Some questions are difficult to answer. What does the bacon industry have against re-sealable packaging? What is it about certain loan originators who, when rates actually go “up” to 3.25%, think the sky is falling and world ending? Will all the refinance rate jockeys will go back to selling cars? But something that can be answered is, “What does someone in their late 20s or 30s outside of our industry think about home ownership and how do they select a lender? One of the podcasts this week included an interview with insight into exactly that: To listen to the interview with Ariadne Smith, please click here and scroll to 2.23.21. Lenders are also focused on potential changes in the regulatory environment and on the pressure on rates to move higher. Let’s see what readers are saying about both.

Saturday Company Spotlight:  Symmetry Lending provides dedicated focus on delivering Piggyback HELOC solutions to every loan originator’s toolkit.  

 

In 3-5 sentences, describe your company (when was it founded and why, what it does, where recent growth and plans for near-term future growth). 

 

Symmetry was founded in 2018 with a leadership team that brings decades of specialized Piggyback HELOC expertise. This focus is driven by a deep understanding of how a Concurrent or Post-Close Piggyback HELOC can bring unique solutions to borrowers, loan officers, and their real estate agent referral sources. As a perfect complement to these solutions, Symmetry commits to a unique and industry-leading experience of Service, Speed, and Simplicity.

 

In less than 3 years, Symmetry has expanded its offering across 36 states with operational offices throughout the country facilitating nearly $3 billion in Piggyback HELOCs. Symmetry’s team of Area Managers is dedicated to providing education and support to mortgage origination professionals regarding the benefits of structuring their agency or jumbo 1^st mortgage with a Symmetry Piggyback HELOC.

 

Tell us how your company maintains its culture in the office, or in a work-from-home environment if applicable. 

 

Like many others in the industry, Symmetry transitioned to a remote working environment in March 2020. The team has nearly doubled since then, testing the will and dedication of our leaders, who exceeded all expectations by onboarding and training almost 100 new team members. Our culture of passion and care enabled these leaders to accomplish all of this without slipping on our commitment to Service, Speed, and Simplicity. To the credit of these team members, Symmetry is proud to have never missed a beat and continued to offer Piggyback HELOCs through the early-COVID turbulence.

 

Since inception, our company has prioritized a solutions-oriented experience that is so much more than an assembly line of HELOCs. Every submission is treated with the understanding that it is the most important file on somebody’s desk, whether that be the loan officer, real estate agent, or, of course, the borrower. As such, every submission deserves the highest priority of care and attention to detail.

 

What things you are most proud of that don’t have to do with sales? 

 

Symmetry is so proud of, and thankful for, the many friends, colleagues, and partners that have supported us with the launch and growth of this special company. While “perfect” is hardly a word that is often associated with the mortgage industry, Symmetry embraces a “pursuit of perfection” effort that keeps us focused on over delivering for our mortgage origination and capital markets partners. With a mindset that “businesses don’t make decisions, people do”, our entire team takes great pride in our collective and individual reputations and relationships, internally and externally.

 

Fun fact about Symmetry Lending

 

Prior to Symmetry’s existence, most of its leadership team established a close working relationship with each other many years earlier through various loan origination, servicing, and capital markets transactions across multiple asset classes at multiple organizations. These long-standing relationships are fundamental to our underlying culture.

Regulatory reform

Quyen Truong, a partner at Stroock & Stroock & Lavan (in Washington, D.C.) and former Assistant Director of the Consumer Financial Protection Bureau (CFPB) wrote with some thoughts on the Biden administration’s new developments in regulatory/enforcement activities.

“Consumer financial protection is a top regulatory priority for the Biden administration, heightened by COVID-19 financial hardship and its outsized impact on vulnerable populations. A crucial first step for regulators is analyzing potential actions to address the Trump Administration’s rollback in key areas where implementation of the Dodd-Frank Act and other responses to the 2008-2009 crisis had built up a demanding new regulatory framework.

Another is scrutiny of industry interactions with consumers during the pandemic including, specifically, in the area of loan servicing, where supervision and enforcement efforts will focus on mortgage forbearance and foreclosure, as well as fair lending and disparate impact. For instance, consumer communications (from disclosures regarding forbearance arrangements, to implementation management and credit reporting, to handling of consumer disputes) will be the subject of close review.

“Given the importance of consumer financial protection to the Biden regulatory reform agenda, the past month has seen rapid change, most prominently at the CFPB. Changing the CFPB’s leadership was a Day 1 priority for President Biden, and the Bureau’s Acting Director Dave Uejo immediately drove realignment of the agency’s approach. Whereas former Director Kathy Kraninger had announced a lenient approach toward financial institutions during the pandemic due to the operational challenges they face, the new CFPB is ramping up supervisory and enforcement scrutiny of institutions’ interactions with consumers and small businesses struggling with COVID-19 financial hardship.

“Some practices which the Kranginger-era CPFB noted but did not strike will become potential subjects for supervisory Matters Requiring Attention, if not enforcement action. The CFPB is undertaking a major hiring drive to beef up its legal team across the board, including in supervision, enforcement, rulemaking, as well legal staff to prepare and defend against likely challenges to its actions. In the face of these regulatory priorities, companies likewise must place top priority on review of their practices and take rapid action to tighten their compliance management systems and, if necessary, modify their practices and consider remedial steps to mitigate liability risks.” Thank you, Quyen!

Rates go up, rates go down

Mortgage rates are like the weather: you can talk about the subject and understand it, but you can’t do anything about it. It is important for lenders to know what’s going on out there, and for originators to keep things in perspective. Consumer spending has increased, COVID cases appear, hopefully, on the downward path, and the housing market continues to be strong. Economists everywhere are talking about an economic recovery and possible inflation. The low rates have been brought on by the slow economy and the Fed stepping in with dramatic quantitative easing. Lenders, MLOs, and borrowers have benefitted. Was a lender out there thinking mortgage rates would go to zero percent? As the pandemic (hopefully) subsides and the U.S. economy gains strength over the months, we can expect the Fed to eventually reduce its daily purchases of Treasuries and Agency mortgage-backed securities. Still, rates are low.

None of us can influence the direction of mortgage rates. But smart lenders are controlling their response, and how they and their MLOs react. For example, the CEO of Bay Equity, Brett McGovern, reminded his staff, “We are coming off a time with unexpected low rates. They are still low, despite having gone up in recent weeks. Due to the pandemic our government is incurring huge deficit spending, with trillions of dollars more of stimulus coming. We have a growing Federal Reserve balance sheet as the Fed continues to purchase Treasury and MBS daily. The Federal Reserve has made it clear it can change course quickly based on economic conditions. We can do the same. Even though rates have moved higher, I still see a favorable environment for all or most of 2021 with rates still historically low. But we must be aware of opposing pressures and be ready for change. We continue to execute a disciplined, steady approach to protecting our locked pipeline from interest rate moves.

 

“No one has a crystal ball, and anyone who says they do is misleading you. Yes, the current move higher in rates will affect the industry’s volume. What should LOs be thinking about as we head into rate territory we haven’t been in since early 2020? My advice remains the same: Control what you can control, work hard, and don’t forget your referral base and purchase business as a fallback if rates stay here or move higher.”

From Southern California, Don Schmidt sent, “I’ve been reading your newsletter for years but have never sent a comment. I totally agree with your comment about interest rates: What goes down must come up. I’m a little more cautious about the ‘when we’re out of this,’ but it’s coming. It’s my opinion that real estate is going to get a double whammy. I think once people are vaccinated and feel more comfortable to travel, they are going to say, ‘screw it,’ rates are climbing, everything is overpriced, I’m tired of being out bid on this, time is no longer of the essence, I want to see my family, I’m done with this until next year. The majority of people that have relocated out of major, high density areas are probably finished with their purchases. On top of all that, real estate is way overdue for a correction. When this market turns, it’s going to happen in a matter of weeks. I think we’ve seen the top of the market.”

Industry vet James Johnson has some thoughts on interest rates and general economic conditions. “The stock market has been trading at all-time highs based on a powerful economic recovery and ‘zero rates’ forever. The Fed is printing money and monetizing our debt like never before. If you believe that inflation is always a monetary event, then you have to be concerned with all of the money we are printing.

“But even in light of an apparent upcoming economic rebound, the Federal Reserve is holding onto negative real interest rates (nominal rates lower than the inflation rate). Every time things get a bit dicey the Fed talks down any possible bad outcomes. Are market investors onto this, and have they thrown the ‘BS flag’ at the Fed?

“Investors are obviously looking at a huge economic boom. Maybe it will only be temporary, 6-9 months, but most agree it is coming. At the same time it seems as if the Fed is saying, ‘Look, you investors should be happy to accept our negative rate policies. Your return will be less than the rate of inflation, and you should be happy with that.’

“But why? No wonder other assets, like stocks, housing, etc., are trading at bubble-like levels. Thursday the market threw the ‘BS flag.’ Investors seemed to say, ‘If we are going to buy your Treasury bonds, we want some sort of real return.’ I do not see the pressure relenting on this.

“Many investors have worries about asset prices and maybe bubbles forming. The Fed must talk that down, and it continues to do so. But is its pitch starting to lose credibility? There is a lot of risk for real inflation. This next round of stimulus will be 3-4 times the lost pandemic income to consumers. Of course that is inflationary. But maybe we are at the point where the Fed will not be successful in talking down rates. It is a total fabrication.

“If I am right about this, there is just more pressure on rates going forward. It is looking like a reprieve Friday, but the pressure will remain. Over time you have to think this rate pressure will continue until we get to some real rate of return for Treasuries.

“The fear for investors is that rates go higher than the Fed is willing to tolerate, and the Federal Open Market Committee doubles its monthly QE purchases to $200-250 billion. That would bring rates down but balloon the Fed’s balance sheet to $10 trillion. At that level, the NY Fed would be buying an uncomfortable percentage of current Agency MBS production and each new Treasury issue. The Fed seems unwilling to do that right now, but I can’t help but wonder what the tipping point could be? In the meantime, maybe we are looking at a boycott by bond investors, as they wait for a positive real rate. Those that have owned the 30-year Treasury this year have been clobbered.”

James’ note wrapped up with, “We are most likely looking at one of the greatest economic booms in the last 100 years. Yet the Fed is demanding that bond investors settle for a negative real yield on Treasury debt. Is this revenge of the bond vigilantes?”

A group of country friends from the Cottonwood Baptist Church wanted to get together on a regular basis to socialize, and play games. The lady of the house was to prepare the meal.
When it ca me time for Al and Janet to be the hosts, Janet wanted to outdo all the others.  Janet decided to have mushroom-smothered steak, but mushrooms are expensive.  She then told her husband, “No mushrooms, they are too high.”
He said, “Why don’t you go down in the pasture and pick some of those mushrooms?  There are plenty in the creek bed.”
She said, “No, some wild mushrooms are poison.”
He said, “Well, I see varmints eating them and they’re OK.”
So, Janet decided to give it a try. She picked a bunch, washed, sliced, and diced them for her smothered steak. Then she went out on the back porch and gave Ol’ Spot (the yard dog) a double handful. Ol’ Spot ate every bite. All morning long, Janet watched Ol’ Spot and the wild mushrooms didn’t seem to affect him, so she decided to use them.
The meal was a great success, and Janet even hired a helper lady from town to help her serve. She had on a white apron and a fancy little cap on her head.
After everyone had finished, they relaxed, socialized, and played Phase 10 and Mexican Train dominoes.  About then, the helper lady from town, came in and whispered in Janet’s ear, “Mrs. Williams, Ol’ Spot just died.”
Janet went into hysterics, and then called the doctor to explain what happened.
The doctor said, “That’s bad, but I think we can take care of it. I will call for an ambulance and I will be there as quick as possible. We’ll give everyone enemas and we will pump out everyone’s stomach. Everything will be fine – just keep them calm.”
Soon they could hear the siren as the ambulance was coming down the road. The EMT’s and the doctor had suitcases, syringes, and a stomach pump.
One by one, they took each person into the bathroom, gave them an enema, and pumped out their stomach. After the last one was finished, the doctor came out and said, “I think everything will be fine now.” Then he left.
They were all looking pretty weak sitting around the living room, and about this time, the helper lady came in and said, “You know, that fellow that ran over Ol’ Spot never even stopped.”

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, “Servicing: A Valuable Asset”. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2021 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

 

Huh? Rates don’t continually go down and then stay there for an indefinite period of time? No, they don’t. There’s this opinion piece in the Wall Street Journal: “We’ll Have Herd Immunity by April. COVID cases have dropped 77% in six weeks. Experts should level with the public about the good news.” Every lender will tell a client that good economic news is bad for lower rates. We return to the question of, “What’s a lender’s cost to create a servicing asset worth a point?” Yes, yesterday’s rate move was dramatic (we’re already seeing rates come back down slightly this morning, as you’d expect), but lenders are already reminding their production force about monetizing their own database. Is the servicer staying “front of mind” for clients? Lenders are already changing tactics. And change is possible. For example, I got over my addiction to chocolate, marshmallows, and nuts. I won’t lie, it was a rocky road. (To listen to the audio version of today’s commentary, including an interview with Spruce’s CEO Patrick Burns, please click here.)

Employment and transitions

“At Bay Equity Home Loans we embrace a culture of sharing. One great example: our Bay Equity Tools and Best Practices Playbook. We collaborate with our top performers to identify and implement needle moving business plans and ideas. We’re obsessed with sharing best practices to bring value and cutting-edge productivity tools to help all of our LO’s get to the next level. As an example, one of our top sales leaders shared a strategy that helped him fund $100m each year for 10 consecutive years. We embraced and enhanced that plan to create a best practice for all of our LOs. At Bay Equity every team has the Playbook to help each LO generate leads and efficiencies. Would you like to learn more about Bay Equity and our Playbook? Contact Sean Wilson (415-622-5768) for more information.”

Sun West Mortgage Company, [NMLS 3277] a leading full-service national mortgage lender, is excited to announce the expansion of its west coast operations. Lanny Setka recently joined Sun West Mortgage Company, Inc. as Branch Manager for the Buena Park, CA branch. With more than 25 years of experience as a loan originator, Lanny uses his strengths in financial planning and expertise with the mortgage market to guide his clients in the right direction that is specifically tailored for them. He believes that client relationships are the top priority and dedicates his time to relationship building. With confidence and an extensive history of expertise, Lanny is a reliable asset to the mortgage industry. For more information on Sun West, please contact Managing Director, Leif Boyd or SVP, Business Development, Peter Schwartz at 916-770-0053. For Sun West Mortgage Company, Inc. licensing information and disclosures, please click here. 

“Shamrock Home Loans welcomes Jay Arana, Jay Kiel, and Joseph Drew in Connecticut and Maine. Check out why Joseph joined Shamrock by watching this video produced by our Video – Ad team. ‘We are expanding aggressively throughout the state of Florida, the New England states and New York, seeking Area Managers, Producing Branch Managers and Loan Officers in North and South Carolina as well,’ says Rick Roque, VP of Shamrock. With a 31-year track record of serving consumers across the East Coast, Shamrock is seeking sales leaders who want to leverage our Videography and Creative Design teams to grow. Agency direct, no overlays, sales culture and an aggressive marketing approach to support Realtors and borrowers, and next generation technology to make the loan process easy; email [email protected] to learn more; see our TV Ad made for Branch Managers and Loan Officers explaining our core purpose.”

“Homeowners Financial Group is proud to showcase our successful launch of our new game changing platform, HFG Go, which is an intuitive mobile application process centered around automation and communication between the client and loan officer.  Officer commented, “Borrowers have an easy to use and secure way to interact with their loan from their technology platform of choice.” Features such as QuickApply™ easily verify identity and automatically obtains personal and employment information, liabilities, and real estate owned, and includes integrations with financial institutions which saves valuable time for the client and ensures accuracy. Bill Rogers, CEO, states, “As we continue to grow, Homeowners remains committed to implementing cutting edge technology like HFG Go across all facets of our organization.” If you are interested in learning more about Homeowners Financial Group, please contact Ron Stowers or Nelson De Leon.”

Who oversees Deephaven? Pretium. Pretium is a specialized investment management company focused on real estate, mortgage finance, and corporate credit that holds more than $20 billion in assets, which announced that John Keratsis will succeed Matt Nichols as President and CEO of its Deephaven Mortgage platform. Congratulations to John!

Broker and lender products and services

“Orion Lending and URLA: In the event your origination software is not yet updated with the new URLA or MISMO 3.4 requirements, fear not! Orion Lending’s STAR Portal will continue to accept BOTH FNMA 3.2 upload files along with the new MISMO 3.4. Knowing this transition may take time for our broker partners to adopt, our proprietary STAR Portal will help you convert your 3.2 file and 1003 to the new Uniform Residential Loan Application seamlessly at time of submission. Orion Lending is your partner and will continue provide technology to promote your success. Not approved? Reach out to [email protected] for additional information and same day broker approval.”

Congratulations to LoanNEX on receiving the 2021 Innovations Award from Progress In Lending. LoanNEX is a next gen product, pricing, and eligibility platform with an expertise in the growing Non-Agency market. What makes LoanNEX different is dynamic data capture addressing non-agency specifics, Q&A for soft guidelines that can make or break a deal, plus a built-in collaboration tool to work directly with your AE. LoanNEX is a self-service tool providing originators easy discovery and navigation to the best borrower options, right at their fingertips. LoanNEX’s newest service allows Brokers to discover current lender product and pricing options through their Broker Marketplace. Start a 90-Day FREE trial or visit Scenario Tester to see investors and programs available. To learn more, LoanNEX is hosting a webinar on March 3^rd, covering the latest market trends and will show all participants the value of the tool for growth in 2021. Click here to register now.

Luxury Mortgage Corp.^® (“Luxury”), a leader in Non-QM lending, has announced significant enhancements to its Simple Access® Non-QM suite of products. Notable highlights for all program types include: Removal of cash out limit up to 65% LTV, reintroduction of a 40-year term option with a max LTV of 80%, Loan amounts up to $3.5MM on purchase/rate term and $2.5MM on cash out and Max LTV’s expanded to 90% with FICOs down to 660!!!! Additionally, Luxury will be implementing aggressive base pricing improvements across all product types!! Their elite team of seasoned experts will help you navigate through even the most complex scenarios. Click here to inquire about becoming an approved wholesale broker or correspondent seller.

Are you ever surprised by the relation of two seemingly unrelated things? For example, advertising and the discovery of Greenland are linked through Eric the Red, who deliberately gave the land a more appealing name than “Iceland” in order to lure potential settlers. A relation that should not surprise you is servicing qc and borrower retention. For borrowers, the majority of their mortgage experience is related to servicing and with roughly 30% of borrowers choosing a lender based on having an existing relationship with the company, good and compliant servicing plays a big part in that decision. One easy way to improve the servicing experience for borrowers is through servicing qc. By ensuring your servicing efforts are compliant, you’re passing fewer issues on to the borrower. Contact Subsequent QC today to make sure your servicing qc is helping provide your borrowers with the best servicing experience possible.

Humans have been captivated by the idea of predicting the future for centuries untold (remember Miss Cleo of late-90s TV fame?). While science has yet to prove the existence of psychic abilities like telepathy and clairvoyance, what if I told you, I knew a way to predict the future that doesn’t involve the paranormal? Sales Boomerang, the #1 automated borrower intelligence and retention platform, predicts when someone in your database is ready for a loan. Ryan Kube, EVP of Production, Annie Mac notes “Being able to get to the borrower before they even know they need a loan is so important! For top performers, more than 65% of their business is from their own database. One of my top performing LOs has said that 30% of his loans come from Sales Boomerang’s Borrower Intelligence.” Find out what the future holds for you and your borrowers.

Finance of America Mortgage is always pushing the envelope of product offerings and innovating new options for our borrowers to gain more purchasing power. FAM is excited to announce the relaunch of our Two-X Flex Suite of mortgage solutions for the unconventional borrower. These proprietary loan offerings allow borrowers to qualify based on factors outside of standard loan requirements. The Two-X Flex Suite includes the following options: Two-X Flex Full Doc, a product that qualifies based on expanded guidelines. Two-X Flex Bank, a great option for self-employed borrowers allowing them to qualify on 12 or 24 months of bank statement deposits. Two-X Flex Asset is an excellent option for borrowers wishing to qualify using their assets as income with no employment required or combine with Two-X Flex Full Doc to decrease their qualifying ratios. Finally, Two-X Flex 1 Year allows for only one year of income documentation to qualify. Contact us today at FOAmortgage.com to learn more!

Are you ready to continue your digital lending momentum into 2021? At Forward, Blend’s virtual summit taking place May 18-20, you can gather with innovators and industry leaders to learn about the technology trends shaping the future of lending. You’ll hear from expert speakers, discover Blend success stories, and even have the opportunity to become a Digital Lending Platform expert with post-conference training. Register now.

What makes one bulk program different, or better, than another… Besides the bids? At Plaza Home Mortgage, the answer is: competitive bids + insurance to protect correspondents against buybacks. Correspondents selling to Plaza’s National Correspondent Program are automatically covered by Plaza’s unique Certified Loan Program, which protects sellers against a range of underwriting defects, even COVID-19 related instances. Looking for more from a correspondent lender? Look to Plaza National Correspondent at [email protected].

Capital markets

Huh? You don’t own a crystal ball and didn’t lock your borrower earlier this week? Unfortunately, I don’t own one either, so once the price wars begin in the mortgage space, I may need to find a new career. I was thinking being a rapper would be fun. What do you think of this rhyme? “When this pandemic ends, I’m gonna spend!” Apparently, many others are thinking the same thing, and that is why mortgage rates went up yesterday.

Investors are okay if the move is driven by inflationary expectations, a “technical” move. But many believe rates have moved too far too fast. Will the Federal Reserve move from “being comfortable” with rates going up to “monitoring” rates going up? Due to the pandemic our government is incurring huge deficit spending, with trillions of dollars more of stimulus coming. Someone has to pay for that. Every day we have a growing Federal Reserve balance sheet as the New York Fed continues to purchase Treasury and MBS. Fortunately, as older, higher interest rate debt matures, it is being refinanced by our government at lower rates, and this lower debt service is delaying the impact of the government spending. But the markets are certainly looking ahead to the pent-up spending that will happen as the pandemic (hopefully) winds down.

Yet the market is realizing that ultimately someone has to pay for it, traditionally in the form of higher taxes. On top of this, inflation concerns are emerging, especially as investors look ahead to a potentially booming economy as the pandemic winds down. The Federal Reserve has made it clear that it can change course quickly based on economic conditions.

The yield on the “benchmark” risk free U.S. 10-year T-note hit 1.61 percent yesterday. The bond market experienced a relentless sell off with the 5-year and 10-year Treasury notes rising +19 bps and +13 bps, respectively, largely due to inflation fears. We also saw awful demand on the $62 billion 7-year Treasury note auction. The selloff wasn’t limited to just the U.S., with global bonds experiencing the same fate as equities were routed in the risk-off trade. Both Atlanta Fed President Bostic and St. Louis Fed President Bullard opined on the move, but neither was concerned about rising bond yields, with Mr. Bullard saying that the move is “probably a good sign,” and Mr. Bostic downplaying the need for the central bank to get involved.

I got my hands on one of MCT’s client exclusive MarketFlash updates yesterday and found useful recommendations for the deteriorating market, and the new UM30 2.5 market coupon. Lenders should keep up with rising optimal hedge coverage due to rising pull-through, decreasing borrower rate attractiveness, and increasing weighted-average stage in pipelines as lock volume falls. With loans out of the money, be sure to enforce lock policies and prohibit free extensions. Take advantage of AOTs for their cash flow benefits. Watch out for possible decreases in Fed purchases of the 1.5 coupon, and avoid cross hedging that production with TBAs in the 2 coupon. (While live MarketFlash updates like this are exclusive to MCT clients, you can still join the MCT newsletter for market analysis and timely webinars.)

The Primary Mortgage Market Survey from Freddie Mac for the week ending February 25 saw the 30-year and 15-year fixed rates jumping 16 bps and 13 bps versus the prior week to 2.97 percent and 2.34 percent, respectively. The Mortgage News Daily 30-year rate jumped 13 bps yesterday alone to 3.27 percent. Where’s that dang crystal ball?

Today’s economic calendar is already underway with personal income and spending for January (+10.0 percent, +2.4 percent, both strong), and the trade deficit ($83.7 billion). We’ve also received Core PCE Prices (+.3 percent: no major inflation). Black Knight reported that the number of mortgages in active forbearance rose for the second week in a row, climbing by 21k since last Tuesday, pushing the total of those in active forbearance back up above 2.7 million, or 5.1 percent of all mortgage-holders. Later this morning brings February Chicago PMI and final February Michigan sentiment. Today’s month-end MBS purchase session sees the Desk conducting the last two operations on the current schedule totaling up to $5.3 billion. In the afternoon, the NY Fed Desk will release a new schedule covering the March 1 to 11 period that is expected to total $56 billion or $6.2 billion per day. We begin the day with Agency MBS prices better/up by .375-.50 versus Thursday night and the 10-year yielding 1.46 after closing yesterday at 1.52 percent.

Riddle of the Day:
Michael J. Fox has a small one.

Arnold Schwarzenegger has a big one.
Madonna doesn’t have one.
The Pope has one but doesn’t use it.
Clinton used his all the time.
Bush is one.
Mickey Mouse has an unusual one.
Liberace never used his on women.
Jerry Seinfeld is very, very proud of his.
Cher claims that she took on 3.
We never saw Lucy use Desi’s.

What is it?

The answer is: ‘A Last Name.’ Now get back to work on this last business day of February.

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, “Servicing: A Valuable Asset”. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2021 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

As hope for a recovery drawing nearer helps push rates higher, Carol K. writes, “I hate it when people ask me what I do for fun because there is no classy way to say, ‘Binge drink.’” The approaching 1003 form mandatory changes may cause some people to turn to drink… Is it going to “March Madness” at your shop with the new URLA? (The commentary has plenty of URLA and processing notes below.) Plenty of lenders who are “farther along technology curves” than others seem to be hiring lots of developers to accommodate change like incorporating a new application. But AEs and MLOs need to be aware of and use digital tools that they already have. DU and LP, for example, are great tools and in nearly every lender. Heck, I hear a lot about senior management reminding staff about the benefits of correctly filling out forms: it is important but overlooked. I’ve started telling everyone about the benefits of eating dried grapes. It’s all about raisin awareness! (To listen to the audio version of today’s commentary, please click here.)

Employment, hiring, and promotions

“Are you looking to join a fast-growing financial firm that is making a positive impact on the lives of millions of homeowners? Do you want to work with a diverse and dynamic group of individuals while taking home a highly competitive salary? (Oh, and did we mention all from the comfort of your home?) Great news: Lakeview Loan Servicing, the largest Ginnie Mae servicer and fourth largest servicer in the country, is hiring. Competitive compensation, signing bonuses, and benefits starting day one of employment are just a few of the many outstanding perks of joining the Lakeview team. (Read our employee testimonials here!) Even better, you’ll have the opportunity to make a direct and positive impact on more than 1.8 million customers across the country. Open positions include Underwriters, Processors, Closers, and Wholesale AEs in all regions. Head to our career page and read more about our openings, benefits, and company culture. We can’t wait to meet you!”

“First Option Mortgage, a national residential mortgage lender is pleased to announce the newest member of our team, ARLA., an Automated Response Loan Assistant built into FOM’s new website. Alvin Shah, managing partner at First Option stated “ARLA will assist new customers in their mortgage journey, while also helping existing customers connect with their loan officer. ARLA’s email to the loan officer will alert them of their customer’s request. This ensures greater engagement between the loan officer and the consumer.” With the new website, adding AI technology was the logical way to go. But FOM wanted to go beyond the normal Q&A that bots are limited to. National Sales Manager Fobby Naghmi said “ARLA will become an integral part of providing a higher level of service to not only the FOM clients, but to the FOM employees in multiple areas.” To discover more about First Option Mortgage, contact Fobby.”

“Caliber Home Loans is proud to employ a diverse group of VA-certified loan consultants and serve a broad military community. Bryan Bergjans, SVP, National Director of Military & Veteran Lending, was the featured guest of an important virtual webinar. “Ask the Expert: Lending to the Military and Veteran Community,” focused on a variety of subjects about the VA loan industry. One important topic was building trust within the military and veteran community. Bergjans noted that authenticity was key in developing strong relationships with military service members. That means hiring more retired military and military spouses who understand what it’s like transitioning back into civilian life. Along with educating the community on facts and details involving the VA loan process, these actions are imperative in sustaining a quality relationship with the community. Explore our redesigned military website and to be immediately considered for Operations or Sales positions, email Jonathan Stanley or Brian Miller.”

Seroka, a brand development, digital and strategic communications agency, announced that John Seroka has been elected to the role of President.

Credit Plus, a leading provider of credit data and verification services, announced the executive promotions of Mike Hall to Chief Operating Officer, Don Clement to EVP, Marketing, Michael Crockett to EVP, Data Solutions, Judy Ryan to EVP, Sales, East, and Mike Allen to EVP, Sales, West.

Mortgage Connect LP has appointed Capital Markets veteran Brian Frye to the role of EVP, Servicing and Capital Markets Strategy. Brian’s headed up its Capital Markets division which provides title, collateral, and transaction support services that cater to the demanding needs of institutional investors, banks, and GSEs that trade and securitize whole loans in the secondary market.

Quontic, the adaptive digital bank, has hired Craig Schimelman as VP, National Wholesale Sales Manager to lead the wholesale mortgage division to grow the Non-QM market. Quontic’s wholesale mortgage funding has increased 600% since September 2020. Craig will also be responsible for hiring Regional Sales Managers and Wholesale AEs to drive the Non-QM market.

Lender services and products

I continue to hear how much of a pain employment and income verifications are becoming for lenders as they try to accelerate closings. That’s why Truework has become such a savior for so many of you. Truework automates income and employment verifications for loans, shortening time to close. I hear more and more lending teams using Truework in their verification work streams and I get it- it’s absurdly efficient and more cost-effective with higher volumes- especially now that their coverage has grown to over 35 million employees. Truework should be a go-to tool for any loan processor out there as verifications are ridiculously fast and Truework’s level of service is a breath of fresh air: the team actually cares about helping you close more business. Imagine that. Get started on Truework today. VOE/VOI done fast and accurate.

“Propelling from our annual Kick Off meeting (virtual this year), the Mr. Cooper Correspondent team is more energized than ever! The meeting theme “Know to Grow” illustrates our goals for 2021. Focused on mutual growth and partnership with our clients, we’re determined to Know Our Clients better than ever! We’re dedicated to making sure our clients Know Our Business and Solutions – Delegated, Non-Delegated, proven Operational Excellence, Flexible Delivery Options (Mandatory, Bulk, Best Efforts, Hybrid AOT, & More!), Co-issue, and Capital Markets Solutions. Through dedicated relationships, we’ll ensure the industry and our business partners Know Mr. Cooper fully to understand our expertise and how to leverage the value of working with Mr. Cooper, a Top 10 Correspondent investor and premier leader in the Co-issue space. Through this awareness, our clients will GROW and Mr. Cooper will GROW! If YOU want to KNOW more and are ready to GROW, please reach out to your Regional Sales team!”

The demand for high quality, experienced processing and underwriting talent has exploded in the past year, leaving lenders struggling to recruit and competing with a new high mark for salaries. Luckily for community lenders, high quality onshore outsourced processing and underwriting services (like Maxwell’s Fulfillment Platform) are accessible like never before. The Maxwell Fulfillment Platform enables lenders to scale their business with access to tech-empowered teams of experienced onshore processors and underwriters at offshore prices. The result is lending teams that are able to grow beyond the talent restrictions of their local markets. To learn more about the Maxwell Fulfillment Platform, schedule a call today or click here to see how this service can meet your underwriting and processing needs.

Are you experiencing prolonged payroll cycles and commission calculation errors? Are your incentive compensation plans multiplying like rabbits? If the tried-and-true spreadsheet system that worked for years has begun to hold you back, you’re not alone. These were the exact pain points Silverton Mortgage experienced before making the switch to CompenSafe by LBA Ware. Download this case study to see what makes CompenSafe the most efficient and modern way to manage incentive compensation.

Does your year ahead look like Easy Street or Nightmare on Elm Street? Now that the forbearance moratorium has been extended, the risk of a default wave is heightened. Borrowers who need the extension are likely facing an uphill financial challenge and servicers unprepared to manage delinquent portfolios could be at risk once the moratorium ends. Computershare Loan Services (CLS) is a leading servicer with predictive analytics and borrower engagement solutions that help clients get ahead of default loan scenarios. CLS’ deep roots in default servicing support both clients and homeowners, at every step of the loan lifecycle. Prepare for the road ahead. Have a conversation with CLS about your servicing portfolio and how to best manage your EBOs, delinquencies, and defaults.

Stewart Title has continued to invest in innovative technology and scale through its acquisition of Pro Teck Valuation Intelligence. Pro Teck’s VALIDITY guided homeowner inspection app, originally developed to allow safe inspections during the health crisis, can provide faster turn times and a more in-depth inspection for products that typically rely on exterior Property Condition Reports. Contact us to learn about pairing a VALIDITY inspection with Pro Teck’s ValueFocus, CollateralPoint, Evaluation, or Desktop Appraisal for your home equity, servicing, or capital markets needs. Pair it with our automatic Product Selection Waterfall based on your risk criteria to match the most efficient product for your need.

Has your volume reached a point where it is time to make the move from best efforts to mandatory loan sales? Maybe you’ve already moved to mandatory and are looking for even more pickup and ways to mitigate risk? Join MCT®’s Moving to Mandatory Loan Sale Delivery webinar on March 10^th at 10AM PT to learn how mandatory loan sales is helping lenders improve profitability while reducing risk. The webinar will also review current market trends and operational changes needed to make the switch to mandatory loan sales. As the industry leader in pull-through analytics and best execution with the highest staff-to-client ratio, lenders of every size trust MCT to manage risk and optimize profitability in their mortgage pipeline. To learn how MCT is helping clients of every size achieve their goals, try MCT’s new mortgage profitability calculator.

Big news out of FormFree: the company announced its expanded AccountChek 3n1’s VOIE network to cover more than 100 million working Americans. By partnering with 31 of the nation’s top payroll providers, FormFree can electronically verify income and employment via direct-source paystub data for 85% of Americans paid via payroll service. Guild Mortgage’s David Battany and Roostify’s Rajesh Bhat heralded the announcement as a welcome answer to the industry’s desire for more expansive VOIE coverage at a fair price point. If you’re one of the 3,000 lenders in the FormFree network, contact Gregg Palmer to get 3n1 turned on today.

Technology and processing changes

While COVID devastated many industries, it had the opposite effect on ours. Lenders have ramped up with more people and pushed harder on technology, buying and installing at a maddening pace. Even though technology deployment is up, according to a new article by STRATMOR Senior Partner Garth Graham adoption by users has not kept pace. “Only about half of the eligible users, internal and consumer, are adopting the tools they are provided,” says Graham. “My message to lenders and vendors? You can roll out new tools, but you have to drive adoption of those tools to have the digital technology success you want.” In his article in the February Insights Report, “Digital Rising: The Mortgage World According to Garth,” Graham draws on data from STRATMOR’s 2020 Technology Insight^® Study and other STRATMOR data sources to show the adoption gap in the industry’s digital journey. Don’t miss the new issue of STRATMOR’s Insights Report.

FAMC revised the system implementation date communicated in Correspondent National Bulletin 2021-05. FAMC’s system began accepting the redesigned URLA this week for all products.

First State Mortgage sent out a URLA reminder.

Effective March 1, PRMG’s TPO Portal will support and require the MISMO file format 3.4 version to accommodate the newly designed URLA and updated AUS systems.

Flagstar Bank posted information on VVOE Form Update and COVID Reminder for Self-Employed Borrowers in memo 21023.

In Compliance News, First American Docutech posted information regarding FNMA AUS messages Concerning Legacy URLA and USDA Forms Updates.

Wells Fargo Funding clarified that Sellers submitting Loans using the new Uniform Residential Loan Application (URLA) during the Open Production Period are not required to include taxpayer consent documentation in the closed Loan Package. The redesigned URLA includes language that meets Wells Fargo Funding’s taxpayer consent documentation requirement for all Loan types (conventional Conforming, Non-Conforming, FHA, VA, and Guaranteed Rural Housing).

Flagstar Bank posted Memo 21012 on February 4^th with updated information on 4506-C Authorization.

FCM Wholesale posted a 4506-C guideline update in Announcement 2021-3.

Capital markets

Join MIAC on Thursday, March 4 at 2:00 PM EST for its latest webinar: Whole Loan Market Update. MIAC’s Whole Loan Trading Desk will recount the events of 2020 and their effects on the residential whole loan market. Topics include ways to capitalize on the turmoil in the residential market and how to protect against future economic events while taking advantage of new opportunities in 2021. This webinar will feature presentations and discussions by MIAC’s experts: Brendan Teeley, Senior Vice President, Whole Loan Sales & Trading, and Dick Kazarian, Managing Director, Borrower Analytics Group. Hosted by MIAC Analytics. Webinar registration is complimentary: reserve your spot today!

The bond market, trading in part off of actual data and part off of hope, has been selling off, and selling off some more, recently. Yesterday’s likely culprit was likely the headline that the FDA has endorsed Johnson & Johnson’s single-shot vaccine. Some of the selloff could have been due to new home sales in January increasing 4.3 percent month-over-month and 19.3 percent year-over-year, both above expectations, to a seasonally adjusted annual rate of 923k. Demand for signed contracts remains robust despite higher prices. It certainly wasn’t due to the greatest weekly decline in mortgage applications in nearly a year. If mortgage rates continue to creep up, we will see continued pressure on TBA and pool volumes that are coming off record levels.

In Washington, Fed Chairman Powell delivered an uneventful appearance to conclude his semiannual testimony on monetary policy before the House Financial Services Committee. I’ll spare you the details and say the Fed is unlikely to change course for some time, but will do its best to alert us of any changes as far in advance as possible. The day’s $61 billion 5-year note auction was met with weak demand. By the end of the day Treasury yields had pulled back a couple bps across the curve and the MBS basis closed the volatile session mixed.

Today’s economic calendar is out of the gate with a bang. January Durable Goods Orders (+3.4 percent, much stronger than forecast), the second look at Q4 GDP (+4.1 percent) and weekly jobless claims (730k, -111k from the previous week but are impacted by the storms; continuing claims 4.2 million). Later this morning brings January Pending Home Sales, the Freddie Mac Primary Mortgage Market Survey for the week ending February 25, KC Fed manufacturing for February and a $62 billion Treasury auction of 7-year notes. Three Fed speakers are on the docket: Atlanta’s Bostic, Vice Chair of Supervision Quarles, and New York’s Williams. Today’s schedule sees the NY Fed Desk conducting three operations, one in each class, for up to $6.6 billion, in what we’re reminded is “artificial” demand. We begin the day with Agency MBS prices worse/down .5-.750 and the 10-year yielding 1.46 after closing yesterday at 1.39 percent on continued hope for the pandemic recovery.

During the beginning of the pandemic I worked at a cheap pizza shop to get by. I kneaded the dough.

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, “Servicing: A Valuable Asset”. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2021 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

(To listen to the audio version of today’s commentary with an interview with industry vet Joe Garrett, please click here.) There’s a cost to staying at home as much as we do. I went to the doctor the other day. She told me, “I’ve got good news and bad news. The good news is that your weight is perfect. The bad news is that you’re two feet too short.” What is the cost of you keeping a customer versus the cost of finding a new one? According to STRATMOR data, the average time to close a refinance loan is currently around 60 days, with many lenders (depository institutions in particular) experiencing cycle times in the 90 to 110-day range. How are originators supposed to delight borrowers when cycle times are out of control? It starts with setting the right expectations. Data from MortgageSAT, the Borrower Satisfaction Program with more than 260,000 borrower respondents in 2020, shows that one in five loans in Q4 failed to close within the expected time frame set by the lender, costing 57 points on the Net Promoter Score (NPS) – from 87 to 30. MortgageSAT Director Mike Seminari offers three suggestions to help set appropriate borrower expectations and mitigate long cycle times in his February MortgageSAT Tip.

Employment & transitions

“Track record of long employee tenure = Assurance Financial. Best tech stack in the mortgage marketplace = Assurance Financial. Exemplary record of servicing purchase money market MLOs = Assurance Financial. Incredible entrepreneurial branch manager business model = Assurance Financial. Community-service oriented in all markets with St. Jude as our philanthropy partner = Assurance Financial. Founded in 2001, licensed in 43 states, all agency approvals, not controlled by private equity, and growing in all markets. If you are an aggressive producing branch manager or senior mortgage loan officer considering another opportunity, contact Paul Peters, CMB to discuss a mutual opportunity or visit AssuranceMortgageLO.com to learn more!”

FHLBank San Francisco announced its new leader: Teresa Bazemore. Teresa is its new President and CEO (starting in mid-March), after a lengthy and storied career at places like Prudential, Radian Guarantee, NationsBank, and Nextstar. She joins the long and growing list of people in our industry that announce retiring but then don’t. (Insert smiley face here.)

NewRez LLC announced that Michael Iorio has joined the Company as Senior Division Manager within the Joint Venture lending division.

Justin Demola, CMB is the new president of Lenders One, replacing Brian Simon, CMB, who resigned from his role as President of Lenders One to take on an executive role with a bank.

Lender, correspondent, & broker services and products

March is almost here, which means the deluge of mortgages and refis will only increase, forcing lenders like yourself to leave valuable loans on the table. Here’s the good news; Truework empowers you to verify anyone’s income or employment information quickly, accurately, and cost-effectively. With our tech-forward, fast verification platform and instantly verifiable network of 35 million employees (and growing), we are committed to tackling and completing any and all VOE/VOI requests. Additionally, we lead the industry in coverage for small and mid-sized companies, so you can verify hard-to-get employees, instantly. Get started on Truework today. And for a limited time, Rob Chrisman readers get 6 free Verifications ($240 value). Let us do the heavy lifting so you can focus on what matters. Set up time with Zackary Green now for questions and to claim this offer.

How do you keep overall customer satisfaction rates at 98% during the toughest year in a century? With a happy team doubling down on core values. It’s what helped TMS earn a record NPS score and positioned them for a great 2021. Read the TMS blog to see how it plans to have the same success in 2021 by staying committed to their people. Partner with TMS today.

MLOs, are you tired of working in your files and know you need to reconnect with referral partners? Are you ready to take control of your mortgage business so it doesn’t control you? When you coach with me, your business isn’t the only thing that expands: your life does too. Learn more about how I can help you take your business to the next level of success. Schedule your complimentary coaching strategy call or email us. “I’m excited to share my expertise in building high impact teams and mastering relationship strategies to expand your referral partner network so you can succeed in any market. Learn the key strategies and tactics that I used to achieve 7-figure success in my mortgage business, get your systems in place and learn to focus on the key activities that will drive your results!”

“Homeownership has long been a cornerstone of the American dream and the Correspondent Division of Citibank N.A. is dedicated to helping homeowners in underserved markets realize this dream. We are pleased to announce that Citi is the first mortgage investor to leverage ICE Mortgage Technology’s newest feature within the Encompass Product & Pricing Service™ (EPPS) that allows originators to drive Community Reinvestment (CRA) pricing incentives to the consumer at point of sale. EPPS is the mortgage industry’s only pricing engine to support CRA lending for participating mortgage investors, and those lenders doing business in underserved areas. This feature is now available to sellers and is the first of many new products and services the Citi team will debut in 2021. Learn how to be a part of this exciting growth with Citi by contacting our National Client Services Team today at 800-967-2205 or complete the Prospective Seller Questionnaire.”

Re: Ultra-Efficient Loan Pipelines… What would the impact of 1.5x, 2x or 4x efficiency be for your operations? This division of American Pacific Mortgage knows. They made their loan pipelines four-times (4x) more efficient with TeamworkIQ’s remarkably smart task-based workflows. Head of Operations, Indica Weatherwax, said, “Not only are we processing four-times the loan files every day compared to before, but we also now sleep better at night knowing that nothing can fall through the cracks.” TeamworkIQ streamlines loan pipelines by intelligently coordinating and prioritizing actions for mortgage teams. It tracks every detail, deadline, and document for every loan and can communicate with your POS+CRM+LOS. Without smarter tools teams can spend up to 75% of their workday tracking down information and figuring out what to do next. Combine that with high loan volumes and inevitably something gets missed. Eliminate wasted time. Detect issues before they become costly mistakes. Get efficient. Get TeamworkIQ.

It’s been almost a year since the world became enamored with Netflix’s “Tiger King” series and Carol Baskin became a household name. “Tiger King’s” popularity led it to overshadow another intriguing docuseries released around the same time, “McMillions.” Luckily, lenders who team up with Sales Boomerang, the #1 automated borrower intelligence and retention platform, don’t have to resort to con artistry to cash in on their own McMillions. “In the first 4 months we took in $180M in applications and we have about 100 LOs. That is a significant impact to our business,” says Katherine Campbell, Assurance Financial. Sales Boomerang notifies mortgage lenders the moment someone in their database is ready for a loan. Lenders using Sales Boomerang see an average 20-40% lift to loan volume and 65% borrower retention rate for around $299 per acquired loan — a 20x ROI. Claim your own McMillions with Sales Boomerang.

The upcoming ACES QC Now webinar series will feature industry expert Steve Spies on Wednesday, March 3, 2021 at 2:00 PM EST. Reserve your seat! The Antidote for Audit Anxiety: Expert Advice on How to Prepare for a Regulatory Exam. The 30-minute webinar will cover common audit challenges, regulator audit scope deep dive, how to best prepare for an audit, current regulator focus, eliminating the stress with automating QC, and reporting on actionable data.

“Stearns Wholesale recognizes the importance of an efficient, customized experience to serve more borrowers effectively and keep your referral partners satisfied with our Accelerator Program. In a recent release, Stearns Wholesale has reduced the minimum credit score from 700 to 620 on all Accelerator transactions up to 90% LTV. Streamlining the process and improving the price on popular scenarios with the same best-in-class fulfillment was the driving force behind this development. Better value, faster, sustainable. If you want to learn more about this exciting new update or partner with Stearns, click here to be contacted.”

With critical decisions at stake, capital markets professionals need the most robust data and modern technology to support their analyses. Black Knight provides proven, cutting-edge solutions to help optimize decisions. Developed specifically for users working with housing-related assets, our Rapid Analytics Platform℠ (RAP℠), for example, offers a unique, cloud-based data marketplace and decision-science studio. With RAP, you can immediately source Black Knight’s diverse, comprehensive data assets as well as add your own, and execute queries, create advanced analytics, and train machine-learning models. Our long-standing, trading-quality AFT℠ Prepayment and Credit Model leverages innovative modeling techniques and dynamic data collected directly from the source to quickly adapt to market shifts. And, our servicer-contributed McDash℠ data provides the most comprehensive loan-level data in any single source, with the option for daily delinquency, forbearance and payment data. Learn more how these and our other solutions can help you.

Are you looking to close more loans, faster? Capacity allows you to take care of your borrowers with superior customer experience and 24/7 automated support, all through a mobile-friendly chat interface. Capacity correctly and instantly answers more than 84% of all prospective and current borrower questions without any human intervention. Top lenders like AmeriSave, APM, and PRMG turn to Capacity to effortlessly tap into key systems throughout the entire loan life cycle. Want to hear more? Capacity makes scaling an organization easy by simplifying tasks in the UW Scenario Desk, Lock Desk, and Encompass Support Desk. Capacity reduces the level of human interaction required to answer expense and HR questions and to complete tasks for compliance requirements and document processing. Bottom line, Capacity allows you to take care of borrowers with superior customer experience and 24/7 automated support. Deploy within 30 days. Request a demo.

“Lakeview Loan Servicing is pleased to announce that as of February 1, 2021, we are the proud Master Servicer for the South Carolina State Housing Finance and Development Authority (SC Housing) Palmetto Home Advantage program. A self-sustaining agency, SC Housing is committed to ensuring that residents have the opportunity to live in safe and affordable housing. Designed to serve both first-time and move-up borrowers, the Palmetto Home Advantage program offers down payment and closing cost assistance for both conventional and government loans. Become an approved participating lender today. Visit SC Housing for more information.”

Training, events, & membership opportunities to wrap up February

19 for 12 is back! The Mortgage Bankers Association (MBA) is running a special for the month of March. New members that join now can take advantage of 19 months of MBA membership for the price of 12 (7 months free!). MBA membership grants access to committees, information, education, research, and so much more. Membership also supports MBA’s highly successful legislative and regulatory advocacy programs. In 2020, MBA’s advocacy efforts secured numerous significant victories that helped members manage through COVID and address regulatory uncertainties: see for yourself. In 2021, MBA is already hard at work at both the state and federal level to defend and support the mortgage banking industry. For example, look at its campaign to secure greater flexibility for remote work options for MLOs and others engaged in licensed activities. This is just one example of their ongoing advocacy efforts. To learn more, contact Tricia Migliazzo, VP of Member Engagement (202-557-2858).

Attend a complimentary webinar for mortgage professionals today at 10AM PT: The State of the Economy & Key Strategies to Secure Your Investments and Build Wealth. Hosted by Cindy Ertman, CEO of The Defining Difference, with guest experts. Topics include the state of the economy, the future of interest rates, the health of the housing industry, and discuss key investment strategies for what you should be doing with your money and how to protect it.

October Research is bringing together three experienced experts to share their insights in the upcoming Getting to Know Your Regulators webinar today. Former CFPB Deputy Director and Alston & Bird Partner Brian Johnson, former CFPB Assistant Director of Enforcement and Goodwin Partner Tony Alexis and former Principal Deputy Enforcement Director and General Counsel for the Illinois Department of Financial and Professional Regulation Hunter Wiggins.

Candor and HW offer this moderated discussion with AFN, APM, and loanDepot tomorrow at 1PM CT which should shed more light on how Candor is providing a processing lift to lenders around the nation.

Here’s a free CFPB FinEx Webinar: CFPB resources for working with servicemembers and veterans on Thursday, February 25, from 2:00-3:00 pm ET. Join the webinar for an introduction to education and empowerment materials from CFPB’s Office of Servicemember Affairs. To view the presentation slides please join the event directly here. Event number: 199 082 2346.

The next California MBA Mortgage Quality & Compliance Committee (MQAC) webinar (sponsored by The Compliance Group) will answer question on social media compliance by covering one of the most timely topics for compliance/QA teams: social media compliance! Join on February 25^th at 11 am (PST) with Philip Yee, SVP, Chief Marketing Officer at Plaza Home Mortgage and Mike Zastoupil, Sales Solutions Specialist at Black Knight.

Partners Credit is sponsoring this Friday’s edition of The Mortgage Collaborative’s Rundown, and Tracey King will be co-hosting! Tracey, Rich Swerbinsky, the COO of The Mortgage Collaborative, and I will be discussing current events in the mortgage market for 30 minutes on Friday the 26th at 3PM ET in, “The Rundown with Rob and Rich.”

MBA Education continues to deliver webinars, complimentary to MBA members, like Commercial/Multifamily: Market Distress and Loan Workouts – February 24, Compliance in a Rapidly Changing Servicing Environment – February 24, MAA Quarterly Webinar: February 2021 – February 25, Achieving Touchless Mortgage Automation: Insights from Industry Experts – March 3, and Multifamily Real Estate Financial Crimes Training – March 10.

Capital markets

While the global “reflation trade” (with bonds selling off and commodities rising) has been the norm lately, U.S. Treasuries ended yesterday on a mixed note after a volatile start. Money flowed out of equities to start the day, but we then saw the release of a better-than-expected Consumer Confidence report for February, where attitudes about current conditions improved for the first time in four months, aided by some improvement in the view of the labor market. The release of Fed Chairman Powell’s prepared remarks that were delivered to the Senate Banking Committee reiterated that any changes to the Fed’s bond buying plans will be communicated well in advance, which provided welcomed certainty for investors. The day’s $60 billion 2-year note auction was met with soft demand ahead of today’s $61 billion 5-year note sale. The FHFA Housing Price Index increased by 1.1 percent month-over-month in December after increasing 1.0 percent in November, while the S&P Case-Shiller Home Price Index rose 10.1 percent year-over-year in December, more than expected. Housing is strong!

Today sees Fed Chair Powell back on The Hill to testify on the monetary policy report before the House Financial Services Committee. Two other Fed speakers (Governor Brainard and Vice Chair Clarida) are scheduled to make appearances elsewhere. On the data front, we’ve seen that mortgage applications decreased 11.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending February 19. Later this morning brings new home sales for January and that $61 billion 5-yr Treasury note auction. Today’s MBS purchase schedule by the Fed is the largest of the week with the Desk scheduled to purchase $7.6 billion over three operations, including over $6.2 billion in UMBS30s. We begin the day with Agency MBS prices down/worse .250 and the 10-year yielding 1.38 after closing yesterday at 1.36 percent.

For some Hump Day R&R, thank you to Carey A. who asks, “Can you guess the city from a virtual walk around the streets?” (Hint: start easy, like in the United States.)

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, “Servicing: A Valuable Asset”. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2021 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

 

(To listen to the audio version of today’s commentary, please click here.) Being home schooled was the goodest thing I ever did! Disparities in mortgage approval rates and higher student loan debt are contributing to a significant gap between Black and White home owners, according to the National Association of Realtors. Many ask, “How about lowering the cost of higher education rather than forgiving debt?” Others ask, “If you can’t trust a company named Libre with immigration detention at the Mexico/United States border, who can you trust?” The CFPB alleges Libre scammed those held in custody. Speaking of… Want to make a quarter million a year working for the CFPB? Here’s your chance. (Signing bonus availability unknown.) There is a lot of conjecture about the CFPB bearing its fangs, but if lenders and servicers are adhering to rules and regulations, is there anything to fear? (By the way, apologies to those of you who were unable to listen to yesterday’s podcast, including an interview with BJ Necel, due to some issues with hosting provider now resolved.)

Employment

“If 2020’s record volumes left you feeling burnt out, it’s time to invest in yourself. Mid America Mortgage is hiring for both sales and operations, including Loan Officers, Branch Managers, Processors, Branch Support, Underwriters, Closers, and other corporate operational support roles. As a nationwide mortgage lender, Mid America is open to growth in any and all domestic geographic territories. We believe that work-life balance is important to the sustainability of long-term employees, and that mentality does not change based on demand. Our culture of putting employees first has earned us numerous Top Workplace honors, and by equipping our teams with best-in-class technology and support, Mid America ensures our employees are able to maximize their efficiency without burning the midnight oil. If you’re ready to make a change, Mid America is ready for you. Visit our Careers page, and contact Mid America’s HR Director Pacia Crawford to learn more.”

A deep-rooted, privately held mortgage lender, MiMutual Mortgage invites ambitious mortgage professionals seeking new opportunities to explore the positions currently available within its Sales and Operations teams. MiMutual is excited to continue the expansion of its well-established Wholesale Sales Team nationwide, seeking experienced Account Executives across the country. Within Operations, MiMutual is offering remote opportunities within Underwriting and Closing, specifically in search of an Underwriting Supervisor, FHA/VA certified Underwriters, and Sr. Closers. All interested candidates are encouraged to contact HR Generalist Karley Warwick (248-286-9490) for more information.

Lender products & services

The 2021 housing market is changing: Are you investing in the right areas for a profitable year? Lenders: Now is the time to reevaluate your strategy and spend as the lending cycle shifts, and we head into a purchase-heavy market. Luckily, leading digital mortgage platform Maxwell has pulled together market predictions and expert opinion to give you the top 6 business areas likely to produce outsized ROI this year. If you want to capitalize on opportunities available to lenders in the coming months, then consider making these timely investments in your company: You’ll thank yourself later. Click here to download Maxwell’s free new ebook Top 6 Areas Where Lenders Should Invest in 2021.

So, Candor came out of nowhere?!? The website says Candor’s machine has underwritten more than 305,000 loans. A little detective work unveiled this HW article and this moderated discussion with AFN, APM, and loanDepot on Thursday which should shed more light on how Candor is providing such lift. Be there this Thursday, February 25th, at 1PM CT.

According to Inside Mortgage Finance, PennyMac was the nation’s fastest-growing wholesale lender in 2020. Talk about an impressive accomplishment: 485% growth from 2019 to 2020. How’d PennyMac do it? Since entering wholesale in 2018, PennyMac has had an unwavering commitment to the broker channel. Whether it’s condition accuracy, clean approvals, consistent underwriting or turn times, the focus is on service and on getting broker partners and their borrowers to the closing table as quickly and easily as possible. PennyMac’s experienced team strives to provide the highest level of engagement on every loan for every broker, every day. PennyMac is positioned to be an even greater lending partner in 2021. The timing couldn’t be better to check out all the reasons to become a broker partner or a Non-delegated Correspondent seller and grow at the speed of PennyMac.

Easily find your next vendor on Vendor Surf, showcasing the most innovative solutions and recognized brands, SEARCHERS can ‘Find ’em Fast,’ in real-time via specific filters… Nothing else like it. Not another static ‘directory.’ A quarter million page views, with over half of our traffic coming from Google. Even they recognize us as the ‘Vendor Authority.’ The premier destination for decision makers at lenders and credit unions, intelligently connecting to desired vendor partners. There’s more! See the industry’s most complete Calendar of events, webinars, podcasts, and training, usually over 300 items. We post yours for FREE. Send them to Scott.

Synergy One Lending, home of The Modern Mortgage Experience™, in its latest webinar series, THE SHIFT, presents “Winning Big with FinTech” on March 3rd at 11am PST with Henry Cason, one of the foremost authorities on the digital mortgage landscape, former head of digital strategy at Fannie Mae and the Creator of Fannie Mae’s Day 1 Certainty Program. Cason, now CEO at FinLocker, addresses how fintech allows lenders to venture well beyond the mortgage transaction to meet the paradigm shift happening in consumer finance. Learn how top producers are positioning themselves with technology as they build highly engaged customers for life, especially in the Gen Z and Millennial segments. Click here to secure your spot today! Synergy One Lending is based in San Diego, CA, with Operational HUBS in Roseville, Boise, Denver, and Dallas. Contact Aaron Nemec or Ben Green to learn more about S1L.

Northpointe Bank Correspondent Lending recently launched its Streamline Jumbo Fixed & ARM program, with loan amounts up to $3,000,000, loan-to-value up to 85% and no mortgage insurance requirements. The Streamline Jumbo program includes cash out refinances with LTVs up to 80%; closely follows automated underwriting guidelines; and is available for owner occupied, second homes, and nonowner-occupied properties. Approved Northpointe Bank clients have access to best effort and mandatory delivery options, third-party origination and the program is eligible in all 50 states and the District of Columbia. Northpointe Bank provides tailored solutions to maximize your profitably and help grow your business. View program details for more information or email [email protected].

Don’t let the monthly extension of forbearance deadlines and foreclosure moratoriums create complacency! Find out what loss mitigation capabilities your servicing operations should have to meet the next phase of COVID-19 relief and workout alternatives in CLARIFIRE’s latest blog. Are your systems and personnel in a pandemic lull? From extended flexibilities and evolving regulation to nuanced default guidance, CLARIFIRE^® is the premier process automation application designed to transcend the lull and tackle the chaos that began with the financial crisis, percolated during historic natural disaster levels, and is turning us upside down in the midst of a pandemic. We are ready to help you navigate what’s next in loss mitigation. Let us show you how you can future proof your organization today with CLARIFIRE^®, truly BRIGHTER AUTOMATION^®.

What makes one bulk program different, or better, than another… Besides the bids? At Plaza Home Mortgage, the answer is: competitive bids + insurance to protect correspondents against buybacks. Correspondents selling to Plaza’s National Correspondent Program are automatically covered by Plaza’s unique Certified Loan Program, which protects sellers against a range of underwriting defects, even COVID-19 related instances.  Looking for more from a correspondent lender? Look to Plaza National Correspondent at [email protected].

The goal: customer satisfaction

STRATMOR Group congratulates the winners of the MortgageSAT Borrowers Satisfaction Program’s 2020 Best-in-Class Lender Awards! The awards are presented annually and go to the top performing lenders by segment and in 10 performance categories including Overall Borrower Satisfaction, Net Promoter Score, Loan Officer, Loan Processor, Application Process, Products and Costs, Likelihood to Use Again and Online Tools. Winners this year include: Rocket Pro TPO, Residential Mortgage Services, Certainty Home Loans, Meridian Bank, Accunet, Guild Mortgage, PrimeLending, and Movement Mortgage. Visit the MortgageSAT page on the STRATMOR Group website to see the winners’ lists.

Ginnie Mae, FHA, and VA always moving 

For about a week there was a lot of talk about a potential for an FHA mortgage insurance premium (MIP) cut (and the corresponding impact on private mortgage insurers). Given the new Administration’s focus on affordable housing and homeowner diversification, the odds slightly favor a moderate FHA MIP cut in the coming months despite the elevated level of seriously delinquent loans in its book. But really, given the lack of inventory out there, any lack of affordability is due to the low number of listings, not FHA mortgage insurance levels.

Beginning in February 2021, a new Single Family Pool Type, “RG” and a new Loan Purpose “5 – Re-performing” will be available in Ginnie Mae data. Ginnie Mae added “February 1, 2021 Notes and News” regarding the deadline extension to transfer BNYM to another document custodian.

FHA is expanding its relief efforts to assist homeowners with FHA-insured mortgages with updated guidance in Mortgagee Letter (ML) 2021-05. Updates include extensions of Single-Family Foreclosure and Eviction Moratorium, Start Date of COVID-19 Initial Forbearance, and Home Equity Conversion Mortgage (HECM) Extension Period; Expansion of COVID-19 Loss Mitigation Options.

Citi Correspondent Lending Bulletin 2021-02 topics include Income & VOE Requirements for FHA Loans, critical changes to Ability to Repay/Qualified Mortgage Rule, new version of HUD 92900-A, and clarification on DU Appraisal Waivers on Loans with Mortgage Insurance.

PennyMac will be making updates to the Government LLPAs effective for all Best Effort commitments taken on or after Tuesday, February 23, 2021, as follows: Update values on the Government ‘FICO Price Adjustments’ Grid and Update value on the FHA Streamline Price Adjustment. A sample of the updated rate sheet(s) is posted to the PennyMac Portal.

Take advantage of the new FHA Express submission option from Plaza Home Mortgage to accelerate closings on qualifying core FHA loans. FHA Express is available for
W-2 and fixed income borrowers, for purchase, rate/term, or cash-out refinances with Conforming or High Balance loan amounts. Qualifying loans receive expedited underwriting, are competitively priced and can often close in as little as 10 to 15 days.

News and Announcements from LoanStream Wholesale posted information on the redesigned Uniform Residential Loan Application, recent changes to SSA89 AND 4506-C forms,

Enhanced Government Guidelines regarding FHA Min FICO now 550 (90% LTV), VA Min FICO now 550 (100% LTV) and COVID-19 Updates.

PCF Wholesale has dropped FHA and VA down to 620 FICO, visit its website for information.

Skip 2 payments & offer your client 2.25% (3.039) on standard balance and 2.25% (1.773) on high balance VA IRRRLS. Find out details on the PCF Wholesale website.

Flagstar Lending Wholesale is updating the existing VA Cash-out>90% LTV LLPA from -5.000 to -3.000 on new locks, effective immediately.

It’s FHA February at LoanStream Wholesale offering two new promotions. All FHA Loans get a 50 BPS Price Improvement effective immediately. *No Lender Fee (*LoanStream Underwriting Fee and Doc Fee) on FHA Streamlines (does not include VA) through February 28^th. Lender fee waived for all FHA Streamline Loans locked 1/29/21 through 2/28. Terms and Conditions apply, this loan special subject to change at any time.

loanDepot Wholesale has made improvements to its VA IRRRL program, loanDepot to loanDepot loans with 680-719 credit scores. The 90% LTV restriction has been removed and AVMs are no longer required. Refer to the VA IRRRL Fixed/ARM matrix for program details.

Plaza Home Mortgage® offers the FHA 203(k) Standard and Limited renovation loan programs. Download Plaza’s flyer for more information.

Capital markets

Depending on the product, the Great State of Texas is usually in the top five for production. The economy in Texas, which accounts for roughly 10 percent of GDP, saw widespread shutdowns due to loss of power, water, impassable roads and both residential and commercial flooding from burst pipes following a winter storm that crippled much of the state last week. This will likely impact data over the first quarter as supply chain disruptions will be felt nationwide; however there will be little disruption to employment.

Turning to last week’s data, retail sales spike 5.3 percent in January as the $900 billion stimulus made its way into the economy. While January saw increases in discretionary items such as autos, furniture and electronics, the winter recent winter storms may leave many consumers to pivot spending to increased utility payments in February. Wholesale energy prices drove producer prices up 1.3 percent in January and are expected to continue their rise in February. As we move towards spring, the year over year gains are expected to show larger increases due to both the weakness from last year as well as firming prices this year. Expectations for higher inflation have increased yields in both Treasuries and MBS and mortgage rates are continuing to trend higher.

Yesterday was a great example of why companies hedge locked mortgage pipelines with agency MBS securities and not Treasuries. Treasury prices were nearly unchanged but MBS prices were down/worse .375-.50. The 10-year Treasury yield pulled back to 1.39 percent in the morning hours before closing at 1.36 percent on the day due to a slow unwinding of the recovery. The movement came even before the bi market-moving events of this week: namely, Fed Chair Powell’s semiannual monetary policy testimony and the quarterly refunding. While Treasuries pulled back in curve steepening fashion, MBS spreads were much wider by the close, which may spell the imminent end for the 1.5 percent coupon in the Fed’s buying rotation.

Though it had already been priced in by markets, a House panel yesterday advanced the $1.9 trillion stimulus legislation, meaning it could pass the full chamber by the end of the week. Not a single Republican voted in favor of the bill, which includes $1,400 stimulus checks, enhanced jobless benefits, a minimum wage increase, and vaccine funding. Elsewhere in Washington, the Mortgage Bankers Association’s latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 7 bps to 5.22 percent of servicers’ portfolio volume in the prior week as of February 14. According to MBA’s estimate, 2.6 million homeowners are in forbearance plans.

The likely highlight of today’s events is Fed Chair Powell’s appearance before the House Financial Services Committee. On the data front, we’ve already seen several regional Fed surveys, highlighted by Philadelphia Fed non-manufacturing for February (slight positive). Later this morning brings Richmond manufacturing and services for February, Dallas services for the same month, the Case-Shiller and FHFA home prices, both for December, and consumer confidence in February. The Desk of the Fed will conduct two operations targeting up to $5.3 billion, starting with $2 billion GNII 2 percent and 2.5 percent followed by $3.3 billion UMBS30 1.5 percent and 2 percent. We begin the day with Agency MBS prices unchanged and the 10-year yielding 1.36 percent as volatility takes a pause.

Sometimes life, and what you see, isn’t what you think. Check out this optical illusion where the circles don’t move. (Thank you to Cyndi S. for this one.)

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, “Servicing: A Valuable Asset”. 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 designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2021 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)