From the Bay Area Marcus L. writes, “I miss the days when Tiger King was the most controversial thing going on.” Everything is a controversy these days, including where the real estate market is heading. Supply is limited, demand is decent, case closed. Things are re-opening, but can people qualify for a loan? It is almost as if prognosticators (not procrastinators) want their forecasts to materialize right away. Many real estate markets around the nation were under-supplied going into the shutdown in mid-March, especially in low and mid-price levels. There wasn’t a lot of speculation taking place, and ATR was in place. Few will argue that the quality of borrowers was very good, and continues to be. But some prognosticators expect house price declines to be very possible once foreclosure moratoriums and forbearance wind down, despite promising signs during the economy’s re-opening. Stay tuned!
Jobs & transitions
“Home Point Financial is celebrating our five-year anniversary with record growth. According to Inside Mortgage Finance, we are now the second-largest wholesale mortgage lender in the U.S. with year-over-year growth of more than 400%. Home Point has also advanced to the thirteenth largest correspondent lender and is a Top 20 national mortgage lender across all production channels. Loan volume has nearly doubled each calendar year since the company’s launch and is expected to more than double to $50+ billion in 2020. To support our massive growth, we’re hiring 600 more associates before year’s end! We’re proud of our people, and consistently hear that Home Point shines because of the care we offer to each customer and every loan that our partners entrust to us. The exceptional performance of our associates during this uncertain time is a testament to the phenomenal culture here at Home Point—We Care. Join us!”
“In our ‘relentless pursuit of excellence,’ Trinity Oaks Mortgage is GROWING in DFW! We are seeking 8-10 passionate, dedicated Mortgage Loan Originators with a drive to succeed to join our team. TOM is a full service, independently owned mortgage banker headquartered in Red Oak, TX that puts a great emphasis on providing you with the tools, technology and support you are looking for to be successful. We have excellent in-house operations, so you can spend your time developing and closing loans. If you’re seeking a position with a growing, innovative company that values family, honest communication, 2nd Mile Service and generous love to our employees, we want to talk to you! Visit our website to learn more about Trinity Oaks, view job description and apply online, or contact Todd Reynolds to learn more.
Are you a mortgage expert looking for your next opportunity? Promontory MortgagePath LLC is expanding its Denver fulfillment center and looking for senior underwriters, senior processors, and senior closers eager to apply their talent and experience in new, inspired ways. Promontory MortgagePath is a dynamic, growing enterprise marrying trailblazing tech with lending expertise to create mortgage solutions unique in the market. Ops partners collaborate with the fintech development team and may have the opportunity to work remotely. Mortgage experts interested in an opportunity focused on their growth and development should send resumes to [email protected].
Celebrity Home Loans, “CHL,” is seeking to add an experienced Corporate Closing and Funding Manager to its team. This is a great opportunity for someone looking to advance their career in closing and funding operations. This role will provide support and oversight in systematic manner throughout the company while managing corporate risks, reporting into the Company’s SVP, Corporate Operations. The position can be located at any of its many locations through the US, or virtually. A demonstrated history serving in roles in residential mortgage closing and funding operations as well as experience in mortgage operations or closing management, closing FNMA, FHLMC, Jumbo FHA, VA, and Bond programs is highly desired. CHL is licensed in 39 states and has a 50-state licensing strategy it intends to complete by 2021. All confidential inquiries should be directed to Michele Skibinski.
In theme with the 2020 Gear Up For Growth motto, Stearns Wholesale Lending has announced the addition of two new members to the leadership team, Drew Dyet, RVP Wholesale Sales and David Routen, VP Wholesale National Sales. Dyet comes to Stearns with close to 20 years of industry experience holding senior and channel leadership positions at leading wholesalers and retailers. Drew will be taking leadership of the Southwest Territory. Routen’s experience includes 20 years in sales and support leadership roles at top retail and wholesale lenders. The mission of these roles is to guide, grow and support the Account Executives as well as Broker and Non-Delegated Correspondent customers. For more information, or to inquire about sales and operational positions with Stearns Wholesale Lending, CLICK HERE.
Freddie Mac announced the appointment of Christian Lown as EVP and CFO, effective June 15, 2020.
The Mortgage Bankers Association (MBA) named Michael Briggs as its new SVP and general counsel.
ServiceLink has appointed Yvette Gilmore as its SVP of servicing product strategy, responsible for developing ServiceLink’s products and services that support strategic servicer client initiatives and supporting ServiceLink’s EXOS One Marketplace that is used for disposing of properties in default.
Lender services and products
“It’s no secret that Fannie Mae, Freddie Mac, and Ginnie Mae tickets are a hot commodity these days. Whether you have recently made the decision to pursue GSE approval or already started the process, knowing what you don’t know is really hard to know! And that’s okay because MQMR can help. MQMR’s team of seasoned experts will guide you through the process by discussing in detail the application requirements, assessing, and determining immediate areas of priority or concern, and providing identification/implementation support of required and specific due diligence tasks necessary for approval. Why go through the process alone when you can work with the experts at MQMR to determine the best and most efficient way forward? Click here for more information or to schedule a call to discuss.”
The current environment has only accelerated the need for lenders to deploy digital engagement capabilities to ensure their ongoing success. Fiserv was recently named best digital mortgage company by FinTech Breakthrough. Its Mortgage Director solution is the most comprehensive digital lending ecosystem available. By automating best practices workflows and collecting and validating data more efficiently, Mortgage Director allows lenders to concentrate on those areas where personal interaction is most needed. It also reduces risk by addressing errors to ensure loan quality throughout the process. So, if you are looking to lower your costs, comply with investor requirements and increase borrower satisfaction, email Nicole Valentin-Smith, Director, Client Management, Digital Lending and Origination at Fiserv today!
Are you ready for VA IRRRL and FHA Streamline refinance opportunities in this market? Learn how to efficiently submit your files once for a final approval! Join Freedom Mortgage Wholesale for one or more of our live webinar training sessions on VA IRRRL or FHA Streamline mortgage products and origination processes. Ideal for new or experienced government originators. Sign up for a VA IRRRL or FHA Streamline webinar June 5 (VA IRRRL), June 8 (FHA SL), June 10 (VA IRRRL), June 12 (FHA SL), June 15 (VA IRRRL) and June 19 (FHA SL).
We’ve all heard about the increased forbearance numbers lately. Originators, now more than ever, need to be partnering with correspondent investors that have GNMA focused servicing capabilities to ensure their FHA Compare Ratio doesn’t increase during these times. For example, TMS has reached over 200,000 loans being serviced, while having lower GNMA forbearance rates compared to other investors and banks. Learn more about TMSCorrespondent and find out why over 500 other lenders are selling loans to TMS today. Interested in more information about its subservicing options? Check it out here.
Sample of wholesaler changes
United Wholesale addressed cash out: the 1 percent adjustment is gone for conventional and government loans, “back to normal.” In its video, UWM also addressed forbearance, reminded brokers that it requires six straight payments from borrowers if the borrower missed a payment. UWM also adjusted its private MI premiums for borrower paid mortgage insurance as of June 1.
Orion Lending removed all COVID-19 DTI and Reserve overlays for FICO Scores ≥ 720 on all programs and products.
loanDepot’s Weekly Announcement covers topics related to Fannie Mae and Freddie Mac – Forbearance Guidance, loanDepot FHA Lending Guide – Gift Funds and Radian’s Announcement #2020-6.
Mountain West Financial has established policy and procedures that addresses all Change of Circumstance proper protocol. Based on current COVID-19 guidelines, the appraisal rush fee must adhere to those established Change of Circumstance guidelines and parameters. The CFPB is temporarily allowing an appraisal rush fee to be considered a valid Change of Circumstance and can be included in a redisclosure to the borrower.
PRMG issued a Profile Update stating the Down Payment Protection Option (PRMG +Plus) is no longer available on Agency or Government Products.
NEWFI Wholesale offers a range of products which include: CASH-OUT, NON-QM, JUMBO, PIGGYBACK, CONV, FHA and VA. Loan options in multiple states including AZ, CA, CO, FL, IL, MD, MI, NJ, OH, OR, PA, UT and WA.
Land Home Financial Services offers Digital Closings. Faster Closings providing eClosings that can be signed and notarized anywhere, anytime. And Automates Funding Authorization for Quicker Funding Turnaround. Enables reduced costs and Enhanced Securities which includes
Documents RESPA Section 9 Compliance. Also, eClosings allows borrowers to get all closing documents in advance of closing to create a better consumer experience.
Plaza Home Mortgage offers a COVID-19 Temporary Credit Policy Document, which is continuously updated with the latest changes to its credit guidelines. To access the most current version of the document, simply go to the Resource Center, expand the UW Guidelines folder on the left-hand side of the screen, and select COVID-19 Temporary Credit Policy.
Caliber Home Loans announced it will no longer accept locks for loans originated under the Conventional Doctor/Physician Loan Fixed and ARM program. Loans with a Commitment Confirmation dated on or before May 5, 2020 will remain eligible for purchase by Caliber. The Conventional Doctor/Physician Loan Fixed and ARM Program Summary will remain in AllRegs until the pipeline is cleared.
The deluge of debt hitting the fixed-income markets (from our Treasury Department, municipalities, and corporations) done much to drive down prices and thus drive up rates. Very interesting, as it indicates tremendous demand for high quality debt. (For example, Costco recently sold some 10-year notes yielding 1.62 percent!) Just knowing that the Fed could do something is almost the same as the Fed actually doing it.
April’s data confirmed what we all knew: that consumer spending fell dramatically as job cuts deepened. Personal income and spending numbers moved in opposite directions as the former increased 10.5 percent due to stimulus checks and supplemental unemployment insurance benefits while the later fell 13.2 percent. As a result, the personal savings rate jumped from 12.7 percent in March to 33.0 percent in April as households prepared for worsening conditions. Shipments of durable goods fell 17.7 percent and new orders dropped 17.2 percent with the majority of categories experiencing declines. New claims for unemployment remained historically high at 2.1 million for the week ending May 23, however they continue to trend down as backlogs are cleared. Mortgages remain a bright side in the data with purchase applications increasing 8.6 percent for the week ending May, buoyed by a small uptick in new home sales in April and low interest rates.
Despite the record breaking negative economic data recently released from April the May consumer confidence rose in May pausing the downward slide that began in March. Make no mistake; consumers remained concerned about the current economic outlook as their assessment of business and labor market conditions declined to a seven-year low. Unemployment claims are trending in the right direction and continuing claims fell 3.9 million for the week ending May 16; the first decline since the beginning of the pandemic. Other data released last week continues to shine light on just how bad things were in April. Durable goods orders fell 17.2 percent despite a mere 0.3 percent decline in computers & electronics as employers shifted staff to work from home. The second estimate of Q1 GDP was revised from -4.8 percent to -5.0 percent due to a larger decline in inventories and the most recent data still suggest a larger and potentially historic decline for the second quarter.
Treasury yields and MBS prices largely ignored the continued protesting/riots, or demonstrations/violence/gatherings (use whatever word you like), pulling back slightly (usually indicative of good news) on the prospect of bolstered economic benefits as lockdowns ease. With no domestic economic data of note, the most in the way of meaningful news for mortgage rates was a press conference from Fed Chair Powell, during which he hinted at even lower mortgage rates in the future. Additionally, he expressed worry about the possibility of a second round of infections, which he said could bring a longer and more feeble recovery.
It’s a whole new day for market movement. Mortgage applications decreased 3.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 29, 2020. This week’s results included an adjustment for the Memorial Day holiday. We’ve also had May ADP employment (down “only” 2.76 million – is the worst behind us?). Later this morning brings the final May reading for Markit Services PMI, ISM Nonmanufacturing PMI for May, and April factory orders. The Desk of the NY Fed will conduct two FedTrade purchase operations totaling up to $4.47 billion starting with up to $1.5 billion GNII 2.5 percent and 3 percent followed by up to $2.97 billion UMBS30 2 percent through 3 percent. We begin the day with Agency MBS prices worse/down a tick or two and the 10-year yielding .71 after closing yesterday at 0.68 percent after the better-than-expected ADP employment number.
During a virtual interview, a recruiter asks a recent college graduate, “What starting salary are you looking for?”
The applicant replies, “In the range of $125,000 a year, depending on the benefits package.”
The recruiter says, “Well, what would you say to a package of 5 weeks’ vacation, 14 paid holidays, full medical and dental, company matching retirement fund to 50% of salary, and a company car leased every two years – say, a red Corvette?”
The applicant stares into the camera and exclaims, “Wow! Are you kidding?”
The recruiter replies, “Yeah, but you started it.”
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, “Reducing Friction”, focused on operations changes. If you have the 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. 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 2020 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.)