Feb. 3: Enterprise sales, LO jobs; staffing, compliance, tools; Angel Oak security; Feb. events & training; surprise jobs number moves rates

Fun with numbers! 1: the number of Chinese surveillance balloons over Montana. (That we know of.) Did you know that the last day of 2023 is 123123? (You heard it here first!) While we’re on random numbers, Atlanta has almost 25 thousand surveillance cameras, grabbing the honors as the most heavily surveilled city in the U.S. with 50 CCTV cameras for every 1,000 inhabitants. (“The research also suggests that there is little correlation between higher camera figures and lower crime indexes.”) Shifting to mortgage-related numbers, given the Fed news this week, overnight interest rates aren’t the same as 30-year mortgage rates, of course, but moves in interest rates impact a potential borrower’s ability to buy a home in a given price range. Here’s a handy-dandy chart for LOs to help borrowers to see how rates impact affordability. With generic rates in the 6’s for home loans, LOs are keenly interested in how that compares to, say, student loan rates. Federal student loans for undergraduates currently have an interest rate of 4.99 percent for the 2022-23 school year, while grad students have interest rates of 6.54 percent or 7.54 percent for unsubsidized loans or Direct PLUS loans, respectively. Private student loan interest rates range from 2 percent to 14 percent and are based primarily on one’s credit score. Keeping with the homeowner theme, today’s podcast can be found here and this week’s is sponsored by Milestones. Giving homeowners an all-inclusive homeownership experience including home value and equity monitoring, home maintenance reminders and how-to articles, cloud-based document storage, one-click access to hire professionals for various projects around the home, and much more.

Employment

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Are you a service-minded sales mastermind with a passion for affordable homeownership and down payment assistance? Then you’ll be right at home at Down Payment Resource! The award-winning technology provider is on the hunt for an experienced Enterprise Sales Executive to drive business growth and further its market penetration. Be a part of an expert team of housing industry veterans as they transform the housing finance ecosystem by helping mortgage and real estate professionals connect homebuyers with the financial assistance they need. Learn about the Enterprise Sales Executive role and other opportunities at Down Payment Resource.

NOVA® Home Loans has a rich history of financial strength and stability, and for over 40 years NOVA® has thrived in all market conditions. We are looking to have conversations with Regional & Branch managers as well as originators looking for a home built by Loan Officers for Loan Officers. We spend more to support our Loan Officers than our peers. At NOVA®, you receive dedicated resources for underwriting, processing, closing & funding, fulfillment, business development, credit services, marketing collateral, and more. To learn more about the NOVA® advantage that will help you close more loans, visit us & please reach out to Jenny Skaggs, Director of Recruiting & Corporate Engagement, 520.202.4102.”

If you’re ready to take your business to the next level, First Home Mortgage is ready for you. We are a FNMA/FHLMC/GNMA full-service residential lender licensed in 21 states, and we’ve excelled for over 30 years. First Home continues to expand across the entire east coast, and we’re looking for successful loan officers who want to level up. If you think you’ve plateaued, think again: You may just need the First Home Multiplier. Check out this video to hear from some of our top producers who have doubled and even tripled their business by leveraging our infrastructure and support systems. The average originator’s production grew by 92% from year one to year two leveraging the First Home infrastructure in the eight years preceding the 2020-2021 industry volume surge. If you’re ready to put the First Home Multiplier to the test, contact our president, Steve Lagana or 410-933-3100.”

You can’t fix tomorrow’s problems with yesterday’s technology. The good news is Canopy Mortgage created tomorrow’s technology. Canopy provides a better way where you gain ultimate control with its proprietary Loan Origination System. Canopy’s tech was developed by industry experts for top producers. An independent study by the STRATMOR Group recently found that Canopy’s tech reduces the cost to fund a loan by up to 35%: Finally a better way! A better business model that is sustainably good for every party involved in the mortgage process. Reach out to Josh Neumarker at Canopy Mortgage for more information (888-696-9076).

Draper and Kramer Mortgage Corp. announced that Matt Patterson has been named President. Patterson is an industry veteran and leader with 35 years of experience in mortgages who joined the company in 2014 as EVP of Business Development, and will focus on company operations while CEO Paul Lueken will continue to provide executive oversight.

Lender and broker software, products, & services

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“Here at MQMR, our hearts are full of love for compliance. ‘Roses are red, Violets are blue.
Compliance can be lonely, Especially if you work remotely.…And MQMR wants to be your one and only!’ As we approach Valentine’s day, MQMR is the solution for anyone looking for the “perfect match”. Our team of Professional Compliance Matchmakers will match you with one of our compliance experts.  Our team of compliance experts will help guide you with AML audits, Annual Subservicer Reviews, Compliance Support, Doc Custodian, Fair Lending Audits, GSE Applications, HMDA Analysis, Internal Audit, Loan Level Testing, Servicing QC, Vendor Management, and so much more! Click here to schedule a call with one of our Professional Compliance Matchmakers today.”

Ever find yourself playing a losing game? Today’s mortgage industry can feel like that! A Finite Game is one that has a defined ending, with clear winners and losers. An Infinite Game, on the other hand, goes on indefinitely. The object is to simply keep playing. To stand the test of time. To get up and play again the next day. And the day after that. Here are two steps to play the Infinite Game in today’s market: (Step 1) Pick a niche – e.g., financial advisor referrals, Hispanic or first-time homebuyers, etc. (Step 2) Dominate that niche as the #1 trusted advisor for that market. If you’re interested in that idea, click here to get started with your free trial of Momentifi’s 150+ homebuyer and referral partner education content pieces personally branded with your info. Team leaders and vendors can click here to inquire about an enterprise or strategic partnership with Momentifi.

“Receive FREE AIBUDS as a compliance decision maker who takes a demo with OPTIMIZE – Compliance and CE training with pricing flexibility and eliminates redundant training. Your IMB colleagues have seen the value from our unique software platform. Schedule a 15 min demo with Dave Olchek and optimize your educational compliance, decrease cost, and increase MLO happiness with less training. Optimize / www.MortgageEducation.com.”

“Get control over the cyclical nature of the market. Cycles come and go in the mortgage business – and sometimes they stick around longer than we’d like. Richey May Advisory can help you manage the ups and downs without adding or reducing headcount. As a nationally recognized mortgage industry leader, we have the specialized training to analyze problems and develop practical solutions for every facet of your operation, from accounting to underwriting. Does your accounting team need loan-level support? We can deploy experienced accountants to work alongside your team, so you can finish the year strong without adding staff. At Richey May, mortgage banking is at the core of our business. Our expertise comes from years of working with lenders, warehouse banks and financial institutions across the country. Reach out or visit us to learn how we can help you achieve a scalable, sustainable approach to managing market cycles.”

Training and events in February

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I know that I have been remiss in making updates, but a decent attempt at all the conferences this year can be found here.

Today at noon PT is the next edition of The Mortgage Collaborative’s Rundown with Rich Swerbinsky, and me. We’ll will be covering current events in the mortgage market for 30 minutes starting at noon PT in “The Rundown with Rich and Rob”!

There’s National MI’s upcoming February 2023 webinar sessions. Training topics cover a wide range of subjects. Find out The Basics of Underwriting the Self-Employed Borrower with Marianne Collins on Feb. 15 at 10am PT / 1pm ET

In fact, the private mortgage insurance companies certainly offer a fine set of classes: National MI University, the Enact’s course catalog of on-demand webinars, MGIC, Essent, Radian, and ARCH MI.

The new year is the ideal time for upskilling and earning your Real Estate Loan Compliance Certification will help you overcome the market downturn and fuel career growth. Register for BankersWeb training series, five sessions total beginning with Session 1 – The Lifecycle of a Mortgage Loan: Part One on Monday, February 6th at 12:00 PM Eastern; 9:00 AM Pacific.

Regulatory compliance counsel Michael Christians will explain the compliance requirements applicable to real estate loans. You will learn how to please borrowers while reducing liability for your institution. Can’t attend the live sessions? You can choose the self-paced certification option and get expert answers to your questions after the sessions.

This year TMBA’s annual Southern Secondary Market Conference February 6th – 7th, will bring together hundreds of real estate finance leaders and decision makers. Held at the Westin Houston Memorial City Hotel, all conference attendees are eligible to play in a Poker Run event. No poker playing experience is needed, the cards speak for themselves. TMBA’s Warehouse Conclave will be held in conjunction with the Southern Secondary Market Conference on February 6th from 12:00-2:00 pm. *Separate registration required.

Fannie Mae’s Senior Vice President and Chief Economist Doug Duncan says housing will lead the economy through what he considers will be a mild recession in 2023. Join the Economic Forecast Series Webinar, Tuesday, February 14th @ 1 p.m. ET, to hear Doug expand on that and the outlook for the housing market.

In Spokane, Washington, SAMP, on Wednesday evening, February 15th, will be hosting a dinner where I am honored to be speaking and answering questions. (For information, contact Staci Hardee.)

MBA Servicing Solutions Conference and Expo is February 21-24, 2023 in Orlando, FL. Take a look at what awaits you in Orlando so you can start making plans to attend MBA’s Servicing Solutions Conference & Expo.

MBA’s Servicing Solutions Conference & Expo, February 21-24 in Orlando, is where servicers have an opportunity to share information, connect with industry peers, and discover new direction to lead you on the roadmap. Don’t miss the General Session: Executive Perspectives – Leading through Change and Uncertainty to gain insight from top executives on how they led their organizations through the pandemic. Hear perspectives for a proactive approach to crisis preparedness, response to climate events, and how to build solutions resulting in greater resiliency.

Capital markets: yowza jobs numbers

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The secondary markets for mortgages is alive and well, for the most part. The latest example is Angel Oak Capital Advisors, LLC (“Angel Oak”) recently announcing the issuance of AOMT 2023-1, an approximately $580.5 million securitization backed in part by loans originated by Angel Oak affiliated lending companies. The senior tranche of the AOMT 2023-1 received a AAA rating from Fitch Ratings.

As markets continued to digest the Fed’s move from Wednesday (the Federal Open Market Committee voted unanimously to hike the fed funds rate by 25 basis points to a target range of 4.5 percent to 4.75 percent and signaled that the tightening cycle is not done), there were more rate hikes from the Hong Kong Monetary Authority, European Central Bank, and the Bank of England. The HKMA followed the Fed’s rate hike in customary fashion, while the ECB and BoE hiked by 50 basis points apiece. Despite the hikes, the central banks did show signs that their hiking cycles could quickly go from pricing pauses to pivots.

Separately, lenders took not that this week’s Primary Mortgage Market Survey from Freddie Mac saw mortgage rates decline for the fourth straight week. The average 30-year and 15-year rates declined 4 basis points and 3 basis points versus the prior week to 6.09 percent and 5.14 percent, respectively.

Big change in jobs but no big changes in earnings!? Today we’ve had the headline-grabbing January employment report. We learned that the U.S. economy added 517k jobs over the last month, totally blowing through the estimated 220k estimates. The unemployment rate fell to 3.4 percent and average hourly earnings rose 4.3 percent for the year, as expected. Later this morning brings the final January S&P Global Markets services PMI and ISM non-manufacturing PMI. After the data we begin the day with Agency MBS prices worse .250-.375 and the 10-year yielding 3.47 after closing yesterday at 3.40 percent.

On the first day, God created the dog and said, “Sit all day by the door of your house and bark at anyone who comes in or walks past. For this, I will give you a life span of twenty years.”

The dog said, “That’s a long time to be barking. How about only ten years and I’ll give you back the other ten?”

And God saw it was good.

On the second day, God created the monkey and said, “Entertain people, do tricks, and make them laugh. For this, I’ll give you a twenty-year life span.”

The monkey said, “Monkey tricks for twenty years? That’s a pretty long time to perform. How about I give you back ten like the dog did?”

And God, again saw it was good.

On the third day, God created the cow and said, “You must go into the field with the farmer all day long and suffer under the sun, have calves and give milk to support the farmer’s family. For this, I will give you a life span of sixty years.” The cow said, “That’s kind of a tough life you want me to live for sixty years. How about twenty and I’ll give back the other forty?”

And God agreed it was good. On the fourth day, God created humans and said, “Eat, sleep, play, marry and enjoy your life. For this, I’ll give you twenty years.”

But the human said, “Only twenty years? Could you possibly give me my twenty, the forty the cow gave back, the ten the monkey gave back, and the ten the dog gave back; that makes eighty, okay?”

“Okay,” said God, “You asked for it.”

So that is why for our first twenty years, we eat, sleep, play and enjoy ourselves. For the next forty years, we slave in the sun to support our family. For the next ten years, we do monkey tricks to entertain the grandchildren. And for the last ten years, we sit on the front porch and bark at everyone.

Life has now been explained to you. There is no need to thank me for this valuable information. I’m doing it as a public service. If you are looking for me, I will eating, slaving, doing monkey tricks, on the front porch.

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. “Productivity: More Important Than Ever” is the current blog. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2023 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Rob Chrisman