Daily Mortgage News & Commentary

Aug. 24: LO jobs; marketing, origination, DSCR, all-cash programs; September events, training, & webinars

Lenders continue to adapt, and LOs are adding value by being subject matter experts and marketing accordingly. (For example, today’s podcast features an interview with Bob Griffith, General Manager of Home Services at Houwzer, on using a client’s 401k to help finance a house.) Marketing is a fickle mistress. Ever “opt out” of receiving ads? The people that advertisers most want to target are hiding from the advertisers (thank you to Carla M. for sending that in). The implications to marketing efforts for any lender or vendor are clear. The implications of falling volume, margins, and revenue are clear as well: they’re leaving plans for 2022 in a shambles for most lenders and vendors. Every lender and originator know that 2020 and 2021 were not forecast to be record-breaking origination years, but they were. And if 2022 weighs in at $2 trillion in residential fundings, it will be a top 10 year. But still, volumes being down 50 percent from a year ago continue to cause cuts industry-wide, and organizations are reacting, even at the regional level. For example, the upcoming New England Mortgage Bankers Conference is offering a discount code of “RESUME” so anyone wanting to attend the conference for a special one-day pass, who is not employed, can attend either Wednesday or Thursday for $25. It’s on the honor system. More on upcoming events and training below. (Today’s podcast is available here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services in the mortgage industry and in banking.)

Employment

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It was recently announced that Sonny Bringol, President of Victorian Finance (VicFin), has led a group of investors to form a new partnership with Famers Bank. Famers Bank is a FDIC insured bank headquartered in Parsons, Tennessee. Bringol will serve as Executive Chairman and says, “He is pleased to help maintain the bank’s independence, culture and hyper-focus on community banking, while also expanding its product line for the future.” Kyle Townsend, President of Famers Bank, said that the new partnership will help the bank remain competitive while also expanding its offerings, asset size, and service area. Mr. Bringol has successfully operated VicFin, a residential mortgage lender operating in over 30 states, for almost two decades. You can read the full press release here.

Evergreen Home Loans™ is helping homebuyers get the home they love with the CashUp™ by Evergreen program. Cash is king, and CashUp™ by Evergreen helped [my customers] stand out even with one offer being $30,000 higher,” said Amy Trim, sales manager at Evergreen. “The ability to close quickly without financing and appraisal contingencies appealed to the sellers in addition to the cash… The sale closed in 11 calendar days.” Along with CashUp, Evergreen has a suite of innovative products to help loan officers thrive in any market. StepUp by Evergreen provides homebuyers a solution to step into their dream home with a strong offer before selling their current home, and Lock-n-List helps home sellers’ listings stand out with a locked-in rate. Loan officers seeking a company where the human spirit meets inspired technology and innovative products should visit the Evergreen Careers page.

Lender and broker services, software, programs

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Recently, ICE Mortgage Technology™ announced it will provide its hybrid eClose solution to all Encompass® clients at no additional charge. Citing ICE’s understanding and appreciation for the challenging volume and rate environment that lenders are navigating, this update allows lenders to continue to offer a better borrower experience through advancements in technology that is so critical for the industry. As part of the announcement, ICE Mortgage Technology pledges to continue to deliver innovation and automation to help lenders succeed. For more details on the ICE announcement click here.

The Real Estate market has changed but Knock offers the solutions to differentiate yourself from the competition. Get your buyers under contract with cash-backed offers and buy before you sell programs while leveraging our more than 300 broker relationships across the country. As a Mortgage Loan Originator with Knock, you will manage and originate a portfolio of self-generated and referral loans; proactively identify, develop, and maintain a quality network of business relationships that serves as a source of referrals; and leverage Knock’s relationships and proprietary products to take your business to new levels of success. To find out more, reach out to John.

Marianne Kozak has joined LoanStream Mortgage as EVP, National Wholesale Sales Leader. Marianne is an accomplished sales executive with over 20+ years of experience at leading lenders. She has a proven track record and reputation in the industry for successfully building out effective sales teams and developing Wholesale channels and volume. Plus, LoanStream is currently offering August Specials through the end of the month: New Brokers Up to $500 Off Appraisal Fee on Purchase, 25 BPS Off DSCR Purchase or Refinance and 25 BPS OFF Non-QM Purchase, visit us for more information.

With a focus on continuous improvement and a wealth of new information supplied by their new industry-focused finance system Loan VisionAssurance Financial Group was able to better integrate new technologies that allow them to quantify spend and show their ROI and cost to originate. “Loan Vision’s functionality is really an upgrade for our field because they’re able to track their expenses and monitor the P&L to know what they can and can’t do to stay profitable,” said Assurance CFO Chad Hebert in the latest Loan Vision Success Story. Interested in learning more about how your General Ledger should be helping drive profitability? Contact Carl Wooloff to schedule a call today.

talked to is spread thin. We know how difficult it is to produce compliant marketing that is targeted, localized, and customizable, while meeting your Loan Officer’s deadlines. Partnering with Usherpa means your sales team not only gets excellent done-for-them automated marketing campaigns included in their memberships, but your marketing team gets all the tools they need to take the stress out of their job. Usherpa’s Launch Pad Custom Email Wizard was designed for corporate marketing teams and allows marketers to create materials that align with your unique company vision and brand strategies. Wouldn’t it be nice to have this type of local content deployed automatically for your loan officers? Check out the current issues of Local Housing Market Stats Video and LocalEyes eNewsletterSchedule a demo today.

In-person events, training, and webinars through September

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“Join Chase and ICE Mortgage TechnologySM for an informative webinar. In conjunction with Chase’s $30 Billion commitment to advance racial equity, Chase Correspondent Lending created its Community Lending Program (CLP) to support its clients’ dedication to helping underserved customers and communities.  Recently, we worked with Intercontinental Exchange, Inc. (ICE) to deliver CLP pricing automatically on eligible loans via their pricing engine. Chase and ICE are hosting a webinar today, August 24 from 2:00 – 3:00 PM ET to discuss the use of geocoding capabilities in the EPPS pricing engine to identify properties that may qualify for Chase’s Community Lending Program.”

 

Register for Compliance IQ webinar on Friday, August 26. 14 Credit Discipline Tools for Diagnosing, Improving, and Maintaining Your Organization’s Credit Culture. Dev Strischek, A frequent speaker, instructor, advisor and writer on credit risk and commercial banking topics and issues, Martin J. “Dev” Strischek is principal of Devon Risk Advisory Group.

This Friday at noon PT is the next edition of The Mortgage Collaborative’s Rundown with Rich and Rob. We’ll will be covering current events in the mortgage market for 45 minutes starting at noon PT in “The Rundown with Rich and Rob”!

Join the Servicing Transfers Development Workgroup’s sessions on Aug. 30–31 at the Mortgage Industry Standards Maintenance Organization® (MISMO®) Fall Summit. Active participation from servicers is crucial to identify and address challenges in the servicing transfer process and create the foundation for these data standards.

 

In September, Enact (formerly Genworth Mortgage Insurance) will host multiple live courses to help grow your business and positively impact homebuyers. From sessions on calculating and modifying DTI, to guidance on appraisals for rural properties, to an overview on manufacturing housing requirements, to best practices for customer communications, there’s something for everyone! Browse Enact’s course catalog of on-demand webinars, just have your company or individual NMLS ID handy when registering.

The private mortgage insurance companies offer a fine range of very cost-effective/free training: National MI University, Enact’s course catalog of on-demand webinars, MGIC, Essent, Radian, and Arch MI.

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.

There’s no shortage of hot buttons (and headaches) for HR professionals in the mortgage industry these days. Capacity management, onboarding and offboarding personnel, incentive plan design, labor law and remote work are only a few of the topics keeping HR professionals in our business up at night. And MBA’s Human Resources Symposium is taking place September 8-9 in Arlington, Virginia.

National MI University’s Winning Business in an Era of Distrust with Kristin Messerli is Sept. 8 at 10am PT. In this webinar Kristin will share practical methods to build trust with today’s consumers through systems, automation, and customer experience techniques to drive better lead conversions and brand recognition in the market.

 

In the state of Washington, kick off the fall dinner season with Michael Fanning, register to attend PSMLA’s Dinner on September 8. Michael’s motivation, coaching and sales strategies will help you navigate this changing market.

 

Check the schedule at MBA’s Risk Management, QA and Fraud Prevention Forum, see the opportunities for timely updates and deep dives on the hottest topics impacting your business, plus networking opportunities with your peers from across the nation. You won’t want to miss it. Use the justification letter to get buy-in from your supervisor. Register for your event of the year in Nashville, September 11 – 13.

 

Join MMLA’s webinar on September 13 and hear from speaker, Tom Host on what 1031’s are, what they can be used for, and what the benefits of 1031’s are.

Have your lock policies adapted to meet the demands of today’s turbulent market? Is your secondary marketing department taking the right steps to mitigate current risk factors? Many lenders are facing financial stressors the industry hasn’t seen since the 2008 housing crisis. Rising interest rates, low inventory, lack of affordability and other factors are contributing to conditions that are difficult to navigate. If you’re working to fine tune your lock policies to address today’s market, make plans to attend the upcoming HousingWire webinar, hosted by Optimal Blue, a division of Black Knight, on Sept. 14 at 1 p.m. CT. Save your seat today!

 

Register for the MBA of Florida webinar, Survival Kit: Helping You Prepare for Today’s Cybersecurity Threats Sep 16, 10:00 AM EST. Presenter Robert Bigman, former Chief Information Security Officer for the U.S. Central Intelligence Agency, will discuss specific cyber threats – business email compromise, equipment security, and ransomware; Preparedness and steps if a breach occurs.

 

Free for MMLA members, hear from Doug Duncan, Chief Economist, join the Webinar on September 20th.

 

The New England Mortgage Bankers Conference is fast approaching, and there is a discount code of RESUME for anyone wanting to attend the conference for a special one-day pass who is not employed. They can attend either Wednesday or Thursday for $25. It’s on the honor system. Attendees will be 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.

Lenders One has the upcoming Sales and Marketing Basecamp on 9/22 at the Rock and Roll Hall of Fame in Cleveland, featuring experts sharing strategies on sales and marketing trends, technology, recruiting, retention and more. After the Rock and Roll Hall of Fame, you’ll network at the Pre-Game Tailgate at the FirstEnergy Stadium and then head inside for Thursday Night Football to watch the Cleveland Browns vs the Pittsburgh Steelers! Ready to get a savings review and learn what Lenders One membership benefits and networking events can do for you? Click here or email Tricia Migliazzo today.

 

MBA’s Risk Management, QA and Fraud Prevention Forum 2022 offers attendees the opportunity to meet with current and potential business partners at the premier gathering of risk management, quality control, underwriting, and fraud prevention professionals. Hear new insights from key leaders on industry issues, fraud prevention, risk management, and more. The event is Sunday, September 11 – Tuesday, September 13, at the Grand Hyatt Nashville in Tennessee: Click Here for the Event Schedule.

Interested in completing your Continued Education in a way that will keep you engaged and entertained? Join The Knowledge Coop for one of our Live In-person CE Classes! September 21 Bellevue, Washington (20% Discount Code: 20Washington), September 22 Lakewood, Washington (20% Discount Code: 20Washington), September 26 Houston, Texas (20% Discount Code: 20Texas), September 30 Austin, Texas (20% Discount Code: 20Texas), and October 6 Denver, Colorado (20% Discount Code: 20Denver).

 

Capital markets: housing being hit by higher rates

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We learned yesterday that manufacturing and Services Purchasing Manager’s Index readings for August both decreased from their final July levels. More pertinent to the mortgage industry, new home sales fell 12.6 percent in July to a 511,000-unit pace, the lowest level since January 2016 and a larger drop than what was expected. While the report is hardly a surprise given the sharp pullback in home builder confidence reported last week, sales are down 32 percent from a year ago, reflecting the adverse impact of rising mortgage rates and high home prices on overall demand. With sales slowing, the inventory of new homes available for sale rose for the fourth straight month to 464k units, which is the highest inventory level since March 2008. Building remains weak despite the shortage and there is talk that builders may begin to discount current asking prices in order to move completed inventory, which would decelerate home price growth over the remainder of the year.

MBA mortgage applications led off today’s economic calendar, once again decreasing, this time 1.2 percent from one week earlier, remaining at a 22-year low. The second quarter of 2022 has been tough for mortgage bankers, with companies losing about 5-basis points on average despite the second and third quarters usually being the most profitable for the industry. This was the first second quarter loss since 2008. We’ve also received the always volatile durable goods orders, this time for July (flat, but ex-transportation +.3 percent). Later this morning brings July pending home sales, a Treasury auction of $45 billion 5-year notes, and an MBS purchase operation by the NY Fed targeting up to $445 million GNII 4 percent through 5 percent. We begin the day with Agency MBS prices down a few ticks from Tuesday and the 10-year yielding 3.07 after closing yesterday at 3.05 percent.

Yesterday I had a video showing Tom Wilson who played Biff Tannen in “Back to the Future,” singing a song he wrote about answering the same fan questions for 30+ years. The video prompted BofA’s Scott Lorkis to send, “Let me tell you a little story about Tom Wilson. Back in the late 80s I was involved in a group that raised money for children’s cancer research. We had an annual event where we brought in the kids for a day full of fun activities, to maybe take their minds off of their situation for those few hours. One year the celeb who was supposed to come backed out at the last minute.

“Someone happened to know Tom’s number and regardless that it was a Saturday morning at 7:00A, without a moment’s hesitation he jumped out of bed, drove down to our event, and spent the day entertaining the kids. The look on the kids’ faces when “Biff Tannen” showed up was priceless. I have to admit I was unsure at first how he could manage to turn Biff into a full day, but he did and was amazing. At the end of the day we literally had to pull him off the buses so the kids could go back to the hospital. What a great, great human being.”

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. Lenders are Eying Compensation and Ops Trends” is the current blog. 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.)