Happy 420 day! (And “Happy Surprise Drug Test Day” tomorrow!) More and more people in more and more states understand what that signifies. And there is gradual pressure to change the Federal view of marijuana use. But until that changes, Federal entities (like Fannie & Freddie) and nationally-chartered banks, will continue to not count income, and finances, from cannabis-related activities. Eventually in the future yes, but for now, no.

Also in the future is the gradual elimination of LIBOR, a concern with loan servicers and anyone with any contracts tied to that index. (Yes, it is an acronym so capital letters are used, but the use of small letters has increased.) To refresh your memory, Libor, the reference rate for more than $350 trillion of assets globally, is being phased out after a series of manipulation scandals that led to banks being fined billions of dollars. The United States, Britain and other key markets have until the end of 2021 to replace the Libor money market rate, despite the global financial industry being slow to embrace the change, as the transition to the Secured Overnight Financing Rate (SOFR) is not seen as a pressing issue.

The London Interbank Offered Rate’s days are numbered, and bankers have heard that SOFR will replace LIBOR as a benchmark in 2021. But what is involved in this transition? To learn more about the impact and how your bank can plan for it, download PCBB’s white paper, “Moving from LIBOR to SOFR: Smoothing the Transition for your Financial Institution“.

Regulators and industry groups are developing a market protocol to govern the shift of derivatives contracts linked to Libor to fallback benchmarks after Libor is discontinued. Dan Fichtler, the Director of Housing Finance Policy with the Mortgage Bankers Association, observes, “SOFR tends to run below LIBOR, so borrowers would see their rates decrease as a result of the shift, assuming no change in margin (which is itself a subject of intense scrutiny right now). There are many, many conversations and analyses, both legal and financial, taking place to determine how the transition would work. Much of that work is being undertaken by the Alternative Reference Rates Committee, which is the public-private group being organized by the Fed. I’d certainly recommend the ARRC website, which has lots of useful information.

Federal Reserve Governor Randal Quarles, who was joined in Washington by regulators from Britain as part of the spring meetings of the International Monetary Fund and World Bank, said the U.S. financial industry must accelerate efforts to move away from the scandal-plagued Libor reference interest rate, adding the Fed is scrutinizing banks’ transition plans. Quarles warned that major new markets such as SOFR “do not arise overnight” and can take decades to develop, needing the backing of the private sector.

Any hopes for more transition time were quashed by Britain’s Financial Conduct Authority, deeming requiring banks to support a “fragile” Libor beyond 2021 inappropriate. The FCA could not rule out that some “legacy” products might still refer to Libor after 2021, but new products should not. The FCA and Bank of England are making senior bank officials personally responsible for timely transition from Libor to the BoE’s Sonia overnight rate, including the transition away from Libor as part of their regular monitoring of large firms.

Sonia, SOFR, regardless, lenders need to be proactive and identify LIBOR exposure. Dan F. reports, “(We are) spending quite a bit of time on the transition away from LIBOR. On the residential policy side, MBA has a working group on the mortgage-related elements of the transition – this group is our main venue for all of our policy work on the issue. Aside from educating members, our main goal is to serve as a forum for establishing best practices and/or standardization for the industry. This will include discussions around criteria for choosing new benchmarks for future production, operational issues related to servicing legacy loans tied to LIBOR, new consumer and other disclosures, and changes to fallback language in contracts.

“Our expectation is that the GSEs will be spending more time in 2019 determining: 1) what they will accept in terms of future production; and 2) what benchmark(s) they will use for servicers of legacy loans tied to LIBOR. We hope to work with them on issues like potential changes in the note language and the developments of timelines and implementation instructions (a la the Single Security Playbook, for example).

My guess is that we can look for Freddie and Fannie to create an ARM program tied, probably, to SOFR some time in the next year or so.

State law changes

North Dakota has enacted House Bill No. 1110 relating to the adoption of the Revised Uniform Law on Notarial Acts. This section has been updated to include requirements concerning remote notarial acts utilizing communication technology. The amendments specify the requirements that must be met for a notary to perform a remote notarial act.  In part, the notary must be able to identify the individual either by personal knowledge, credible witness attestation, or utilization of at least two different types of identify proofing. Additionally, the notarial certificate must include the language: “This notarial act involved the use of communication technology.” A notary must also notify the secretary of state that he or she will be performing notarial acts remotely and identify the technology he or she intends to use prior to his or her first notarial act. A notary is also required to keep a journal including a chronical of all notarial acts performed remotely. The journal must be retained for 10 years after the last notarial act.

Wyoming has enacted House Bill 292 amending foreclosure sale and right of redemption provisions. The Act clarifies the definition of “agricultural real estate” with respect to the right of redemption used in Section 1-18-103.  Agricultural real estate is defined as: [A]ny single parcel of land in excess of eighty (80) acres lying outside the exterior boundaries of any incorporated city, town or recorded subdivision or any property that is used substantially for agricultural purposes, which, if combined with other agricultural purposes, equals eighty (80) acres or more in aggregate. Additionally, House Bill 292 amends Section 1-18-111, sale on foreclosure of mortgage, to allow a limited right of entry to a purchaser in order to ensure the property does not significantly deteriorate during the redemption period.   A limited right of entry is defined as “entrance into the premises which is not occupied by a legal inhabitant.”

The State of Utah amended its provisions under its Notaries Public Reform Act that include establishing requirements for the process by which a remote notary may perform a remote notarization, requiring a remote notary to maintain an electronic journal, and amending the fees a notary may charge for performing a notarization. The bill takes effect on November 1, 2019. Language includes that “a notary” includes a “remote notary” and defines remote notarization as “a notarial act performed by a remote notary for an individual who is not in the physical presence of the remote notary at the time the remote notary performs the notarial act.”

An individual commissioned as a notary or an individual applying to be commissioned as a notary will apply to the Lieutenant Governor for a remote notary certification and the Lieutenant Governor shall certify that individual to perform remote notarizations as a remote notary if he or she meets certain conditions. Remote notarization procedures are created, and states that “a remote notary who receives a remote notary certification may perform a remote notarization if the remote notary is physically located in the state. A remote notary is required to create an audio and video recording of the performance of each remote notarization and store the recording and is required to take reasonable steps consistent with industry standards, to ensure that any non-public data transmitted or stored in connection with a remote notarization performed by him or her is secure from unauthorized interception or disclosure.

A remote notary certification will not be effective until the notary in the remote notary certification files with the lieutenant governor evidence that the notary has obtained $5,000 of bond coverage. A remote notary should ensure that the notarial certificate used for a remote notarization includes a statement that the remote notary performed the notarization remotely.

Section 10 amends the fees and a notary may charge. The maximum fees a notary may charge for notarial acts are: $10 per signature for an acknowledgment, $10 per page certified for a certified copy, $10 per signature for a jurat, $10 per person for an oath or affirmation, $10 for each signature witnessing. The amendment further provides that $25 is the maximum fee a remote notary may charge for an item described above that he or she may perform as part of remote notarization.

A notary journal must be kept and requires a remote notary to keep a secure electronic journal of each remote notarization the notary performs. The information that should be entered in the journal is listed, and states that a remote notary shall include with the journal a copy of the electronic recording of the remote notarization. The remote notary is required to maintain or ensure that a person that the notary designates as a custodian maintains information entered in the journal for a period of five years.

Section 13 provides for inspection of journal and requires a remote notary to ensure that the electronic journal and electronic recording that is maintained by the remote notary is a secure and authentic record of the remote notarizations that the notary performs. The remote notary is also required to maintain a backup electronic journal and electronic recording and must protect the backup electronic journal and electronic recording from unauthorized access or use. A custodian may be designated for the remote notary’s electronic journal and electronic recording and an agreement must be executed by the remote notary with the custodian that requires the custodian to comply with the safety and security requirements with regard to the electronic journal, the information in the electronic journal, and the electronic recording.

Section 14 require a remote notary to keep an electronic seal and electronic signature which may not be used by any other person with the exception of a chosen guardian. The amendment also provides that “the official seal used for an in-person notarization shall be in purple ink while each official seal used for a remote notarization shall be rendered in black.”

The amendment requires a notary who resigns or whose commission expires or is revoked to destroy the notary’s official seal and certificate and if the notary is a remote notary, to destroy any coding, disk, certificate, card, software, or password that enables the remote notary to affix the remote notary’s electronic signature or  electronic seal to a notarial certificate. A former remote notary is required to certify within 10 days after the day on which the notary resigns or the notary’s commission expires or is revoked to the lieutenant governor in writing that the former remote notary has complied with the requirements of destroying any coding, disk, certificate, card or password.

Section 15 provides for obtaining an official seal and states that a person may not provide an official seal to an individual claiming to be a notary unless they present a copy of their notarial commission. The amendment forbids anyone from creating, obtaining or possessing an electronic seal unless the individual is a remote notary.

Utah modified provisions under its Consumer Credit Protection Act effective on May 14, 2019. Section 6 of the amendment modifies the penalty for violating the Act to “no greater than $100,000 in the aggregate for related violations concerning more than one consumer unless the violations concern 10,000 or more consumers who are residents of the state; and 10,000 or more consumers who are residents of other states; or if the person agrees to settle for a greater amount.” The amendment also establishes that an enforcement action filed under the Act shall commence no later than five years after the day on which the alleged violation last occurred.

Section 9 of the amendment permits funds in the Attorney General Litigation Fund to be used for education and outreach on certain matters and any balance in the fund in excess of $4,000,000 at the close of any fiscal year shall be transferred to the General Fund.

(Thank you to P.A. for this one. Let’s call it “un-rated;” I am sure someone will take offense to it. So if easily offended, don’t read.)

A blonde, city girl named Amy marries a Colorado rancher. One morning, on his way out to check on the cows, the rancher says to Amy, “The insemination man is coming over to impregnate one of our cows, so I drove a nail into the 2×4 just above where the cow’s stall is in the barn. Please show him where the cow is when he gets here, OK?”

The rancher leaves for the fields. After a while, the artificial insemination man arrives and knocks on the front door. “I came to inseminate the cow,” he said.

Amy takes him down to the barn. They walk along the row of cows, and when Amy sees the nail, she tells him, “This is the one right here.”

The man, assuming he is dealing with an airhead blonde, asks, “Tell me, lady, ’cause I’m dying to know. How would YOU know that this is the right cow to be bred?”

“That’s simple,” she said. “By the nail that’s over its stall,” she explains very confidently.

Laughing rudely at her, the man says, “And what, pray tell, is the nail for?”

The blonde turns to walk away and says sweetly over her shoulder, “I guess it’s to hang your pants on,” she replied.

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, “MBS Liquidity: A Real Trooper.” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.

Rob

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are hundreds of mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2019 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Saturday my commentary raised the question about whether lenders would rather see a recession, with its typically lower rates, or a burgeoning U.S. economy with its higher associated rates. From out in California, Dick Lepre quipped, “People in the mortgage business are as happy with recessions as the undertakers in Clint Eastwood westerns are when he come to town.”

Employment & business opportunities

A national originator/marketer of consumer installment home improvement loans is looking to diversify and add an investor to its existing base of funding partners. “In this increasingly competitive, low margin mortgage market, our rapidly growing platform would be a natural fit and extremely complimentary to any portfolio investor (bank, credit union, hedge fund, servicer, etc.) that is currently purchasing and/or servicing real estate loans. Further, additional opportunities are available to market and cross sell homeowners with historically high FICO, low default ratios. The majority of our business is sourced through a national network of home improvement dealers/contractors, is 100% tied to home improvement projects, and underwritten with full income, credit verifications and documentation. Recent production/performance highlights are as follows: 9.4% WAC; 738 Avg. FICO; 31% DTI; $58,000 Loan Amount; Avg Term. 11 years; Less than .025% Default Ratio, full credit/income required on all loans.” Confidential inquiries from Lending Officers, and/or Principal please send to Anjelica Nixt.

Spring EQ Wholesale, the nation’s premier wholesale second mortgage lender, offering 95% CLTV combos (purchase or refinance) and 100% CLTV standalone fixed rate second mortgages, and who pays 1.5% in LPC on every loan, is GROWING. Joining the team are the following Senior Account Executives: Lauri Preedge (Orange County/Southeast) and Tony Raia (LA/Northwest) in California, Tracy Pyeatt in Oregon/Washington, Dori Boxberger in Arizona, Coleman in Illinois/Indiana/Iowa/Wisconsin, Tara Marcordes covering the entire country, Becky Ricketts in Kentucky/Tennessee/Ohio, and Shannon Miller in Pennsylvania/New Jersey. Spring EQ Wholesale continues to hire Inside Account Executives in Philadelphia, and Outside Account Executives in Northern California, the Northeast, and the Southeast regions and interested applicants should apply here. In addition, any brokers, banks and credit unions looking to partner should apply here.

Final Deadline for consideration: Attention FinTech Investors and Investment Bankers, mature, profitable and well adopted Mortgage technology (Sales Automation/CRM) firm,

seeking to raise $10M+ for rapid expansion purposes across banking and mortgage verticals to enhance the sales and prospecting capabilities of mortgage loan officers. Serious and interested investors may inquire by contacting Anjelica Nixt for a confidential discussion. Mortgage Technology Document Management firms, Mortgage Insurance, institutional or private sources of capital are encouraged. We will engage with those firms who inquired by April 30th for discussion and engagement.

GSF Mortgage Corporation is excited to offer FNMA’s new initiative, MH Advantage® Loans, a great alternative for aspiring homebuyers. MH Advantage® is a new homeownership option that offers innovative and affordable financing on specially designated manufactured homes that feature site-built characteristics. GSF Mortgage Corporation is one of the few lenders offering this product as a Single Close Construction to Permanent loan up to 95% LTV. Single Close Construction loan programs offered are FHA-96.5% LTV, USDA-100% LTV, VA-100% LTV, and Conventional to 95% LTV. All programs are single settlement without the need to requalify the borrower after initial closing. GSF Mortgage Corporation offers more choices to our customers than most other lenders, to buy or build their dream home. If you are an Originator with construction experience, please contact our VP of Retail, Frank Papaleo, for information on the opportunity.

Lender products & services 

National MI has partnered with NAMB+ as part of its continuing effort to work more effectively with mortgage professionals in the third-party originator/wholesale space, including mortgage brokers. NAMB+ connects NAMB members with an array of endorsed providers aimed at helping mortgage professionals gain a competitive advantage in today’s marketplace. “National MI is pleased to work with NAMB+ to provide mortgage brokers with educational content and other tools so they can learn more about mortgage insurance solutions,” said Mike Dirrane, senior managing director and chief sales officer with National MI. “We see the broker segment increasing their market share in 2019. By partnering with NAMB+, we are looking to foster our relationships with brokers, as well as help them increase their business.” The mortgage broker share of new residential mortgage production rose to 11.6 percent in 2018, which was the highest level since 2010, according to IMF, and is expected by many to increase further in 2019. “NAMB+ is delighted to welcome National MI as an endorsed provider,” said NAMB+ President Mike DeSantis. “Our NAMB members will truly benefit from the array of mortgage insurance products and services they provide.”

Merchants Bank of Indiana is once again expanding its Product Offering and has added Agency Non-Delegated to its menu of products. In sync with its Non-Delegated launch, it joined Optimal Blue’s extensive investor network and are now offering their Best Effort pricing through Optimal Blue. In addition, they announced that Dan Hastings, CMB has joined their team as AVP, Correspondent and Warehouse Sales Executive.  Dan brings 35+ years of Mortgage Lending experience to his new role. Rob Wilson, Vice President commented, “We are very excited Dan has joined our Merchants Team. His sharp customer focus and extensive mortgage finance experience fits our customer driven strategy and brings added experience to our team.” Merchants offers Warehouse Financing; Correspondent Lending, Agency and Premium Program; and Enotes, Warehouse & Investor takeout.

NewRez recently announced the expansion of its SMART Series line of Non-QM, non-agency loan products in all of its business channels. “With more than a year of successfully originating SMART Series loans, we found that there were opportunities to make adjustments in the programs that would allow us to reach an even larger number of borrowers,” said Kevin Harrigan, NewRez President and CEO. NewRez has now expanded many terms and features, including loan amounts, FICO and LTV combinations. For example, SmartEdge, designed for borrowers qualifying full doc with Non-Agency/Non-QM features, has expanded LTV to 95%. Many SMART Series products are now available as 40-year interest-only loans. Program requirements have been adjusted as well, including the elimination of site and 2-4-unit condo project reviews. Speak to your NewRez rep or learn more on our Wholesale and Correspondent websites.

Floify now provides even more flexibility to customize the look and feel of your digital mortgage origination solution to match your company’s unique brand with their new URL Whitelisting functionality – currently available to all users of Floify. What’s most impressive about Floify’s URL Whitelisting is lenders can embed and customize their lending portal and accompanying 1003 on any page of their website, complete with their company’s uniquely-branded URLs, to help create a seamless visual experience for borrowers, agents, referral partners, and more. Additionally, marketing teams will rejoice in having the ability to modify brand styles with Floify’s built-in CSS, JavaScript, and visual editors. Floify’s URL Whitelisting and growing suite of customizations were designed to put the power back in the hands of lenders. Experience the positive impact these brand customizations will have on your lending operation – request a live demo of Floify!

HUD & FHA address down payment programs

In September Bloomberg published an expose titled, “American Indian Tribe Becomes a Player in the No-Money Mortgage Business.” “Chenoa Fund, which is owned by American Indians, Utah’s Cedar Band of Paiutes (257 members). “’Chenoa’ is thought to be a native American word for peace, but operations like Ferguson’s are raising concerns in the industry and in Washington. That’s because he’s running a company with a dual role, not only providing the down payments for borrowers across the country but also profiting from making the loans by charging above-market rates and fees. Some members of the tribe say they’ve seen little or no benefit from the business and question where the money is going.”

Critics of Chenoa believe that it is merely a high-priced YSP funded DAP from a private company, and up until yesterday the industry wondered if HUD would address any ambiguity. The new FHA Mortgagee Letter 19-06, titled, “Down payment Assistance and Operating in a Governmental Capacity,” certainly does. “It has come to FHA’s attention that certain Governmental Entities may be acting beyond the scope of any inherent or granted governmental authority in providing funds towards the Borrower’s MRI in circumstances that would violate Handbook 4000.1, the National Housing Act, and is contrary to established law.”

One note I received observed, “HUD is really cracking down in two ways. It shuts down the YSP DAP since it can no longer come from ‘any other person or Entity who financial benefits from the transaction (directly or indirectly).’ But then it keeps the tribes on their own land with, “…the Governmental Entity is a federally recognized Indian Tribe operating on tribal land in which the Property is located or to enrolled members of the tribe.”

“At first glance, this appears to say that Chenoa can only provide down payment assistance for properties on tribal land or for borrowers who are enrolled members of the tribe. Put another way, HUD’s letter specifies that the Governmental Entity must be providing the funds ‘in its governmental capacity.’ In the case of an Indian tribe, the lender must obtain a legal opinion by attorneys for the Governmental Entity stating that, ‘the Governmental Entity is a federally recognized Indian Tribe operating on tribal land in which the Property is located or to enrolled members of the tribe’ and that funds must be, ‘provided in the Governmental Entity’s governmental capacity in the jurisdiction in which the Property is located or for the federally recognized Indian Tribe’s enrolled member…’”

HUD’s letter raises questions about whether or not the organization is a Federally recognized tribe, so therefore its “jurisdiction” is all of the United States? Because it is Federally recognized as a sovereign government, does that mean that the tribe has governmental authority outside of their tribal lands, or for non-tribal members? And what about financially benefitting from the down payment grant or second lien? Chenoa is a for profit enterprise, compared to a nonprofit HFA (Housing Finance Authority), and receives the interest and/or principal from scheduled payments or payoffs of these grants or second trust deeds, depending on the program and if the borrower meets certain requirements like zero delinquencies in 36 months. There is also a question about funding the second until the loan is sold to Chenoa, several days after origination. This may not comply with the requirement that the second is a liability or deduction from their bank account on or prior to loan closing.

Richard Ferguson, President of CBC Mortgage Agency which offers the Chenoa Fund, responded with, “FHA just published Mortgagee Letter 19-06, which creates a new policy on the provision of down payment assistance. The Mortgagee Letter appears to be an attempt by HUD to put Native American programs back on the reservation.

“We recognize that HUD’s issuance of the Mortgagee Letter 19-06 has caused confusion and concern with how this mortgagee letter may affect the Chenoa Fund. HUD’s attempt to implement new policy restricting governmental entities to operating within a specific jurisdiction violates federal law, including the Administrative Procedure Act, and restricts government DPA programs in an arbitrary and capricious manner. And HUD failed to comply with an Executive Order requiring tribal consultation. CBC Mortgage agency is reviewing all of its options, including litigation.

“We are deeply concerned with the manner in which FHA is promulgating new policies without adequate notice or explanation given to regulated parties. These unconstitutional changes in agency policy have caused significant disruption to the ability of lenders to make commitments to borrowers. Hundreds, if not thousands, of buyers are being adversely impacted by sudden changes in rules, with no regard to existing pipelines.

“This new Mortgagee Letter imposes unexplained new requirements. Effective immediately, HUD is requiring that all 1500+ government DPA programs have an attorney opinion in the file for new FHA loans. This will wreak havoc on the closings of thousands of borrowers while governmental agencies scramble to obtain these opinions. CBC Mortgage Agency is looking to industry participants for support in getting this unconstitutional and unlawful Mortgagee Letter withdrawn. Contact us for more information.”

Capital markets

U.S. Treasuries across the curve ended the trading week rallying to their best levels since Tax Day, including the 10-year closing yielding 2.56%. Agency MBS underperformed benchmarks on cautious risk sentiment in response to another weak set of Manufacturing PMI readings from Japan, France, and, Germany, which posted the fourth consecutive month of contraction; and stronger than expected retail sales for March that showed broad-based strength with gains across discretionary spending categories that will certainly aid in the calculation of the goods component for personal consumption expenditures in the Q1 GDP report. Mortgage rates were up slightly for the week, though they remain well off the 2018 highs from November. Rate levels remain attractive which should continue to support purchases, especially given the strong jobs markets. Dallas Fed President Robert Kaplan said his confidence in the growth outlook for 2019 is increasing. Internationally, the Bank of Korea left its repurchase rate and cut its expectations for South Korea’s 2019 growth while the inflation forecast was lowered. The European Parliament voted in favor of setting up a European Defense Fund for 2021-2027. And finally, the Bank of England’s Credit Conditions Survey for Q1 showed that availability of unsecured credit to households decreased as default rates of unsecured credit increased significantly due to higher defaults on credit card loans and corporate loans.

While the U.S. bond and equity markets are closed today for Good Friday, housing starts and buildings permits for March will still be released at 8:30am. Markets open back up Monday and will receive the Chicago Fed National Activity Index for March and existing home sales for March. The remainder of the week includes February FHFA HPI and March new home sales on Tuesday; March durable goods on Thursday, and the first look at Q1 GDP and the final consumer sentiment read for April on Friday. There are no Fed appearances scheduled as they are in their blackout period ahead of the April 30-May 1 FOMC meeting. The BoJ, however, will release its updated monetary policy decision on April 25. Rate sheets today tend to be conservative with no U.S. bond market prices or MBS prices to direct them.

As we head toward Easter, these supposedly appeared in real church bulletins (part 5 of 5):

26. The pastor would appreciate it if the ladies of the congregation would lend him their electric girdles for the pancake breakfast next Sunday.

27. Low Self Esteem Support Group will meet Thursday at 7 PM. Please use the back door.

28. The eighth-graders will be presenting Shakespeare’s Hamlet in the Church basement Friday at 7 PM. The congregation is invited to attend this tragedy.

29. Weight Watchers will meet at 7 PM at the First Presbyterian Church. Please use large double door at the side entrance.

30. The Associate Minister unveiled the church’s new tithing campaign slogan last Sunday: “I Upped My Pledge – Up Yours.”

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, “MBS Liquidity: A Real Trooper.” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.

Rob

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are hundreds of mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2019 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Experienced originators know that lending is a numbers game. Every 100 cold calls result in 20 conversations, which result in 5 potential leads, which result in 1 closed loan. Or whatever personal ratios are. Not only that, but there is a 2-4-month lag time between those 100 calls and any funded loans that come from making them so good LOs have been laying the groundwork for summer for a quite some time. But speaking of two months, from St. Louis Mike Swaleh reminded me that the revised Uniform Closing Dataset (UCD) Seller data requirements will be effective on June 24, 2019. Lenders are working on the borrower’s app process. For example, Envoy Mortgage has developed XLR8. More on Ops issues below.

Employment & business opportunity

Arc Home welcomes Katherine Gardner as Chief Production Officer leading Arc’s Wholesale, Delegated and Non-Delegated Correspondent Channels. “Arc Home is perfectly positioned to grow in this challenging market. By providing proprietary Non-QM products in addition to a full agency offering, we can meet our customer’s product needs and meet their desire to work with a unified operation and salesforce. Having a proprietary product enables us to advance in the Non-QM space others struggle with – program exceptions. Our competition sees loans outside the guidelines as exceptions; we see them as an opportunity for execution. Non-QM is blurring traditional channel lines. We are adding Account Executives with the ability to sell across the client-spectrum. In addition to growing our salesforce, we will continue to build our operations teams in Mt. Laurel, NJ and Phoenix, AZ. If interested in joining a growing team, please contact Katherine Gardner, Chief Production Officer.”

A privately-held mortgage company licensed in 14 states is interested in partnering with an investor or another mortgage company to grow their origination platform, in addition to securitizing and servicing loans The company has been in business for over 35 years and is approved by Fannie Mae, Freddie Mac, Ginnie Mae and all major private investors.  If interested, please contact Anjelica Nixt.

“At Franklin American Mortgage Wholesale Lending, our Account Executives are the heart and soul of what we do, providing best in class industry knowledge and a hands-on approach to developing relationships as we grow with our valued business partners. A division of Citizens Bank, N.A., we provide the tools and support that our AEs need to make an impact in today’s competitive marketplace. We are looking for Account Executives in Washington, D.C.; AZ; Austin/San Antonio, TX; UT; OK; WA; OR; Los Angeles, CA; CO; and Chicago, IL to join our team and take their careers to the next level. If you’re ready to join a team that’s focused on your success and the success of our business partners, please email Jennifer Rader, VP, Head of Talent Acquisition – Home Mortgage to get started today.”

One of the strengths of Caliber Home Loans, Inc. is its product portfolio. Caliber offers a wide range of loan options to meet the needs of more borrowers: government, conventional, jumbo, and a proprietary suite of non-agency loans. Caliber also participates in state-specific DPAs and bond programs, and has the ability to broker and offer buy-downs. By offering more products for its producers, Caliber gives them the opportunity to meet the needs of more home buyers and increase volume. In 2018 Caliber added 65 retail products, an increase from 44 products introduced in 2017. Part of this product expansion has included additions to its Caliber Portfolio Lending suite (CPL). Introducing Elite Access to this suite of non-agency loans was attributed to Caliber’s 122% growth in 2018 CPL volume. If you’re looking for a lender that has the products you need to succeed in this market, contact Jeremy DeRosa or visit www.joincalibernow.com.

Lender products & services

MGIC’s SEB Cash Flow Worksheets are Now Live! These worksheets are the industry standard for excellence in analyzing self-employed borrower income.

PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), understands the importance of efficiency when it comes to meeting our customers’ funding requests. “That is why we make the funding process simple: ‘Express Funding’ is how we help our customers reduce the time needed to get their loans funded. Express Funding allows our customers to submit multiple loans for funding in one simple data upload, whether it is one loan or 100 loans. Express Funding is an easy and efficient way to get the funds they need quickly. In addition, we offer a growing list of 2,000+ closing agents with No Doc funding requirements and funding turn times averaging under 30 minutes. We believe in consistently providing service to exceed our customers’ expectations. If you are interested in having a conversation about PlainsCapital Bank National Warehouse Lending, please contact Deric Barnett, EVP National Warehouse Lending.

With the market constantly fluctuating, lower your fixed costs and improve efficiency by outsourcing your QC operations. UHS America, a California based leader in QC/Compliance for nearly 20 years, has recently expanded its services to include Non-QM Underwriting Review. With over 120 years of combined mortgage expertise; their long-standing agency relationships with FNMA, FHLMC, FHA, USDA and; their state-of-the-art proprietary software QCIQ, UHS is confident they can help lenders save on origination costs while concurrently delivering the highest quality services for QC and Underwriting. For more information about UHS’s Prefund QC, Post-Close QC, Underwriting (QM and Non-QM), Due Diligence or Mortgage Consulting services, please contact Lisa Vang (657-269-4578), Kim Day, or visit www.uhsamerica.com. Connect with us through LinkedIn.”

The teams at SocialSurvey & Mortgage Coach are excited to announce an integration to help Loan Originators win even more deals! In today’s competitive environment, it is all about standing out from the crowd by providing incredible advice and establishing the highest level of trust with your borrower. Enterprise users of SocialSurvey & Mortgage Coach have the ability to display SocialSurvey reviews and testimonials inside the Mortgage Coach Total Cost Analysis (TCA). Scott Harris, CEO of SocialSurvey, stated “Our philosophy has always been reviews collected by Loan Originators should be shared in as many relevant places as possible.” Joe Puthur, President of Mortgage Coach, added, “Every TCA presentation will include client reviews, combined with tailored loan options.” Learn more about the integration by visiting SocialSurvey’s blog post.

Spring has arrived in Washington, and with it has come a great deal of activity on the housing finance front. Don’t know where to start when it comes to staying updated? We can’t blame you. There are the hearings on housing finance reform, the budgets of federal agencies, the memorandum about reforming the government-sponsored enterprises, and so much more. But, it’s this quietly announced change by the FHA that arguably poses a more immediate impact to mortgage lending. TMS’s government expert Nathan Shultz shares what this new change means for lenders in this latest blog. 

Report on MBA Tech Conference

Can the mortgage industry become like Apple or Tesla? In the April issue of STRATMOR Group’s Insight Report, Senior Partner and CEO Lisa Springer urges lenders to take cues from Tesla and Apple and adopt technologies that enhance the borrower’s experience. “The mortgage industry must transform the status quo and become forward-thinking and dynamic lenders willing to cater to a new digital era that removes the complexities of getting a mortgage,” says Springer in her article “Key Takeaways from the MBA Technology Solutions Conference.” Enhancing the borrower experience is driving technology investment, and Springer points out that in a conference session by STRATMOR Senior Partner Garth Graham, 58 percent of the attendees gave “borrower satisfaction” as their primary reason for investing in technology. Hear what STRATMOR heard at the tech conference, including how some lenders are incorporating robotics and AI into the mortgage process and alternatives to traditional loan origination systems (LOS). The April Insights Report.

Compliance, Ops, misc. underwriting changes

Lenders Compliance Group revealed that it is introducing its Website Tune-up!™ “We have pioneered unique regulatory tune-ups that are affordable, full compliance reviews, promptly completed by subject matter experts, and delivered in an actionable report. Our compliance tune-ups are a great way to quickly evaluate virtually all regulatory elements in mortgage banking, proving that compliance reviews do not have to be expensive or take forever to get done! CLICK HERE for more information about the Website Tune-up!™”

The April 2019 issue of Mortgage Compliance Magazine features a wealth of information on quality control, starting with the first installment of a nine-part series from Steve Spies, VP of Loan Quality with Fannie Mae, from Fannie’s Beyond the Guide. In this issue, Spies navigates the process of meeting secondary market investors’ QC requirements and discusses the keys to effective QC. This issue features insight from a number of the industry’s top QC experts on the latest QC issues, including Phil McCall of ACES Risk Management (ARMCO), Tim McWay and Aaron Soule of CrossCheck Compliance, Laura Kate Davis of Quality Mortgage Services (QMS), Charles Sewright of Quest Advisors, and Belinda Kraus of Trelix. Click here to view the April 2019 issue of Mortgage Compliance Magazine

AmeriHome announced the publication of several new Non-Delegated Underwriting Program resources available on SellerWeb, including new “Did You Know” resources, updated Non-Delegated user guides, a new Non-Delegated Loan Submission Checklist and new ordering options for private mortgage insurance.

Mortgage Solutions Financial posted updates to its Loan Purchase Requirements.

Freedom Mortgage Wholesale offers the Texas Non-Home Equity 50(a)(4) program. View the Product Guide for details.

FNMA updated requirements regarding borrower-initiated cancellation of private mortgage insurance (PMI) this past July. Mandatory compliance with these changes begins September 1st, 2019, but servicers may optionally begin complying with these changes starting on January 1^st. Read the docutech Compliance update for information on document changes to California, Connecticut, and Washington PMI Disclosures.

Waterstone Mortgage has introduced an update to its Single Loan Close Construction Program, or construction loan. The one-time-close loan program still offers one loan to cover the cost of the land, construction, and mortgage, but now also includes 95% LTV, meaning the down payment requirement is just 5%.

U.S. Bank Correspondent posted SEL-2019-014: Geographic Market Restrictions in Nevada.

AmeriHome announced that several new Non-Delegated Underwriting Program resources are now available on SellerWeb, including a new Non-Delegated Submission Checklist. A new private mortgage insurance ordering option is now available as well.

Eligibility and underwriting guidelines for the Ditech Correspondent Expanded Criteria products have been revised.

Effective March 18, 2019, the maximum LTV/CLTV’s for Second Home Purchases and Rate/Term Refinances with Mountain West Financial Wholesale have increased. Maximum LTV/CLTV has increased 5% for loan amounts/combined loan amounts up to $2,000,000.

Capital markets

From out of Michigan came news that Northpointe Bank’s new SVP of Capital Markets is Bryan Neitzelt. Bryan will be responsible for enterprise-level financial risk management of Northpointe’s nationwide residential lending business, including interest rate risk hedging, securitization, portfolio asset management and investor relations.

Few expect a big move in rates up or down in 2019, but that doesn’t stop them from drifting up or down. The yield on 10-year Treasuries was little changed at 2.59 percent after hitting its highest level in more than a month amid data showing the U.S. trade gap unexpectedly narrowed. European debt also dropped, while the euro strengthened even as Germany’s economy ministry revised its growth forecast lower. Health providers and hospital operators came under pressure as U.S. politicians debated expanding Medicare to all Americans, which could upend earnings models for large parts of the system. The rout in health-care shares dwarfed the latest batch of earnings reports, which painted a mixed picture on the state of the economy (e.g. Morgan Stanley rose, but Bank NY Mellon weighed financial shares lower). Earnings continue today and tomorrow, and investors are growing more confident the anticipated drop in Q1 results won’t ruin the year, as central banks around the world continue to be accommodative and the latest Chinese data calmed fears that the world’s second-largest economy was slowing down.

Data today began with weekly jobless claims for the week ending April 13 (-5k to 192k), Retail sales (+1.6%) and Retail sales excluding autos for March (+1.2%), and the Philly Fed Index for April (-5.2 to 8.5). Next up will be the flash Markit manufacturing PMI and flash Markit services PMI later this morning. Those readings come just before February Business inventories; and March Leading indicators at 10am ET. Finally, at noon Fed Governor Raphael Bostic speaks. Most financial markets will be closed for the Good Friday holiday tomorrow, including in the U.S., U.K., and Germany, but we will still have March Housing starts and Building permits. We begin today with agency MBS prices up slightly versus last night and the 10-year yielding 2.58%.

As we said through the week toward Good Friday & Easter, these supposedly appeared in real church bulletins (part 4 of 5):

19. Please place your donation in the envelope along with the deceased person you want remembered.

20. Attend and you will hear an excellent speaker and heave a healthy lunch.

21. The church will host an evening of fine dining, superb entertainment, and gracious hostility.

22. Potluck supper Sunday at 5:00 PM – prayer and medication to follow.

23. The ladies of the Church have cast off clothing of every kind. They may be seen in the basement on Friday afternoon.

24. This evening at 7 PM there will be a hymn sing in the park across from the Church. Bring a blanket and come prepared to sin.

25. Ladies Bible Study will be held Thursday morning at 10 AM. All ladies are invited to lunch in the Fellowship Hall after the B.S. is done.

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, “MBS Liquidity: A Real Trooper.” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.

Rob

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are hundreds of mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2019 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Economic doldrums? Probably not – but there is always someone out there claiming dire straits are right around the corner. A CNBC survey of Wall Street experts finds over 96% do not anticipate a recession by summer 2020, 70% are optimistic about the economy, and 30% have a neutral outlook. Fitch Ratings said there are no signs of recession currently but noted that global growth was sharply deteriorating. Fitch sees relatively strong US GDP growth as a positive and expects China will start stabilizing soon. And a survey of economists by the Wall Street Journal found that 57% thought the next rate increase by the Fed wouldn’t happen until September or later. This number is up from 35% in the February survey and 13% in the January survey. Overall, 18% of economists believe the Fed will not raise rates any more this year and that its next move will be to cut rates. This is up from 10% in February and 4% in January.

Lender products & services

Non-QM has arrived and is now spreading to virtually every lender and broker in the country, and originators are asking, how do I go about sourcing these clients in this high growth marketplace? Well, Deephaven is here to help! Deephaven Mortgage, a leader in the Non-QM market, and one of the first – established in 2012 – continues to shine the light on Non-QM through its products, processes, and innovative technology, and through education and ideas on how to source clients and build a Non-QM business. To find out more about how Non-QM can help you grow your business, please Deephaven’s wholesale or Deephaven’s correspondent group.

Is your call center consistently delivering high quality customer interactions? Sourcepoint, formerly ISGN Solutions, can streamline your call center operations to help you better manage changing call volumes and reduce costs. Sourcepoint’s next generation Contact Center and Collections services help loan servicers better communicate with customers, when and how they want, by voice, email, chat, social, text or survey. Its omnichannel contact center solution FirstCustomerIntelligence optimizes people, processes and operations by pairing customers with qualified agents and monitoring agent-customer conversations for constant improvement. Sourcepoint has also invested heavily in compliance and licensing to ensure your peace of mind. With centers across the U.S. and around the world, Sourcepoint offers the right languages, geographies and time zones to help drive the best customer satisfaction and return on investment. So, if you want to scale in sync with fluctuating call volumes, improve agent productivity and debt recovery, and ensure compliance, consider Sourcepoint.

Stearns Wholesale announced the release of a powerful new feature in SNAP 2.0 that makes it possible for brokers to calculate borrowers’ income. Brokers simply input a few docs into the Calculate My Income Tool in SNAP 2.0, hit submit and Stearns notifies you when the income is processed in a short, easy to read, breakdown. Brokers can use this tool to help qualify more borrowers under Stearns’ vast array of product options.  For 30 years, Stearns has empowered their brokers with tools to help them work smarter, more efficiently and close more loans. Learn more about this tool by watching this quick video.

Sierra Pacific Mortgage is hosting a free Market Power webinar on Sierra Elite. This jumbo product is so hot and can help you grow your business. Register for Thursday, April 25 at 1:00 pm PDT. You will learn about some of the amazing features of this program and how it can help your next borrower purchase up to $3.0 million or one who needs a cash-out loan up to $2.0 million. This is the loan program for them, including self-employed borrowers. Register now.

Simplify your underwriting process with Loan Product Advisor^® asset and income modeler (AIM). Through the expertise of third-party service providers, AIM automates the manual processes of assessing borrower assets and income. AIM reduces the burden of traditional documentation, speeds up the loan origination process and helps you close loans faster. Freddie Mac is working hard to bring you solutions that create efficiencies for your business and improve the borrower experience – giving you a competitive edge. These capabilities are available now. Gain greater efficiency in your underwriting processes with AIM – get The Freddie EdgeSM.

Hey Loan Officer! Don’t you wish you could have an underwriter on speed dial to answer all of your loan application questions on the spot, 24/7? What if your underwriter could be shrunk to fit in your pocket for when you need him? What if I told you that is possible? Well, not literally… we are not into shrinking people. We are into creating software that provides loan officers with underwriting knowledge at the tip of their fingers. The Rule Tool was made to make your job easier by providing agency guidelines that have been transcribed into easy to understand terms. Just select the agency you need, type in a keyword, and The Rule Tool will give you the rule, tips and more! It’s also updated daily by our underwriting experts. No more wasting time searching for answers. Get answers quick so you can get loans approved! Sign up now!

M&A

Mergers and acquisitions continue, big and small, involving non-depositories, banks, credit unions and other financial institutions. Things picked up in 2018, and are expected to continue in 2019, for many reasons. Let’s see what’s going on.

In Mortgage Land, rumors were laid to rest yesterday when Home Point Financial Corp. announced the acquisition of the wholesale division of Platinum Mortgage Inc. This includes both Platinum’s sales team and its’ Madison, AL based operations group. “Platinum has built a strong wholesale lending footprint focused on the customer experience. We are excited about the opportunity to integrate the Platinum team into Home Point’s rapidly growing wholesale business.” said Willie Newman, Home Point Financial President and CEO. “Having been in business for over 20 years, I’ve always been committed to my broker clients. I decided to partner with Home Point, because they share the same level of commitment.” said Terry Clark, CEO of Platinum Mortgage. (The STRATMOR Group served as exclusive advisor to Platinum on the transaction, which closed on April 15^th.)

Brokers were told that, “Platinum will continue to close out all your loans currently in the Platinum pipeline through May 31, 2019. April 15^th was the last day to submit a new/unlocked loan to Platinum. Submit locked loans with Platinum until April 30. Lock all loans that are submitted but NOT locked till April 30. The last day to close a loan in Platinum pipeline will be May 31, 2019.”

Garth Graham, Senior Partner at the STRATMOR Group, observed, “The amazing part about this deal is that they bought the sales, and hired nearly all the people, including Ops. The staff in Alabama did a good job, at a low cost, and thus were very beneficial for the buyer. We helped Platinum with the process, and they had a number of options for sale, and picked Home Point because of the long-time commitment to the channel.”

Colony Bank will be acquiring Planters First Bank’s mortgage business. Jesse Kight, who is currently president of PFB Mortgage, will become SVP of Colony and president of its mortgage division, and Teresa Gainey will become group VP and director of mortgage operations for Colony. PFB Mortgage originated more than $100 million in mortgages last year,

In depository banking land, we had some announcements in recent weeks. FirstBank ($5.1B, TN) will record a $2.5mm restructuring and severance charge and sell its third-party wholesale mortgage origination business to Renasant Bank ($12.9B, MS). In Florida Power Financial CU ($655mm) will acquire TransCapital Bank ($204mm). Up in Illinois Midland States Bank ($5.6B) will acquire HomeStar Bank ($375mm) for about $9.9mm in stock (100%) or 0.95x tangible book. Glacier Bank ($12.1B, MT) will acquire Heritage Bank of Nevada ($830mm, NV) for about $240.7mm in cash (7%) and stock (93%) or 2.39x tangible book.

Capital markets

Remember Quantitative Easing, in its various forms? At its peak the Fed had added $1.8 trillion to its balance sheet. The Fed’s quantitative easing stimulus efforts employed to support the economy, in which the Fed stated it would continue to support the economy by increasing its purchase activity of fixed-income securities per month, split between MBS and US Treasuries caused MBS prices to rally, sending mortgage rates lower and lower.

Those new highs in MBS prices meant that investors were taking on more and more premium risk. Because of the additional prepayment risk, as rates drifted lower, investors were willing to pay more for “call protection,” i.e., loans that don’t pay off early. Many investors prefer to hedge their specified pools with To Be Announced (TBA) securities, so as long as the interest they earn on the long (specified) position is greater than the cost of maintaining the short (TBA) position, it is in their favor to continue to do so.

But now the balance sheet is being allowed to run off, up to $50 billion per month. As the Fed slows and ultimately ends quantitative easing, investors could see the potential for lower dollar prices and higher mortgage rates, unless demand can be found from another source. This will diminish the need for prepayment protection, putting further pressure on call-protected specified pools.

Capital markets folks know that for over 8 years the Fed has been the “trash heap” of the mortgage market: the worst of the worst pools were delivered to them. This means high WAC (weighted average coupons), fast paying, poorly serviced pools ended up on their balance sheet. Fortunately this isn’t a huge issue as it greatly improved liquidity the mortgage market, which helped to elevate rolls. Now that they are no longer the buyer, anything that is in existence currently in the market, or that will be created in the future, will have to go somewhere else, creating less demand for the roll and increasing the demand for high quality pools.

Into the end of 2018 we saw this come to fruition, where rolls faded across almost all coupons and good clean bonds evaporated of the street. While some of this had to do with year-end constraints of dealer balance sheets, one would expect this trend to continue. As a caveat, even if the Fed were to change their stance on balance sheet normalization, there is chatter that this would likely be in the form of purchasing Treasuries rather than mortgages like they had in the past.

Looking at yesterday’s bond market, U.S. Treasuries spent yesterday surrendering their slim gains from Monday, including the 10-year closing at 2.59% despite the release of a worse than expected Industrial Production report for March showed continued weakness in manufacturing output and markets received better than expected economic sentiment readings in Germany and the euro zone. Separately, the People’s Bank of China injected liquidity on Tuesday, representing the first open market operation in 19 sessions. And in news of interest to the mortgage market, homebuilder sentiment rose to a six-month high but is still down versus a year ago as home builders navigate a shortage of construction workers and buildable lots putting upward pressure on housing costs and affordability. Finally, a “significant minority” of ECB policymakers at the last ECB meeting expressed doubt about the likelihood of a rebound in economic activity during the second half of the year.

Today’s domestic calendar kicked off with mortgage applications for the week ending April 12 (headline -3.5%, but purchases hit their highest level in 9 years!). Next up will be international trade for February with the deficit expected to widen, followed by wholesale trade for February. At 2pm, the Fed releases the Beige Book in preparation for the April 30-May 1 FOMC meeting. We also have three Fed speakers scheduled: Philadelphia’s Harker; St. Louis’ Bullard; and New York Fed SVP and Deputy SOMA Manager Logan. We begin today with agency MBS prices down a few ticks (32nds) versus last night’s close and the 10-year yielding 2.60%.

As we head toward Good Friday & Easter, these supposedly appeared in real church bulletins (part 3 of 5):

13. The Rector will preach his farewell message after which the choir will sing: “Break Forth Into Joy.”

14. Irving Benson and Jessie Carter were married on October 24th in the church. So ends a friendship that began in their school days.

15. A bean supper will be held on Tuesday evening in the church hall. Music will follow.

16. At the evening service tonight, the sermon topic will be “What Is Hell?” Come early and listen to our choir practice.

17. Eight new choir robes are currently needed due to the addition of several new members and to the deterioration of some older ones.

18. Scouts are saving aluminum cans, bottles and other items to be recycled. Proceeds will be used to cripple children.

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, “MBS Liquidity: A Real Trooper.” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.

Rob

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are hundreds of mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2019 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Things aren’t always what they seem. Does the mainstream press, or politicians, think about how about how much money it takes to attract top talent to senior roles at top mortgage companies? Elizabeth Warren has led a new proposal to “Respect the Caps.” Stay tuned, as taking Fannie’s president, now at $4.2 million, and Freddie’s, now at $3.85 million, under $600k a year, would be “interesting.” And lots of Agency staff make much more than $600k, as do a scattering of individual originators around the country. We are reminded that no politician wants to see anyone make more than they do. (Speaking of comp, if you want to register for STRATMOR’s Compensation Connection Study you have until April 30.)

Employment

After surveying over 726,000 employees, Cornerstone Home Lending joins the ranks of top Fortune 500 companies around the US to be recognized as a 2019 Best Workplace by FORTUNE Magazine. Marc Laird, CEO of Cornerstone, says the key to the company’s success is sticking to its core conviction of lending with a servant’s heart. It’s that servant leadership model that enables the company to nurture its team for continued growth. Cornerstone is routinely recognized for its unique and successful culture. In addition, Cornerstone has also been named Best Workplace for Diversity, Best Workplace in Texas, Best Workplace for Women, and Best Workplace for Financial Services and Insurance. If you’re in this business to make a positive difference in people’s lives and want to work alongside the best mortgage professionals in the industry, reach out to Todd Sanguras.

Thrive Mortgage is hosting its national “Virtual Lunch & Learn” for business partners Thursday. This 90-minute webinar will focus on helping agents “S.T.A.N.D. out” with credit knowledge for clients. “The ‘H’ in Thrive stands for home-ownership, the very core of Thrive’s existence” stated Randell Gillespie, National Sales Director. “Today’s business partners and clients want to know they can trust their lender for superior credit knowledge that insures the best loan option at the best value, and stick with them until that is possible” he added. Thrive recently rolled out their Thrive4Homeinitiative as a buyer incubation process to further their commitment to responsible and successful home ownership. Thrive boasts one of the most diverse mortgage product lines complimented with the most advanced operational systems for speed and customer experience, making home ownership come faster and more successfully for more clients. Click here for information on joining Thrive Mortgage.

Lender products & services

When it comes to strengthening a loan officer’s productivity, nothing is more important than communication and knowing the best time to support customers during their home buying journey. Forget meaningless weekly calls to leads and pre-approved buyers –provide the support they need when they need it most. The HomeScout® lead and conversion technology platform not only delivers consumers 100% MLS listing data but its buyer reporting interface provides timely buyer insights. Plus, communication is easy with text, email or a voice call directly from the app. Don’t lose track of clients by letting them home or rate shop on public search sites where they can be sold to your competition. Take control of more transactions by introducing buyers to HomeScout early in the purchase process. For more information see them at the AIME Regional Workshop in Ft. Lauderdale, April 17^th, schedule your one-on-one demo HERE or call 952-831-0623.

If you’re planning to attend the MBA Secondary in New York City, May 19-22, be sure to set up a meeting with the TMS CAREspondent Team. Learn how to increase your margins while holding down costs, as well as managing liquidity during challenging times. If you’d like information on how to handle eNotes, renovation loans and more, experts will be ready to discuss that, too. Reach out to your Correspondent VP or email us to set up a time!

Last week, Total Expert announced its enhanced integration with Blend to revolutionize the digital lending experience. The enhancement allows bi-directional data exchange, empowering loan officers to foster deeper customer relationships by delivering personalized messaging throughout the loan application process. Loan officers leveraging both the Total Expert Marketing Operating System® (MOS) and Blend will have a 360-degree view of the borrower so they can see the exact spot they left off on a loan application, prompting the automatic deployment of relevant messaging to maximize the number of applications that get to closing.

Can you really fit mortgage brokerage in a box? Yes, it’s possible with Motto Mortgage. “Our innovative concept continues to shake up the industry (and rack up awards) as we were recently named one of Entrepreneur magazine’s top new franchise brands in 2019. And this isn’t the first time we’ve been recognized for our fresh approach in helping entrepreneurs own their own businesses. Why? Because our model goes beyond franchise setup support. From a dedicated business support team, to state-of-the-art tech and training, to brand marketing (and everything in-between), Motto Mortgage gives you all the pieces you need to confidently forge your own path as an entrepreneur. Reach out to our team at mottomortgage.com/franchises or call 866.668.8649 to learn more about our network’s growth and see how Motto Mortgage can give you that competitive edge you’ve been searching for.”

Looking for ways to grow your business? Freddie Mac is collaborating with clients to deliver automation and insights that provide a competitive edge. Cut back on documentation and reduce time to close with Loan Product Advisor® automated income and asset assessment capabilities. Save borrowers time and money with ACE appraisal waivers, now available for certain condo unit loans. Grow your condo business with Freddie Mac’s unit-level condo exception tool, Condo Project Advisor^SM. Get greater efficiency with simpler collateral QC and underwriting in Loan Collateral Advisor® Get The Freddie Edge^SM.

If you’re even thinking about investing in coaching, you already know you have the potential to do incredible things. XINNIX wants to be the partner that helps cultivate the greatness inside you. Unlike other mortgage coaching programs, XINNIX Performance Coaching is so much more than just a phone call or annual motivational rally. Its unique combination of Training, Accountability, and Coaching will meet you where you are and take you where you want to be. Whether you are just getting started in your professional development journey or you are looking to increase momentum after a XINNIX training program, Performance Coaching is for you! To learn more about XINNIX Performance Coaching, CLICK HERE!

Vendor & technology bytes

Are you using technology to the benefit of your borrowers? In STRATMOR Group’s 2018 Technology Insight Study, 58 percent of participants said borrower satisfaction is their primary reason for investing in technology. This is welcome news for the mortgage industry, as establishing a customer-centric model has historically created a dynamic environment for forward-thinking and innovation — just ask Apple and Tesla. Knowing where to invest your technology dollars first requires knowing what’s most important to your borrowers, then analyzing which areas will have the greatest impact on customer sentiment. In April MortgageSAT Tip, Mike Seminari suggests three steps mortgage lenders can take to drive a better loan experience for their borrowers using technology. (For more on technology and the borrower experience, be sure to read STRATMOR’s April Insight Report available online Wednesday, April 17.)

Secure Insight announced that it has enhanced and expanded its closing agent fraud risk reporting tool to include information regarding closing agent professional certifications. The Closing Guard™ tool, which contains risk ratings and performance ratings to provide lenders a comprehensive risk profile, is now adding professional credential details to its reports. If a professional has received an ALTA National Title Producer designation (NTP), a National Notary Association Notary Signing Agent (NSA) designation, a Mortgage Bankers Association Certified Mortgage Banker (CMB) designation, and the new My Professional Educator Certified Closing Professional (CCP) designation it will now be reflected on their profile report.

A while back RoundPoint Mortgage Servicing Corp. was selected as a subservicing partner for Reliant Bank. RoundPoint services loans for a variety of community banks, credit unions, private equity firms, and mortgage banks and “is committed to providing a world-class customer experience to borrowers.”

And Pulte Mortgage announced it partnered with Finicity, provider of real-time financial data access and insights, to provide its borrowers with a faster, simpler and more secure way to navigate the home financing process. Pulte Mortgage is a wholly-owned subsidiary of PulteGroup, Inc. (NYSE: PHM) that finances new home construction for customers of Pulte Homes, Centex, Del Webb, DiVosta, and John Wieland Homes and Neighborhoods brands. “Through Finicity’s verification platform, up to 24 months of bank, brokerage and 401k data can now be accessed to confirm assets within minutes, eliminating the need for borrowers to find, copy and scan reams of paper verifications. This can reduce the mortgage origination time by more than a week, giving borrowers more control of the process, without a lot of the hassle.”

Upcoming events and training in April

Join us for National Mortgage Professional Magazine’s complimentary webinar “Why Non-QM Should Be a Part of Your Origination Mix,” on Thursday, April 18 at 12 pm Eastern featuring Moises Bonet, Regional Sales Manager at Angel Oak Mortgage Solutions. You will learn what alternative lending means now and why you shouldn’t ignore non-agency options. Originations are expected to be lower this year overall and the refinance market has declined drastically. Lenders are forced to find new ways to produce volume. The non-agency market continues to thrive despite a decreasing real estate market with growth potential of over $100 billion in annual originations expected. Find out how you can grow your business and help underserved Americans find the mortgage solution that fits their needs for the home of their dreams. Everyone wins!   Register for this complimentary webinar here.

Register for the Buckley Webcast: Developments in VA lending and enforcement today, April 16^th. Buckley attorneys will discuss recent hot topics for VA lenders and servicers, including net tangible benefits to veterans for refinances, loan seasoning requirements, and advertising rules, as well as recent enforcement trends and what to expect next.

Join Freddie Mac for a free webinar on April 17^th that highlights loan transactions, edits and drafting of funds, and helps you prepare for the May 2019 implementation of the investor reporting changes.

With Fannie Mae’s innovative MH Advantage offering, designated manufactured homes (MH) designed with features similar to site-built homes are now eligible for financing terms more consistent with standard conventional loans, such as higher loan-to-value ratios, waived 0.50% LLPA and mortgage insurance and interest rates comparable to site-built homes. Join us for an overview of MH Advantage mortgages to see how our new offering fits into your portfolio. Register today for the April 24 webinar, starting at 2:30 p.m. ET.

The California MBA is hosting its upcoming Mortgage Quality & Compliance Committee (MQAC) webinar titled, “Non-QM Lending Compliance Risks” on April 25 at 11AM PT.

The CFA Society of Los Angeles (CFALA) will be hosting a 2-day boot camp on mortgages and Mortgage-Backed Securities. The sessions will take place at the Society’s offices at 520 S. Grand Ave., Suite 655, in Los Angeles on April 25th and 26th. The cost is $1,000 ($900 for members).

Capital markets

U.S. Treasuries, and Agency MBS, didn’t move much Monday, which is fine for capital markets staff. Potentially news-worthy items (risk appetite, stock market volatility, growth concerns at this last weekend’s IMF meetings, well-received 3-month and 6-month bill auctions, and Treasury Secretary Mnuchin suggesting U.S.-China trade talks are nearing a conclusion) didn’t move the needle much. Chicago Fed President Evans said that inflation is weaker than he would like and that he can see the fed funds rate remaining unchanged through the fall of 2020. Traders reported that MBS volume was well below normal.

In other miscellaneous news, President Trump criticized the Fed’s handling of monetary policy. ECB President Draghi expressed concerns about political pressure threatening independence of central banks. Dr. Mark Calabria was sworn in as FHFA Director, promising the opportunity for reform. S&P affirmed Germany’s ‘AAA’/A-1+’ ratings with consensus of a stable outlook.

Today sees several earnings reports of note, including Bank of America and BlackRock already, before our first economic releases, industrial production, capacity utilization; and factory output for March. Following is the National Association of Homebuilders Housing Market Index for April and the Treasury announcing sizes for Thursday’s 1- and 2-month auction. Dallas President Kaplan is scheduled to speak in New Mexico. We begin today with agency MBS prices slightly worse/down from Monday night and the 10-year yielding 2.57%.

As we head toward Good Friday & Easter, these supposedly appeared in real church bulletins (part 2 of 5):

6. The peacemaking meeting scheduled for today has been cancelled due to a conflict.

7. Remember in prayer the many who are sick of our community. Smile at someone who is hard to love. Say “Hell” to someone who doesn’t care much about you.

8. Don’t let worry kill you off – let the Church help.

9. Miss Charlene Mason sang, “I will not pass this way again,” giving obvious pleasure to the congregation.

10. For those of you who have children and don’t know it, we have a nursery downstairs.

11. Next Thursday there will be tryouts for the choir. They need all the help they can get.

12. Barbara remains in the hospital and needs blood donors for more transfusions. She is also having trouble sleeping and requests tapes of Pastor Jack’s sermons.

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, “MBS Liquidity: A Real Trooper.” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.

Rob

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are hundreds of mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2019 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)