Mortgage loan officers often point out that borrowers will complain about every fee or price adjustment, yet think nothing of paying $6 every day for a Starbucks latte, $4 for a bottle of water that is basically free out of the tap, or using an ATM machine. (The fee at an American ATM machine has hit an average $4.72 for a machine that is not owned by your bank, the highest ever measured by Bankrate.) People are still willing to spend, and the U.S. is a long way away from a recession (two quarters of negative GDP). The consumer, the main driver of the economy, is solid. On the plus side we have domestic GDP, the labor market, wage growth, consumer spending, and consumer sentiment are all good. Where are the uncertainties? Business confidence, manufacturing, political uncertainty, a flat or inverted yield curve, the ongoing trade war, tightening financial conditions, and muted inflation are the focus of those who think we’re heading for a recession. More about rates in the Capital Markets section below.
“Nations Lending, a privately-owned mortgage lender headquartered in Independence, Ohio, has announced the addition of Jim Collier as Executive Vice President of Operations. As a member of our company’s Leadership Team, Collier will act as the senior lead to our retail operations. Prior to joining Nations Lending, Collier was responsible for leading Operations at Guaranteed Rate Affinity, where he executed on a heavily focused purchase business, and brings with him over 25 years of Operational mortgage experience. “Jim is a great fit culturally to our Leadership Team,” said Nations Lending CEO Jeremy Sopko. “We feel Jim’s experience and expertise will help guide our Operations Teams to the next level we seek.” Nations Lending is a well-established, Agency/Government Servicer, licensed in 48 states. We are proud to service 100% of the Agency loans we originate. For an opportunity to join our growing organization, please visit the company’s website.”
“Attention all Hawai’i residents! LoanStream mortgage is expanding and heading to the Islands. We are looking for an NMLS licensed individual to serve as our Qualified Individual. NMLS license must be up to date and in good standing. Acceptable applicants are licensed Account Executives, licensed Loan Officers or licensed individuals with employment in another field. Applicant must have a physical residence in Hawai’i. With our broad array of prime and non-prime products, LSM is quickly becoming the lender of choice. Here we come Hawai’i! Interested candidates should send resumes to firstname.lastname@example.org and/or apply online: https://loanstreamwholesale.com/careers/.”
Lender products & services
Citibank, N.A. remains committed to growing its Correspondent Channel through a client centric approach. Citi’s team of industry professionals engage our sellers to unlock execution opportunities and develop lender specific ways to optimize loan delivery. This tailored approach has been a key factor in fueling Citi Correspondent’s growth over the past year, and we continue to strategically add new Correspondent Sellers for delegated and non-delegated delivery. Be a part of the growth story and find out how Citi can help you! To learn more, we welcome you to schedule a time to discuss our offering at the MBA Conference in Austin, TX. Contact our National Client Service team for more information at 1-800-967-2205. For new seller consideration, please complete Citi’s Prospective Mortgage Correspondent Questionnaire.
Start Your Path to Independence. Don’t miss our Webinar on October 17th at 2 p.m. EST. If you’re interested in pursuing a more flexible schedule and better compensation as an independent mortgage broker, sign up for our Webinar this Thursday at BeAMortgageBroker.com. Join our panel of experts as they provide valuable information on the key differences between working for a retail direct lender and working in wholesale, the timeline to transition to wholesale and the steps needed to become or join an independent mortgage broker. Or call 1-800-229-6342 for a completely confidential consultation.
Hey Loan Officers! Are you looking for ways to improve your industry knowledge? Do you want to continue cultivating your credibility with your clients and realtor partners? Then have we got the tool for you! TheRuleTool is made with YOU in mind, designed to make your life easier by providing agency rules and guidelines in a simplified, easy-to-use format. Created and maintained by experts, TheRuleTool helps you address any issue that comes your way. No more panicking over last-minute questions, TheRuleTool gives you the answers you need so you can get those loans approved! Email email@example.com
Just announced at AIME Fuse: UWM’s BRAND 360. Launching October 23rd, Brand 360 will make it easier for clients in their network to market to borrowers, increase retention and promote their businesses. It’s packed with features that alert you when it’s time to reconnect with past clients (or opt in to have UWM do it for you automatically), let you create customized marketing materials, and select and schedule social media posts for up to 30 days. You’ll also be able to use their built-in analytics to measure your marketing’s effectiveness. Contact UWM if you’re interested in joining its network.
“It’s tough to understand your costs per individual loan. In order to get it you need to combine Secondary data, like stips and tolerance cures, Sales data from your LOS, HR data, like pay scales and hours worked, Finance Data, like employee & marketing costs and more! RM Analyze, a lender-focused BI Solution from Richey May Technology Solutions, can connect to all your crucial systems to bring you actionable insights to help you grow intelligently. Our tool + consultative implementation approach will get you started with impactful reports today and ongoing support from experts as your business grows and changes. Contact us for a demo today.”
FEMA: Director of all things disaster
Did you know that since 1989 Americans voluntarily sold more than 43,000 properties in high-risk, flood-prone areas to the government, including FEMA, for demolishing?
What about a community bank financing the construction of a mixed-use property that is located in a flood zone with the borrower asking the lender to accept a private flood insurance policy with a coinsurance clause and a coinsurance deductible? Does the bank have any permission/obligation to accept such a policy? And how is maximum amount of coverage available under the NFIP determined for a mixed-use property?
Nonresidential buildings include mixed use buildings with less than 75% residential square footage, which for the purpose of flood insurance under the NFIP, the maximum coverage available for Other Non-Residential is $500,000. The bank is under no obligation to accept a private flood insurance policy containing a coinsurance clause, but may accept provided the policy meets certain criteria which include the provision of sufficient protection the loan, as the bank must require flood insurance in an amount at least equal to the lesser of the outstanding principal balance of the loan or the maximum coverage available for the particular type of property.
The regulations have been revised such that the bank must accept private flood insurance in satisfaction of the requirement for flood insurance if the policy meets certain requirements. A private flood insurance policy which contains a coinsurance clause does not equate to a policy issued under the NFIP. The coinsurance clause narrows the coverage otherwise provided under an SFIP, and effectively is a clause not applicable in an SFIP policy. Under a policy with a coinsurance clause, the insured must carry insurance equal to at least a certain percentage of the property’s actual cash value. This is done to ensure that the property is not underinsured when the replacement cost loss settlement option is purchased.
As Mother Nature continually unleashes an array of natural disasters throughout the states; the aftermath of flooding in unforgiving to say the least. According to a new NRDC report, “Going Under: Long Wait Times for Post-Flood Buyouts Leave Homeowners Underwater”; the existing FEMA voluntary buyout programs are struggling to meet current needs.
Regarding Chambers, Harris, Jefferson, Liberty, Montgomery and Orange counties in Texas declared by FEMA as Major Disaster Areas for the incident period of 9/17/19-9/23/19;
Sun West Mortgage will require an interior and exterior inspection prior-to-funding or purchase of any loans with subject properties that are determined to be at risk. Specifically, for loans submitted with an appraisal dated on or before the incident period end date or for those submitted without an appraisal. The inspection must verify that the property is sound, habitable and in the same condition as when it was appraised.
An update has been made to the Bayview | Lakeview Loan Servicing Disaster File either declaring a new disaster or updating an existing disaster. Bayview | Lakeview issued a disaster update declaring Hyde County in North Carolina as a disaster area. FEMA has not yet declared a disaster. Loans within Hyde County will have to adhere to the Disaster Guidelines as posted in the Disaster Guide. All other suspensions have been lifted for all counties in North Carolina. Lakeview will continue to monitor the impacted areas and provide updates as necessary.
Mortgage Solutions Financial issued disaster alert Announcement 24-19C regarding the Texas Tropical Storm.
Plaza Home Mortgage® has now resumed funding in all areas that were in the potential impact zone of Hurricane Dorian. At this time FEMA has not made any declarations of disaster areas, but Plaza will continue to monitor for any future announcements.
loanDepot Wholesale monitored the impact of Hurricane Dorian along the Eastern seaboard and continued to provide updates and guidance as new information becomes available. At that time the following actions were suspended in the counties below: Document Draws, Loan Signing, Loan Funding and Wire Requests. Regarding North Carolina, all previous restrictions for Brunswick, Carteret, Currituck, and New Hanover have been removed. Counties still impacted include Dare and Hyde. All previous restrictions for Florida, Georgia and South Carolina have been removed.
U.S. Bank Home Mortgage has updated the U.S. Bank Home Mortgage National Flood Insurance guidelines in the Correspondent Seller and HFA Division Lending Guides.
Despite unemployment being at a 50-year low in September, negative perceptions about current US economic conditions persist. Growth is slowing, but we are still experiencing the longest continued period of economic growth in history. Consumer prices for September were unchanged from August and up 1.7 percent year-over-year. Core CPI was up a mere 0.1 percent for the month but was up 2.4 percent for the year. Producer prices declined 0.3 percent due to falling energy prices. Core PPI was unchanged for the month and up 1.7 percent for the year. Small business optimism declined in September, but remains strong as small business continue to expand and hire. Minutes from the last Fed meeting show an increasingly divided Fed. Additionally, the Fed may look to moderately increase its balance sheet to avoid the liquidity concerns from a couple weeks ago in the short-term lending market, however Fed Chairman Powell stopped short of calling a new round of quantitative easing. The minutes also showed concern among Fed committee members that the market’s expectations of the future course of the fed funds rate may be out of sync with members’ expectations. On that note, the market has priced in the likelihood of a 25-basis point rate following the October meeting of the FOMC at around 75 percent.
Treasuries sold off to close last week, including the 10-year yield closing Friday +9 bps to 1.75 percent (the highest level in three weeks) as the U.S. and China reached a partial trade deal that could pave the way for a more detailed agreement. The risk-on trade also coincided with reports of the UK and EU making progress toward a proposal that avoids a no-deal Brexit. Other news of note included the Federal Reserve announcing a plan to buy $60 billion a month of T-bills at least through Q2 of 2020 as part of an effort to help with bank reserve management. And the Desk of the NY Fed announced that repo operations will continue through January of 2020. Additionally, the NY Fed announced it planned to buy a maximum of $7.1 billion in agency MBS from October 15 through November 14, based on September paydowns.
This holiday-shortened week kicks off with the NY Fed Business Conditions Index for October and Redbook same store sales for the week ending October 12. The day also includes three speakers ahead of Wednesday’s Fed Beige Book, with St. Louis’ Bullard, Atlanta’s Bostic, and San Francisco’s Daly all set to make remarks. In addition to the Beige Book, Wednesday brings Retail Sales for September. Thursday sees both Housing Starts and Building Permits for September, and Industrial Production and Capacity Utilization for September, before the week closes with Leading Indicators for September. The bond markets are closed today.
If the person who named Walkie Talkies named everything (part 1 of 3)
Stamps = Lickie Stickie
Defibrillators = Hearty Starty
Bumble bees = Fuzzy Buzzy
Pregnancy test = Maybe Baby
Bra =Breastie Nestie
Fork= Stabby Grabby
Socks = Feetie Heatie
Hippo = Floatie Bloatie
Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “How Productive is Your Origination Team?” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
(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.)