Daily Mortgage News & Commentary

Aug. 16: Sec. mktg, PPE, sales performance, bank statement, non-QM products; upcoming training, webinars, & events, coast to coast

“Common sense is not a gift. It’s a punishment because you have to deal with everyone who doesn’t have it.” This is a tough market, and common sense usually isn’t enough to get through it. Lenders have expressed the need for advice on how to stop the bleeding by employing effective revenue tactics and optimizing efficiencies in their back-office operations. Identifying key areas in which to focus via informed benchmark data is a critical component to designing and deploying impactful tactics. STRATMOR can help. Contact CEO Lisa Springer to learn more. Did someone say revenue? Bicycles, which saw an unprecedented surge in demand over the course of the pandemic, are seeing sales come back down to earth. In the first six months of the year, revenue at bicycle shops in the U.S. was down 7 percent compared to the same six months of 2021. That’s a slight miss, but the business overall is still up substantially off the pre-pandemic levels. (Available here, this week’s podcast is sponsored by Agile, the mortgage industry’s MBS fintech. Bringing the mortgage capital markets into a new digital era. From lenders to dealers, Agile is the new way to quote MBS. Today’s podcast has a discussion between Robbie and myself on what lenders are focused on these days.)

Broker and lender programs, services, & software

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Northpointe Bank Correspondent Lending provides leading-edge financing solutions for self-employed borrowers and business LLCs to maximize profitability and help grow your business. Northpointe Bank’s 12- or 24-month bank statement options are designed to make home financing simpler for self-employed borrowers.  Available in the Prime Non-Agency and Expanded Access programs, the program offers loan amounts up to $3,000,000, loan-to-value ratios up to 90%, and uses either personal or business bank statements to qualify income. Additionally, Northpointe offers financing for investment properties held in LLCs in three of its Non-QM programs; Investor Cash FlowExpanded Access, and Prime Non-Agency. Just another way Northpointe offers affordable solutions for more borrowers. For more details, email.

Want to know a simple, straightforward way to reduce your cost per loan file? Many lenders make the mistake of thinking high-impact initiatives that set them up for success require a heavy investment of time and money, but that’s simply not the case. Join this upcoming webinar on HousingWire to learn the 6 ways appraisal automation can reduce your cost per loan. Register now for tomorrow’s event and don’t let the competition get the edge on you.

What steps are you taking to promote affordable housing in underserved markets? The Optimal Blue PPE, the most widely used product, pricing and eligibility engine in the mortgage industry, now includes a capability to automate the process of collecting census tract data so lenders can deliver applicable pricing premiums at the time of rate quote. This expanded functionality streamlines the price-quoting process so lenders can recognize deeper efficiency while managing the requirements of the Community Reinvestment Act. Learn more about this new capability of the Optimal Blue PPE in Black Knight’s press release.

Exclusive Clear to Close podcast interview: Former Zillow employee on how to build a competitive borrower experience. Boasting 200 million monthly users, real estate tech giant Zillow is only becoming stronger competition as it expands its presence in the mortgage lending space. In the face of this trend, local lenders have a choice: They can ignore the growing threat or they can bolster their competitive advantages and learn from Zillow’s actions. In this episode, we sit down with Bryan Mecsey, Maxwell’s VP of Sales and former Zillow executive, to chat about how tech giants have succeeded, where they’ve fallen short, and how local lenders can leverage that insight to create a competitive borrower experience (no massive tech or marketing budget required). Tune in for forward-thinking insights that will help you build a moat around your lending business despite rising competition. Listen to the Clear to Close podcast’s new episode on Apple PodcastsSpotifyGoogle Podcasts, or your browser.

In today’s market more and more originators are utilizing Angel Oak’s non-QM flexible loan products to win more business. Angel Oak Mortgage Solutions has an easy-to-follow guide for originators that can help maximize sales volume! The steps include Staying top of mind in social media, the importance of consistent networking, finding your niche within non-QM programs, choosing the right non-QM lender, and establishing a personal brand. Download the asset piece for more detailed information on each step.

As highlighted in Saturday’s newsletterClick n’ Close continues to fulfill its passion for serving the needs of both TPOs and low- to moderate-income homebuyers by providing innovative loan products to help aspiring homeowners combat the challenges of today’s market. For example, its SmartBuy program, which is available through its correspondent and wholesale channels, offers a below-market fixed rate FHA first mortgage and a second mortgage repayable up to 30 years, representing the first mortgage financing product that delivers both down payment and closing cost assistance to eligible borrowers. The SmartBuy is in addition to its popular Rosebud DPA with a forgivable second mortgage. Additionally, Click n’ Close offers eNotes via its third-party channel for eligible non-delegated correspondents to help them operate more efficiently and competitively as they transition from mortgage broker to banker. To learn more, contact Christopher Hartman (wholesale) or Julas Hollie (correspondent).

“With lower volumes and tighter margins, business intelligence is more important than ever. You need to know how you’re performing in real time as market conditions change on a dime. With 100% of fully implemented customers renewing year over year, Richey May’s RM Analyze is business intelligence designed by and for mortgage industry experts. Our platform consolidates data from every department and every piece of software you use, so you can get answers quickly. It provides just the right reporting from the C-suite to the front line, plus the functionality to build visually engaging reports on key indicators. Bonus: Our analysts have deep mortgage experience, so you don’t need to train us on your business. Get the cross-functional data, user-friendly dashboards, and real-time analysis you need. Contact us today for a walk-through and custom implementation plan.”

While you’re toasting to celebrate National Rum Day, keep it going for Finance of America Mortgage TPO and its new Two-X Flex Invest DSCR loan! This fantastic addition to the Non-QM products at FAM TPO is an alternative for experienced real estate investors that can qualify on the subject property’s cash flow potential. With FICO scores down to 640 and loan amounts up to $3M, this product is definitely worthy of raising your glass! If you’d like to know more about the new DSCR loan, click here to sign up for a live broker training on August 17th! Contact us today to learn more about the variety of products offered by Finance of America Mortgage TPO, and to become an approved partner!

Leaders, you can elevate the productivity of your entire sales team with XINNIX, the nation’s premier provider of performance development for the mortgage industry. Year-to-date, participants in the EDGE™ Program increased their referral sources by 107.68%, referral source meetings by 286.12%, and applications by 53.6%. What would numbers like these mean for your business? Whether your team has been in the industry two years or 20, XINNIX has the Performance Programs to elevate their business in ANY market. EDGETM is perfect for those who are performing well but want to take their business to the next level. Top producers looking to grow their pipelines even more should check out  ELITE™. For experienced Loan Officer with a desire to create an explosive pipeline,  IGNITE™ is the perfect fit.  Schedule a call today to find out which of their Experienced Mortgage Sales Performance Programs is the right fit for your team.

Events, training, and webinars

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Today at 2PM ET/11AM PT we have Mortgage Pros 411 with Audrey Boissonou, Kevin Casey, and Partners Credit and Verification’s Tracey King discussing the changing borrower landscape, the Equifax situation, and other credit trends.

What is the ROI for DEI? Join CMBA’s next Diversity, Equity & Inclusion Committee on Tuesday, August 16, 11AM PT. Joined by members of the Diversity Crew team, this is a webinar you do not want to miss.

Join Mountain West Financial Wholesale for GSFA Platinum DPA Training on Thursday, August 18, 1-2PM PT presented by GSFA’s Danh Nguyen. Gain the knowledge to help more borrowers with the GSFA Platinum repayable and Platinum’s new Assist To Own programs. The more you know about homebuyer assistance programs, the easier it is to match borrowers with the right products to fit their needs.

Helping to provide insight and actionable information of the benefits eNotes provides, DocMagic is sponsoring a one-hour live eNotes webinar, Thursday, August 18th 2PM ET/11AM PT. Industry experts will discuss the benefits and myths around eNotes to advance your company’s digital mortgage origination strategy.

The Maximum Acceleration Conference is one day, Thursday, August 18. You’ll receive inside advice from the nation’s most accomplished mortgage pros. Industry legends David Luna, Megan Marsh, Shashank Shekhar, and Ken Travis are joined by NYT Bestselling strategist Nir Bashan and Navy SEAL Don Mann. Win The Race To Top Producer at the Maximum Acceleration Conference at Planet Hollywood in Las Vegas. Use code MAX200 and save $200. Plus, an added bonus, registering for the Maximum Acceleration Conference gives you free access to the entire Originator Connect Conference, happening August 19 – 20 at Planet Hollywood.

Join MBA of Metropolitan Washington for a lunch and learn webinar on Wednesday, September 7 for a discussion on the outlook for our industry and how to approach selling in one of the most dynamic times in decades for the sector. Presented by Dave Rotell, MBAMW President and Area Manager, Vice President Area Manager, Vice President, Prosperity Home Mortgage, LLC, topics will include the economy, housing, headwinds/challenges, and strategies as we navigate this unique cycle.

Kickoff the Fall Season with the Puget Sound Mortgage Lender Association on September 8th at Oakbrook Country Club. “Ninja Selling,” Sales Coach and motivator Michael Fanning will be speaking at the Fall PSMLA Dinner. The biggest investment you should make in life is in yourself and what a way to start September investing in YOU!

Next month we have the New England Mortgage Bankers Conference in Newport, RI (NEMBC 2022 -September | Massachusetts Mortgage Bankers Association (massmba.com). September 21-22 in Newport Rhode Island, see some great speakers like Dave Stevens and Matt Graham (MBSLive.net). Dave Stevens is being inducted into the NEMBC Hall of Fame along with 10 other inductees. On Tuesday, the night before the official start of the conference, attendees are packaging 15,000 meals for Rise Against Hunger. There is a servicing track, an MLO track, and an operations track on Wednesday as well as live streaming the Fed meeting with Matt Graham doing a real-time commentary and then talking about interest rates afterwards.

The MBAC 66th Annual Convention, October 2nd – 5th, an opportunity for mortgage executives to bring your loan originators, servicers, and associates who serve both states. This year live CE classes are available on both Sunday and Monday, and thanks to Renasant Mortgage Lending & Enact MI, it’s free. Discounts only apply if you take CE and attend the convention.

MBAC CE Registration Page must supply NMLS # and select CE session, Promo Code will follow.

Don’t forget the MBA’s Annual Convention in Nashville, TN in October (Annual Convention and Expo | MBA).

Registration is open for TMBA’s 5th Annual Mortgage Symposium, November 7-8. The Early Bird registration is currently $195.00 for members and $320.00 for non-members. Take advantage of TMBA’s block of rooms at the Renaissance Dallas at Plano Legacy West Hotel by reserving your room now!

Capital markets

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This trading week opened with a gauge of New York state manufacturing showing sharp declines in orders and shipments. Couple that with worse-than-expected data in China adding to fears of more headwinds for the world economy and we saw a rally in the bond markets. Elsewhere, homebuilder confidence fell for the 8th straight month, according to the NAHB Housing Market Index. Sentiment is negative for the first time in a while. “Ongoing growth in construction costs and high mortgage rates continue to weaken market sentiment for single-family home builders,” said NAHB Chairman Jerry Konter. “In a troubling sign that consumers are now sitting on the sidelines due to higher housing costs, the August buyer traffic number in our builder survey was the lowest level since April 2014 with the exception of the spring of 2020 when the pandemic first hit.”

The Federal Open Market Committee has stated that it needs to see a sustained easing of inflation before shifting its current policy stance. However, the market pulled back its expectations for a 75-basis points rate hike following last week’s inflation data. Upwards price pressure remains in housing and labor costs for the moment. Worker productivity has declined significantly during the previous two quarters at the same time costs have risen making it challenging for businesses to set competitive prices. Despite the market’s positive reaction to July’s inflation data, Fed speakers have commented on the need for the labor market to cool before they will consider inflation under control.

July housing starts and building permits kicked off today’s calendar (-9.6 and -1.3 percent, respectively, both suggesting the housing biz is pulling back). And MBA’s monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 7-basis points to 0.74 percent of servicers’ portfolio volume in the prior month as of July 31. According to MBA’s estimate, 370k homeowners are in forbearance plans. Later this morning brings Redbook same store sales and industrial production and capacity utilization for July. There are no Fed MBS purchase operations on the schedule today. We begin the day with Agency MBS prices worse .125 the 10-year yielding 2.83 after closing yesterday at 2.79 percent.

There must be an analogy between this and the current lender environment. Let’s go to the way back machine for this TV clip.

“Well you see, Norm, it’s like this…A herd of buffalo can only move as fast as the slowest buffalo. And when the herd is hunted, it is the slowest and weakest ones at the back that are killed first. This natural selection is good for the herd as a whole, because the general speed and health of the whole group keeps improving by the regular killing of the weakest members. In much the same way, the human brain can only operate as fast as the slowest brain cells. Now, as we know, excessive intake of alcohol kills brain cells. But naturally, it attacks the slowest and weakest brain cells first. In this way, regular consumption of beer eliminates the weaker brain cells, making the brain a faster and more efficient machine. And that, Norm, is why you always feel smarter after a few beers.”

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 titled, “Capital Markets: Protecting Margins and Assets.” 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.)