Daily Mortgage News & Commentary

Apr. 15: Reverse, CFO, MLO, AE jobs; pre-approval, warehouse products; misc. investor changes; keen capital markets insight

Salutations dear Reader! Of course when you receive an email or letter that begins with that it is an automatic “delete.” But don’t delete this quite yet. Yes, the stock and bond markets are closed today for the Good Friday holiday, so beware of rate sheets, but that doesn’t stop the news and the topic that everyone is talking about: interest rates. 30-year fixed-rates for mortgage are now above 5 percent for the first time in more than a decade, and much higher if you’re adding in loan level price adjustments for high balance or 2nd homes. A tough sell for any MLO or lender whose business was 80 percent refi over the last couple years. We all knew rates were going to go higher, but is the unexpectedly rapid ascent that is a concern and that has begun to temper the U.S. housing boom and could usher new uncertainty into an economy dogged by soaring inflation. The 30-year fixed-rate mortgage rates have not been this high since February 2011. It is now commonly accepted that the U.S. Federal Reserve is trying to play major catch up with dampening inflation as it is causing instability in our economy. The Federal Reserve has launched a major initiative to rein in the highest inflation in 40 years. Fed officials are betting that higher interest rates will slash inflation and recalibrate the job market. But their plan also rests on the assumption that higher rates will cool demand for housing, especially while homes themselves are in such short supply. (The audio version of the commentary, with today off for the holiday, is normally 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.)

 

Jobs & new hires

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Don’t miss this opportunity to work for a leader in the business purpose lending space. A privately held mortgage REIT with approximately $1 billion in assets and more than $400 million of equity capital is seeking a dynamic and innovative CFO. This employer is highly regarded in the industry and poised for significant growth in 2022 and beyond. Qualified candidates will possess 15 years of experience in accounting, tax, and financial planning/analysis preferably in the mortgage industry. Experienced candidates should send their resumes to Anjelica Nixt for consideration.

“If you want to grow your wholesale business, Gershman Mortgage provides the best platform for you. Gershman Mortgage is looking to add a TPO Account Executive to its booming wholesale department! We provide competitive compensation, an entrepreneurial environment, superior client service, cutting edge technology, and in-house marketing. For 67 years, Gershman Mortgage has been family owned. Our leadership teams care about your success and growing your career. Click here to apply. To learn more about how amazing Gershman Mortgage is, check out our Employee Reviews. You can also contact Jeff Ogden, Sr. VP of Production to learn more.”

Towne Mortgage Company continues to demonstrate strength and stability as a TPO lender and as a nationally acclaimed top-rated places to work. Our Account Executives have unlimited opportunities in all channels: Wholesale, Non-Del, and Full Delegated offering single AE territories in large markets. Towne offers an extremely competitive compensation and benefits package to our Account Executives. We provide our Sales Teams with a full FNMA/FHLMC/GNMA agency product set, renovation (203K & FNMA HomeStyle), manual underwrites, Jumbo products with full delegation, and more! Let Towne’s years of experience in this space help you generate more business from your clients. Towne also offers flexibility based on client’s needs and can provide all in-house fulfillment from disclosures to retention of loan servicing. Towne is interested in filling open territories across the country. Please send your confidential inquiries to Mark Zierott.”

If you’re wanting to take your Originating career to the next level, we will get you there! In most cases when an originator hits a plateau it’s because the platform they are in doesn’t allow them to grow beyond what they’ve already achieved. One of the Top Originating teams in the nation is looking to help 1 Originator achieve their goals and successfully navigate a challenging market. Looking for a new opportunity is scary, but when that opportunity has a proven track record, a dedicated operations team that has been together for 4 rising rate cycles, fear turns into excitement! Top producers have some advantages not available to everyone. It’s time to give yourself those same advantages, start dominating your market, and take your career to the next level. If you close $30M or more per year and are looking for a breakthrough, contact Anjelica Nixt to schedule a confidential conversation.

“Are you ready to join a mortgage sales team that’s thriving and growing in 2022? Citizens Home Mortgage is a top 10 bank mortgage lender and servicer in the country and continues to invest in the business to grow market share. In fact, Citizens national expansion is a top priority in 2022 with its two acquisitions (HSBC East Coast bank branches and Investors Bank), which positions Citizens as a much bigger player in metro New York and New Jersey, metro Washington D.C. and Florida. We have no plans to slow down and we want the best in the industry to join us on the Citizens journey! We’re looking for Loan Officers and Sales Managers, who are passionate about the business and want to be part of a winning team that’s focused on success. All our new sales colleagues are partnered with a sales peer advisor for their first 60 days, accelerating their success from the start! We have positions open across our footprint and we’re ready to talk to you! Visit Citizens’ Jobs now.”

A leading national lender with a retail and wholesale platform is seeking a Director of Reverse Mortgage Lending to help build and grow an in-house reverse mortgage program. The ideal candidate is a demonstrated leader with minimum ten years robust experience in all facets of reverse lending, including but not limited to, development and implementation of a business plan, training, technology/LOS customization, state requirements, marketing, sales and operations recruitment and management, and secondary market relationships. The company is seeking a leader with a proven track record of growth, and who is a partner with and manages all aspects of a very strong operations, technology, and product development team. Please send resumes to Chrisman LLC’s Anjelica Nixt to setup a discussion; please specify the opportunity.

Unite Mortgage’s Co-Founder James Hooper is pleased to announce new additions to the Home Mortgage Alliance Corporation (HMAC) TPO division. Joining the team is 25+ year veteran Mike Tague. Mike has a proven track record of success within many top tier lenders. Also joining are Tony Santangelo and Donna Browne. Tony is a 34-year mortgage veteran who has managed both sales teams and operation staff covering the Mid-Atlantic and the entire Southeast for the balance of his career. Tony will lead the expansion for the Eastern US. Donna has 40 years of mortgage industry experience with significant focus on the wholesale channel. During her career, she has held additional related positions including operations management, compliance management, underwriting, branch management and sales throughout the West Coast. Donna will manage the Western US. Both will be under Mike as EVP of Wholesale. To learn more about our growing team or to join Unite Mortgage, email us or visit www.unitemortgage.com.

Nominations are now open for National Mortgage Professional Magazine’s 2022 Most Connected Mortgage Professionals. Complete your submission for a mortgage professional you know with a minimum of 3 years industry experience and at least 1000 followers, likes or connections between all social networks. Honorees to be features in the July 2022 issue of NMP. Click here to recognize a mortgage professional with a strong network and connections.

Lender & broker products and services

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Did you know Flagstar Bank warehouses construction loans? Did you know it has for five years? As the nation’s 2nd-largest warehouse lender, Flagstar knows the construction-loan market inside and out. More importantly, Flagstar knows what clients want from their lending partner: best-in-class service that always keeps its clients’ needs top of mind. It’s Flagstar’s Human Interest Rate in action: interest in clients, and interest in warehouse banking solutions that put them first. And of course, construction loans are just the start with Flagstar who also warehouses conventional, government-insured, non-QM, second mortgage, manufactured housing, and reverse mortgage loans. So, look for a partner you can grow with. Look to Flagstar for your construction loans, and for consolidating all your warehouse lines of credit. Contact Jeff Neufeld to discuss what Flagstar can do for your business.

HousingWire’s LendingLife newsletter is designed with loan originators in mind. Sent four times per week, LendingLife delivers the most important news and analysis straight from HousingWire’s award-winning newsroom. Subscribe to LendingLife and get the insights you need to keep moving the housing market forward.

Robert Broeksmit, MBA President & CEO, recently wrote about how lowering MIP would “translate directly into lower monthly mortgage payments for FHA borrowers, helping to counterbalance affordability challenges resulting from rising home prices and interest rates.”  A timely subject that got us thinking about how payment and closing cost scenarios are laid out for borrowers in the pre-approval stage. Instead of sending them a static PDF with a general overview, what if you gave them access to a dynamic mortgage calculator that’s customized to their specific financials? This would allow them to run their own scenarios while looking at houses – and instantly see the impact on their monthly payment if they decided to increase their bid by $10k on their dream home. Instant answers create confident buyers and confident buyers win bids. Check out QuickQual by LenderLogix, the pre-approval tool that educates borrowers and empowers them to make fast decisions in today’s competitive market.

Miscellaneous investor changes around the nation

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Pennymac is temporarily suspending the existing Pennymac Tax Transcript requirements. A new announcement will be issued when the requirements are reinstated. Note: USDA transactions require Tax Transcripts and Correspondents remain responsible for complying with all USDA requirements. In addition, there are no changes to the current guideline requirements for a signed 4506-C. This information can be found in PennyMac Announcement 22-23.

Wells Fargo Funding conducts various regulatory reviews on Loans delivered for purchase. Recent reviews indicate an elevated occurrence of missing or invalid documentation on Loans where a changed circumstance has occurred. To help avoid loan suspensions, the risk of indemnification, or the possibility of a repurchase, the observations and related recommendations are outline in Wells Fargo Funding Risk Advisory Bulletin 22-01.

Additional Helpful Tips to Avoid Common Suspense’s and Post-Funding Defects are available on wellsfargofunding.com in the Info Gallery under Client Tools.

Undisclosed debt continues to be an industry-wide issue causing delays with the loan review process and can affect purchase eligibility. Citi has developed an updated Best Practice addressing the topic. View Citi Correspondent Lending Updated Best Practice Announcement CL304, document is also posted on the Correspondent Lending Portal/Resources/Additional Resources/Training tab.

AmeriHome is temporarily suspending the requirements for tax returns and W-2 transcripts. The requirements for USDA, Portfolio Express, Portfolio Jumbo, and Portfolio Expanded programs will remain unchanged. For details, see AmeriHome Announcement 20220309-CL

On Friday, April 1st, Fifth Third began the annual lender recertification process. For more information, view Fifth Third Correspondent Lending Communiqué 2022-3.

Changes are coming for THDA DPA, effective for First Community Mortgage Wholesale

Rate Locks on or after Thursday, April 28. Details are posted in FCM Wholesale Announcement 2022-15THDA DPA Term and Program Name Changes.

Beginning Monday April 11, closing VOE’s for broker loans will completed by the Flagstar VOE team. View Flagstar Bank memo 22035 for details.

Flagstar Bank has taken a proactive approach to ensuring Settlement Agents are eligible earlier in the process. Agent selection and eligibility status can be viewed as early as the time of registration in the Request CD/Closing section on tpo.flagstar.com. Agents must be eligible and selected prior to Final Approval Clear to Close for all table funded loans. Effective for all loans moving to Image Package Received status on or after April 4. Prior to Close underwriting condition will populate as stated in Flagstar Bank memo 22034.

Due to IRS processing delays, there is a temporary delay in processing all 4506-C Tax Transcript submissions over the next thirty business days. This also means tax transcript order delivery, including IRS Tax Transcript Fulfillment Service order delivery, will be delayed. Temporary lending requirements are being implemented pertaining to Flagstar’s 4506-C Execution, view Flagstar Bank memo 22033 for details. Requirements and will remain in effect until the IRS reinstates acceptance of new 4506-C form submissions.

Fifth Third Correspondent Lending Communiqué Edition 2022-04 provides its updated long term lock upfront fee mailing address.

On Friday, April 1st, Fifth Third began the annual lender recertification process. For more information, view Fifth Third Correspondent Lending Communiqué 2022-3.

Citi Correspondent Lending updated policies related to vested restricted stock income, HOA fees for appraisal waivers, credit history and minimum tradelines for non-agency products. Also discussed in Citi Correspondent Lending Bulletin 2022-05, various clarifications related to borrowed funds, Homeownership Education / Housing Counseling / Consumer Credit Counseling and Home Possible appraisal waiver.

Mountain West Financial posted that the last day to lock loans using Chenoa Fund Edge Repayable, Chenoa Fund Edge Soft Second and Chenoa Fund Rate Advantage is July 2, 2022.

Upcoming changes to Chenoa Fund DPA FHA options are discussed in MWF Bulletin 22W-033.

The Vested Restricted Stock information posted in Citi Correspondent Lending Bulletin 2022-05 has been rescinded as well as all related policy updates.

Capital markets

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Let’s cut to the chase and not waste your time: the bond market, which includes mortgage-backed securities, is closed today. Investors and lenders will price conservatively (hedges may have been put on yesterday to hedge what is expected today in locks). Rates are expected to move higher throughout 2022, but of course not in a straight line and not at the pace we’ve seen recently. ‘Nuff said.

(With Good Friday and Easter, taxes aren’t due until Monday.)

The IRS tax agents decide to audit an elderly man, and summon him to the IRS office. The IRS auditor was not surprised when the old man showed up with his attorney.

The auditor said, “Well, sir, you have an extravagant lifestyle and no full-time employment, which you explain by saying that you win money gambling. I’m not sure the IRS finds that believable.”

“I’m a great gambler, and I can prove it,” says the elderly guy. “How about a demonstration?” The auditor thinks for a moment and says, “Alright.”

The old guy says, “I’ll bet you a thousand dollars that I can bite my own eye.” The auditor thinks a moment and says, “It’s a bet.” The elderly guy removes his glass eye and bites it. The auditor’s jaw drops. The old guy then says, “Now, I’ll bet you two thousand dollars that I can bite my other eye.”

The auditor can tell he isn’t blind, so he takes the bet. The elderly guy removes his dentures and bites his good eye. The stunned auditor now realizes he has wagered and lost three grand, with his attorney as a witness. He starts to get nervous.

“Want to go double or nothing?” the elderly person asks. “I’ll bet you six thousand dollars that I can stand on one side of your desk, and pee into that wastebasket on the other side, and never get a drop anywhere in between.”

The auditor, twice burned, is cautious now, but he looks carefully and decides there’s no way this old guy could possibly manage that stunt, so he agrees again.

The old guy stands beside the desk and unzips his pants, but although he strains mightily, he can’t make the stream reach the wastebasket on the other side, so he pretty much urinates all over the auditor’s desk.

The auditor leaps with joy, realizing that he has just turned a major loss into a huge win.

But the elderly guy’s attorney moans and puts his head in his hands.

“Are you okay?” the auditor asks.

“Not really,” says the attorney. “This morning, when he told me he’d been summoned for an audit, he bet me twenty-five thousand dollars that he could come in here and piddle all over your desk and that you’d be happy about it!”

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, “Lenders Continue to Pivot” about how lenders and MLOs continue to shift to a purchase-centric focus. 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.)