The real estate and lending industries operate in a world filled with laws, lawsuits, and regulators. (The latest example is REX’s suit against Zillow and the National Association of Realtors – NAR – over the real estate segregation rule, which puts the interests of legacy real estate brokers before consumers.) Does this clip remind you of your Direct to Consumer Department? Hope not. And I hope that it’s not your Customer Complaint Department either. Here is something every compliance department should read: a National Law Review article pointing out the CFPB’s current thoughts on lending and servicing during the pandemic. Compliance departments are certainly aware of how compensation is paid to AEs and LOs. After analyzing data from its CompenSafe™ ICM platform, LBA Ware’s Q1 2021 comp report showed a slight decrease in basis points paid. Increases in YoY refi and purchase volume contributed to higher commissions for LOs and processors despite a slight decline in BPS per loan. Processors handled 29% more loans per month in Q1 2021 compared to Q1 2020, fueling a 51% increase in average comp earned from $1,451 per processor per month in Q1 2020 to $2,194 in Q1 2021. On average, 3.6 individuals were paid a form of loan compensation per loan unit in Q1 2021. Speaking of the loan process, today’s audio version of the commentary and is available here and is sponsored by Candor Technology. It features an interview with Floify CEO Dave Sims on mortgage automation and point-of-sale solutions for lenders. Candor Technology offers a dynamic underwriting engine that eliminates underwriting bottlenecks.
Employment & transitions
“A highly productive Michigan based Mortgage Company is looking for a CCO/Operations Manager to lead our experienced and growing Operations Team. Our current CCO/Ops Manager is retiring, and we want to hire now so there is overlap. This candidate must be skilled in managing people and well-versed in all areas of mortgage operations and needs to be forward thinking with the ability to implement and lead. Relocation and remote work are both available if the candidate lives outside of Southeast Michigan.” Please email Anjelica Nixt your resume.
Congratulations to Movement’s Kelly Rogers on her promotion to Regional Director in Texas, Oklahoma, and New Mexico, three of the fastest-growing markets for one of the top purchase lenders in the U.S. Movement recently announced Kelly’s new leadership role this spring as it continues to add loan officers in growing regions across the country. Kelly, founder of Houston’s The Kelly Rogers Team, is a perennial Top Producer, sought-after speaker and thought leader, and one of the leading women in the mortgage industry. In her new role, she is helping Movement add mortgage sales leaders and top producers across Texas and the surrounding states. “I’m honored to be able to collaborate with and cast a vision for the leaders I get to serve with,” Kelly says on her YouTube channel. “I’m looking forward to helping everyone that I can grow to their greatest potential.” To learn more about opportunities at Movement, email Kelly Rogers here.
Sun West Mortgage Company [NMLS ID 3277], a leading full-service national mortgage lender, is excited to announce the newest addition, SVP Joe Vegas, to its West Coast operations. Joe Vegas recently joined Sun West in Loomis, California as SVP of Enterprise Production and Strategic Partnerships. Throughout his career, Joe has worn a multitude of hats inside both Wholesale and Retail platforms, with his unique and well-rounded level of experience. Joe is now primed and excited to serve at Sun West. Leif Boyd, Managing Director at Sun West believes, “Joe brings a wealth of experience that makes our strong team even stronger. We are honored and privileged to call Joe a teammate.” For more information on Sun West, please contact Managing Director, Leif Boyd or SVP, Business Development, Peter Schwartz at 916-770-0053. Licensing information and disclosures, please click here.
Broker and lender products & services
The challenges of in-person activities have never been more apparent than over the past year as lenders turned to technology to continue originating loans. Data shows nearly half a million eNotes were registered on the MERS eRegistry in 2020, and high volumes are expected to continue as users realize the benefits. Can you afford not to have this technology in your toolkit? Black Knight’s blog, “No Ink or Stamp Required: Why eNotarizations Are the Next Big Thing,” examines how businesses are taking advantage of remote online notarizations (RON) to connect notaries and signatories virtually. Using RON speeds up processes, reduces costs, eliminates traveling to sign and notarize documents, and is legal in most states. While businesses find ways to serve clients remotely, stay competitive with the most advanced technology. Turn to Black Knight’s MISMO-certified DocVerify for conducting safe, secure, and recorded RON transactions, adding value to your business right away.
Curious how Connector by Velma® can solve your ECOA – Adverse Action headaches? Learn how Connector reduces risk, rescues at-risk prospects, eliminates hassles, and saves time for your sales and operations teams. All by extending your LOS (Encompass). Oh, and you will never need to print out and stuff another NOIA letter again!
There is work to be done in order to convert MSRs from hypothetical loan opportunities into lifetime lending relationships. According to Black Knight, servicers retained just 18% of the estimated 2.8 million homeowners who refinanced in Q4 2020 (the lowest share on record) despite originations hitting all-time highs. Turn to Total Expert’s latest guide for the proven formula for 70% customer retention and the three steps every lender should take to become your borrowers’ preferred lender. Download now.
Tight inventory and rising home prices are forcing many homebuyers to consider “fixer-uppers” and simultaneously buy and renovate. The Freddie Mac CHOICERenovation® program is a great fit for these buyers and for refinance-and-renovate customers. Plaza Home Mortgage’s National Correspondent channel offers CHOICERenovation and will accept delivery of these loans prior to completion of the renovation, giving correspondents more liquidity and flexibility. And Plaza will do this even if they deliver directly to Freddie Mac. Plaza also accepts Freddie Mac’s Home Possible® program in combination with CHOICERenovation for qualified borrowers. Contact Plaza to learn more.
Does your company’s toolbox have the best set of tools? Finance of America Mortgage toolbox is filled with the best set of tools in the industry to help our advisors serve their customers better! The TwoXM marketing platform is designed to TwoX advisor’s production, including a CRM platform with integrated IQ (Intelligent Marketing) alerts that average over 1,000 leads a week back to our LO’s, or integrating videos into your emails, with Bomb Bomb, or social media and landing pages with WOWMI, or ComeHome’s advanced new home search opportunities, or integrating Mortgage Coach… We have the tools to help you succeed in a purchase market! If you are looking for a company that can help TwoX your business, take a look at Finance of America Mortgage and reach out to Jerry Ray at: (503) 444-1150.
With Bill and Melinda dominating the recent news cycle, it’s a perfect time to remember one of Bill Gates’ quotes: “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” This has been DocProbe’s mantra as we built our Post Closing Trailing Docs platform for lenders and investors. Now celebrating 10 years, our Process was built on a foundation of expertise and knowledge from People who’ve spent years in the trenches of the mortgage industry. Led by industry veterans, our Technology continues to evolve with the industry’s progression into the fully digital mortgage. DocProbe’s success is a result of years of listening and understanding the needs and challenges of lenders. This is why our Trailing Docs solution powered by People, Process, and Technology works. Visit us or email Nick to learn more.
Last week, ReadyPrice released a major feature release focused on improving the levels of customization that Wholesales Brokers have within the application. These features include the ability to set pricing defaults, creates loan program scenarios, and manage lender compensation at both macro and micro levels. If you’ve been considering looking at ReadyPrice, now is the time! Join their community of brokers and lenders today, and witness firsthand how they plan to change “the way MLOs and Lenders work together forever!”
Company sponsored training
Do not miss out on two upcoming webinars from JMAC Lending to help grow your business with DSCR investment and Jumbo lending. The DSCR Non-QM Investment webinar is on TUESDAY, MAY 18, 2021 at 10:00 A.M. PST. Learn how to qualify clients based on gross rental income to determine property cash flow. This popular product is perfect for your experienced and first-time investors. Unlimited properties, no income qualification and a minimum DSCR from .750. Click here to register: The Jumbo webinar is on TUESDAY, JUNE 4, 2021 at 10:00 A.M. PST. Learn about three new Jumbo programs now available for your borrowers. Register here: Seating is limited, so register early. Participants will be entered into a drawing for a chance to with a $100 Amazon Gift Card at each webinar.
How is your organization responding to the rapidly accelerating digital landscape of lending? If you want to share and compare tactics with industry leaders and ultimately maximize your momentum, then join us at Forward, Blend’s virtual summit. From May 18-20, you’ll have the opportunity to participate in thought-provoking keynotes, panel discussions, and training sessions that can help you chart a path into the future, and leave with a strategy to keep you ahead of the competition. Register today.
As a result of the recent announcement by JPMorgan Chase to commit $30 Billion to advance racial equity, Chase Correspondent Lending has introduced a Community Lending Program – created to help underserved customers and communities. This program is available to eligible lenders looking to grow in eligible markets and gain additional options to serve areas in need. If you’re interested in becoming a lender, please visit our Community Lending page for more details.
Chase Correspondent also aligned its PUD Insurance Requirements and PUD Localized Perils in non-agency to match agency requirements. When the HOA maintains a master policy that insures the units in lieu of individual policies being maintained, the project legal documents must allow a master policy. At any time during the life of the loan if there are localized perils (including but not limited to: sinkhole, mine subsidence, volcanic eruption, and/or landslide) that are imminent and not covered by standard property insurance, the Borrower will be required to obtain appropriate insurance coverage. For condominium transactions, Ordinance or Law Endorsement is required regardless of compliance with current zoning.
Effective May 1st, Chase Correspondent aligned its non-Agency VVOE requirements for Salaried (Hourly, Salary, or Commission) Borrowers to match the Agency’s post COVID flexibility requirements.
Fairway Wholesale Lending now offers Non-Agency AUS Jumbos and its Jumbo QM program has expanded. Review its Jumbo Product Comparison for more information.
loanDepot’s Weekly Announcement: Beginning April 5, 2021 covers the expansion of the loanDepot Jumbo Advantage EXPRESS and Genworth MI guideline updates.
With rates slowly on the rise, adjustable-rate mortgages (ARMs) are back at United Wholesale Mortgage. The mortgage lender announced its UWM ARM choices are now available on all of its conventional products. Highlights of the SOFR ARMs include: 5/6, 7/6 or 10/6 ARMs, LTV as high as 95% and rates 50 – 75 bps lower than 30-year fixed.
Carrington’s Non-QM loan solutions can address a wide range of borrowers looking for options based on price or ease of qualification with flexible financing for second homes and investment properties.
A&D Mortgage updated its Prime Jumbo Product . Now available for a 15- and 30-YR Fixed Loan, availability to lock right after submission is received, Self-employed 0.5 points reduction is no longer applicable.
Rehab Financial Group can help you get the fast and reliable financing you need, so you can get started on your next big investment. 100% Financing and NO Down Payment = More Leverage. Contact Rehab Financial Group for information.
Second homes located in Clark County Nevada (Las Vegas-Henderson-Paradise Metropolitan Statistical Area) are now eligible for Non-Conforming Loans with Wells Fargo Funding. And Wells’ correspondent group has expanded LTV and CLTV limits for certain Non-Conforming second home transactions. Highlights include 80% maximum LTV/CLTV for second home purchases and rate/term refinances up to $1.5 million combined loan amount. 70% maximum LTV/CLTV for second home cash-out refinances up to $650,000 combined loan amount. Refer to its updated LTV/CLTV matrices for details.
Qualify Your Borrowers Using assets with the ACC Mortgage ASSET DEPLETION Program. Borrowers can qualify utilizing their liquid assets to cover their loan balance, funds to close and even reserves. Get NON-QM deals priced instantly.
No Employment, No Income loans in California are back at Direct Federal Mortgage Inc. Owner Occupied, 30-Year Loans and FICO Down to 640 are a few highlights from its Quick Funding Loan Program Details.
Borrowers with a sub 500 FICO? Athas Capital has a product.
A parade of positive U.S. economic data over the last month that saw several series hit either all-time highs or multi-decade highs was halted by that pesky payrolls report to close last week. Some lawmakers suggest that the government’s supplemental unemployment benefits are discouraging people, particularly in lower-wage positions, from reentering the workforce. Let me remind you that one data point does not make a trend and there is bound to be the occasional miss. Demand is so strong across many industries that supply chains are having a hard time keeping pace, which is a much better problem to have than too weak of demand.
The effect is that these strained supply chains are driving up input prices across the board, which in turn leads to higher basic commodity prices, higher financial asset prices, higher housing prices and likely higher consumer prices. That sure sounds inflationary, which could derail the U.S. recovery. The Fed likes a little bit of inflation. At least low, balanced, and predictable inflation. Too much inflation distorts the economy, debt markets, and other financial market pillars, while too little inflation discourages investment and consumption, leading to anemic performance. The question on investors’ minds is if the economy is going to overheat with interest rates so low. Maybe a little, but slightly higher prices for a temporary period aligns with the Fed’s general aim for an inflation rate of 2 percent on average over time, to make up for exceptionally weak gains over the recent time frame.
So, back to that dismal payrolls report we go. Though a full economic recovery may already be priced into the market, the weak employment data has temporarily eased worries about too-hot inflation and the necessity of interest rate hikes by the Fed to combat it. It’s obviously going to be a complex economic recovery, but on the whole the broad basket of labor-related data remains very positive. We are set to receive some important inflation data with the Consumer Price Index (CPI) tomorrow and the Producer Price Index (PPI) on Thursday.
Today’s economic calendar kicked off with the NFIB Small Business Activity for April (99.8, a 5-month high). The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 11 bps to 4.36 percent of servicers’ portfolio volume in the prior week as of May 2, meaning 2.2 million homeowners remain in forbearance plans. Later this morning brings Redbook same store sales for the week ending May 8, followed by JOLTS job openings and a $58 billion 3-year note auction by the Treasury in the afternoon. In addition to two operations by the NY Fed Desk for a maximum support amount of $5.5 billion, we will also hear remarks from New York’s Williams, Governor Brainard, San Francisco’s Daly, Atlanta’s Bostic, and Philadelphia’s Harker. We begin the day with Agency MBS prices pretty much unchanged from Monday night and the 10-year yield also unchanged at 1.60 percent.
(The scene: a junior high science class.)
Teacher: A single ant can live to be 29 years old!
Student: How ‘bout a married one?
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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 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 2021 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.)