Apr. 25: AE jobs; warehouse, underwriting products; Agency news – HomeReady & cannabis

In low down payment and HFA news, HUD, dba the FHA, has agreed to a 90-day stay in implementation of Mortgagee Letter 19-06 (regarding down payment assistance) to have a 90 day comment period. The flurry reminded the industry that there are lots of options out there for low down payment loans. For example, Wells Fargo’s retail arm offers its 3% down “yourFirst Mortgage®.” Over in conventional land, there is something interesting as well. Anyone interested in lending to borrowers in that industry should read, “Fannie’s HomeReady Program Allows for Cannabis Industry Financing.” Lots more conventional conforming news below.

Employment & personnel moves

NewRez Wholesale, a nationwide and heavily capitalized lender, is looking for experienced Account Executives with an entrepreneurial spirit to join its growing team. Opportunities are available in the following areas: Miami, Minneapolis, Detroit, Houston, Phoenix, Denver, Chicago and northern California. “We are excited to bring new talent to the team,” says Mark Melini, National Wholesale Sales Manager. “Our growing product suite, flexible lending guidelines and fast broker onboarding process makes NewRez a great place to take your career to the next level. To learn more about available opportunities, contact: John McElhone for Miami, Dave Weatherford for Minneapolis, Detroit, Houston, Phoenix, Denver, and Chicago, and Mark Melini for northern California.

Congrats to Carolyn Covington who just started as Sales Account Executive with MyAMC. And to Jerry Godfrey, California Capital Mortgage Company’s new VP of Mortgage Originations. CCMC is licensed in 4 western states (CA, UT, ND, & MT) with 6 more coming soon.

Lender products and services

From industry-leading technology to professional expertise and convenient education opportunities, AFR offers an impressive range of value-added services to its broker partners: access to the secure online AFR Loan Center, which allows you to monitor and manage your loan pipeline 24/7 from virtually any device; free AFR University Training and Certification in unique programs for Manufactured Housing, Renovation Lending and One-Time Close construction; complimentary On-Demand Processing, so you can remain focused on production; automatic notifications when a house you closed with AFR is listed for sale or when AFR receives a payoff request; integration with various broker-focused origination platforms; and, an Alexa skill that allows you to check things like expiring rate locks and find out which loans have recently closed — all without lifting a finger. If those weren’t enough reasons to partner with AFR, you can find even more by visiting www.afrwholesale.com. Questions? Email

sales@afrwholesale.com (1-800-375-6071).

Regardless of market conditions, top producers always are able to stay out in front of the pack. Maxwell recently interviewed some of the country’s top-producing originators to understand how they’ve reached (and maintained) such a high level of success in a fluctuating market. Their new eBook, “14 Habits of High-Producing Loan Officers,” highlights the tips and tricks that make them stand out from the competition. An exclusive to Rob Chrisman subscribers, this eBook is a must-read for ambitious managers and originators looking to elevate their performance. Download your complimentary copy here.

MortgageFlex Systems believes in the power of strong integrations and relationships. This is still a people business where trust is at the core. Our seamless integrations with leading industry partners like IDS, Mercury, Essent, Arch MI, and our digital POS partner MortgageHippo allow us to bring more value to our lenders all while driving down the cost to originate. From blind integrations to bundled cost we focus on working synchronically with partners to provide the most simple and efficient solution to all lenders. At the end of the day, people want a partner and product they can rely on. A partner that will remain transparent from start to finish. It boils down to the power of strong integrations. MortgageFlex Systems will be at TMBA 103rd Annual Convention booth #108. Come visit John if you’d like a partner instead of just a vendor.”

Today’s lenders are expected to invest in technology that streamlines workflows and reduces operational costs, and they should expect the same commitment from their appraiser partners. Enter Anow, an appraisal office management platform that turbocharges appraisal turn times. Since its adoption by America’s largest independent appraisal management company, Nations Valuation Services, Anow has been helping the AMC cut appraisal times and saving its lender customers money on fees. According to NVS EVP of Operations Matthew Scott: “With Anow, we can provide lenders who choose to work with us a better overall borrower experience by expediting the appraisal, which leads to more repeat customers, more referral business and stronger loan pull-through.” Read the full case study to learn how Anow is revolutionizing appraisals for lenders and appraisers, or email Keith Ellis to request a demo.

What distinguishes a premier warehouse lender from the other choices available in this market? Find out by meeting Axos Bank (formerly BofI Federal Bank) Warehouse Professionals at the TMBA Annual in San Antonio. Our diverse product offerings include a broad array of non-agency/non-QM investors, loan amounts up to $5MM, facilities from $5MM to $125MM, and agency and government loans with no overlays. With extended funding times up to 5:30 pm ET and exceptional customer service just a phone call away, Axos Bank is an essential partner to help grow your business. Contact Eric Nelepovitz or Robert Martini at (888) 764-7080 to set up a meeting at the TMBA Annual.

Unlock opportunity in a growing market with Loan Product Advisor® asset and income modeler (AIM) for self-employed borrowers. AIM for self-employed is Freddie Mac’s solution to automate the manual lender process of assessing borrower income using tax return data. It’s also the industry’s only AUS-integrated self-employed borrower income calculation solution. AIM for self-employed makes it easier to do more business, close loans faster and get immediate income rep and warranty relief related to certain borrower employment income. Freddie Mac has teamed up with third-party service provider, LoanBeam®, in leveraging their expertise and powerful optical character recognition (OCR) technology to supply qualifying income for any applicant. Freddie Mac’s broad release of AIM for self-employed on March 6is the next step in their journey to provide innovative technologies that can help lenders turn more borrowers into homeowners. AIM for self-employed borrowers … and get YOUR edge.

New Construction Condo Market = Securitized Non-QM Market!!! Yes – you read that right. The 53,000 new construction condos built in 2018 equates to roughly $13 billion of closed loans which is approximately the size of the securitized non-QM market. So while non-QM gets the fanfare these days – new construction condos are a mainstay product for any successful LO. Do you want to dominate your competition in the new construction condo field? If so, Quicken Loans Mortgage Services (QLMS) is the only answer. QLMS just changed the new construction condo financing game. Introducing CondoMAXimum! Check out these mind-blowing benefits! • No non-warrantable pricing adjustment! • 25% pre-sale requirement instead of 50% with most lenders! • Only the building the client’s unit is in needs to be complete, not the entire phase! Blow away builders! Amaze realtors! Wow clients! Contact your QLMS AE about Condo Max today! And if you’re not approved with QLMS yet, contact us at http://bit.ly/QLMSChrisman. CondoMAXium – because everyone loves that “New Construction Condo Smell!”

Fannie & Freddie, conventional conforming changes roll on

Freddie Mac’s Guide Bulletin 2019-8 covers changes to approved Servicer reimbursement amounts. Updated requirements for insurance loss settlements. New required form to request a partial release of a lien or grant of an easement. Changes and reminders related to the Investor Reporting Change Initiative.

Fannie Mae’s Guide update SVC 2019-02 expands insurance loss proceeds requirements, clarifies servicer responsibilities after a disaster event, removes Mortgage Electronic Registration System content from the Servicing Guide (by consolidating it in the Selling Guide), and more. Also included are updated allowable foreclosure fees for Washington, New Hampshire, and Maine.

As a result of the Fannie Mae periodic review of risk-based pricing, it is implementing a 25-basis point (0.250%) loan-level price adjustment (LLPA) for loans secured by second homes with LTV ratios greater than 85%.

Fannie Mae posted a resource that summarizes recent updates to the Selling Guide and Desktop Underwriter® (DU®) validation service related to the Tax Cuts and Jobs Act.

As of May 20, Fannie Mae will issue Single-Family securities backed by fixed-rate and adjustable-rate mortgage loans or bonds through updated Mortgage-Backed Security (MBS) Fedwire instructions. Read the complete details.

PennyMac Announcement 19-17 provides updated information to Conventional and Government Purchase Special LLPA.

PennyMac posted Announcement 19-24 regarding updates to Conventional LLPAs.

A recent Citi Correspondent Lending bulletin contains credit policy updates such as overlay changes to DU and LPA transactions and occupancy requirements on purchase transactions. New notices to HAR programs and CITI underwriting fees as well as clarifications to topics such as Power of Attorney and UCC filing requirements.

loanDepot Wholesale and Correspondent’s What’s New Bulletin covers information regarding Jumbo Advantage and Equity Access program updates, VA appraisal changes and information regarding recent Freddie Mac and Fannie Mae bulletins.

Land Home Financial Services shared information that Fannie Mae has issued clarification which confirms Deferred Action for Childhood Arrivals (DACA) may be considered eligible borrowers. Applicants in the US with deferred action by USCIS must have a valid employment authorization document with C33 category and must meet all other Fannie Mae credit eligibility requirements. At this time, this is limited to Fannie Mae Loan Products.

RoundPoint Mortgage Servicing Corp. been approved by Fannie Mae and Freddie Mac to service and purchase electronic promissory notes, or eNotes. The arrangement allows RoundPoint to service new loan types and makes it a “one-stop shop” for counterparts looking to sell mortgage servicing rights (“MSRs”). RoundPoint set out to be approved for servicing eNotes by implementing a digital mortgage solution approved to use the MERS® eRegistry. The solution went through detailed testing with Fannie Mae and Freddie Mac along with a comprehensive review of all policies and procedures surrounding the management of eNotes.

Ditech Approved Correspondent Clients should note that effective Wednesday, April 17, 2019 with the 10:00 A.M. eastern rate sheet, ditech will be making loan amount LLPA adjustments for Conventional loans.

Mountain West Financial posted a bulletin regarding revised Fannie Mae DU Version 10.3 Release Notes.

Capital markets

Inflation? Regular Unleaded gas in the SF Bay Area is $4/gallon. Energy prices pushed consumer prices higher in March as tightening global crude oil supply drove up the price of West Texas Intermediate crude by nearly 50%. This has, in turn, led to high prices at the pump with the national average price for regular unleaded near $2.81 per gallon. The Producer Price Index increased 0.6 percent in March and is up 2.2 percent from a year ago. Energy prices saw their largest monthly gain since December 2009, and consumer prices increased 0.4 percent in March and similar to producer prices; saw a significant increase in energy prices. Neither, however, saw much change to prices excluding food and energy. On an annual basis, inflation remains within the Fed’s target and is currently no cause for alarm. Initial jobless claims hit a low not seen since October 1969 signaling labor market conditions remain very tight. Given the current economic conditions it is widely expected that the Fed will remain in pause mode during their upcoming meeting at the end of the month.

Rates: up some, down some. Yesterday was down some with U.S. Treasuries, and along with them agency MBS, rallying for the midweek session, including the 10-year dropping -5 bps to 2.52%, its lowest level in almost two weeks. There was some miscellaneous news from overseas not worth going into detail on, although in general it pointed to various slowing economies.

Like yesterday’s today’s domestic calendar is light like yesterday. We have already had the usual jobless claims () and durable goods orders for February (). At 11:00am the April KC Fed Manufacturing Index will be released. Treasury then has the $50 billion 1- and $35 billion 2-month bill auctions followed by $32 billion of 7-year notes. We begin today with agency MBS prices worse a few ticks and the 10-year yielding 2.52%.

I head to Philadelphia today to speak at the Past Presidents Dinner. Favorite things about folks from Philly?

You realize that your favorite desert is wooder ice. (It comes in churry, strawburry, and other assawrded flaverz.)

You find yourself using “Yo” and “Youse guys” when talking long distance to family members.

You know how to spell Schuylkill.

You think $2,500 a year for insurance on a 1977 Toyota Corolla is a bargain.

You find yourself at a nice restaurant thinking, “I wonder if they have cheese steaks?” or imagine breakfast without scrapple.

You believe the car on your left, flashing its turn signal and the driver pointing at your lane, wants you to close the gap with the car in front of you.

You can’t eat French fries without Cheeze Whiz.

You don’t think Wawa sounds funny.

You snub a cheese steak that isn’t on an Amoroso roll.

Your parents, brother, sisters, aunts, and uncles all live on the same block.

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, “MBS Liquidity: A Real Trooper.” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.


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

Rob Chrisman