June 6: VP Finance/Controller, MLO jobs; AI, compliance, MSR, processing tools; Non-QM & jumbo changes

As servicing rights continue to be sold, and residential lender layoffs are rampant, here’s a quick reminder that anyone displaced can post their resume for free here; employers can view all resumes for a flat $75 for several months. Today I am passing through Chicago to the Indiana MBA conference. Unfortunately Chicago has the dubious distinction of being on the List of Top 10 Metro Areas where home prices are down the most. (Toledo, Rochester, and Detroit make up the top three.) Did you know that in 2020, there were the most first-time home buyers ever in history at 2.38 million? Interestingly the average age for a first-time homebuyer is 36 years old. What kind of customer experience are lenders offering these borrowers? In turbulent times like these, employees’ eyes and ears are tuned into what their leadership says and does. Research consistently shows that a focus on the employee experience (EX) and employee engagement results in higher revenues and productivity, better talent retention and recruitment, higher overall business growth and ultimately, happier customers. What should mortgage industry leaders be saying and doing to ensure a great employee experience? Check out the latest Customer Experience Tip by STRATMOR Group Sr. Advisor Sue Woodard with EX and engagement strategies for lenders. (Today’s podcast is available here. Want to know how lenders of all sizes can benefit from cutting-edge technologies and automation? Learn more about Black Knight and how the innovative solutions they provide are transforming the industry at www.blackknightinc.com.)

Employment & transitions


Ascend Companies Inc, a leading portfolio of data and professional services companies, in the mortgage industry is looking for a Vice President of Finance or Strategically-minded Controller to help guide its finance department as it rapidly diversifies its product portfolio and consolidates across subsidiaries. Would you like to work with a firm that’s survived and thrived across just about every kind of mortgage market you can imagine since 1993? Working closely with a seasoned leadership team that prides itself on humor, pragmatism, and the big picture, you can bring nuts-and-bolts accounting acumen to bear while cultivating your leadership skills and strategic vision. This is a remote, work-from-home, position from anywhere in the US, with minimal travel requirements. CPA license, NetSuite experience, required. Confidential inquiries should be sent to Blake Matheson, CEO.

First Guaranty Mortgage Corporation (NMLS #2917) is pleased to announce two new additions to its executive team. Marianne Kozak joins the company as Executive Vice President, TPO Production, and Thomas Ramm will lead the Capital Markets and Secondary Group as Executive Vice President, Capital Markets. With over 28 years of experience in the housing industry and a focused concentration in TPO originations, Kozak is well-positioned to continue expanding Maverick Solutions, FGMC’s proprietary Non-QM product suite. A polished executive with 25+ years’ experience in Capital Market functions, Ramm brings expertise in all Capital and Secondary Markets areas, including multi-channel dynamic pricing, hedging, and valuation activities. Kozak and Ramm have worked at a tremendous scale and are integral to FGMC’s continued growth. Interested in joining FGMC? Check out our current openings!

M&T Bank recently merged with Peoples United Bank, making it a combined $200 billion banking franchise serving customers from Virginia to Maine. We are looking to expand our origination team across the footprint, with emphasis on the New England market. Originators enjoy a robust and competitively priced product suite including traditional agency product, plus jumbo, HELOC, construction, and affordable lending programs. In addition to self-source, originators are integral to our community-based partnership model and leverage our 1,000+ branches for business generation. We’re also looking for top mortgage technologists to help us continue to focus on providing a great digital experience for customers and employees. Now is a great time to join our 22,000 strong team a make a career with a bank that understands what’s important. Contact Rico Tempestoso for more details. M&T Bank Corporation is an Equal Opportunity/Affirmative Action Employer, including disabilities and veterans. Member FDIC. NMLS ID# 381076.”

Lender & broker software, services, and programs


eClosings give your customers more time to enjoy their favorite summer activities. But the benefits don’t stop there. eClosings also offer lenders improved operational efficiency, greater data integrity, and faster delivery of loans to the secondary market. Get a crash course on eClose (and your morning caffeine fix) at the MISMO Spring Summit in Charleston this week during the Coffee Talk session on Wednesday, June 8th at 8 am ET. Moderated by Simple Nexus’ eClose expert, Jay Arneja, the discussion will cover each step of the eClose process and explore which technologies offer the best return on innovation. Swing by to learn more, then see for yourself how Simple Nexus hybrid and fully digital eClose can drive efficiency for your business.

Cloud-based LoanMAPS, a fully integrated digital processing and underwriting system, will eliminate your need for a POS, a LOS, a CRM, report writer, and income calculator. Do you know your costs of your full-time employee? Does your Fintech truly improve their work process and reduce your cost to produce? LoanMAPS does. With LoanMAPS you can have confidence you will start the loan with an agency compliant AUS underwrite, and our workflow will have entry level mortgage bankers closing in no time! “LoanMAPS is not about replacing people, it is about using technology to its fullest potential so that your employees can reach theirs.” – Take3Tech! In conjunction with our partner DocMagic, users can finish closing documents in 15 minutes. See more about how you can reduce your cost to close with the LoanMAPS Closing Module! See all the time and cost saving features of LoanMAPS by requesting a demo today.

5.4 million new business applications were filed in 2021, surpassing the record in 2020 of 4.4 million. These business owners are underserved by conforming loan programs. Fortunately, non-QM lenders have programs designed to address this gap. Bring your deals, scenarios and questions as National Mortgage Professional Magazine presents a Deal Desk featuring Angel Oak’s Bank Statement Product. Join this interactive forum where brokers and originators share deals and scenarios. Deal Desks are informative and deal-making. Learn how to help self-employed borrowers become homeowners. Bank Statement loans offer powerful solutions for self-employed borrowers and are among the most popular non-QM programs today. Why? Because they help you qualify more borrowers, increase the buying power of those borrowers and are easy! Register here to join us Wednesday, June 8 at 2 pm ET / 11 am PT as Carlos Betancourt, Senior AE Angel Oak Mortgage Solutions responds to your questions and scenarios.

It’s been a wild ride with rate hikes dampening origination volume and fueling MSR sales. Nothing stays the same for very long, so it helps to have a partner that can roll up their sleeves and help you tame the industry’s jungle of complexity. That’s where Computershare Loan Services (CLS) comes in. With CLS, you get an extension of your team that helps you stay one step ahead. Learn how CLS can help you lighten the load with their full range of services: co-issue MSR acquisitionloan servicingend-to-end & component fulfillment, and their mortgage cooperativeContact CLS to find out how they can help your business thrive, in any market.

Don’t wait another day: reach out to Richey May today to see the most popular BI platform in the mortgage market for three years running, RM Analyze. With 100% of fully implemented customers renewing year over year, Richey May’s RM Analyze is business intelligence designed by and for mortgage industry experts. Our platform consolidates data from every department and every piece of software you use. It provides just the right reporting from the C-suite to the front line, plus the functionality to build visually engaging reports on key indicators. Bonus: Our analysts have deep mortgage experience, so you don’t need to train us on your business. Get the cross-functional data, user-friendly dashboards, and real-time analysis you need. Contact us today for a walk-through and custom implementation plan.

This is a critical time for the CFPB and other agencies as the number of foreclosure cases are projected to be higher than the industry has seen in over a decade. The CFPB’s heightened scrutiny of mortgage servicers’ interactions with distressed borrowers means it is imperative for servicers to communicate clearly with borrowers and resolve defaults through the lens of fair and equitable servicing practices. At the same time, servicers must have the agility to implement new laws with little to no warning, as was the case with a recent update to New Mexico’s pre-foreclosure requirements. Covius Compliance Solutions is proactive in keeping current with legal and regulatory changes. Stay ahead of the curve with an informed partner like Covius Compliance Solutions.

AI and automation are transforming the mortgage industry. Companies like NMB, PRMG, and Assurance Financial are using platforms like Capacity to bring AI to their teams, increasing productivity. Originators use data from many external sources to meet the regulatory requirements during the loan process. The time-consuming task of manually searching contracts, bank statements, loan applications, and guidelines is super inefficient. Using mortgage automation tech like Capacity frees loan officers from tedious tasks and shoulder taps, giving them more time to build relationships–and close loans faster. Capacity correctly and instantly answers more than 90% of all questions without any human intervention, 24/7/365. Ready to see the power of the platform? Request a demo to learn more.

Non-Agency news tidbits


Last week I attended the IMN Non-QM Forum in Southern California, and the talk revolved around uniform underwriting, the validity of bank statements, considerations with warehouse banks and securitization platforms, and the general increase in volume. Let’s take a random look at what lenders and investors are doing in the Non-QM, jumbo, and general non-Agency programs.

Wells Fargo Funding expanded its rental income documentation policy for Non-Conforming Loans by eliminating the requirement for three months’ canceled checks, bank statements, or rent rolls as proof of receipt of rental payment when using rental income to qualify. Access Wells Fargo Funding Newsflash C22-014nc for details.

loanDepot Wholesale jumbo Advantage EXPRESS and Advantage EXPRESS FLEX programs have been expanded to allow Non-Warrantable Condominiums Projects with more than one non-warrantable attribute require a Second Level Review. Refer to Advantage Matrices and Lending Guides for full details.

HomeXpress has new, enhanced underwriting guidelines allowing 80% LTV for 1×30. Providing flexible home ownership solutions to borrowers, learn more about HomeXpress’ PrimeX, CoreX, and Investor/DSCR loan programs.

A&D Mortgage announced Non-QM LLPA Improvements for Low FICOs that could improve rates up to 0.750%. Additionally, several key parts of A&D Mortgage Super Prime program are sporting lower Loan Level Price Adjustments.

First Community Mortgage updated guidelines on its Jumbo Summit/Peak, effective for all loans locked on or after May 16, 2022. Details are posted in FCM Wholesale Announcement 2022-20.

loanDepot Wholesale’s jumbo Advantage Express and Advantage Express FLEX (Non-QM) programs have been expanded to allow Non-Warrantable Condominiums. 30 Year Fixed Rate only, 10% LTV reduction from program maximum, Primary and Second Homes only, No Cash-out Refinance, Texas Purchases only, One non-warrantable attribute is generally permitted. Projects with more than one non-warrantable attribute require a Second Level Review.

A&D Mortgage accepts verifiable cryptocurrency for down payments, closing costs, and reserves for all non-QM loans. Learn how your clients can use Crypto, Contact A&D Mortgage for information on Decrypting, how to use Crypto Currency for Non-QM loans.

Effective 5/19/22, PRMG has temporarily suspended its Sapphire Jumbo Product.

40 is the new 30 with Excelerate Capital. 40-year term loans now available, fully amortized for 480 months.

First Community Mortgage updated AUS guidelines on its Jumbo Elite AUS/Elite Plus product. Information relates to virtual currency, incentive sign on income and future RSU’s clarification and shared equity finance agreements. Additional details are available in FCM Correspondent announcement 2022-15 and FCM Wholesale announcement 2022-22.

First Community Mortgage posted an update on the Jumbo Summit/Peak SOFR ARM. FCM Wholesale Announcement 2022-21.

Capital markets


Looking at rates, mortgage-backed securities and U.S. Treasuries dropped in price Friday and pushing rates a little higher. Rates were mostly impacted by the jobs data which beat headline estimates, giving the Fed little room to alter its rate hike plans. On a side note, for those watching the steepness of the yield curve, last week’s action had no impact on the 2s10s spread, which remained at 28 bps. However, the 2s30s spread tightened by five basis points to 43 bps due to outperformance in the long bond. The “benchmark” U.S. 10-yr closed the week yielding 2.96 percent.

In supply & demand news, this week sees the Fed’s New York Desk, which handles the day-to-day operations, purchasing $8.5 billion, or $1.7 billion per day on average, of which 2/3 is UMB30s. No Fed speakers are currently scheduled with the Fed in blackout ahead of the June 14/15 decision.

There is no scheduled news today, but we can all look forward to a smattering of “second tier” news and the $96 billion mini-refunding (Tuesday to Thursday), with Consumer Price Index and Michigan sentiment. The European Central Bank will also be out with its latest decision, expected to lay the groundwork for a July hike and end asset purchases, on Thursday. In the early going the 10-year’s yield is still at 2.96 and Agency MBS prices are worse about .125.

A horse walks into a bar and orders a lager.

The bartender says, “You’re in here pretty often. Do you think that you might be an alcoholic?”

The horse replies, “I don’t think that I am,” and vanishes from existence.

You see, the joke is about Descartes’ famous philosophy of, “I think; therefore I am,” but to explain that part before the rest of the joke would be putting Descartes before the horse.

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, “The All-Cash Phenomenon.” 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.)

Rob Chrisman