Daily Mortgage News – Daily Mortgage News & Commentary

A running joke with loan officers is how real estate agents always seem to find their high school prom photos for their business cards and “for sale” signs. Thanks to Shelagh S. for sending along this story about how real estate for sale signs are changing.

Jobs, promotions, and business opportunities

A national title company is looking for lenders that are interested in partnering to open a title and settlement company. The ideal lender must be closing over 50 units a month. “Please email us with information on your company.”

Galton Funding continues to grow its non-agency conduit and is pleased to welcome Brad Young to its Correspondent Business Development team. Brad, located in Dallas, will serve correspondent lenders headquartered in Texas and the surrounding states. Galton continues to build its nationwide Correspondent Business Development team and its Minneapolis, MN based Credit/Ops team. Interested parties should email careers@galtonfunding.com. Galton Funding is focused on expanded prime borrowers offering both 1st and 2nd liens with innovative jumbo and non-agency product alternatives. Highlights include LTV’s to 95% without MI, cash out to 95% LTV, aggressively priced investor loans, and 40 year I/O. Most recently, Galton added a Streamlined First Lien Program that utilizes FNMA DU eligibility (up to $2.5MM) to qualify borrowers for its jumbo/non-agency program guidelines. If you will be in DC attending the MBA Annual Convention and wish to meet and learn more about Galton programs, please contact a Galton Business Development representative to set up time.

In hiring news, Bay Equity Home Loans has hired Renee Blackwell-Hildebrand as Senior Vice President of Strategic Development. Renee has an extensive background in growing production including expertise in affinity relationships and joint ventures. Bay Equity is expanding its retail footprint and is looking to leverage its fulfillment expertise with strategic partners. Please reach out to Renee if interested in a conversation about Bay Equity.

For a job in the financial services sector, due to continued growth, Inheritance Funding Company, Inc. is looking to hire an additional Funding Officer for its San Francisco Financial District home office. Inheritance Funding Company, Inc., and I am on the board of directors, has provided heirs waiting for their inheritance distribution with capital advances for nearly 25 years. “With nearly $200M advanced to heirs in all 50 states, IFC is the oldest and largest purveyor of inheritance advances in the country. With continued growth in this lucrative sector, IFC is looking to hire the right talent to catch up with increased demand. Inheritance or probate experience is neither expected nor required. The right candidate will have a blend of sales expertise, analytical reasoning, and strong client communication skills. Competitive base salary and uncapped incentive pay for strong performers.” Contact Eric Holdsworth, VP of Marketing.

Mega Capital Funding, known for aggressively-priced conventional, jumbo, FHA, VA & USDA, MEGA also offers a suite of ATR products such as 40yr. Fixed, Interest Only to 90% with no MI, No Employment non-owner, and a recently enhanced SIMPLY STATED Jumbo @ 70% LTV to $1mm (CA only for Simply Stated). EVP Greg Handy and Regional V.P. Keith Stubbs are in need of some sharp Account Executives to cover open territories in Northern Ca, Texas, Florida, Colorado, Washington and Oregon. (More below.)

Lender products & services

Calling all mortgage lenders: Are you worried about miserable margins? Want to ‘variablize’ your costs to align with unpredictable mortgage volumes? String Real Estate Information Services can help you – immediately. For over 15 years, String has fanatically focused on mortgage lender profitability. By offloading back-office work to String, clients save up to 70%. Even in today’s world of penurious profits, every single String client is profitable. That’s why 70% of our business comes from current client referrals. Post-closing review, trailing documents, and pre-underwriting are just three of the many solutions that we can expertly complete for you. Meet with us at the MBA Annual Conference in our hometown of Washington, DC and we can strategize about the best ways to improve your margins, shorten your cycle times, and increase your happiness. (That last one can’t be quantified.) To schedule a meeting, email Karen Schluckebier or use our Calendly Scheduling Page.

Momentifi CEO Gibran Nicholas is excited to release the 2019 Certified Mortgage Planning Specialist (CMPS) curriculum. CMPS is designed to enhance your digital mortgage process by empowering your MLO’s to be highly-valued trusted advisors. Plus, they become accredited to teach CE classes to real estate agents, CPAs and financial advisors in their local market. “Retail loan originators are losing 70%+ of their sales leads to the competition,” says Gibran. “We are focused on helping LO’s modernize their scripting and sales skills so they can win more deals in today’s digital environment. Even a 3% improvement in your team’s lead conversion rate could produce an extra 300 loans for every 10,000 leads your team generates!” Click here to view a 3-minute video. Click here to email Gibran directly or schedule a discussion with him at the MBA convention next week.

While shrinking margins have other wholesalers scrambling to survive, Mega Capital Funding continues expanding into new states including VA, MD, GA, DC, IL & NJ. Best known for aggressively-priced conventional, jumbo, FHA, VA & USDA, MEGA also offers a suite of ATR products such as 40yr. Fixed, Interest Only to 90% with no MI, No Employment non-owner, and a recently enhanced SIMPLY STATED Jumbo @ 70% LTV to $1mm (CA only for Simply Stated). EVP Greg Handy and Regional V.P. Keith Stubbs are looking to add talented broker partners.

“Moving Forward In Reverse Has Never Been Easier.” “Faced with lower refinance volumes and rising interest rates, many companies are looking for new product options for their customers. A reverse mortgage is the only mortgage product designed exclusively for the senior segment which has amassed over $6 trillion in home equity. When a cash-out refinance or home equity loan does not fit a senior customer’s needs, a reverse mortgage may be a great option. Mortgage companies, banks, credit unions, and servicers can monetize more of their customer portfolio and increase point-of sales originations by adding reverse mortgages to their product mix, and Liberty Home Equity Solutions, Inc. is pleased to introduce the “SNAPP Processing Program” which only requires originators to take a customer application with a HUD Counseling Certificate. Liberty will do the rest including processing, underwriting, closing and funding the loan with faster cycle times than a traditional forward mortgage (average cycle times of 32 days). To learn more, connect with Liberty at the MBA Conference Oct 14-17 or contact Garrett Kolb, VP-Business Development.

Layoffs of Unusual Size (LOUS)

Wells Fargo announced it was laying off 26,000 bank-wide a few weeks ago. (Recall that Wells laid off 650 mortgage employees in August.) Now comes news that JPMorgan Chase is laying off about 400 employees in its consumer mortgage banking division (out of 34,000 mortgage banking employees). Watch out Jacksonville, FL, Columbus, OH, Phoenix, and Cleveland. Fewer servicing personnel are needed as JPMorgan’s delinquencies have fallen, dropping about 22% in August from the year prior, according to spokeswoman Trish Wexler. She noted that JPMorgan’s consumer home purchase application volume rose year-over-year in August and September.

Lender events & training

Industry professionals will gather to discuss the issues around Lending in today’s environment at the upcoming Mortgage Leadership Roundtable on November 8^th, starting at 9:30 and ending at 4:00 pm in Tempe, Arizona. The free event is being sponsored by National MI, a subsidiary of NMI Holdings, Inc., a California-based private mortgage insurer, along with Freddie Mac and Capital Markets Cooperative. Guest Speakers include Sam Luna, Freddie Mac, Rex Lau, CMC, Dana Wasson Accenture, Kristin Messerli, Cultural Outreach Solutions, Fletcher Wilcox, Grand Canyon Title Agency, and Paul Imura & Gene O’Bryan with Home 123. The event is being held at THE YARD located at 149 S. Farmers Ave., Tempe. To register for the event, please contact Nancy Early. The event will host lunch and a reception to follow the day’s activities.

With Q4 just on the horizon, mortgage professionals are feeling the pressure to close the year out strong after battling margin compression and rising loan origination costs in 2018. Tomorrow, October 9th at 12:30pm MST, Maxwell—the industry leading digital mortgage provider— will present a webinar, “The Mortgage Executive Q4 Outlook,” featuring a panel of seasoned mortgage industry executives sharing their own focus areas for Q4 and discussing how mortgage companies can navigate market challenges. Panelists include Maureen Sammon, CEO, Berkshire Hathaway’s HomeServices Lending, Brad Phillips, VP of Sales, American Mortgage Service Company, and Rich Swerbinksy, COO, The Mortgage Collaborative. This is a must-attend webinar for mortgage professionals and executives looking to see a profitable conclusion to 2018.

Offering a bid tape AOT loan sale delivery option has rapidly become a priority for leading correspondent investors. Courtesy of MCT, the benefits and challenges of these new bid tape AOT executions will be presented in a complimentary industry webinar hosted by Phil Rasori, COO and Head Trader, on Thursday, October 11, at 11AM PT. A recording will also be sent to all registrants.

Attend a live webinar session on October 11th with Mark Reeve, VP, Reverse Mortgage Division at Plaza, and he’ll tell you everything you need to know about this program. You’ll learn about Plaza’s reverse loan products, the origination process, compensation, recent industry changes, and more.

AllRegs customers can have a quick “sneak peek” of the new AllRegs Online if they are attending the MBA Annual at the Grand Hyatt. “The new product is so exciting, I can’t wait to share it with our loyal customers at the Grand Hyatt.” AllRegs is used by thousands of mortgage professionals every day to reference Agency and correspondent investor guidelines, products, and forms and to research state and federal compliance statutes and regulations. Ellie has been hard at work to give this industry workhorse a face lift and new features that will help lenders save time and ensure loan quality, eligibility and compliance.

On Tuesday, October 16^th MWF is offering an opportunity to learn about Fannie Mae’s affordable housing solution that offers as little as 3% down payment and lower MI costs. Join Tonya Todd, SVP Affordable Housing along with special Guests Gale Bryce, Senior Business Manager, and Paul Eberwein, Selling Guide Support Lead with Fannie Mae.

Don’t miss the opportunity to register for The New Needs Of The 2018 First-Time Homebuyer 60-minute webcast on October 18^th. Elisa Vitalo of Edelman Intelligence will share key takeaways from a recent study Essent commissioned on the 2018 first-time homebuyer.

Learn how HomeReady® mortgage can help more of your low- to moderate-income borrowers become homeowners with as little as 3% down. Join Fannie Mae on October 18 at 2PM ET for a live webinar geared toward loan officers (but open to all lenders and housing professionals). This webinar will demonstrate how HomeReady features can help you serve more borrowers and grow your business and discuss flexibilities specific to HomeReady and has a Q&A.

On October 24^th attorneys with the Offit Kurman Financial Institutions Regulatory practice group will discuss aggressive but compliant options for implementing cost cutting and revenue production strategies in its webinar: Responding to a Changing Market.

Register for MBA’s Whole Loan Trading Workshop, November 7-8 in Houston to get expert insights on the latest trends in the markets for scratch and dent, NPL, and RPL loans.

Capital markets

The bond markets are closed today, but it is good for originators to have a general idea about what the economy is doing and why rates have moved higher. The bond market continued its selloff, and 10-year Treasury yields climbed higher, last week as strong economic data once again remained in focus. The ISM manufacturing survey eased slightly in September to a level that indicates more manufacturers have a positive view of business conditions than negative. The ISM non-manufacturing index rose in September with both the business and employment components increasing.

Wednesday saw the ADP Employment Report show 230,000 jobs gained in September and raised expectations for a strong nonfarm payroll print on Friday. Friday’s official employment numbers fell short of expectations with only 134,000 new jobs added in September, but that number was influence by the impact of Hurricane Florence. (Last year’s storms saw similar effects to the initial payrolls figures that were later revised upwards so the market likely looked beyond the headline number.) The unemployment rate, which is less impacted by hurricanes, fell to 3.7 percent; a number not seen since 1969. As you may recall, the weekly unemployment insurance claims are also at levels not seen since the late 1960s. Nothing from last week’s data should change any expectations that the Fed will continue to gradually increase rates as both employment and inflation are within their targets.

Instead of a joke today, a short note about Jay Kislak who passed away last week at age 96. Our industry is aging and I can’t make note of everyone who leaves us, but Jay and J.I. Kislak Mortgage, with their sterling reputation, were my pipeline hedging client in the late 1980’s through the mid-90s. J. I. Kislak was a major force in FHA and bond lending from Miami Lakes, Florida, especially in the 1990s. I was fortunate that he gave me a private tour of the museum in his office, filled with maps, autographs, and other priceless documents from the early days of Florida, and throughout much of his life was a huge benefactor to charities and educational organizations. He’ll be missed.

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, “The Rise of the Credit Unions.” 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.)

Maybe I read somewhere that the average age of a loan officer is 76. Maybe not. (Actually, my visits with companies informally indicate that overall ages seem to be dropping as I see “new blood” entering the arena, often at lower comp plans with greater upside to compete with companies with very low basis points.) As Hurricane Michael approaches, I am reminded that there are plenty of older LOs, and people, in Florida (“God’s waiting room”) and other locales. There is actually a group that ranks active adult communities not only in Florida but around the U.S. based on location, residential types, amenities, price range, and lifestyle opportunities. (Who doesn’t want to live someplace that’s active? Ever seen a “sedate adult community” advertised?)

Lender products and services

The MBA is projecting $1.64 trillion in originations for 2019. IMBs continue to face challenges with tightening margins and have a renewed focus on managing liquidity. On October 15th during MBA’s Annual Convention, join in with a panel of experts including Tom Millon, CEO of Capital Markets Cooperative, who will provide practical advice on Managing and Modeling Your Liquidity Position. Topics will include balancing cash holdings vs warehouse lines, retain/release decisions, current MSR trends and more. This informative session will be extremely helpful as IMBs are formulating their 2019 plans.

Cultural Outreach has announced its speaking engagement and webinar topic list for 2019. The 100%-woman owned company provides marketing, online and on-site training and strategy to companies looking to reach young and diverse consumer markets. Cultural Outreach believes the more companies can build an authentic connection with consumers, the stronger profits will be in creating long-lasting and loyal relationships. Speaking engagements and webinars offer knowledge, strategies and tools diving beyond the surface of trendy buzzwords and identifying real solutions to implement and maintain. Common topics for Cultural Outreach trainings include millennial marketing, cross-cultural communication, reaching diverse markets and social media. Founder/CEO Kristin Messerli, has spoken at more than 100 conferences across the country and will be speaking at the upcoming mPower and mPact events at the national MBA conference in DC. To reserve your speaker or learn more about online training, contact Cultural Outreach at info@culturaloutreach.com or call direct to 918-324-6271.

Break down silos between your sales and marketing organizations. Better yet – ensure they are tightly integrated. With massive amounts of data to manage and growing consumer expectations about how they interact with your brand, you need a marketing technology platform that effectively supports your marketing and growth goals. The Total Expert Marketing Operating System (MOS) is the foundation empowering banks and lenders to deliver their value proposition messaging to the market. Power your sales and marketing organizations while ensuring you stay compliant with complex regulations and corporate brand standards. Centralize the deployment of multi-channel marketing, utilize intelligence-driven automation to power personalized marketing and harness data from a variety of sources, fueling your knowledge of how customers and prospects interact with your marketing. Learn more about the Total Expert MOS – the foundation for a modern sales and marketing tech stack for banks and mortgage lenders.

“Did you know that a shocking 62% of Millennials will switch brands after one bad experience? And, it’s worse for lending. This new white paper from TMS, a top 15 correspondent lender, uncovers the true impact of bad customer service on your company. Let’s just say you need to make sure your customers are being taken care of when you sell to a Correspondent Investor. If not, you could be repeatedly throwing away thousands of dollars in future revenue by selling your loans to make a quick buck. Download the entire white paper for free here.”

PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), is a team of talented individuals committed to creating a positive impact for all our customers that we serve. Warehouse facilities available from $5 million to $50 million to fit customers of all different sizes. Provide financing to our customers with service that exceed expectations with Low to No Doc Express Funding that reduces time and increases efficiency of the funding process. Accepting renovation programs and products like FNMA HomeStyle, FHA 203K Full, Limited and USDA Rural Housing, with minimum limitations. Providing ways to reduce warehouse lending costs with Tiered Utilization and Deposit Incentive Pricing, that rewards our customers for utilizing their line and taking advantages of the Treasury Management services we offer. Extended dwell and aging times for all State Housing Bond, FNMA Home Ready, FHLMC Home Possible and USDA programs and products at the same rate and advance as all other loans funded. If you are interested in learning more about

PlainsCapital Bank National Warehouse Lending please contact Deric Barnett, EVP National Warehouse Lending.

Moves & promotions

“By the end of 2018” came fast as Fannie Mae announced that it has appointed Hugh Frater as Interim CEO. “Frater’s appointment will be effective on October 16, 2018, subject to final FHFA approval. He will succeed Tim Mayopoulos, who in July announced his intention to depart Fannie by the end of 2018 but will leave the company on October 15.” Congrats to Hugh!

American Financial Resources, Inc. (AFR) announced two key executive promotions. Laura Brandao has been promoted to President and Bill Packer is now COO of the NJ-based leading niche lender.

Appraisal and valuation trends

Investors are particularly interested in making sure they’re not lending $300,000 on a house worth $250,000 – we don’t need to go through that again. There is plenty of news directed at the appraisal industry, but what should lenders be aware of? The median price per square foot has risen in the nation’s leading new-home markets, but the drivers behind that growth vary. Here’s a good summary of what drives the price per square foot.

Here’s the new app (Upraze) that allows homeowners to appraise their home. As Jeremy Potter points out, “Mortgage and real estate professionals scoffed or mocked this app recently, but the digital/automation movement is on. How will your business respond to tech advancements like this?”

Rich H. sent along a Moody’s piece about alternatives to appraisals. And several months ago the Wall Street Journal pointed out a trend of Wall Street relying on drive-by appraisals, aka BPOs.

There are move Appraisal Management Companies (AMCs) than there are countries in the United Nations. The last time Joan Trice (Clearbox) was asked about it, she believed that there are 539 AMCs of which 485 have websites! The Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 requires that states enact comprehensive AMC oversight and registration programs. More than forty states have enacted comprehensive state AMC laws with the belief that state AMC legislation promotes public trust and consumer protection and establishes oversight and enforcement. The states had until August 8th to enact an Appraisal Management Company (“AMCs”) registration & oversight regime. If a state fails to enact such a regime, AMCs are prohibited from providing services on Federally Regulated Transactions (i.e. non-conforming loans).

What is the appraisal industry’s take on this? Michael Simmons, Co-President of AXIS AMC, wrote a note to me saying, “Rob – Not unlike what takes place in the lending realm, late fall spawns some of the biggest and most important appraisal industry events of the year. In the last three weeks I’ve attended three: the Appraisal Summit, the Collateral Risk Network, and Valuation Expo. All were distinctive, but some consistent themes emerged.

“Foremost among the presenters at each venue were the GSEs. Over the past two years, Fannie and Freddie have adopted a higher level of visibility to match the dynamic changes rippling through our industry. Within the last month Fannie re-named the PIW (Property Inspection Waiver) for what it really is: an Appraisal Waiver. At Val Expo during a panel discussion, Fannie revealed that 33% of all loan submissions were eligible for an Appraisal Waiver but, interestingly, only 8% were accepted. A big reason was borrowers wanted to know what their property was worth – and an appraisal provided that while a waiver didn’t.

“Meanwhile, both GSEs have expanded the criteria for eligibility of Appraisal Waivers. Part of that is at the behest of lenders who want to compress time and be insured against a buyback due to any collateral issues, but I think there’s another reason. I think it’s about capture rate. When an Appraisal Waiver is issued (and accepted), there’s only one place that loan can go – to the GSE that granted it. The lender then loses an opportunity to sell that loan to a better priced investor since that waiver is neither transferrable nor acceptable as an appraisal.

“But there were other notable topics. One centered around the growing use and demand for Gap Products whose application are evolving from the stratification of risk in our markets. They include various iterations of Desktop Appraisals, other alternative valuation products, e-Valuations and AVM’s with enhanced inspections. Some of these products do not qualify as an appraisal nor require an appraiser. This becomes problematical at some point because the data and information – and the knowledge that appraisers provide – powers the very products that are replacing appraisals.

“But the real elephant in the room is bifurcation. It involves the outsourcing of the inspection piece to someone other than the appraiser. The concept has been around for a long time in the form of an appraisal trainee but fell into decline for both good and bad (and wrong) reasons. Now the term as the GSEs are defining it could include any third-party inspector, from appraisal trainees to real estate agents to property inspectors … to your neighbor’s kid once he (or she) has finished cutting the lawn. Even to a homeowner doing their own inspection!

“First, let me say that I believe much of this is inexorable. Our industry needs to better shape our responses – and products – to fit a digital world. What we don’t need to do is abandon the standards that underlie how collateral is gathered and developed. Here at AXIS we were instrumental in creating a program – The START Program – that established real standards for the inspection process. We designed it for trainees (and their Supervising Appraisers) to assist and encourage a new generation of appraisers to enter the profession. The added benefits will help appraisers improve their efficiency and delivery speed (and profitability) – and better match the needs and requirements of today’s lending models without sacrificing quality.

“Change brings opportunity. Our challenge in the collateral space requires us to build solutions that match market needs. That includes using all the tools available while protecting our lending partners, our appraisers, their customers and our communities. We accept the challenge.”

Lots more appraisal news from lenders and investors tomorrow.

Capital markets

Offering a bid tape AOT loan sale execution has rapidly become a priority for leading correspondent investors, with AmeriHome and PennyMac joining Wells Fargo among those providing the programs. This execution combines the granularity of price available via bid tape with the cash benefits of assigning the trade, which have historically been mutually exclusive. MCT has announced automation of the tri-party agreements required for these newly launched executions and is proud to be developing technology and process improvements through its Bid Auction Manager (BAM) whole loan trading platform. For example, Penny Mac’s bid-tape AOT pilot program has been released to MCT clients. Learn about the benefits and challenges of bid tape AOT delivery in a complimentary industry webinar hosted by Phil Rasori, MCT’s COO and Head Trader, on Thursday, October 11, at 11AM Pacific.

With bond markets closed yesterday, rates took a respite from their meteoric rise last week. After toying around towards the 3% level for weeks, the U.S. 10-year closed the week at 3.23%. Well that may not be the best news for originators with a large percentage of refinance business, we did have some positive news on to close the week, including the unemployment Rate (3.7%) falling to its lowest level since 1969. Despite the U.S. market closure, international markets were open for business yesterday, and deepening U.S.-China tensions are causing investors to shift money around the globe. Investors sold a net $1.4 billion of domestic Chinese shares as the U.S. Treasury department weighs whether to label China a currency manipulator. Major headlines this week include the IMF and World Bank meetings from Bali and the start of earnings reports for U.S. banks.

The NFIB Small Business Optimism Index for September kicked off today’s calendar, down .9 to 107.9. We have also already had some Fed speak with Dallas Fed President Kaplan delivering remarks before Chicago’s Evans opines later this morning. Philadelphia’s Harker and NY’s Williams make appearances later in the day. Back to economic releases, the September Employment Trends Index is due out at 8AM MT.

Tomorrow brings the weekly MBA Mortgage Applications Index (prior 0.0%), September PPI figures, and August Wholesale Inventories before Thursday’s CPI and jobless claims readings. The week closes with September import/export prices and Preliminary October Michigan Consumer Sentiment Index. Tuesday begins with rates a shade higher versus Friday afternoon: the US 10-year is yielding 3.24% and 30-year agency MBS prices are down/worse a few ticks.

Retire where? You can retire to Minnesota where…
Halloween costumes fit over parkas.

Rob

Lots going on out there as lenders continue to work on helping their borrowers, vendors strive for name and brand recognition, and the industry faces higher rates in the future and lower volumes. Not to mention thousands packing their suits and heading to DC. Let’s jump in on margin compression, compensation, appraisal waivers, blockchain, and cybersecurity.

I received this note from Rich Swerbinsky, COO of The Mortgage Collaborative. “Rob, after months of discussing these issues with our members, I penned a couple short pieces on the tough industry climate in general and on how we compensate employees in our industry.

On the subject of appraisals, this comment was received from Jon Weimer. “Interesting commentary on the Fannie Appraisal Waiver, but I have a hard time believing it’s not being utilized because borrowers want to know the property’s value. People apply to borrow money, and the appraisal is just typically a means to that end. If they know they can achieve what they want to achieve without the variable of the appraisal, I imagine most people would take that option. Probably saves a few bucks too. Just a guess, but I’d think it has more to do with lenders erring on the side of caution, not paying close enough attention to the findings, or not knowing if their investors would accept the waiver. And of course, maybe there are other variables that I don’t know based on things that happen post-closing.” Thanks Jon!

October is National Cybersecurity Month

Banks (and lenders who work for banks) should know that for 2019, the OCC said it will focus regulatory examination efforts on: cybersecurity and operational resiliency, commercial and retail credit loan underwriting, concentration risk management, credit risk, ALLL (including CECL), BSA/AML compliance, compliance-related change management process, internal controls, and end-to-end processes necessary for product and service delivery.

I’m thinking about changing my password from “MyrtleRules” to something more complex, like “Passwerd1.” Seriously, passwords are usually only changed minimally when they must be changed very often, and these changes aren’t effective.

Information on passwords and cyber risk is paramount for lenders and banks – one hack and a company can lose its entire net worth, reputation, and future. Now that hackers use sophisticated tools to detect versions of commonly used passwords, the National Institute of Standards and Technology (NIST) issued revised password guidelines to help people create passwords only they would know (and that would be difficult for thieves to crack). If you can picture it in your head and no one else could, that’s a good password.

Check out Special Publication 800-63B on Digital Identity Guidelines. Gone are recommendations to make passwords overly complex. Now, the important thing is for them to be personal and unique. Anything that you could easily think of might be a good password (a unique experience or diverse interest perhaps). Moreover, with these uniquely crafted passwords, you may not need to change them as often either. NIST’s guidelines continue to call for restricting sequential and repetitive characters (such as 12345), words that pertain to the particular site that the person is using, and commonly used passwords (such as p@ssw0rd). Management warns both employees and customers not to use passwords they may have had at other institutions or websites that subsequently suffered breaches. NIST says hackers often search for those first.

In prior commentaries I’ve mentioned that banks and other companies should still employ multi-factor authentication measures to lessen the chance of successful breaches. Indeed, more organized crime rings are successfully performing account takeover attacks on web and mobile applications. So, thwarting them with both unique passwords and additional authentication puts up two walls of defense.

Steve Brown with PCBB warns, “Know that criminals typically buy lists of commonly used user name and password combinations on the black market, and input the pairs into password cracking software called automated credential stuffing tools. Cybercriminals then use botnets to infect websites and mobile apps, enabling them to then use these credential stuffing tools to crack user names and passwords.”

Is a dollar in my wallet better than a dollar on the internet? Blockchain and artificial intelligence will not be adopted as quickly as expected, multiple industry experts say. Speaking at the SIFMA annual meeting, Bank of America Chief Operations and Technology Officer Cathy Bessant said distributed-ledger technology has potential but is so far “untested and untried,” while Rostin Behnam of the Commodity Futures Trading Commission told a CFTC conference that industry processes work reasonably well and have benefited from considerable investment.

How are lenders and banks viewing blockchain? Blockchain technology has many other uses that may be useful to banks & lenders beside those related to cryptocurrency. It uses a distributed ledger method of tracking and accounting, and that same technology can be used for contracts and business transactions. Some countries are even using blockchain to fight fraud and corruption.

Regulators are beginning to look at blockchain and provide clues as to how the use of it might eventually be regulated. As a reminder, cryptocurrencies rely on blockchain technology. The regulatory view of cryptocurrencies is evolving quickly. One of the first agencies to attempt a regulatory framework was the New York Department of Financial Services (NYDFS). In 2015, they published final rules for any crypto/virtual currency companies doing business in New York, which require these companies to apply for a Bit License.

The Commodity Futures Trading Commission (CFTC) has determined that at least some cryptocurrency tokens are commodities, and thus, subject to CFTC regulation. That is a big step for banks and non-depository mortgage banks that may have customers who want to use cryptocurrencies in transactions.

FINRA notes in its latest Regulatory and Examination Priorities Letter that it will be focusing on the sales practices of initial coin offerings (ICOs) and cryptocurrencies. The SEC is very interested in these areas, so more information and regulation is likely.

The FinCEN Improvement Act of 2018 just passed in the House. It seems to broaden the scope of FinCEN’s responsibility from protecting the financial system from illicit use and fighting money laundering, to a more active role of working with foreign financial intelligence units to prevent the use of cryptocurrencies potentially used by terrorist groups. While it still needs Senate approval, this bill could affect other regulations on this matter as well.

Rep. Tom Emmer, R-Minn., co-chairman of the Congressional Blockchain Caucus, says he will introduce three bills that call on the US to “prioritize accelerating the development of blockchain technology and create an environment that enables the American private sector to lead on innovation and further growth.” The bills urge regulatory clarity and government support for the blockchain industry.

This week the Senate Banking Committee held a hearing titled: “Exploring the Cryptocurrency and Blockchain Ecosystem.” The committee will hear from two witnesses: Dr. Nouriel Roubini (NYU) and Mr. Peter Van Valkenburgh (Coin Center), two are capable witnesses with diametrically opposite views of the cryptocurrency ecosystem. Dr. Roubini once described blockchain as “one of the most overhyped technologies ever” and said that most initial coin offerings (ICOs) were “created by con artists, charlatans, and swindlers looking to take your money and run.” Mr. Van Valkenburgh works at Coin Center, which is the “leading non-profit research and advocacy center focused on the public policy issues facing cryptocurrency and decentralized computing technologies like Bitcoin and Ethereum.” Asking a 75-year old Senator to understand any of this is ludicrous, but analysts believe that the primary policy focus in the near-term will be on policing the industry and individuals rather than introducing a sweeping federal overhaul. Who can do a federal overhaul anyway?

In addition to all the regulatory agencies, leaders in the Crypto/Virtual currency industry have proposed a self-regulatory body called the Virtual Commodity Association (VCA). It would require member firms to commit in writing to operating their offerings in compliance with safe and sound practices and “provide a sanctions-based accountability program to compel ongoing member compliance.”

The North American Securities Administrators Association is ahead of federal regulators in support of a formal cybersecurity rule for financial professionals, and that likely makes sense, said President Michael Pieciak. Small firms are regulated by states and “are some of the most vulnerable shops,” he said.

No, this is not a paid ad, but the Northwest Credit Union Association (NWCUA) and IP Services announced a partnership that will provide cybersecurity and Information Technology (IT) systems management solutions to its member credit unions. “National safeguards and standards are being established to protect financial institutions and consumers from constant threat of breaches. Individual credit unions should adopt the same strategy to thwart off next generation cyber-attacks. It is critical that credit unions deploy a proactive security strategy that manages IT assets, ensures service availability, and manages risk mitigation. IP Services solves these challenges by using an integrated set of processes and controls to ensure uninterrupted systems and business performance while adhering to strict compliance and security requirements.” Northwest credit union leaders will have the opportunity to meet the IP Services team during the NWCUA’s annual MAXX Convention in Tacoma Oct. 16-18. IP Services is an exhibitor at the Strategic Link Trade Show during the event.

The news is not confined to the United States. Five thousand nine hundred miles away in China, the Chinese Central Bank announced it has officially launched testing of a blockchain trade finance platform designed to conduct trade and financing activities. And last month in Russia the Raiffeisen Bank issued a digital mortgage using blockchain.

Bob Hill and his new wife Betty were vacationing in Europe – as it happens, near Transylvania. They were driving in a rental car along a rather deserted highway. It was late and raining very hard. Bob could barely see the road in front of the car.

Suddenly, the car skids out of control! Bob attempts to control the car, but to no avail! The car swerves and smashes into a tree. Moments later, Bob shakes his head to clear the fog. Dazed, he looks over at the passenger seat and sees his wife unconscious, with her head bleeding! Despite the rain and unfamiliar countryside, Bob knows he must get her medical assistance. Bob carefully picks his wife up and begins trudging down the road. After a short while, he sees a light. He heads towards the light, which is coming from a large, old house. He approaches the door and knocks. A minute passes. A small, hunched man opens the door.

Bob, badly wounded, mumbles, “My name is Bob Hill, and this is my wife Betty. We’ve been in a terrible accident, and my wife has been seriously hurt. Can I please use your phone?”

“I’m sorry,” replied the hunchback, “but we don’t have a phone. My master is a doctor; come in, and I will get him!”

Bob brings his wife in. An older man comes down the stairs. “I’m afraid my assistant may have misled you. I am not a medical doctor; I am a scientist. It is many miles to the nearest clinic, however, and I have had a basic medical training. I will see what I can do. Igor, bring them down to the laboratory.”

With that, Igor picks up Betty and carries her downstairs, with Bob staggering after them. Igor places Betty on a table in the lab. Bob collapses from exhaustion and his own injuries, so Igor places Bob on an adjoining table.

After a brief examination, Igor’s master looks worried. “Things are serious, Igor. Prepare a transfusion.” Igor and his master work feverishly, but to no avail. Bob and Betty Hill are no more. The Hills’ deaths upset Igor’s master greatly. Wearily, he climbs the steps to his conservatory, which houses his grand piano. For it is here that he has always found solace. He begins to play, and a stirring, almost haunting melody fills the house.

Meanwhile, Igor is still in the lab tidying up. His eyes catch movement, and he notices the fingers on Betty’s hand twitch, keeping time to the haunting piano music. Stunned, he watches as Bob’s arm begins to rise, marking the beat! He is further amazed as Betty and Bob both sit up straight!

Unable to contain himself, he dashes up the stairs to the conservatory. He bursts in and shouts to his master: “Master, Master! The Hills are alive with the sound of music!”

Rob

What’s new here at the MBA’s conference in Washington DC? Plenty of secretive M&A closed-door meetings, continued talk that Ginnie is carefully eying non-bank approved Ginnie issuer’s financial situations, conjecture of MI reps’ jobs in the future if all the MI companies roll out pricing engines, and Fannie & Freddie eliminating some “pricing inefficiencies” to end cherry-picking. The FHFA (overseer of F&F) continue to focus on maintaining access to credit, reduced taxpayer risk, and the infrastructure for a single security. There’s also talk about the BofA/NACA 0% down, 4.5% program. We’re going there again?

Jobs

Do you have what it takes to take your mortgage lending super powers to the next level? Nations Lending is proud to announce its new initiative to grow its footprint across the U.S. where the company is licensed in 47 states, by expanding our retail branch outlets. This is an amazing, one-of-a-kind opportunity for an LO whose tired of the same routine, and ready to take that next career step as a leader, to advance in an established company with a proven track record of getting loans closed. Ideal candidates for our Retail Branch Sales Manager will have a minimum of 2 years’ experience in the LO field, as a well as a regional footprint showing a track record of success. If interested, contact Division Sales Manager, Jordan Gerard (337 501-0155). Or Allison Schock, SR Talent Acquisition Consultant (440-527-6718). For more information and opportunity on how to join our growing organization, please visit the company’s website.

Products, services, books, and events for lenders

Lendsnap, The Digital Mortgage Company, is hosting private consultations on going digital at the MBA® National Convention Monday and Tuesday only. For a free review of your originations flow, signup here. “Powerfully simple.” The new Lendsnap Point of Sale (PoS) system makes every member of your origination team 30% more productive with a single app for qualifying borrowers that includes importing original financial statement PDF’s from consumer-connected accounts, eSignatures, and an Intelligent 1003. Learn more today at lendsnap.com.

Conquering Shifts is a must read. “I’ve been originating loans since 2003 so I related to many of the stories within. Learning how top producers excelled during the hard times of ’07 and ’08 reinforces that salespeople are able to prosper in any economy.” Jordan Eller, Capital Mortgage Services. “I LOVED this book…It reminded me that building relationships, NOT selling products…still works. I especially liked the story about the LO who interviewed 17 different companies to find that right culture fit and is still with his company 19 years later.” Elizabeth Douglass, Wintrust Mortgage. “The benefit of owning this book is two-fold. First, it’s inspiring. Secondly, it’s a fantastic resource to be used during our sales meetings. The authors, Cindy Douglas and Kathleen Heck do a great job showing how some of the industry greats went from ground zero to mega producers” Ben Holloway, Mountain West Financial. To purchase:

www.conqueringshifts.com.

Sierra Pacific Mortgage is hosting a free one-hour webinar that demystifies liquid assets on Thursday, October 18 at 11:00 am (PST). This is a great session for any mortgage professional looking to build their knowledge of the most common asset types used to qualify your borrowers. Register today so you can be more knowledgeable in the future.

ARMCO’s Q1 2018 QC Trends Report Reveals Risks Associated with Lender Downsizing –“The distribution of critical defects for the first quarter of this year differed significantly from those we saw during the last quarter of 2017,” said Phil McCall, ARMCO’s president. “What the report reveals is consistent purchase-dominant contracting markets. One of the newest trends is a spike in defects associated with loan package documentation. This is often a result of lender downsizing and staff consolidation, which occurs when declining loan volume becomes a trend—as it did in the beginning of this year.” The report revealed the leading critical defect categories for Q1 2018 were (1) Income/Employment, (2) Assets and (3) Loan Package Documentation. Purchase transactions continued to outpace refinances in Q1 2018, comprising 62.98% of all transactions reviewed. View the full report here.

Despite how often things change in the mortgage business, one thing has remained constant –Comerica Bank. Since 1965, Comerica Bank has been a warehouse partner with mortgage bankers across the country. Comerica Bank takes pride in its unwavering commitment to mortgage warehouse lending. Offering lines from $5 million to over $100 million, Comerica continues to grow year over year. If you are seeking a reliable, flexible and consistent warehouse partner, Comerica Bank is here for you. Comerica Bank will customize your warehouse line to meet your needs, including construction financing, non-QM, and second liens. With state-of-the-art technology, Comerica Bank funds loans within seconds, ensuring satisfied borrowers and happy loan officers. Warehouse lenders come and go, but Von Ringger, Department Manager of Mortgage Banker Finance at Comerica, and his team are committed to mortgage banking. To see how Comerica Bank can raise your expectations of what a bank can be, contact Von Ringger at (313) 222-9285. Member FDIC. Equal Opportunity Lender. Loans subject to credit approval.

In this purchase-heavy market, a steady stream of referrals means the difference between standing out as a top performer and being at the bottom of the pack. According to Pipeline ROI, 77% of agents only have one lender they regularly partner with, so there’s room for new relationships…if you understand what agents truly want in a loan officer. Maxwell interviewed real estate agents across the country to get their perspective on what they value in a lender. Their new eBook, “Winning Agent Business,” reveals lucrative insights from agents themselves on how to earn their trust and build a lasting partnership. An exclusive to Rob Chrisman subscribers today (and a must-read for all lending professionals), Download your complimentary copy here.

Bank and M&A news

Higher interest rates have enabled banks to increase profitability in recent years, but that benefit could be ending, industry experts say. Banks can increase rates they charge borrowers, but they must also increase returns for savers amid tightening in the refinancing market. Record profits are expected as US banks prepare to release third-quarter earnings reports, but mortgage and other lending, fixed-income trading, completed mergers and acquisitions, and bond and stock offerings appear to be slowing. Citigroup, JPMorgan Chase and Wells Fargo all reported earnings on Friday. Citi has ceased to be the dominate mortgage player it once was, so let’s look at Wells Fargo and JPM fared in the third quarter, mortgage-wise.

In general, mortgage banking came in stronger than some had expected, primarily driven by gain-on-sale margins. Both companies saw their retail share tick down. Origination volumes at WFC were -8% Q/Q but JPM (+5%) exceeded expectations. In fact, compared to estimates by the MBA (-1%), Fannie (-1%), and Freddie (-2%), JPM did darned well. GoS margins reversed their two consecutive quarter slide, rising +26% (from 77 basis points to 97 bps) at Wells and +12% (43 bp to 48 bp) at JPM, both exceeded company and industry expectations of “flat.” Mortgage servicing rights (MSR) valuations rose around 4% Q/Q at WFC/JPM, respectively, on the jump in interest rates during the quarter as everyone expected. At WFC, the carrying value increased to 102 bp from 98 bp, and the MSR revenue multiple increased to 4.18x from 4.15x. At JPM, the carrying value increased to 122 bp from 116 bp, and the MSR revenue multiple increased to 3.49x from 3.31x.

Turning to M&A, the industry is talking about builder Lennar looking to sell its lending arm Rialto. It is not necessarily a defensive move, given the slowdown in building and increase in rates. Remember that since at least mid-2017, even before Lennar announced its plan to acquire CalAtlantic last year, the company has clearly telegraphed plans to pivot strategically to a more pure-play home builder. This plan, which included the spin-off of its Five Point Communities unit via an IPO into a separate public company, meant looking to “harvest value” for its Rialto unit so that it could concentrate on core home building businesses, operations, and investments. Rialto’s purpose as part of the Lennar business empire has been to serve as an asset management investment platform. Rialto identifies and funds investments in portfolios of commercial real estate opportunistically. This is not a core Lennar business in the “pure-play home builder” sense, but one that served, particularly during an earlier era of distressed real estate and bargain-basement pricing, as a high-margin way to use relatively inexpensive capital.

Once Rialto is sold, Lennar may be aiming to re-invest capital in newly emerging technology and data businesses adjacent to its home building operations, like Ring (now owned by Amazon) and Opendoor.

Banks continue to merge, acquire other banks, or be acquired. Since the end of September these were announced. In Virginia Union Bank & Trust ($13.0B) will acquire Access National Bank ($2.9B) for $610mm in stock (100%) or 2.43x tangible book, and American National Bank and Trust Co ($1.8B) will acquire HomeTown Bank ($558mm) for about $95.6mm in stock (100%) or 1.82x tangible book. Out in California Redding Bank of Commerce ($1.3B) will acquire The Merchants National Bank of Sacramento ($218mm) for $37mm in cash (40%) and stock (60%) or 1.86x tangible book. In Nevada JBNV Holding Corp has filed with bank regulators to acquire Kirkwood Bank and Trust ($321mm).

Core system provider Fiserv will acquire the third-party debit card processing services of US Bancorp known as Elan, for $690mm. (Although the move doesn’t include the credit card payments solutions, the move further solidifies Fiserv’s debit card processing and expands its digital offerings.) In the land of Dorothy and Toto, Citizens Bank of Kansas ($238mm) will acquire Verus Bank ($143mm). In PA Citizens & Northern Bank ($1.3B) will acquire Monument Bank ($348mm) for about $42.7mm in cash (20%) and stock (80%). In the cornhusker state, BankFirst ($467mm) will acquire Iowa – Nebraska State Bank ($213mm).

Capital markets

Compass Analytics announced today that over $200B was bid through its whole loan trading platform, CompassBid, in the last quarter. CompassBid remains the only bidirectional, fully self-contained whole loan trading platform in the industry, providing sellers the full breadth of investor eligibility, best execution delivery analytics, accounting, investor bid history, and integration capabilities, while giving bidders a loan bid calculation process that includes a secure portal, data normalization, eligibility determination, best execution, spec-payups, LLPAs, loan-level cash-flow MSR calculation, CRA determination and value, seller bid history, and a dynamic margin and incentive engine! CompassBid is fully integrated with Compass’s product, pricing and eligibility engine, CompassPPE, and its API, Compass’s pipeline risk management and MSR valuation engine, CompassPoint, Compass’s investor portal, CompassDirect, along with commercial and proprietary LOS systems. If you would like to learn more about CompassBid and Compass’s full list of products, contact us!

Last week we learned that prices ticked up slowly in September despite trade tariffs and a tight labor market. The Producer Price Index increased 0.2 percent for the month and 2.6 percent year over year as both food and energy prices fell. The Consumer Price Index ticked up 0.1 percent in September and 2.3 percent year over year with consumer food prices remaining unchanged. Both indexes are down from their peak year over year increases seen this past summer. Initial jobless claims remain incredibly low as 214,000, consistent with a strong labor market. Additionally, the National Federation of Independent Business’s Small Business Optimism Index remained near its 45 year high in September though it did ease slightly. Job openings are high, but businesses reported having trouble filling the positions. Mortgage rates jumped to their highest level since April 14, 2011, according to the Freddie Mac Primary Mortgage Market Survey and the markets continue to expect another 25-basis point high to the Fed Funds target in December and are looking ahead to March 2019 for another potential high as well.

The bond market is looking at higher rates, a more hawkish sounding Fed, uncertainty regarding US-China trade relations and downgrades to global growth. Tough to follow all that! When the dust settled Friday the bond market didn’t do too much to impact rate sheets. The slope of the yield curve faced flattening pressure this week, as the 2s10s spread compressed to 30 bps from last Friday’s 35 bps as the 10-year closed yielding 3.14%.

For scheduled news this week, we have the Empire State Manufacturing Index for October (21.1) and retail sales (+.1%) for September today, both expected higher. Tomorrow are the industrial production capacity utilization couplet, JOLTS (job openings), Philly Fed and leading indicators, along with the October NAHB Housing Market Index. Wednesday, as weary conference goers head home, we have the weekly MBA Mortgage Index, September Housing Starts and Building Permits, and the September FOMC Minutes. Thursday we’ll see weekly Initial Jobless Claims, October Philadelphia Fed, and September Leading Indicators. Friday things wrap up with September Existing Home Sales. We start Monday with rates versus Friday’s close: the 10-year is yielding 3.15% and agency MBS prices are a shade better.

(Parental discretion advised.)
A little boy dressed up as a pirate knocks on the door on Halloween and an older lady come to the door and says, “Oh my goodness! Now what are you?”
The little boy answers, “Look, lady, I’m a pirate”!
The lady replies, “Well, if you’re a pirate, where are your buccaneers”.
The boy answers, “Right here under my buckin’ hat!

Rob

What’s not being covered by the mainstream press here at the MBA conference? How about, given the rough financial conditions, monthly (and not quarterly) financials being requested by warehouse & correspondents? How about some attendees bunking up two to a room to save money? Lenders trying to hire LOs, but the top LOs not wanting to move as we enter the 4^th quarter and companies not wanting to hire the low-producing LOs? Both originators and management saying that regulator-impacted comp plans have continued to cause confusion, inequality, and hasn’t helped the borrower? And perhaps using net, or residual, income instead of gross income in the DTI calculation ahead of the “QM patch” expiring in January 2021?

Jobs & business opportunities

CoastalStates Bank continues to grow its warehouse offering and is looking to add Relationship Managers in key markets. Applicants will be responsible for business development, credit analysis and managing customer relations. As a depository headquartered in Hilton Head, South Carolina, CoastalStates has developed a warehouse offering with sound lending practices while providing mortgage bankers competitive pricing with excellent customer service. Interested individuals can forward confidential inquires to Tim Haug, VP, Warehouse Lending (843-341-9969).

“Assurance Financial offers branch managers and top producing loan originators something they seek: consistency – a way to close more loans on time with the same amount of effort. Our team is designed, built, and marketed to support the LO-every time. We deliver what we promise. Assurance Financial is a growing private residential mortgage banker with offices throughout the South, East Coast, and Midwest US, and we may be just what you’re looking for. Contact Paul M. Peters, CMB (225-939-6353) for a confidential discussion today.”

A national title company is looking for lenders that are interested in partnering to open up a title and settlement company. Lenders must be closing over 50 units a month. Please email me with information on your company for forwarding.

One shouldn’t forget that the Agencies have career opportunities: Fannie Mae and Freddie Mac are hiring, as is HUD.

Lender products and services

“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.”

As loan production volume shrinks, production costs explode and competition ramps up, loan officers want to know: How do I get borrowers to commit to me before they shop around with other lenders? Borrowers demand an experience as seamless as their digital coffee ordering app. So how do you satisfy borrower demands, capture leads and reimagine workflows to empower your LOs? With the right technology it is possible. Lenders have started dedicating too much time and money toward streamlining digital platforms to give borrowers app-enabled experiences. This “shiny object syndrome,” which prioritizes flash over the larger loan experience, is a fool’s errand. Stop spending time and money on glittery APIs and reimagine your approach. Dig deeper, rethink your process, digitize beyond the first touchpoint and strive for true innovation. Read the Total Expert guest blog by Kyle Kamrooz, Co-Founder of Cloud Virga: Solving the Cost-to-Produce Problem in Mortgage Lending.

“PerfectLO is the only POS that makes ‘bad’ LOs ‘great’ and ‘great’ LOs more productive. Your back office is likely to waste 25% of their day looking at loans or conditions they never should’ve. PerfectLO’s ownership speaks “mortgage,” not “code,” and has solved for the pain in your office. Its unique application has built in intelligence that digs in and asks all the questions that ‘live’ inside and outside of the 1003. PerfectLO creates a unique doc-checklist based off the borrower’s answers and offers a secure file sharing portal. Customizable milestone updates sent by SMS messages to all parties in the transaction. Your borrowers have a dashboard to view deadlines, timelines, closing location, etc. PerfectLO talks to all LOSs and is multi-language Replace your ‘Apply Now’ button today. Sign up for a free trial and demo. Click here to see the most digital mortgage process in the industry.

At the MBA Convention this week, XINNIX, The Mortgage Academy, shared some monumental news with the industry. It has been the leader in sales and leadership development for years, but now, you can engage with their incredible services in a powerful new way. THE XINNIX SYSTEM is a proven platform that includes training, accountability and coaching to drive results with clearly defined achievement and production milestones for mortgage professionals at every state in their career. Students execute requirements to achieve metrics that advance their business to the next level while earning industry respected designations. To learn more about how XINNIX can you help take business to the next level, contact them HERE!

If there’s a word that creates angst with lenders, onboarding is probably it. However, there is one subservicer who describes their 7-step onboarding process to SIME, Servicing Intelligence Made Easy, as “Onboardacious.” That’s TMS. Because they believe “onboarding shouldn’t get in the way of taking care of your borrowers,” their process is faster, easier, totally transparent and hassle-free. And who wouldn’t welcome that? As if that wasn’t enough, TMS even conducted a side-by-side comparison so you can see how other subservicers stack up against SIME. If you’ve been thinking about switching subservicers, the results are definitely worth checking out.

Stearns Wholesale Lending continues to support the Mortgage Broker with the introduction of its Preferred Vendor Program. “Through this program, approved Stearns Brokers can access our preferred title and credit vendors at a reduced cost. Reltco, a nationwide title agency, provides our brokers a $200 settlement fee*; Credco is the largest provider of merged credit reports and offers them to Stearns Brokers for $24 tri-merge (individual or joint); Informative research is an innovative technology leader in credit reporting solutions and provides our brokers with $28 credit reports with supplements included. Strength in partnerships has been a defining trait in our success for over 25 years, and it can be in yours, too! Click here to learn more and start saving today! *Certain restrictions apply.”

HomeScout® National MLS pioneered the first-of-its-kind online real estate marketplace where consumers can find a home and get preapproved by a lender in a single platform. Helping loan officers and agents build a robust buyer pipeline and converting up to 2-3 more transactions every month. HomeScout is the only private, mobile search platform to offer consumers 100% MLS listing information from coast to coast and gives lenders more control over transactions by introducing them to buyers prior to meeting an agent. Engage and retain buyers with HomeScout and keep them off public search sites where they will be sold to your competition. Watch as your contacts convert to commissions via the HBM DASH® reporting interface, with real-time updates of your buyer’s activities on HomeScout. Find out more by contacting them HERE and scheduling a demo or call 952-831-0623.

Capital markets

On September 21, Freddie Mac priced approximately $725 million in K Certificates (K-1507 Certificates), which are expected to settle on or about September 27, 2018. The K-1507 Certificates are backed by corresponding classes issued by the FREMF 2018-K1507 Mortgage Trust (K-1507 Trust) and guaranteed by Freddie Mac. The K-1507 Trust will also issue certificates consisting of the Class X2-A, X2-B, B, C and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-1507 Certificates.

On the 25th, Freddie priced a K-C Series offering of approximately $912 million in K Certificates (K-C02 Certificates), which are expected to settle on or about September 27, 2018. The K-C02 Certificates are backed by a majority of 7-year, fixed rate loans that feature longer than typical periods of reduced prepayment penalties before maturity.

On September 14, Freddie Mac announced the pricing of the SB53 offering, a multifamily mortgage-backed securitization backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust. The company expects to guarantee approximately $530 million in Multifamily SB Certificates, which are anticipated to settle on or about September 25, 2018. Freddie Mac Small Balance Loans generally range from $1 million to $6 million and are backed by properties with five or more units. This is the ninth SB Certificate transaction in 2018. Freddie Mac is guaranteeing four senior principal and interest classes and one interest only classes of securities issued by the FRESB 2018-SB53 Mortgage Trust. Freddie Mac is also acting as mortgage loan seller and master servicer to the trust. In addition to the five classes of securities guaranteed by Freddie Mac, the trust will issue certificates consisting of Class B and Class R Certificates, which will not be guaranteed by Freddie Mac and will be sold to private investors.

Also on the 14^th, Freddie priced a new $1.1 billion offering of multifamily mortgage-backed Structured Pass-Through K-Certificates, which are expected to settle on or about September 26, 2018. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

On September 6th, Fannie Mae completed its first Credit Insurance Risk Transfer Transaction of 2018 on over $11 Billion of Multifamily Loans, part of their ongoing effort to reduce taxpayer risk by increasing the role of private capital in the multifamily mortgage market. This transaction transferred $166 million of risk to seven reinsurers and insurers, representing the largest amount of credit risk transferred in a multifamily CIRT transaction. The covered loan pool for the transaction consists of 1,106 loans for 1,111 multifamily properties acquired by Fannie Mae from October 2017 through January 2018. Each loan has an unpaid principal balance of $30 million or less. With CIRT 2018-M01, which became effective August 23, 2018, Fannie Mae will retain risk on the first 225 basis points of loss on the $11.1 billion covered pool of loans. Reinsurers will cover the next 150 basis points of loss. Once the pool has experienced 375 basis points of losses, the credit protection will be exhausted and Fannie Mae will be responsible for any further losses.

On September 11th, Fannie Mae announced an offering of New Issue 5-year Benchmark Notes due September 12, 2023. The settlement date is September 14, 2018 and the payment dates are each March 12 and September 12 beginning March 12, 2019. The deal will have an issue size of $2 billion, a coupon of 2.875%, and a price of 99.590 yielding 2.964%.

Also on the 11th, Fannie Mae priced a $857.2 Million Multifamily DUS REMIC (FNA 2018-M12) under Its GeMS Program, its 8th in 2018. The M12 provides investors with the opportunity to invest in a 12-year, fixed-rate, call-protected tranche, a response to more borrower demand for longer-term lending as we see a flattening in the yield curve. All classes of FNA 2018-M12 are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal.

Looking at the rates, the U.S. 10-year closed +2bps to 3.16% despite heightened geopolitical uncertainty (normally decreasing rates) as President Trump stated that Saudi Arabia will face “severe punishment” if it is proven responsible for the disappearance of Washington Post columnist Jamal Khashoggi, who vanished after visiting the Saudi consulate in Turkey. Saudi Arabia has denied any involvement in his disappearance. Saudi rhetoric has threatened any sanctions on Saudi Arabia would hurt the U.S. economy, though America now imports less Saudi oil than in the past due to renewable energies and fracking. As far as strict economic news went, Retail sales for September drastically missed expectations. The silver lining is Core sales, which factor into GDP figures were up 0.5%, which will factor favorably for Q3 real GDP growth. Finally, the Treasury Budget for September showed a surplus of $119.1 billion versus a surplus of $7.9 billion for the same period a year ago. The budget deficit for fiscal 2018 totaled $779.0 billion versus $665.8 billion in fiscal 2017.

Today’s calendar kicks off at 9:15am ET with industrial production, capacity utilization and factory output for September releases, expected to fall, rise, and remain unchanged, respectively versus prior readings. Following at 10am is the August Job Openings and Labor Turnover Survey (JOLTS). We also have one Fed speaker, newly appointed San Francisco President Daly. The 10-year is currently yielding 3.17% and agency MBS prices are worse .125 versus last night’s close.

I threw a boomerang at a ghost the other day.

I knew it would come back to haunt me.

Rob

As thousands of MBA conference attendees head for the DC airports, what’s the chatter? Regulators who want to remind lenders that not being able to afford a compliance department doesn’t allow a company to make RESPA violations. That it is perfectly legal for builders to offer granite countertops, and to have a preferred lender. Companies who seem afraid, with the current industry-wide appetite for LOs, to tick off loan officers, so “drudgery” like teaching them compliance, how to use the LOS, etc., has fallen by the wayside. About how great a start Bob Broeksmit is off to as president of the MBA, and the value of the MBA’s charity, MBA Opens Doors Foundation, has in helping families.

Jobs & promotions

Congratulations to Gavin Ekstrom and his team on their move to CrossCountry Mortgage. Gavin has been an industry trailblazer in the mountain region for 27 years and has joined forces with CrossCountry Mortgage, an Ohio based lender with over 200 offices, and licensed in all 50 states. With a platform focused on growth, automation, and technology,

CrossCountry Mortgage is teaming up with Gavin to dominate and expand their footprint in CO, UT, AZ, and NV. As a Divisional Vice President, Gavin will be helming the launch of an operational hub and aggressively growing both internal and external sales. If you’re looking to align with a visionary leader, a company built around culture, a solid support team, and direct servicing, contact Gavin Ekstrom (720-231-6999).

VIP isn’t a status, it’s a mindset. At Evergreen Home Loans, the VIP mindset starts on day 1 with a world-class on-boarding experience. You’re teamed up with an onboarding specialist (think of them as your Evergreen Concierge) who helps ensure you have all the tools and resources you need to be successful. This includes setting up your new platforms, syncing your smartphone to email, and assistance with your database. Changing workplaces can be stressful, let us make it feel like you’ve always been here. If you’re a high-touch loan officer looking for VIP service and a great place to work, check out the Evergreen careers page. In addition to our national awards, we’re proud to note that we were recently named the #1 best place to work in the state of Washington by the Puget Sound Business Journal.

In hiring news, Home Point Financial is on the move. With the recent addition of Phil Shoemaker as Chief Business Officer, Home Point is narrowing its focus on providing its broker and correspondent clients the best service in the industry. It all starts by attracting top sales talent, and Home Point is committed to building a platform that supports the most productive Account Executives in the industry. Ready to take your career to the next level with a national mortgage lender looking to aggressively grow? One that retains most of its servicing, leverages cutting-edge technology and delivers the dedicated operational support you need to succeed? One that is 100% focused and committed to Third Party Originations? Contact Paul Wyner today: Home Point Financial is pointing you home.

National MI is pleased to announce that Cheri McCarthy has been promoted to Regional Sales Director for the Northeast Region. Cheri has a strong background in mortgage insurance and has been a strong Regional Team Leader with us for several years in the New England market. Rob Melton has been promoted to Regional Team Lead for the SE Region, reporting to Domenic Melillo. He will be joined by Dana Abernathy in his new role.

Lender products and services

Gearing up for 2019, Lenders must reassess their annual compliance solutions. “Are we continually up-to-date on both federal and state regulations and changes? Is our staff “hatted” on all changes? Who’s ensuring that compliance is on the ball?” These are questions that must be asked. Yet with so much already on the Lender’s plate, that can be a tall order. Fortunately, Strategic Compliance Partners can help — whether the Lender is augmenting an existing compliance infrastructure or outsourcing to a fully integrated turnkey solution. Better yet, the services are budget-friendly as they are often less than the cost of hiring additional internal staff. Give Leslie Benjamin a call at 646.418.6635 for a free compliance savings evaluation.

Did you know? Maxwell and HW recently teamed up to survey lenders across the country and found that 70% of lending institutions are either actively purchasing or already have a digital mortgage solution in place. Even in a challenging and constrained market, lenders understand the impact that a technology-fueled process can have on internal efficiencies, close times, borrower satisfaction, and referral volume. Maxwell’s robust but easy-to-implement technology empowers your team to amplify productivity, delight borrowers, and close more loans — faster. Today, lending teams on Maxwell are closing loans 45% faster than the national average, helping them achieve the ROI they deserve from a technology partner. Request your custom demo today!

Are you a Broker looking to become a Correspondent Lender or an established Correspondent Lender looking for a good Warehouse Lender to help grow your business? If so, Goldome Warehouse Lending would appreciate the opportunity to help your business achieve its goals. Goldome is an established Warehouse Lender with experienced sales and operations teams. The program was acquired by Independent Bank of McKinney Texas in 2017, and it continues to grow. Now, we want to be a part of your success story! Our flexible warehouse lines are a great fit for delegated correspondent lenders and non-delegated correspondent lenders looking to fund a wide variety of programs and products. We offer lines up to $100 million and can support the small lender all the way up to the large aggregator. Our seasoned sales team of Drey Roberts, Steve Harris, Jim Harrison, or Roxie Montoya is ready to assist. Please reach out today to learn more about Goldome Warehouse Lending!

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.

Borrower care and feeding

What’s the number one complain borrowers have about the mortgage loan process? Poor communication. Starting on the right foot with communication means providing your borrowers with a clear (and preferably complete) list of items they will need to provide, otherwise known as an initial checklist. According to data from STRATMOR Group’s MortgageSAT Borrower Satisfaction Program, giving the borrower a checklist of the information they will need to provide results in a very high Net Promoter Score (NPS) of 90. Borrowers who do not receive an upfront checklist quickly get confused and frustrated, and NPS plummets to -26. In the new October MortgageSAT tip, Mike Seminar offers three steps lenders can take to make sure that an initial checklist gets to the borrower and loan process communications start and go well.

Appraisal news from lenders, investors, and vendors

Values, of course, are a factor of supply and demand, and home builders help directly determine supply. Zelman & Associates summed up the current environment for builders. “For homebuilders, we expect market conditions to remain choppy through year end and anticipate that a greater need for incentives could pressure 2019 profit margins when those homes are delivered. With that said, unit growth should reaccelerate next year as demand laps the slower current activity, new communities come online and buyers inevitably adjust to the new rate environment as they have in almost all prior instances of large rate moves. We expect builders at more affordable price points to be best positioned.”

Wells Fargo Funding posted a policy update on Environmental Hazards and Environmental Deed Restrictions for Non-Conforming Loans effective on October 30, 2018.

Effective FHA case numbers assigned on or after October 01, 2018 through September 30, 2019 FHA will perform a collateral risk assessment of the appraisal submitted for use in the HECM origination. Based on the outcome of the collateral risk assessment, FHA may require a second appraisal to be completed prior to approving or closing the HECM loan. The second appraisal report should not be ordered from the first appraisal company. The cost of the second appraisal report is eligible to be financed as part of the closing costs. The lower of the two appraised values will be used to calculate the maximum claim amount. Additionally, FHA no longer requires appraisal from another appraiser if the re-sale date is between 91 days and 180 days following the date of acquisition by the seller and the re-sale price is 100% over the purchase price. For additional questions not answered by the guideline, please email Sun West’s underwriting scenario desk at uwscenarios@swmc.com for more information.

From now, until the end of the year, Royal Pacific Funding is offering free appraisals applicable to all loans $300K or greater, on all products including FHA**, VA, Conventional** and NonQM. Just submit a new loan*** on or after October 1^st and close the loan by December 31^st and Royal Pacific Funding will credit your borrower for the price of the appraisal, up to $500*. Restrictions apply, contact Royal Pacific Funding for details.

Veros and SWBC have partnered to provide Veros’ VeroPRECISION valuation engine and AVM solutions, including Veros’ proprietary VeroVALUE suite, as part of SWBC’s comprehensive selection of collateral valuation and analytics solutions. “By adding VeroPRECISION to its product line, SWBC now offers next-generation AVM decision logic technology. In cases where VeroPRECISION instantly deems a property appropriate for AVM valuation, those customers will immediately receive one of the industry’s top performing AVMs. Based upon machine learning in a production environment, the VeroPRECISION decision engine determines the most accurate valuation at the subject property level.”

Circumstances sometimes arise that require an appraisal report to be transferred from one lender to another. This process is often more complex than it may seem, and clients are oftentimes confused about the restrictions associated with this process. Coester VMS can help with the process.

Appraisal Pilot is a Potential Boon for Corelogic and helpful to Radian. Fannie Mae is testing if appraisers can determine a home’s value without visiting the property through a pilot. According to National Mortgage News, Fannie Mae is asking appraisers to combine local market data with property-specific details from a home inspection to create a “hybrid appraisal” report. This is not an entirely new approach, has been being pushed by larger/technology focused companies in the industry, and is more often used for home equity loans today. According to data provided by Moody’s, a hybrid appraisal can be completed in 3-7 days for $125-$450, while a traditional appraisal takes 3-30 days (rural markets and hot markets are longer) for $450+. If this becomes an option in the conforming mortgage market, we would expect it to be limited to a subset of loans when homes are more homogeneous and not be used for more distinct properties. Also, there will always be the “20 cats” issue as the data cannot tell how bad a home might be damaged aesthetically, while being structurally sound.

The move prompted one industry vet to opine, “With respect to the Fannie’s appraisal waivers, they only grant the waivers if there is a former appraisal of the property in their database already, if the borrower is in the database already (for refi’s), and if the borrower is very strong from an income, equity and credit perspective. I think these waivers are a great idea, too slow to come, and long way from another mortgage meltdown.”

Capital markets

Rates were roughly unchanged yesterday, the U.S. 10-year closing -1bps to 3.16% as headlines centered around potential Saudi acknowledgement for the murder of a Washington Post journalist, and a September Job Openings and Labor Turnover Survey that markets shrugged off (7.136 million; prior 7.077 million). International financial news was highlighted by the report that Italian officials have finalized the budget for 2019, but the European Commission is expected to reject the plan. European Commission President Jean-Claude Juncker said the eurozone would “revolt” if Italy’s 2.4% deficit target for 2019 gets approved. MBS supply was on the light side with many mortgage bankers still here in Washington for the MBA’s Annual Conventional & Expo, which concludes today.

MBA mortgage applications for the week ending October 12 came out, dropping over 7% (refis down to 38% of overall apps). Next up is September housings starts and building permits, with starts expected to decline while permits should go in the opposite direction. We also have some Fed speak, with Fed Governor Brainard speaking just after noon. Finally, the minutes from the September 25^th FOMC meeting will be released at 2PM DC time. In the very early going Agency MBS prices are little changed from Tuesday’s close and the 10-year is yielding 3.16%.

I scared the postal carrier today by going to the door completely naked.

Not sure what scared her more; my naked body or the fact that I knew where she lived.

Rob

Whether it is reducing the number of cookies in a package and keeping the price the same or putting less ounces of cereal in a box and keeping the price the same, both are ways of slyly passing on costs to consumers. In housing, the same thing can be done. It turns out that 10% of the homes in Seattle consist of a single room! Is this 1720? (Think your job is tough? What about appraisers appraising, and investors valuing, homes with only one room?) As we head toward winter, and higher rates, on the flip side Trulia analysis shows 17% of U.S. listings have dropped asking prices. Housing outpacing wage gains is not a long-term recipe for success for real estate.

Jobs & promotions

Fiserv/PCLender is searching for a Client Services Manager. This senior position leads a national customer support team and reports to Fiserv/PCL Director of Client Experience. A successful candidate will work directly with clients, professional services and sales to ensure highest level of customer support services and relationship management for LOS Clients. Send inquiries to Resumes@PCLender.com or apply online for R-10098051-1.

Guardian Mortgage, a division of Sunflower Bank, N.A., has announced that due to unprecedented retail growth, that it will move resources away from its less profitable Correspondent Lending division to focus on the rapidly growing retail platforms. Even in a rising interest rate environment, with refinances slowing, Guardian’s volume is up over 119% in 2018 alone, beating projections. The decision was solidified with their 2019 expansion plans for new and existing retail markets, and the addition of new sales teams in several states to fuel further growth. “Due to balance sheet or cash flow concerns, others are retracting and we’re expanding. We just purchased $50 million in servicing when others are selling. For Originators, is your current company experiencing this kind of growth? If not, maybe we should talk.” said Guardian Mortgage president Mischelle Weaver. Guardian Mortgage is growing, and they’re always looking for top performers. Please visit its website.

Do you have the niche products you need to win business from builders and REALTORS? Can you increase your market share via MSAs or desk rental agreements? Planet Home Lending branches can. Join Planet and get a robust product portfolio with no agency overlays, plus: no MI and near-miss jumbo, bank statement, Debt Service Coverage Ratio (lease income), foreign national, and asset depletion non-QMs, 203(k) renovation and 203(h) 100% post-disaster loans, TDB (lock and shop), non-warrantable condos, manufactured homes, USDA, 80/10/10, and DPA. Call 888-792-8480 for a confidential consultation or email Planet Home with a note of interest.

Assurance Financial offers branch managers and top producing loan originators something they seek: consistency – a way to close more loans on time with the same amount of effort. “Our team is designed, built, and marketed to support the LO-every time. We deliver what we promise. Assurance Financial is a growing private residential mortgage banker with offices throughout the South, East Coast, and Midwest US, and we may be just what you’re looking for. Contact Paul M. Peters, CMB (225-939-6353) for a confidential discussion today.”

The Equitable Mortgage Corporation (EMC) welcomed Todd Reigle as its new Vice President of Marketing. Reigle joins EMC with over 24 years of marketing experience in the Columbus area various radio and nonprofit organizations including Radiohio Inc./97.1 The Fan, Canine Companions for Independence, Goodwill Columbus and Make-A-Wish.

Sun West Mortgage Company, Inc. has expanded its distributed retail division with the launch of new DBA, Mortgage Possible. Congratulations to industry experts Ty Kern, Jeff Onofrio, Eddie Brown, and John Brumund who are managing the launch of this new DBA.

Lender products & services

Government submissions are on the rise. JMAC Lending is offering Appraisal Fee Credits of up to $500 at closing for all Government Purchase loans submitted in October and November and closed by Dec. 31, 2018. “JMAC provides flexible credit and income guidelines manual underwriting (DTI to 50%) manufactured home loans (FHA) and reduced seasoning for credit events such as foreclosure, short sales, DIL and bankruptcy,” Regional Sales Manager Robin King says. “We are closing government purchase loans in 14-21 days. Plus, you can get your borrowers pre-qualified to save more time.” Click here for details on the Govt. promotion. To speak with an AE, and to submit a scenario, contact sales@JMACLending.com or call 844.888.5622.

TCF Bank’s Relationship Lending Unit (RLU) is happy to announce the addition of four new sales leaders to grow its HELOC business nationwide. Mark Mazzenga will lead the eastern United States team, Jim Sprick will lead the western United States team, Ken Cudia joins as the southern Florida business development manager and Douglas Smurthwaite joins as the northern California business development manager. “These four individuals bring decades of experience to the TCF RLU team,” said Mark Zierott, national sales manager, relationship lending unit at TCF Bank. “With expanded loan sizes, reduced FICO scores, lower margins, and our concurrent and standalone offerings, TCF RLU continues to be the number one choice for HELOCs in the TPO channel.” If you are interested in becoming an approved partner with TCFRLU, please contact Mark Zierott.

Are You Ready to eClose the Digital Loop? Nancy Pratt, Pavaso’s Vice President of Partner Relations and Government Affairs, says front-end origination technologies have made enormous strides toward digital mortgages and improved the borrower experience with intuitive designs and automated approvals. Now, she says, it’s time for lenders to take the next step toward eClosing loans. “Today’s lenders have the ability to expand the digital experience by letting customers view closing documents online prior to close, in the comfort of their own homes and at their own pace,” Pratt says. “They can even access educational links, videos and explanations about individual documents. When given a more transparent eClosing process, we’ve found borrowers spend a fraction of time at the closing table, often executing documents in 15 minutes or less.” To learn more about Pavaso’s eClose solutions, visit

www.pavaso.com, reach out to sales@pavaso.com or give them a call at (866) 288-7051.

Did you sell off yourself along with your loans? This new white paper from TMS will stop you in your tracks and make you rethink what you know about correspondent lending, or, as TMS calls it, CAREspondent lending. It’s time you start caring about who you choose as a correspondent investor because your customer sure does. As it stands, less than 10% of customers return to their original correspondent lender when they decide to get another mortgage or refinance. The Correspondent lender loses connection with the borrower when they dump them onto a correspondent investor and never explain the process. If you want to secure future growth and create repeat customers, it’s time to start caring about who you partner with, and how you’re communicating to borrowers. Read more here.

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.

Trainings and Events

Join me for lunch next week! On Thursday, October 25^th at Wente Vineyards in Livermore, CA join me, the California MBA and their President’s Council member Riivos for a CFO Peer Group Luncheon event. My colleague, Joe Garrett, and I will speak on planning for 2019, mergers and acquisitions and other top of mind issues for independent mortgage bankers. This event is designed exclusively for mortgage banking CFOs and senior finance executives. Normally these CFO round table events are a benefit of membership in the California MBA, but Riivos is extending the invitation for this event to non-members as well. Doors open at 11:30 am (reservation required) with lunch and the program beginning at noon. If you’re interested in attending this free event, please contact Susan Milazzo to make your reservation.

The hurricane season has been particularly rough on the Southeast this year and last. The Mortgage Bankers Association of Georgia in connection with NAMMBA, GREFPAC and NAMPW are hosting a charity event to raise money for the hurricane victims in their state and neighboring states. The first ever MBAG Connect for a Cause will be held on Thursday October 25^th at Three Sheets in Sandy Springs from 5:30pm – 8:30pm with the Red Cross onsite collecting donations. Registration and more information at www.mbag.org and if you can’t make it, donations can be made online via www.rdcrss.org/mbag.

Would you like to attend one of the California MBA events for free in 2019? Take advantage of its October Membership Month promotion and join the organization before 10-31-18 and you can receive a complimentary registration to any of their conferences next year. It’s a great time to join this valuable organization. If you do business in California, it’s time to support the organization that supports you and your company. Join today!

Join MBA NJ on its November 6, 2018 for its Webinar Series. Demystifying Credit Repair: Your Tools for Closing More Loans, Saving Time and Building Referrals. Hear Vic Melillo discuss Credit Repair and the different tools to help close more loans, save time and build a referral system. There will be time for Q & A at the end of the session.

If you’re in the Kansas City area, register for the MBAKC Luncheon on November 15^th. Speaker Rob Chrisman, questionable industry newcomer, will discuss, “What the Industry can expect in the First Half of 2019 – Without Making Forecasts.”

National MI is pleased to bring the following four webinars to you in November.

Freddie Mac’s Home Possible Mortgage: Nov 7 10AM-11:30AM PST, Learn more about how Freddie Mac has combined their Home Possible Mortgages into one low down payment offering and how it provides new flexibilities to expand homeownership opportunities for borrowers with low-to-moderate income. This webinar is led by 30-year mortgage industry veteran, Tom Ward, National Training Manager, Customer Education Services in Freddie Mac’s Single Family Strategic Delivery organization. Advanced Self-Employed Borrower: Nov 8 10-11:30AM PST Need help navigating the complicated self-employed borrower process? In this advanced session, led by Marianne Collins of Diehl Mortgage Training and Compliance, participants will get a deep dive into the various schedules and tax code rules that come into play when underwriting the self-employed borrower.

National MI continues with: Oh, Shift! Session #2 – Oh, Shift. Nov 13 from 12:00 pm – 1:00 pm PST. Words give you power and control. National MI University presents the second webinar in a powerful six-part series. Best-selling author and Executive Coach, Jennifer Powers, MCC’s “Oh, shift!” will teach you how to use your words to affect your mindset, motivation, relationships, results and reality. This is a big-time game-changer. Building Partnerships That Work: Nonprofit and Community Outreach: Nov 15 @ 12:00 pm – 1:00 pm PST, 75% of household growth is projected to come from minority segments over the next five years. Millennials and Generation Z are more likely to choose providers associated with a social cause. Join Kristin Messerli of Cultural Outreach and learn how to identify and build the right community partners, how to develop strong relationships through networking and communication and how to convert community outreach initiatives into a new channel of sales and recruitment!

Capital markets

Steady as she goes. (For now.) The U.S. 10-year closed at 3.18% after the release of a disappointing Housing Starts (20k below expectations) and Building Permits (32k below expectations) report for September. The supply of new homes isn’t picking up fast enough to meet the demand for new homes at more affordable price points, and overall home sales activity should continue to be repressed by affordability constraints. The afternoon release of September FOMC Minutes showed that policymakers are ready to increase the fed funds rate range past the neutral policy rate, acknowledging the presence of strains on emerging market economies but without significant concern. The implied likelihood of a hike in December increased to 83% from 80%, but the implied probability of another rate increase in March dropped slightly 50%.

Weekly jobless claims and the Philadelphia Fed Manufacturing Index began today’s calendar (-5k to 210k, -.7 to 22.2, respectively) followed later by September Leading Economic Indicators. “Fed speak” consists of messages from St. Louis Fed President Bullard, and Governor Quarles. Finally, the NY Fed will be back with likely the last MBS large-scale purchase recap of the year at 2PM. We begin Thursday with the 10-year yielding 3.20% and agency MBS prices roughly unchanged from Wednesday’s close.

Last Halloween there was a knock on the door. I looked out of the window and then shouted upstairs to my wife, “Honey there’s a witch at the door. What should I do?”

She shouted back, “Just give her some candy and tell her to get lost.”

My mother-in-law hasn’t spoken to me since.

Rob

Everyone, and their brother, knows that the costs for builders to build a home are increasing. Politics aside, it turns out that the tariff changes are indeed impacting the cost of remodeling and building, and NAHB released a list of products affected by tariffs, including nails. Did you know that, per a Freddie Mac poll, 78% of Americans now say that renting is more affordable than owning? Higher rates and home prices are the obvious factors although in some areas wage growth has overtaken house price appreciation. New rental supply, on the other hand, has hit a three-decade high.

Jobs & new positions

Community Banks Mortgage in Colorado is looking to add MLOs to its Downtown Denver Office. This office is in a vibrant, dynamic, bustling part of the city that has one of the strongest markets in the country. They can do all loan types in all 50 states and have a robust portfolio product offering. Send a resume to, or contact, Will Stingley (719-338-4970) for more information.

EMM Wholesale is looking for a dynamic inside sales manager with a book of wholesale broker business. Candidate must be familiar with FHA, VA, FNMA, FHLMC and other Wholesale Lending loan products and have a clear understanding of TRID. Candidate will be sales oriented and not afraid to do cold calls out to new brokers. Must be friendly and courteous in working with outside and inside staff. Motivated and able to build a team of inside Wholesale Account Executives, the candidate will have 5 Years Wholesale Mortgage experience. All resumes are held in confidence. Only candidates whose profiles closely match requirements will be contacted during this search. For more information visit us at: joinemmwholesale.com or send resume directly to: hr@emmloans.com

Prime Choice Funding, Inc. is a national leader in mortgage lending and while many in the mortgage industry have been struggling, PCF has been experiencing exponential growth and is looking to expand nationwide. To keep up with its growth, management has recently welcomed Evan Kidwell as Chief Strategy Officer and are looking to hire loan officers across the US to join the team. Prime Choice provides loan officers with highly competitive compensation, top tier fulfillment and paid marketing that actually drives business growth. It offers a variety of loan programs to fit any situation like FHA, VA, Conventional, Jumbo, Non-QM, Reverse, Reno and many more. If you’re interested in joining the team, contact Evan Kidwell (714-640-5905).

When was the last time you closed a loan 10 days after taking the application? At Network Funding, 10-day closings are a way of life. With the addition of our sophisticated point of sale system, Simpl, to our industry leading operations team and our own Appraisal Management Company to guarantee appraisals within 72 hours, 10 day closings set Network Funding apart and allow everyone in the transaction to get paid sooner. Call or e-mail EVP Brett Snortland to start closing your loans in 10 days (832-545-4653).

AHP Servicing, Chicago’s growing crowdfunded financial services company, is recruiting for a licensed Mortgage Loan Originator to serve as a Modification Specialist. AHP Servicing invests in non-performing residential mortgages and restructures the debt to keep families in their homes. It also actively services and sells both non-performing and re-performing loans. “This is a salaried, high impact role with growth potential. This is a great opportunity to broaden your residential lending career. If this profile sounds like you and you’re ready for an exciting career opportunity with a dynamic company, visit Careers at www.ahpservicing.com to submit your resume. Contact mdoyle@ahpservicing.com or call us at 312-778-6061. AHP Servicing, LLC is an equal opportunity employer.”

Congrats to Fobby Naghmi who recently accepted the position of SVP of the Eastern division at Planet Home Lending. “He is responsible for strategically building and managing the branch network in addition to recruiting, onboarding and transition activities in the division. His efforts will help Planet Home Lending continue to grow in new markets.”

Lender products & services

We’re all in the data business – accumulating it from borrowers and vendors, creating it, verifying it, acting on it, and forwarding it to investors and servicers. Your business floats on a deep pool of data. Unfortunately, most lenders are frustrated by fragile reporting and a cloudy data story — data rich, knowledge poor. Teraverde Management Advisors created the Coheus Profit Intelligence solution to converge and shape your data to foster clear vision and insight, creating knowledge. Coheus associates loan data with your people, status transitions, costs, revenue, and payroll events. Coheus provides a mortgage-specific, coherent, highly-flexible way to explore, visualize and interpret your data. With Coheus you get a complete perspective on your business, allowing you to Manage Differently, maximizing profitability, productivity, and customer service. With Coheus you can clearly see through the deep end of the data pool. Contact Frank Poiesz or visit Coheus.com today.

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.

Appraisal and valuation news

In 2017, more than six million homes were sold in the U.S. and there were more than two million licensed real estate agents. By contrast, there were only about 80,000 appraisers. The appraisal business is changing. Technology is becoming more prevalent and with rising turn-times and costs, the need to adapt is more apparent. As appraisers begin to embrace new methods of collecting and sharing data, the industry will likely see a dramatic increase in efficiency. Property Solutions, part of the Computershare Group, recently conducted a survey of its network partners. The results, which take into account 400+ responses, contributed to Property Solutions’ latest white paper and lends insight into current industry thinking.

AVM cascades, the go-to application for Home Equity lenders and other lending needs, can carry unintended and potentially unpleasant consequences. Although most properties are viable candidates for AVM use, it is increasingly important to know if an AVM is not appropriate for a specific property. To understand the limitations of AVM cascades and the benefits of optimizing AVM valuation performance by determining viability for each subject property, download Veros Real Estate Solutions’ new white paper, “The Case for Choosing AVM Accuracy and Suitability Over the Traditional AVM Cascade”. Then, test VeroPRECISION free of charge.

ditech announced that streamline refinance applications do not require a disaster inspection and may proceed to closing and/or endorsement. Applications that have closed but are pending mortgage endorsement require an exterior disaster inspection with photographs completed by an FHA Roster Appraiser. Streamline Refinance applications do not require a disaster inspection and may proceed to closing and/or endorsement. If the original appraiser is not available, another FHA Roster Appraiser may complete the disaster inspection. The original appraisal report must be provided to the appraiser completing the damage inspection report. The inspector must include a statement that the property has not sustained any fire damage. If the property sustained damage, all damage, regardless of the amount, must be repaired and the dwelling restored to pre-loss condition before the loan is sold to ditech.

Per the FHA waiver issuance of its policy on the timeframe for completing the inspection of properties due to the California Wildfires and High Winds declaration in Lake and Shasta Counties, Ditech has posted the following: Applications with pending mortgage closings require an interior/exterior disaster inspection with photographs completed by an FHA Roster Appraiser.

Mr. Cooper continues to monitor FEMA Disaster Declarations and concerns regarding ongoing flooding resulting from Hurricane Florence. Accordingly, Mr. Cooper is announcing the following update. Effective October 4, 2018, FEMA has approved 2 additional counties in South Carolina for Individual Assistance: Darlington and Florence.

Capital markets

There are changes with investors and vendors in the secondary marketing arena. For example, Fannie’s Flash MBS “offers more flexibility, saving time and money.” “Use Fannie Mae’s Flash MBS® to receive book-entry delivery as soon as 4 days after we receive your Loan Delivery submission. Or, select Fannie Majors and receive book-entry delivery on Fannie Mae’s published Majors as soon as 3 days after we receive your submission. Both options provide additional business days for pooling, up to 2 days for Flash MBS and up to 3 days for Fannie Majors, compared to the standard pool processing option. Plus, there are no processing fees. Please see the pool settlement calendar, which includes eligible flash dates, on the Loan Delivery page.”

MCT announced the addition of Multi-Factor Authentication to its MCTlive! Secondary Marketing Software. This addition is the latest in MCT’s ongoing effort to lead the secondary mortgage market toward stronger data security. MCT also rolled out a program for “broken loans.” MCT’s S&D service has a deep network of solid, well-vetted end buyers. Its whole loan desk has years of loan trading experience helping to ensure maximum execution for our clients.

Compass Analytics announced that over $200B was bid through its whole loan trading platform, CompassBid, in the last quarter. CompassBid “remains the only bidirectional, fully self-contained whole loan trading platform in the industry, providing sellers the full breadth of investor eligibility, best execution delivery analytics, accounting, investor bid history, and integration capabilities, while giving bidders a loan bid calculation process that includes a secure portal, data normalization, eligibility determination, best execution, spec-payups, LLPAs, loan-level cash-flow MSR calculation, CRA determination and value, seller bid history, and a dynamic margin and incentive engine!

MAXEX LLC, a residential mortgage loan exchange provider, announced that it successfully closed a $38 million new funding round led by Moore Asset Backed Fund, LP, an investment

fund managed by Erik Siegel of Moore Capital Management, LP.

In relatively recent LIBOR replacement news, entities including government agencies, global institutions, banks and municipalities have issued more than $9 billion in debt tied to the Secured Overnight Financing Rate during the past two months, indicating increased adoption since the Libor alternative launched nearly six months ago. However, market participants say SOFR has progress to make, and concerns have been raised about volatility. A few issues need resolution, but industry groups are hard at work developing alternatives to Libor, panelists said at the SIFMA Annual Meeting. The Secured Overnight Financing Rate is promising because it is based on the repurchase agreement market, which handles “north of 700 billion daily transactions” and complies with standards of the International Organization of Securities Commissions, said Christian Rasmussen, managing director at UBS Securities.

There isn’t much going on in the ol’ bond market lately. Are investors regretting the big jump in rates recently? They aren’t that sentimental. Yesterday there was some intra-day volatility due to random influence from stock market volatility, strong job numbers, Treasury Secretary Steven Mnuchin saying that he will not participate in next week’s Future Investment Initiative Summit in Saudi Arabia, U.S. manufactures being optimistic, and the Italian debt market slumping compared to other countries like Germany. Our 10-year closed the day yielding 3.18%.

As I send this out due to travel, it is too darned early to know where rates are. But today’s calendar is light (no 5:30AM PT potentially market-moving numbers) with Existing Home Sales (thought to be little changed from last month’s figures) and a couple Fed speakers. So one would expect little or no volatility, and rates could be close to yesterday’s closing levels.

Top Ten signs you have been doing loans too long.

Number ten: You think Fannie would be a cute name for one of your kids.
Number nine: You still have a WAMU T-shirt you sleep in.
Number eight: You review your kid’s homework and you separate the corrections into PTD’s (Prior to desert) and PTF’s (Prior to Fun) categories.
Number seven: You still use an HP35 Calculator.
Number six: You wish you could go back to the good old days when everything was a wet signature.
Number five: All your friends still smoke.
Number four: At cocktail parties, the only thing you can talk about is HARP 2.
Number three: Your bucket list includes doing one last stated income loan.
Number two: You remember when making money was an okay thing.
And, the number one sign you have been doing loans too long: You fantasize about members of the opposite sex’s FICO scores.

Rob

When is residential lending a “piece of cake”, a “walk in the park”, or “a cake walk”? Never. There is always uncertainty in the future, always challenges and competition in the present. Yet the industry will help borrowers with about $1.5 trillion in residential loans this year, and something north of $1 trillion next year, assisting borrowers in an efficient, compliant manner. Business models are shifting, however. Why?

I received this note from James Johnson. “Rob, there have been a number of postings in your recent commentaries about how tough the mortgage market is today, and I would like to share a few of my thoughts with you and your readers. These are directed to both company owners as well as production teams. For starters, I don’t see anything on the horizon that is going to lead to a quick turnaround, with the possible exception of a big drop in rates. It is possible that we will see another Central Bank bailout in the next year or two that leads to some sort of refi boom, but barring that, this market of shrinking volume and margins will be with us for quite some time. By that I mean 3-4 years, maybe longer.

“No doubt we are in a bear market for rates and people should be thinking about what happens when rates hit 6% in the next year or so, because that is where we are headed. Unless you were in the business prior to 1983 you have never seen a bear market, and I can tell you from experience, it is not much fun. Thirty plus years of falling rates created a whole series of excesses that are being corrected right now. I am finding too many company owners employing their bull market strategies in this bear market, and I think that is a very dangerous game plan. Bigger companies have their struggles, but I see the smaller companies ($1 billion and less annual) as being particularly vulnerable, They must staff every operations function without enough units to create any efficiency, a model that many are questioning. This operating leverage (fixed costs) will be brutal in Q4 and Q1, 2019.

“In many cases I think that owners of the smaller companies might be better off going back to being brokers and eliminating most of their operations expense. Or they can go the other direction and try to affiliate with a bigger company. Staying where they are today in no man’s land is probably the toughest route. The whole market is rolling up to capital, scale, technology, and cost efficiency, and not much doubt about that. In many cases owners could affiliate and eliminate most of their risk, take their capital out, and make more money with fewer headaches over the next few years. That should be compelling. The same is true for production teams, as they should be seeking scale and technology to compete going forward.” (If anyone would be interested in talking about this further or looking at your options, contact James Johnson.)

Manufactured housing in the primary & secondary markets

Recently I heard someone joke, regarding any house built in a factory, “Hey, if there’s a dog on a chain in the appraisal photo, or a license plate, we’re not going to lend on it!” But there is a lack of inventory of traditional stick-built homes available. With sales still decent many analysts believe that the market could be poised for a dramatic increase in manufactured housing. Creative and innovative companies are building manufactured housing today that rivals the quality of more traditional homes. Fortunately, homebuyers and originators are seeing an increase in financing options for this type of housing, as well.

I was fortunate to have spent some time last week in Washington DC with Dr. Lynn Fisher. (Most know her from her days on the economics team at the MBA. She is now Resident Scholar, Codirector, AEI Center on Housing Markets and Finance.) She observed, “The belief that housing can be produced more efficiently than is currently done is not a new idea at all. In fact, Americans have experimented with alternate ways of producing homes since at least the mid-1800s when sectionalized houses helped them to expand westward. But attempts to fully modernize and industrialize the production of housing have never had staying power. Over the last decade, we estimate that 87% of new homes, including mobile and manufactured housing, were built on-site and not in a factory. That number, however, ignores the extent to which prefabricated components are increasingly used in on-site construction – for example, window and door assemblies, prefabricated trusses and structurally insulated panels.

“In 1971, two scholars wrote in a report to the President’s committee on Urban Housing that the, ‘popular literature is filled with charges that the construction industry is inefficient and that it consciously inhibits cost saving innovations’ (Burns and Mittelbach, 1971). While the report, and many since, partially refute the claim about low productivity growth in housing construction, it seems fair to say that perceptions of homebuilding in the U.S. have changed little. A June 7, 2018 New York Times article proclaimed that the, ‘global construction industry is a $10 trillion behemoth whose structures determine where people live, how they get to work and what cities look like. It is also one of the world’s least efficient businesses’ (Dougherty 2018).

“Despite such claims, there is a lot going on in housing construction, and some if it could truly be game-changing. For example, next week at AEI’s Seventh annual AEI-CRN conference on housing markets and finance, we’ll be hearing from Jason Ballard of ICON. His company is developing the technology to allow 3D printing of houses. We’ll also hear from Jerome Smalley of Blueprint Robotics whose company, as the name suggests, is using robotics to flexibly produce a wide range of housing designs in its factory.

Dr. Fisher’s note went on to clarify some definitions. “In addition to site-built housing, a surprising variety of off-site housing production techniques have been tried in the US (and around the world) over time. We distinguish between two main groups of off-site production: manufactured or mobile homes on one hand, and panelized and modular housing on the other. In the case of manufactured homes (called mobile homes before 1980), the home has a chassis for over road travel and is built to the national Housing and Urban Development (HUD) building code first established in 1976 for such housing (confusingly also called HUD-code housing). By contrast, panelized or modular housing is at least partially built in a factory setting, must meet state and local building codes and typically does not have a chassis for towing. Panelized housing is usually shipped from the factory as components (floor systems, wall panels and trusses) to be assembled and completed on-site, whereas modular housing is typically shipped in three dimensional sections connected together at the site.”

Lynn mentioned one great (failed) example. “Following World War II the need for housing, a scramble to re-purpose the industrial war machine and a massive government intervention combined to spur the next boom in prefabricated housing firm start-ups even as on-site homebuilders continued to learn how to take advantage of economies of scale, as famously demonstrated by Levitt and Sons.

“The Lustron Corporation was a poster child of this era both in its massive government backing and the extent of its attempt to industrialize the homebuilding process. It invested more than $39 million in capital, the clear majority of which was financed by the national Reconstruction Finance Corporation (RFC), to produce a projected 100 homes a day out of porcelain enameled steel (both inside and out) in a former aircraft factory. Its government backing was highly controversial, its start-up delayed and its products launched during the 1949 recession. The RFC called its loan for a variety of reasons and as Carl Koch relates, almost as soon as it started producing homes, ‘the Lustron Corporation hoisted sail, and moved slowly and majestically into receivership’ (1956), It produced just over 3,000 homes.” Thank you, Lynn!

We’ve had advancements in robotics so fewer skilled workers are required in the building process. The final delivery and assembly of the homes, however, is done locally (skilled labor, plumbers, electricians, mason, landscapers) thus supporting the local economy.

Anne Elliott and Don Elliott, Jr. thought it important that lenders and investor know the terminology involved in the factory-built housing industry, and the associated risks. “Manufactured houses are built in a factory. Double-wides and triple-wides are too wide to be hauled on a trailer down the highway so are assembled on-site. Single-wides, double-wides and triple-wides (typically 16’, 32’ and 48’ in width respectively) are typically rectangular. Houses with more complicated exterior footprints are most costly to build. Inexpensive stick-built houses may also be rectangular, but usually differ from factory-built because they have non-standard width.

“Loans on manufactured housing are considered higher risk than stick-built housing for multiple reasons. Loan performance is poorer. The average borrower has a lower credit score and more problematic credit. Most manufactured housing is less durable and shows wear earlier than stick-built housing. Consequently, value depreciates like automobiles rather than appreciating like stick-built housing. In most areas, manufactured homes are less marketable. Much of the public does not distinguish between trailers and manufactured homes, despite the latter being permanently attached to a lot.

“Permanent attachment may be impermanent. Appraisers and servicing agents tell stories of arriving at an address and discovering an empty lot where a manufactured house once stood. Stick-built houses are capable of being moved from one lot to another, but manufactured housing can be moved more easily. Documentary requirements on manufactured housing (principally title- and appraisal-related) are complex.

“Manufactured housing may be an affordable option in an appreciating market, but value suffers in a depreciating market when borrowers can afford more structurally sound and centrally located stick-built housing. In some areas such as the Pacific Northwest, manufactured housing has better market acceptance and less of a stigma. Manufactured homes in California coastal communities may sell for prices consistent with or higher than luxury home prices in non-coastal states.

“Several years ago, when I announced that our correspondent division was discontinuing purchasing loans on manufactured housing, spontaneous cheering broke out. I cheered as well. For me, it meant fewer audit errors to research, less internal training and re-training, and no further repetition of my standard warning to originators: Assign manufactured housing loans to your most detail-minded and risk-savvy underwriters.

“Be aware of distinctions between manufactured, modular and prefabricated housing. Manufactured housing is assembled in the factory and transported to the site. Modular is built in sections, transported and assembled on-site. Prefabricated housing is factory-built with panels or walls attached to framing on-site. Some view the minor distinctions between modular and prefabricated as inconsequential. Unless the appraiser distinguishes and the investor does also, it may not make a difference. In most cases, modular and prefabricated housing are typically considered the equivalent of stick-built by investors.”

(Anne was kind enough to send a Kindle link to a good reference book titled “Mortgage Risk: A Blueprint for Smarter Origination.”)

In the secondary markets, there are certainly programs. FHA sets out rules for its manufactured home guidelines. FHA loans can be used to purchase mobile homes, manufactured homes and/or modular homes. HUD, of course, has its Title 1 program.

Freddie Mac has a page on its program with various links. Fannie Mae recently introduced the MH Advantage initiative, a mortgage program for specially designated manufactured homes with features comparable to traditional stick-built single-family homes. These manufactured homes can include interior features like drywall, energy- efficient appliances and upgraded cabinets in kitchens and bathrooms, as well as exterior amenities such as porches, garages, and architectural features like eaves and higher pitch rooflines. Once a manufactured house meets eligibility criteria, including construction, architectural design and energy-efficiency standards that are more consistent with site-built homes, an MH Advantage sticker will be affixed by the manufacturer for easy identification by lenders and appraisers.

Contractors know that manufactured homes have been architecturally like stick-built homes for years. This Fannie Mae program simply validates that quality for the mortgage industry and prospective homeowners alike.

Through MH Advantage, qualifying borrowers can secure financing with a down payment as low as 3 percent. Loans also feature cancellable mortgage insurance and can be combined with other Fannie Mae programs like HomeReady or HFA Preferred mortgages.

If you want to know more about MH Advantage, the latest Fannie Mae Appraiser Update provides tips for appraising MH Advantage homes, information about a revised policy for manufactured homes with additions, and updates on its condo project standards.

And the Urban Institute’s Housing Finance Policy Center posted a blog: New evidence shows manufactured homes appreciate as well as site-built homes. In their blog, the researchers look at new data available from the Federal Housing Finance Agency and determine that the prices of manufactured homes guaranteed by the government-sponsored enterprises perform similarly to those of site-built properties. This is great news for expanding affordable housing, since manufactured homes are one of the most affordable and underused types of housing. This new evidence suggests a need to reevaluate the presumption that manufactured homes do not appreciate at the same rate as site-built homes – a presumption that may be contributing to their low demand.

A photographer goes to a haunted castle determined to get a picture of a ghost on Halloween. The ghost he encounters turns out to be friendly and poses for a snapshot. The happy photographer later downloads his photos and finds that the photos are underexposed and completely blank.

Moral to the story: The spirit is willing, but the flash is weak.

Rob

Residential mortgage bankers are notoriously bad at actually retiring. They usually seem to come back as teachers, consultants, remodelers, etc. But plenty of people do retire, and per U.S. News the #1 place to retire is… Lancaster, PA? Bring a sweater.

Jobs

People’s United Bank has opportunities for talented mortgage loan originators to join its growing organization. “Our Mortgage Account Officers/Loan Officers are supported by an experienced team that creates an environment for growing your business and providing your clients excellent service and products. Positions are currently available in Queens, Staten Island, Rockland and Putnam Counties in New York. As an Assistant Vice President, Mortgage Account Officer/Loan Officer you will originate residential mortgages and home equity products through our retail branch network and self-generated referral sources. We are a portfolio lender offering a wealth of portfolio products to our customers. To learn more about these positions and to apply online, please visit our website or you can email your resume to Elise Saltsman. Join us and show what your know-how can do.”

GSF Mortgage Corporation (GSF) continues to expand the Single Close Construction Program. To date GSF has added over 300 Eligible Builders across the country. GSF is looking for Originators with experience in construction lending to help meet the demand of our Builder Partners. Programs offered are FHA-96.5% LTV, USDA-100% LTV, VA-100% LTV, and the recently added Conventional to 95% LTV. The program is also offered for FNMA High Balance Loans. All programs are single settlement without the need to requalify the borrower after initial closing. If you are an Originator with construction experience, please contact our VP of Retail, Frank Papaleo for information on the opportunity.

“Go for GOAT at PrimeLending. Are you currently headed toward GOAT (Greatest Of All Time) status? We’re here to help you find out in a matter of minutes by determining your GOAT Factor, a score that establishes whether you’re on path to become the Michael Jordan, Tom Brady or Serena Williams of the mortgage industry, or if you need to get on the right career track at PrimeLending. We’re a powerhouse who wants to be the best, surround ourselves with the best and work hard to get the job done right every time. If that sounds like you, contact Brian Miller at 469.737.5729 to get GOATing today.”

A thriving independent mortgage banker with a dynamic platform, excellent support, diverse product offerings, and exceptional, engaged leadership, is looking to expand in to the Colorado Springs market. Ideal candidate will be a seasoned Branch Manager with a minimum of five years’ experience in mortgage banking. Excellent leadership and recruiting skills a must. Send a confidential note of interest/resume to me for forwarding.

National MI continues with its growth and is excited to announce Jen Sopinski joined the Western Region, Northern California & Northern Nevada Management team on October 1^st. Jen comes to National MI with VERY recent MI experience, she’s worked in title and the credit side of our business. Jen brings strong customer relationships, MI experience and fantastic energy. Please feel free to reach out to Jen (916.804.7488).

PHOENIX, the premier advisor for Trading, Mortgage Services and Analytics, welcomes Jason Eisendrath as SVP of Trading to the PHOENIX MSR and Whole Loan desk to expand its senior management team and continue to provide expert trading advisory, operational support and strategic solutions.

Lender products & services

“Are you still using “dumb” documents? Only SMART (Secure, Manageable, Archivable, Retrievable and Transferable) Docs allow data and documents to travel as one, reducing downstream risks with liquidity and repurchase. SigniaDocuments is the only doc provider with an entire library of Category 1 SMART Docs because we understand the risks lenders face after the loan closes. Other doc providers only deliver a SMART note and only care about getting the loan closed. The truth is, all documents are important, and all documents are reviewed after closing, that’s why the diligence business exists. To learn more about SigniaDocuments, please contact us here, or email Mike Romano directly.”

In wholesale news, Atlantic Bay Mortgage Group® is continuing its expansion throughout the Southeast. Atlantic Bay, headquartered in Virginia Beach, is looking for growth-oriented brokerage companies, high performing mortgage teams, and companies with less than $500 million in sales who want to focus on production by removing obstacles to growth. Brokers who join Atlantic Bay experience growth rates in their personal production from 50 – 80 percent. Direct access to underwriting, secondary support, and realtor-focused marketing have all been drivers for increased growth. Two popular benefits of the Atlantic Bay way are simplicity in the compliance process and a mortgage banker assistant program. Atlantic Bay places great importance on culture, loving where you work, and giving back to the communities it serves. Email Justin Caplan to find out more about working at Atlantic Bay.

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 and training

The first AIME Fuse was this weekend in Las Vegas, with an impressive turnout including over 1,300 attendees. Among the presentations: Chair Anthony Casa announced their partnership with ARIVE, a complete mortgage ecosystem supporting local, independent broker expertise with cutting-edge technology. Brokers will be able to seamlessly interface with borrowers, lenders, and third-party vendors. For more information, email media@ARIVE.com.

Learn why a well-supported appraisal report has become a necessity for appraisers to garner repeat business and the impact that has on banks and lenders by attending the October Research Enhance Reports to Drive Your Profitability Webinar 2PM Oct. 23^rd. Rick Langdon, Chief Staff Appraiser from Wells Fargo Bank will discuss how those reports can be improved to make the process more efficient between banks, lenders, and appraisers. You will also hear Dustin Harris, Mentor/Coach from The Appraiser Coach teach appraisers the different ways they can improve appraisal reports.

Missed the Digital Mortgage Conference last month? No worry – members of the California MBA Mortgage Technology & Marketing Committee were there and have brought together some of the more exciting speakers and companies to talk to you about how they are changing the lending landscape, and what to expect in 2019. Hear from Guild Mortgage, HouseCanary, WikiRealty, and Seroka Brand Development in this FREE webinar on October 23^rd at 11AM (Pacific). Click here to register.

On Thursday, October 25^th at Wente Vineyards in Livermore, CA join me, the California MBA, Joe Garrett, and their President’s Council member Riivos for a CFO Peer Group Luncheon event. My colleague, Joe Garrett, and I will speak on planning for 2019, mergers and acquisitions and other top of mind issues for independent mortgage bankers. Please contact Susan Milazzo to make your reservation.

Register for the October 25^th, Buckley Sandler webinar with partners Amanda Lawrence and Andrew Louis as they discuss recent significant litigation and enforcement actions related to mortgage origination. From False Claims Act claims to discrimination claims to repurchase/indemnification claims, this webinar will provide an in-depth discussion of those key cases and how they impact mortgage originators.

In North Carolina, the Charlotte Regional Mortgage Lenders Association lunch will be held on November 1. Check it out!

The November 1^st MMLA Award and Installation Banquet is less than 2 weeks away. Check out a quick video to hear some highlights of what to expect. Invite your staff, coworkers and customers, register today.

On November 6^th, the MBA-NJ Webinar Series will focus on Demystifying Credit Repair: Your Tools for Closing More Loans, Saving Time and Building Referrals.

Join MBA St. Louis on November 8^th for Lunch and Program: The Changing Market and Marketing Strategies you can use to overcome the challenges.

It’s time to register for The UTAH Mortgage Expo, November 9^th in Park City. With top speakers, great hands-on sessions and a wealth of opportunities from exhibitors and sponsors, it’s a can’t-miss day.

Ditech offers a comprehensive training curriculum on ditech products and processes, to keep your staff informed of the latest developments in products, technology solutions, compliance issues and process improvements. Each of these programs is offered by our training and development staff monthly and is updated regularly to reflect recent changes in the industry.

Legal news

Eagle Home… Universal American Mortgage Company, LLC, based in Miami and operating as a subsidiary of Lennar Corporation, has agreed to pay the United States $13.2 million to resolve allegations that it violated the False Claims Act by falsely certifying that it complied with FHA mortgage insurance requirements in connection with certain loans. “…between January 1, 2006, and December 31, 2011, UAMC knowingly submitted loans for FHA insurance that did not qualify. The United States further alleged that UAMC improperly incentivized underwriters and knowingly failed to perform quality control reviews, which violated HUD requirements and contributed to UAMC’s submission of defective loans…” (The lawsuit is captioned United States ex rel. Kat Nguyen-Seligman v. Lennar Corporation, Universal American Mortgage Company, LLC, and Eagle Home Mortgage of California, Inc., 14-cv-1435 (W.D. Wash.)

Does anyone with clients (LOs, vendors, attorneys, etc.) know their client? Of course. UC-Hastings law professor Joan Williams makes the point in her new book “White Working Class” that two-thirds of Americans don’t have college degrees. That statistic drives home her premise that lawyers and other elite professionals are sorely out of touch with most Americans. This matters, at least for some attorneys, because those are the folks who elected President Trump, who desire steady jobs and solid futures for their families, and who, importantly, are being priced out of legal services.

How would you ask about compensation during a job interview without sounding greedy? Here’s how. And, under “legal tidbits,” Uber limo drivers are not employees under the Fair Labor Standards Act, a federal judge has ruled, handing Uber a win against drivers who sued the company for allegedly failing to meet minimum wage and overtime requirements.

Capital markets

New Residential, a regular issuer of bonds backed by nonperforming and reperforming mortgages, is readying its first deal backed by newly originated mortgages, according to Fitch Ratings.

The U.S. 10-year closed the week yielding 3.20% on a light trading day with most headline economic reports centering around China reporting slightly weaker than expected YoY growth (actual 6.5%; expected 6.6%) for Q3. Incidentally, the report was overshadowed by comments from several Chinese officials discussing measures for supporting China’s capital markets. China’s President Xi Jinping and President Trump have tentatively agreed to meet during the G-20 summit at the end of November. Elsewhere internationally, some Italian officials allegedly favor reducing Italy’s 2019 deficit target, and its government as until today to respond to the EU Commission’s request for more details regarding the Italian budget for 2019.

In the U.S. the markets are looking for some good news to start the week after September existing home sales hit their lowest sales level since November 2015 due to supply and affordability constraints in this rising rate environment. We begin the week with only the Chicago Fed National Activity Index for September (down to +.17). Tomorrow’s only action is the $38 billion 2-yr Treasury note auction results at 13:00 ET. Wednesday, things pick back up with the Weekly MBA Mortgage Index, August FHFA Housing Price Index, September New Home Sales, and the September Beige Book. There are also central bank decisions due from the BoC and Riksbank.

Thursday sees September Durable Orders, Durable Orders -ex transportation, weekly Initial Claims, September Advance International Trade in Goods, September Advance Retail Inventories, September Advance Wholesale Inventories, September Pending Home Sales, and (abroad) central bank decisions from the ECB and Norges Bank. The week concludes with Advance Q3 GDP and the Q3 GDP Deflator, and Final October Michigan Consumer Sentiment Survey. We begin the week with Agency MBS prices (and therefore rate sheets) a smidge better/higher from Friday’s close and the 10-year yielding 3.19%.

This is a frightening statistic, probably one of the most worrisome in recent years: 25% of mortgage bankers and Realtors in the country are on medication for mental illness. That is scary – it means that 75% are running around untreated.

Rob

“Rob, what do you hear about conventional conforming loan amounts?” That is a timely question. Historically the FHFA, and with it Freddie and Fannie, announce official loan levels for the following year soon after Thanksgiving. (There are always rumors prior.) The loan limits are based on home prices around the nation. After 2008, despite the prices in many areas dropping, the Agencies did what they could to maintain stability. Prices in most areas have since rebounded, and so it is expected by many that we’ll see an increase in the conventional conforming loan limits. But there is noise out there of the FHFA scaling back its presence and market share. This may take the form of eventual cut backs on programs (should Fannie & Freddie support landlords buying non-owner houses?). Or will they cut high balance loan limits? Changes take a while, so stay tuned.

Lender products and services

Are you looking to tap into a new revenue stream? American Advisors Group (AAG) (NMLS# 9392) has a solution: Jumbo Reverse Mortgage loans. With Jumbo loans most property types are eligible, which means you can take advantage of a new revenue stream while helping your clients obtain millions. Your borrowers can acquire more equity at a fixed interest rate, with access to all loan proceeds in one lump sum or monthly distribution options. Plus, no mortgage insurance is required! Contact AAG today to learn more.

Do you know if your subservicer is prepared to handle the aftermath of a hurricane? With hurricane season being an annual threat, you need to make testing the strength of your subservicer a priority. Don’t wait until it’s too late! Here’s a new checklist from TMS that goes through everything your subservicer needs to be doing to successfully navigate a crisis. It’s important that your borrowers get the same type of white glove service when they’re going through one of their most difficult times, as when you’re trying to win over their business. So, how did your subservicer score?

New Penn Financial continues to broaden its proprietary lineup of non-QM products with SmartFunds, the newest addition to the SMART series. The product is designed for borrowers with significant assets sufficient to cover the cost of the loan payments and other monthly obligations. Loans are available in amounts up to $3 million with maximum loan-to-value of 90 percent. The funds may be used for primary residences and second homes. Please contact your New Penn Sales team for more information or visit Go New Penn and New Penn Correspondent.

At this year’s MBA, one topic of discussion was how the industry can develop managers to lead teams of powerful producers. We assume successful loan officers will naturally transition into great managers, but the skills for these two positions could not be more different. Why should we expect a new manager to be an effective leader with training? On this episode of Inside the Mortgage Mind, a XINNIX Podcast, mortgage training expert Ralph Remy discusses the difference leadership training can make for the performance of a manager. CLICK HERE to listen! Also at the at the MBA this year, XINNIX shared how you can engage with its award-winning XINNIX SYSTEM^TMin a whole new way. This proven platform includes training, accountability, and coaching to drive results with clearly defined achievement and production milestones for mortgage professionals at every stage in their career. Click here to learn how to engage!

JMAC Lending is one of the few lenders that specializes in solutions for investors with no income verification, including 40-year interest-only options for properties that do not have positive cash-flow. “JMAC’s Investment Property solutions (Debt Service Coverage Ratio) for non-owner properties is the easiest way to finance investors with difficult income profiles – such as multiple businesses and properties – without the need for tax returns or bank statements, and no 4506T,” JMAC Lending’s Regional Sales Manager Al Gruzdis says. “Loan amounts to $5M are available, with no job requirement and only one-year mortgage or rental history.” In addition, JMAC provides specialty loans for Foreign Nationals. For more information and to submit a scenario, contact Al Gruzdis (949.345.8860). Click here to learn more.

Last week was a MONUMENTAL gathering of mortgage lenders in Washington, D.C. for the MBA Annual Convention. As MBA Chairman Chris George said, “Change is in the air in the mortgage industry and this means one thing: Opportunity.” The pace of innovation today is faster than ever before, and innovation speaks of breaking through the status quo. For the past several years, mortgage lenders have been in self-preservation mode, but it was crystal clear at this year’s MBA Annual Convention that everyone is focused on improving the customer experience. Your loan officers need technology that will make their jobs easier so they can focus on building relationships. How does your tech stack help your loan officers improve their relationships? Read the Total Expert blog: MBA Annual Convention Key Takeaways.

The 2018 edition of the Originator Connect Conference was out of this world! The conference, which took place the last week of August in Las Vegas, is an amazing event solely focused on the origination community. It should be on the short list of must-attend events for all performance-driven lending teams and loan officers. Whether you attended or not, you’re in luck because the Originator Connect organizers teamed up with their friends at Maxwell to release their complementary “2018 Originator Connect Official Recap,” an exclusive to all Rob Chrisman readers today. Inside you’ll find a conference overview, deep dive into top presentations, and guidance to improve your business today. Download your exclusive eBook copy today!

Do you have as many compensation plans as you do loan officers in your organization? That was the situation at Summit Funding, a fast-growing retail mortgage lender that employs nearly 300 LOs and originates more than $4B in annual loan volume. Calculating commissions in Excel for well over 200 unique plans was a time-consuming task that also raised compliance concerns for Roy Mall, Summit’s EVP of accounting, finance and servicing. One conversation with LBA Ware founder Lori Brewer at an industry conference was all it took to convince Mall that her company’s CompenSafe was the ideal platform for automating compensation calculation at Summit. Download the free case study to learn how CompenSafe helped Summit eliminate its monthly payroll scramble while giving employees transparency into their compensation and ensuring compliance with California’s labor laws.

On Tuesday, October 30 at 10:00 am (PST) Sierra Pacific Mortgage will share how S.M.A.R.T. goal setting can bring structure and trackability into your future goals. This is a perfect time to learn ways to use the S.M.A.R.T. process to increase your individual and professional goal setting skills. That means creating goals that are Specific, Measurable, Attainable, Relevant and Timely. Finish the year out strong and start 2019 with a bang. Register today.

Lending solutions provider Data Facts recently announced a webinar to help mortgage lenders expand their business and increase market share by 30% in 2019. This presentation offers several take-aways; embracing alternate credit products, strengthening opportunities created from mobile devices, creating a delightful customer experience, implementing ways to let the customer “drive”, and offering borrower education. The free webinar is on Wednesday, October 24^th at 10am CT. Register here. Keep Data Facts in mind as a trusted partner you can rely on for credit reports, fraud products, tax return and social security verifications, flood certs, lead gen products, and more. Talk with a live person and take advantage of their

personalized support. By offering a variety of seamless LOS integrations (Encompass, Calyx, Byte, etc.) and a 100% US based customer support team, they help their lending clients close more loans, faster and easier.

Credit changes – you be the judge

Last year, more than 1.5 million personal loans were given to people with credit scores below 601, on a scale that tops out at 850, according to TransUnion. That is the highest number in more than a decade.

According to recently released research by Fannie Mae, consumer’s understanding of actual mortgage qualification criteria revealed only 5 to 16 percent of respondents knew the correct ranges for key criteria. However, lenders were cited as the most influential source of mortgage advice highlighting the important role lenders play and supporting the value of ongoing education and outreach. The complete study and additional insight are currently available.

Children and credit? A new law went into effect that gives parents the ability to check their children’s credit reports and freeze it at no cost. The law was in response to the huge data breach at Equifax.

Angel Oak Mortgage Solutions has made a change to its Investor Cash Flow Program. Your borrowers can now qualify based on the property cash flow. No personal income required. Visit www.angeloakms.com for more information.

Excelerate Capital has new enhancements across all its NonQM products. Contact Rachel To for product specifics.

ACC Mortgage offers 95% Jumbo Purchase with no MI. Contact Kelly Brown for details.

AmWest Wholesale is promoting “WAVE GOODBYE TO THE APPRAISAL” with their newly released AmWest Advantage Program – Appraisal Waiver (AW) Option. Details include: Max 70% LTV; Min. 700 FICO; Up to $1MM loan amount; Primary Res only; Purch and R/T; 1-unit SFR, PUDs and Condos only.

Citadel’s Jumbo Loans offer loan amounts up to $5 mil with no government high balance restrictions. Featuring various options such as full doc or bank statements, stated or DSCR.

Are you looking for a home for your TBD purchase? ACC Mortgage’s Kelly Brown can help.

Pacific Bay Lending Group has rolled a new product: Pac Bay Stated Plus. Qualify your Self- Employed borrower using only 1 Month’s personal bank statement. Rate starts at 4.875% on a 5/1 Arm and includes Purchase, Rate and Term, and Cash Out.

“Non-traditional loans”? The Lending Answer has its SIVA Simple, an Owner Occupied, 30 year fixed, 60% LTV, starting at @ 5.5%. Or how about its SIVA Preferred? a Mini Asset Depletion Owner Occupied loan with up to 70% LTV, starting @ 4.99%. If you are looking for additional options, contact Arash Asghari.

No Leases, No Reserves Required for Other REO on Jumbo IV with Parkside Lending. Contact Dirk Nelson.

PRMG announced the release of its Ruby Jumbo Product which allows for LTVs up to 90% with no MI required. A pre-recorded training webinar is available to learn more.

PRMG has released its Expanded Access for Wholesale and Correspondent Channels. This product offers Non-QM options including reduced derogatory credit seasoning, interest only, bank statement for qualifying, foreign nationals, expanded DTI ratios up to 55%, investment properties, low credit scores and expanded LTVs with conforming and jumbo amounts allowed. The complete profile can be accessed with PRMG’s Product Profiles.

The Caliber Portfolio Lending suite is comprised of competitive loan solutions for borrowers whose background may not resemble the average homebuyer yet demonstrate ability to repay. Find out about options available such as Elite Access, Premiere Access, Homeowners Access, Empire Access and more. Click this link to view Kris Cummings’ website.

LoanStream now offers Lender Paid Comp up to 2.75% on Non-Prime Loans and YSP up to 2%. Available Products include: LTV’s to 95%, loan amounts to $10mm (ask for exceptions in higher cost areas), Bank Statement Programs (12 & 24 Month Options), down to 600 FICO, one day out of settled BK, foreclosures, & short sales, DTI options up to 55%, non-warrantable condos and Interest Only.

Have you experienced an agency or jumbo fallout? Find your Just Missed Agency Solution with LoanStream.

Wells Fargo Funding has expanded its Non-Conforming policy to allow delayed financing for second homes and investment properties in Texas.

Flagstar’s guidelines for cash-out refinance waiting periods for LLC properties have been updated to allow time held in an LLC controlled or majority owned by the borrower(s) to count towards the borrower’s six-month ownership requirement.

Effective for loans originated on or after January 1, 2018, CFPB’s Final Rule updates the dollar amounts for provisions implementing amendments to Truth-in-Lending Act (TILA) under the Home Ownership and Equity Protection Act (HOEPA) and the Dodd-Frank Act. Accordingly, Sun West has updated its implementation guide.

Mountain West Financial Wholesale posted an Alert regarding CalHFA Increases and Simplification of Income Limits.

MWF shared that Loan Product Advisor has now been updated to automatically calculate the additional required reserves when the subject property is a second home or an investment property. Manual calculation of reserves is no longer required, when the borrower has additional financed second homes or investment properties. Required reserve amounts will automatically be included in the Required Reserves field on the Loan Product Advisor Feedback Certificate.

If your borrower is about to start a new job and has a guaranteed contract for employment and the loan meets ditech and agency guidelines, the income would be acceptable for qualifying purposes. refer to the ditech Client Guide and Product Summaries for complete program requirements.

LHFS Wholesale posted a bulletin regarding Updated & Simplified Income Limits for all CalPLUS 1st Mortgage Programs.

Risk Reduction Mortgage Corp, a startup Fintech mortgage product provider, launched its signature solution, Risk Reduction Mortgages. Its new product will be made available to homeowners and creditors starting in 2019. “Risk Reduction Mortgages Help Homeowners Diversify Their Largest Asset (Home), Reduce Foreclosure and Other Risks, and Save Thousands in Annual Fees. Providing Affordable Path to Homeownership for 70% of Market Unable to Pay Standard 20% Down Payment.”

Capital markets

U.S. Treasuries began the week on a flat note, the 10-year closing yesterday’s session unchanged from Friday’s close at 3.20%. In the U.S. stocks are heading down, and the reasons are pushing bond prices higher and rates lower. Globally, in China President Xi Jinping again pledged support to the private sector while China’s Ministry of Finance released a plan for personal tax cuts, the Italian government responded to the EU, saying plans for a 2019 deficit of 2.4% remain intact and Italy can reduce the deficit during the fiscal year and that Italy has no plans to exit the euro, Bank of Korea Governor Lee Ju-yeol signaled that a rate hike is likely in the near future, and another meeting between President Trump and North Korea’s Chairman Kim Jong-un is being planned for January.

In the U.S. plummeting stocks are grabbing the headlines – the market is wondering if Trump’s trade war will push us into a recession. We’ve had the Philadelphia Fed’s nonmanufacturing indices for October (37.2). Coming up are Redbook same-store sales for the week ending Oct 20, the Richmond Fed’s Manufacturing and Services indices for October, and the Treasury auctioning $40 billion 1- and $25b billion 2-month T-bills, followed by $38 billion 2-year notes. We also have five Fed speakers, with Minneapolis’ Kashkari, Atlanta’s Bostic, Dallas’s Kaplan, Chicago’s Evans, and Kansas City’s George all taking the stage. Tuesday starts with rates lower: the 10-year is yielding 3.14% and Agency MBS prices are better by .250.

Instead of the usual joke… Robocalling is becoming an epidemic. How? This article spells it out. “The FCC encourages consumers to let unknown calls go to voicemail, or to hang up on calls that ask them to press a button to stop receiving future calls. The FCC also recommends joining the National Do Not Call Registry, which prevents callers from being bothered by lawful telemarketers. But don’t expect that to fix everything. While the Do Not Call list will stop calls from legitimate businesses, experts said illegal callers have no problem ignoring the list.”

Rob

Lenders, investors, and servicers don’t like bankruptcy, and for good reason. Thank you to Brian B. up in New Jersey who sent along this note about how courts are beginning to try to stem the tide of serial debtors who file multiple petitions for bankruptcy protection. “Recently, the U.S. Court of Appeals for the Seventh Circuit issued an opinion that serves as both a warning to serial filers and a potential remedy for lenders.”

Jobs, promotions, business opportunities

Fiserv/PCLender is looking for a senior position to manage business strategies and execution of technology integrations to the industry’s leading providers. Manager will supervise relationships with third party suppliers to understand and implement new/additional services that can be offered to LOS Clients. Send inquiries to Resumes@PCLender.com or apply online for R-10097873

It’s possible for LOs to grow volume and gain market share, despite this challenging environment. Movement Mortgage reports year-over-year growth of 30% to 60% in markets such as Houston, Philadelphia, Kansas City and Northern California. How? Movement credits its market leadership combined with a unique use of technology, industry-leading process, marketing tools and coaching support. When those resources are matched with smart, innovate loan officers, rapid growth is happening. Learn more about building a career on purpose at Movement by visiting https://movementlo.com/ or emailing Director of Talent Acquisition Matt Hill.

A national title company is looking for lenders that are interested in partnering to open a title and settlement company. Lenders must be closing over 50 units a month. Please email titlejv@gmail.com with information on your company.

NotaryCam announced that the company has hired digital mortgage specialist Kelly Purcell as Executive Vice President of Marketing and Business Development.

Lender products & services

Lending solutions provider Data Facts recently announced its webinar “How to Increase Your Business by 30% in 2019” to help mortgage lenders expand their business. This presentation offers several take-aways; embracing alternate credit products, strengthening opportunities created from mobile devices, creating a delightful customer experience, implementing ways to let the customer “drive”, and offering borrower education. The free webinar is today at 10AM CT. Register here! Keep Data Facts in mind as a trusted partner you can rely on for credit reports, fraud products, tax return and social security verifications, flood certs, lead gen products, and more. Talk with a live person and take advantage of their personalized support. By offering a variety of seamless LOS integrations (Encompass, Calyx, Byte, etc.) and a 100% US based customer support team, they help their lending clients close more loans, faster and easier.

The term “mortgage point-of-sale” has been making headlines a lot lately – and for good reason! Mortgage lenders of all shapes and sizes have been flocking to next-generation point-of-sale solutions like Floify to streamline and secure their origination process and stay on the leading edge of this increasingly competitive space. In fact, a recent Fannie Mae survey found that 40% of lenders have already deployed some form of mortgage technology to automate the application process, prevent fraud, predict a borrower’s creditworthiness, and more. Additionally, by automating common loan origination tasks with a versatile solution like Floify, lenders have reduced loan processing time by up to 15 hours/loan and nearly doubled their profitability – all without hiring additional staff. If you’ve been considering incorporating a leading point-of-sale solution like Floify into your lending operation, now is the perfect time to take advantage of this comprehensive system. Request a demo to learn more!

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

Looking to break through the clutter of Non-QM options? Work with SG Capital Partners, who offers simplified loan solutions across the entire Non-Agency spectrum! SG recently announced new Expanded Access guideline updates launching Nov 1^st. These changes include increased bank statement LTVs up to 90%, increased loan amounts up to $3M, and simplified review options for business bank statements. Partnering with SG also provides clients access to a collaborative product development team, specialized training for UW’s/Loan Officers and direct access to a senior credit team for loan structuring and help with scenarios. Contact SGCP today to learn more!

M&A & investor shifts

There are plenty of deals going on out there, large and small. Some public, some private, some merely hinted at. (For example, why would Maryland’s Corridor be taking applications under the SWBC name, but without a formal announcement?) One seasoned vet likened the lender M&A environment to, “Owning a mortgage company, for some, will be like owning a farm – you do it until you run out of money.”

On the banking side of thing, in the last week or two there have been plenty of announcements. (With bank stocks pummeled recently, it will be interesting to see if the steady stream of deals shifts: banks will be cheaper to buy, but the value of existing bank’s capital is also lower.) Investar Bank ($1.7B, LA) will acquire Mainland Bank ($131mm, TX) for about $19.9mm in stock (100%). First Merchants Bank ($9.7B, IN) will acquire Monroe Bank & Trust ($1.3B, MI) for about $290.9mm in stock (100%) or about 2.4x tangible book. In California Exchange Bank ($2.6B) will acquire the trust department of First Northern Bank ($1.2B). First Interstate Bank ($12.2B, MT) will acquire Idaho Independent Bank ($725mm, ID) and Community 1st Bank ($130mm, ID) in separate transactions. First Interstate will pay about $181.3mm in cash (3%) and stock (97%) for Idaho Independent or about 2.49x tangible book. First Interstate will pay about $21.5mm in cash (3%) and stock (97%) for Community 1st or about 1.55x tangible book.

(As a quick aside, the STRATMOR Group is interested in speaking with lenders doing as little as $20-$50 million a month, below what some M&A firms are interested in pursuing – shoot Senior Partner Garth Graham an email if you just want to hear what your options are.)

U.S. Bank Mortgage Correspondent’s customers learned that U.S. Bank is reorganizing its Correspondent sales team into three regions: West, Central and East. “It’s important to note while our organizational structure will no longer include a National Accounts Region, the realigned team under West, Central and East Regions, provides for strong national coverage via Account Executives aligned with defined territories in all 50 states… With the realignment, some of you may have new U.S. Bank Account Executives. If so, you will hear from us immediately.”

The bond markets

In the secondary markets the Agencies are doing deals, laying groundwork for a single security, and transferring credit risk away from taxpayers to willing buyers. Originators should know that all these help rates for their borrowers. And next year the secondary markets, and with them the primary markets as beneficiaries, can look forward to the single security!

On October 5, Freddie Mac priced a new $1.1 billion offering of Structured Pass-Through multifamily mortgage-backed security certificates (K Certificates), which are expected to settle on or about October 12, 2018. There are five offered classes, with yields ranging from 3.51% to 5.49%, and Freddie Mac retaining 50% of Class X3. The K-081 Certificates are backed by corresponding classes issued by the FREMF 2018-K81 Mortgage Trust (K-81 Trust), which will also issue certificates consisting of the Class X2-A, Class X2-B, Class B, Class C, Class D, and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-081 Certificates. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

On October 2, Freddie announced the sale of 3,247 delinquent non-performing loans (NPLs) from its mortgage investments portfolio, totaling $569 million. The loans are currently serviced by Specialized Loan Servicing LLC. and the transaction is expected to settle in December 2018. Bids are due from qualified bidders by October 16, 2018 and are offered as three separate pools of mortgage loans, consisting of mortgage loans secured by geographically diverse properties. The loans have been delinquent for over two years, on average and the borrowers have likely been evaluated previously for or are already in various stages of loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. Mortgages that were previously modified and subsequently became delinquent comprise approximately 55 percent of the aggregate pool balance. The aggregate pool has a loan-to-value ratio of approximately 78 percent, based on Broker Price Opinions (BPO). To date, Freddie Mac has sold $7 billion of NPLs and transacted $43 billion of RPLs consisting of $27 billion via fully guaranteed PCs, $14 billion via Seasoned Credit Risk Transfer (SCRT) senior/sub securitizations, and $2 billion via Seasoned Loans Structured Transaction (SLST) offerings.

On October 2, Fannie Mae priced a $918 million Connecticut Avenue securities risk sharing deal, its sixth credit risk sharing transaction of 2018 under the CAS program. CAS Series 2018-C06 is scheduled to settle on October 10, 2018 and is designed to share credit risk on its single-family conventional guaranty book of business. The reference pool for CAS Series 2018-C06 consists of more than 105,000 single-family mortgage loans with an outstanding unpaid principal balance of approximately $25.7 billion. The loans included in this transaction are fixed-rate, generally 30-year term, fully amortizing mortgages and were underwritten using rigorous credit standards and enhanced risk controls. Fannie Mae will retain a portion of the 1M-1, 1M-2, 1B-1, 2M-1, 2M-2, and 2B-1 tranches to align its interests with investors throughout the life of the deal. Fannie Mae will retain the full 1B-2, 2B-2, 1A-H, and 2A-H tranches. With the completion of this transaction, Fannie Mae will have brought 29 CAS deals to market since the program began, issued $35 billion in notes, and transferred a portion of the credit risk to private investors on over $1 trillion in single-family mortgage loans as part of the CAS program. Since 2013, Fannie Mae has transferred a portion of the credit risk on approximately $1.5 trillion in single-family mortgages through all its risk transfer programs.

The same factors are pushing stocks and bonds these days. Looking at rates, the U.S. 10-year closed yielding 3.17% at the end of yesterday’s trading, which also saw weakness in equities listed in China and Hong Kong. It was a light economic day with a lot of Fed speak, notably Atlanta Fed President Raphael Bostic describing the economy as strong, noting it does not need support from monetary policy currently. The school of thought from many FOMC voters seems to be the Fed is still “a few” rate hikes away from a neutral stance.

Mortgage applications from the MBA for the week ending October 19 hit this morning: higher by nearly 5% but, when adjusted for the Columbus Day holiday, they aren’t as rosy. Next up is the FHFA Home Price Index for August at 9AM ET. Preliminary October Markit Manufacturing and Services PMIs will be released at 9:45am, with both components expected to decline. September new home sales at 10AM ET are seen declining. Today also sees three scheduled Fed speakers: Minneapolis President Kashkari, Cleveland’s Mester, and Fed Governor Quarles. We also receive monetary policy decisions from Sweden’s Riksbank and the Bank of Canada, which is expected to hike rates by 25bp to 1.75%. Finally, the September Beige Book is due out at 14:00 ET. With that as a backdrop we begin Hump Day with rates lower versus Tuesday night: agency MBS prices are better by .125 and the 10-year is yielding 3.14%.

Why Pumpkins Are Better Than Men

1. Every year you get a brand-new crop to choose from.

2. No matter what your mood is, pumpkins are always ready to greet you with a smile.

3. One usually makes a better pie.

4. They are always on the doorstep there waiting for you!

5. If you don’t like the way he looks, you just carve up another face.

6. If he starts smelling up your place, you can just throw him out.

7. From the start you know a pumpkin has an empty, mush-filled head to begin with.

8. A pumpkin is turned on (lit-up) only when you want him to be.

Rob

I can’t keep track of the rumors out there! The IRS ruled on the tax treatment of business meals? (True.) Congressional Bank buying McClean Mortgage? (Rumor.) A loan officer at Umpqua stealing a processor’s lunch from the lunchroom refrigerator? (Still researching.) Wall Street firms increasingly buying loans directly from lenders? (True – but remember 2006?) Fannie’s Beth Milstein retiring next year? (True.) Stearns buying Citywide? (Ask Stearns.) Every week someone asks me about loanDepot’s future. (Don’t ask me, ask loanDepot!) Pressure being put on the CFPB/BCFP to change LO comp rules? (True.) Yup, lots going on.

Employment

Vendor Surf, a tech startup that is revolutionizing the sourcing of vendor partners, is looking to hire a sales leader to build out the network of vendors on its B2B vendor search engine platform. The ideal candidate will be a seasoned sales executive with a minimum of five years sales experience. Excellent leadership and communication skills a must. Contact Craig Leabig for more information. Didn’t win a booth prize for dropping your business card in a fish bowl at last week’s MBA conference? The folks at Vendor Surf are giving you another chance to win. They are giving away a Sonos Play:5 and gift cards ($250 Kendra Scott, $250 Visa & $100 Massage Envy.) Click here to register: info.vendorsurf.com/2018-Conference.

“When it comes time to pivot in your career, it’s important to work with a company that offers full transparency from day one — while also allowing you to originate from day one. That’s PrimeLending, and our best-in-class recruiters are there every step of the way to make your transition quick and seamless. Our team features powerhouse recruiters in every region, including Scott Lacy and Chris Morgan, who have worked in the mortgage industry for a combined 20 years. Scott, who works with Bret Head in Mid-America, and Chris, who partners with Dawn Robinson in the Southwest, are industry experts who put your needs first, deliver timely results and set you up for success. PrimeLending empowers you to discover your best. If you’re ready to close more loans and experience stability like never before, contact Scott or Chris today!”

Lender products and services

As origination volumes and margins continue to compress across the industry, to achieve profitability, or even remain in business, lenders will need to focus on one primary thing: Stop originating loans that you lose money on. With dropping originations, we are no longer in the unit volume business, we are in the revenue business. BBM Enterprise 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. As experts in origination marketing we focus on revenue and profitability, not units. Our average loan amount for active FHA/VA applications exceed $350K and a net revenue after marketing of nearly $13,000. If your marketing is not reaching these levels of performance than let our data experts show you how a targeted marketing strategy focused on revenue can change the trajectory of your company. To learn more about BBM Marketing Services and about becoming an approved origination partner contact Bill Senteno.

The Compliance Group (TCG), the premier nationwide compliance and quality control organization for the financial services industry, is pleased to announce the addition of Jeffrey Flory as SVP of Sales. Flory brings a wealth of diversified industry experience to TCG as a results-driven sales and business development executive. Flory has established himself as a client focused leader capable of building long lasting partnerships and helping clients achieve effective organizational change through technology and operational excellence. TCG is a service-oriented company supported by unrivalled expertise. The TCG mission, since inception, is to provide quality service to clients, while offering cutting edge solutions that resolve the complexities of today’s compliance and credit risk. Applying decades of compliance experience, expertise and common sense, TCG assists clients in easily navigating today’s evolving regulatory channels.

A few weeks ago, Maxwell announced a groundbreaking new mortgage product called ApplyID API. With consent from the borrower, ApplyID gathers their information from Maxwell’s network of data providers to pre-populate loan application fields, like personal information, employment history, income, real estate owned, financial assets, and more. The API empowers digitally-savvy lenders to create their own borrower experience leveraging data to increase application throughput and shorten time to underwriting. It’s incredible to see the evolution in our industry. To those of us who still remember the paper loan application forms, who would have thought we’d get rid of the 300+ fields to fill out in a 1003? You can explore more information on Maxwell’s ApplyID API here.

Total Expert will be hosting five events around the country called Accelerate 2019 including stops in San Francisco (Nov. 6), Chicago (Nov. 8), Dallas (Nov. 13), Charlotte (Dec. 4) and Boston (Dec. 6). At Total Expert’s Accelerate 2019, you’ll learn best practices to drive net new revenue with marketing, how to increase profits and productivity with customer journeys and strategies to “level up” on recruiting and retention of top talent. This event is designed for growth-minded marketing and sales managers and executive level leadership within the banking and mortgage industries. Space is limited, so request your invitation for this exclusive, one-day event and get prepared to Accelerate into 2019.

The Correspondent division of New Penn Financial is pleased to announce its newest team members. Michael Goldman (VP National Non-QM), Tom Winston (Regional Account Manager), Scott Smedley (Regional Account Manager) and David McPherson (Regional Account Manager). To learn how New Penn Financial can be your trusted Correspondent Lending partner, contact the Correspondent team. For more information about New Penn’s expansive product portfolio, visit www.newpenncorrespondent.com.

Loan Officers! Have you ever had a loan condition you did not anticipate being added to your borrower requirements at underwriting? Maybe one that was not on the AU approval? Do you need some advice from an expert? Well, have no fear, The Rule Tool is here! For only $20 a month, you can contact us for insight on loan conditions or to ask for advice on how to structure a deal! Our team of knowledge experts is ready to help you shine and make deals happen! Just this month, Pete Moran with Supreme Lending said, “You guys really helped save a deal.” You too can have an Underwriting expert in your pocket. Let The Rule Tool be your advocate by getting you the answers you need, FAST! Click here to sign up today!

I know I’m not the only one who thinks it’s time for some disruption in the subservicing space. Lenders shouldn’t feel stuck with a subservicer who doesn’t treat their borrowers as they would. The two should blend seamlessly, and with technology, it’s completely possible. The award-winning technology SIME, Servicing Intelligence Made Easy, sets the new standard in subservicing that lenders should start to demand. Watch this new video from TMS to learn the business value that a subservicer can bring to a lender’s greatest asset – its customers.

The 2 for 1 discount for you to attend Ron Vaimberg’s nmpU Purchase Bootcamp, taking place on Thursday and Friday, November 1st & 2nd in South Beach Miami, Florida ends tomorrow, Friday, October 26th. If you are being impacted by the changing market conditions, then attending the nmpU Purchase Bootcamp could be the solution you are looking for. Only 50 originators are permitted to attend this high-level program. You will leave the seminar equipped with the skills and strategies that will increase your production without any marketing cost. nmpU Purchase Bootcamp gives you a 100% Money Back Guarantee. For more information visit www.PurchaseBootcamp.com. Use code “CHRISMAN” and you will save an additional $200 off your attendance.

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.

Credit union news

Are you one of the bank or independent lenders who doesn’t pay much attention to credit unions? Do you think they are only competition for community banks? You might want to give CUs a second thought and read, “The Rise of the Credit Unions” in the just-released October issue of STRATMOR Group’s Insights Report. This article grew from one of my STRATMOR blog posts of the same name and goes into detail on the advantages credit unions have in this current rising rate environment. When a consumer becomes a CU member, they become a relatively easy target for a mortgage sale, and CUs are attracting many new members with their low-cost banking solutions — including competitively priced equity loans and HELOCs — better-than-bank interest rates on deposit accounts and their high-touch “Members First” customer service. The article also outlines the advantages and disadvantages credit unions face, along with growth strategies for credit unions to consider. Click here for the October Insights Report.

Legal update

Remember the news earlier this year regarding Diamond Residential Mortgage? The Illinois AG issued a press release regarding the IDFPR’s investigation into former DRMC employee, Chris Schaller. DRMC issued, “The events underlying the settlement were isolated to a single branch under the direction of a single former employee, Chris Schaller, who was promptly suspended and terminated immediately after we completed a thorough internal investigation. As the Attorney General’s public statements make clear, we have cooperated with the regulators throughout their investigation. Moreover, DRMC no longer employs any individual identified as being connected to Schaller’s misconduct.

“Collectively, the IDFPR’s and our investigation reveal that Schaller conducted a number of outside activities that may have harmed persons unrelated to DRMC. To a lesser extent, Schaller and certain former Springfield employees working under him may have violated company procedures with respect to as many as nine (9) loans over an 8-year period. Although the total number of affected loans was small, even one loan written without consumers’ best interests in mind is unacceptable to us. For this reason, and in light of Schaller’s conduct outside his duties at DRMC, we worked closely with the Attorney General and the IDFPR to structure a $1.2 million remediation fund for affected Illinois consumers – including those who were not DRMC customers. Furthermore, we have taken steps to improve our compliance management systems and enhance policies and procedures across the company to ensure similar incidents do not happen going forward.

“Since inception, DRMC has closed over 35,000 loans valued at $8 billion without incident. We look forward to putting this situation in the rearview mirror as we keep our full focus on serving our valued customers.”

Capital markets

AmeriHome is pleased to announce the official launch of its Non-Delegated Channel. “As a Non-Delegated Correspondent client, you will have access to AmeriHome’s Agency, Government and Core Jumbo products without the underwriting risk or resources. In this new channel you can expect the same service levels and relationship management culture that has made AmeriHome the 4^th largest Correspondent Lender in the country. Email CLsales@amerihome.com for more info, or reach out to your regional AmeriHome Non-Delegated Sales Representative.”

The U.S. sank yesterday to 3.12% as weakness in the euro after eurozone economies reported disappointing flash Manufacturing and Services PMI readings for October drove investors towards the dollar and away from Treasuries. Other market headlines revolved around the Federal Reserve’s Beige Book for September (economic activity “expanding at a modest to moderate pace”). Consumer spending increased at a modest pace while consumer prices and wage growth both increased at a modest to moderate pace. Internationally, Italy’s Cabinet Undersecretary Giancarlo Giorgetti said that Italian banks may need to recapitalize based on the spread between Italy’s and Germany’s 10-yr yields.

Today’s busy calendar kicked off with the latest policy decision from Norges Bank to raise rates in early 2019. The ECB statement was released (sticking to stimulus exit plans). The markets will listen to the ECB’s view on the recent market volatility in addition to how the reinvestments from their massive EGB portfolio will be deployed. In the U.S. we’ve had Durable Goods (+.8%) and weekly jobless claims (215k, as expected). At 10am, we receive September Pending Home Sales. We also have some Fed speak from Richard Clarida. Rates are higher versus Wednesday’s close, with agency MBS prices worse .125 and the 10-year yielding 3.14%.

10 Things That Sound Dirty On Halloween, But Aren’t… (Warning: Rated PG? R? I don’t know.)

So… What’d you get in the sack?

Once you get under the sheet, start moaning and groaning!!!

Just hop on that broomstick and ride it!

Those small suckers are gone in a few licks!

I got the best piece from that house.

Quit screwing around on the porch!!!

Stick your hand in and guess what you’re feeling….

It was so filled and heavy, I had to use TWO hands!!

They’ll suck you dry if they get their teeth in you.

I bobbed and bobbed but couldn’t get my mouth around it!

Rob

“Well, I’m a standing on a corner in Winslow, Arizona, and such a fine sight to see. It’s a girl, my Lord, in a flatbed Ford, slowin’ down to take a look at me.” What if you want to put down roots there? The town, 3 and a half hours northeast of Phoenix, has plenty of reasonably-priced houses. It’s high desert, and a casual glance indicates that every tree in the yard adds about $50k to the value. Not much has changed there in the 46 years since that song was released, unlike our industry where there’s news every day. The latest is JPMorgan Chase’s downgrade of Ellie Mae after earning forecasts failed to meet expectations, while also citing lower home purchase volume, rising interest rates, and lack of entry-level supply for first-time home buyers, the kind catered to by many lenders who use Ellie Mae’s electronic origination platform Encompass.

Jobs & promotions

If you’ve bumped into REMN Wholesale’s Carl Markman during his coast-to-coast travels, you may have seen some new faces beside him. To accommodate increased interest from its broker partners, REMN has added Caleb Espinoza, Granville Anderson, and Clay Carr, as account executives in Florida, Louisiana, and the Carolinas, respectively. In addition to new AE’s, REMN has other big news to share. REMN now offers the Simple Access program for non-QM loans. These loans offer very competitive rates and provide an excellent opportunity for brokers who haven’t leveraged the rise in non-QM borrowers. REMN’s Simple Access non-QM program represents a major opportunity to work with quality borrowers who may not qualify for other loan products. Competitive rates are nothing without a dedication to customer service to support them. REMN continues to seek out dedicated AEs across the country that share its commitment to helping its customers thrive. Experienced professionals who match this description should send their resumes to aerecruiting@remn.com.

Waterstone Mortgage announced the promotion of Kim Newby to SVP of Investor Relations and Product Development, and Rich Tucker to SVP of Loan Operations. Steve Lawrence is now Waterstone’s VP of Information Systems, Nicole Wolfgram is now its VP of Construction, and Chris Hatton is the new AVP of Compliance. Congrats to all!

Lender products, services, and announcements

Caliber Home Loans, Inc., the #3 non-bank lender according to the October issue of Inside Mortgage Finance, continues its mission to be ambassadors of goodwill in military communities. In May 2018, Caliber agreed to contribute a portion of the proceeds from every VA loan closed through its Virginia Beach, VA branch to the UDT-SEAL Association. Earlier this month, Caliber presented a check to UDT-SEAL for $10,000. Caliber has also initiated a new program that helps more real estate professionals meet the specific home buying needs of the brave men and women of the U.S. military – Operation 1M. Through this initiative, Caliber has set a goal of educating 1 million people in the industry to breakdown common myths about VA loans, and to help them understand how to create a happy home buying experience for military families.

“It just got even easier to close more deals with less effort. Usherpa has joined Blend’s

partner ecosystem, giving members access to Blend’s consumer lending platform via streamlined integration with Usherpa’s industry-leading marketing CRM. Simply push a lead to Blend from Usherpa, and that prospective borrower will receive an email inviting them to start their application, with fields already pre-filled from Usherpa data. This game-changing partnership will empower Usherpa members to originate loans more easily and build stronger relationships. With data being pushed between Blend and Usherpa, you’ll eliminate double data entry and automate marketing sooner in the process, ultimately increase your pull-through and production. Here at Usherpa, your success is our top priority. Learn more about the Blend ecosystem integration here. Visit Usherpa.com to set up a demo today.”

Momentifi CEO Gibran Nicholas is hosting a Sales Momentum Webinar next Thursday, Nov 1. Topics include: how to improve your team’s lead-to-funding conversion rate and generate 300 extra loans for every 10,000 leads in your database (or 30 loans for every 1,000 leads), and how to use two key sales metrics to create and implement a company-wide sales coaching program that generates massive results within 90 days, and how to use your internal sales coaching platform as a recruiting superpower to attract and retain top producers. The webinar is intended for LOs, sales managers and executives who are serious about driving sales growth. “I’ll be sharing a free one-page tool you can use to keep your team hyper-focused on creating sales momentum,” says Gibran. Click here to sign up for the free webinar!

Should you look to your health insurance plan for savings? With margins getting squeezed ever tighter in our industry, companies need to look everywhere to trim costs. Saving just 2-3 bps can be the difference between losing or making money. Some lenders have lowered costs by taking a different approach to their health plan. The concept is simple— rather than leaving claim management up to the health insurers, which rarely audit claims or challenge healthcare providers’ hyper-inflated charges—companies are taking control of their own claims. The results can be astounding. A typical company can save 20% to 30% (!) — or $200k to $300k for every 100 employees on their health plan. Do the math… it adds up. It is important to seek out a broker who is knowledgeable about this approach. Bern Heer is one such broker. You can receive more information, case studies, and a complementary actuarial analysis for your company by emailing him at bheer@frenkel.com, or by calling him directly at 1-800-346-4015.

“Attention Independent Mortgage Bankers, Banks and Credit Unions. PennyMac Loan Services, LLC has announced an expansion of its Non-Delegated Program and is actively approving new clients of all sizes. In addition to Conventional and Jumbo, FHA launched earlier this month and VA will follow quickly with a mid-November release. The company also recently launched its new MI program called Enterprise-Paid Mortgage Insurance (EPMI) that targets better pricing and a streamlined process. Aside from new products and competitive pricing, the firm has focused on improving customer service with enhanced processes that cut turn times significantly. While the market continues to evolve, PennyMac is committed to helping Non-Delegated clients minimize risk and lower overhead as we navigate the road ahead. Please contact Liam Cooney for more information. NMLS ID#35953

Random vendor updates from around the biz

ARIVE, LLC announced the upcoming launch of its “innovative new ecosystem for independent mortgage brokers, allowing them to leverage their personal connections and local knowledge to serve borrowers in a whole new way. Designed to fill the real-world needs of independent brokers, ARIVE will offer a seamless experience to unite lenders, borrowers, and third-party vendors. Brokers will be able to check pricing, lock rates, upload documentation, and much more — all in a first of its kind environment that unites traditional human connection with cutting-edge technology.”

Arch MI Is now on Amazon Alexa. Simply say “Alexa, launch Arch MI” to activate the Arch MI Skill on your Echo, Dot or Tap. Then choose an option and say it out load: “Get a RateStar quote.” “Find my Account Manager.” “Call Customer Service.” “Help.” Click this link for more information and detailed instructions on launching the Arch MI Skill.

A while back LoanLogics announced Transformational Mortgage Solutions (TMS) is taking over its MSR consulting operations and its MarketLogics newsletter so the company can focus on its core products and services. Les Parker, who led MarketLogics as well as LoanLogics’ consulting efforts, will join TMS as managing director but will continue working with LoanLogics as an advisor. “TMS has been a close partner of ours for many years, so this was a natural next step in our relationship,” LoanLogics CEO Brian Fitzpatrick said.

Corelogic announced that it has an agreement with Homes.com to offer consumer-facing real estate websites to its MLS clients. Under the agreement, Corelogic will begin offering Homes.com’s Fusion Portal production to its clients.

Simplifile facilitated the first e-recording transaction in the state of West Virginia. The transaction was completed on Friday, Aug. 24 in Monongalia County, W. Va., which is the first recording jurisdiction in the state to begin e-recording land documents. The closing attorney for the transaction submitted the documents via Simplifile’s E-recording platform to the Monongalia County recorder’s office on Thursday, Aug. 23. Due to the nature of West Virginia’s recording process, the verified and recorded documents were returned to the closing attorney the next business day. This represents a significant improvement over Monongalia County’s previous, paper-based process.

CoreLogic added a Blended Reissue functionality to its LoanSafe Fraud Manager solution. The introduction of this feature will allow investors to have greater insight into fraud alerts, helping them more quickly approve purchases or spot potential fraud. Blended Reissue provides controlled coordination of the fraud review between parties, simplifies the transition of important information between the originator and the investor, allows users to see how the originator cleared alerts, and can help reduce costs. Customization of the Blended Reissue functionality within the LoanSafe Fraud Manager report based on an investor’s unique policies is also available.

LoanLogics and Optimal Blue announced a newly formed strategic partnership aimed at changing the digital correspondent experience. By delivering a real-time integration between LoanLogics’ LoanHD Correspondent Lending platform and Optimal Blue’s product eligibility and pricing platform, the companies significantly advance the automation of correspondent loan transactions and create a compelling competitive advantage for clients of both firms. In conjunction with this partnership, Optimal Blue has acquired LoanLogics’ product, pricing, and eligibility (PPE) technology business, LoanDecisions. LoanLogics and Optimal Blue share a long-term vision for the relationship and consider this the first step of many together. With a collective focus on providing innovative automation for the mortgage industry and compelling value for joint customers, additional strategic initiatives and collaborative integrations across the companies’ respective technology platforms are already being considered.

Home Point Financial Corporation announced an expanded partnership with Capsilon, a leading provider of mortgage automation software. Home Point chose Capsilon to eliminate bottlenecks in the loan process, boost productivity and reduce risks. The Capsilon IQ platform was integrated with a proprietary tool called Automated File Intake for Home Point’s Correspondent channel. Capsilon IQ was also rolled out across their Wholesale channel. Home Point reduced Delegated Correspondent purchase review time by 33% through integration with Capsilon IQ, improving operational efficiency and delivering a better experience for its clients.

Lenders that underwrite Condos anywhere in the nation should consider scheduling a demo of CondoTek’s CondoPak. The CondoPak includes the certified questionnaire, necessary governing documents, current budget, certificates of insurance and more. Email service@condotek.com for more information.

aboutMYmortgage.com has aligned with YourHome1Source.com significantly improve each company’s fundamental purpose of helping homeowners make the most educated and informed decisions about their home. Visitors to YourHome1Source.com will now have expedited access to information about their existing mortgage, allowing them to make the most educated decision regarding a potential refinance, home equity loan or a new mortgage to purchase a home. The strategic partnership facilitates the process for homeowners to work with participating servicers. Only the homeowner’s existing mortgage servicer possesses all the information necessary to review an existing mortgage loan, educate loan customers about financing options and create mutually beneficial outcomes. Mortgage servicers benefit by retaining valuable customer relationships long term.

Capital markets

The Bank of Oklahoma has been added as an approved counterparty for Ditech’s AOT program.

US businesses remain optimistic about the direction of the economy but are concerned that tariffs will increase their costs, according to a Federal Reserve report. Manufacturers are uncertain over the impact ongoing trade disputes and a current labor shortage will have on their operations, the report shows. The Federal Reserve fund rate is approaching the top of its target range at 2.2%, and analysts say it may soon need to amend its interest on excess reserves policy.

It was a relatively quiet day in the bond market yesterday as the U.S. 10-year closed at 3.14% with most attention focused on equities as earnings reports are in full swing. Internationally, Fitch affirmed Australia’s AAA rating with a Stable outlook, and four of the largest Chinese banks have lowered mortgage rates on purchases of first homes in “Tier 1” cities while China’s Banking and Insurance Regulator noted that it will support investments of insurers in listed companies. Xinhua quoted President Xi Jinping as saying the government is looking for ways to support small companies.

Back in our borders, the first look at Q3 GDP kicked off today’s calendar (expected +2.9%, it was stronger at +3.5% but “final sales” were only +1.4%, lower than expected). The inflation component is close to the Fed’s target. The University of Michigan Consumer Sentiment Index is next up at 10AM ET with a slight decline in the preliminary estimate, current conditions, and expectations forecasted. Friday starts with the 10-year yielding 3.09% and agency MBS prices are better by .125.

I took out a loan to pay for an exorcism. If I don’t pay it back, I’m going to get repossessed.

Rob

Ever had something stolen? Remember that feeling in the pit of your stomach? It’s not good. Things have become more complex than returning to the bike rack and seeing your Schwinn gone, however.

Do you know how to identify and prevent mortgage fraud in your financial Institution? What do straw buyers and wire transfer fraud have in common? Your financial institution is being targeted by them. Read the CLA Bankers Advisory article to learn more about mortgage fraud trends and how to identify and prevent common fraudster schemes.

Here is “The Untold Story of NotPetya, the Most Devastating Cyberattack in History.” Crippled ports. Paralyzed corporations. Frozen government agencies. How a single piece of code crashed the world. Don’t forget the Yahoo breach of 3 billion user names and passwords, sold around the world.

In the world of cybersecurity, it is often difficult to know how much security is too much. This is important when you consider a recent survey from FICO. It shows how fed up consumers are with the security hoops they need to go through to verify their identity. This is despite the constant barrage of information about data breaches and card compromises. The survey found that 80% of respondents don’t see the need for what they consider unnecessary security procedures and 47% said they are tired of having to answer endless security questions whenever they call customer service departments. Even worse, a startling 64% don’t see the need for complex passwords featuring a mix of numbers, symbols and capital letters. Finally, 48% are frustrated with the use of two-step verification and 71% are frustrated by captcha codes. And 22% of respondents said they would either give up on opening a bank account completely, or give up and try at a different bank, if they had to jump through too many hoops.

It’s an interesting perspective, given that security, or lack thereof, is one of the top things keeping bank executives up at night. With good reason: cyberattacks and data breaches are more common than in any other industry. 45% of financial services organizations have had a data breach in the last 2 years, and the severity and volume of cyberattacks continue to increase, according to a global cybersecurity study by Ponemon Institute.

Certainly, it’s a balancing act. Customers may say they’re willing to forgo security for convenience, but one wonders if they’d say the same after being part of a damaging data breach. Lenders and banks must find a happy medium, a sweet spot between protecting customer information and piling on too many layers of security that could push customers away.

This analysis starts with a risk assessment to ensure the necessary security precautions are in place, while at the same time allowing business to function smoothly and customers to bank effortlessly. Are you utilizing the most appropriate tools, technologies and procedures to meet this multi-faceted challenge? A little research on this could go a long way. But, more than likely, you have already started this.

Artificial intelligence (AI) is an option that is getting more reasonable for community banks and lenders. Your bank may want to explore how AI could help you more seamlessly analyze patterns that smack of fraud. Technology available today has the potential to spot trouble without putting customers through hoops, and this technology is only getting better over time.

To be sure, fraudsters are getting more sophisticated, especially as we move toward an increasingly digital world. All financial institutions will need to continue their diligence to ensure their data security efforts work for them and their customers.

Cybercrime experts will tell you that the most common way into your organization is through email. Hacking email won’t come from Boris Badenov. A borrower working with a real estate agent, title company, mortgage company, will do what they are told from an email that appears legit. And when money is stolen, you won’t know who took it, and will probably never find out. Most people don’t understand sophistication needed to execute a hack.

Cybercrime experts will also tell you that it could have been prevented, primarily through user education. Lenders constantly remind their employees, and drill it in, “Don’t give out your password. Don’t have ‘challenge question’ answers be the truth – but remember your lie. Think before you click. Don’t click on an unknown link.” This is the delivery mechanism that the bad guys are using to obtain our information: “Click here to restore…”

Scott Augenbaum, a retired FBI agent out on the speaking circuit, will tell you that password re-use a huge problem in “mission critical” platforms/accounts (email, social media, iCloud, Microsoft, cell phone, insurance, bank accounts, debit cards, payroll system, sales force platforms, wherever sensitive information is stored).

Companies need to evaluate their human firewall, given that email will be the method of choice of hackers. “Think before you click.” Does your company have a business process in place? Do you routinely send harmless test messages to employees with harmless links that, if clicked on, warn the user not to click on them? You should.

And what about common-sense passwords or easily rememberable phrases? They should be 12 characters, no dictionary words, with special characters. Come up with a special symbol and number. You can start your password with it, and then reverse it at the end of the password. Every company and employee should have pass phrases for mission critical platforms.

And IT departments, along with folks at home, should use two-factor authentication (“2FA”) with remote access. A six-digit code is sent to you. Personal email (gmail, Outlook, iCloud) all offer two-factor authentication. Anyone using Yahoo, or AOL, bail. Usually in email or other consumer accounts, under “Account settings” there is a click tab that allows two-factor authentication. It will ask for your cell phone number when first used. You log off, and then log back in and enter your user name, password, and then a screen pops up with random six-digit code, enter it, and asks, “remember this computer?” Your answer should be “Yes” if your computer is in your control. Your computer will get through in the future without the code being sent each time. But the “bad guy’s” computer can’t, because they don’t have your cell phone whereas trusted devices are okay.

The capabilities of cybercriminals have improved quickly, so new security measures have been improving as well. It has become increasingly difficult to secure customers’ accounts, personal information and even their identities. Now, a handful of banks have begun employing new and updated security tactics known as “invisible biometrics.”

Unlike traditional biometric safeguards, such as swiping a fingerprint, invisible biometrics use sensors or computer coding that are unbeknownst to an individual. The way each person holds their phone, swipes their screen, types on their computer keyboard and even uses their mouse is unique.

Invisible biometric programs can compile databases of thousands of behaviors unique to each individual. In the case of mobile apps, sensors are used to collect information, while computer coding records unique behavioral attributes. These include tracking everything from typing patterns and how fluidly people enter information like passwords or personal details, to how hard they hit the keys on their keyboard, and the way they move their mouse. Because such data is collected without a user’s knowledge, the information compiled is a legitimate depiction of that individual’s true behavior and how it differs from the behaviors of others so it is easier to determine if an illegal attempt to use a bank account is made for instance. These programs essentially look for any digital indicator that shows cybercriminals are trying to impersonate an account owner or steal someone’s identity.

Steve Brown with PCBB writes, “While several banks have already begun experimenting with and employing invisible biometrics, most do not want their usage of these programs to be known. One exception is Royal Bank of Scotland, which has been testing invisible biometrics for more than 2 years on bank accounts for some of its high net worth customers. By doing so, the bank has already been able to successfully identify hacking attempts on such accounts. Not surprisingly, invisible biometrics are rapidly gaining popularity, with roughly a dozen technology companies already specializing in the technology and shopping such security programs to banks.

“By one security expert’s estimates, 500mm passwords and 5B accounts have been compromised. The fight for cybersecurity is far from over. Though invisible biometrics are still far from being mainstream, given ever-increasing sophistication of bad actors and the growing amount of fraud, community banks should at least be aware of this new security tool.”

CliftonLarsonAllen is hosting a webinar on cybersecurity this upcoming week. “Beyond the Firewall: How to Defend Against Cyber Threats”, Tuesday, October 30, 2 – 3 p.m. CT

Switching gears but staying in the technology realm…

I received this note from Debbie Hoffman, CEO & Founder of Symmetry Blockchain Advisors, Inc. “Rob, you recently wrote about how Rep. Tom Emmer, R-Minn., co-chairman of the Congressional Blockchain Caucus, plans to introduce three bills that will call on the US to ‘prioritize accelerating the development of blockchain technology and create an environment that enables the American private sector to lead on innovation and further growth.’ It is important to understand how this legislation could allow blockchain technology to produce further innovation – meaning the features that are currently holding blockchain back.

“One of the largest challenges in blockchain innovation is that the current laws do not directly address the use of blockchain and thus businesspeople, innovators and lawyers are trying to apply old laws to new technology – square peg in a round hole.

“Emmer’s first bill, in particular, ‘expresses support for the industry and its development’ in our nation by supporting ‘a light touch, consistent and simple legal environment.’ The reason this is critical is that currently the law is not clear and there is hesitancy for the innovators to move forward without some distinct established boundaries. While there are many new use cases utilizing blockchain both within and outside of the mortgage sector, an approach of strict legal boundaries does not promote such innovation, while broad, lenient regulation would allow further progression and innovation enabled by blockchain technology. Without any kind of guard rails, nefarious players could dominate the market and therefore some clarity and boundaries are necessary in the form of clear legislation.

“The introduction of these three proposed bills by Representative Tom Emmer allow for increasing clarity of regulation regarding the further progression and development of blockchain technology. Furthermore, these regulations will allow for further innovation as these will clarify any existing ambiguity and provide clear guidelines for operations. ‘Too much regulation will stifle innovation, but the lack of regulatory guidance only leaves investors in the dark as to how their investments may be effected by laws down the road,’ says Dr. Rick Roque, Co-Founder of Menlo Company, a retail mortgage banking management firm. He continues. ‘Having clear guidance and definable parameters around how mortgage debt, for instance, could be more easily accessed by possible tokenized platforms will allow for a broader more democratic way to distribute mortgage debt to a wider range of buyers- the process today is antiquated, non-transparent and inaccessible to a broader audience of capital market players.’ I hope this helps readers understand the significance of such proposed legislation!”

Do you trust “The Cloud”? You shouldn’t. Should you put anything “in the Cloud?” No. Do you do it anyway? Probably. Here’s an entertaining short video from Australia using concepts that even I can understand why you shouldn’t send things there.

Rob

We have a whole generation of home buyers who have never seen a 5% mortgage rate, an interesting thought. We’re not in the “An ARM is better” territory, but lenders are certainly up for offering their clients all options that will help close the deal. The Mortgage Bankers Association forecasts $1.2 trillion in purchase mortgage originations in 2019, a 4.2 percent increase from 2018 (although many are skeptical). Refinance originations are expected to continue to trend lower next year, decreasing by 12.4 percent to $395 billion. Will overall volume really be about the same as this year?

Jobs, business opportunities, & promotions

Paramount Residential Mortgage Group, Inc. (PRMG) has recently hired Garrett Griffin VP, Correspondent Divisional Sales Manager, to its Correspondent Leadership team! Garrett is a thirty-year mortgage veteran with years of developing Correspondent Sales Teams and expanding the Correspondent footprint across the country. He will be reporting to Jay Boand, Director of Correspondent Lending. In his new role with PRMG, Garrett will be responsible for continuing to build PRMG’s Correspondent channel throughout the United States. To join forces with a company that has been “Built by Originators for Originators” and to learn more about PRMG’s Correspondent channel, please contact Garrett Griffin (951.579.4838).

A motivated and experienced investor is seeking to acquire a FULL EAGLE/HUD Designated mortgage company. Licensed in CA would be preferred but is not required. The principals are currently involved in the day-to-day operations of a nationwide wholesale channel funding over $1 billion in annual production. The ideal situation is for current shareholders to liquidate all or a large portion of their equity through the transaction. Principals would be willing to negotiate/keep the existing team through the transition. Interested parties should contact HUDFullEagle@gmail.com.

“Throughout 2018, Nations Lending has received prestigious accolades in the lending industry from Scotsman Guide, Mortgage Executive Magazine, and National Professional Mortgage Magazine. Nations Lending has also been certified as a Great Place to Work and named a Fortune Best Small and Medium Workplace for 2018 – after just named to this year’s Inc5000 List as one of America’s fastest growing private companies. “There are companies, of all sizes, in the USA, and to be included on these lists among the best-of-the-best is a remarkable achievement,” said CEO Jeremy Sopko. In a downward trending marketplace, Nations Lending has opened new locations with its retail footprint in the past 30 days in California, Texas, Florida, North Carolina, and Colorado, to name a few. This is just the beginning for motivated sales leaders. Be the first to join our team in your area as we are looking to expand across the United States. For information on an opportunity to join our growing organization, please visit the company’s website.”

Genworth Mortgage Insurance welcomed 25-year mortgage industry veteran Kelli Brookman as Customer Sales Trainer. For the past 18 years, Kelli has trained thousands of Loan Officers on technical skills, closing the deal and retaining customers with a focus on sales and management training, and has spoken at lender sales conferences across the country. You can access Genworth’s course training catalog here or register to receive the monthly webinar calendar here.

United Community Bank announced the addition of industry veteran Jason Hultgren as SVP/Director of Mortgage Sales where he will utilize his extensive background to lead all UCMS Sales Managers and the sales recruiting efforts across the bank’s four-state footprint, capitalizing on growth opportunities for the mortgage sales teams to increase market share.

Lender products & services

BluePoint is offering free appraisals for BluePoint Mortgage partners between Oct 1^st and December 31^st, 2018! “@BluePointMtg we are pleased to present a market advantage to help our Mortgage Broker partners for the last quarter of 2018! BluePoint Mortgage will be crediting borrowers $500 dollars towards their appraisal cost at closing for all loan amounts over $300,000 including FHA/VA/Conventional and Non-Agency/Alt-QM loans. (*Excludes Reverse loans.) BluePoint Mortgage is focused on being a leader in providing niche products with speed and service within the wholesale lending arena. The expansion and dedication of operations staff to cover Alternative Mortgage options is leading the growth of niche products BluePoint

Mortgage has to offer. BluePoint has many options for mortgage broker partners including: Reverse Mortgage Loans, CalHFA Loans, DACA Loans, Bank Statement Loans, FHA/VA (550 FICO), Conventional (Fannie or Freddie) Loans, Non-Agency loans (500 FICO min) and more. For more information contact your AE, or for those that do not have one, please contact Marketing@BluePointMtg.com!”

Are you handing over your customers to a pack of wolves? For lenders, this is an area I often see as overlooked when it comes to subservicing. Your customers are your greatest asset, so why are you handing them over to a sub-par subservicer with antiquated technology? It’s time to demand more from your subservicer. Sign up now for this National Mortgage News Webinar to learn how happy customers equal future growth and the role technology plays in it. Ali Vafai, TMS president, and Barbara Yolles, TMS chief strategy officer, will unpack the importance of maintaining real-time relationships with your customers. Click to sign up for the LIVE Webinar on November 7 at 2p.m. EST.

“Lendsnap is the consumer app of choice for non-agency loans. Our partners close more loans faster because they automatically pull up to 24 months of original bank and investment statement PDFs. While other lenders and brokers make the client work too hard, Lendsnap gives you the decisive advantage. Show your borrowers a better way than manually downloading and updating statements over and over. Get them clear to close in days instead of weeks. Our simple yet powerful app includes custom landing pages, an Intelligent 1003 powered by PerfectLO, unlimited eSignatures, and automatic import of bank statements, W2’s and pay stubs. All this functionality is built in to our SOC2-audited platform with no hidden fees or setup charges. Lendsnap replaces many services you pay for separately today and fits your workflow without complicated and costly integrations. Request a free consultation with CEO Orion Parrott to go digital with Lendsnap now.”

Buzz is building about ARIVE, a new technology company partnered with AIME. Led by Joseph Cicali and Katie Sweeney, ARIVE is launching in January, and industry insiders are weighing in. Bill Dallas, President of Finance of America Mortgage and Co-Founder of cloudVirga, said, “The ARIVE digital mortgage platform is the biggest breakthrough for independent mortgage advisors ever. We are proud to be among the initial lender partners integrating into the platform but even more excited about how this will empower local mortgage advisors.” For more information, email media@ARIVE.com.

Congratulations to Caliber Home Loans, Inc. for winning the Outstanding Wholesale Mortgage Company award at the 2018 WAMP Business & Humanitarian Leadership Awards Gala in October. At their annual gala, WAMP recognizes companies that cherish philanthropy as a core value of its business model, creates leaders that astound the industry at a national level, and devoted to safeguarding the industry and consumers in the state of Washington. Caliber Wholesale is top-ranked lender in its channel, according to Scotsman Guide, and offers its broker partners a product portfolio that includes conventional, government and non-agency loans (Caliber Portfolio Lending). Caliber Wholesale is a full-service, national lender that works with brokers at a local level for a highly personalized experience on every loan. Brokers interested in becoming an approved Caliber business partner can download their broker package on www.caliberwholesale.com or email newclientinquiry@caliberhomeloans.com.

“I don’t know why anyone would want to do anything different than this!” Mortgage Lenders are praising SCP Onsite Compliance, a total compliance management system offered by Strategic Compliance Partners. SCP Onsite includes a dedicated onsite Compliance Officer supported by team of consultants, attorneys, and tech solutions combined with the all the compliance services and support a mortgage lender needs to be compliant and grow – all at a fixed-cost. “Why would you ever want to recruit a Compliance Officer on your own again when you can get a better compliance solution and save tons of money at the same time?!” “To learn how you can benefit from SCP Onsite today, email Leslie Benjamin or give us a call 646.418.6635 for a free 3-minute compliance savings evaluation that could save you $100,000.”

Last chance to vote for the National Mortgage Professional Magazine’s Best Military Originators. Use this link to submit your vote. Voting ends Wednesday, October 31st.

If you haven’t done so already there’s still time to submit a nomination for the Best Military Originators or the Best Military Lenders. This honoree program recognizes those who focus their activities on helping active military personnel and veterans who bravely serve our country in pursuit of their home ownership dreams. Honorees will be showcased in National Mortgage Professional Magazine, both online and in our November 2018 print edition, and on Mortgage News Network. To nominate your lenders and originators, follow this link. The deadline to submit your nomination is Wednesday, October 31.

Legal, Lehman, CFPB news

Regarding the LBHI matter, I received this note last night from Arthur Prieston Chairman of American Mortgage Law Group. “Friday, three days before the October 29, 2018 hearing on the two motions that Lehman Brothers Holdings Inc. (“LBHI”) filed in the beginning of this month, LBHI has filed numerous adversary complaints against mortgage lenders and brokers alleging indemnification claims relating to LBHI’s settlements with RMBS Trustees. Although the Bankruptcy Court has not yet ruled on LBHI’s motion to amend and extend the 2014 ADR Order to include these RMBS indemnification claims, LBHI has begun filing at least 40 adversary complaints so far today and many more are anticipated to be filed before Monday’s hearing.”

And Jonathan Jenkins from Jenkins Kayayan LLP wrote, “It’s almost Halloween, and tonight the Ghost of Lehman Brothers is up to more mischief under cover of darkness. Lehman Brothers Holdings, Inc. has electronically filed adversary proceedings against 64 more of its former brokers/correspondent lenders in the U.S. Bankruptcy Court for the Southern District of New York. LBHI is demanding indemnification for allegedly defective mortgages in connection with its recent $2.38 billion settlement with private-label RMBS Trustees. (Write to Jonathan if you’d like) a list of the new defendants (who apparently have not yet been served); there are many significant industry players among them. The complaints are copycat templates that provide little defendant-specific information beyond a list of loan numbers and LBHI’s claimed damages. In many cases, LBHI seek damages in the low-to-mid seven figure range, but there are a couple of demands in the low eight figures. The important thing to remember is that LBHI’s demands are likely inflated based on several faulty assumptions, and, in many cases, defendants will have solid loan-level defenses.”

The Bureau of Consumer Financial Protection (nee CFPB) announced its latest enforcement action earlier this week and Mayer Brown’s Ori Lev just released a new Legal Update on the Bureau’s action. “…the Bureau continues to pursue claims of unfair, deceptive and abusive acts and practices (“UDAAP”) – despite their recent rulemaking announcement to define “abusiveness” – and examines the three claims of the Bureau’s enforcement action and how it differs from its words. The Bureau of Consumer Financial Protection announcement its latest enforcement action earlier this week, and it demonstrated yet again that, notwithstanding Acting Director Mick Mulvaney’s rhetoric, the Bureau intends to continue to pursue claims of unfair, deceptive and abusive acts and practices (“UDAAP”). Indeed, just days after announcing that the Bureau will consider rulemaking to define “abusiveness”—because the standard is not well developed in the law in the same way that unfairness and deception are—the Bureau brought its first new abusiveness claim of the Mulvaney era.

News broke at the end of last week of Hilltop Holdings’ PrimeLending entering into a settlement with the DOJ and HUD. Hilltop Holdings’ had its earning call, but the information was contained in its 8-K (dated October 23).

“Hilltop Holdings Inc. previously disclosed that its wholly owned, indirect subsidiary, PrimeLending, A PlainsCapital Company, was subject to a False Claims Act investigation being conducted by the United States Department of Justice relating to the origination of mortgage loans that were insured by the Federal Housing Administration. To avoid the delay, uncertainty, inconvenience and expense of protracted ligation that may be associated with this investigation, on October 23, 2018, PrimeLending entered into a Settlement Agreement and an Indemnification Agreement with the DOJ and the United States Department of Housing and Urban Development (“HUD”), respectively. In these agreements, PrimeLending did not admit to any liability or wrongdoing, and the DOJ and HUD did not make any concessions with respect to their alleged claims. These agreements provide for payments to each of the DOJ and HUD of $6.75 million, or $13.5 million in the aggregate. In exchange for these payments, each of the DOJ and HUD released any civil claims it may have related to certain mortgage loans originated by PrimeLending. As of September 30, 2018, these amounts were included in the Company’s reserve for indemnification liability.”

My guess is that “people in the know” are congratulating PrimeLending. It is difficult, if not impossible, for every file done by every lender to be perfect. And exorbitantly expensive. When files are nitpicked to find anything wrong, regulators will find something. The cost to defend this is huge and has gone on for years. And industry experts think we’ll see more settlements ahead.

Capital markets

The U.S. 10-year closed Friday at 3.08% after the release of a slightly stronger than expected advance GDP for the third quarter (actual 3.5%; expected 3.3%). The price deflator missed 2.1% expectations, registering at 1.7%. Notable was that real final sales of domestic product, which subtracts the change in private inventories, displayed their weakest growth rate since the Q4 2016. The recent weakness in stocks and the corresponding uptick in Treasuries have slightly diminished some market participants expectations for a December rate hike, but Federal Reserve officials have not hinted at any imminent changes to the policy course. (The implied probability of a December hike declined to 70% from 77% yesterday and 84% one week ago.) Overseas, Italy’s Deputy Prime Minister Matteo Salvini reiterated that the government has no plans to alter its budget deficit target for 2019 and there is chatter this morning about Angela Merkel not running for CDU head in an election in Germany in December.

We began this packed week on the economic calendar with September personal income and spending (+.2%, +.4%, respectively) with inflation in the Fed’s target range. Chicago Fed President Evans will speak later in the morning. Tomorrow brings August Case-Shiller 20-city Index and October Consumer Confidence. Wednesday we receive the weekly MBA Mortgage Index, October ADP Employment Change, and the Q3 Employment Cost Index. Thursday sees weekly claims, Q3 Productivity-Preliminary, and Unit Labor Costs – Preliminary, September Construction Spending, and October ISM Manufacturing Index. The week closes with October Nonfarm Payrolls, Nonfarm Private Payrolls, Unemployment Rate, September Trade Balance, and September Factory Orders. We start the week with agency MBS prices little changed from Friday afternoon and the 10-year is yielding 3.09%.

I went to the cemetery yesterday to lay some flowers on a grave.

As I was standing there I noticed 4 grave diggers walking around with a coffin. 3 hours later and they’re still walking around with it.

I thought to myself, they’ve lost the plot!!

Rob

Plenty of vendors and lenders are focused on raising capital, merging, selling, or closing. It doesn’t take a brilliant detective to see the liquidity & earnings problems facing hundreds of lenders across the nation as warehouse banks and other counterparties ratchet up scrutiny and lenders race to reduce costs. How many ducats are in the bank account versus six months ago? Winter is coming. Mortgage rates are near 2-week lows but that’s not saying much since they are coming off the highest levels since 2011. Are we having fun yet?

Jobs & position wanted

New Penn Financial is proud to congratulate Mark Melini on his recent promotion to National Wholesale Sales Manager. Mark joined New Penn in 2014 as a front-line Account Executive and was promoted to the position of Regional Sales Manager based on his superior production levels. Prior to his most recent promotion to National Wholesale Sales Manager, Mark built up the Northeast region to over $1.2B per year. A consistently top-producer in every role, Mark brings to us over 19 years of industry experience. “I look forward to the leadership that he will bring to our team, as well as the overall impact that his expanded role will have on the channel as a whole,” says Chris Nielson, SVP TPO. To learn about career opportunities in our expanding team, email New Penn recruiting.

A C-Suite executive is looking for opportunities in Sales and/or Operations. The 20-year veteran has a proven track record of building exceptional teams and in their most recent 2 engagements oversaw a 2.5 X and a 4X increase in funding’s. Experienced in Consumer Direct, Process Design & Improvement, Data Analytics, Digital Transformation, Artificial Intelligence, Technology Stacks and their integration, Operations, Marketing, Vendor Management & proficient in Sales Training, Sales Management, and Telephony. Career highlights include Strategic Sales Vision and Business Development (generated $2 billion + media mentions during 30-day promotion), leadership and change management (transformed 10^th ranked sales division to #1 in three months; division originated $10 billion for the year), performance optimization and tactical execution (created real-time reporting across marketing and business intelligence, increasing productivity by 270%, conversion by 42%, and funded units by 2.3x), and increased Gmail open rate 20X from 1 % to 20%. Innovation and creative problem solving. Please contact me with any interest.

Lender products & services

We are in the final stretches of 2018 and goodness knows it’s been a memorable one for the industry. Between changing market demands, margin compression, and many more challenges, 2018 will be one for the history books. In the complimentary Industry eBook, “2018 Mortgage Executive Year in Review,” Maxwell sat down with prominent industry executives to discuss their lessons learned in 2018 and how to apply those insights in your preparation for 2019. A must-read for all lending professionals and an exclusive to Rob Chrisman subscribers today, download your copy here!

“The HomeScout®-HBM mobile real estate search and buyer reporting technologies bridge the communications void between consumers, lenders and real estate professionals, creating a collaborative home buying experience. HomeScout has helped thousands of loan officers and agents add 2-3 more transactions a month, while providing consumers 100% MLS listing data along with automated alerts for newly listed homes- driving them back to the app and the loan officer; keeping them off competitor’s sites. The HBM Dash monitors buyer activities and provides critical business intelligence through online activity reporting, automated alerts and one-touch communications to engage buyers and convert more purchase transactions. Build trust with borrowers by providing the right information at the right time, without the pressures they would experience from strangers who bought their information online.” Find out more by contacting them HERE and scheduling a demo or give them a call at 952-831-0623.

PHOENIX (Denver, CO), the premier advisor for Trading, Mortgage Services and Analytics, welcomes Jason Eisendrath as SVP of Trading to the team. Eisendrath joins the PHOENIX MSR and Whole Loan desk with over 20 years of experience in the mortgage banking industry specializing in Whole Loan trading, portfolio management and securitization. Eisendrath previously served as Director of Loan Sale Strategies for eight years at Mortgage Delivery Specialists (MDS), a division of MIAC (for four of those years). PHOENIX brings on Eisendrath to expand its senior management team and continue to provide expert trading advisory, operational support and strategic solutions.

As a loan officer, how many times have you reached the end of a deal, had a successful closing and waited and waited for referrals that never came? A new case study, “How Important Are Satisfied Borrowers to Growing your Business” tackles the Seven Commandments: the seven most impactful aspects of the loan process that can make or break a borrower’s likelihood to refer business your way. By combining The STRATMOR Group’s industry expertise and data analysis with insights from Certainty Home Loan’s top producers, you can learn how to measure and improve your customer experience and increase your referral base. Receive your free copy of “How Important are Satisfied Borrowers to Growing your Business?”

Here’s an analogy that might resonate with lenders selling their loans. Your borrowers feel like they’re being “passed around like a bottle of Crown” every time you sell your loans to an investor who will dump the loan to another in a matter of weeks. While this is a business of buying and selling loans, ignoring the customer service your borrowers will receive after you sell the loan to save a mere $20 on pricing will cost you a lot more in the long run. Hand over your precious homeowner to another lender who will value that customer, build loyalty, create trust and service that loan with total customer respect. If not, pass that bottle of Crown. Learn more by downloading the entire white paper for free here.

Upcoming events

Today, Tuesday, October 30 at 10AM PT, Sierra Pacific Mortgage will share how S.M.A.R.T. goal setting can bring structure and trackability into your future goals. This is a perfect time to learn ways to use the S.M.A.R.T. process to increase your individual and professional goal setting skills. That means creating goals that are Specific, Measurable, Attainable, Relevant and Timely. Finish the year out strong and start 2019 with a bang.

Register today.

As overall volume drops, it’s never been a better time to see Why Non-QM Should be Part of Your Origination Mix on National Mortgage Professional Magazine’s complimentary webinar on Thursday, Nov 1, 1-2PM ET. The mortgage lending landscape is constantly changing making alternative lending more important than ever. Non-QM products offer innovative quality solutions created as an answer to today’s challenging market. Join a nmp Webinar featuring Tom Hutchens, Executive Vice President of Production with Angel Oak Mortgage Solutions. You will learn what alternative lending means now and why you shouldn’t ignore non-agency options. Register for the complimentary webinar here.

Webinar: Maximizing Construction Loan Efficiency with Ellie Mae and Land Gorilla. Construction lending has experienced 20 consecutive quarters of growth and recent stabilization of year-over-year growth rates indicates continued expansion for single-family construction. For financial lenders to profitably meet consumer demand, they need the right technology to maximize efficiency and minimize risk for construction loan origination and draw management. Join Ellie Mae® and Land Gorilla on November 6 at 10:30AM PST to understand the current construction lending landscape, and learn how to leverage the integration of Encompass® and Construction Loan Manager to create a powerful end-to-end solution. Register today!

Falcon Innovations is hosting a live CE class on November 1, in Chicago. Please click on this link to register.

In North Carolina, the Charlotte Regional Mortgage Lenders Association lunch will be held on November 1. Check it out!

Washington Association of Mortgage Professionals (WAMP) is looking forward to its upcoming WAMP BREAKFAST MEETING on NOV 7^th at the Bellevue Club. Register today to ensure you do not miss this unique opportunity so see keynote speaker, Brian Stevens, Host of the National Real Estate Post. Register here or reach out to Frank Percival for Sponsorship (206-484-6442).

(I guess Brian Stevens is making the rounds since the following day – 11/8) he’ll be at a lunch with MBA St. Louis. The lunch program topic is Business Planning & Marketing Strategies to Achieve Your Sales Goals.)

Are you registered for the November 7^th MMBBA Fall Sales Webinar Series? The first class in the 2-part series, LinkedIn Part 1 walks you through the components of a complete profile and shows you how to use LinkedIn as a powerful networking and sales tool.

CoAmp is sponsoring a Lunch & Learn with Impac Mortgage on November 8^th.

In Las Vegas, November 13-15, eSignRecords 2018 is the annual conference of ESRA, the Electronic Signatures and Records Association. The Electronic Signature and Records Association (ESRA) is the premier trade association representing organizations that adopt or provide electronic signature and document technology. The conference brings together leaders in technology, business, government, and law to educate and collaborate on the best uses of electronic signatures and digital records. Visit www.esignrecords2018.org for more details. Use code “spooky” to take advantage of a special early bird pricing sale ending on October 31, 2018.

The Plaza Home Mortgage November webinar schedule is currently available. Remember if you can’t make it to a webinar, register anyway and the recording will be emailed to you.

Register for a November 14th complimentary CLA Webinar: How the New Accounting Standards Can Affect Your Borrowers’ Financials. This session will highlight how the significant changes to revenue recognition and leasing accounting standards will impact your borrower’s financial statements. CLA professionals will also discuss how analyzing and monitoring borrower creditworthiness may change under the new rules.

Don’t miss your opportunity to register for the MMA Annual Convention on Wednesday, November 14^th titled Building for the Future.

MERS will be holding its 1^st West Coast eMortgage Bootcamp in Irvine California, November 14-15^th. Come see all the GSE’s in action as well as several great panel sessions throughout the day, register now.

On Friday, November 16^th, hear from Ari Karen, Principal with the Offit Kurman law firm and CEO of Strategic Compliance Partners, as he discusses how to establish the ultimate lender/Realtor business relationship. This special briefing will explain how Realtors and lenders can work more closely together and become more economically aligned while reducing compliance risks inherent in most existing referral/lead platforms.

The MBA’s National Mortgage Servicing Conference & Expo 2019, February 25^th-28^th, is the only place you will get an in-depth analysis of servicer profitability, expense and productivity, plus results of MBA’s latest National Delinquency Survey. Marina Walsh, MBA’s Vice President of Industry Analysis, and Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, will break down what all servicers need to know as you develop your business objectives and performance goals.

Capital markets

With the move up in rates, some are wondering about trading in higher mortgage-backed securities. (“Have you heard of any market talk when the 5.50 coupon is expecting to be released? We’re seeing a lot of compression out there across all investors.) Of course, the lenders most concerned with this are those with higher comp plans so must have higher margins to cover it. Especially with FHA & VA loans, the shift in rates, and rate compression, has forced everything to be at a cost for them.

Michael Ehrlich and Adam Quinones from ThomsonReuters chimed in. “Yes, we have certainly seen the TBA stack compress. Originator pricing has followed. Lenders are generally still making 4s and 4.5s though and there is plenty of premium left in 5s (per my live BU/BD grids). Looking at the data, less than 1% of October 30yr issuance is 5.5s and no single-issuer 5.5s have been certified for November issuance yet nor have we seen any loans committed to Nov 5.5 multis. As far as dealer chatter goes…we’ve seen a few traders make jokes about hedging new production 5.5s but those comments were intended to highlight wild swings in duration weightings/hedge ratios and the complete lack of a liquid benchmark.”

Continuing with bond market chatter, the U.S 10-year closed at 3.09% yesterday as most economic headlines came from abroad and there was little domestic news of note. Standard & Poor’s decided to leave Italy’s BBB credit rating intact while German automakers were happy after it was reported that China is considering reducing its tax on purchases of autos with engines no larger than 1.6 liter to 5.0% from 10.0%. Chancellor Angela Merkel has announced she will not run for reelection as party chair in December after a recent weak showing in a state election for her party, but she will try to remain chancellor until the next federal election in 2021.

Not much early market-moving news in the U.S. The S&P/Case-Shiller Home Price Index for August is out at 9AM ET with both the monthly and annual components expected to rise versus the last release. The U.S. Census Bureau will release the Q3 Residential Vacancies and Homeownership stats when October consumer confidence is seen declining. We begin Tuesday with rates up: the 10-year is yielding 3.12% and agency MBS prices are worse .125.

Paddy says “Mick, I’m thinking of buying a Labrador.”

“Forget that!” says Mick. “Have you seen how many of their owners go blind?”

Rob

“The best part about Halloween is that the cobwebs in my house look like decorations.” For perhaps a morning, the focus for lenders has shifted away from cash flow and recruiting to who will win the yearly Halloween costume contest. The usual favorite (IT – Minions) or the long-shot shipping department (Ninja Turtles)? Perhaps accounting (The Pricing is Right!) or underwriting (Game of Thrones)? Compliance and QC departments have been gutted, but their Baywatch entries turned heads in the past. Or perhaps the dark horse: Capital Markets as One Direction. So much intrigue!

Jobs, personnel moves, & promotions

Compeer Financial is looking for dynamic, rural-focused Mortgage Lending Officers. “Compeer Financial exists to enrich agriculture and rural America. One of the ways we accomplish this is through our unique mortgage solutions for rural locations and small communities which often fall outside traditional guidelines. We are seeking MLO positions in Western Wisconsin and Northern Illinois to build strong client relationships, provide innovative, and workable solutions for clients looking to follow their dreams of owning a home in a small town or retiring to a hobby farm. Mortgage Lending Officers establish new networks, identify prospects, and develop relationships with clients and industry professionals as well as working closely with the lending team to create innovative credit packages to meet the client needs.”

Visit www.compeer.com/careers to learn more about the MLO roles and other opportunities.

You can also contact Melissa Roth.

“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 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 (888) 425-5456 or visit them at www.branchright.com.”

Home Point Financial has recently hired Rob Saunders, Managing Director – Regional Manager. In this role, he will support broker and non-delegated clients, while leading Home Point’s Third Party Originations regional sales team responsible for Arizona, Nevada, Utah, Hawaii and Southern California. “Are you ready to join a team that’s 100% focused and committed to the TPO channel? Contact Paul Wyner to learn more about Home Point today: Home Point Financial is pointing you home.”

“If you believe your company should be providing you with stronger local support and a higher level of customer service for your clients, Firstrust Bank is interested in speaking with you. We are looking for individual loan officers or retail teams in the PA/NJ markets. In addition, we will be opening a Bank Branch in South Jersey market in January and we are looking for Loan Officers to work out of this new location. Firstrust Bank offers a diverse product menu as well as a competitive compensation package. If you or your team is interested in making a move please forward your information to Mike Scheier, SVP of Residential Lending. Firstrust Bank is a third-generation family bank, the largest family owned commercial bank in the region with an unbroken commitment to the Philadelphia market for over 85 years.”

Congratulations to Gavin Ekstrom and his management team on their move to Cross Country Mortgage, an Ohio-based lender with over 200 offices and licensed in all 50 states. Bill Beresford, Kim Martin, Jasmine Brown, and Paula Ott round up the dynamic leadership group based in the Greenwood Village, CO operational hub that includes local processing, underwriting, closing & funding. With a platform focused on growth, automation, and technology, Gavin and his crew are focused on dominating and expanding their footprint in CO, UT, AZ, and NV. If you’re looking to align with a visionary leader, in house operations, a company built around culture, and direct servicing, contact Gavin Ekstrom (720-231-6999).

Congratulations to Eric Kulbe and his team on their move to Synergy One Lending, a Mutual of Omaha Bank company. Kulbe has been a top producing loan originator, branch manager, national performance coach and Regional Manager for over 15 years. Kulbe joined Synergy as VP, Market Production Leader and is responsible for helping Aaron Nemec, EVP, National Head of Production, drive Synergy’s sales, recruiting, market expansion, and business development across the country, among other responsibilities. For more on why Kulbe joined Synergy, please click here. Synergy is one of the fastest growing mortgage lenders in the country. If you’re looking for opportunities to learn more about the power behind Synergy’s bank-banked value proposition, please contact Eric Kulbe (303-717-0293) or Aaron Nemec (208-794-7786).

Tired of fighting the good fight alone? If you’re a business manager with a bust-their-tail team, who could use a re-direction on strategy and a few more resources to flourish, then you should consider aligning your business with a lender that has been certified as a Great Place to Work.

While many mortgage companies are cutting staff and facing reduced volumes, Nations Lending Corporation (NMLS #32416) continues to show growth. The company is looking to grow immediately in the Denver, Philadelphia, Las Vegas, Phoenix, Seattle, and Chicago regions – just to name a few. Ideal candidates for this Retail Bra n ch Sales Manager will have at least 2 years’ experience as an LO, and ready to roll as a top player in this strategic initiative with Nations Lending. If interested, contact Division Sales Manager, Jordan Gerard (337 501-0155). For more information and opportunity on how to join our growing organization, please visit the company’s website.

Lender products and services

Advantage Credit, Inc., a leading provider of credit reporting and verification services to the mortgage industry is pleased to announce its merger with Clear Choice Credit based in San Francisco. Advantage Credit and Clear Choice each have successful track records serving the credit reporting industry. Clients of both companies will benefit from enhanced innovation and a stronger, more comprehensive solution for all their credit reporting needs. Gordon Chin will join Advantage Credit in the role of Division Manager. Advantage Credit will begin management of Clear Choice customers and employees by December 1, 2018. For more information please email Don Unger or Gordon Chin.

In today’s mortgage environment, cost to originate is higher than ever while margins continue to compress. As a credit union, small bank or independent mortgage company how do you stay competitive? Ethos Lending recently launched its next-generation fulfillment platform that leverages their proven proprietary technology and world class customer service to help lenders maximize profitability and increase app to fund velocity by up to 50%. To learn more about their customizable solution, visit EthosLending.com or contact Jeff Krischer at 415-780-7446

Two notes

In my list of upcoming events, I left off the AppraiserFest 2018 November 1^st, 2^nd and 3^rd in San Antonio at the Henry B. Gonzalez Convention Center. All things appraisal with continuing education courses and dynamic speakers. Review the agenda, schedules and speakers plus registration details.

And the link for the new case study, “How Important Are Satisfied Borrowers to Growing your Business”, which tackles the Seven Commandments: the seven most impactful aspects of the loan process that can make or break a borrower’s likelihood to refer business your way, should be: https://www.relationshipplanner.com/survey/137/4268.

Capital markets

I got into capital markets in the mid-1980s, and things haven’t changed that much. Rates go up, they go down, driven by bond prices, which are in turn driven by supply and demand factors. They never go in go in one direction for a long time. What should lenders and LOs know about what’s going on now with rates & the economy?

Short term rate hikes by the Federal Reserve don’t directly impact 30-year mortgage rates. But the same factors influence both. A Wall Street Journal survey of economists finds everyone expects 1 more rate hike this year, while 42% expect 3 hikes next year and 21% project 4 hikes. As of this latest survey, the economist group projects federal funds will reach 3.08% on average by the end of 2019.

Fed Chair Powell said there are more rate hikes coming since rates are “a long way” from neutral and are still considered accommodative. Fed Chair Powell said the country could be at a “unique” time in its history given “a remarkably positive outlook” and that he expects the unemployment rate will remain below 4% and inflation will stay near 2% through the end of 2020. Meanwhile, Fed Richmond President Barkin said in a recent speech that, “growth is solid, unemployment is low and inflation is at target”.

Goldman Sachs economists say there is not much sign of a recession in the next 3Ys and only calculate a 36% chance of a recession during that time. This is below historical averages because of strong growth and lessening financial concerns. S&P is projecting a 12% chance of a recession over the next 12 months. While double the expectation of May 2017, it remains well below the 30% threshold that dictates the “more likely” chances of a recession by S&P economists.

On the demand side (since prices are set by both supply and demand), overseas investors are buying fewer U.S. securities. For example, the WSJ reports that foreigners increased their Treasury holdings by $78 billion in the first eight months of 2018, just over half of what they bought during the same period last year. And the U.S. government is increasing the size of regular bond auctions to fill a growing U.S. budget gap. The U.S. Department of Treasury, however, expects to issue $425 billion of marketable debt in Q4, down $15 billion from previous expectations. Borrowing for Q1 2019 is expected to reach $356 billion. Foreign buyers now hold 41% of outstanding Treasury debt, their lowest share in 15 years, per the U.S. Treasury. China and Japan still both own more than $1 trillion of U.S. debt. Lenders know that Treasury yields serve as reference rate for mortgages, business loans, and other borrowing. Stocks and bonds don’t work inversely, but rising yields tend to hurt stocks by raising companies’ and investors’ borrowing costs.

Two days ago it was announced that the US Treasury expects to further increase its borrowing by issuing $425 billion in net marketable debt through the end of the year to finance the widening federal budget deficit. Given these figures, government borrowing will amount to $1.34 trillion this year, more than double the 2017 figure.

Recent economic data was a tale of divergence between the lethargic housing sector and the overall improving economy. Both new and existing home sales fell short of expectations in July as rising prices and a tight inventory may be leading to buyer fatigue. Existing home sales declined 0.7 percent while new home sales fell 1.7 percent in July following declines in June. Tight inventories continue to be a concern as existing homes lasted an average of 27 days on the market. The median home price of an existing single-family home eased from June’s record high of $276,500 to $272,300. On the other side of things, durable goods orders increased 0.2 percent in July, excluding the volatile transportation component. The strength was broad-based across many categories and unfilled orders remain high. The end of the week brought a speech from Fed Chair Jerome Powell where he reiterated the Fed’s current view that the economy has strengthened and that gradual rate increases remain likely in the near term.

Looking at bonds yesterday, the U.S. 10-year closed at 3.11% on no real market-moving news. The Conference Board’s Consumer Confidence Index for October increased to its highest reading since September 2000 as strong employment growth continues aid consumer attitudes on current conditions and the outlook. Fears around the trade war and rising rates are still underpinning, and will continue to underpin investor thought, though attention now turns to major tech results including from Apple and Friday’s jobs report.

Jobs and housing drive the economy. Today’s calendar kicked off with mortgage applications from the MBA for the week ending October 26 (echoing what lock desks knew, apps were -2.5% with refis accounting for 39%). October ADP employment has also been released (227k, topping forecasts). The Q3 Employment Cost Index is next, which coincides with the release by the Treasury of the details of next week’s Quarterly Refunding and potential details relating to the TIPS calendar. Chicago PMI for October is due for release at 9:45am. In the very early going rates are higher versus last night’s close (10-year yielding 3.14%) and agency MBS prices are worse a solid .125.

My daughter asked me for a pet spider for her birthday. So I went to our local pet shop and they were $50!!

Forget this, I thought, I can get one cheaper off the web.

Rob

For me October included time in Washington (State and DC), California, Tennessee, North Carolina, and Nevada. Lenders are talking about technology, the rate of change, and the overwhelming options available to LOs. And for home buyers, the process & economics are changing. Thanks to Amy R. who sent along this new company site. The buyer pays nothing, the seller pays 1.95 points to Ribbon, and the company ushers the buyer through the process. If the buyer is delayed in financing, “We will resell/convey the home back to you at the same price we purchased it for on the official purchase agreement.” And don’t forget OpenDoor or Redfin’s 1% commission. Do you think real estate agents are welcoming this?

Jobs, business opportunities

A dynamic, highly successful billion-dollar retail IMB is seeking a talented Chief Financial Officer to lead its accounting, HR, and capital markets departments. The CFO directly assists the Executive Management Team on all strategic and tactical matters as they relate to budget management, cost benefit analysis, forecasting needs and the securing of new funding. The position is offered in the company’s intermountain west corporate office, and experience with AMB and Riivos (formerly Alight) is a big plus. If you’re interested in working with an exceptional executive team at a company with an incredible culture, send resume to me for forwarding. All inquiries are confidential; please specify opportunity.

A motivated and experienced investor is seeking to acquire a FULL EAGLE/HUD Designated or VA Automatic Authority mortgage company. Licensed in CA would be preferred but is not required. The ideal situation is for current shareholders to liquidate all or a large portion of their equity through the transaction. Principals would be willing to negotiate/keep the existing team. Interested parties please contact me; please specify the listing.

New Penn Financial is looking for a dynamic, growth-minded, producing sales manager to fill an important sales leadership role in a Joint Venture partnership. This prominent multi-state real estate agency in the Cleveland, Ohio area is one of New Penn’s newest partnerships. “We are very excited to launch this new venture and partner with another outstanding real estate agency,” Senior Vice President, Corey Caster said. “This venture represents another major step in the growth of our industry-leading Joint Venture platform.” If you are interested in hearing more about how to step into a prominent management role with an in-house audience, contact Vincent Daino, Vice President of Recruiting and Business Development at New Penn Financial. Additional opportunities are available for loan officers and producing managers throughout the country within New Penn’s existing real estate partnerships, contact Vince for more details.

Caliber Home Loans, Inc. has continued to thrive during a challenging year for the mortgage industry. Inside Mortgage Finance recently ranked Caliber 3^rd among non-bank lenders in the country, based on 2018 volume through September, for producing over $32 billion! Comprised of Retail, Wholesale, Correspondent and Consumer Direct sales channels, Caliber’s strength in numbers comes from its purchase volume. Caliber can attribute strong purchase volume to the talent of its sales organizations, the launch of new products like Elite Access, and streamlined operations. Genuine success relies on teamwork, and everyone at Caliber Home Loans understands this. If you’re interested in joining Caliber’s national network of producers visit www.joincalibernow.com or email Jeremy DeRosa.

For the 4^th year in a row, PrimeLending was recognized on the prestigious 100 Best Workplaces for Women list by Great Place to Work and Fortune. This year, the company ranked #13 based on feedback from more than 400,000 employee surveys from businesses in all sectors. PrimeLending’s ranking considers how well women are represented within the company’s workforce. In fact, 45% of all VP roles and above, and 43% of retail leadership roles are held by women, like Mary Pugh, Charlotte Branch Manager. “Joining PrimeLending this past Spring has been empowering. From the leadership team, to the Ops organization, I have all the support I need to confidently achieve my goals, grow my branch and perform up to my ultimate potential,” Mary said. Additionally, PrimeLending has been ranked a Best Workplace for Diversity, Parents and Generation X. If you’re ready to work for an award-winning company, contact Brian Miller (469.737.5729)!

Lender products and services

JMAC Lending is extending its $500 Government Appraisal Fee Credit to include all Conventional Purchase loans. “Our Government lending promotion has been such a huge success that we are pleased to extend this special,” JMAC Founder and President Christina Pham says. “We want to thank our brokers for doing business with JMAC and extend a warm invitation to new brokers to grow their business with us.” Click here to learn more about JMAC’s products and learn more about the $500 Appraisal Fee Credit promo for Purchase loans. Contact JMAC at iwant@JMACLending.com or call 844.888.5622.

Did you know 60-80% of customers who describe themselves as satisfied do not go back to do more business with the company that initially satisfied them? It’s a shocking fact, and the truth is loyalty means nothing if the borrower can’t remember who the correspondent lender was that did the phenomenal job. To capture the lifetime value of a borrower, stay top of mind with initiatives like co-branding. If the statement from your correspondent investor goes out to your former borrower with your name or logo on it, chances are you’ll be remembered 5 or 10 years from now when they’re looking for a new mortgage. Don’t let your borrowers forget who you are! Read more about the lifetime value of a customer in this TMS white paper.

Disaster impacts

Moody’s Corporation weighed in on Hurricane Michael’s potential impact on RMBS (residential mortgage-backed securities). “As with past hurricanes, damage caused by Hurricane Michael poses a minor credit risk to RMBS with high exposure to the counties in the storm’s path, in this case, those in the Florida panhandle, Alabama and Georgia. Excluding SFR, RMBS exposure to the counties in Florida, Alabama and Georgia expected to be affected by the storm is small at less than 1% across the various asset classes,” stated Moody’s Senior Vice President Deepika Kothari. “Single-family rental (SFR) RMBS have a relatively higher exposure with assets in Florida and Georgia totaling about 1.5% of collateral. In addition to the small exposures, insurance protections and servicer relief options typically help mitigate the negative impacts of hurricanes. For SFR transactions, blanket insurance policies that cover windstorm damages for all properties, and flood insurance for homes in special hazard areas, will provide some protection,” continued Kothari.

Hurricane Michael… In commercial real estate news, by one calculation, CMBS exposure in the state of Florida totals about $53.3bn. However, most of the exposure falls within Miami-Dade county ($7.8bn), Orange county ($6.8bn) and Broward county ($5.3bn), none of which were in the path of Hurricane Michael. Of the 13 counties where residents were subject to mandatory evacuation, CMBS exposure was concentrated in nine counties. The allocated exposure, by property allocated balance, totals about $963.1mn, which is spread across 105 different CMBS transactions, with only six transactions having greater than 5% exposure.

FEMA reminds employers to “Prepare your employees.” “For your workers, taking care of themselves, their homes, and their families is job #1. Yet, you won’t be able to recover from a natural disaster on your own. You need your employees, so be sure everyone is protected now. Help employees help you by deciding how you’ll communicate with staff during and after a major weather event. Then form a disaster relief committee. Employee resources are available to download from FEMA, so share them with staff and remind everyone to assemble emergency kits and plan escape routes. Hold workshops with a disaster preparedness professional who can discuss advance steps employees can take. Finally, let employees consider ways they might help each other, perhaps taking essentials to people in need or letting a coworker stay in a guest bedroom. Even with prepared staff members, your company will still operate with a skeleton crew in the wake of a national disaster. Some of your employees may be subject to mandatory evacuations and may find it difficult to return, if their homes flood or the area between an emergency shelter and home is impassable. Be ready to meet immediate customer needs, especially for cash, with just a small proportion of your usual staff to help.”

As a brief reminder for bankers, here is a short list to remember around disaster planning from Agility Recovery, a business continuity and disaster recovery company: Know your power requirements. Power is the top asset that banks struggle to maintain or regain. Ask an electrician to define your power needs now, so you’ll know how much juice you need to run your bank if and when the public power grid goes down. Have access to multiple vendors. Generators and fuel are in very high demand after a natural disaster. It may not be possible to telephone the local rental or fuel supply company to have them deliver what you need. The same storm might hit their business too, leaving them with reduced capacity. Reach out to a handful of vendors now, including businesses outside your geographic area. Let them know about your power requirements and your interest in being a customer during and after the next big storm. If they have a preferred client list, ask to be on it.

For HUD’s part, it will speed federal disaster assistance to the State of Florida and provide support to homeowners and low-income renters forced from their homes due to Hurricane Michael. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county. HUD is: Providing immediate foreclosure relief – HUD’s automatic 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages commenced for the Florida counties covered under yesterday’s Presidential declaration on the date of the declaration. For assistance, call your loan servicer or FHA’s Resource Center at 1-800-304-9320.

Making mortgage insurance available – HUD’s Section 203(h) program provides FHA insurance to disaster victims whose homes were destroyed or damaged to such an extent that reconstruction or replacement is necessary and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs; Making insurance available for both mortgages and home rehabilitation – HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; Information on housing providers and HUD programs – The Department will share information with FEMA and the State on housing providers that may have available units in the impacted counties. This includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.

The Independent Community Bankers of America (ICBA) and the nation’s community banks remind consumers that they can help alleviate financial concerns by planning in advance of a natural disaster or emergency. ICBA offers the following tips to help consumers prepare and recover from a natural disaster. Prepare backup communications plans if both cellular and landline service fail. You may want to be fully informed ahead of time of your cellular and satellite communications options. Store digital and paper copies of critical documents in a safe deposit box. These include a driver’s license, passport or military ID, bank and investment account information, proof of occupancy, a mortgage deed, insurance policies and three years of tax returns. Consider placing these items in a waterproof bag. Make additional copies of personal documents—marriage license, birth certificates, adoption papers—for safekeeping and alert a relative, trustee or attorney of their location. Print out contact information for trustees, guardians and executors and store it in a safe deposit box or give a copy to a trusted family member or friend.

Capital markets

MIAC’s capital markets group is pleased to announce its exclusive offering of ~$25mm reperforming residential whole loans. The collateral consists of 63% modified loans, ~6 months performing, average UPB of ~$184k. Bids are due Friday, November 9^th. Interested parties should contact their MIAC sales representative at 212-233-1250 or Steve Harris for additional information.

The U.S. 10-year closed +5 bps to 3.16% on little material news yesterday, similar to Tuesday. The biggest news of the day was a London Times report that U.K. and European negotiators have reached a tentative agreement that would give U.K. financial services companies continued access to European markets after Brexit. China’s President Xi Jinping of China signaled increased urgency for more measures to combat the slowing economy. Those words came as October marked the worst month for global equity shares since May 2012. The focus now turns to Apple earnings today and the monthly U.S. jobs report tomorrow.

We’ve already had a fair chunk of scheduled news in the U.S.: job cuts from Challenger, Gray & Christmas for October (+37% to 76k, the highest since mid-2015!), initial jobless claims (down to 214k), Q3 productivity (+2.2% in the 3^rd quarter, strong!), and unit labor costs. After I send this commentary out we’ll have Market manufacturing PMI (9:45AM ET), followed by ISM PMI for October (10AM ET) and September construction spending, seen increasing. In the early going the 10-year is yielding 3.16% and agency MBS prices are worse a few ticks versus Wednesday’s close.

“Stop trying to make everyone happy. You’re not tequila.”

Rob

Many states “gain an hour” Sunday morning by setting clocks back. Robots don’t care what time it is – will they build your next house? Companies like Modular Home Builder or Baltimore’s Blueprint Robotics Inc. are attracting attention. Houses are built on an assembly line, using robots that fire thousands of nails into studs each day without missing. Other machines cut, sand, drill, and insulate. These factories are filling in for a shortage of skilled workers that’s crimped construction of residences across the country. Weather isn’t a factor, houses are constructed off-site for less money, and in a fraction of the time. These aren’t trailer homes, or Sears’ kit homes from the early 1900s. Builders and developers use the modular factories as subcontractors to produce homes in sections, which are then assembled on-site by local laborers like Legos. There are transportation costs and hassles to be considered, and possible restrictions on size loads on highways. But the technique is gaining in popularity.

Jobs, business opportunities

Are you a Wholesale Account Executive that’s ready to elevate your business in the Atlanta market? “Step into a prime opportunity with Plaza Home Mortgage. One of our talented reps has moved to a different territory, and we have more than 40 approved accounts in Georgia – plus a pipeline of active loans for a sales-superstar to take over. Enjoy exclusivity as the only Plaza AE in that market. With Plaza, you have one of the most extensive product offerings in the country, no traditional retail to compete with your brokers and the latest technology to keep your clients happy. You also have access to Non-Delegated and Delegated Correspondent channels.” For a confidential conversation to learn more, contact Plaza Sales Manager Mark Boleky at 904-207-3688 or visit the Plaza Career page.

Ginnie Mae Director and Experienced Loan Originators: With over 25 years of mortgage lending, one of the largest independent lenders in the Greater Philadelphia / Delaware Valley area is expanding and is looking for someone local to lead its Ginnie Mae operations with a very competitive compensation package along with flexible work options. Must have significant experience in issuance of Ginnie Mae securities, sub-servicer oversight, and investor reporting. To further expedite its growth, the company is also seeking experienced loan originators and are offering top level compensation packages. Please send confidential inquiries to me for forwarding.

NOVA® Home Loans is excited to announce that Dave Heuermann has joined the company as National Sales Manager. Heuermann, a leader in mortgage lending, will be responsible for NOVA® Home Loans’ business and sales efforts at both local and national levels. “We are very excited to welcome Dave Heuermann to the NOVA® family,” said COO Lance Dickson. “Dave has had tremendous success in leading successful mortgage teams all while improving operations and providing systematic growth in both Arizona and California. We are confident that his experience and unique outlook on business will further our commitment of providing the best mortgage products and outstanding customer service.” With 30 years of experience as a leader in the mortgage lending industry, Heuermann is known for building successful and highly industrious teams. “I have a vision for NOVA ® and I look forward to creating strong and fruitful relationships” said Heuermann.

“Are you a branch manager who wants a bigger piece of the profitability you bring to your company? At Network Funding, we have a Producing Branch Manager compensation plan that puts the branch manager back in the driver’s seat with branch P&L visibility, control, and a bigger piece of the pie. Call or e-mail Executive Vice President, Brett Snortland (832-545-4653) to get your piece of the profit.”

A thriving independent mortgage banker with a dynamic platform, excellent support, diverse product offerings, and exceptional, engaged leadership, is looking to expand in to the Colorado Springs market. The ideal candidate will be a seasoned Branch Manager with a minimum of five years’ experience in mortgage banking. Excellent leadership and recruiting skills a must. Send confidential resumes to me for forwarding and specify opportunity.

Blue Water Financial Technologies has added to its growing executive team and hired Jason Sweeney as Executive Director, Business Development where he will be responsible for new client acquisition, overseeing all outbound business development efforts. Congrats!

Lender products & services

For more than five years, Floify’s next-generation point-of-sale platform has been improving loan origination workflows through their constantly evolving and expanding mortgage automation engine and robust suite of integrations. Now they’ve got their eye on completely revolutionizing the process lenders use to manage, send, and receive loan disclosures, via the new and improved Floify Disclosure Desk. Enterprise lenders seeking to streamline the time-intensive and error-prone disclosure process will find tremendous value in the ability to deliver these sensitive documents, into the same secure point-of-sale system their clients know and love, in only two-clicks! If you’ve been considering incorporating an end-to-end point-of-sale solution like Floify into your lending operation, now is the perfect time to take advantage of this comprehensive system. Request a demo to learn more.

Are you a hunter or a farmer? And what’s that got to do with subservicing anyway? According to the new TMS white paper, make sure you don’t lose the cost of acquiring a new customer (“Hunting”) by handing them over to a subservicer who doesn’t help you retain (“Farming”) that customer for future value. Choose a subservicing partner who will deliver the same level of customer service your customers have come to expect from you. See how one bad customer service experience can have a lasting negative effect on business.

Are you looking for a warehouse lender that understands your business needs? Maybe one that is not competing for market share with your branches or correspondent division? Comerica Bank’s approach to warehouse lending spans six decades and is just one piece of a much-larger, diversified business banking strategy. Comerica Bank is a $71 billion bank that focuses on serving the needs business owners. At Comerica Bank, our relationship begins with you, the mortgage banker. Please allow us the opportunity to tailor a warehouse solution to support your strategy and goals. With lines of credit from $5 million to over $100 million, we are proud to serve a broad spectrum of mortgage companies across the country. To see how Comerica Bank can raise your expectations of what a bank can be, contact Von Ringger (313-222-9285). Member FDIC. Equal Opportunity Lender. Loans subject to credit approval.

Disaster updates from Agencies & lenders

The Freddie Mac Guide 2018-18 announced Updates to the Loan Collateral Advisor^® score structure, feedback messages and eligibility for representation and warranty relief for property value only. It also includes updates to condominium projects requirements and flexibilities for condominium project reviews, Freddie Mac Condo Project Advisor^SM and a New Guide chapter with requirements and flexibilities for properties affected by disasters, including the major disaster plan.

Fannie Mae issued a reminder to those impacted by Hurricane Michael of the options available for mortgage assistance. Under Fannie Mae’s guidelines for single-family mortgages. Homeowners impacted by Hurricane Michael are eligible to stop making mortgage payments for up to 12 months, during which time they will not incur late fees during this temporary payment break and will not have delinquencies reported to the credit bureaus. Servicers are authorized to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days without any contact with the homeowner if the servicer believes the homeowner has been affected by a disaster. Payment forbearance of up to 12 months is available in many circumstances.

Servicers must suspend foreclosure and other legal proceedings if the servicer believes the homeowner has been impacted by a disaster. Homeowners can reach out to Fannie Mae directly by calling 1-800-2FANNIE (1-800-232-6643). For more information, please visit www.knowyouroptions.com/relief.

ClosingCorp, provider of residential real estate closing cost data and technology for the mortgage and real estate services industries, today estimated that more than 1,600 pending mortgage transactions currently in progress are in jeopardy, because of Hurricane Michael. The loans, which are being originated by more than 100 different lenders, have a combined value of more than $400 million. ClosingCorp based its estimate on “in-flight” mortgage applications in 13 Florida counties that are due to close between now and the end of December. The counties are: Bay, Calhoun, Escambia, Franklin, Gulf, Jefferson, Leon, Liberty, Okaloosa, Santa Rosa, Taylor, Wakulla, and Walton. While some of the properties are at Low or Moderate risk of damage, in many cases, new inspections and often new appraisals will be required before the mortgages can be approved and the sales completed. In some instances, the damage will result in significant delays or cause deals to fall apart. ClosingCorp is proactively notifying its lender clients about which loans within these counties and will be working with them on expanded reviews as requested.

Mortgage Solutions Financial posted an announcement pertaining to Wisconsin Severe Storms.

Pacific Union Financial continues monitoring the impact of Hurricane Florence and the resulting damage and flooding currently affecting North and South Carolina. Any properties located within areas identified by the Federal Emergency Management Agency (FEMA) offering private assistance will require confirmation, per its published guidelines, that the subject property has not been affected by the hurricane. This confirmation includes borrower written certification of the condition of the property prior to clear to close by Pacific Union. The counties of Chatham, Durham and Guilford had been added to the North Carolina disaster declaration.

AmeriHome Mortgage posted the following Hurricane Florence update: on 10/26/2018, with DR-4393, FEMA granted federal disaster aid with individual assistance to 3 additional North Carolina counties to include Chatham, Durham and Guilford affected by Hurricane Florence during the period of 9/7/2018 to 9/29/2018.

Mortgage Solutions Financial posted a revised announcement regarding the Hurricane Michael- Disaster Alert.

For FEMA declared disaster areas of Wisconsin, loans submitted with an appraisal dated on or before the incident period end date of September 14^th or for those submitted without an appraisal, Sun West Mortgage Company, Inc. 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. The inspection must verify that the property is sound, habitable and in the same condition as when it was appraised.

Fifth Third Correspondent Lenders must adhere to Fifth Third’s Disaster Policy located in Chapter 7, Section C of the Correspondent Seller Guide Underwriting Guide and the disaster policy overlay in the Overlay Chart. Choose a link below to view the most recent FEMA disaster declarations. Florida Hurricane Michael,, Georgia Hurricane Michael, North Carolina Hurricane Florence, and Wisconsin disaster areas.

loanDepot Wholesale posted an announcement with update information on its Jumbo Advantage Program and the Hurricane Michael Disaster.

Capital markets

Redwood has successfully completed its sixth securitization of the proprietary Redwood Choice loan program, further solidifying it as the premier buyer of expanded prime and Non-QM loans. Each of Redwood’s expanded prime and Non-QM programs continue to grow in popularity with originators as they realize it’s the same Redwood process and seller experience only now they can cast a much larger net. Redwood’s partnership with its sellers on these programs allows loan officers to create deeper relationships with their customer and referral base. Redwood is excited to offer their partners the tools to thrive in a challenging market. Redwood encourages loan officers at all their partners to experience the ease of dealing with the number one purchaser of jumbo expanded prime and Non-QM loans.

Optimal Blue’s Digital Loan Trading Platform, Resitrader, has announced the next phase of its lights-out integration with Freddie Mac’s Loan Selling Advisor®. Built upon the automated pricing and commitment integration announced in August, this phase fully automates cash pricing and commitments to include cash pay-ups for fixed-rate mortgages across all specified loan attributes. Replacing Freddie Mac’s manual spot bid process, Resitrader extends its integration with Freddie Mac’s Loan Selling Advisor® and the associated committing API to enable a fully-automated cash contract commitment process for mortgages with original note amounts less than or equal to $200,000, investment property mortgages, mortgages in the state of New York, mortgages with credit scores below 700, 10-year term mortgages, and super conforming mortgages. Available immediately to all Resitrader clients without the burden of time-consuming system upgrades, Optimal Blue has once again demonstrated to its clients their commitments of ongoing innovation, meaningful automation, and first-to-market advantage.

Yesterday the benchmark U.S. 10-year at 3.14% as Treasuries across the curve mirrored a similar rally, the 2-year, 5-year, and 30-year all following minimally in the same direction taking place against the backdrop of receding rate hike expectations. The implied probability of a rate hike in December decreased to 74.3% from 77.3% yesterday, as Q3 productivity surpassed Q2 printed figures, double the prior 10-quarter average increase, which should signal a better standard of living. Internationally, the Bank of England voted 9-0 to leave its bank rate and asset purchases unchanged at their respective 0.75% and GBP435 billion

Turning to today, we have October Nonfarm Payrolls (250k, topping forecasts, but with a back-month revision down), Average Hourly Earnings (+.2%), and the Unemployment Rate (3.7%). The Trade Deficit widened to $54 billion. This was the final jobs report before next Tuesday’s congressional elections. Coming up is the minor September Factory Orders at 10AM ET. After the strong employment data rates are higher versus Thursday’s close: the 10-year is yielding 3.17% and agency MBS prices are worse .250.

(Thanks to Tony H. for this one.)

In any 2-horse race (politics included) they both tell the truth.

Winner: “I won, you lost.”

Loser: “No, I came in second place, you came in next to last.”

Rob

Oct. 8: AE, LO jobs, Chase cuts; reverse mortgage outsourcing & margin control products; training & events coming up

Oct. 9: White paper on customer service, warehouse product; appraisal biz: the state of PIWs and outsourcing

Oct. 13: Compensation, margin compression, setting passwords & cybersecurity update; corny joke front-runner

Oct. 15: LO jobs; digital products, new book for LOs; big bank mortgage earnings; M&A rolls on

Oct. 16: LO jobs, title co. opportunity; tech products run the gamut; Agency deals helping liquidity and risk transfer

Oct. 17: LO jobs; digital, warehouse, self-employed UW products; appraisal & valuation updates

Oct. 18: Service & sales jobs; HELOC & digital products; coast to coast upcoming events & training

Oct. 19: Loan mod, LO jobs; data filter product; appraisal white paper & valuation news; cap mkts. products

Oct. 20: Straight talk on lending environment; primer on manufactured housing: definitions, primary, secondary markets

Oct. 22: LO, construction lending jobs; broker, doc products; training & events; False Claims penalty

Oct. 23: Comp, technology, efficiency products; long list of credit changes around the biz turning heads

Oct. 24: Sales, LO jobs, title opportunity; non-QM, tech, sales products; M&A continues; U.S. Bank correspondent re-org

Oct. 25: Sales jobs; underwriting, sales tools; subservicer product; credit union primer; legal news from IL

Oct. 26: AE jobs; corresp., health, CRM products; wide array of vendor news; more tariff worries pushing rates

Oct. 27: Cybersecurity, password tips, two-factor authentication; blockchain legislation developments

Oct. 29: LO & corresp. jobs; compliance, broker, & app products; legal news from PrimeLending, BCFP, and Lehman – ugh

Oct. 30: AE jobs; borrower satisfaction products; upcoming events span the nation; price compression with high rates

Halloween: Sales & LO jobs; vendor M&A; what LOs should know about current rates & the economy

Nov. 1: CFO, LO sales mgt., jobs; branding study; disaster advice & research; servicing package for sale

Nov. 2: LO, AE, sales mgt. jobs; warehouse, subservicing products; lender disaster news; non-QM securitization