Mar. 4: Report on women and home buying; vendor news runs the gamut; Saturday Spotlight: Change Wholesale

Does social media reward the good? Billie Eilish says she’s deleted all her social media apps. Lenders and vendors are tuned into social media, likes and dislikes, but false rumors can spread like wildfire, especially regarding layoffs and closures. And our biz has certainly seen its share of “reductions in force in the last 6-9 months. In general, regarding the general economy, half of adults think that based on the current economic picture the recent wave of mass layoffs were avoidable, with just 35 percent thinking that they were somewhat or totally unavoidable. According to the polls, laying off employees is a huge red flag for prospective talent, with 58 percent of respondents saying that it was somewhat or very unlikely that they would consider a new position at a company that recently laid off a portion of employees. Instead, they’d prefer to see belt tightening in other places, with 69 percent of employees saying they’d somewhat or very likely consider a position at a company where management announced they took a pay cut rather than laying off employees.

Saturday Spotlight: Change Wholesale

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What is the “Change Wholesale unfair advantage?” 

The mortgage industry has long been known for its strict requirements and lengthy loan application processes, which can be a challenge for many borrowers. Change Wholesale, however, offers a unique approach that sets us apart from traditional banks.

The most groundbreaking feature of Change Wholesale is our Community Mortgage program. This unique owner-occupied mortgage does not require income or employment documentation on the application, which means that prime creditworthy borrowers who may not meet the stringent requirements of traditional banks can still qualify for a mortgage. This program has the potential to make homeownership more accessible to a wider range of people and communities.

Ultimately, the Change Wholesale unfair advantage lies in our ability to offer a faster, more flexible loan process and loan programs that are designed to meet the needs of a wider range of borrowers. By offering a more inclusive approach to mortgage lending, Change Wholesale is helping to make the dream of homeownership a reality for more people.

 

Affordability. What can Change do to make it easier for brokers to help borrowers afford a new home? 

Change Wholesale offers a wide range of mortgage products with competitive rates and terms, providing unique solutions that surpass those of other companies. As a CDFI, we not only offer traditional lending options through Fannie Mae, Freddie Mac and Ginnie Mae, but we also have the ability to create custom loan products that go beyond traditional lending.

 

This unique advantage enables us to offer brokers and borrowers a wider range of lending options, which can ultimately reduce costs and make homeownership more affordable. For instance, we have loan programs specifically designed for self-employed borrowers who receive a 1099 form, a group that typically faces obstacles in obtaining traditional mortgages. By tailoring our loan programs to the specific needs of self-employed borrowers, we can help them access financing for a new home and make the dream of homeownership a reality.

 

How does Change Wholesale support the broker community? 

Change Wholesale is committed to supporting the broker community by offering a range of services and resources to help brokers build their businesses and serve their clients. Here are some of the ways that Change Wholesale supports the broker community:

1. Unique Products through CDFI Designation: Change Wholesale is a Community Development Financial Institution (CDFI), which allows us the ability to offer unique loan products designed to help underserved communities and individuals access affordable financing. By partnering with Change Wholesale, brokers can offer their clients access to these specialized loan programs, which can help to expand their client base and increase their business.

2. Best In-Class Service:  Change Wholesale is committed to providing personalized, best in class service to our brokers and their clients. Our team of professionals understands that each loan is unique, and we take the time to understand the specific needs of each borrower. With our white-glove service, we ensure that every step of the loan process is handled with care and attention to detail, from the initial application to the closing.

 

In addition to our exceptional service, we also offer premier technology through our CLOSR portal. This custom platform allows brokers to easily facilitate the loan process, with everything they need in one place. Our technology makes it easy to lock a loan, order conditions, order an appraisal, and more, all while ensuring a seamless transaction.

 

We pride ourselves on providing a professional experience that combines personalized service with cutting-edge technology. Whether you’re a broker or a borrower, you can trust that Change Wholesale will provide the highest level of service and support throughout the entire loan process.

3. Marketing Support: Change Wholesale offers marketing support to help brokers promote their business and reach new clients. This includes access to a range of marketing materials, such as flyers, social media content, and email templates. By providing these resources, Change Wholesale helps brokers to build their brand and generate new business.

4. Product Trainings: Change Wholesale offers product trainings to help brokers understand the unique loan programs offered through their CDFI designation. By providing in-depth training and education, Change Wholesale helps brokers become experts in these specialized loan products, which can help them better serve their clients and grow their business.

Is there a differentiation in being a traditional non- QM lender versus being a CDFI? 

While both traditional non-QM lenders and CDFIs provide access to financing for borrowers who may not meet the standard underwriting criteria, CDFIs have a broader mission of expanding access to affordable credit and financial services in underserved communities and a broader reach of potential qualified borrowers. A traditional non-QM lender focuses on providing loans to borrowers who do not meet the standard underwriting criteria of conventional loans. These loans typically have higher interest rates and more lenient qualification requirements but are still subject to certain regulations and guidelines.

On the other hand, being a CDFI is a designation given by the U.S. Treasury Department to financial institutions that provide credit and financial services to underserved communities and individuals. CDFIs are mission-driven organizations that are dedicated to expanding access to affordable credit and financial services, promoting community development, and supporting economic growth in low-income and disadvantaged communities.  Importantly, CDFIs are exempt from certain ability to repay requirements where other non-QM lenders are not, thereby allowing us to make loans to a broader set of qualified borrowers.

(For more information on having your firm’s extracurricular activities, employee growth, and your charitable side featured, contact Chrisman LLC’s Anjelica Nixt.)

Women and homebuying

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In celebration of Women’s History Month, Kristin Messerli announced the release of new research on women’s homebuying trends and challenges, in partnership with National MI.

“Millennial women are the largest demographic purchasing homes independently in the US today. Many of them are single and at least half of them are heads of household. We may intellectually know that women make up a significant proportion of the market, but the data shows businesses are missing the mark in connecting with them.

“In our 2023 research, Millennial and Gen Z women report feeling less trusting of housing and finance professionals, more uncertain of where to start the process, and less satisfied with their overall experience after the home purchase. While women have made significant strides in reducing gender inequality, women still experience major disparities in financial outcomes.

“Here are a few of the top challenges indicated in this report. NextGen women are significantly more stressed about their finances than men (37% vs 29%). 69% of NextGen men reported feeling confident in their knowledge about personal finances, while only 58% of women agreed. Only 60% of Millennial and Gen Z women grew up learning about financial education, in contrast with 75% of men. Women reported significantly less access to financial advice and support in comparison to men (47% vs 65%).” Thank you, Kristin.

Vendor/third-party provider: random news from around the biz

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Solution providers, outsource providers, vendors, third-party providers… they do a lot more than capitalize odd letters in their names. Let’s see who’s been doing what lately in the primary and secondary markets.

As of March 1st, 2023, Secure Insight has launched its Repurchase Defense and Loan Fraud Analysis service. Lenders now can receive expert industry review and analysis of risk, defects, and fraud issues with written analytical reports to identify defenses. The new service also outlines strengths as well as weaknesses to help educate lenders to negotiate better resolutions. To find out more information, contact Amanda Padd.

Fannie and Freddie rolled out their social index disclosures in November 2022. Consisting of two measures, the Social Criteria Score and the Social Density Score. New Agency data available on the Edge Platform assigns every pool two fully transparent scores; one indicating the percentage of loans in a pool that satisfy any of the defined social criteria, the other reflecting how many criteria a pool’s average loan satisfies. Taken together, these enable Agency traders and investors to view and understand each pool along a full continuum of the social index, as opposed to simply assigning a binary social designation. This new functionality is the latest in a series of enhancements that further the Edge Platform’s objective of providing frictionless insight to Agency MBS traders and investors, knocking down barriers to efficient, clear and data-driven valuation and risk assessment. Comprehensive details of this and other new capabilities are available by requesting a no-obligation live demo at riskspan.com.

Why does an appraisal take so long? What are the fees? Why is it more expensive in some states than in others? Reggora, the preeminent appraisal management software company that is modernizing residential real estate valuation for mortgage lenders, has developed a report to observe these questions and more. View the Press Release Reggora Delivers 2022 Appraisal Performance Index.

Revolutionize Your Mortgage Origination Process with Zenly®, Calyx’s cloud-based platform is specifically designed to help save time and resources. Purchase and begin the origination process in as little as 15 minutes. Use Zenly to complete the origination process without exiting the platform, to automatically collect and verify borrower assets for upfront prequalification, to access industry-leading wholesalers and shop around to find the best rate for your borrowers, and much more. Schedule Calyx Live Demo.

OptifiNow has integrated its wholesale mortgage CRM platform, OptifiNow TPO, with the Lender Price Flex Pricing Engine, enabling wholesale account executives to provide mortgage brokers with instant loan quotes, increasing customer engagement and sales efficiency.

Every Loan Scenario Ticket is saved to a loan officer and broker account record, allowing lenders to generate reports that detect market trends by product, loan amount and geography. Additionally, tracking the volume of tickets created by account executives provides a metric of productivity and broker engagement, especially for inside sales teams.

PMI Rate Pro announced it has completed a new integration with the Mortgage Cadence Platform (MCP). Through this integration, MCP users can easily check pricing for Private Mortgage Insurance from all 6 major underwriters and get a best execution result.

Indecomm has been providing quality control and third-party reviews for twenty years, pairing its proprietary AuditGenius SaaS and automation technology with experienced review staff to deliver next-level loan-level and portfolio analyses. Now, Fitch Ratings has added Indecomm to its list of accepted third-party review (TPR) firms for securitization and RMBS. In its assessment, Fitch Ratings noted Indecomm’s mortgage QC and underwriting history, advanced technology, experienced staff, and processes.

SpruceProtect: HOA Guarantee, the industry’s first and only HOA rental coverage policy, is rolling out across the country. Spruce’s investor clients can benefit from financial coverage, in the event of rental restrictions that could negatively impact the rentability of an investment property located within an HOA.

As pricing continues to get more complicated, having the right technology in place builds confidence, despite market volatility. By working with Vice Capital Markets, one of Freddie Mac’s Secondary Market Advisor (SMA) partners, Union Home Mortgage (UHM) leveraged our Cash Settlement Purchase Statement application programming interface (API) to automate, simplify and speed up their reconciliation process. Find out more, read Getting Near Real-Time Purchase Data Through API Integration.

Announced in a recent press release, Flagstar Bank has implemented mortgage servicing software provided by OrangeGrid to manage its loss mitigation processes and enhance internal efficiencies. The software provides Flagstar with a collaborative operating system to help handle loss mitigation. Complexities with added benefits of enhancing compliance, tracking metrics for internal staffing, generating comprehensive reporting on turn-time on loss mitigation requests, and delivering a clear audit record for every step in the workflow. “OrangeGrid is good news for Flagstar’s borrowers because it means a faster review for them and a timelier return to a performing status for their loan. And for Flagstar, it increases both capacity and efficiency,” said Todd Mobraten, CEO and founder of OrangeGrid.

Mortgage fintech company, MonitorBase, has launched instant credit inquiry alerts for its mortgage lender clients as part of the platform. The new feature alerts loan officers within minutes when a contact in their database has a mortgage credit pull with a competitor and instantly generates a credit offer email without the loan officer needing to take additional action. That’s 24 hours before lead sellers send that information to hundreds of other lenders. Smaller lenders, regional banks, and even single brokers can now possess the same type of powerful relationship retention technology that was formerly available only to big banks.

A man walks into a Dublin pub. The bartender asks him: “What’ll you have?”

The man says: “Give me three pints of Kilkenny, please.”

So, the bartender brings him three pints and the man proceeds to alternately sip one, then the other, then the third until they’re gone. He then orders three more.

The bartender says: “Sir, I know you like them cold. You don’t have to order three at a time. I can keep an eye on it and when you get low, I’ll bring you a fresh cold one.”

The man says: “You don’t understand. I have two brothers, one in Chicago and one in Boston. We made a vow to each other that every Saturday night we’d still drink together. So right now, my brothers have three pints too, and we’re drinking together.”

The bartender thought that was a wonderful tradition. Every week the man came in and ordered three beers. Then one week he came in and ordered only two. He drank them and then ordered two more.

The bartender said to him: “I know what your tradition is, and I’d just like to say that I’m sorry that one of your brothers has passed.”

The man said: “Oh, my brothers are fine. I just told the missus that I’d quit drinking.”

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. “Valuing a Lender” 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