As the industry digests Fannie Mae’s earnings announcement this morning with its $7.2 billion of net earnings in the second quarter of 2021, did you know that 79 percent of residential mortgage loans closed with the company that first took the application? As a lender, how are you capitalizing on that? Or, as the CFPB also tells us, “The percent of survey respondents who reported applying for a mortgage through a mortgage broker increased from 2018 to 2019 (from 42 to 46 percent for home purchase mortgages and 30 to 38 percent for refinances). On the other hand, the percent of survey respondents who applied directly through a bank or credit union decreased from 2018 to 2019 (from 54 to 49 for home purchase mortgages and 67 to 61 for refinances).” Yes, the CFPB and FHFA released updated data from the National Survey of Mortgage Originations for our digestion. Lenders know that compliance is the name of the game in funding loans, and the audio version of today’s commentary, available here, sponsored by Origence, features an interview with Andrew Weiss, SVP of Platform Strategy about the keys to lenders successfully navigating Compliance automation.
Employment & hirings
“Automatic? No, what you’ll experience with our Motto® Mortgage platforms, processes and compliance is a bit different. They’re not automatic… They’re “Mottomatic!” That means we’ve researched and vetted every one of our leading-edge loan originator tools to ensure they help make the lives of Motto LOs easier. If you’re interested in a world-class loan origination system that streamlines the homebuying experience, Motto has it. Want compliance reports and integrated alerts that highlight any compliance guideline or requirement issues? Motto has it. What about an all-in-one CRM tool that allows you to spend less time clicking buttons and more time building your business? It’s here. If you’re all about efficiency and effectiveness, it may be time to join the “Mottomatic” team. Motto offices are hiring in WA, FL, NV, UT, KY, OH, CA, AR, MA, and SC and we’d love to chat with you about your business.”
XINNIX, the premier provider of sales, operations and leadership performance programs in the mortgage industry has hired Michael Norton, former President of the Zig Ziglar Corporation and EVP of Sandler Global Accounts to serve as XINNIX’s new Executive Vice President. The 30-year sales and leadership training veteran will lead enhancement of XINNIX’s current Mortgage Performance Program and Leadership offerings and development of future programs of Training, Accountability and Coaching. Additionally, he will be overseeing the operations of XINNIX’s new Global Consulting Division powered by Tramazing, XINNIX’s newest acquisition. “We are committed to bringing the best-in-class to our industry in everything that we do,” said XINNIX CEO and Founder, Casey Cunningham. “Adding Michael along with Tramazing supports our mission and philosophy at XINNIX: Through Excellence there are Infinite Possibilities. We are only getting started.” Click here to learn more.
“We are competitors, but we are all Husbands, Fathers, Mothers, Wives and/or Friends in this business. I am deeply moved regarding one of the best mortgage recruiters in our industry, a veteran hero of our nation and a true inspiration of a man. His name is Jamal Chubb, and his wife is in critical condition after having contracted COVID during labor of their third child. He is a family man who is in desperate need of prayer from mortgage colleagues, but I’d like to encourage people to contribute to his wife’s condition by donating to his GoFundMe page. He didn’t ask me to do this. I am using this space typically used to recruit new loan officers, to raise money for his family to take one less pressure off his family. If you can’t do this, send him a note on LinkedIn and/or pray for his family’s peace and wife’s recovery,” says Rick Roque, Corporate Vice President at Shamrock Home Loans.
Lender & broker services and products
Did you know that you could enable a seamless reverse mortgage lending experience within your existing technology stack using ReverseVision’s APIs? ReverseVision is the leader in the reverse mortgage industry. Are you a lender? Leverage our platform including API Integrations to expand your lending portfolio serving your senior demographic and the historic 9+ trillion dollars in home equity. Are you a technology provider? Partner with ReverseVision and provide a seamless reverse mortgage lending experience, expand your footprint, and easily bring reverse mortgages to the forefront. Lenders are asking for this daily. Learn how you can partner with ReverseVision today!
“Mad Mortgage returns! After over a year-long hiatus due to the pandemic, we’re back in the studio with two new episodes! Episode 4 features Joe Wilson of SocialCoach. He and Mace dive into the world of social media as it applies to the mortgage industry. In our most recent recording, we interview the well-known Rob Chrisman for Episode 5 to discuss the origins of The Chrisman Commentary and industry trends. Mad Mortgage will 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.
The weather’s hot, the market’s hot, and you’re feeling the pressure to close more loans than ever… Sound familiar? When you work with wemlo sm to process your mortgage loans, we do the heavy lifting so that you can focus on building your business. A couple of the ways we do that? A fully transparent process means you’ll always know what’s going on with your loan. Loan processors who follow-up on conditions, signatures, underwriting, etc. every 24-48 hours. But don’t take our word for it, here’s what Stephanie L., one of our MLO’s borrowers, had to say: “I’ve bought two homes before and nothing stands close to what this company offers. My setup team was amazing, my processor was great, and my closer made this so easy for me! I highly recommend them.” Visit wemlo.io and see what wemlo can do for your mortgage business.
Surefire CRM automates every stage of the marketing journey, from customer acquisition to in-process communication to post-close engagement. For instance, Kloze Mortgage Co-founder Todd Billings says one of his favorite Surefire emails warns in-process loan applicants to call their LO before making any large purchases. “That’s the kind of communication I want, the kind that coaches our clients,” said Billings. “Some borrowers are going to be totally fine, but others may be on the verge of messing up their ratios.” Download the full case study to see how Surefire helps lenders like Kloze Mortgage keep deals on track.
Are you looking to work smarter, not harder? Richey May’s RM Automate, powered by the world-class Zoral Automation Platform, is an intelligent automation solution designed to enhance every part of your business. Build and customize automation across the whole organization, from POS to underwriting, to loan delivery and trailing docs, allowing you to reimagine the entire loan origination process. Seamless integration of loan processes, decisioning and workflow is hosted and managed by an automation platform in the cloud. Contact us to schedule a demo today to see how this intelligent automation is changing the game for lenders.
What’s the best way to attract and retain top lending talent in today’s industry? Sure, employee development and career pathing are important. But if you want to be a top-tier employer, you need to think outside the box. As millennials shape the workforce and technology provides new job opportunities, normal career progression tracks are changing. Join Maxwell hosts Alan and Bryan on the Clear to Close podcast as they explore the things mortgage industry workers want out of a career. From creating a culture that supports rising stars to forming trust through communication, leaders play a pivotal role in meeting those needs. Want a fresh take on how lenders should approach talent management and keep their employees engaged? Listen to the Clear to Close podcast’s new episode on Apple Podcasts, Spotify, or Google Podcasts.
Nothing is worse than an uncomfortable conversation with a regulator. Is your fee collection process compliant? Let’s be honest, the archaic upfront fee collection process that most lenders have doesn’t meet today’s compliance standards. LenderLogix set out to fix this and worked with their LOS partners to create a best-in-class mobile payment service called Fee Chaser. This secure application puts upfront fee collection on autopilot for lenders nationwide. Loan officers can click a button in their LOS to send a text message to borrowers requesting they pay their fees. When the payment is received, everyone gets a receipt. With mobile payment services as intuitive as they are, there’s no reason you should be manually recording your borrowers’ credit card information. Schedule a demo with the LenderLogix team to learn more about this no-brainer solution.
How do you maintain your sanity in training season? Cost reduction, increased efficiencies, and solutions to ease the chaos of training and tracking is what www.MortgageEducation.com provides: One Stop Training. Our DashEMS track NMLS and compliance certifications and progress and allows you to assign and remove students, and get this: it tracks unused licenses so you won’t pay for unused courses. Innovated cross-certification CE to compliance to eliminates HOURS of training for MLOs, an additional tool for retention. Contact Dave Olchek or request a demo. www.MortgageEducation.com (you might want to ask him about MortgageACE, the best test prep in the industry). Take it from your colleagues.
Rates and terms rarely differentiate one lender from the next in today’s increasingly competitive market. What does? Loan officers. High-performing loan officers (LOs) have built new habits and found modern, technology-enabled ways to operate more effectively and efficiently than the rest. Competition is about to get fierce, and it’s the high-performing LOs who can teach us what to do, and not do, to succeed in the coming months. Learn the four key habits that set high-performing loan officers apart from the rest in the latest eBook from Total Expert.
FHA & VA in the news
The Federal Housing Administration (FHA) on July 30, 2021, announced an extension of its moratorium on evictions for foreclosed borrowers and their occupants through September 30, 2021, and noted the expiration of the foreclosure moratorium on July 31, 2021. This extension is part of President Biden’s announcement on July 29 that federal agencies will use their authority to extend their respective eviction moratoria through the end of September, which will provide continued protection for households living in federally-insured, single-family properties. FHA’s eviction moratorium extension will avoid displacement of foreclosed borrowers and other occupants who need more time to access suitable housing options after foreclosure. With today’s announcement, mortgage servicers must continue to halt evictions for FHA Single Family Title II forward and Home Equity Conversion Mortgage (HECM) foreclosed properties, except for those properties that are legally vacant or abandoned. Mortgage servicers may initiate or continue foreclosures in accordance with FHA requirements once the Single-Family foreclosure moratorium expires as planned on July 31, 2021, but may not evict a foreclosed borrower or other occupant.
If a lot of your company’s value is tied up in Ginnie Mae servicing (comprised primarily of FHA & VA loans), be careful. Remember when the value plummeted last year due to the pandemic and forbearance moves? There is talk that Ginnie servicing could fluctuate wildly with the current thinking that GNMA issuers will have to hold more capital, and they simply won’t be able to issue as many securities or service as much. The depository banks such as Chase with all their capital could step in and become big players in this market, but they haven’t seemed so eager in the past.
Ginnie Mae released its latest Capital Markets Live podcast, which examines current and anticipated conditions in the U.S. mortgage-backed securities (MBS) market. The Press Release is available to view.
Yes, it bears repeating, in FHA Mortgagee Letter (ML) 2021-19 FHA announced the extension of its foreclosure-related eviction moratorium for foreclosed borrowers through September 30, 2021. This extension ensures borrowers with FHA-insured mortgages are not immediately displaced from their homes as well as provides them more time to apply for federal, state, or local housing resources or request assistance from a HUD-approved housing counseling agency. For more information, read the press release.
loanDepot? Michigan Disaster information, expansion of FHA Non-Permanent Resident eligibility, and Jumbo Advantage EXPRESS Expansions are discussed in loanDepot’s Announcement.
Flagstar Bank posted a memo regarding FHA’s new update to the Single-Family Housing Policy Handbook 40001. The updates include enhancements and revisions to existing guidance as well as various other technical edits.
VA Circular 26-21-11 clarifies VA processes relating to the remittance of the statutory funding fee. Although this information does not affect the delivery process to Flagstar Bank, VA’s updated are valuable information for Flagstar clients to access.
Mountain West Financial® extended the July special through August. $300 off the Underwriting Fee for FHA and VA loans (Excluding DPA & Bond programs) that meet the specified criteria.
Loan must be originated between July 1st and August 31st, 2021. Available to Mountain West Financial, Inc. Approved Wholesale Brokers.
For a limited time, LoanStream Wholesale is offering No Lender Fees on VA Streamlines.
The right hedging option is integral to effectively managing pipeline risk and increasing returns. Whether your institution is new to mandatory delivery, or you are interested in re-evaluating your current hedging approach, the most important consideration should be risk management for your pipeline. How can you most effectively mitigate the increased risk of mandatory delivery and fully realize the associated benefits? Black Knight recently published a white paper contrasting two hedging strategies: To-be-announced (TBA) mortgage-backed securities (MBS) hedging and note-rate hedging. While TBA MBS hedging involves the use of a well-known, highly liquid hedging instrument, it can come with greater price variability and risk. Note-rate hedging, on the other hand, offers a more conservative approach, but the method can compromise scalability and efficiency without suitable technology. Take a deeper dive into Black Knight’s objective and detailed comparison between TBA MBS hedging and note-rate hedging in the full white paper.
Yikes! How ‘bout dem rates! Treasuries rallied yesterday, and Agency mortgage-backed securities tagged along, as PMIs from China and the eurozone reflected a slowdown in the pace of growth. It may be a good time to call those borrowers on the fence about locking. In Washington, Governor Brainard said she’s inclined to use regulatory tools to head off financial excesses and more willing to adopt a central bank digital currency than current Fed Chair Powell, as many believe President Biden will make a choice between the two in February.
Turning to today, the Mortgage Bankers Association’s latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 1 basis point to 3.47 percent of servicers’ portfolio volume in the prior week as of July 25. According to MBA’s estimate, 1.74 million homeowners are in forbearance plans. Later this morning brings Redbook same store sales and June factory orders. We begin the day with Agency MBS prices worse a tick or two and the 10-year yielding 1.19 after closing yesterday at 1.17 percent.
(Thank you to Stephen S. for this one.)
A local charity had never received a donation from the town’s banker, so the director made a phone call. “Our records show you make $500,000 a year, yet you haven’t given a penny to charity,” the director began. “Wouldn’t you like to help the community?”
The banker replied, “Did your research show that my mother is ill, with extremely expensive medical bills?”
“Um, no,” mumbled the director.
“Or that my brother is unemployed? Or that my sister’s husband left, leaving her broke with four kids?”
“I … I … I had no idea.”
“So,” said the banker, “if I don’t give them any money, why would I give any to you?”
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, “A Primer on What Originators Should Know about the Fed”. 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.)