Daily Mortgage News & Commentary

July 13: MLO jobs; lock & shop, jumbo, non-QM, appraisal tools; STRATMOR tech study; events & webinars; ugh: inflation up, apps down

Sue W. writes, “After I say, ‘That’s crazy’ twice, please wrap up your story.” There are a lot of stories out there now as residential lenders tighten their belts, their payrolls, and their expenses in the face of rising rates, the worst inflation since 1981, and per loan costs of over $10,000. Hey, corporate has taken a hit, branches have taken a hit… is it time for LO comp to take one? Time will tell, but meanwhile ops staff are grappling with a number of issues. Along those lines, anyone trying to retrieve their collateral from the smoking ruins of First Guaranty Mortgage should try (no guarantees!) reaching out to all these, with an air bill, there are signs of success: Santa Ana Custody Requests, Correspondent Collateral Return, Nelida Parrish, Imelda Flores-E, Steven-E Willard, Christopher Ma, or Kimberly Hem. Good luck! Others are in survival mode. loanDepot (high stock price of over $26 per share in March of 2021, now trading at $1.70 per share, a 93 percent drop) sent out a note discussing things that every lender should be/says they’re doing, namely, “Building on foundation of strong balance sheet and liquidity, downsizing to align with rapidly changing market conditions; focusing mortgage lending on purchase transactions while serving increasingly diverse communities across the country, simplifying organizational structure, with increased focus on client service, quality, automation and operating leverage…” (Today’s podcast is available here and is sponsored by SimpleNexus, an nCino company and award-winning developer of mobile-first technology for the modern mortgage lender.)

Jobs, a transition, and an unfortunate death

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Homeowners aren’t the only ones dealing with the stress of a competitive market. Loan officers are too which is why LOs are turning to New American Funding to make decisions more strategically and work more efficiently. This includes support from a complete condo approval desk, multiple Jumbo and Non-QM outlets, selling directly to agencies with no overlays, and underwriting turn times in 24 hours or less. Loan officers are also tapping into new tech-forward processes for loan closings, helping them reduce time at the closing table and move on to the next one. In fact, these full e-close and hybrid packages allow borrowers in multiple states to sign documents digitally. If you’re ready to scale and grow your book of business, we’d love to talk. Contact  Jordyn Dexter today! 800-450-2010 x7651. EOE

When the going gets tough, the tough keep innovating. There’s no doubt today’s market has created new obstacles. Great lenders, however, find ways to push forward regardless, and Embrace Home Loans is doing just that. Right now, the company’s core value of innovation is fostering growth and excitement through its state-of-the-art eSNAPP mobile app, which is revolutionizing the way borrowers get mortgages. “eSNAPP gives our customers the power to choose when, where and how they want to interact with us, even letting them upload documents and sign disclosures while on the go,” says Steve Adamo, the company’s president, national retail production. “It also gives our loan officers greater flexibility to generate business in a more challenging market. In times like these, our core values, our teammates, and our customers mean everything to us.” Want to get in on the excitement? Embrace is hiring! For more info, contact Adamo at 401-524-5733.

LendArch, “which enables mortgage firms to improve their processes and technology strategies while creating improved borrower experiences,” announced Karthik Kumar has joined the company as executive vice president and chief operating officer to lead operations as the company continues to create game-changing mortgage technologies that digitize the entire loan origination process. “Karthik is the ideal leader to help us continue to disrupt the real estate finance industry,” LendArch Founder and CEO Tammy Richards said.

Our sympathies go out to the family of Ken Witte who tragically died at 57 apparently from slipping on some wet pavement. A mainstay of the Georgia mortgage banking community, he was a good guy and will be missed.

Lender and broker products, software, and services

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“These are serious times. We created the industry’s only Warehouse Management System (WMS) to empower mortgage bankers to better utilize their warehouse facilities to achieve strategic objectives, whether that’s specific funding targets, optimal ROE or lowest cost of capital. And we automate processes for funding through loan sale to maximize efficiency for all parties to these transactions. We are significantly reducing costs for our clients. There’s a better way to fund loans. We’re delivering it. Contact us for info, a demo or savings analysis, or request a meeting at Western Secondary. It’s time to simplify, streamline and save with OptiFunder.”

Do you REALLY understand appraisal reports? Do you wonder how comps are chosen, and what appraisers consider when determining a property’s value? Ever have to look up new terminology? As part of our Lender Resource Series, we offer “How to Read an Appraisal Report,and feel free to bookmark it for future reference. Brought to you by Triserv, a 50-state AMC that has client-specific, dedicated teams on both coasts offering high-touch, personalized service. To find out more, contact Triserv Appraisal Management Solutions.”

Beat the competition with an Up to $450 Appraisal Fee Credit from LoanStream! Close more loans and win more clients with this Non-QM submission special through July 31st, 2022. Good for Purchase, Refinance and Cash-Out. Contact your AE about this limited time offer! Plus, why settle for an old TPO portal when you have access to The Lounge! Submit, Price, Disclose and Lock your loan in minutes! Get Approved to take advantage of everything The Lounge has to offer.

Looking for more competitive Jumbo pricing? loanDepot Wholesale’s new Jumbo Advantage Express SELECT program is a subset of the existing Jumbo Advantage Express program, with sharper pricing. Program includes 1-unit primary residence purchases with loan amounts starting at $1 over the national conforming loan limit and up to $2,000,000. Maximum 80% DTI, minimum 720 credit score, and maximum 43% DTI. Income per DU and FNMA Day One Certainty is eligible for income, assets, and employment. 30-year fixed rate terms. Get your Borrowers the right loan at the most competitive rate. Check out Jumbo Advantage Express SELECT and contact your Account Executive today!

The debate on whether pineapple is an acceptable pizza topping has been raging since 1962. While some pairings are destined to spark controversy, others are a no-brainer. Case in point: Sales Boomerang and Mortgage Coach have merged to offer lenders the best in borrower conversion and retention. By combining borrower intelligence and a powerful advice engine, Sales Boomerang and Mortgage Coach positions lenders to reach borrowers with the right information at the right time, empowering borrowers to build wealth through homeownership by helping them select the best mortgage strategy for their unique housing needs. See how Sales Boomerang and Mortgage Coach helped NEO Home Loans win over rate shoppers and close $10.7M in additional volume in Q1 2022 by downloading the free case study.

Lock and Shop loan programs have become a popular competitive offering in today’s volatile market. Homebuyers are seeking rate protection, and they want to be able to react instantly with an offer given the limited housing inventory. Lenders should be mindful, however, of the way they structure their Lock and Shop loan programs to avoid falling victim to common pitfalls. By working with a knowledgeable hedging advisory team to institute effective policies and rules, you can establish a Lock and Shop program that fits your unique goals and gives your customers peace of mind. Learn more in Optimal Blue’s recent blog post, Lock and Shop Strategies in Volatile Markets.

At Richey May we dig in and go deep. We have been focused on the mortgage banking industry for over 35 years. It’s where we came from and it’s what we know. This singular intent has created a full suite of services and products designed specifically for mortgage banking leaders by people who truly know the ins and outs of your operations. Our goal is to equip mortgage leaders with the best, whether that means you are utilizing our game-changing platforms or utilizing our experts as an extension of your team, so you can accomplish your goals more easily and stay ahead of the curve. From audit and tax to accounting services, cybersecurity to intelligent automation, and business intelligence, we have you covered. Contact our experts today to learn more about how we can help you reach your goals.”

STRATMOR Technology Insight Study

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Lenders, we’ve extended the deadline to participate in STRATMOR Group’s 2022 Technology Insight® Study’s Systems Survey on CRM, Point of Sale, Origination, Closing and collaboration tools: all the mortgage technology solutions available in the market today. Lenders who participate will receive the report for this section of the study for free; complete the three-part series of surveys in this study and you’ll have the data for the entire 2022 Technology Insight® Study for the investment of your time. Be part of this important research and rate the systems you’re using!

Events, training, education: you can’t say you don’t have the time

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Our industry is stronger when we are united! Join your fellow industry colleagues who have partnered the MBA and are taking advantage of free MBA webinars, select research offerings, self-study education courses and more. With MBA, you will have the backing of a trusted name and endless resources. Your MBA membership grants you access to education, research, committees, and informational webinars that are important to you now. Our membership special expires soon! Join MBA at our 2022 dues rate to enjoy member benefits through the close of the 2023 membership year. That is 15 months for the cost of 12 months. Let’s talk about how to make our membership work for you. We are stronger together! Call or email Laura Hopkins at (202) 557-2757.

There’s Optimal Blue’s webinar, Hedging 101: The Benefits of Mandatory Delivery. On Thursday, July 14, at noon ET, pipeline hedging experts Mark Teteris, CMB, and Jeff McCarty will walk attendees through the theories behind hedging practices, various hedging vehicles, and strategies to employ during market fluctuations. Save your seat today.

Maxwell & TMC present “2H 2022 Outlook: Managing Rising Rates, Declining Volume & the Possible Recession Ahead” on Thursday, 7/14 @ 4PM ET. Mortgage solutions provider Maxwell is teaming up with TMC to dig into where the biggest challenges lie in the remainder of the year. Join the panel of experts, including former Docutech CEO Amy Brandt, Richey May Director of Consulting Services Seth Sprague, and members of Maxwell leadership. Click here to register.

This Friday at 1PM MT is the next edition of The Mortgage Collaborative’s Rundown with Rich and Rob. 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”!

You are invited to dinner at the Western Secondary Market Conference! That’s right, the All-Attendee Party that is held on the first night, July 25th will include a variety of food stations for dinner, full hosted bars, and a night of fun listening to the band Yachty by Nature!! Register for the conference today and don’t miss it!

Margin compression is here, and Snapdocs is ready to help. Join Snapdocs and leading lenders on Thursday, July 28th at 10AM PT for a discussion on the recent market shift and how Snapdocs has increased cost savings.

In Grand Rapids, Michigan, we have the Michigan Mortgage Lenders Association Annual Lending Conference August 3-5. “We have nationally recognized industry and motivational speakers. Learn from them and get the motivation, inspiration, and insight to apply to your business to bring it to the next level. We also have a full schedule of educational sessions, social receptions, and indulgent dinners. We did build in time to make those important business connections too, and some free time to catch up on work, or just relax at the resort.

CMLA is the premier association for professionals in the mortgage lending industry in Colorado and the Rocky Mountain region. Register for the 2022 CMLA Convention, August 3-5, and “celebrate and showcase what makes us valuable to our members and the industry. We are ADVOCACY, we are EDUCATION, we are COMMUNITY, and we are CONNECTION.”

Capital markets

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Key inflation data comes out today. Inflation at the consumer level, as measured by the Consumer Price Index, continued to rise in June (+1.3 percent, +.7 percent ex-food and energy, +9.1 percent year over year!), hitting a fresh pandemic peak that likely keeps the Federal Reserve on path for another big interest-rate hike later this month. The June figures reflect higher gasoline and elevated food costs. Fortunately, fuel prices have started to ease, suggesting the CPI should begin to slow in the July data and we can say peak inflation is behind us. There already is some downward pressure on inflation as bloated retail inventories lead to discounts and used-car prices soften. While inflation was the headline today, don’t forget about recession fears and global turmoil, including Russia’s war on Ukraine.

Ahead of CPI, we saw that mortgage applications decreased for the second consecutive week, this time 1.7 percent from one week earlier, according to data from MBA. After yesterday’s $33 billion 10-year note reopening was met with weaker demand than the previous day’s 3-year note sale, Treasury will auction $19 billion reopened 30-year bonds this afternoon. The Fed will then release the latest Beige Book ahead of the July 26/27 FOMC meeting. The NY Fed Desk will purchase up to $924 million UMBS30 4 percent through 5 percent from early payoffs. After the increased inflation data we see Agency MBS prices worse .375-.50 and the 10-year yielding 3.03 after closing yesterday at 2.96 percent.

(Warning: rated R. No complaints, please, for lack of taste. But I figured that since I’m in North Carolina…)

Clem was small game hunting in the woods right around the border area of North Carolina, South Carolina, and Georgia.

He had just shot a possum and was putting it in his game bag when the game warden approached. The game warden says, “Whatcha got there, son?”

Clem says, “Just doin’ a little hunting. I got me a couple squirrels, a rabbit, and this here possum.”

The game warden grabs the possum, sticks his finger up its rump, sniffs it, the says, “This here possum is from is from Georgia, you got a Georgia hunting license boy?” Clem pulls out his Georgia license and hands it over.

The game warden then grabbed a squirrel out of his bag, sticks a finger up it’s a$s, sniffs it, and say, “This here squirrel is from South Carolina, you got a South Carolina hunting license boy?” Clem pulls out his South Carolina license and hands it over.

The game warden then grabbed the rabbit, stuck his finger up its rump, sniffed it, and says, This here rabbit is from North Carolina, you got a North Carolina hunting license boy?” Clem pulls out his North Carolina hunting license and hands it over.

The game warden is finally satisfied that his paperwork is in order. He gives it all back to Clem and says, “Where are you from boy?”

Clem pulls his pants down, turns around and says, “Why don’t you tell me!”

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 titled, “Owning a Home: The Dream is Alive and Well.” 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 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.)