Aug. 9: LO jobs; TPO, due diligence, automation, servicing products; LD earnings; events and training; Moody’s bank downgrades

“Once things were so tough for me, I worked at a cheap pizza shop to get by. I kneaded the dough.” Things are indeed tough out there. The other day I caught my cat Myrtle at the keyboard, apparently trying to show my new granddaughter Kozette how to apply for a loan to buy a tuna fishing boat. (I know, there’s a lot going on here.) Anyway, up on the screen was a website that will generate a paystub given whatever information you provide. How’d you like to be an underwriter, trying to assure that the borrower has the ability to repay, with this out there? Hence the need, obviously, for some kind of third-party verification service, right? Meanwhile, companies, large and small, continue to sell servicing rights in packages, large and small, in order to raise cash. Servicing is, pretty much, all a lender has in terms of net worth. And when their servicing is gone, well…? For a good bell weather of the general industry, yesterday we had loanDepot’s Q2 2023 financial results. To LD’s credit, forecasts were made when 2023 that money would be lost. And they were right! (Today’s podcast can be found here and is sponsored by SimpleNexus, an nCino Company, developer of mortgage technology uniting the people, systems, and stages of the mortgage process into one seamless, end-to-end solution. Hear an interview with AIME CEO Katie Sweeney on mortgage happenings in Washington D.C., and mortgage broker training programs built specifically for wholesale mortgage professionals.)

Jobs

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Evergreen Home Loans™ proudly announced President Tamra Rieger’s inclusion in HousingWire’s 2023 Women of Influence list, a tribute to the top 100 influential women in mortgage, real estate, and fintech. Rieger, a 27-year industry veteran, steers Evergreen’s strategic growth, contributing to both profitability and customer value. Her influential roles on Freddie Mac’s and Fannie Mae’s lender advisory boards further highlight her industry-wide impact. Rieger acknowledges the award with humility, celebrating Evergreen’s diverse and inclusive culture. “We have an environment where everyone is valued and empowered to contribute their unique perspectives. Witnessing our team’s growth, particularly our incredible women leaders, has been the most rewarding part of this journey,” she stated. Evergreen invites you to explore current career opportunities listed on its website under Careers.

Lender and broker software, products, and services

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As they head back to class, students are stocking up with calculators, laptops, and other tools to do their best in the new school year. Mortgage Clearing Corporation (MCC), a full-service mortgage origination and servicing company, is following suit by adding some powerful new tools to its backpack. In this press release, read how MCC will use the Black Knight MSP® servicing system, along with integrated solutions such as the Servicing DigitalSM mobile app, Loss MitigationSM and McDash® data, to position itself for portfolio growth while delivering high-quality customer service. Servicers leverage the MSP system and its best-in-class functionality to transform their operations. Check out how MSP can drive your success and move you to the head of the class.

Processor & underwriter automation! Zoral’s automation platform delivers amazingly accurate results in record time! Improve processing and underwriting turn times from days to minutes. Zoral analyses, calculates, and compares LOS data to document data. Dynamic notifications and conditions provide your team with a concise roadmap of what is needed on every loan, at every milestone, all the way to CTC. Our engines accurately categorize, analyze, and calculate eligible income from all income sources, including 3rd party providers such as Account Check. Bank statements are analyzed to identify EMD, cash to close, large deposits, recurring debits, and credits etc. For the past 18 years, Zoral has been creating the most advanced, AI powered, automation solutions anywhere in the world. Our proprietary solutions are designed and built in-house and are implemented quickly by experts in mortgage lending. Stop messing with headcount at every turn of the market. Zoral’s automation tools will provide the elasticity to handle even the most unpredictable environments. To learn more about our automation solutions for mortgage, contact Dan Sussman.”

There is a lot of focus on rapidly increasing GSE buyback volume & the potential cost: Blue Water has a solution whether you are manufacturing loans or buying loans or MSR. Please join Blue Water Financial Technologies Services, LLC (“Blue Water”) for a Smart Diligence Webinar hosted by The Mortgage Collaborative (TMC) on August 15th. Registration Link here. Blue Water’s technology is cloud-based, onshore and will review and remediate to your specifications on each loan. Smart Diligence can help you save money, digitize your process, manage loan quality, and seamlessly transfer your Mortgage assets. Notably, Blue Water’s automated SuperTransfer™ + QC engine has been certified and insured by certain underwriters at Lloyds of London*. Connect with our Veteran Sales Team at Sales@bluewater-fintech.com to learn more. (*) Policy Summary & pricing available on request. Blue Water is not an insurance provider, broker, or underwriter.

TPO programs for brokers and correspondents

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Despite a challenging market and industry headwinds, Citi Correspondent Lending continues to increase its share and we’re on pace to deliver our fourth consecutive year of growing our approved seller base and overall production.   A significant contributing factor to our growth has been our continuous focus on creating innovative solutions through our execution portfolio: a best-in-class Mandatory Desk, a recently enhanced Non-Delegated platform, a product suite that includes Non-Agency Jumbo and most recently, the launch of our proprietary HomeRun product designed to create affordability in underserved markets.  In addition, Citi has invested in updated technology that provides user friendly loan registration and pipeline management tools, further enabling us to offer a pre-purchase loan review process focused on loan manufacturing quality. Interested in learning more? Complete our New Lender Questionnaire or request an opportunity to chat with a Citi representative at the upcoming Western Secondary Conference.

Invictus, through its affiliate Verus Mortgage Capital (“Verus”), recently completed its 50th securitization financing! In fact, since the beginning of 2015, Invictus has been the largest private credit investor in recently originated residential loans with a total aggregate loan balance of nearly $23 billion. Verus is the leading investor in non-QM mortgages, and it has the expertise and financial resources necessary for originators to succeed in today’s challenging market. Given the current stress in the banking system and the growing need for private and alternative credit, now is the perfect time for lenders to add non-agency offerings to their loan programs – and Verus is the right partner to help make that happen. It offers a comprehensive suite of non-agency programs with flexible guidelines to enable you to serve more creditworthy borrowers. Meet with Verus at the Western Secondary Market Conference Aug. 21-23. Email Jeff Schaefer, EVP – Correspondent Sales, or call 202-534-1821.

As a trusted advisor, U.S. Bank appreciates the power of partnership. The value U.S. Bank teams place on cultivating strong partnerships has led to mutually beneficial collaborations that fuel innovation for clients and expand sustainable homeownership. With a strong commitment to meet the diverse financial needs of their clients, U.S. Bank is pleased to welcome the addition of the Secured Overnight Financing Rate (SOFR) to its product lineup and, in 11 initial markets, the launch of the Access Home Loan to increase access to homeownership with up to $12,500 in down payment assistance and $5,000 lender credit available to eligible buyers. These strategic expansions reinforce its dedication to comprehensive client solutions. To learn more about U.S. Bank, please contact your U.S. Bank account executive.

Events and webinars coming up in August

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A list of major conferences through 2023 and into 2024 can be found here, under “Conference list.”

Register here for “Mortgage Matters: The Weekly Roundup with Robbie and Rob Chrisman” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT starting today, Robbie and Rob will dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Robbie and Rob will bring a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. Register for the first show today with Lenders One’s Justin Demola, CMB, as a featured guest discussing chatter from his hundreds of members.

Friday the 11th at 3PM ET is the next edition of The Mortgage Collaborative’s Rundown with Melissa Langdale and me. We’ll will be covering current events in the mortgage market for 30 minutes starting at noon PT in “The Rundown”. Special guest co-host Skylar Olsen, Zillow’s Chief Economist.

Register for an in-depth discussion with Private Eyes CEO, Sandra James, on the importance of background checks in today’s hiring landscape, August 15, 2023 @ 8:30 am PT webinar.

Don’t miss the MMA’s Triple Crown Event. Golf on beautiful grounds of The Wilds Golf Club, Tuesday, August 15th. Network with mortgage lenders and brokers while golfing with your friends and colleagues. Get ready to learn and interact with everyone in the industry, on Wednesday, August 16th. Enjoy a full day of speakers and breakouts, with keynote speaker Kristin Messerli. Stay for the after-party with LIVE horse racing just after the conference with the MMA.

There is a lot of focus on rapidly increasing GSE buyback volume & the potential cost: Blue Water has a solution whether you are manufacturing loans or buying loans or MSR. Please join Blue Water Financial Technologies Services, LLC (“Blue Water”) for a Smart Diligence Webinar hosted by The Mortgage Collaborative (TMC) on August 15th.

For some good economist’s perspectives, and one capital markets guy’s, tune in to “Unparalleled Insights into Trends and Bold Predictions” with Selma Hepp (CoreLogic’s Chief Economist), Michael Fratantoni (MBA’s chief economist), and Rob Chrisman” on Wednesday August 16th at 1PM ET/10AM PT, sponsored by TrustEngine.

Orrick webinar series, ConFi Today: What’s Around the Corner in Consumer Financial Services Enforcement. Inaugural session, Should You Be Losing Sleep Over Regulation E? Enforcement Issues, Payments and Deposits, will discuss current issues and enforcement trends impacting payments and deposits. August 16, 11:30 am–12:30 pm PT.

August 17-20 will be Originator Connect, the nation’s largest LO conference. A huge exhibit floor and tons of sessions that will help loan originators bulk up their pipeline, it’s also got special events such as The Non-QM Summit and the Private Lender Forum. Looking to start your own brokerage? There’s an entire half day Build-A-Broker program. And attendees can also get their federal NMLS license renewal class done while you’re there. It’s all free to NMLS-licensees and their support staff. Just go here and register using the code CHRISMANFREE. And if you want to know what’s coming your way, don’t miss keynote speaker Lawrence Yun, the chief economist for the National Association of Realtors.

Register for MBA/MW webinar, Avoid Compliance Pitfalls, Thursday, August 17, 10:00 AM EDT. Mitch Kider will discuss the current regulatory environment and hot topics in mortgage industry compliance, including fair lending, UDAAP, loan originator compensation, and recent activity by the CFPB and other regulators.

MBA Education Budgeting and Financial Planning for Non-Believers Webinar will provide mortgage bankers with the reasons why establishing, tracking, and modifying an annual financial plan or budget is essential to success in the mortgage banking industry. August 22, 2:00 PM – 3:30 PM ET

MBA Education Current Expected Credit Losses (CECL) Updates Webinar, designed to reduce volatility for banks and deliver predictable and consistent returns for investors. With the variation of adoption dates, some as early as 2020 and others just beginning in January of 2023, there have been lessons learned along the way. August 24, 2:00 PM – 3:00 PM ET

Join PRMG University to learn about using Symmetry HELOCs option for wholesale and non-delegated correspondent channels, Wednesday, August 23rd 12:00 PM PDT.

On Thursday, August 24th 1:00 PM PDT, learn about the FHA 203(h) product, the Mortgage Insurance for Disaster Victims program, which allows for up to 100% financing for the purchase of a new home for borrowers who owned or rented a home.

The 2023 Kentucky Affordable Housing Conference (KAHC), Rising to the Challenge: Building A Stronger Kentucky, will be held at Central Bank Center in Lexington on Thursday and Friday, August 24-25. Offering a wide range of training, panel discussions and networking opportunities, whether you’re interested in specialized housing, mortgage lending, single-family development, multifamily development, or HMIS. The general business development sessions will cover cyber security, diversity, language access and more. #KAHC23 is hosted by Kentucky Housing Corporation (KHC).

National MI University’s August Webinars: Building Trust and Eliminating Virtual Credibility-Crushers with Julie Hansen – August 15th at 1pm ET. Power of Mindset in Today’s Market ​​​​​with Rebecca Lorenz – August 22nd at 1pm ET.

The California MBA’s Western Secondary will be August 21-23 at the Waldorf Astoria at Monarch Beach in Orange County. “Explore the possibilities of the 2023 Western Secondary Market Conference – a unique in-person event that brings together the most influential players in the secondary market.”

The Knowledge Coop’s new membership platform offers all state and federal Continuing Education courses in an engaging and exciting video format that you’re sure to actually enjoy. Want to give yourself a sharper competitive edge? They also offer in-depth training on specific topics like VA Loans and FHA within their Coop Academy. Get access to industry experts and connect with other mortgage professionals all in one space. Use Code Chrisman10 for 10 percent off your first year of membership here.

Non-QM and non-Agency changes

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Do you have a borrower looking for a stand-alone second mortgage? Hometown Equity Mortgage offers a full doc for 90% CLTV, 12- or 24-month Bank statements up to 80% CLTV, Fico down to 660, 10-15-20-25-30 year fully amortized, second home and investment properties. Minimum loan amount is $75,000.

Check out the latest on Loan Stream Mortgage MaxONE DPA Program. MaxONE and MaxONE Plus are 100% CLTV FHA DPA programs that may help you qualify more borrowers and expand your market reach. High balance not allowed. Restrictions apply.

AD Mortgage Hot “Summer Sizzler” Non-QM Promo for Mortgage Brokers is designed to empower mortgage brokers while providing homebuyers with an incredible opportunity to secure financing for their dream homes. Throughout the entirety of August 2023, brokers operating in the states of Alabama, Arkansas, Connecticut, Massachusetts, Mississippi, New Hampshire, West Virginia, Wisconsin, and California can earn a substantial 0.25 credit on all Non-QM transactions for clients with 700+ FICO scores.

Capital markets: Moody’s downgrade of banks and lenders

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It’s a global economic community, right? Weak economic data out of China yesterday (trade plunged more than forecast, a blow to its recovery) helped to spur a slight flight to safety, causing bonds and mortgage-backed securities in the U.S. to rally. Aiding that move was Moody’s Investors Service announcing that it had downgraded several small and midsize American banks and lenders, and that it may do the same with a handful of major firms.

In Federal Reserve news, Philadelphia Fed President Harker said that the Federal Open Market Committee may be at a point where rates can be held steady to allow past rate hikes to take full effect. The September Fed Funds futures agree with him, with only a 12 percent chance of a rate hike currently priced in for the next FOMC meeting. The December futures see about a one-in-four chance of one more rate hike by the end of the year. Once the Fed signals that the rate hikes are over, it will go a long way towards decreasing bond market volatility and ultimately help to bring rates down.

Today’s calendar kicked off with mortgage applications from MBA, which decreased 3.1 percent from one week earlier. The only other thing to note on today’s calendar for those in the mortgage industry will be a Treasury auction of $38 billion 10-year notes, which follows yesterday’s $42 billion 3-year note auction that was met with a warm reception, which stopped yields on 5-years and shorter tenor from rising any further. We begin the day with Agency MBS prices nearly unchanged from Tuesday evening and the 10-year yielding 4.03 after closing yesterday at… 4.03 percent. (The 2-year is down to 4.78.)

Remind yourself how complicated “mortgage lingo” is to an outsider. How about this description of the “Turbo Incabulator”? (How does this guy keep a straight face talking about a girdle spring or repleneration?)

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. STRATMOR’s current blog is titled, “Improving Revenue Might Be Right Under Your Nose.” 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 2023 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.)

Rob Chrisman