Daily Mortgage News & Commentary

Apr. 6: MLO, AE jobs; eSign, jumbo, sales, appraisal products; warehouse wanted; FHA, VA news; QT ahead? Rates upward/apps downward

Grammar is important. What’s the difference between a kleptomaniac and a literalist? A literalist takes things literally. A kleptomaniac takes things, literally. How about the grammar of, “Rates ain’t going down any time soon.”? The global bond selloff continues as the day the Federal Reserve is expected to start downsizing its balance sheet draws nearer. On to QT (Quantitative Tightening?) The yield on the 10-year Treasury note is now above 2.6 percent, sending it back to ranges in which it traded in 2018 and 2019. For mortgage loan originators and lenders, rates are only one piece of the ugly landscape, and I received this. ““I have to take issue with your comments about LOs and higher rates. It’s not just rates, it’s the entire BS happening all at once. Rates I can handle, but what about inventory so no buyers? How about property values so high people can’t buy? How about all the cash buyers and the investors buying up all the properties?” There are a lot of stories about layoffs in our industry, no surprise given the increase in rates and the continuing decline in applications (down over 6 percent last week). As a reminder, those displaced can always post their resume for free at www.lendernews.com, and potential employers can view them for a nominal fee. (Today’s audio version of the commentary is available here and this week’s is sponsored by Optimal Blue, a division of Black Knight. Today’s has an interview on hedging and trading with Steve Baselice as he digs deep into how automation helps deliver the best possible execution price and protect day-one profit margins.)

Employment & personnel moves

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Atlantic Coast Mortgage, LLC (ACM) announced the addition of Lance Reordan as its new Chief Financial Officer. With 25 years of experience, Lance is a seasoned mortgage and real estate finance professional. His experience includes leading Treasury and Accounting teams for public and private companies in a wide array of financial areas, with particular focus on capital management, forecasting, and credit facility management. “We are excited to have Lance join the leadership team at ACM as our new CFO,” said Timur Tunador, CEO, Atlantic Coast Mortgage. “With his extensive experience leading finance and accounting teams in the mortgage and real estate industry, Lance will be an invaluable addition to our dynamic team and a key contributor to our continued success and growth.” Read the full article here.

Towne Mortgage Company continues to add top talent to its Management and Sales Teams. We are excited to announce Patrick McGrath who will manage our Northeast region. Patrick has many years of management experience and a great reputation in the industry. We look forward to watching him grow market share here. We are also pleased to welcome Rickey Juarez (Northern CA) and Shawn McKeever (Southern CA) to the Towne Family. “Adding top talent is critical in this competitive landscape and relationship is still a very important part of the business. We are extremely excited to have attracted this type of talent and expertise.” said Zierott, SVP TPO National Sales. Towne AEs can sell all three channels of business, including Delegated, and have access to a full FNMA/FHLMC/GNMA agency product set, renovation (203K, FNMA HomeStyle & FHLMC HomePossible), no minimum FICO FHA, manual underwrites and manufactured housing loans. All this, and we service most of our loans! AEs interested in Towne opportunities please send your confidential inquiries to Mark Zierott.”

Shamrock Home Loans, the #2 ranked mortgage company to work for in the country, thrives on its messaging. Shamrock’s WHY: “Because everyone deserves to live in a home they love.” Shamrock’s HOW: “Keeping clients excited from CONTRACT to KEYS.” Shamrock’s WHAT: Building the next generation of mortgage leaders.” Shamrock’s WHO: 1) Heart for people, 2) Intellectually curious, 3) Resourceful 4) Positive influence, 5) Consistent daily demeanor. To learn more, check out this 1-minute video and give Dean a call (401-228-9589).

Congratulations to the 150+ Loan Officers and Producing Managers at Supreme Lending who were named 2022 Scotsman Guide Top Originators. Their inclusion on this publication’s reputed industrywide list is based on their 2021 production, either for Top Dollar Volume and/or Most Loans Closed. For the majority of Supreme’s top producers, purchase business drove their success last year, which reflects the Dallas-based independent lender’s long-term growth strategy. In 2021 Supreme funded $16 billion in total volume, with purchase business accounting for 61 percent of total loans closed, beating the industry’s overall purchase business average of 43 percent for 2020. Focusing on purchase business provides a solid, sustainable foundation for Supreme and its 1,100 Loan Officers to grow their business and prepare for the future. If you’re interested in working with a lender that makes purchase business THE top priority, contact Ryan Baxter, Director of Recruiting, or follow Supreme Lending on LinkedIn.

Arc Home is pleased to announce the addition of several key leaders. Russ Wright, RVP-Pacific Northwest, Joe Kowalewski, RVP- Southeast and Nick Glasse, VP of National Inside Sales each bring significant experience and success to Arc’s growing business. Russ Wright stated, “With such rapid change and uncertainty, Arc Home provides stability and the most diverse product suite, and that is going to be the key to success as the market continues to evolve.” As a top 10 Non-QM and Non-Agency lender, Arc Home is continuing to seek seasoned sales professionals to service accounts in key markets. Account Executives at Arc Home get the benefit of selling products to both wholesale and correspondent clients. If you are looking for a change speak directly with our EVP, Chief Production Officer, Katherine Gardner today, 303-589-2227 or apply at https://www.archomellc.com/page/careers.

Lender & broker products and services; warehouse wanted

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Real estate agents are more than just friendly faces on park benches. They’re a vital source of leads in a purchase market. So, what are you doing to woo them? Whether you’re swinging by offices, meeting for coffee, or attending regional association meetings, you’ll need an engaging value-add to effectively win referrals. HomeBinder is the perfect conversation starter! The comprehensive home management platform not only keeps homeowners connected with their loan officer, but can feature real estate agents’ branding as well. Want to ‘wow’ real estate agents and earn more business? Schedule a HomeBinder demo to see how you and your real estate referral partners can create and share clients for life.

“We are private lender offering fix and flip, bridge, and rental loans for real estate investors. We are looking for a bank to provide us a financing line for short term loan aggregation.” Notes of interest can be sent to me for forwarding.

RiskExec, powered by Asurity, would like to invite you to join our all-star Compliance professionals in Charlotte, North Carolina from May 2-4 for an exciting 2-day Fair Lending Forum. Admission for lenders and government agency personnel is free. Whether you want to go deep or just learn more about topics like HMDA, CRA, Redlining, Fair Lending, Fair Servicing, and more, this will be the place! Gain expertise on how to enhance your Compliance Management System (CMS). Hear from industry and government leaders on what’s coming next for lending and compliance. Be the first to learn about the latest trends to better prepare for tomorrow. All while earning CRCM and CERP Continuing Education (CE) credits. Best of all, we’ve also carved out time for cocktails, conversation, and a Kannapolis Cannon Ballers Game, an affiliate of the Chicago White Sox. Registration deadline is April 18th and the discount room rate expires on April 11th, so secure your spot today!”

Faced with higher prices for rent, food, and gas and increasing home prices and mortgage rates, many first-time homebuyers are struggling to save for a down payment and pay off their credit card debt. Mortgage originators can pair homebuyer education workshops with their private-labeled FinLocker app to keep discouraged homebuyers motivated while helping credit-challenged consumers get in the game. Download FinLocker’s guide Build Your Pipeline Through Homebuyer Education for ideas on creating, promoting, and presenting online and in-person first-time homebuyer workshops to build and nurture your homebuyer pipeline. Watch an online demo to see how FinLocker has purposefully integrated tools to accelerate the process for first-time homebuyers to get mortgage ready. If you’re heading to the MBA’s Technology Solutions Conference & Expo in Las Vegas on April 11-14, visit booth 325 to receive a personal FinLocker demo.

loanDepot Wholesale is pleased to announce the expansion of its Jumbo Advantage product suite with a Non-QM offering. Jumbo Advantage EXPRESS FLEX offers loan amounts from $150,000 to $2,000,000 with full and alternative documentation options that include, expanded DTIs, 1-year tax return, asset utilization, and 12- or 24-month bank statement features. Refer to the Jumbo Advantage EXPRESS FLEX matrix for details and contact your Account Executive today!

Connexions has integrated with CAPTURE Data services, a mobile app that simplifies the work of property data collectors (PDCs). CAPTURE streamlines the gathering of data, images, and interior floor plans, supporting the new GSE initiatives for hybrid valuation products. Appraisal orders for the new 1004 Desktop can be assigned to an appraiser, and once accepted, the same order can then be assigned to a PDC. The PDC goes onsite and walks through the property using the CAPTURE app to gather data and images as required. With their smartphone’s video camera, the PDC automatically creates a detailed interior floor sketch. Once complete, the data and images are sent back to the appraiser, who then completes their report for the client. It’s simple, secure, and reliable. Learn more about how Connexions integrations can help your business by scheduling a demo at GetConnexions.com/demo.

Stop paying for an additional eSign platform through a third party. Brokers using Black Knight’s LoanCatcherSM broker loan origination system (LOS) can now access innovative eSign capabilities directly from the platform at no additional cost. It’s a smart, simple way to increase your loan processing efficiency and speed. Documents generated are automatically returned to the LOS, and you’ll receive a notification when the signed documents are in the LOS. This new feature is easy to use: just go to Doc Generator and click on eSign. This easy-to-use, cloud-based LOS also includes a digital point of sale, pre-built workflows, and seamless integrations with the industry-leading SurefireSM CRM and LoansifterSM PPE. Offering eSign capabilities is just one more way you can help boost your business and set yourself apart from competitors as the broker of choice. Find out more details here.

VA, FHA, and Ginnie news

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The purpose of this Mortgagee Letter (ML 2022-06) is to update the policy for Property Preservation and Protection (P&P) costs by establishing that HUD will only reimburse Mortgagees for reasonable payments for P&P costs incurred in connection with Single Family claims for FHA-insured Single Family Mortgages. This ML must be implemented for all FHA-insured Mortgages where the deadline to complete the first legal action, as defined in Appendix 6.0 of HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook (Handbook 4000.1), is on or after March 31, 2022. All updates will be incorporated into a forthcoming update of Handbook 4000.1.

On April 1, 2022, HUD published a proposed rule in the Federal Register, Increased Forty-Year Term for Loan Modifications (Docket No. FR-6263-P-01) for public comment. The rule proposes to increase the maximum modification loan term limit from 360 to 480 months and expands FHA’s current loan modification policy. When finalized, FHA’s proposal would allow mortgagees to provide a 40-year loan modification option to borrowers who may not otherwise qualify for payment reduction or other loss mitigation options. The proposal also offers an option to borrowers that are facing or experiencing a financial hardship. This change would also align FHA with modifications available to borrowers with mortgages backed by Fannie Mae, Freddie Mac, and USDA which all currently provide a 40-year loan modification option to borrowers.

Interested stakeholders are encouraged to review and provide comments on the proposed rule using the methods outlined in the Federal Register no later than 60 days after the date of publication in the Federal Register.

FHA Mortgagee Letter (ML) 2022-06, updates the policy for property preservation and protection (P&P) costs by establishing a standard for the Department of Housing and Urban Development’s (HUD) reimbursement of reasonable P&P costs incurred in connection with Claims without Conveyance of Title (CWCOT) and Conveyance claims.

Mountain West Financial® is extending the .25 bps price improvement on FHA, VA, and USDA loans through the month of April. Details can be found in MWF Wholesale Bulletin 22W-031

A recap of the Mountain West Financial® Bulletins released last month are available in MWF Wholesale Bulletin 22W-030 Monthly Bulletin Digest – March 2022. In addition, complete bulletins are located on the MWF Wholesale page under News & Events or by clicking on the MWF Wholesale Bulletin link.

Capital markets

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There’s no doubt about it: mortgage rates are on the rise. Global inflation worries and rate-hike concerns have aided recent selling interest, and comments from Fed Governor Brainard yesterday didn’t help. She said in a speech that she expects the Fed’s $9 trillion balance sheet to shrink considerably more rapidly than in the previous recovery, starting as early as the May meeting. That view triggered a small taper tantrum that sent Treasury yields higher across the curve and raised the market’s angst level ahead of today’s release of the FOMC Minutes for the March meeting. She called reducing inflation pressures “paramount,” but didn’t signal where she stands on a possible 50-basis point increase in May. This comes as she awaits Senate confirmation to become the central bank’s vice chair.

Today’s economic calendar includes the week’s potential highlight consisting of the minutes from the March 15/16 FOMC meeting, where the Fed hiked rates 25-basis points with promises of more hikes to come. Yesterday’s comments from Fed Governor Brainard may have removed a bit of the potential downside surprise in regard to balance sheet reduction, which may be announced as soon as the next FOMC meeting in May. Ahead of the Fed, the MBS market digested the latest mortgage applications from MBA, which decreased 6.3 percent from one week earlier, including refinance applications registering 62 percent lower than the same week one year ago. Beside the FOMC minutes, Philadelphia Fed’s Harker will speak on the economic outlook this morning. The Desk will purchase up to $1.15 billion MBS over two operations, one in 15-year 2 percent through 3 percent and one in GNII 3 percent through 4 percent. March agency prepayments will also be released after the close with Class A net out on Friday. We begin the day with Agency MBS prices are worse .375-.5 and the 10-year yielding 2.62 after closing yesterday at 2.55 percent.

Felt uncomfortable driving into the cemetery. The GPS blurted out, “You have reached your final destination.”

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.)