Nov. 4: Servicing, LO jobs; broker, pricing, workflow products; bank and vendor M&A rolls on

Who says there’s nothing new under the sun? Here’s a 14-year old’s clever cure for the blind spot in cars. Uber launched a new division known as Uber Money offering drivers and couriers access to a mobile bank account. Here’s a Dallas builder’s attempt at creating an economic stormproof house. At ritzy New York high-priced condos, old is new again: flooring in herringbone or chevron patterns, real marble surfaces, high-end European kitchen appliances, and 10 to 12 feet high ceilings. Homes can be new: The average person in the US will move about 11x in their lifetime (compared to about 4x for people living in European countries).

Employment

A top performing bank in the nation is seeking an executive to lead its mortgage servicing division. This senior role provides leadership and strategic direction for a Midwest-based Bank that is predominantly focused on mortgage banking. The position is responsible for overall loan administration and servicing operations, customer service, investor reporting, and loss prevention, for the bank’s nationwide servicing and sub-servicing business channels. The successful candidate has 10 plus years managing a Fannie Mae, Freddie Mac, Ginnie Mae and private investor servicing portfolio, and is results-oriented, an effective coach and enjoys working in a collaborative and thriving company. To confidentially inquire, contact Chrisman LLC’s Anjelica Nixt and please specify the opportunity.

Angel Oak Home Loans Consumer Direct division is expanding! “We deliver high quality leads from lead aggregators and offer sales support to quickly close loans. Speed to Lead is one of our efforts utilizing technology to distribute leads using one of the leading Lead Distribution Systems in the industry. Our online strategy has been effective in generating our own non-QM leads through Google AdWords and social media marketing of self-employed borrowers looking for bank statement loans. Our team and our clients love our one stop shop for products that include Agency, Government, Port Jumbo programs, Bank statement programs, Non- Prime programs, in-house processing and in-house underwriting. We consistently report month over month growth in our pipeline and closed loans. For inquiries, please contact Drew Church (704-650-8948).”

“The growth trajectory at Caliber Home Loans, Inc. continues this year! In October, Caliber funded over $7.8 billion, a new monthly record overall and a record in almost every channel of production. Caliber also reported a hefty 70.9% jump in production from the second to the third quarter, booking $19.9 billion in the third quarter, according to Inside Mortgage Finance. This is the highest rate of increase of any lender in the top 30! Our success can be directly attributed to our hard-working originators and employees who support our modern sales platform. Caliber’s products and lending technology are just some of the reasons our Loan Consultants can stand out in their competitive market and thrive. We’re looking for talented Loan Consultants who are ready to reach new levels of success. Visit Caliber online or email Brian Miller to learn more.

Loan Stream Mortgage announced that Thomas Shaw joins the company as its new Chief Marketing Officer (CMO). In this newly created role, Mr. Shaw joins the senior leadership team of the company and leads all wholesale and consumer marketing programs as Loan Stream continues to build its presence as a leader in mortgage originations. “Tom’s extensive financial services background and expertise in marketing, leadership, and strategy have been the foundation for growth and revenue generation for many organizations, and we are excited to have him join our team,” commented Rey Maninang, Chief Production Officer. “He is a strategic addition as our company continues to expand, hiring new Account Executives and building new operation centers across the nation.” Mr. Shaw has held senior marketing roles for Carrington, Shopzilla.com, CreditReport.com, H & R Block / Option One, Home123 and New Century Mortgage.

Lender products & services

 

Lead provider Full Beaker announced the launch of its new rate marketplace, TheMortgageReports.com, powered by Mortech’s pricing engine and product eligibility platform, Marksman. With 53 percent of buyers going online for resources to finance their new home, according to Zillow Group’s 2019 Consumer Housing Trends Report, quoting your rates online is a great way to reach potential customers. With this integration lenders are able to automatically quote instant, accurate mortgage offers to a variety of borrowers to make the most out of every lead that passes through their pipeline. By quoting rates online, lenders will see success through lead management and brand visibility by connecting their products and rates with more potential borrowers. For more information on marketplace quoting, call 1.855.298.9327 or contact Mortech Marketplace via email.

 

Stop losing loans because of rates! Learn the secrets to converting leads WITHOUT the lowest interest rate! Join Ron Vaimberg for the More Leads to Loans – How to Win the Rate Battle Tour coming to San Ramon, San Diego, and Phoenix in November. Ron has carved a new path in sharing the secrets to converting leads to loans in today’s highly competitive interest rate sensitive environment. In this brand-new program, Ron will take you step-by-step through his unmatched Ultimate Lead Conversion Process that reduces or eliminates interest rate objections. Learn the master skills to magnetically attract prospects to want to do business with you, even when your rates and fees are not the lowest. Learn More and Secure Your Spot Today: www.wintheratebattle.com. Save $60 with Promo Code: CHRISMAN

United Wholesale Mortgage is helping brokers in their network become social media savvy with their Brand 360 Marketing Calendar. UWM is upping the benefits of being in their broker network. Located in their all-new Brand 360 client retention and marketing portal is an exciting feature called the Marketing Calendar. It lets brokers plan and schedule social posts up to 30 days in advance. Use their pre-built posts, three options per day, or customize your own. Easily organize your calendar, view by month, week or day, and track what’s already been posted. They even provide the additional text that appears above your post — use what they suggest or write your own. Take control of your social media presence by signing up with UWM today.

 

The foundation of the current mortgage industry landscape requires impressive integrations and top-notch compliance. Both can be achieved through the critically important relationship between your LOS and doc prep platform. Find out how good it can be. Join IDS and Calyx on November 7 from 2-2:45 p.m. ET for a free webinar outlining the ways an LOS can facilitate workflows and provide peace of mind when integrated seamlessly with a comprehensive document preparation and data compliance engine. For more information, contact IDS at sales@idsdoc.com, or click here to register.

On Wednesday, November 13th, the Association of Independent Mortgage Experts (AIME) is hosting a one-day exclusive workshop for companies interested in sponsoring the organization in 2020. Join us at AIME’s headquarters in Philadelphia, PA for a full day of educational information about sponsor benefits, the chance to hear the positive impact that existing partners have experienced so far during industry speaker Q&A sessions, and the opportunity to strengthen your business-to-business relationships. It’s your turn to be a part of uniting the broker community and its wholesale partners to further their success within the channel. Become a sponsor today and have the support of AIME help expand your future business models and set your company up for success. Register now to learn how becoming a sponsor of AIME in 2020 can help your organization develop new relationships, as well as strengthen existing partnerships with more independent mortgage brokers.

Company changes

Legacy Texas Bank’s warehouse lending team announced that Legacy Texas Bank and Prosperity Bank have become one bank, Prosperity Bank. The completion of this bank merger (the second largest in Texas history) creates a +$32 billion institution in assets and ranks Prosperity as the second largest bank (by deposits) in Texas. The Warehouse Lending Division will continue to operate as it has for the past 12 years. The official rebranding of LegacyTexas is scheduled to be completed by mid-2020. Questions? Talk to your rep.

CIS Credit Solutions (“CIS”), a credit reporting agency providing tri-merge credit reports and related products and services to mortgage lenders, announced the acquisition of the Mortgage Solutions Business of Alliance 2020, Inc. Headquartered in Renton, Washington, Alliance 2020 is a service provider to mortgage originators, whose operations have now been integrated with CIS.

Bank news! In only the 4th bank failure of 2019, City National Bank of New Jersey was closed Friday by the Office of the Comptroller of the Currency, and, via the FDIC, entered into a purchase and assumption agreement with Industrial Bank in Washington, D.C. to assume all of the deposits of City National.

The Wall Street Journal reported that US Bancorp said it is eliminating the jobs of assistant branch manager and teller coordinator at all of its branches. The move will result in 2% layoffs at the company and the bank says it is due to changed customer behavior. The bank also said it plans to close up to 15% of its branches by the end of 2020.

A survey by the CSBS finds 86% of community banks say they have not received or seriously considered an acquisition offer in the last 12 months and 75% said they had not made an offer to a target institution in the past 12 months. Of note though, 25% said they had made an offer compared to the 20% level of the prior 2 years – a 25% increase.

Bank M&A is alive and well. Recently it was announced that in Missouri Academy Bank ($1.6B in assets) will acquire KCB Bank ($235mm. In New York, Flushing Bank ($6.9B) will acquire Empire National Bank ($1B) for $111.6mm in cash (50%) and stock (50%) or 1.41x tangible book, and Community Bank ($11.6B) will acquire Steuben Trust Co ($577mm) for $106.8mm in cash and stock or 1.67x tangible book. FirstBank Puerto Rico ($12.5B) will acquire Banco Santander Puerto Rico ($6.2B) for about $1.1B ($425mm plus $638mm of Banco Santander PRs excess capital at par. In Tennessee Reliant Bank ($1.8B) will acquire First Advantage Bank ($733mm) for $123.4mm in cash (10%) and stock (90%) or 1.52x tangible book. Rhode Island’s Centreville Bank ($1.3B) will acquire Putnam Bank ($538mm, CT) for about $115.5mm in cash (100%) or about 1.45x tangible book. Country Club Bank ($1.4B, MO) will acquire Bank of the Prairie ($143mm, KS). In California Bank of Southern California ($767mm) will acquire Calwest Bank ($234mm) for $32mm in cash (100%).

Capital markets

Friday’s October jobs report was significant because it helped to alleviate fears of a widespread slowdown in hiring especially considering the headwinds of the GM strike and a large reduction in temporary workers related to the 2020 Census. The conventional wisdom is that a slowdown in hiring would lead to a slowdown consumer spending and therefore negatively impact GDP.

Digging a little deeper into the employment report, the unemployment rate ticked up slightly to 3.6 percent as more workers entered the workforce. Personal consumption increased at a 2.9 percent annualized rate in the third quarter, according to the advance GDP estimate. Despite all the news about trade uncertainty, slowing business investment and slowing manufacturing output, the U.S. consumer continues to spend. Speaking of manufacturing, the ISM manufacturing index was below 50 for the third consecutive month. As a result of the uncertainty, the Fed decreased the Fed funds rate by 25 basis points, however in the post-meeting press conference Fed Chairman Powell indicated that policy makers were likely to pause on any further changes to monetary policy.

The employment and ISM data (signaling less contractionary growth than feared) bolstered growth outlook sentiment to close last week, pushing Treasury yields up, including the 10-year +4 bps to 1.73 percent. The positive jobs numbers are that much more impressive considering the figures reflected the impact of the six-week strike by nearly 50,000 General Motors workers, the longest nationwide walkout since 1970.

 

U.S. stocks loved October’s jobs data, which President Donald Trump described as a “blowout.” They seemed to bolster the Fed’s case that the economy is in reasonable shape. Fed Vice Chair Clarida echoed Chairman Powell’s statements from earlier in the week by saying “the current stance of monetary policy is likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook.” At this time it appears another cut will not happen unless there were material changes to the economic outlook. The Fed is hoping that this third cut of the year to interest rates will help the U.S. economy stay safely at cruising altitude.

This week will receive more clarity from the Fed on last week’s cut, as eight of 12 Fed presidents are currently scheduled to speak, including San Francisco Fed President Daly later today. Also, today will see the release of ISM New York Business Conditions Index for October, the October Employment Trends Index, and September factory orders.

 

Tomorrow, in addition to the latest monetary decision from the RBA and a NY FedTrade operation, markets will receive the Trade Balance for September, the ISM Non-Manufacturing Index for October, and JOLTS – Job Openings for September. While the midweek session’s only important economic release outside of the usual MBA applications is Q3 Productivity and Unit Labor Costs, October agency prepayments will be released after the close. Thursday brings the latest rate decision from the Bank of England, before the week closes with Preliminary University of Michigan Consumer Sentiment for November and Wholesale Inventories for September. We begin today with Agency MBS prices worse slightly and the 10-year yielding 1.75%.

Thank you to CM who sent, “Right before I die, I’m going to swallow a bag of popcorn kernels. My cremation is going to be epic.”

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

Rob

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