Here’s something you can do for your friends, relatives, and borrowers, especially older ones: Remind them that the current batch of coronavirus relief payments are coming as VISA debit cards. Texas’ Larry C. reminded me that we’ve all unexpectedly received cards in the mail that we didn’t order and cut them up before throwing them in the garbage. Don’t do it this time! 2020 has been quite the year for unexpected things. In March, as huge fundings hit the secondary markets, REITs withdrew, and the Fed stepped in as a big buyer. But too big. Things balanced out, but when the CARES Act hit with its forbearance plan for anyone with government-backed mortgage, it “broadened the denominator” and thrust making the advances onto the servicer. That created a potential liquidity crisis for most non-bank servicers, many of whom grew out of 2008 crisis. Warehouse banks grew nervous about financial condition of non-banks with servicers and concerns about counterparty risk of all sorts increased. And all in the last two and half months! Economists are really great at predicting the past. But the mortgage market has quieted down and lenders can look forward to low rates well into the future!
“We’re growing! There’s never been a better time to join our talented team. American Financing is looking for talented and enthusiastic candidates to join our sales, tech, and operation teams. At American Financing, we’re innovators with imagination. We’re fast-paced and fun. And we’re a collaborative group that respects and values the individuality of all employees. Together, we do what it takes to help borrowers achieve their financial goals. And we stay ahead of the competition by challenging ourselves to become more efficient. We are one of the fastest-growing national mortgage lenders because we don’t follow the status quo. Wherever your passions lie, you can find rewarding work and new opportunities here and we’d love for you to join our growing team.”
“Freedom to Succeed! Freedom Mortgage is growing and looking for talented and experienced Wholesale operational professionals to help us serve the needs of borrowers, brokers, and wholesale correspondents across the nation. Work from home opportunities for Loan Processors, Closers and Underwriters are available throughout the continental U.S. Prior to the COVID-19 pandemic, the vast majority of our teams already worked from home, so you will be ready to seamlessly and efficiently contribute to our goals on day 1! If you are fueled by your entrepreneurial spirit and are looking for a great work culture, please visit bit.ly/FMRecruiting.”
Wyndham Capital Mortgage, a leading digital home lending company, is a recipient of the coveted Innovation Award by Ellie Mae. The honor recognizes Wyndham as the industry leader in AI technology, having leveraged robotic process automation to create a workflow that is faster, smoother, and more efficient. Wyndham Capital has its eyes toward the future, looking for new advancements to improve our workflows, processes, and systems. The Innovation Awards honor recognizes the company’s technology-enabled, people-driven culture and the impact it has on both employees and borrowers. With robotics and AI incorporated throughout the lending process, loan officers at Wyndham are freed of menial, time-consuming tasks and given the freedom to focus on providing the best to the borrower, every time. Click here to learn more about Wyndham’s best-in-class technological innovations and how loan officers are given the tools they need for success.
Branch Managers and Production Teams look to Pacific Residential Mortgage (PacRes), to perform at a high level: aggressive underwriting and provide a strong and supportive pro sales culture possible. In today’s environment, you can’t be successful without this. What made Pacific Residential standout from all the other lenders you interviewed? “Honestly, PacRes is the lender for top producers or anyone who desires to be a Top Producer. Weekly top producing coaching calls, sales tools and referral based sales strategies, appealed to me and they cater to aggressive goal oriented loan officers and production teams, by far the best mortgage platform I’ve seen across the United States”, says John Phillips, Loan Officer and National Business Development (413.221.2977). If you want to expand in the Midwest, Texas, Panhandle, New England, and Southeastern markets, call PacRes. If you are interested in learning more, email JoinPacRes@pacresmortgage.com.
Services & products for lenders
“At Mr. Cooper, we are proud to have provided forbearance relief to 200k+ of our valued customers. As a firm, we have worked on behalf of the industry, specifically the non-bank community, to ensure that legislation and advance liquidity solutions are available to meet the needs of the mortgage servicing sector. Specific to our valued correspondent clients, we continue our dedication to be a leading investor and our passion shows through our service and offerings. The correspondent business is core to our franchise, and as the industry progresses through this COVID-19 period, we are focused on providing robust solutions across mandatory and best efforts (both delegated & non-delegated). We thank each of our clients for their business and are cheering for everyone’s safety through this COVID period. Mr. Cooper is a top 10 correspondent investor and the largest non-bank servicer with a servicing portfolio $600B+.”
“Axos Bank Wholesale and Correspondent Portfolio Lending continues to provide innovative products and enhanced options. Always a market leader in the Jumbo/Super Jumbo, Non-QM, and portfolio lending space, we offer creative solutions for today’s complex transactions. Maximize your origination opportunities with loan amounts up to $30MM, no cash-out limitations, 90% LTV with asset pledge, 100% financing with cross-collateralization, 12 month bank statements, asset depletion program, foreign national/non-permanent resident alien programs, plus bridge to sale and pledged asset lending. Email Axos to learn more about how Axos Wholesale Lending is delivering exceptional products, service, and support to our mortgage brokers, mortgage bankers, and home builder partners during these uncertain times.”
30-year fixed rates starting at 2.5%. Grow your new business with Conquest from UWM. Just in time for what could be the best purchase season our industry has ever seen, UWM has launched Conquest, a program designed to help brokers win new business by offering competitive rates at the lowest rate ranges on all purchases and on many refinances. With 30-year fixed rates ranging from 2.5-3.0% on purchases and rate/term refinances, it’s a great way to add new borrowers to your roster, build new relationships with real estate professionals and wow them all with UWM’s fast turn times, elite service, and groundbreaking technology. Talk to your UWM account executive or sign up today at uwm.com.
Can you forecast how current economic conditions will affect properties in your portfolio? With DataTree by First American Portfolio Surveillance Solutions, you can discover the insights, liabilities and opportunities existing within your loan portfolio and turn critical lien information into action. DataTree portfolio monitoring solutions proactively analyze the performance, value, and position of liens for loans in your portfolio, from an HOA or tax lien to a notice of default. Enhanced data and insight provide a transparent view of activities that impact properties, so you can support your clients. Monitor Loan Portfolios with solutions Fueled by DataTree best-in-class data and backed by data specialists with extensive experience in understanding the evolving conditions that may impact your lending and servicing business.
Check out this FREE Live Workshop on June 3 – Experts Alex Kutsishin, Co-Found and CEO of Sales Boomerang, and Paul Harrington, Business Development Director for Usherpa, explain how Loan Officers can provide value to their Realtor partners and build mutually-beneficial relationships by utilizing authentic data intelligence. Authentic intelligence linked to powerful CRM and Marketing systems give Loan Officers the opportunity to share actionable buyer data that Realtors can use to grow their business. By providing value to Realtors, LOs can cultivate crucial professional relationships and establish rock-solid referral pipelines. It’s a win, win, win. LOs win, Realtors win, and borrowers win. Register Now: The Holy Grail- Send Realtors Buyers.
Customer satisfaction: still job #1
Is there a constant in this ever-evolving environment of pandemic impacts? “Yes,” says the May issue of STRATMOR Group’s Insights Report — the need to focus on the customer. In “Creating a Customer-Centric Culture in a Brave New World,” MortgageSAT director Mike Seminari relates findings from STRATMOR’s recent Customer Experience Workshop where the most-asked question by lenders attending was “How do you create a shift in company culture toward customer-centricity?” Seminari offers three steps for building a customer-centric culture and provides tactical suggestions with each step for lenders to implement. This issue of the Insights Report also includes STRATMOR’s COVID-19 Homeowner Experience Report with details from their recent survey of the pandemic’s impact on 1,000 homeowners.
Without someone who wants to invest in a new mortgage, it won’t be originated. What is going on with U.S. non-QM mortgage bond supply and demand? Although non-QM production is far less than 1 percent of the market, there are indeed signs of life. Last week, Invictus and Angel Oak combined raised $708 million, and names being mentioned include Starwood Property Trust and Neuberger Berman. ThomsonReuters reports that the non-QM RMBS supply has totaled US$4.92bn so far this year, down sharply from the US$9.43bn for the same period in 2019. (For comparison, Ginnie Mae issued $63 billion of mortgage-backed securities in April, one month’s worth. If we do $2.5 trillion this year, non-QM would have to hit $25 billion to even be 1 percent of the market.)
Fannie’s trading desk has updated the Pricing & Execution – Whole Loan FAQs.
As much of the country moves towards reopening many shops and businesses, governors patiently watch the health data for signs of an increase in Covid-19 cases and the potential for a second wave. While it remains too early to assess the full effects in the states that were first to reopen, so far there does not appear to be a new surge in cases. Last week was relatively quiet in DC as lawmakers and the Fed expressed a desire to monitor the effects of the previously enacted relief measures before enacting more stimuli. Expect continued debate over whether the massive budget deficits resulting from more fiscal stimulus will be worse than potential long-term damage resulting from the current recession. This will play out against a backdrop of more than 38 million people and counting filing for unemployment since the start of the pandemic. As some begin to go back to work, markets will adjust their expectations as to what constitutes improvement. Despite activity still being down nearly 90 percent in some sections of the economy we’re already seeing people celebrate any small uptick that could potentially signal a turning point.
Interestingly enough, Treasury yields pulled back yesterday despite escalating global tensions. China’s rubber-stamp legislature approved sweeping national security laws in Hong Kong, defying condemnation of a move democracy advocates and residents of the former British territory warn will allow Beijing to crush free speech, freedom of assembly and a free press. President Trump announced a press conference today to discuss China, with investors speculating the U.S. will take action against the Beijing that could destabilize the global economy. I don’t like sharing my opinion much, but this feels exactly like when Ukraine annexed Crimea a couple years ago: lots of initial outrage followed by what I presume will be slow acquiescence and an accepted new normal.
Let’s focus on some actual economic releases and their impact on the economy. New jobless claims shrank for the first time during the pandemic, a sign that things may be returning to normal, but still posted a multi-million increase (2.123 million) and managed to top 40 million since the pandemic-related shutdowns began in earnest. On an even less positive note, pending home sales slumped to a record in April, posting their second consecutive drop of more than 20 percent and the largest decline since 2010, as lockdowns thwarted buyers. And Q1 GDP was revised downward to -5.0 percent from -4.8 percent, though markets didn’t pay much attention as the presumption is economic activity will rebound in the coming months. The 10-year Treasury yield closed the day +3 bps to 0.71 percent.
COVID will continue to impact world economies well into the future, and in the United States today’s economic calendar is already underway with April Personal Income (+10.5 percent due to unemployment checks!), Personal Spending (-13.6 percent as people put their money in the bank!), April Advance Goods Trade Balance (-$69.68 billion, widening), April Advance Retail Inventories (-3.6 percent), and April Advance Wholesale Inventories (+.4 percent). The month-end calendar closes later this morning with May Chicago PMI and Final May Michigan Consumer Sentiment Survey. The lone Fed speaker sees Chair Powell speaking remotely on the economy in a couple hours. As far as MBS purchases go, the NY Fed will conduct two FedTrade MBS purchase operations totaling up to $4.77 billion today, starting with up to $1.8bn GNII 2.5 percent through 3.5 percent followed by up to $2.97 billion UMBS30 2 percent through 3 percent. A new MBS FedTrade purchase schedule is due in the afternoon. We begin the day with Agency MBS prices better/up by a few ticks and the 10-year yielding .66.
Thank you to Mike Z. who sent:
A priest, a rabbit and a minister walk into a bar.
The bartender asks the rabbit “What’ll you have?”
The rabbit says “I dunno. I’m only here because of autocorrect.”
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, “Reducing Friction”, focused on operations changes. If you have the inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
(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 2020 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.)