“Rob, I am a new loan officer in an area with lots of high balance loans, and my company caps me out at $7,500 of commissions. But real estate agents don’t have a cap on what they earn, do they?” Hah! Ask the LO in the cubicle nearby for the answer to that one. In fact, many residential lending industry observers believe that, to stay competitive, lenders will be reducing retail LO pay: “If our margins are squeezed, the LO should participate.” (See blurb on Better Mortgage below.) Regarding employment, one way that law schools boost their graduate employment rate is to hire their own grads in low-paying jobs. Clever.
Jobs, personnel, and products
“Royal Pacific Funding is proud to welcome Jeff Baker to its team of top producing Account Executives in Orange County California. Jeff is looking forward to providing excellent service to his brokers and expanding his footprint in the industry with Royal Pacific. We’re very fortunate to have a sales person of Jeff’s caliber join our ranks and we’re looking to hire more throughout the West Coast. If you’re looking for an opportunity to increase your market share with a fast-growing wholesaler, please email [email protected].”
Michigan Mutual, Inc. is fully staffed and operational at its newest wholesale fulfillment center in Anaheim, CA! Joining the Michigan Mutual team along with Regional Sales Manager, Andrew Ryan, are Account Executives: Christine Bahnsen-Smith, Charmaine Bucklin, Lori Campos, Steve Davidson, Rob Esquerre, Howard Hoyt, Dale Lieber, Derek Purcell and Gabe Munoz.
“We should have done this two years ago!” said Account Executive, Christine Bahnsen-Smith. Look for upcoming announcements for an open house in September where Broker Partners will be invited to check out the new location and meet the staff! Michigan Mutual is searching for established Wholesale Account Executives nationwide! If you are a successful mortgage professional seeking an opportunity to join a thriving company with superior technology and high touch broker support, please contact National Director of Wholesale Lending, Greg Campbell (810.334.1643) or HR Specialist, Karley Warwick (248.286.9490). Michigan Mutual is an agency direct/seller/servicer/issuer established in 1992 and based in Port Huron, Michigan.
Norcom Mortgage is excited to announce the hiring of Cory Alexander as Florida Regional Manager to lead Norcom’s aggressive expansion in the Sunshine State. With more than 15 years of experience, Alexander takes pride in his ability to bring top LO talent to the managers in his area. Norcom is a TOP WORKPLACE winner for 6 years running, and a sales-driven Direct Fannie, Freddie, Ginnie Lender closing 85% of all loans in less than 30 days with a niche product mix that includes 1X Close Construction, Non-Warrantable Condos, and Florida Bond. President Phil Defronzo says “Cory brings a wealth of knowledge and passion to our leadership team, but even more importantly he embodies our core values of communication and trust and understands the partnership mentality it takes to achieve long term success” If you are an Area Manager, Branch Manager, or Loan Originator that is interested in learning more about Norcom’s value and opportunities please shoot Cory an email.
“Southern California-based LoanStream Mortgage is expanding again! Seeking highly talented and experienced Account Executives to join our growing team. Managers with teams are also encouraged to apply. We are currently focused on seeking candidates residing in San Diego, San Francisco Bay Area, Los Angeles Area, Sacramento, Washington/Oregon, Arizona/New Mexico and Nevada although AE’s across the country are encouraged to apply. On the Retail side, we are currently seeking existing Branch locations looking to earn more with our unique approach and product offering. Our company has been successfully originating loans for over 30 years and are expanding throughout the country. We have a very broad and unique product line, that includes Conventional Conforming, Jumbo, Government and Proprietary Non-QM products including No Doc, Bank Statements, Credit Event Jumbo and other Alt A niches. Our professional underwriting and operations team delivers excellent support to drive confidence and overall customer satisfaction. If you are interested in joining a growing team with an entrepreneurial mindset, then we would be a great fit for you.” Please send confidential resumes to [email protected].
Planet Home Lending’s new wholesale non-QM, alternative documentation loans let self-employed borrowers qualify using personal and business bank statements backed by P&L documentation. Aimed at small business owners and sole proprietors, Planet expects the program will attract high-income borrowers as max loan amounts go to $2 million for primary and $1.5 million for second homes and investment properties. For more details on the program, contact Planet Home Lending Regional Sales Manager Greg Schatz at (914) 715-8998.
Lakeview Correspondent is hiring a Business Development Director for its Eastern Great Lakes Region (MI, IN, OH, KY, WV & PA). Experienced correspondent sales professionals are invited to apply for this rare opportunity to join our dynamic sales team. Lakeview Correspondent’s wide range of products include competitive agency and government bulk mandatory and delegated BE, as well as a suite of non-agency portfolio products. Partner with a Top 10 Servicer with an expansive product set to increase your value to your customers by applying today. Contact Kiely Hall-LaValley to begin a confidential conversation about this opportunity.
Technology and eMortgage news
Congrats to Gabe Minton who Guild Mortgage has selected as its first EVP of information technology. Minton will lead Guild’s technology information strategy, helping position the company for continued growth. Guild launched MyMortgage, its digital mortgage portal, earlier this year. Guild also maintains its own proprietary, integrated technology platform which includes everything from data management to automated underwriting programs. (On an important side note, Guild saw purchase loan volume jump almost 50 percent from the first quarter to the second quarter of 2017, resulting in record overall loan volume of $7.3 billion for the first half of 2017, up 7.1 percent from $6.8 billion in the same period of 2016.)
United Wholesale Mortgage announced yesterday that it is rolling out the nation’s first e-closing, allowing buyers to complete the full mortgage transaction digitally. The subsidiary of United Shore is introducing the new service following the March launch of Blink, “a digital loan portal allowing consumers and brokers to use mobile devices to start the loan application process, pull their credit score, verify assets, e-sign documents and track loan status. Notarizing documents was the only action preventing digital closing, as person-to-person contact was required, according to a company news release. Now, buyers can use the mobile Face Time app to coordinate with a notary remotely.” Mat Ishbia, president and CEO of United Shore, opined, “Independent mortgage brokers will have an even stronger competitive advantage over retail competitors and large banks.”
A new all-digital mortgage company, New York-based Better Mortgage, says it is now licensed to lend to homebuyers in Florida. The company says its employees and its software find the best loan without commission fees. It also promises 24-hour delivery time for verified pre-approval letters for qualified borrowers; a guarantee that borrowers are getting the best price; 100 percent digital experience, from pre-approval to a funded loan; and 24-hour access. The company, which launched in 2014, claims its technology gets your loan closed 10 days faster than the industry average. Better says it is backed by Kleiner Perkins, Goldman Sachs and Pine Brook Partners and was developed by engineers from Google and Spotify.
NYCB Mortgage Banking is reminding table funding clients to request and document the Borrower(s) Ethnicity, Race and Gender information. This information must be obtained at the time of application and accurately recorded in the Declaration Section of View/Edit 1003 in Gemstone prior to the loan being submitted to any Automated Underwriting (AU) system via Gemstone. It is not acceptable to use generic/invalid Customer identification information in the Declarations page of Gemstone to process loans.
LoanLogics has introduced HMDA Audit, a new module for the company’s LoanHD® Loan Quality Management platform that helps lenders comply with current and new reporting requirements under the Home Mortgage Disclosure Act (HMDA) taking effect January 2018. HMDA Audit offers comprehensive functionality lenders can use to validate and update their HMDA data, including advanced geocoding tools (RATA and/or FFIEC). Another handy tool is the HMDA Audit Screen which displays the results of automated tests and tests that require manual intervention. Users can validate the data in the LOS, and calculate rate spreads, rounded loan amounts and geocodes.
Comergence, an Optimal Blue company, announced the launch of its newest compliance solution, Social Media Compliance. “Powered by sophisticated regulatory intelligence capabilities and embedded with the specific policies and procedures of a licensed mortgage originator, the unique and leading-edge service addresses the growing need and seemingly insurmountable task of monitoring social and digital media communications within a regulatory framework. The Social Media Compliance system can evaluate social media activity across all loan officers and all venues in real time via automated scheduling. The platform also identifies potential violations, highlights usage trends, and provides 360-degree audit reports for a deeper violation review so lenders can communicate and remediate internally and externally – all within a single, turnkey compliance tool.”
To understand rates, lenders must keep an eye on general economic trends. And the economic data last this week are consistent with a moderate rebound in US GDP growth for the second quarter. Payroll employment increased by 222,000 net jobs for the month while the civilian labor force showed an even stronger growth, increasing by 361,000 workers for the month. In turn, the unemployment rate was brought up to 4.4 percent. This temporary increase is not a sign of a loosened labor market and it is expected to tighten up in the second half of the year.
The ISM Non-Manufacturing Index increased from 56.9 in May to 57.4 in June and all 10 sub-indexes were above 50, showing that the conditions are improving. As well, the ISM Manufacturing Index also improved in June, reaching 57.8. These two indexes cover a significant portion of the U.S. economy. The U.S. international trade gap narrowed by $1.1 billion, reaching -$46.5 billion. Exports increased by $0.9 billion while imports decreased by $0.2 billion.
Auto sales, not something I often mention here but are an additional gauge of both the strength of consumer demand and of manufacturing, for June decreased to a 16.5-million-unit rate which is the lowest sales rate since October 2014. This data was not terrible, but it parallels the growing idea that we are past peak auto for this business cycle. On the other hand, construction spending was quite steady in May. There were declines in both private residential and private non-residential projects were offset by gains in public projects. Oil prices climbed in the latter part of June, but fell back in early July to hit $45 per barrel.
According to the fed funds futures market, there is only a slim probability of a rate hike on September 20 on in early November. The implied probability of a December 13 rate hike is very high – above 50%. jumps to about 59 percent.
Yesterday rates were influenced (they didn’t move much) due to increased Trump / North Korea tensions: “fire and fury.” But we’re still well within the range we’ve been in all summer. The 10-year note improved nearly .375 and closed yielding 2.24% while 5-year notes and agency MBS prices rallied .125-.250, depending on maturity, coupon, and security type.
This morning we’re still being influenced by the North Korea related flight to quality. We’ve also had weekly jobless claims (+3k to 244k) and a read on inflation at the producer level. The PPI, expected +.2%, was -.1%, as was the core, weak. Coming up is a $15 billion sale of 30-year Treasury bonds. After these couple of numbers, and Korea nervousness, we find rates a shade better versus last night: the 10-year is yielding 2.23% and MBS prices are better by a few ticks.
Why Teachers Drink – part 2 of 2
Q. How are the main 20 parts of the body categorized (e.g., the abdomen)?
A. The body is consisted into 3 parts – the brainium, the borax and the abdominal cavity. The brainium contains the brain, the borax contains the heart and lungs and the abdominal cavity contains the five bowels: A, E, I, O, U
Q. What is the fibula?
A. A small lie
Q. What does “varicose” mean?
Q. What is the most common form of birth control?
A. Most people prevent contraception by wearing a condominium.
Q. Give the meaning of the term “Caesarean section.”
A. The caesarean section is a district in Rome
Q. What is a seizure?
A. A Roman Emperor.
Q. What is a terminal illness?
A. When you are sick at the airport.
Q. What does the word “benign” mean?
A. Benign is what you will be after you be eight
Q. What is a turbine?
A. Something an Arab or Sheik wears on his head.
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, “Does Everyone Want a Job?” 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 over 300 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 2017 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.)