Dec. 1: MLO jobs; HELOC, non-Agency, valuation, co-issue, DEI hiring products; upcoming events and training
Our industry continues to be battered. Starwood Capital-backed Reverse Mortgage Funding and its parent company Reverse Mortgage Investment Trust have filed for bankruptcy. Inlanta Mortgage told the state of Wisconsin it plans to wind down its business. Switching gears, to celebrate the first day of December, spend 5 minutes taking one of my favorite quizzes, focused on figuring out where you’re from based on the words you use for certain common things. (What do you call the little bug that rolls up into a ball when you touch it? Sneakers versus tennis shoes? Y’all versus you guys?) It’s uncanny! What isn’t uncanny are the number of predictions we’ve heard about a recession, many dating from nearly a year ago. Recessions generally mean lower rates. Bank of America CEO Brian Moynihan says that a “mild recession” is likely next year but that concerns about a more severe downturn appear to be abating, noting households have maintained strong financial footing. “At the end of the day, the consumer has held in well,” Moynihan says. “The consumer has stayed reasonably strong because they’re employed.” And Brian, how ‘bout the almost $30 trillion in home equity out there? (Today’s podcast is available here and this week’s is sponsored by Candor Technology: Home of the One Touch Underwrite, supporting lenders from Point of Sale to Post Close QC, to reduce repurchase risk, increase underwriter productivity by 400 percent, and decrease turn-times by 10. Listen to an interview with MBA’s Marina Walsh highlighting MBA’s latest National Delinquency Survey, as well as additional research.)
“Today’s retail requires both the experience to see the big picture and the drive to create solutions. At Planet Home Lending, we have both. Big picture thinking like servicing most of the loans we originate so MLOs can create customers for life. Drive to expand into strategic markets with an eye on long-term stability and intelligent growth. And where they meet? Minimal layers of leadership, strong financial backing, and a synergistic Sales/Operations relationship to help get customers to the closing table. There’s no better time to reach out to Eastern Divisional VP Kathryn Edelen (301-502-2493), Western Divisional VP Lynette Hale-Lee (818-321-1260), or VP of Talent Acquisition Peter Briggs (435-709-6287). Shouldn’t you #LandAtPlanet?”
Lender and broker software and services
It’s time to make technology a priority in 2023! The mortgage industry is in dire need of a platform that securely integrates with lenders’ key systems, providing loan officers with instant, actionable answers about borrower opportunities, loan statuses, guidelines, and more. Capacity uses conversational AI to automate borrower support during the loan origination process while increasing lead capture and conversions. Request a demo to learn more. Capacity partners with lenders to deflect 90% of repetitive tasks away from support teams, allowing them to scale their support functions without hiring additional FTEs. By shifting traditionally manual work to Capacity, lenders can increase throughput and efficiency, scaling their support for LOs, brokers, and customers alike. Are you ready to provide superior customer support? See how it works.
Did you know that most people fall asleep in 7 minutes? With mortgage origination seeing its greatest downturn since 2009, it’s surprising that anyone can get any sleep! While many companies move to cut costs and “right-size” operations, market leaders embrace new programs, discover emerging segments, and position themselves to grow market share in 2023. Specifically, we still see significant growth opportunity in certain underserved sectors and minority demographics. So having a comprehensive Diversity, Equity and Inclusion program is NOT just about optics and representation but about effectively capturing those fast-growing markets in the most efficient way possible. As a minority-owned business with extensive experience in recruiting personnel across the country, Agility 360 provides value to our clients where it matters most: market intelligence, industry knowledge, and access to the nation’s largest diverse industry-specific resource network. Are you ready to embrace, discover and grow? Contact Annabeth Kline today.
As the market moves through different cycles, lenders are continuously evaluating whether to retain or release mortgage servicing rights (MSR) as part of their overall strategy. MCT & Mr. Cooper recently released a whitepaper, Getting Started with Co-Issue Transactions, that reviews the basics of co-issue transactions, helps dispel common MSR myths, and explains how to incorporate various strategies to achieve your business objectives. Additionally, join MCT for an upcoming webinar on December 7th at 10am PT when MCT’s Phil Rasori and Justin Grant, and Mr. Cooper’s Chis King introduce BAMCO, discuss the new BAMCO co-issue executions via agency integrations, and show you how co-issue loan sale transactions are now integrated into MCT’s whole loan trading platform, making the process of selling co-issue more convenient and transparent. Co-issue buyers have the choice to deliver standard grid-based co-issue pricing or loan-level bid tape co-issue pricing. Register for the webinar.
Opteon Introduces Spectrum RE Solutions, Its Alternative Valuation Solutions Division! Opteon, a leading international provider of valuation, advisory, and property services, announced earlier this week the launch of Spectrum RE Solutions, its alternative valuation solutions offering. Customers can expect Residential and Commercial products such as Broker Price Opinions (BPO), evaluations, reconciliations, and property inspections, in addition to other custom solutions. Spectrum offers a network of more than 24,000 agents and brokers nationwide to support customers’ real estate valuation needs. In addition to the improved platform, customers can expect support from full-time customer service staff. For more information, contact us.
Identify potential HELOC candidates with HouseCanary: As mortgage rates continue to rise, consumers are moving towards HELOCs to take advantage of the record-level equity in their homes. With HouseCanary’s proprietary data suite, we can help you identify top candidates for HELOCs from right within your existing book of business, cross-sell to you non-mortgage customers, or enhance your current lead database. Reach out for more information.
The Correspondent Channel at Citibank N.A. continues to be committed to building deeper relationships with Non-Delegated, Best-Efforts lenders who have a passion for supporting consumers in underserved markets. With recent enhancements to our Non-Delegated platform and increased capacity, we are excited to help create opportunities for smaller mortgage bankers who are looking to make a sustainable impact in their local communities. Featuring a robust set of Community Reinvestment Act (CRA) pricing incentives that can be brought point of sale through Optimal Blue and ICE’s EPPS pricing engines, Citibank N.A. continues to lean in with Correspondents regardless of the overall market landscape. Learn more about this and other exciting products and programs currently in flight by contacting the National Client Services Team or completing our Prospective Correspondent Questionnaire.“Northpointe Bank Correspondent Lending provides tailored solutions to maximize your profitability and help grow your business, focusing on affordable housing solutions. Manufactured housing has become a popular choice, and Northpointe Bank offers several programs, on a delegated and non-delegated basis, designed for borrowers looking to purchase a manufactured home. With loan-to-value ratios up to 95% for conventional, 96.5% for FHA, and 100% financing for VA & rural development (USDA) loans, the programs have also been enhanced to allow for single-wide and double-wide modular homes. The MH ADVANTAGE® by Fannie Mae program offers loan-to-value ratios up to 97% and provides financing for homes with certain architectural features such as a steeper pitched roof, attached porches and garages, energy efficiency standards, and construction elements, including durability features. For more information, you can view the program details or email us.”
You asked, Symmetry Lending listened! What more could we provide beyond an industry-leading HELOC product, price, and service? How about our recently announced opportunity to earn up to a $1,500 borrower-paid broker fee? Symmetry understands the challenging market for our originating partners, and that’s why we’ve added more ways for you to retain your customers while also generating new revenue sources. Don’t refer your clients to a competitor, simply because you don’t have a way to generate revenues on their HELOC needs. With CLTV’s up to 89.99%, loan amounts up to $750,000, and margins as low as Prime + 0.49%, the Symmetry HELOC is the tool you need to protect your clients and generate more revenues. Contact your Symmetry Area Manger today to learn more about these recent enhancements.
Events, training, and webinars
Join MMLA on December 1st, 11:30 AM – 1:30 PM for a Northern Michigan Committee Luncheon & Adopt A Family Event. Hear from MSHDA speaker, Nancy Baker, as she explains how the MSHDA loan programs (MI Home Loan, MI DPA Loan, and Mortgage Credit Certificate) can help your clients, how to become a becoming a MSHDA lender and how you can be compensated. Nancy will also discuss the new Building Michigan Together plan and what it entails for our industry.
Tomorrow (Friday) at noon PT is the next edition of The Mortgage Collaborative’s Rundown with Rich and Rob, along with Chris Bennett from Vice Capital. We’ll will be covering current events in the mortgage market for 45 minutes starting at noon PT in “The Rundown with Rich and Rob”!
Tuesday the 6th, Mortgage Pros 411 with Audrey Boissonou and Kevin Casey: Two LOs discuss all things mortgage with industry leaders every Tuesday at 11AM PT: register here.
Join Silicon Valley CAMP on Wednesday, December 7th 11:00am–2:00pm for a Holiday Luncheon at Maggiano’s Little Italy in San Jose. Come celebrate the season with special guest, Rob Chrisman, Daily News & Commentary. Members admission fee $40, non-members – $59, includes a 3-course meal (no host bar) Pre-registration is required, available space is limited. Note to Attendees: In the spirit of giving, CAMP will be collecting Toys for Tots donations, your generosity to this cause would be appreciated.
Join MCT for an upcoming webinar on December 7th at 10am PT when MCT’s Phil Rasori and Justin Grant, and Mr. Cooper’s Chis King introduce BAMCO, discuss the new BAMCO co-issue executions via agency integrations, and show you how co-issue loan sale transactions are now integrated into MCT’s whole loan trading platform, making the process of selling co-issue more convenient and transparent. Co-issue buyers have the choice to deliver standard grid-based co-issue pricing or loan-level bid tape co-issue pricing. Register for the webinar.
Join Optimal Blues’ John Dumonsau, Product & Pricing Solutions Specialist; Mike Vough, Managing Director; and Rick Allen, Vice President – Business Strategy to hear easy-to-understand data can inform quick decisions in chaotic markets. Learn how data can help you make every basis point count in turbulent environments. Register for the Optimal Blue Webinar: Using Data to Improve Processes and Boost Business on Wednesday, Dec. 7, noon CT.
As many big lenders scale back their huge pay-per-click budgets, there’s never been a better time to work on your local organic strategy. Check out the upcoming National Mortgage Professional webinar Local Search 101 for Mortgage Brokerages. Local search is the lifeblood of any business in today’s world. The same is true for local mortgage brokerages. Finding new customers and encouraging repeat visits from existing customers often rely on your business’s online presence and how you show up digitally. On Thursday, December 8 at 2:00 PM ET, join Erika Cox, Product Marketing Manager at Podium in this free webinar she busts the local SEO myths and covers 5 ways to up your local search strategy. In this webinar, you’ll learn why local search is a critical marketing strategy, what to prioritize as you manage your online presence and how to optimize your online Google Business Profile to help you find more customers.
Join XINNIX on December 14th, at 12 PM ET as XINNIX CEO & Founder Casey Cunningham and the team share experiences and top tips gathered from 20-plus years in the industry. Register for the Building a Culture of Excellence Webinar to hear Casey share the value of employee engagement and why it matters, Insight into the five tiers of employee engagement and how to impact them.
Milliman is offering a complimentary On-Demand Webinar Series providing up-to-date research and analysis on the CRT market. The second episode in a quarterly series provides insights into market dynamics, prerecorded and last about 20 minutes, so you can watch at your convenience.
National MI is pleased to invite you to our upcoming December 2022 webinar sessions, brought to you by National MI University, with a commitment to delivering high-quality educational content to our customers.
This December, Enact (formerly Genworth Mortgage Insurance) will host multiple live courses to help grow your business and positively impact homebuyers. From video for beginners, to a review of the 2022 NAR Profile of Homebuyers & Sellers, to a roundtable with top producers, there’s something for everyone! Browse Enact’s course catalog of on-demand webinars, just have your company or individual NMLS ID handy when registering.
Capital markets: lower rates driven by Fed’s Powell comments
With home prices declining, home valuation accuracy is more important than ever when buying homes and loans, or determining whether LTV overlays are necessary in some markets. HouseCanary is your national brokerage to monitor fast and buy intelligently. Filter and review active listings as they hit, and run 3yr home value forecasts using market volatility, local income, and other factors. Reach out for more information.
Even though it is customary to quote the 10-year risk-free U.S. Treasury, traders and investors in mortgage-backed securities more often watch the 3-year to 7-year securities, depending on general interest rate trends. MBS and U.S. Treasuries both rallied in price, dropping in yield, yesterday after Fed Chairman Powell divulged that the time for moderating the pace of rate increases may come as soon as the December 13-14 FOMC meeting. This comes in the last week of Fed-speak ahead of that December meeting.
If the Fed was looking for signs that its rate hike strategy has been working, U.S. job openings fell to 10.3 million in October, suggesting demand for workers is strong but moderating, which could help lower inflation. Companies are no longer in hyper-replacement mode, fewer people are quitting, and the post-pandemic recovery is stabilizing, though wages are well above levels consistent with 2 percent inflation over time. Expectations are for 200k jobs in tomorrow’s Employment Situation report.
On the housing front, pending home sales declined 4.6 percent from September, the fifth consecutive monthly drop, according to the National Association of Realtors. Contract signings fell in three of four major U.S. regions in October, while the Midwest registered an increase, and pending sales declined in all regions compared to one year ago. The Western region, in particular, suffered from the combination of high interest rates and expensive home prices. Buyers could return if there is evidence that we are past peak mortgage rates.
Today’s economic calendar kicked off with the first of two labor market indicators ahead of tomorrow’s payrolls report (Challenger layoffs for November and weekly jobless claims at 225k, relatively steady) and October personal income and spending (+.7 percent, +.8 percent, both significantly up). The Core PCE Price Index, the Fed’s preferred measure of inflation, rose (+.2 percent for the month, expected +.3 percent). Later this morning brings S&P Global manufacturing, ISM manufacturing PMI, and construction spending in October. Four Fed speakers are currently scheduled. We begin the day with Agency MBS prices better by .250-.375 and the 10-year yielding 3.58 after closing yesterday at 3.70 percent.
We were so poor when I was a kid that we couldn’t afford tinsel. We had to wait for Grandpa to sneeze.
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. “Supply and Demand are Still Driving Mortgage Pricing” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)