact us at Sales@Parksidelending.com.

Gateway Mortgage Group, has introduced an innovative program designed to protect a homebuyer’s down payment. The new Down Payment Protection program is offered through ValueInsured and has been integrated into most of Gateway’s mortgage loan products. This unique program offers homebuyers an optional insurance feature minimizing market risk on the value of their home and safeguard some, or all, of their down payment. If the market price drops and the home sells at a loss, up to the full amount of the down payment could be reimbursed in a turnkey, home inspection-free process that can take 30 days or less. “Gateway is always growing and innovating,” said Alan Ferree, president of Gateway. “This program allows us to differentiate Gateway from other mortgage lenders while providing our customers a unique option that offers peace of mind and simply makes sense for certain markets or borrowers.” For more information, visit Down Payment Protection at Gateway or contact your local Gateway Mortgage Group branch.

PRMG continues to expand its national footprint by opening 5 new Retail Locations during the month of November!  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 Colorado Springs, CO; West Palm Beach, FL; Chicago, IL; Farmers Branch, TX and Federal Way, WA.  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 and services

CALCAP Lending, LLC a leading wholesale lender in the high demand private money lending market is “Front and Center” at the upcoming NAMB 2018 conference in Las Vegas. We invite attendees to visit with us at Booth #400 to find out more about our competitive rental, fix-and-flip, foreign national, and construction lending business purpose lending programs, including CALCAP’s recently released Zero Point upfront option. On pace to double production from last year, CALCAP Lending has established a “Value Partners Program” dedicated exclusively to mortgage originators who are seeking to expand their production and income opportunities. To become a CALCAP Value Partner or to learn more about CALCAP Lending and the career opportunities we offer which include sales training, please click here or give us a call at 855-372-0960.

Professional Development has been proven time and time again as a vital step for achieving business growth. There are infinite possibilities, however, to realizing deep and everlasting success & happiness when we invest in ourselves personally as well as professionally. XINNIX, The Mortgage Academy, is committed to helping you thrive in every aspect of your life. As you focus on developing plans for your business in 2019, XINNIX is offering a great year-end opportunity to enrich your personal development as well with free registration to its December 12th webinar, Infinite Possibilities presented by XINNIX CEO Casey Cunningham. In this empowering session, you will learn how to plan and prioritize your personal and professional goals, implement a formula for success, and write and effective life mission statement that guides your decisions and priorities. CLICK HERE to register today for Infinite Possibilities on Wednesday, December 12 at 10 AM ET!

“Here’s a hi-tech breakthrough in lending to self-employed borrowers. Amidst rising interest rates and declining origination volume, lenders must cast a wider net for customers, a growing number of which are self-employed. To capitalize on this trend, lenders need a simpler, faster way to underwrite mortgages for Americans who are their own bosses. To this end, Freddie Mac has integrated fintech vendor LoanBeam’s technology with Loan Product Advisor®, our automated underwriting system, to introduce the first and only integrated self-employment income solution for the market. LoanBeam’s software uses optical character recognition technology to extract and digest a borrower’s tax returns and other financials, and then calculate a total income figure that aligns with Freddie Mac’s guidelines. This integration offers lenders several advantages, including an automated review of the accuracy of qualifying income, eliminating the need to chase down unnecessary documents that support residual/excess income and certainty that the income calculation is eligible for representation and warranty relief.” Learn more.

FundingShield reported an estimated $75 million per day in wire and closing fraud

exposure. This will result in exposure of $20+ Billion in 2018 despite reduced volume the sector remains a hotbed for cyber criminals and fraud. Wire fraud and cyber threats such as phishing, injection and business email compromise events spike during the holiday season when fraudsters take advantage of staff being on vacation, increased consumer transactions, increased remote access by staff and more back up teams supporting production and operations. Couple this with the expansion of digital lending processes, widespread use of wireless networks that may not be encrypted and properly secured, email server threats to known and new third-party relationships of lenders, closing and settlement companies and law firms and the risk is more prevalent. Jerry Halbrook, former President of Black Knight Inc. Origination Technology and Business Intelligence Divisions and Fundingshield Advisory Board member shared Unknown parties to the transaction as well as known and trusted vendors are being exposed to these risks hence a proactive transaction level monitoring system is needed” Contact info@fundingshield.com to create a user centric risk and control strategy to get ahead of wire and cyber fraud attempts that go beyond a vendor vetting with active defenses at the loan level that save your firm on operational and risk cost.

M&A keeps on keepin’ on, and what about non-bank lending?

Capital One ($408B, VA) will acquire online shopping comparison engine Wikibuy. Wikibuy provides price comparison in real time, get coupon codes at checkout and receive price drop alerts on products and services to its more than 1mm members.

From Alabama comes news that Hometown Lenders, Inc., has acquired TotalChoice Mortgage Division, led by Michael Farrell, Divisional Manager. “In the upcoming months, TotalChoice Mortgage Division plans on adding production offices in North Carolina, Pennsylvania and Florida. These additions alone will increase the 2018 annual projected loan origination volume by $240 million. TotalChoice Mortgage is a division of Hometown Lenders, Inc., a privately held mortgage lender with locations in Columbus, Ohio, as well as other states. Hometown Lenders, Inc. maintains 37 active state licenses to originate residential refinance and home purchase loans. The company size is approximately 400 employees.”

Speaking of non-bank lenders, which regulators view as thinly capitalized versus banks in case something goes wrong, they now account for 44% of lending by the top 25 originators, up from 9% in 2009… Five of the largest ten are non-banks, as is the largest retail mortgage originator, Quicken Loans. Their market share for servicing mortgages, or collecting monthly payments, has risen from 5% in 2009 to 41% this year. The FDIC is certainly aware of, and concerned with, the trend.

Capital markets

The Fed is considering big change in how it sets US interest rates, possibly targeting the OBFR instead of the fed funds rate. But what is the OBFR? The Fed tells us that, “The overnight bank funding rate is calculated using federal funds transactions and certain Eurodollar transactions. The federal funds market consists of domestic unsecured borrowings in U.S. dollars by depository institutions from other depository institutions and certain other entities, primarily government-sponsored enterprises, while the Eurodollar market consists of unsecured U.S. dollar deposits held at banks or bank branches outside of the United States. U.S.-based banks can also take Eurodollar deposits domestically through international banking facilities. The overnight bank funding rate (OBFR) is calculated as a volume-weighted median of overnight federal funds transactions and Eurodollar transactions reported in the FR 2420 Report of Selected Money Market Rates. The New York Fed publishes the OBFR for the prior business day on the New York Fed website at approximately 9AM ET.”

To a large degree interest rates move based on supply and demand. How’s the supply going on the housing side of things? The phrase “housing market slowdown” isn’t exactly surrounded in positive connotation, but as the $220 trillion global housing market starts to cool off in some places against a backdrop of monetary policy normalization, there may be some reasons for calm. Price declines are impacting the most expensive cities, where they might not drag down consumption the way standard theory predicts. In theory, a housing price decline should leave households feeling less confident about their finances and less willing to spend. But the pace of home price increases has exceeded the rise in disposable incomes by so much in some markets that a little cool-off might instead make consumers less budget-constrained. Despite global property prices potentially peaking for the cycle in places now on the decline like London, New York, Stockholm, Hong Kong and many other cities, it may not lead to a significant weakening in consumption, as long as it remains modest and gentle. It may actually promote consumption in some areas.

The U.S. 10-year closed Thursday -1bp to 3.04% as Treasuries across the curve closed on a mostly flat note after backing off their opening highs after the market received another reminder of a weakening housing market in the form of a disappointing Pending Home Sales report for October. The FOMC Minutes from the November meeting acknowledged that almost all policymakers believe that another rate hike will be warranted “fairly soon.” Policymakers also noted that fiscal stimulus and a strong consumer could produce upside risks to inflation. Personal income and personal spending both beat expectations, while Real PCE, which is the component that factors into Q4 GDP forecasts, was up a solid 0.4%. The tamer the inflation readings support the Federal Reserve taking a more deliberate approach to raising the fed funds rate.

Today will see much of the markets’ attention in Buenos Aires as the G20 summit gets under way and continues into the weekend. With regards to the economic calendar, today is relatively light consisting of just Chicago PMI for November and an appearance by NY Fed President Williams. Additionally, the U.S., Mexico, and Canada are set to sign a new NAFTA deal. We begin today with the 10-year yielding 3.01% and Agency MBS prices better a smidge.

The wedding ceremony came to the point where the minister asked if anyone had anything to say concerning the union of the bride and groom.

The moment of utter silence was broken when a beautiful young woman carrying a child stood up. She starts walking slowly towards the minister.

The congregation was aghast – you could almost hear a pin drop. The groom’s jaw dropped as he stared in disbelief at the approaching young woman and child.

Chaos ensued. The bride threw the bouquet into the air and burst out crying. Then the groom’s mother fainted. The groomsmen started giving each other looks and wondering how to save the situation.

The minister asked the woman, “Can you tell us, why you came forward? What do you have to say?” There was absolute silence in the church.

The woman replied, “We can’t hear you in the back.”

And that illustrates what happens when people are considered guilty until proven innocent.

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, “Servicing: Don’t Underestimate Liquidity.” 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 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Nov. 29: LO, AE jobs; broker, fraud, subservicing products; training & events in the next 2 weeks; Fed speech moves rates

Yes, MLO commissions are dropping. But the traditional 6% real estate agent commission continues to be under attack as well, the latest salvo fired from Clever, a real estate startup that connects homeowners to top rated agents in their area that list their home for less commission. (“Our main goal is to connect potential sellers and buyers to top performing agents based on the homeowner’s specific needs, but we also write guides, share tools, and teach our readers pretty much everything they need to know about the mortgage process via our blog.” Questions? Contact Chris Milko.) Realtors are also watching Ribbon Home, Zillow Offers, and Open door.

Jobs

A nationwide wholesale lender has immediate opening for a team in key US markets. This heavily capitalized lender leverages a centrally located and seasoned fulfillment team. Broad product portfolio and competitive rates offered along with an experienced leadership team dedicated to expansion. Send me a confidential note if you and your team are ready to start a new in 2019.

PRMG continues to expand its national footprint by opening 5 new Retail Locations during the month of October! 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

Indianapolis, IN; Homestead, FL; Melbourne, FL; Columbus, OH and Mentor, OH. PRMG is Built by Originators for OriginatorsTM and is devoted to continuously growing its retail platform. If you are a Motivated Loan Originator who wants to be progressively better, contact Chris Sorensen (909.262.0452).

And remember that any displaced employees (the latest rumors focus on Cendera and United Bank, Hartford, CT, unfortunately) can place their resumes on www.LenderNews.com for free.

Lender products and services

Borrower satisfaction has always been the main focus to lenders large and small. Many state the benefits of repeat business, increased referrals, and stronger relationships with realtors as their motivators, but very few in our industry know how to track the ROI and level of investment they should be putting towards their borrower focused initiatives. A new eBook, “Borrower Satisfaction & Profitability” brings together focus areas and industry data, enabling lenders to track and monitor the impact of their borrower satisfaction efforts. An exclusive to Rob Chrisman subscribers today and a must read for all mortgage lenders, Download Your Free Copy Here.   

We now live in the age of digital mortgage processes. Lenders who use outdated technology, or none at all, to interface with their customers are experiencing a sharp rise in loan production costs, as well as a decrease in overall borrower satisfaction. Tech-focused non-banks like Quicken Loans continue to absorb more and more market share every year, and now dominate the list of top lenders by volume. At the same time, less agile institutions have seen their origination volumes and lending departments shrinking by the day because this new generation of borrowers expects to transact digitally with mobile options. They also expect to be continuously informed. And when they work with lenders who employ Floify’s point-of-sale technology, they get to check all those boxes. In just 30-minutes, see for yourself how the innovative platform can immediately put your team on the leading edge of mortgage tech, and keep it there!

Protect your earnings and be prepared. Digital lending and virtual consumer experiences are all the hype in today’s market. And while there are a lot of benefits, it doesn’t come without its risks. Real, tangible risks. Wire transfer fraud, which saw a 480% increase just a few years ago, can cause a major upset to a company’s bottom line and become a huge resource waster. Learn more with Informative Research’s new article about the “4 Answers on Wire Transfer Fraud that Criminals Don’t Want You to Know.” With so many areas open to exploitation, companies can never do too much to understand wire transfer fraud and prevent losing thousands of dollars at a time. For more detailed information, contact one of our team members at info@informativeresearch.com.

“Lenders, cut 80% off your essential LOS/PPE tech spend. The ReadyPrice retail and wholesale enterprise-strength LOS with an embedded multi-investor PPE and proprietary ‘error trapping’ tech is the answer for any sized lender (or brokers wanting to become bankers). The ReadyPrice all-in-one retail and wholesale platforms are fully configured out of the box, are up to 80% less expensive than heavy, ‘mature’ competitors, come complete with D1C, deep Fannie DU, EarlyCheck, etc. integrations and can be stood-up in a couple of weeks. Or, you can easily and inexpensively customize/configure it to easily fund thousands of loans per month from thousands of MLO’s or brokers, for example. The ReadyPrice LOS/PPE has funded over 300k units for $70 billion and is leading the way forward for today’s mortgage bankers as we utilize essential mortgage tech.” Call them at (408) 357–0931 or email hello@readyprice.com to receive a free demo today.

Did you know that, according to HubSpot, 39 percent of marketers say proving the ROI of their marketing is their top marketing challenge? When developing your plan for 2019, build it with confidence. Consult with the mortgage and fintech industry communications specialists at Seroka Brand Development. Seroka has been creating and executing successful marketing and PR communications plans for over 30 years. Today’s plans demand a contemporary approach that utilize a blend of digital, social media and traditional tactics along with the right tech stack to generate positive awareness, build engagement with your brand and drive conversions. And, with Seroka, you’ll have access to detailed campaign measurement and analytical tools to confidently evaluate your success, often in real time. Seroka can also help with specific campaigns or special projects. So #TurnUpYourBrand and make Seroka’s experience your advantage. Learn more here or email info@seroka.com to schedule a free consultation.

JMAC LENDING’S Non-QM submissions are through the roof. With streamlined features such as our 3-month bank statements option and Buyer Pre-Approval for bank-statement loans, it’s easy to see why JMAC is leading the Non-QM surge. Many brokers feel Non-QM loans are too complex. Not for the underwriters at JMAC, since we were one of the first to offer non-QM products. We’re here to help our clients navigate these products and assist with scenarios. In fact, non-QM scenarios are answered quickly by our experienced Account Executives. To speak with an AE, and to submit a scenario, contact sales@JMACLending.com or call 844.888.5622. You can also fill out our scenario form to find assistance right now! Experience the JMAC Difference today.

Are you a hunter or a farmer? And what does this have to do with the business of lending or subservicing anyway? This new white paper from TMS gives a fresh take on subservicing and how the cost of acquiring a new customer (“Hunting”) is often lost.  Instead, lenders hand over their new, precious customers to a subservicer who doesn’t help them retain (“Farming”) that customer for future value. Partner with a subservicer who will deliver the same level of customer service your customers have come to expect from you. Make sure you’re a farmer. If not, you risk a lasting negative effect on business.

NAMB national is just a few weeks away. While many are concerned with what the future holds, REMN Wholesale sees massive opportunities for brokers who need to offer more than the basic vanilla products. If a borrower doesn’t fit nicely into a QM loan these days, and to be honest, many don’t, REMN now offers the Simple Access program. Supported by one of the top customer service teams in the industry, REMN’s Simple Access non-QM program provides a unique opportunity to work with quality borrowers who don’t qualify for QM loan products. REMN believes that products and technology are nothing without the necessary people to support them, which is why it continues to grow by recruiting some of the best account executives in the industry. Recent additions to the REMN team include Jim Collins in Connecticut and Christine Garcia, who will be handling all of Los Angeles County.

“Here’s a hi-tech breakthrough in lending to self-employed borrowers. Amidst rising interest rates and declining origination volume, lenders must cast a wider net for customers, a growing number of which are self-employed. To capitalize on this trend, lenders need a simpler, faster way to underwrite mortgages for Americans who are their own bosses. To this end, Freddie Mac has integrated fintech vendor LoanBeam’s technology with Loan Product Advisor®, our automated underwriting system, to introduce the first and only integrated self-employment income solution for the market. LoanBeam’s software uses optical character recognition technology to extract and digest a borrower’s tax returns and other financials, and then calculate a total income figure that aligns with Freddie Mac’s guidelines. This integration offers lenders several advantages, including an automated review of the accuracy of qualifying income, eliminating the need to chase down unnecessary documents that support residual/excess income and certainty that the income calculation is eligible for representation and warranty relief.” Learn more.

Events & training in the first half of December

The Federal Financial Institutions Examination Council (FFIEC) will hold a webinar on December 6 to promote awareness and understanding of efforts to develop alternative reference rates to LIBOR, because of the uncertainty as to continued availability of LIBOR after 2021: view the FFIEC November 19th press release.

Register now for the MBA’s December 6th Increasing Sales with Women Homebuyers webinar and learn the best practices and strategies to reach one of the fastest growing buyer segments in the nation.

Lenders One is hosting The Executive Roundtable December 5-6 in Miami, FL, including a session on developing a strategy and growth plan in a down market with executive coach Gary Peck, a best practice roundtable led by our sponsor Fannie Mae, and a market outlook and business forecasting led by Mike Fratantoni from the MBA.

The 2018 NAMB National Conference will be held December 8th-10th in Las Vegas including a session featuring Freedom CEO Stan Middleman and Angelo Mozilo comparing the beginnings of their companies, the evolution of lending, and discussing their thoughts on what the future holds.

The MBA is starting a brand-new study on HELOCs and home equity lending and servicing, which will include benchmarking data on portfolio characteristics, utilization rates, draw activity, repayment options, as well as statistics on new commitments such as processing times and pull-through. The study is for MBA members who originate and/or service these products; the participants will help design both the survey instrument and outputs. The initial planning call is on Tuesday, December 11 at 2PM ET. Register for the call here.  Download the informational flyer or contact Marina Walsh with questions.

On December 11th, industry leaders, Patrick Stone and Ken Markison will discuss the economic and compliance environment in 2019. Register for this Economic and Regulatory webinar here.

October Research, LLC’s annual Economic and Regulatory Outlook webinar is 12/11 at 2PM ET.

Don’t miss registering for the December 15thNMMLA annual Teddy Bear and Blanket Drive luncheon with guest speaker, Mayor Tim Keller.

National MI issued its training for December. A Look Ahead to Social Media Trends 2019: PDT, Dec 13, Oh, Shift! Session #3 – Flow: PST, Dec 12, A Look Ahead to Social Media Trends 2019: PDT, Dec 13. Click here: National MI to register for these classes.

Capital markets

Once again stocks grabbed the headlines, but secondary marketing groups saw some volatility yesterday. The U.S. 10-year closed Wednesday’s session at 3.04% as early action was reversed by Fed Chairman Jay Powell’s dovish remarks saying that interest rates are “just below” neutral. In his estimation, rates “remain just below the broad range of estimates of the level that would be neutral for the economy,” however, these words were digested as “dovish” by capital markets. Accordingly, the Federal Reserve’s Financial Stability Report acknowledged that asset prices “appear high relative to their historical ranges, ” and escalating trade tensions, geopolitical uncertainty, or other adverse shocks could produce a sharp decline in asset prices. The report also acknowledged that business sector debt relative to GDP is historically high with signs of deteriorating credit standards.

Powell’s comments nudged one veteran originator to pen, “The Federal Reserve continually and repeatedly states that it is data-driven. That’s fine in 1980, but with the advent of the computer the world is driven by real time data algorithms, if you will. Even the average person receives news almost instantaneously.

 

“It seems the data the Fed is using, for better or worse, is trailing the real world by 60-180 days. This reminds me of ten years ago. In late Feb 2007 a New Century AE comes into my office and says that their warehouse lines were frozen, 3 weeks later they were gone, by late June the wholesale subprime market was gone, in August the jumbo market was in dire straits, and in early September the FRB Chairman says the subprime market is ‘contained.’

“Yes, that is rehashing the old, what seems like a few weeks ago for some, but it is still relevant. In July and Aug, I was being told by friends they were seeing a huge slowdown in real estate. I was fortunate and didn’t see it until late September. November has been a disaster. The Fed had been worrying about an over-heating economy, and still on target to raise rates. Today was a positive, but only by one person.

“At one point I saw something that said about 20% of homes had second mortgages. I don’t know where that is today, but I still have loans being subordinated because HARP excluded them, the CLTV wouldn’t work, or because the cash out LLPA was too high. Every jump in the discount impacts that chunk of the economy. A 1% increase in a $200k HELOC is $166 per month. As an originator I see a lot of them, and that $166 doesn’t help the economy.”

Looking at today, we’ve seen November’s Personal Income and Spending (strong at +.5% & +.6%, respectively) weekly jobless claims (+10k to 234k, 6 month high), and core PCE only +.1%. Fed Chair Powell, who turned heads yesterday, will be back speaking though he is not expected to make any major market-moving comments. The October Pending Home Sales Index is seen unchanged at 10:00am (versus +0.5% previously). We then turn to some action from the Fed, which will release the minutes from the November 7-8 meeting at 2PM ET, the same time as Fed Presidents Mester, Evans, Harker, Kashkari, Rosengren and Kaplan all participate in an Economic Development forum discussion. We begin today with the 10-year yielding 3.00% and Agency MBS prices better by .250.

(Thanks to Brian L. for this oldie but goodie.)

The Will

His nurse, his wife, his daughter and two sons, are with him.

He asks for two witnesses to be present and a video recording made to document his last wishes. When all is ready, he begins to speak.

“My son, Gabe, I want you to take the Ocean Reef houses.”

“My daughter Sarah, you take the apartments between mile markers 100 and Tavernier.”

“My son, Larry, I want you to take the offices over in the Marathon Government Center.”

“Barbra, my dear wife, please take all the residential buildings on the bay side on Blackwater Sound.”

The nurse and witnesses are stunned as they did not realize his extensive holdings, and as Bernie slips away, the nurse says, “Mrs. Pender, your husband must have been such a hard-working man to have accumulated all this property!”

The wife replied, “He has a paper route!”

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, “Servicing: Don’t Underestimate Liquidity.” 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 2018 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.)