Daily Mortgage News & Commentary

May 10: MLO jobs; warehouse, call center, non-QM, processing, lead gen products; Fed’s Financial Stability Report

Ever kissed a West Coast gal under the Northern Lights? North and West aside, there are lenders and vendors from every corner of the nation heading to the East: We’re fast approaching the MBA’s National Secondary Conference at the Marriott in New York. Capital markets people know the Marriott well, with its 12 elevators (take your pick of lift, based on passenger, labeled: Chatty, Garlic Coffee Breath, Apathetic, “Where’s the Exhibition Hall”, Contagious, Hungover, Inquisitive, Stare at Floor, Last Second Jump On, Gasp out the Window, “I Hit the Wrong Floor”, and “I Hate These Elevators”). On a more serious note, out yesterday came, “The Most Efficient Way to Produce Mortgage Loans” addressing how you can ease margin compression, points out creative applications of outsourcing and automation, and lists top functions to outsource and why. (Here is an alternative link.) Today’s podcast is available here and this week’s is sponsored by SimpleNexus, an nCino company and award-winning developer of mobile-first technology for the modern mortgage lender. Listen to an Interview with Ben Miller and Selene Kellam on implementing technology and competing in the current market.

Jobs & transitions

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The changing scenery. The energy. The growth. No, we’re not talking about the season. We’re talking about what life could be like as a Motto Mortgage loan originator. If you’re looking to expand your book of business, have a wide variety of loan options to offer clients, and equip yourself with technology tools that make your day-to-day processes more streamlined, Motto can help. Our priority is to ensure you have everything you need to focus on growing your business. That’s why we strive to remove any barriers that limit your ability to generate new leads, close loans, or communicate with clients. So, while blooming flowers are great, when it comes to your career, we think blooming business opportunities are better. Ready to make your move? Motto Mortgage brokerages all over the country are hiring talented loan originators, including in CA, FL, GA, IL, IN, MA, OH, OK, PA, TX, and WV. For more information or to take the next step, start here.

Finance of America Mortgage pivoted before the market turned and has been able to take the purchase market head-on by not only equipping its advisors with proprietary products that expand the credit box, but by identifying more opportunities for its advisors to succeed. Finance of America Mortgage has put an emphasis on building and cultivating referral partner and real estate agent relationships that are critical in a purchase market. They’ve also doubled down on their advisory approach by positioning themselves as leverage advisors. Looking at leverage as part of the customers overall wealth creation, rather than just a debt. This wholistic approach is what’s drawing customers and consultative loan advisors to FAM. Finance of America Mortgage creates a culture of customer service that builds and maintains their advisor-client relationships for life. Contact Tim Cotten today or visit us here to learn how you can pivot too.

Want to be a mortgage backed securities (MBS) Portfolio Analyst for Google? Here you go.

Lender & broker software and services

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Celebrated on the second Wednesday of May each year, the One Day’s Wages movement established Donate a Day’s Wages to Charity Day in 2009 to support charitable organizations around the globe. Even if you’re not in a place to donate a full day’s wages tomorrow, you can still give back by attending Sales Boomerang’s charity webinar benefitting the Movement Foundation tomorrow at 2 pm ET. Registration only costs a $10 donation, of which Sales Boomerang, Down Payment Resource and NAMMBA will match up to $1,000! Attendees will gain insight on the importance of lending a hand in your community from Sales Boomerang CEO Alex Kutsishin and representatives from Movement Mortgage, Down Payment Resource, NAMMBA and Mortgage Marketing Radio Podcast. Register to get involved.

Interested in outsourcing your processing workload? Nervous about trusting a third-party with your clients and processing their loans? When you partner with wemlo℠, you can rest easy knowing that we’re committed to delivering a fully transparent, VIP experience to you and your borrowers. What does full transparency mean at wemlo? It’s simple: you stay in the driver’s seat throughout the loan process but without the need to babysit it. By trusting your processing work to wemlo, you can count on our straightforward process, all-in-one broker dashboard, and emphasis on clear communication to facilitate a seamless experience. Ready to experience upfront, transparent processing? Chat with wemlo today! NMLS ID 1853218.

Does a compare ratio matter when volumes and margins are dropping? This is one score that you shouldn’t ignore when originating FHA loans. And when it comes to keeping the numbers that affect this score in line, working with the right investor is critical—especially one who understands how this small but mighty metric can impact your business. The latest TMS Correspondent blog talks about the importance of knowing your FHA investor’s performance and how a high compare ratio could mean the difference between a thriving business and one in hot water, resulting in possible HUD disciplinary actions. And because TMS is transparent, they’re sharing their numbers vs the entire FHA market. If you find your investor’s performance doesn’t measure up, consider partnering with TMS Correspondent. Read more about the benefits of working with TMS Correspondent that has made them a Top 15 Ginnie Mae issuer. Read the full blog here.

It’s no secret that retention is key to long-term mortgage servicing success, especially as rates rise and the market slows. Many servicers misstep by focusing too much energy on acquiring new consumers, and not enough on retaining existing ones for refinance or home equity opportunities. The result can be both expensive and ineffective for servicing operations. Fortunately, servicers have significant opportunity to improve retention by honing their customer experience efforts. This starts with high-performing servicing software, such as the industry-leading Black Knight MSP® loan servicing system. Currently used to service approximately 37 million active loans, MSP is a proven platform with the continuous updates and scalability to support all sizes of portfolios. Learn why MSP is the right solution to enhance the customer experience and improve retention today – and tomorrow.

The current market is making it challenging for homebuyers to prepare for their mortgage transaction as increasing mortgage rates and home prices are moving the goal line further out of reach. First-time homebuyers who could qualify for a mortgage are self-selecting out of the process due to entrenched common myths regarding mortgage readiness, particularly related to credit, down payments, and debt-to-income ratio. FinLocker has built tools to get first-time homebuyers mortgage ready, enabling mortgage originators to manage a larger pipeline of ‘almost mortgage-ready’ consumers and nurture those ‘near mortgage-ready.’ Download FinLocker’s Roadmap for Homebuyers to Achieve Mortgage Readiness in a Challenging Purchase Market to see how FinLocker makes it affordable to provide homebuyers with a personalized path to homeownership and dramatically reduce overall verification costs per loan. Watch an online demo to see how FinLocker has purposefully integrated tools to accelerate the process for first-time homebuyers to get mortgage ready.

Industry veteran, Bill Mitchell, was in Las Vegas for the MBA Technology Conference networking with industry partners and peers leveraging his 20+ years’ experience. Numerous friends told him, “You need to check out LoanPASS!” That afternoon Bill met with Mike Lewis (President) and Derek Long (COO) and less than two weeks later he became LoanPASS’s new CRO! When asked why he wanted to join the LoanPASS team, Bill explained, “The mortgage market is quickly shifting and LoanPASS is in an ideal position to help lenders engage borrowers with greater speed and effectiveness. LoanPASS offers lenders the option to have all their proprietary lending products in a completely customizable, modern decisioning engine, making for an incredibly powerful solution compared to legacy systems of the past. Plus, the open API significantly expands the total addressable market, as LoanPASS adds new technology partners to their growing network.” To learn more contact, Bill Mitchell.

Looking to drive revenue while interest rates rise? Referrals, whether they’re from realtors or past customers, can be a key source of leads without spending a lot on marketing. That’s why the experts at Matic Insurance, a digital insurance agency built for the mortgage industry, created a free guide to help you attract new leads from referral partners and past customers, create a great customer experience so your borrowers rave about you later, and market yourself as a choice lender across social media, email, and more. Download the guide here. Matic’s embedded insurance solutions were built for mortgage lenders and LOs. Through our network of 40+ A-rated insurance carriers, we help your borrowers save time and money by matching them with the right policy, making you their trusted advisor and helping you control the home insurance process, so you can focus on the loan and get clear to close, faster. Contact us for information on partnership opportunities.

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.

Broker & TPO loan products

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Verus Mortgage Capital has the non-QM expertise you need to successfully navigate the environment we find ourselves in this spring – with refinances declining and spiking rates. Its non-QM programs can help you cast a wider net and capture more borrowers – self-employed, foreign nationals, business owners, and investors. Consider this: Based on conversations with non-QM originators, 2022 volume will be equal if not greater than 2021. And conventional Q4 2021 delinquencies were 4.65%; Non-QM delinquencies were only 2.2%. As the largest issuer of securitizations backed by non-QM loans and the industry’s largest purchaser, Verus can help you outperform your competitors. Heading to MBAG May 9-12 or the MBA Secondary May 15-18? Contact Jeff Schaefer, Executive Vice President – Correspondent Sales to set up a meeting and learn more.

“Rocket Pro TPO is announcing a brand-new solution for our broker partners that will powerfully impact your business. Finding leads and converting them is essential for your business. If you’re buying leads, take the next step by using Rocket Pro TPO’s Pro Dialer which gives you access to our Rock Connections team, one of the largest and most successful call centers in our business! Our Pro Dialer team is here for you, to call your leads with a custom script and live transfer them to you, helping you boost conversions and close more business. Partners are loving how Pro Dialer helps them scale their business and give clients a better experience. For a powerful tool to boost conversions, go with Pro Dialer. Reach out to your Account Executive, and they’ll walk you through all the details.”

Silvergate Warehouse Lending is as innovative as the entrepreneurs we serve. Whether you’re a Startup or seasoned IMB, we offer credit line sizes from $20M – $500M that can accommodate unique and niche markets. Specialty products include JumboNon-QM/DSCRSmall Balance Commercial, and Aggregation Facilities. With Operations Centers on both Coasts, we build strong relationships through a high level of personal service and the ease and flexibility that comes with timely, in-house lending decisions. Meet Silvergate at the MBA’s National Secondary Conference and the  CMBA Western-Secondary Conference. Contact Elaine Batlis (EVP), Greg Davis (West), or Steve Klein (East).

Capital markets

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Investors rushed to reallocate money to the safety of bonds yesterday, driving prices up and yields down amid concern about the Fed’s ability to tame inflationary spirals without throwing the economy into recession. Atlanta Fed President Bostic said the Fed doesn’t need to be moving even more aggressively than 50 basis point rate hikes and can keep the same pace at the next two to three meetings before re-assessing. The Fed can “see how the economy responds, see if inflation continues to move closer to our 2 percent target, then we can take a pause and see how things are going,” he said.

I was recently asked the question, “If the Fed has stopped buying MBS and Treasuries, and will start selling, then what is the Federal Reserve buying every day?” The answer is that the Federal Reserve buys various assets dictated by the availability of eligible assets as well as practical policy considerations. Traditionally, the Fed’s assets have consisted mainly of U.S. Treasury securities: bills, notes, and bonds, Mortgage-backed securities (MBS) have been the second largest asset by value on the Fed’s balance sheet, entitling the Fed to cash flows from a fixed-income basket of mortgage loans. The Fed can also manipulate currency in circulation, bank reserves on deposit, and reverse repurchase agreements (borrowings of Treasuries from commercial counterparties).

Remember that the Federal Reserve can “print money” to buy securities outright, or can use the cash from early payoffs (when a loan pays off through the sale of a property, or refinances), or the cash it has coming in from monthly principal and interest payments, to buy securities. So the Federal Open Market Committee can gradually ease its buying, which is why we still see Fed purchases.

The Federal Reserve painted a somewhat concerning picture of the global financial system in its latest semi-annual Financial Stability Report, citing particular examples that may warrant further attention. Surging inflation and Russia’s war in Ukraine have supplanted the coronavirus pandemic, while a quick monetary policy tightening cycle may result in lower economic output and raise borrowing costs that could lead to job losses, unsustainable debt levels for businesses and impact the housing market via higher mortgage rates. Ugh.

Today is heavy on supply, the $103 billion Quarterly Refunding gets started with $45 billion 3-year notes, and Fed appearances on the economy, monetary policy, and inflation. There is only one datapoint: the NFIB’s Small Business Activity Index for April (unchanged). The Fed will purchase up to $2.1 billion 30-year 3.5 percent through 4.5 percent. We begin the day with Agency MBS prices better .125 and the 10-year yielding 3.00 after closing yesterday at 3.08 percent.

From Michigan Don C. writes, “I lost job at the bank my very first day! A lady asked me to check her balance. So I pushed her over.”

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, “A Primer on the Federal Reserve and Mortgage Rates.” 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.)