May 27: MLO jobs; private label, fulfillment, non-Agency products; wholesalers & correspondent process & product changes

What guy hasn’t wanted to usher a gal through to a club like Ray Liotta did, masterfully filmed without cutting away? Unfortunately, breaking the spell of the video, I received this note. “Rob, what have you heard regarding a miscalculation of credit scores by Equifax in late March and early April on a sizeable portion of their pulls?” I have indeed heard rumors, and indeed heard rumors that it potentially impacted thousands of borrowers across the United States, possibly influencing the loan programs and pricing that those borrowers received. Something to do with a coding issue introduced during a technology change to Equifax’s legacy online model platform (OMS) possibly resulting in the potential miscalculation of certain credit attributes. Given the seriousness of these rumors, and the potential legal implications of an error of this magnitude, you should definitely reach out and ask Equifax, or ask your credit reporting agency for more information. But hey, it’s Friday before a 3-day weekend. Who wants to work? Yes, after Monday you’ll be able to wear white shoes and be fashionable. So spend 5 minutes taking one of my favorite quizzes focused on figuring out where you’re from based on the words you use for certain common things. (What do you call the little bug that rolls up into a ball when you touch it?) It’s uncanny! (Today’s podcast is available here and this week’s is sponsored by Matchbox LLC, igniting ideas for the mortgage industry. Expertise in assisting clients through transition periods with Technology, Capital Markets, and Education.)

Careers & promotions

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“Take your originations to the next level. The past few months have been challenging for all of us, but at Ross Mortgage Company our LOs are still productive because we are one of the few remaining independent mortgage lenders based in the northeast that is expanding nationwide. We have worked tirelessly to develop a variety of programs to supply our originators with the resources required to grow their business. Exclusive partnerships with world renowned hospitals and large national unions not to mention a robust internal lead generation platform that keeps originators ahead of the competition. We look forward to starting a productive conversation with you on how we can accelerate your origination career. Contact VP Kevin Coleman for more information!”

“If you’re wanting to take your originating career to the next level, we will get you there! In most cases when an originator hits a plateau it’s because the platform they are on doesn’t allow them to grow beyond what they’ve already achieved. One of the Top Originating teams in the nation is looking to help 1 Originator achieve their goals and reach the next level of their career. Looking for a new opportunity is scary, but when that opportunity has a proven track record, a dedicated operations team that closed over $190M last year, fear turns into excitement! Top producers have some advantages not available to everyone. It’s time to give yourself those same advantages, start dominating your market, and take your career to the next level. If you close $25M or more per year and are looking for a breakthrough, contact Anjelica Nixt or click here to schedule a confidential conversation.”

Get ready for a big expansion between CMG Financial & RE/MAX Gold Nation. RE/MAX Gold Nation, named the Number One Franchise Real Estate Organization in the World by 2021 REAL TRENDS 500, and CMG Financial, named a Top Overall Lender by U.S. News & World, have combined forces to form HomeGuide Mortgage. Combining the powers of two major hitters in the home buying field will bring a cutting-edge home financing experience in today’s market.

“We conducted an arduous search for the mortgage partner who would best serve the agents & their clients in Northern California and Nevada,” said James O’Bryon, CEO of RE/MAX Gold Nation. “Chris George and CMG best demonstrate the commitment and entrepreneurial spirit to accomplish this objective. HomeGuide shall be the premier lender in the galaxy of real estate essential service providers.” Interested in joining one of CMG partner companies? Reach out to Chris Harris.

As the market pivots to purchase, Planet Home Lending is already there with the products that win real estate bidding wars and move customers from the pipeline to the closing table. Our Cash 4 Homes program guarantees to close your buyer’s home loan on time or we buy the house for cash. Planet’s bridge loan lets buyers contract to buy as soon as they list so they avoid being stuck between homes when they move up. Those niche products are just one reason Planet Home Lending is rapidly moving up the ranks on the way to becoming a Top 10 lender. Find out more when you watch the new video from EVP, National Production, Caleb Mittlestet. Then, send a note to Caleb Mittelstet or SVP Talent Acquisition Brian Miller. Grow your business with Planet Home Lending — Right Place, Right Size, Right Now!

Inlanta Mortgage, with 39 branch offices in 27 states, announced that Paul Buege has been promoted to CEO. Mr. Buege has been serving as Inlanta’s president and COO and will retain those responsibilities in addition to his new role.

Lender & broker software, services, and programs

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Tired of hearing “no” or “appraisers won’t do them” when you try to order a Desktop Appraisal? Incenter Appraisal Management says “Yes.” For all the excitement around GSE approval for Desktop Appraisals for purchase, adoption has been a struggle. A major hurdle has been the required floor plan. If an appraiser doesn’t visit the home, who creates and verifies the floor plan? RemoteVal Desktop connects appraisers directly to a homeowner or agent’s smartphone, which means they are gathering verified information, photographs, and measurements in real time. As an appraiser does the live inspection through the app, RemoteVal’s embedded 3D video scan feature creates a detailed floor plan they can submit with their report. For most appraisals, RemoteVal turns a 2-to-4-week process into a 3-to-4-day process. For an industry struggling to keep up with demand, RemoteVal is an incredible solution both now and for the future. To see RemoteVal in action, visit here.

“Orion Lending is proud to announce the release of our newest Non-Agency product, Titan Flex! Titan Flex offers Alternative Income Documentation types including: 12 months bank statements (Personal or Business), 1 year income verification, and CPA P & L up to 90% LTV. In addition, Titan Flex offers solutions for those borrowers that wish to leverage their assets to qualify, we have both Asset Depletion and Asset Only choices! With FICO’s as low as 660 and loan amounts up to $3MIL, just think about how many more borrowers can be served! Orion offers industry leading STAR Portal technology now paired with TRUV (Auto-Initiated Verification of Employment and Income Program) for the best possible broker experience! Oh, and Titan Flex is underwritten entirely in house with a 24-hour UW Commitment on Purchase loans! What’s not to love? New brokers are approved within hours, sign up today!”

 

“Unleash the power of PowerTPO Lending! PowerTPO is backed by a multi-channel fintech leader, most recently named to Fast Company’s list of World’s Most Innovative Companies for 2022. We serve Mortgage Brokers, Independent Mortgage Bankers, Credit Unions and Community Banks and offer Conforming and Government products along with fulfillment services from Processing, Underwriting, Closing and Funding. PowerTPO’s leadership team has over 150 years of combined TPO experience and innovation led by industry veterans Brett Arsta, Michael George, and Marla Guillaume – bringing not only an understanding of the value of true partnership, but also an understanding of the future of lending. Brett Arsta, Executive Managing Director states, “our process is simple; we focus on relationships to provide the best experience possible. People, process, and partners equals power.” Are you ready to harness the power? To learn more or become a partner today visit https://www.powertpo.com.”

Maxwell launches Private Label Origination, an end-to-end solution with a full suite of modern software and nationwide infrastructure to build, manage, and grow mortgage operations. Acting as a one-platform, one-partner solution, Maxwell Private Label Origination combines Maxwell’s existing set of products, from digital mortgage software and fulfillment solutions to secondary market capital, to enable local lenders to scale operations and expand their footprint in the mortgage market. This solution comes at a crucial point: With volume declining, lenders are rapidly turning to other loan offerings to boost profitability. Private Label Origination simplifies the process of adding a new channel or product, such as a wholesale channel or HELOC and non-QM products. Maxwell handles all operational logistics and resources for the lender, eliminating the usual complexities, resources, and headaches. To learn how Maxwell Private Label Origination powers profitable and scalable mortgages, freeing lenders up to focus on sales and growth, click here or schedule a call now.

Wholesalers & Correspondents shifting procedures & guidelines

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Mountain West Financial Wholesale posted in MWF Wholesale Bulletin 22W-040, an advisory that when completing the 4506-C for W2 tax-transcripts, the form must be completed as follows: Enter “W2” on line 6, “Transcript Requested” and Check box #7.

Citi Correspondent Lending updated its credit policy on Measuring Gross Living Area for Appraisals. Review the complete policy in Citi Correspondent Lending Bulletin 2022-06.

HOL Credit Bureau change is in effect for new applications submitted to First Community Mortgage Correspondent as of Tuesday, May 3, 2022. More information on HOL Credit Qualification is available in FCM Announcement 2022-14.

As of Friday, May 13, Pennymac updated the Non-Delegated Best Effort loan creation and loan access processes in P3. Applicable to Non-Delegated Clients only, view PennyMac Announcement 22-32 for details.

With rates on the rise, it’s important to offer options to your borrowers. Doing so can help you win the deal, and your clients will also get the loan that’s right for their situation. And these days, an adjustable-rate mortgage could be a smart choice. Check out UWM In The Spotlight for more resources on ARMs, including marketing.

Citi Correspondent Lending Bulletin 2022-07 contains information regarding Automated Income Assessment and Agency Updates Construction-to-Permanent Financing. Effective May 15, 2022, for New Registrations. Additionally, clarifications on Agency Documentation Chapter, U.N. Income Requirements, Sales Contracts, Credit Reports for Borrowers Living in U.S. Territories.

The Wells Fargo Funding Best Effort Rate Sheet (rate sheet) format was updated as of May 23 to comply with the Americans with Disabilities Act (ADA) for users of screen reading technology. As noted in Wells Fargo Funding Newsflash C22-017, its ADA-compliant rate sheet contains an updated sample rate sheet with corrections highlighted on the Non-Conforming Adjusters tab.

Enhanced technology is afoot to improve performance behind wellsfargofunding.com, scheduled to go live June 10, 2022. Changes to image upload process will result in changes for users, shown in Wells Fargo Funding Newsflash C22-017.

Wells Fargo Funding provided guidance for risk management to its Correspondent Sellers. The purpose of this summary is to remind Summarized in Wells Fargo Funding Risk Advisory Bulletin 22-03, the purpose is to remind Sellers of specific elements of the LO Compensation Rule.

The master servicer for the CalHFA (CA) and Home in Five (AZ) programs, is increasing lock extension fees, effective for loans locked on and after May 20. View Mountain West Financial Bulletin 22W-042 for details.

Have a Property with Solar? Get .50 Better in Fee & 90% CLTV to $2 Million with Finance of America Mortgage TPO and its new Two-X Easy Green Jumbo. “DU documentation, higher loan amounts & LTV’s, better price.”

Capital markets

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Per Freddie Mac’s survey U.S. mortgage rates recently posted their biggest weekly drop in more than two years. Fixed mortgage rates declined another 15 bps and 12 bps for 30- and 15-years to 5.10 percent and 4.31 percent, respectively, offering homebuyers a slight reprieve from this year’s massive surge in borrowing costs. While it was the biggest decline since April 2020, rates are still well above the 3.11 percent level at the end of last year and the 5/1 hybrid ARM rate rose 12 bps to 4.20 percent, the highest in 12 years.

But yesterday a rally in equities on Thursday (due to solid outlooks from retailers) helped push Treasury and MBS prices lower despite the day’s $42 billion 7-year note sale meeting stellar demand at auction. Economic data released yesterday showed a downward revision to Q1 GDP to show real GDP decreasing at an annual rate of 1.5 percent, while Pending Home Sales missed April expectations, making for another disappointing housing report. The GDP report saw an upward revision to consumer spending that exceeded the third and fourth quarters, demonstrating that the U.S. consumer drove activity in the first quarter despite rising interest rates and higher costs for most goods and services, primarily food and energy.

Pending Home Sales fell 3.9 percent in April for a sixth straight month while the March decrease was revised down amid affordability challenges for home buyers. That aforementioned decrease in mortgage rates can’t hurt.

The New York Fed Desk released a new Agency MBS purchase schedule covering the May 27 to June 13 period which totaled $18.1 billion, the sixth consecutive schedule that will not see any net additions to its balance sheet. The schedule contains the same coupons as the prior schedule for 30-year operations targeting 3.5 percent through 4.5 percent, with 4 percent added to 15-year operations which now include 3 percent through 4 percent, though are mostly concentrated in 3.5 percent. The total amount the Desk is targeting for each specific coupon has changed as the bank’s focus moves up the coupon stack. Today’s schedule sees the Desk conducting one operation which will target up to $1.1 billion UMBS30 3.5 percent through 4.5 percent. The monthly reinvestment is estimated to fall to around $25 to $30 billion by mid-summer.

Today’s early-close economic calendar is under way with April personal income and spending (+.4 and +.9 percent, respectively), the PCE Price Index (+.2 percent, slowing dramatically, and +6.3 for the year; core +.3 percent, +4.9 percent for the year), and the advanced goods trade deficit ($105 billion). Later this morning brings the final May Michigan sentiment, a 1:00pm ET futures settlement and SIFMA recommending a 2:00pm ET close ahead of the long Memorial Day weekend. We begin Friday with Agency MBS prices roughly unchanged and the 10-year yielding 2.74 after closing yesterday at 2.76 percent.

My Dad (U.S. Navy, 1942-1962) was quick to remind me that Memorial Day doesn’t honor servicemen and servicewomen, or veterans. It is a federal holiday in the United States for remembering the people who died while serving in this country’s armed forces. The number totals about 1.1 million, almost half of which were in the Civil War. First recognized in 1868, it was set on the last Monday in May starting in 1971. Give those who gave the ultimate sacrifice for our nation more than a passing thought, not only Monday but throughout the year!

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.)