Fires in California, floods in Tennessee, hurricanes in New York, COVID hospitalizations seemingly everywhere written up by the press. The “fun” never ends. Here in Orange County, at the California MBA’s Western Secondary, the talk in the hallways is focused not so much on huge shifts, because it looks like Freddie, Fannie, FHA, and other programs will be with us for a very long time, but on fine-tuning operations to drive down the cost and time in processing a loan. Sure enough, STRATMOR’s Operations Workshops indicate appraisals were the biggest pain point. Data shows that 60 days is the new “must hit” turn time on refinances, whereas last quarter it was 90 days. STRATMOR’s anecdotal findings indicate that either borrower expectations are shifting due to changing economic/pandemic-related factors, or the collective ability of lenders to close faster is reshaping borrower expectations. (Today’s audio version of the commentary is available here and this week’s is sponsored by ActiveComply, a social media monitoring and website archival platform built by the mortgage industry, for the mortgage industry.)
Jobs, hiring, & transitions
When Shane Ensor joined the Caliber Home Loans team as a loan consultant back in April of this year, he was excited and confident that he’d made the right career decision. He didn’t fully realize how good his decision was, however, until he began the Caliber onboarding process. “Caliber uses this unique program called Power Up,” explained Shane. “It’s this comprehensive marriage of everything you need to know to do your job, paired with the tools to help you be successful. It helped me be prepared from the very first customer I served.” Watch this video as Shane Ensor explains more about Power Up and his Caliber onboarding experience. Join the team that puts your onboarding and continued training front and center. Email Jonathan Stanley for Operations positions or James Hecht for Sales positions.
PacRes Mortgage, formerly Pacific Residential Mortgage, is pleased to announce former Benchmark and Finance of America industry trailblazer John Gillis has joined the PAC. As Division Leader, John will guide and direct the development of an entirely new division of PacRes focused on providing entrepreneurial growth opportunities to current business owners who desire the benefits of joining a national mortgage bank with decades of experience and success at closing loans with 5 Star Customer Experiences, without the “corporate bureaucracy”. If you want to find out what is so unique about a national boutique company that has the resources of a large company with a local company, please contact Eric Wiley, CXO at 971-645-7087.
NP, Inc. Launches New Division/Announces New Senior Roles. NP, Inc. recently announced the formation of its Non-Delegated Correspondent Division, headed by Vicki Bannon, VP, TPO. Vicki joins the company from Finance of America, where she managed the Wholesale and Non-Delegated Underwriting Divisions. She brings talent in all facets of senior management and operations. The company also welcomed David Skinner in the role of Product Support Manager, TPO. David previously held positions at Bank of America and is highly skilled in originations/fulfillment, operations, and underwriting. David will be instrumental in streamlining the division’s loan processes by verifying and processing loans more efficiently through the pipeline. Plans to hire new underwriters and processors are underway to meet the growing needs of the TPO Division. Contact Vicki or David if you’re interested in joining the team or want to learn more about our growing TPO division! You can also visit us here.
The FHA is hiring. It has an opening for a Single-Family Housing Specialist (QAD) in Philadelphia (identifying and formulating plans or policies, recommending amendments to statutes, regulations and handbooks, participation in establishing HUD policy and procedure formulation); announcement # 21-HUD-1543-P. A Business Analyst, also in Philadelphia: analyzing market conditions and trends, development of data and reports, analysis of current and proposed laws and regulations via announcement 21-HUD-1881-P. And two vacancies in Denver for FHA underwriting responsible for the oversight and review of both Direct Endorsement underwriting and Contractor performed underwriting. View announcement 21-HUD-1706-P for details.
Knowledge Coop has hired Brian Paine as Director of Technology and will be maintaining a stable working environment for all of Knowledge Coop’s technical operations, including its flagship virtual workspace for centralizing compliance training, The Coop, spearheading future tech enhancements and improvements, and ensuring security processes are up-to-date and monitored.
Kim “Aloha” Norton has joined the XINNIX team as its VP of Learning Enablement and will lead the charge in expanding XINNIX’s offerings of Training, Accountability and Coaching by developing new XINNIX programs.
Lender and broker products & services
September 2 is a date to remember, not only because it is Keanu Reeves’ birthday, but because SimpleNexus will be demo-ing its renowned homeownership platform at HousingWire Demo Day, which starts at 11 am CT. Ever wondered how SimpleNexus became the mobile platform of choice for more than 300 lenders, 4.5 million borrowers and 141,000 real estate professionals? Now’s your chance to see the platform’s single sign-on borrower experience and on-the-go lender productivity tools in action. Register for the Thursday, September 2 Demo Day session now.
“Volly integrates it’s Point-of-Sale and Customer Relationship Management (CRM) products with ICE Mortgage Technology via the Encompass APIs to bring greater traction to better support TPO lending channels. Leveraging the Encompass APIs, Volly has developed a secure next-generation integration for all stages of the loan life cycle: lead/prospect, loan application, and portfolio retention for our retail channels. Through this integration we can help to improve the workflow and improve efficiencies for the wholesale and broker community. To lean more on our Volly solutions and our partnership with ICE Mortgage Technology, please visit our Marketplace by ICE Mortgage Technology listing.”
Fun fact: the Multiple Listing Service (MLS) dates back to the 1880’s. Fast forward 140 years, and according to the National Association of Realtors®, 97% of homebuyers use the internet in their search for a home, with 43% starting their search online. Capital Markets Cooperative’s (CMC) suite of preferred technology partners can help you reach these online consumers. Home Captain provides lenders with a white-labeled website that attracts leads at the beginning of their home buying or selling journey. Easy Mortgage Apps makes it easy for borrowers to complete an application on their phone. Easy Mortgage Apps creates lender-branded mobile apps that help LOs, agents, and borrowers communicate with ease. Then, with the help of Unify’s CRM, you can mine your database, identifying borrowers who may be ready to refinance or move. Contact CMC to put these tech solutions to work for you!
The Little League World Series is underway. The 74-year-old tournament has introduced the world to meme-worthy characters like Big Al and Cash Money as well as genuine role models like Mo’ne Davis, who graced the cover of Sports Illustrated in 2014. Inspired by the winning attitude these young athletes bring to the field, Sales Boomerang has announced the topic for its next webinar: “How To [Legally] Start Winning With An Unfair Advantage.” Join Alex Kutsishin and industry icon Jim Deitch (moderated by Pablo Troncoso) on Thursday, Sept. 2, at 3 pm ET for an unscripted discussion of the tech tools and strategies for fielding an all-star production team. Want to hit it out of the park with your borrowers every time you step up to the plate? Register today.
Mad Mortgage continues with Episode 6, an in-studio interview with Mike Peregrina, president & co-founder of Homie. Mike and Mace discuss the ideas behind improving the home buying process that led to Homie’s creation. Hear the story of where it all started and how Homie continues to revolutionize the home buying process from start to finish – creating a one-stop-shop experience that saves customers thousands of dollars. Follow Mad Mortgage as we continue to interview lending experts, tech innovators, and mortgage leaders to provide you with up-to-date information on the latest trends. Watch Mad Mortgage on YouTube or stream audio from popular podcast sources. Visit http://madmortgage.tv/ to learn more.
Since you’ve been rocking out all summer to Schools out for the Summer, it’s time to go Back to School like Rodney Dangerfield for some triple lindy action. In the next few days, The Money Source (TMS) will be opening its virtual doors to Subsequent QC and MQMR for their annual subservicer audit. Get on the bus and sign up fast for your annual subservicer audit, whether it’s TMS, DMI, or the many other subservicers that we audit every year. Don’t get schooled! Email [email protected] or read Subsequent QC’s case study on why the top lenders in the industry choose Subsequent QC.
Offer a Conventional Triple Play! The Freedom Mortgage Wholesale Division is pleased to offer new Conventional base price improvements for many popular note rates along with LLPA updates in many LTV/FICO ranges. Additionally, take advantage of its (.250) LLPA Purchase Incentive and 2 business day Priority Purchase Underwriting for all Conventional, VA and FHA purchases. Plus! Check out Freedom’s NEW Premier Jumbo Fixed Rate product featuring a maximum 89.99% LTV/CLTV (Purchase, Rate/Term, up to $1.5 million, 1 unit, single family, includes PUD/Condo, minimum 740 credit score), no required mortgage insurance, and cash out up to $750,000 on primary and second homes. Now available for table-funded broker and non-delegated correspondent clients using their table-funded broker ID.
Fannie, Freddie: always moving
Fannie Mae and Freddie Mac just updated the Uniform Appraisal Dataset (UAD) FAQs discussing key benefits of the UAD and forms redesign, the project scope, and more.
Starting Sept. 18, lenders can use borrowers’ positive rent payment history in Desktop Underwriter® (DU®) to increase homeownership opportunities for more renters. Fannie Mae’s New FAQs will help lenders understand how to use DU’s latest innovation. Yes, single-family lenders, with permission from mortgage applicants, can automatically identify recurring rent payments in the applicant’s bank statement data to deliver a more inclusive credit assessment. For qualified renters who may have limited credit history but a strong rent payment history, Fannie Mae’s DU enhancement creates new opportunities for homeownership while promoting safe and sound lending. Only consistent rent payments will be considered to improve eligibility, any records of missed or inconsistent rent payments identified in the bank statement data will not negatively affect the applicant’s ability to qualify for a loan sold to Fannie Mae.
Quality control vulnerabilities continue to increase as the challenges of unprecedented loan volume and shifting investor requirements increase. Check out the latest issue of Fannie Mae Quality Insider to get tips on how to ensure your QC vendor is accurately performing loan file reviews to produce reliable QC results.
Fannie Mae updated the Master Servicing Simplification page to assist prepare for the changes announced in Lender Letter LL-2021-12, Advance Notice of Changes to Investor Reporting Processes and Systems. Visit the page and View the new file specifications (credentials required).
Fannie Mae Quick Fact – BPOs versus appraisals. For a borrower-initiated request to terminate conventional mortgage insurance based on current property value, including requests for substantial improvements, servicers must order an interior and exterior Broker Price Opinion (BPO) for one-unit properties or condominium units unless state law requires an appraisal.
Read the termination of conventional mortgage insurance policy. Read the escrow, taxes, assessments, and insurance policy. Access the Borrower-Initiated MI Termination FAQs.
Federal Housing Finance Agency announced that Fannie Mae will now require lenders to consider a borrower’s rental payment history as part of the mortgage underwriting process.
“This is a critically important move for expanding access to mortgage credit,” said Mitria Wilson-Spotser, Director of Housing Policy for The Consumer Federation of America. “Considering rent will allow more consumers to demonstrate a responsible payment history and, as a result, decrease their risk assessment as part of the home buying process.” The update to Fannie Mae’s underwriting systems is effective immediately. FHFA’s announcement is available here.
Visit the Freddie Mac PSPA Resource Center regularly to access training and other resources on Higher Risk Mortgages, $1.5 Billion Cash Volume Limit and Qualified Mortgage (QM).
Freddie Mac and Fannie Mae have updated the joint FAQs for the Uniform Appraisal Dataset (UAD) and Forms Redesign. The updates provide answers to additional questions received from industry stakeholders. Additional information resources about the UAD and Forms Redesign initiative include UAD web page, UAD and Forms Redesign video,
In order to meet Freddie Mac’s settlement date per its revisions to condominium (condo) project requirements, all Loans underwritten to current Freddie Mac requirements must be purchased by Wells Fargo Funding on or before August 30, 2021.Loans underwritten to current Freddie Mac requirements must be purchased by Wells Fargo Funding on or before August 30, 2021.
All Freddie Mac Loans purchased on and after August 30, 2021, must be underwritten to
Freddie Mac’s revised requirements.
Do you need to sell loans your company no longer needs or desires to hold? NASB works with mortgage lenders and sellers of all sizes across the country to facilitate whole loan trades, whether it’s a reaction to historic volume from 2020 or adjusting to the new Government Sponsored Enterprise (GSE) purchase caps, NASB can help. NASB Whole Loan Trading has a dedicated loan purchasing team, that provides a quick turnaround along with competitive pricing. “Regardless of if it’s ‘scratch and dent’ seasoned or non-seasoned loans in your portfolio, we buy both scenarios. NASB purchases* in bulk or even potentially individual loans. We buy residential property loans (1-4 units), mortgage loans in 1st lien position (excluding HELOCs), and loans underwritten to Agency standards but are non-salable. Contact NASB Whole Loan Trading Today! *Purchase approval subject to NASB’s purchase loan due diligence review. NMLS ID: 400039, EHL, & Member FDIC.
Traders and investors spend their days watching, in addition to general economic trends, price and yield differences between various securities. The spread between 5- and 30-year Treasury securities has held below 1.2 percentage points for almost two months. This lack of volatility, arguably, signals that investors are confident they have correctly assessed the Federal Reserve’s near-term moves on controlling inflation and adjusting asset purchases. Comforting.
The narrative last week was the concern of financial markets over speculation the global recovery will lose momentum as central banks begin to reduce support measures. The Delta variant continues to draw headlines as case counts and hospitalizations are back at recent highs and in some places intensive care beds are at full capacity. While it remains to be seen if this will adjust consumers’ behaviors, some service data, such as seated diners and TSA checkpoint counts, suggest that some services plateaued in July. Retail sales fell 1.1 percent in July as consumers pulled back on goods spending. The shift from spending on goods to spending on services has been expected by many economists although sales data is reported in nominal dollars and not adjusted for inflation in the manner of GDP reporting.
Looking ahead, markets will need to digest news coming from the Fed’s virtual annual symposium where officials are expected to discuss reducing monetary support while avoiding a taper tantrum reminiscent of 2013. Dallas Fed President Kaplan said on Friday that he does not know whether asset purchases are helping the labor market. The Fed speaker calendar is light until later this week when the Kansas City Fed Economic Policy Symposium “Macroeconomic Policy in an Uneven Economy” gets under way in Jackson Hole starting late Thursday with Chair Powell expected to speak on the outlook on Friday morning.
This week’s economic calendar includes updates on Markit PMIs, regional Fed surveys, housing, durable goods, GDP, with PCE to close the week. We are already out of the gate with the Chicago Fed National Activity Index for July (strong at +.53). Later this morning brings August Markit PMIs and July existing home sales. Today’s purchase schedule sees the Desk in for up to $4.4 billion across 30-year 2 percent and 2.5 percent followed by 15-year 1.5 percent and 2 percent. The Desk will release a new two-week purchase schedule Thursday afternoon covering August 27 to September 14. We start the week with Agency MBS prices off a few ticks and the 10-year yielding 1.27 after closing last week at 1.26 percent.
A friend of mine plays piano in a local restaurant.
One night, I listened to him play “Send in the Clowns”, one of my favorite songs.
As he finished a woman approached him.
“Can you play, ‘Send in the Clowns?’, she asked.
My friend shook his head sadly and replied, “Apparently not.”
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, “Ignorance of the Law is No Excuse.”. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed 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 2021 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.)