Mar. 28: LO jobs; database mgt., pre-funding QC, post-closing QC tools; NMLS change? Ag, non-QM, DSCR, reverse, lock program news

John F. Kennedy has been gone nearly 60 years, and Jackie Kennedy (Onassis) nearly 30, but the couple still resonates with people. The first home that they owned as a married couple is for sale in Washington DC. If you’re ever in a guessing game about the most expensive places to live in the United States, stick with the safe bets: New York and anything California. Seems the press has latched on to declining home sales, but declining due to high prices, lack of inventory, or lack of buyer’s interest? Other stories indicated increasing home sales, but in certain price ranges, more builder inventory, or continued Millennial first-time home buyer interest? Take your pick. Meanwhile, lenders and originators have their continued regulatory speedbumps. Orrick reports that, “The Conference of State Bank Supervisors (CSBS), on behalf of the NMLS Policy Committee, issued a request for public comments on proposed uniform state licensing standards for mortgage companies. The Proposal: Mortgage Business-Specific Requirements would create a national standard for mortgage industry licensing to help improve uniformity within the state system and streamline the licensing process for mortgagees seeking licensure in multiple states.” (Today’s podcast can be found here and this week it’s sponsored by MGIC. Since 1957, MGIC has insured more than 13.5 million mortgage loans with innovative products, tools and strategies that help customers solve problems and fuel growth. Explore tools and solutions to boost your business here. Listen to an interview with Townstone Financial’s Barry Sturner and Garris Horn LLP’s Richard Horn on the CFPB’s recent judicial failures.)

Jobs

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Volatile markets and changing dynamics require flexible innovation to stay competitive and give an advantage. Thrive is rolling out new low-rate models that give the LO broker-like pricing control without losing all the retail advantages with industry-leading tech resources and support! The “X Model” is just one more way to win more clients with eXcellence! Thrive is also thrilled to welcome Carpenter Realty, one of Indiana’s leading Real Estate firms, to a new partnership as we join them in establishing the Commitment Team, formerly Commitment Mortgage. Contact Tay Toliver for a confidential discussion about how Thrive can enhance your career!

“The top 3 reasons mortgage sales professionals change companies: 1) Poor service levels compromising relationships with clients and referral partners. 2) Inadequate sales and marketing support. 3) No chance for advancement or opportunity to take their business to the next level. The top 3 reasons mortgage sales professionals join radius: 1) Nimble and proactive IMB that’s right sized to meet today’s changing demands. 2) Takes the guesswork out of marketing with their marketing team. 3) Allows you to your own mortgage dream team, or take advantage of theirs. radius financial group empowers you to build and run your business, your way. We give you the tools to help you strengthen relationships and you can build your own mortgage dream team, or take advantage of ours. You’re an actual shareholder of everyone’s success! For confidential inquires please contact Carla Herrera.”

Lender and broker services, products, and software

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Ready to take control of financial risk and revenue opportunity in your servicing portfolio? Make decisions in minutes, without requiring a team of analysts or myriad of reports from your servicer. You are in the driver’s seat with LoanCare Analytics™. Honored with a 2023 HW Tech 100 Award, LoanCare’s all-in-one portfolio management system provides on demand access for clients to monitor and predict portfolio performance with unprecedented ease and transparency. The platform was built to support the mortgage servicing rights (MSR) sector with a focus on customer engagement, liquidity, and credit risk. Contact LoanCare today.

What have over 250,000 MLOs and real estate agents adopted in just the past 6 months? Emerging new technology company Milestones has hit the ground running since their July 2022 Series A and go-to-market announcement. The technology is fully white-labeled and gives homeowners an all-inclusive homeownership experience including home value & 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. Their unique revenue model allows MLO’s to double down on their commitment to client retention and maturation, while substantially lowering their tech spend (and offering more value to both homeowners and Realtor partners). Connect with Milestones’ Chief Revenue Officer, Ashley Terrell, at #NEXTSpring23 or by email and you can learn more at milestones.ai.

“One of the things we’re hearing from servicers is that legacy software is making it too hard to set up new workflows and support updated processes. If delinquencies continue to rise and regulators increase oversight, this could be a real problem for them. That’s why MortgageFlex is offering its next generation, cloud-based servicing portal and offering the experienced resources to help servicers design and build out new servicing teams and processes. The company is offering servicers the power to disrupt outdated processes and succeed. And yes, disruption is exactly what the industry needs now if we’re going to navigate this continuing downturn. We’re seeing early signs of this now as servicers pull back portfolios from sub-servicers to handle their borrowers in-house. Find out more today by contacting John McCrea at MortgageFlex, or by visiting us.”

Why rely on highly manual, disjointed post-closing mortgage processes when you have easy access to Indecomm’s tech-enabled post-closing solutions? Indecomm pairs top mortgage talent with its AuditGenius and DocGenius systems to deliver powerfully streamlined Post-Closing services. We know that quality, compliance, timelines, and transparency are critical to post-closing success. That’s why Indecomm’s Post-Closing HUB keeps you in the know at every step. Working with Indecomm, you get a centralized view of your post-closing audits, recording and e-recording statuses, and real-time views of trailing document tasks and timelines. Want to learn more? Attend our upcoming webinar “Pitchforking Manual Post-Closing Processes” or reach out to Neil Armstrong.

TENA Companies, Inc. provides essential solutions for all stages of the Mortgage Quality Control process, improving overall loan quality and ensuring your firm stays compliant. Fannie Mae has recently emphasized the importance of Prefunding Quality Control programs. A well-planned Prefunding QC process can help to minimize the risk of borrower default. With TENA’s Prefunding Quality Control services, you can be confident that the loans your firm originates meet the highest standards of accuracy and compliance. Our comprehensive solutions provide a thorough review of your firm’s loan files, ensuring all documentation is present and accurate, and that each loan meets the strict requirements of all Agency, Federal, and State regulations. TENA’s experienced team of Mortgage Quality Control professionals will work to identify any potential issues, allowing you to correct any issues before they become larger problems. Contact us today to get started!

Today’s chilly housing market has some mortgage advisors considering warmer, fuzzier career paths… Like becoming a professional bear hugger. Keep your mortgage teams out of the woods by equipping them with tools that help them succeed in any market! Sales Boomerang’s automated mortgage opportunity alerts show mortgage professionals the high-intent borrowers in their databases and tell them when it’s the ideal time to present a loan opportunity. Plus, incorporating Sales Boomerang into your team’s routine is dead simple. According to one mortgage advisor from Axia Home Loans, “Loan officers simply have to open an email and make a phone call. It doesn’t get any simpler than that.” Bring your mortgage pipeline out of hibernation with Sales Boomerang by TrustEngine.

Non-Agency, non-QM, reverse, DSCR, ag loan lock program news

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Long-term Rental or Vacation RentalVisio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.3 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.”

Guaranteed Rate now offers two different loan programs aimed at helping home builders sell their houses faster. Builders can now take advantage of forward commitments and the Lock ‘N’ Sell rate lock program on both conventional and government loans. Builders can lock in a current rate for up to 120 days on individual homes with the Lock ‘N’ Sell program in advance of having a buyer. This gives builders the ability to lock in a rate on a home that has been completed but not sold, or a home that someone bought but then cancelled on, for example. At a time when many are concerned about mortgage rates, these are two powerful solutions for builders to offer potential homebuyers, who in turn will be able to reap the benefits of these programs.

SoFi tells its borrowers, “Protect yourself from rising rates, lock in your SoFi low rate for up to 90 days while you look for just the right home. SoFi will be with you along the way.”

Kind Lending’s latest non-QM option, Spark Nitro, provides qualified borrowers with premium pricing – floor rates at 6.49%*. Now with more options for reserves. Get to know Kind’s streamlined non-QM with next level flexibility for those 2+ years self-employed borrowers.

Unite Mortgage is now going to 90% LTV on Bank Statement loans and has lowered its minimum credit score to 640. The Prime 2ND Mortgage Program from Unite Mortgage offers a close-ended 2nd mortgage not a HELOC and can be used as a piggyback or standalone. Offered in both Full Doc and Bank Statement, This program is perfect for borrowers who want to take cash out of their home but don’t want to refinance their 1st mortgage due to having a low rate locked in.

Introducing NonQM Premier by Hometown Equity Mortgage, allowing Min Fico 700, Max LTV 80%, max loan amount $2mm, available doc types, Full Doc – 1- & 2-year options, 12 & 24 bank statement – Business & Personal, WVOE, 1099, No P&L or Asset Utilization, and Unlimited Cash-Out to max LTV’s. Hometown Equity Mortgage introduced a standalone and piggyback equity second that allows homeowners to access the equity in their homes without losing their low interest rate firsts. Gap Platform Advancement (G-PA) has arrived at Hometown. A bridge loan for first time home buyers, first time investors, and experienced investors.

With 85% LTV on DSCR loans, the highest in the industry, investors will enjoy financial flexibility by working with Carrington Correspondent. Highlights include 85% Max LTV on purchases, 85% max LTV on rate/term refi, gift funds permitted, 620 Min FICO, Minimum 3 months reserves, The borrower doesn’t have to own a primary home to qualify Carrington uses 100% of the market rent value.

No State licensing? No problem with a Carrington Investor Advantage (DSCR). No State licensing required 20 States & DC. These states consider DSCR loans as commercial loans, so they are generally not subject to licensing requirements.

The Plaza Home Mortgage® difference in reverse mortgages: Education, Expertise, Support. Plaza has developed comprehensive training programs, customizable educational and marketing materials to help you effectively demystify the misconceptions about reverse mortgages to borrowers. Plus, Plaza’s experienced reverse division can help you prepare scenarios, Pre-Quals, counseling packages, application/disclosures.

A&D Mortgage is now accepting short-term rental income for debt service coverage ratio (DSCR) loans. This new policy allows mortgage brokers to gain access to higher DSCR ratios and better loan-to-value (LTV) ratios of up to 80%, allowing their clients more favorable terms on loan applications.

PRMG announced its Onyx Jumbo now available for the Wholesale Channel. It will be underwritten by the Corporate Jumbo Underwriting team and is a delegated traditional jumbo product. Find out more in PRMG Product Update 23-16.

PRMG Product Update 23-18 provides information on multiple topics including Choice Non-Prime information on allowance for ITIN Borrowers. Expanded Access and Investor Solution condo clarification subject to max 6-bedroom count. Georgia properties are not eligible for Investor Premier products but are eligible for non-Premier products. Updated requirements for Homebuyer Education on CO CHFA Products.

With overall production significantly impacted by rising rates, don’t forget about Agricultural lending as a unique niche to add to your arsenal of products you offer. Mortgage Solutions can easily help brokers to lend on these types of properties even if the broker has never done them before and have no knowledge about them. Reach out today and learn how you can increase your potential income opportunity around Land Loans, Commercial Farms, and even Residential Hobby Farms. These loans can be a unique source of an additional revenue stream and are easier to close via MSF’s No Doc option for Ag raw land or Farms. Contact Richard Eampietro.

Capital markets

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The major headline to open the week was that First Citizens Bank will buy Silicon Valley Bank’s loans and deposits with no mention of the MBS portfolio, which caused MBS prices to drop and rates to rise. Despite the recent concerns over the failure of Silicon Valley Bank and other banks, Federal Reserve officials continue to describe the economy in favorable terms. While no one expected them to say the banking system was anything but secure, they reaffirmed their intention to fight inflation in their latest monetary policy statement. The current level of inflation as well as a tight job market likely merit continued monetary policy tightening, however the latest policy statement contained less aggressive wording and allows the Committee to pivot if the economy cools dramatically. The Committee still expects one more rate increase before the end of the year while the markets have priced in two to three rate cuts.

Given the current situation in the banking sector, credit availability should decrease without any further intervention by the Fed and will have the effect of monetary tightening and, by extension, the desired disinflationary outcome.

Today’s calendar is under way with advanced indicators for February that won’t move rates. That includes the trade deficit (-$91.6 billion), retail inventories (+.8 percent), and wholesale inventories (+.2 percent). Later this morning brings Redbook same store sales, January house prices from both Case-Shiller, with its three month lookback, and FHFA index, Consumer confidence in March, and Richmond Fed manufacturing and services. The U.S. Treasury then auctions $43 billion of 5-year notes. Step right up and buy! One Fed speaker is currently scheduled: Vice Chair for Supervision Barr, testifying along with FDIC Chair Gruenberg before the Senate Banking Committee. We begin the day with Agency MBS prices worse .125, the 10-year yielding 3.57 after closing yesterday at 3.53 percent, and the 2-year at 3.99.

After a very busy day, a commuter settled down in her seat and closed her eyes as the train departed Chicago for Flossmoor.

As the train rolled out of the station, the guy sitting next to her pulled out his cell phone and started talking in a loud voice. “Hi sweetheart its Eric, I’m on the train.” I know it’s the six thirty and not the four thirty, but I had a long meeting. No, honey, not with that floozie from the accounts office, with the boss. No sweetheart, you’re the only one in my life, yes, I’m sure, cross my heart” etc., etc.

Fifteen minutes later, he was still talking loudly, when the young woman sitting next to him, who was obviously angered by his continuous rabble, yelled at the top of her voice, “Hey, Eric, turn that stupid phone off and get your sexy ass back into bed!”

Eric doesn’t use his cell phone in public any longer.

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. “A Penny Saved is a Penny Earned” 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