Feb. 27: LO jobs; sales training, digital products; wholesale news across the biz; Zillow & Chase news

As opposed to HomeBridge Financial, which appears to be buying HomeStreet’s origination biz, it is no secret that JPMorgan Chase isn’t an ardent fan of residential mortgage lending. This slide in its investor deck spells out why: competition/shrinking margins, and home buying cooling off. “A tough time to be in the business”? Companies like Zillow know that rates aren’t 16%, we’re not in a depression, and lenders will originate about $1.6 trillion in home loans this year, similar to 2018, helping millions of borrowers. February for me included visiting with folks in St. Louis, San Francisco, Sacramento, Anaheim, Austin, and San Diego. Yes, it’s tougher than a few years ago, but I continue to see optimistic lenders and successful companies in our biz helping families in compliant, cost-effective ways. We should not forget our role. And there are tougher things.


“Closing 2 loans a month in Southern California, but need a steady source of realtor-sourced business to get to 5 or more? Doorway Home Loans is hiring ambitious, hard-working loan originators with 3+ years mortgage experience who are willing to partner with an established, highly regarded real estate franchise in Orange County. As with every other residential mortgage company in this competitive market, we offer excellent service, turnaround time, and very sharp rates—what differentiates us is our preferential access to real estate partners, exclusive in-house custom-built loan officer & realtor tools, the accessibility of our executive team, and our core values: Pride, Integrity, Authentic Care, Solutions Focus and Timeliness. If you want to grow your career as part of a dynamic, growing independent lender, contact Natalia Chinn (714-550-1293).”

Guardian Mortgage has recently added a high-producing origination team based in Castle Rock, CO, led by John Showers with sales leaders, Susan van de Poll and Rick Kinzer and top producers Deb Regan and Russell Nelson. “We joined Guardian Mortgage largely as a result of the focus on the client; team approach, melding internal systems and reducing time-to-close; and overall support provided to Guardian’s originators,” commented Showers. “Additionally, Guardian services its own loans and our clients will appreciate the ongoing relationship we are able to provide throughout the life of their loan.” Guardian Mortgage is headquartered in Plano, Texas. Sunflower Bank, its parent company, is the third largest bank headquartered in Colorado. Guardian Mortgage is building upon a foundation of 50+ years of residential lending and servicing by growing a solid presence across Colorado and beyond by attracting top talent. Visit Guardian’s newly redesigned website for more information.

Lender products and services

Plagued by Tolerance Cures? You’re not alone! Despite the clarity provided by TRID 2.0, our informal research indicates many lenders may be absorbing thousands of dollars in tolerance cures each year. Given the current origination environment, that is an expense lenders can ill afford to incur. Ready to eliminate this cost once and for all? IDS can help! Access our free white paper to learn what lender-recommended best practices you can adopt to ensure that the fees reported on the LE fall within the prescribed tolerance limits on the CD. For more information on how IDS can assist your organization with tolerances, please contact an IDS regional advisor at sales@idsdoc.com.

Quicken Loans Mortgage Services (QLMS) is an inaugural member of NAMB All-In, a revolutionary new product for brokers. NAMB All-In’s cloud-based platform includes a digital POS solution and a Calyx Wholesaler Marketplace that seamlessly connects brokers with premier lenders like Quicken Loans. The new Calyx-backed marketplace also frees up the 3.2 file, giving brokers the freedom to work with any lender in the industry. For questions, contact the QLMS experts who will walk you through all the components and show you all the advantages. QLMS’s status as an inaugural member of NAMB All-In clearly demonstrates that they’re best for brokers, and best for your business.

In today’s competitive market, recruiting and retaining top-tier talent is not just about how much LOs are compensated, it’s also about how often they’re paid. Just ask American Financial Network, which recently transitioned from semi-monthly to weekly payment of LO commissions with the help CompenSafe™an award-winning automated incentive compensation and sales management platform from LBAWare™. Now LOs and managers at all 125 AFN branches nationwide receive real-time commission information as soon as loans are funded. LBA Ware’s CompenSafe automates work that used to be done manually, freeing AFN accountants from time-intensive tasks like calculating and tracking commissions and dealing with compensation disputes and corrections. Schedule a demo to see how CompenSafe keeps your LOs engaged and inspired to do more.

“Is your future worth 50% of one commission? Todd Duncan is hosting his High Trust Sales Academy mortgage training event May 15-18th in Newport Beach, California. He’s been teaching this event for 26 years, and over 12,000 loan officers have successfully completed the training. The sole purpose for you to attend the High Trust Sales Academy is to create a successful blueprint for your business and your life. You deserve to be your absolute best and have a deep desire to make an impact in your clients’ lives. You need a plan, and the High Trust Sales Academy will give you the step-by-step process to make more money in less time with less stress. Register today.”

Wholesale & TPO news

Where does Elon Musk go for a home loan? Not to Melva & Lucy’s Home Loans on the corner. The answer is Morgan Stanley. (US banks made profits of $59.1 billion in the fourth quarter, marginally less than the amount in Q3 but 18.5% more than the amount in Q4 of 2017. The FDIC attributes the increase to lower taxation and higher operating revenue.)

I digress. The last time I heard a number, wholesale/brokers accounted for 10-15 percent of the overall residential lending pie. In a $1.5 trillion market that is $150-225 billion. There is a lot going on “in that space;” let’s take a random walk around the biz and see who’s doing what.

Angel Oak Prime Bridge announced yesterday that mortgage brokers now have access to its “suite of innovative fix-and-flip lending programs. This expansion into the wholesale channel gives brokers new options to meet borrower needs and grow their business. After a record setting 2018, Angel Oak Companies continues to seek new markets for growth in an otherwise challenging mortgage market.”

AIME is hosting an event March 6 in Southern California for brokers.

Citadel Servicing Corporation told its clients that all its products are now paying 103. “That’s right! 3-point Lender Paid Comp. is here! New buy up of 2:1. ODF Rates Reduced by .500

ODF Plus now paying up to 3 points YSP. Ability to waive Impounds!”

United Wholesale Mortgage has lowered its Elite M.I. rates. Brokers can take advantage of a lower payment for 640+ FICO borrowers. Elite M.I. is instant with no M.I. overlays saving brokers 3-7 days by eliminating the second underwrite. Price out Elite M.I. in UWM’s Easy Qualifier (EQ) as it does not show up in the pricing engines.

loanDepot Wholesale/Correspondent published its weekly newsletter which includes topics related to Freddie Mac rental income updates, 2018 tax return and W2 requirements, Equity Asset Program update and Trust Policy.

loanDepot updated its Jumbo Advantage matrix as follows: A Year to Date Profit & Loss statement is required when the borrower has self-employed income or loss that is considered in loan qualification. If the borrower has self-employed income that is not being considered in qualification, a P&L is not required. In addition, the VA Circular 26-18-30 announced new rules for Cash-Out Refinances that are effective for all applications taken on or after 2/15/2019. The VA established two categories for Cash-Out Refinances (non-IRRRLs). To review the updated matrix details, click the announcement link.

“Do you have a borrower that needs 85% LTV cash out or unlimited cash out to $2 Million? Parkside Lending has answers. If you have loan scenario’s, questions, or are not approved with Parkside, contact Dirk Nelson (925-303-9203).”

Did you know you can chat live with theLenders’ underwriters? “Get instant answers on your NON-QM questions and chat directly with the decision makers.”

Plaza Wholesale clients can now create and send disclosures for adjustable-rate mortgages (ARM) in BREEZE. All appropriate ARM disclosures will be included, as well as the Consumer Handbook on Adjustable-Rate Mortgages (CHARM) booklet.

loanDepot Wholesale posted its week ending January 11th newsletter with updates and industry information.

the Lender is starting off the new year with its 5 Non-QM product series. Contact Glen Danford for information.

Angel Oak now has a Bank Statement Review Team which will completely review statements, analyze deposits and calculate income for bank statement submissions. This means a more streamlined process to get your borrower to the closing table quickly.

Effective January 1, 2019, for all loans disclosed on or after 1/1/2019, the following LHFS Admin Fee schedule will apply to all wholesale loan submissions: $995 for Conventional, FHA and USDA Loans, $1,145 for all Expanded Niche, GSFA and Within ReachTM Products, $595 for FHA Streamlines and $0 for VA Products, excluding the VA Within ReachTM.

Citadel Servicing has introduced its Outside Dodd-Frank Plus Program for 5 to 35-unit properties.

Quicken Loans has a new interactive tool providing the power of The Answer. The Answer is like having the best and brightest loan officers, underwriters and technology experts from Quicken Loans in your office 24/7/365, ready to accurately answer thousands of questions and find solutions for loans that could fall out.

MWF Wholesale partners may request a Reconsideration of Value in the event there are major discrepancies and/or errors found that might affect the final opinion of value. It is important that all pertinent information be provided upfront upon initial submission. All pertinent information must be submitted to and carried out by the AMC:  Appraisers cannot accept requests made by any member of the loan production staff, nor are they able to communicate any data concerning the appraisal to any parties other than the AMC. Refer to Mortgage Works AMC’s Policies and Procedures for Requesting Appraisal Reconsideration of Value. To facilitate a request, utilize the “Appraisal Reconsideration” Link found on the MWF wholesale page.

UWM expanded its Easy Valuation program for Conventional Loans nationwide, revolutionizing the appraisal business with a faster, easier and less expensive way to assess a home’s value. Not only does Easy Valuation give borrowers a 50% chance at an appraisal waiver, it saves them time and money even if they don’t get one. The entire process can take as few as two business days and doesn’t cost more the $290.

And United Wholesale Mortgage introduced Exact Rule, a tool that enables mortgage brokers to outprice their competition by utilizing custom rates to the thousandths. This allows brokers to get pricing closer to the exact amount of closing fees, avoid principal reductions and experience less back and forth at the closing table. Exact Rate applies to purchases and refinances.

First Community Mortgage recently posted 2019-04 Wholesale Guideline Updates.

For quite some time MWF offers a “Professional Program”. This program allows for unique guidelines that are beneficial for borrowers newly entering the medical profession.

loanDepot Wholesale avoids cross channel conflict and “protects your Borrower from solicitation. Notifications are sent to our Origination Partners on any loan they originated in our servicing portfolio at several trigger points, providing opportunities to help previous borrowers with their next mortgage.”

Capital markets

Why are rates as low as they are? Money from overseas is coming our way (earn .1% on the German 10-year or 2.64% on ours?), and our economy isn’t going gangbusters (which keeps a cap on our rates). Yesterday the yield on U.S. 10-year Treasuries sank to 2.64% as investors found difficulty finding much solace from Fed Chair Jerome Powell’s first half of Congressional testimony. (The second half takes place today beginning at 8AM ET.) Powell’s comments fueled speculation that rate hikes are now on hold, saying the healthy economy has faced “crosscurrents and conflicting signals” that warrant a more patient approach from the Fed.

Internationally, the pound rallied to the highest level versus the euro in nearly two years as U.K. Prime Minister Theresa May confirmed to Parliament there was a path to delay Brexit, and the opposition Labor Party switched positions and seemed in favor of a second vote on the divorce from the continent. Separately, President Trump is in Vietnam to meet with North Korean Supreme Leader Kim at a second summit about a path to denuclearization.

Today began with the usual MBA Mortgage Applications for the week ending February 22 (+5.3%, adjusted for the holiday, with refis and purchases up nicely although refis dropped to 40% of overall activity). Next was the December Advance Goods Trade Balance ($79.5 billion, widest in a decade). At 10AM ET we receive a slew of data, notably January Pending Home Sales, December Factory Orders and Durable Goods Orders, and December Capital Goods Ordered and Shipped. Markets will appreciate the copious data points to digest. We begin today with Agency MBS prices roughly unchanged and the 10-year yielding 2.64%.

(Thank you to Shana C. for this one.)

I’m excited about the new TV show this autumn titled, “The Walking Dad.” It’s about a middle-aged guy walking around the house turning off lights and muttering that he’s “not made out of money.”

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, “How are You Going to Compete.” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.


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

Rob Chrisman