11/11: AE, MLO jobs; due diligence, fee collection, automation products; BofA’s affordable housing roll out

Happy Armistice Day (Veteran’s Day here in the U.S., remembering the end of WWI on the 11th hour of the 11th day of the 11th month.) Stocks trading, but bonds, including MBS, are closed. Let’s take a quick look at the primary and secondary markets. The bond markets are closed today, typically making rate sheets suspect for any lenders who are open. (The hedging of any locks today would have been either done yesterday or will be done Monday, exposing lenders to market moves during that time, so most price conservatively.) In the secondary markets, the Federal Reserve stopped buying MBS several months ago (via ending QE) thus impacting the demand side of the equation. But don’t forget that supply has dropped as well: October gross issuance of all agency mortgage bonds came to just $95.5 billion, its lowest since April 2019 and the seventh monthly decline in a row. In the primary markets, according to Curinos October 2022 funded mortgage volume decreased 63% YoY and 17% MoM. In the Retail channel, funded volume was down 67% YoY and 17% MoM. Mortgage rates were up roughly .5 percent from September and 3 percent from a year ago. Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures and drills into this data further here. (The usual podcast is taking a break for the Veteran’s Day holiday and will return Monday. It is available here and this week’s was sponsored by SimpleNexus, an nCino company and award-winning developer of mobile-first technology for the modern mortgage lender.)

MLO jobs

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PrimeLending’s Rate Redo is helping turn house hunters into homeowners despite high interest rates. Offering the chance to buy now and refi later with no additional lender fees is just the confidence-builder PrimeLending customers need to make a move in today’s challenging marketplace. Rate Redo started out as an idea from the field, but quickly became a company-wide promotion that’s benefitting customers all over the country. Our leadership team knows how to make market adjustments in a hurry to help customers achieve their goals. Rate Redo is one more way we’re relentlessly focused on finding the best solutions for our customers. Contact Nic Hartke or visit here to learn more.”

“Are you an Account Executive looking to expand into new territories? Grow your pipeline and spread Kindness alongside other motivated and seasoned professionals at Kind Lending, founded by CEO, Glenn Stearns. We’re adding Kind Ambassadors in all territories to join our upbeat and collaborative TPO to take advantage of a full suite of loan products including agency and Non-QM options with competitive financing solutions for a range of borrowers. Join the expanding team and enjoy competitive compensation with an unparalleled company culture fueled by leadership dedicated to shaking up the mortgage industry. Account executives, reach out to Delfino Aguilar, SVP of TPO Production or submit your confidential resume.”

Nations Lending offers 3-2-1 buydown to buyers. While many industry lenders are offering a 2-1 buydown term, Nations Lending has announced it’s offering a 3-2-1 temporary rate reduction to help buyers purchase the home of their dreams. The rate reduction offers lower mortgage payments in the first three years of the life of a loan, which will win over buyers who are considering buying now in this increased rate environment or those that might think they are priced out of the market. The temporary rate reduction also provides benefits to sellers by helping them keep their listing at the higher end and offering more in seller contributions in the trade-off. Nations allows sellers to contribute to the cost of the temporary buydown to lower the interest rate on the mortgage for a certain period. Lenders interested in joining Nations can get in touch with John Owens.

Lender and broker services, software, and products

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With so much uncertainty in our industry right now, AmeriHome remains a consistent leader in the correspondent lending space. With the added synergies of Western Alliance Bank’s warehouse lending and treasury management services as part of a complete business relationship, AmeriHome is a business partner you should be working with. AmeriHome is thrilled to announce Dawn Frensdorff as the newest member of the Delegated Sales team! Dawn was previously part of the Non-Delegated sales team and is the VP, Account Executive handling Delegated Sales in Southern California and Hawaii. AmeriHome Non-Delegated recently launched VA Home Loans as well as INDECOMM’s IncomeGenius®, a robust tool that automates income calculations for self-employed borrowers and allows originators to deliver a more complete loan file. And if you’re looking to transition from broker to banker, AmeriHome can facilitate the preparation of your CDs and Closing Documents for you! Reach out to get connected.

“Despite this challenging market, DocProbe would like to congratulate our partners at Guild Mortgage on the one year anniversary of our friendship. David Battany, Celia Coulter: thank you for your trust and encouragement. We are proud of the successful partnership we have built together and appreciate everything you do for the industry. To the rest of you, whether you are closing 100 or 10,000 loans a month, entrust DocProbe to manage your Trailing Documents and Secondary Market fulfillmentEmail us to learn how our AI powered and TLI (title-lender-investor) integrated platform allows DocProbe to manage your Final Docs, so that you don’t have to.”

The right intelligent automation solution can lower your costs to originate, a very real benefit when volumes are down. It can help your operation run more efficiently, more cost-effectively and more flexibly. The Mortgage Automation Suite, brought to you by Richey May Automate and Zoral Group, provides the solution and support you need to be more flexible in response to market cycles. Along with cost efficiencies and stability, it can also improve accuracy and reduce repurchases. Learn more about how the Mortgage Automation Suite can help your business during difficult cycles.

Upfront fees. Everyone does them the same way, they’re always a disaster and definitely not cost-effective. Loan Officers capture credit card numbers on forms, and someone in Operations then keys them into a card processor and manually updates the LOS. Upfront fee collection is the poster child of inefficiency. How about this instead… The loan officer clicks a button, and the borrower gets a text message with a link and pays the fees on THEIR device. The LOS is automatically updated, and everyone gets the receipt. No more declines. No more incorrect card numbers. No more PCI compliance issues. No more wasted labor. It’s called Fee Chaser by LenderLogix, and it’s how the most efficient lenders collect their fees. Check it out here.

Shift your QC and due diligence from costs to values. QC and due diligence don’t have to burden your lending business with costly overhead and slow, inconsistent results. Maxwell Diligence’s comprehensive range of QC and due diligence services offer competitive pricing, robust reporting, and customer service dedicated to delivering on SLAs. Leveraging a 100% onshore team with an average of 15 years’ industry experience, Maxwell Diligence alleviates the need for costly internal staff while retaining high-quality results. Its technology-enabled platform reliably delivers trusted outcomes on competitive timelines, saving your business money and reducing risk regardless of market conditions and regulatory environments. Plus, Maxwell’s client-dedicated customer service ensures transparency and support throughout the process. To learn how Maxwell Diligence can save you money while driving reliable results, click here to schedule a call with our team.

Lender news of note

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Usually, I will post news from the Agencies, correspondent investors, and wholesalers. But there is also plenty going on in retail news. So here on Armistice Day around the world, Veteran’s Day here, let us take a look at a bit of other news.

Bank of America’s $15 billion Community Homeownership Commitment® “aims to help more individuals and families affordably buy a home through a combination of specially-designed products, resources and expertise to address one of the biggest barriers to homeownership – the upfront costs. The program includes Down payment and closing cost grants that gives eligible homebuyers in select markets 3% of the home purchase price up to $10,000 (whichever is less), no repayment necessary. America’s Home Grant® gives eligible buyers a lender credit up to $7,500 to be used for non-recurring closing costs or to buy down their interest rate and it can be used with the Down Payment Grant. Bank of America’s Down Payment Center helps homebuyers easily search for down payment and closing cost assistance programs in their area. Bank of America’s low down payment loans are competitive, fixed-rate mortgages with down payments as low as 3%, requiring lower- cost or even no mortgage insurance.

loanDepot has partnered with National HomeCorp, a Georgia-based homebuilder specializing in affordable single-family homes, to form a new joint venture, NHC Mortgage. LD’s wholesale department was one of the casualties of this year’s precipitous drop in volumes and revenue, so the company’s attention has shifted to its retail department and a rumored interest in the correspondent channel. NHC is the latest in a string of joint ventures for loanDepot as part of its strategy to expand its purchase market share and this will offer full-service, residential mortgage offering and personalized service in Florida, Iowa and North Carolina, with plans to add Kentucky, Arizona, Virginia, Texas, Alabama, Missouri, Georgia, Tennessee and South Carolina in 2023.

Capital markets: a good day to be closed to digest

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Bonds are closed today due to Armistice Day (11th month, 11th day, 11th hour, 11th minute), aka Veteran’s Day in the United States, but all the talk out there is about yesterday’s Consumer Price Index inflation data for October. The slight dip has definitely moved estimates of the Fed’s next move from an increase in overnight Fed Funds from .75 percent points down to .50 percent. As a reminder, October inflation was 7.7 percent year over year (Y-o-Y), and while down from 8.2 percent in September, there’s way more ground to cover as it is a long way from a “target” of 2 percent. The core rate, useful for anyone who doesn’t eat or use energy, also declined to 6.3 percent Y-o-Y from September’s 6.6 percent, the highest rate since 1982.

The bond market believes that is good news, a step in the right direction. But there is plenty of data coming out every month, so we’ll see.

Part 3 of 3 of some humorous but true political quotes not pointed at any party:
A politician is a fellow who will lay down your life for his country. (Texas Guinan)

Any American who is prepared to run for president should automatically, by definition, be disqualified from ever doing so. (Gore Vidal)

I have come to the conclusion that politics is too serious a matter to be left to the politicians. (Charles de Gaulle)

Politics is supposed to be the second-oldest profession. I have come to realize that it bears a very close resemblance to the first. (Ronald Reagan)

Politics:  [Poly “many” + tics “blood-sucking parasites”] (Larry Hardiman)

Instead of giving a politician the keys to the city, it might be better to change the locks. (Doug Larson)

Don’t vote, it only encourages them. (Author Unknown)

There ought to be one day, just one, when there is open season on senators. Will Rogers)

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. Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Rob Chrisman