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2022 (188)

2021 (308)

Friday, December 31 Dec. 31: Morsels on gambling psychology, inflation fears, the flattening yield curve, and why mortgage prices are sometimes “sticky”
A “handsel” is a gift given to wish good luck for the year ahead. The word dates back to the 1300s, and derives from “hand” and “selen,” an Old English word meaning gift or donation, a cousin of the word “sell.” A handsel can also be the first installment of a payment or bond, although Continue reading
Thursday, December 30 Dec. 30: MLO jobs; workflow, vendor mgt., digital processing tools; warehouse bank wanted; Freddie & Fannie news
Do we have an 8-year memory in an industry with 10-year business cycles? Bridging the gap between affordability, qualifying with a low income, and rising house prices are not issues confined to the United States. A new company and product out of London (Habito) claims to do all that, and is offering medical professionals and Continue reading
Wednesday, December 29 Dec. 29: Branch, MLO jobs; pre-approval, business intelligence, non-QM, reno products; workplace COVID changes & requirements
Would you tie up your money for five years and earn 1.26 percent the whole time? That’s pretty much where the $57 billion 5-year Treasury note auction went off yesterday. (Keeping things almost misleadingly simple, think about an investor buying a 30-year MBS that yields 2.75 or 3.00 percent… would you do that?) Will the Continue reading
Tuesday, December 28 Dec. 28: Management, MLO, branch jobs; broker, ECOA, VA cash out products; disaster news; thoughts on yield curve & IMBs
Whether or not you think that climate change is real, you can’t deny that there is a climate, and that climate-related disasters occur… to the tune of $170 billion this year per one estimate. And given that state-specific foreclosure laws impact servicing values, and therefore rate sheet pricing, servicing values that vary based on the Continue reading
Monday, December 27 Dec. 27: Ops, Bus. Dev., MLO jobs; purchase biz, eNote tools; FHA, VA, Ginnie news; inflation & savings
I hope that you’re not reading this while stuck due to the thousands of cancelled flights or road closures in Northern California! Kudos to Carol K. who sent, “One thing nobody ever talks about being an adult is how much time you debate yourself on keeping a cardboard box because it’s, like, a really, really Continue reading
Friday, December 24 Dec. 24: MLO jobs; VOE product; Like rust, regulators never sleep: CFPB, OCC, NCUA, DOJ news
From Pennsylvania, Glenn F. writes, “Banks need to get better at restocking their ATMs, especially at Christmas time!! I just left my 5th one that had, ‘Insufficient Funds.’” Even folks at the CFPB may chuckle at that one, although they are certainly keen on expanding their power base to include all things impacting consumers. What Continue reading
Thursday, December 23 Dec. 23: Branch mgr., MLO jobs; Encompass, rehab, CRM products; jumbo, non-Agency, non-QM changes
When I was a kid, we’d trade baseball cards between each other… at least the ones that weren’t in the spokes of our bikes. The creativity, technique, and outcome has changed, and thank you to Indiana transplant Carol K. for passing along this tale of how a woman started with a bobby pin and, adding Continue reading
Wednesday, December 22 12-22-21: Consumer direct, MLO jobs; HELOC, broker, POS/LOS products; FEMA news… private flood insurance for FHA loans?
Yes, you should know that today is a date palindrome. Of course people in Ohio, and Florida, know that Key West is farther west than Cleveland. Utah is farther west than both, and sometimes, when everyone zigs, one person will zag, and with good reason (thanks to Ken S. for sending this very fun video Continue reading
Tuesday, December 21 Winter Solstice: MLO jobs; processing, speakers bureau, marketing, subservicing products; conventional conforming changes; Rocket’s acquisition
If you are a VA lender, or service servicemembers’ loans, you don’t want to be singled out by the Department of Justice or the CFPB. And the two of them sent out letters yesterday with one of the letters specifically addressing mortgage servicers regarding military borrowers who have already exited or will be exiting COVID-19 Continue reading
Monday, December 20 Dec. 20: JV President, AE, MLO, U/W jobs; Sales, tech, VOE tools; Freddie & Fannie changes continue; omicron & mortgage rates
W.C. Fields said, “Money will not buy happiness, but it will let you be unhappy in nice places.” Unfortunately, many people have much less of it, and here’s a quiz to start the week. What are -68 percent, -66 percent, -60 percent, -40 percent, -13 percent, and -2 percent? They are all the stock performance Continue reading
Saturday, December 18 Dec. 18: Books & videos for last-minute gifts; great anti-hacking tips… disposable emails? Saturday Spotlight: Consolidated Analytics
I was out cocktailing the other night. (Yes, that is a verb for people in mortgage banking.) I asked someone if they were a member of a wine club. The person replied, “Wine club? Nah. I belong to a pot club!” I guess nearly every business has a competitor, and now California weed businesses are Continue reading
Friday, December 17 Dec. 17: AE, MLO jobs; mentorship, TPO, QC report, CRM, pooling products; Ginnie: $2.14 trillion outstanding; Fed path set
Are you afraid of the day that the Federal Reserve stops buying mortgage-backed securities? “Afraid” is too strong a word. (For many, this activity would define “afraid”… kids, don’t try this at home.) But the largest buyer, of Agency MBS, which now owns 30 percent of outstanding Agency securities, has now sped up the pace Continue reading
Thursday, December 16 Dec. 16: AMC, sales, secondary, ops jobs; PPE, customer retention, dashboard tools; lender profitability study; rates shrug at faster tapering
I work hard to live a very glamorous life. I mention this because yesterday, when I sent the Commentary out from the road at a glamorous McDonalds in Northern California (free Wi-Fi!), I noticed that the price of my usual glamorous Egg McMuffin meal (with OJ) has skyrocketed to $10.06 from $7.60 earlier this year! Continue reading
Wednesday, December 15 Dec. 15: AE, MLO jobs; Pricing, subservicer, appraisal, jumbo & DPA products; deep dive & primer on the Fed’s discomfort
California has reinstituted its mask mandate. No one is interested in living in isolation again. Remember, “Your quarantine alcoholic name is your first name followed by your last name.”? Simple. Life doesn’t have to be complicated. What are the ingredients of Frito-Lay’s Corn Chips? Corn, corn oil, and salt. But technology, and compliance, are anything Continue reading
Tuesday, December 14 Dec. 14: Data, AI, Encompass, workflow, lead conversion tools; credit tightening; approaching events & webinars; LO comp paper
No CEO wants to hear from their secretary, “The CFPB is holding for you on Line Two.” Lenders who have different prices in the same MSA? Don’t even try. Got a clever idea about net branches that aren’t net branches? Give it up. A point bank, labeled something else? Let me know how it goes Continue reading
Monday, December 13 Dec. 13: MLO jobs; servicing, closing, AI, MI products; USDA, FHA, Ginnie news; rates quiet… holiday slow down?
Everyone has a plan until they get punched in the mouth. If you haven’t seen a video (this one from a drone) of the destruction in the South and Midwest, especially Kentucky, take a look. The loss of human and animal life is terrible, and it will take years to clean up and rebuild the Continue reading
Saturday, December 11 Dec. 11: One swindle’s timeline; vendors merging, raising money, partnering; secondary market deals; an economic riddle instead of a joke
How are things going, industry-wide? According to Curinos, November 2021 residential mortgage rate-lock volume was down 26% YoY and 5% MoM across all channels, while funded volume decreased 14% YoY and 9% MoM. In the retail channel, lock volume decreased 23% YoY and 5% MoM, while funded volume was down 13% YoY and 9% MoM. Continue reading
Friday, December 10 Dec. 10: Sales, admin., MLO jobs; AI, TPO, warehouse, CRM tools; customer service tip; LIBOR cessation news; FDIC & CFPB tiff?
When the public sees headlines like, “A Black Couple had a White Friend Show Their Home and Its Appraisal Rose by Nearly Half a Million Dollars,” of course regulators are going to take note, as will the public. In response to the Better.com public relations nightmare, from Wyoming comes, “No man is completely useless; he Continue reading
Thursday, December 9 Dec. 9: MLO jobs; sec. mktg., broker, non-QM, disaster, dashboard tools; VA & FHA changes; how ’bout those jobless claims!
Want to know who’s in trouble for what? The Consumer Financial Protection Bureau (CFPB) issued its Supervisory Highlights report yesterday, which “shines a light” on legal violations identified by the CFPB’s examinations in the first half of 2021 as well as prior CFPB supervisory findings that led to public enforcement actions in the first half Continue reading
Wednesday, December 8 Dec. 8: Sales, appraisal, MLO jobs; jumbo, processing, servicing, warehouse tools; Better.com’s woes; deep dive into cap mkts.
“Dear Santa: This year I would like a) a slim body, and b) a fat bank account. Don’t mix them up like you did last year.” Ah, if only we could turn back time. Better.com CEO Vishal Garg’s apology letter to current employees has been leaked on Blind by a verified Better employee. (Blind is Continue reading
Tuesday, December 7 Dec. 7: Sales training, VOA, talent acquisition, marketing tools; CFPB trends: No one should compete on compliance!
Today I head to San Diego for a California MBA Legal Issues & Regulatory Compliance Conference and board meeting, the home base of the Pacific Fleet. It’s been 80 years since Pearl Harbor, a “date that will live in infamy.” That was a terrible day. We all have bad days, but nothing in comparison to that and Continue reading
Monday, December 6 Dec. 6: High level correspondent, warehouse, sales jobs; referral, sales, VOE tools; fast-approaching events & training
Do you smoke weed? Have you been vaccinated against COVID? Too early in the workweek for those questions? (Is it okay to ask if someone’s been vaccinated against polio?) Some questions aren’t, can’t be, shouldn’t be, are too politically charged to be, asked. We don’t want to need a lawyer to have a conversation with Continue reading
Saturday, December 4 Dec. 4: Reminders on LO comp structure; LIBOR transition & ARMs; vendor updates; Saturday Spotlight: The Work Number
It doesn’t matter if you can buy a house, or fund a loan, in a few hours. When it comes time to remodel, or build an in-law unit, from major appliances to lumber to the smallest pieces of pipe, items needed to build or fix up homes are hard to come by as the global Continue reading
Friday, December 3 Dec. 3: MLO jobs; mentoring, recruiting, productivity tools; investor’s FHA, VA, USDA program news; Better.com layoff video
Huh? Someone told me that “reality” shows are all scripted out ahead of time and there’s a standard recipe! What the heck?! There are some things where recipes are expected, like making food. Popular Mechanics takes us inside the largest handmade candy factory in this interesting video. Hammond’s Candies has been making its world-famous confections Continue reading
Thursday, December 2 Dec. 2: Marketing, MLO jobs; homebuyer, fee collection, loan delivery tools; conv. conforming changes continue; IMB profits!
Today, 20211202 (2nd December 2021), is a palindrome in the YYYYMMDD format. That aside, sorry the commentary is a little late this morning: I went out drinking after my yearly review with my cat Myrtle last night. It did not go well. By the way, she is the one that reviews my performance; I don’t Continue reading
Wednesday, December 1 Dec. 1: COO, QC audit, MLO jobs; coaching, jumbo, medical professional products; investors follow conventional conforming limit changes
Lenders are focused on December, and 2022, and along those lines the MBA’s Chief Economist Mike Fratantoni will be presenting a forecast today for next year. Of immediate concern are year-end closings: this is the day of the year when a 30-day rate lock doesn’t quite match its name, given the upcoming holidays. There’s no Continue reading
Tuesday, November 30 Nov. 30: AE, MLO jobs; ECOA, coaching, title, verification tools; events/training this week; rates driven by bad pandemic news
Brian C. writes, “I was surprised when I got my new Tesla, instead of the new car smell, it had an Elon Musk.” Tesla was founded 18 years ago. Time flies. For 20 months now mortgage rates have been driven by pandemic news, like Moderna’s announcement this morning. We’ll receive the official conforming amounts for Continue reading
Monday, November 29 Nov. 29: Branch mgr., non-QM, Encompass jobs; cash out, warehouse, fulfillment tools; lenders’ capital structuring news
While headlines move interest rates and countries are shutting their borders again, our industry awaits the official 2022 conforming loan limits after the FHFA’s HPI data is reported tomorrow. We’re reminded that Freddie and Fannie (and Ginnie for that matter) are names of companies that were turned into acronyms which then became nicknames. Residential lenders Continue reading
Saturday, November 27 Nov. 27: Password trivia; manufactured housing news; crypto marches on; vendor news; deals in the secondary markets
If someone produces a study on passwords, that must mean they can see yours, right? “Myrtleis1Apexpredator” probably isn’t high on the popularity list. But a new analysis from Nordpass of password usage found that the most commonly used password is “123456,” used 103,170,552 times. Other popular passwords include “123456789” and “password” and “qwerty.” Do you Continue reading
Friday, November 26 Nov. 26: Jumbo, non-QM, ARM news; rates (and stocks) plummet in thinly-traded market on lousy pandemic news
As millions of Americans convince themselves that loading and unloading the dishwasher counts as exercise, while we are reminded that rates are impossible to predict when based on headline risk like the COVID news out of South Africa, and while residential lenders (including jumbo and non-QM segments) wait for the annual setting by the FHFA Continue reading
Wednesday, November 24 Nov. 24: Sales leadership, MLO jobs; jumbo, non-QM, credit, processing products; sponsored events; conventional conforming trends
Ready to play Iowa’s Thanksgiving dinner bingo? Coffee prices are at a 10-year high, but drinkers will figure out what to do to afford it. All day long people tell me what to do. Travel safe. Be well. Take care. Have a nice day. Fly safe. Have a nice trip. Take care. Drive safely. Have Continue reading
Tuesday, November 23 Nov. 23: Training, sales, MLO jobs; tech, sales, subservicing tools; fee changes & processing changes around the biz; Fed Chair Powell a “go”
The price of plenty of things, not just mortgages, is set by supply and demand. Forget the price of turkey… how ‘bout Christmas trees?! I don’t know how Christmas tree “experts” figure that out, but look for 10-30 percent higher prices than last year, and it has nothing to do with ships stuck in the Continue reading
Monday, November 22 Nov. 22: Servicing, AE, LO, FHA jobs; FHA cash out, pre-approval letter, VOE, digital products; in-depth look at forces moving rates
Time flies. For example, Thanksgiving week is here already. Debbie Harry, of Blondie fame, is 76 years old. Better.com has already been around five years. No lender wants to see the word “fraud” in its history while folks are watching its merger partner SPAC Aurora Acquisition: “Better.com has pushed fees and commissions down to zero, Continue reading
Saturday, November 20 Nov. 20: IMBs and CRA; letter on the inner workings of appraisers & AMCs: who, why, what, fees, and alternatives for appraisers
Thank you to Glenn F. who sent, “My sister-in-law will make what she makes every year for Thanksgiving: A scene!” Lenders have much to be thankful for as we head toward “turkey day” and the end of the year, especially if they’ve been accumulating servicing. STRATMOR features a primer on hedging it, and in his Continue reading
Friday, November 19 Nov. 19: Business opportunities, MLO, AE jobs; del, non-QM products; Remember the False Claims Act? European lockdown driving rates
Before we gear up for reported Christmas tree shortages and their exorbitant prices, Brent G. writes, “My family asked me what I was planning for Thanksgiving. ‘Having four margaritas before you get here’ wasn’t the answer they were looking for. The stock of publicly traded wholesalers such as UWM, Home Point, and loanDepot isn’t what Continue reading
Thursday, November 18 Nov. 18: Ops, HR, MLO, jobs; cap. mkts., comp, social media products; tech change study; dive into housing starts, Fannie’s 2022 forecast
Recently the podcast, its link at the bottom of this opening paragraph daily, quoted, “Change in residential lending is mandatory; progress is optional.” Technology, volume, personnel, the list goes on. (STRATMOR sums up tech changes below.) Tax changes are always in the works too, and states’ property tax burdens are a factor for families who Continue reading
Wednesday, November 17 Nov. 17: L1 jobs; customer service, jumbo, pricing tools; nCino/SimpleNexus $1.2 billion deal; events to wrap up November; climate change humor
29 working/business days left in 2021. Some MLOs, who can shift their client’s refi closings, are thinking about the tax implications of closing this year or next. Everyone is dealing with seasonal purchase slowdowns, appraisal bottlenecks, lower margins, higher marketing spending, no overtime. Lenders are interested in optimizing their technology, workflow process, and lead conversions Continue reading
Tuesday, November 16 Nov. 16: Reverse jobs; TPO loan, e-signature, sales, automation, U/W products; lenders & loan amounts; inflation & retail sales driving rates
“Poor man wanna be rich, rich man wanna be king, and the king ain’t satisfied ‘til he rules everything.” I mention this, not to point out what Bruce was up to when he was 30 years old, but because yesterday in Wichita I passed by the estate of Charles Koch. Like any billionaire he and Continue reading
Monday, November 15 Nov. 15: Finance, AE, MLO, U/W jobs; Sales, automation, VA cash out products; inflation & rates; Freddie & Fannie updates
This morning I head to Kansas for the MBAKC annual membership luncheon later this week. Home price appreciation is doing just fine in Kansas City, and has been for quite some time, and here’s a fact: the windiest city in the United States is Dodge City where the average wind speed is 14 miles per Continue reading
Saturday, November 13 Nov. 13: Letters on appraisers and AMCs; vendors & new products; Saturday Spotlight: HouseCanary
Did you know?! By replacing your morning coffee or cocoa with herbal green tea, you can lose up to 90 percent of what little joy you still have left in your life. Some readers know that I’m up at 4AM PT every day. But sometimes I’m up at 2 or 3AM, fretting about whatever, and Continue reading
Friday, November 12 Nov. 12: AE, MLO, title franchise opportunities; eClose, TPO, operations efficiency tools; events and training into 2022
Forget mortgages… As snow hits the Upper Midwest and rain hits the East Coast, according to the USDA, nationwide frozen turkey inventories are 24 percent below the average three-year volume. Nothing to do with the Suez Canal, but the logistics of getting birds into freezers has been more tumultuous than typical, leading to frozen turkey Continue reading
Thursday, November 11 Veteran’s Day: MLO, sales jobs; TPO products, automation, sales tools; digital survey; compliance news: CRA, M&A, complaints
Happy Veteran’s Day (the 11th hour on the 11th day of the 11th month of 1918…), where veterans around the nation are honored (as well as enjoying discounts at many places, so pass this link along to your clients for some great deals). This industry is filled with extraordinary people doing ordinary things and ordinary Continue reading
Wednesday, November 10 Nov. 10: MLO jobs; securitization, MSR, analytics, desktop appraisal products; credit availability numbers; mortgage apps increase
I recently spent some of my day receiving a COVID test, and the nurse asked me, “Have you had a sudden loss of taste?” I replied, “No, I’ve always dressed like this.” MLOs and lenders have always spent their days helping clients create wealth. And woe to any lender whose profits are based entirely on Continue reading
Tuesday, November 9 Nov. 9: Ops, MLO, AE jobs; tech, sales, risk mgt. tools; TPO/wholesaler news; Fed turnover spelled out
I worked on a trading desk for many years, hedging locked pipelines across a wide variety of lenders. During slow times we’d talk about all kinds of things, like does bending over to pick up a wine cork count as exercise? (I hope so.) We’d also talk about lock volumes of our clients. Is volume Continue reading
Monday, November 8 Nov. 8: MLO jobs; VA cashout, HELOC servicing, bilingual tools; disaster updates; jumbo & non-QM morsels
Starting today I’m in Oklahoma City for the OMBA Conference. The median home price here is roughly $150,000 and housing prices are up nearly 7 percent in the last year, ahead of the 5.4 consumer inflation rate. Life is filled with numbers. I wonder what the numbers were to have Paul McCartney grace the cover Continue reading
Saturday, November 6 Nov. 6: Letter on AMC accountability; vendor soundbites; Saturday Spotlight: Indecomm; consulting humor
Not everyone has a mortgage, but everyone is impacted by time and the sun. Come tomorrow, Sunday at 2:00 a.m. EST, Daylight Saving Time is coming to an end. An hour repeats because the in 1966 the federal government decided it should. The government first implemented Daylight Saving Time during World War I to save Continue reading
Friday, November 5 Nov. 5: Ops & Sales mgt. jobs, team available; automation, processing, title, due diligence tools; FHA & VA news; the Fed & rate increases
Nothing brings women together quite like an unclear dress code. Dress codes have been all over the map during the pandemic, and as companies adjust to having everyone come back into the office, a hybrid approach, or letting workers stay home (each with pros and cons), some look at what other professions are doing. In Continue reading
Thursday, November 4 Nov. 4: Cap. mkts., MLO, U/W jobs; hedging, compliance, sales tools; Fed’s tapering & mortgage rates
Excuse me while I rant a bit. Let’s throw some money questions your way on a Thursday. Do you have any Rice Krispies at your store? If you do, buy them: Kellogg’s cereal plant workers are on strike. (I want to let them know that they have my full support after I finish my breakfast.) Continue reading
Wednesday, November 3 Nov. 3: MLO, DTC jobs; borrower-centric, purchase, medical professional products; investors’ Agency news
Real estate investors, agents, and lenders were keenly interested in Zillow’s earnings call yesterday. Those of us listening in learned that the company is ending its home-flipping business and will lay off 25 percent of its staff. No one can consistently, accurately predict housing prices, or rates. In his Basis Point, Julian Hebron addressed the Continue reading
Tuesday, November 2 Nov. 2: Training & events, secondary marketing, automation, U/W tools; loan amount breakdown; Agency news never stops
No tree grows to the moon, right? You may not be alone if you are seeing a few more “For Sale” signs in your neighborhood, and those signs may be sticking around a little longer. Only 58.9% of home offers faced competition in September, the lowest level for 2021 so far. That’s down from a Continue reading
Monday, November 1 Nov. 1: MLO jobs; Cap. mkts role wanted; HELOC, processing, MSR products; extensive range of training & events coming up
November already? A feast for giving thanks for the harvest began in 1621, and was celebrated intermittently by various colonies/states for the next 240 years. The first national Thanksgiving Day did not mention the Pilgrims by name, but was created in 1863 by President Abraham Lincoln coinciding with expressing gratitude for a pivotal Union Army Continue reading
Saturday, October 30 Oct. 30: HUD & operating losses, forbearance agreements; vendor news; Fannie deals; Saturday Spotlight: First Federal Bank
It’s already the kind of day where I wish tequila came out of my shower. To be blunt, are people becoming dumber? We’re reminded of how MLOs earn their money when some of their clients don’t even understand fractions. For instance, in the 1980s, McDonald’s Quarter Pounder was ascending in popularity, and rival A&W released Continue reading
Friday, October 29 Oct. 29: Warehouse, JV, MLO, DTC jobs; digital, sales, non-QM webinars; Rohit & the CFPB on the move; big-name mortgage co. earnings
I got some exciting news yesterday: Snickers are gluten free! Actually I don’t care (the more gluten the better… does the government allow us trick or treating?) but figured I’d pass that along as it is much more fun to talk about than, say, COVID. The press has turned its attention to the “Delta Plus” Continue reading
Thursday, October 28 Oct. 28: AE, LO jobs; Cap. mkts., compliance, homebuyer, pre-approval products; Fair Lending & compliance are in vogue
I have to go to Target later today to buy Halloween candy because I went to Target last week and bought Halloween candy. Get it? Here’s another question: In the U.S., what’s the difference between being unemployed and working at Starbucks? Unemployed people got paid more in 2020. (Although in 2022 Starbucks is raising its Continue reading
Wednesday, October 27 Oct. 27: MLO jobs; TPO loan products; MBS, presentation, jumbo, business plan tools; primer on conforming loan amounts
While huge blocks of servicing are hitting the market, Cenlar has had better days than yesterday. (“We take seriously our regulatory obligations and we are working with the OCC to make any changes necessary to resolve their concerns.”) I could not find a dollar fine. But speaking of dollars, what does $3.25 million get you Continue reading
Tuesday, October 26 Oct. 26: MLO, AE jobs; sales, retention, processing, automation tools; tech spend study; Agency updates; disclosing ghosts?
Lenders and servicers don’t like weather extremes. Hurricane season is nearly over. While the East Coast is bracing for a storm, however, it’s feast or famine in the West, when, in the span of a few days, large swaths of land go from drought and fires to rain and flooding. And lenders and servicers are Continue reading
Monday, October 25 Oct. 25: MLO jobs; decisioning, retention, sales, processing tools; report on discrimination; perspective on Fed tapering
Given my emails and hallway chatter in San Diego last week, what’s on people’s minds? The state of the housing market is one, and Ivy Zelman, CEO of Zelman & Associates and author of “Gimme Shelter,” co-hosts The Mortgage Collaborative’s Rundown with Rich Swerbinsky, the COO of The Mortgage Collaborative, and me as we discuss current Continue reading
Saturday, October 23 Oct. 23: Residential third-party provider news runs the gamut; Saturday Spotlight: PacRes Mortgage; Halloween humor begins
Do you think putting together a loan is tough? How ‘bout a giant skeleton in your front yard? This dedicated individual has documented the process of his spooky creations on Instructables. This will be super helpful for when you create a giant skeleton of your own next year, or pass this along to a new home Continue reading
Friday, October 22 Oct. 22: MLO jobs; BI, HELOC, joint venture, sales tools; bank market share study; upcoming events; jumbo news
Semper Fi! Tomorrow marks the 38th anniversary of the 1983 bombing in Beirut of a U.S. Marine barracks in the largest conventional explosive blast in history killing 241 Americans. San Diego has a huge military presence, and while there I spent a few hours with the folks at PenFed discussing trends in jumbo lending and the Continue reading
Thursday, October 21 Oct. 21: Recruiting, MLO jobs; processing, automation, pricing, MSR sales, non-Agency products; vendors to watch; wholesaler shifts
Thousands of people in the residential lending biz headed to the San Diego aerodrome and flew home. Plenty were sore from wearing dress shoes everywhere, although I saw plenty of gals in flip flops while in transit. Guys are happy to stop wearing ties. Masks at the airport sure cuts down on recognizing someone you Continue reading
Wednesday, October 20 Oct. 20: MLO, AE jobs; cap. mkts role wanted; Sales, retention, recruiting tools; processing shifts; F&F in-person appraisal tweak
Someone here in San Diego asked an audience, “Who out there misses their Blackberry?” and many raised their hands. Technology… an interesting thing. How about the ability to look at this “Star Wars House” in Florida: $11.5 million, not even on the water, but page down a few times in the photos. Many of the Continue reading
Tuesday, October 19 Oct. 19: Call center, LO jobs; post-closing, broker CRM, correspondent products; conference snippets; weak housing numbers
The MBA’s conference, which began with a capacity crowd at mPower, is packed with meetings and sessions, and I am sure glad that I’m not going between them in heels! (To paraphrase a joke about how Fred Astaire was a great dancer, but Ginger did all those moves in heels and backwards.) Sure the Fed Continue reading
Monday, October 18 Oct. 18: LO jobs & transitions; broker, credit, debt recovery, reverse mortgage products; Redwood results; wholesaler M&A and news
One discussion topic here at the MBA’s annual conference, besides how rates are pressing higher, is how wonderful the San Diego weather is. But there are much better places to see autumn colors than coastal Southern California. (The 2021 Fall Foliage Map is a visual planning guide to the annual progressive changing of the leaves Continue reading
Saturday, October 16 Oct. 16: Lender LIBOR transition update; advice for those in our biz; vendor M&A and new products; Saturday Spotlight: BeSmartee
At the MBA’s annual conference some would say that a year like we had in 2020, and the first half of 2021, is surprising, but not as surprising as, say, Christopher Walken dancing. (Yes, he was a dancer early in his career.) Sure all the predictions from early in 2020 were dead wrong, and of Continue reading
Friday, October 15 Oct. 15: MLO jobs; cap. mkts., analytics, decisioning, fee collection tools; processing changes; primer on tapering numbers
Life is full of decisions. One space or two after a period in a sentence? Move to a state with no state income tax, or stay put? Wells Fargo is no longer the largest bank in the U.S. based on workforce, and I imagine trimming overhead was a conscious decision on Wells’ part. If you’re Continue reading
Thursday, October 14 Oct. 14: AE jobs; loan, U/W, compliance, business intelligence products; condo & co-op Agency news; good jobs data
Labor strikes are back in the news, but this time of year is breast cancer awareness month. Did you know that 1 in 8 women get breast cancer, and it can attack men as well? What could be more important than a life? They aren’t pleasant, but having mammography can save one. In a lighter Continue reading
Wednesday, October 13 Oct. 13: AE jobs; MBS quote, borrower, processing, TPO, eClose products; conforming conventional changes continue
Those heading to the conference in San Diego should pack stylish, yet sensible, shoes given the amount of walking. (Today’s audio version of the commentary is available here and includes an interview between Robbie and myself about the MBA Annual starting this weekend about navigating the conference and Pitbull. This week’s is sponsored Candor Technology, Continue reading
Tuesday, October 12 Oct. 12: LO, cap. mkts. jobs; automation, credit, processing products; conforming conventional news; new Redwood Trust deal
People ask me for advice all the time. For example, I tell guys, “Don’t ask your wife when dinner will be ready while she’s mowing the lawn.” With the move in rates, LOs are looking for advice, hoping for free extensions. Everyone knows that LOs are out there adding value and wealth to and for Continue reading
Monday, October 11 Oct. 11: MLO jobs; Events this week; U/W, sales, VA/FHA purchase, reverse products; primer on supply chain issues & rates
Ronald Reagan said, “Money can’t buy you happiness, but it will certainly get you a better class of memories.” Money can buy plenty of things… If those things are available. Were you on one of the 1,800 cancelled Southwest flights in recent days? Want to buy someone an actual book for Christmas this year? Unfortunately Continue reading
Saturday, October 9 Oct. 9: New employee industry advice; September lock stats; Agency deals; vendor news; Saturday Spotlight: LBA Ware
I received this note from Glenn Freezman: “Rob, I can’t believe it’s that time of year again when I have to rake all the leaves from my lawn to my neighbors side.” As we move into autumn, everyone, and their brother, knows that loan originators are out there adding value and creating wealth for clients. Continue reading
Friday, October 8 Oct. 8: Sales jobs; LO, customer, non-owner, CRM UW productivity products; conforming loan amount fun; spate of lawsuits
Monday is federal holiday, and banks and bond markets are closed so any hedging of locks from companies (that are open Monday) will happen today. The definition of the word “holiday” seems open to debate, as some states, and companies, working on holidays like Monday’s. Words are important. It’s mortgage principal, not principle. “Farther” mostly Continue reading
Thursday, October 7 Oct. 7: Title, AE, MLO, Ops jobs; MBS quote, trading, jumbo, warehouse products; conventional conforming changes continue
The human brain is an amazing thing. Some readers can instantaneously identify the song, and album, if I only said, “Play it pretty for Atlanta.” Others may enjoy the 20 most challenging Jeopardy questions, which aren’t as tricky as one might think. Others enjoy talking about residential lending trends, like the interview in today’s Commentary Continue reading
Wednesday, October 6 Oct. 6: MLO jobs; business opportunity; reno, pricing, sales, customer service, processing tools; primer on conforming loan amounts
This budget thing is out of control. In a blow to privacy, did you know that the proposal would require banks, credit unions, etc., to report to the IRS any account that has a minimum of, or transactions over, $600 or over the course of a year has a total of $600 in combined debits Continue reading
Tuesday, October 5 Oct. 5: MLO jobs; sales, processing, automation, MSR valuation tools; events & training: MBA Annual hits 3,000
Paul P., writes, “Hope is a good companion but a poor guide.” But the nation is hoping that the share of loans in forbearance continues to decline. And it is. The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 7 basis Continue reading
Monday, October 4 Oct. 4: MLO, FHA jobs; sec. mktg., DPA, sales, MSR products; disaster news; jumbo/non-QM snippets; Tech survey
Residential lending is filled with technology shifts. (STRATMOR is offering up technology survey results below.) I am a luddite when it comes to that stuff. Watching the Georgia game Saturday someone asked me, “What apps have y’all bought that are worth the money?” I replied, “Mozzarella sticks for sure, and the Costco spinach artichoke dip Continue reading
Saturday, October 2 Oct. 2: Supply & demand in real estate; advice for newbies in our biz; personnel moves; Saturday Spotlight: Spring EQ
Remember the foreclosure tidal wave that experts thought was going to devastate real estate around 2010-2012? It never happened. In a similar fashion, the forbearance policies and numbers don’t appear to have capsized real estate values either, and we’ll probably take 1.2 million houses coming out of forbearance in stride as tens of millions of Continue reading
Friday, October 1 Oct. 1: MLO jobs; loan products; purchase, CU, servicing, warehouse tools; FHA & USDA moves; rates treading water
Although most states don’t “fall back” and change the clocks until November 7th, losing 3-4 minutes of daylight a day is now readily apparent, and it’s that time of year again when “Thriller” starts appearing on radio playlists. Which reminds me, you know you’re old when you clean your house to the music you used Continue reading
Thursday, September 30 Sep. 30: Management, TPO, MLO jobs; non-QM, jumbo, rate sheet, pooling products; impending events & training
The end of the third quarter is here already. The fate of Fat Bear Week hangs in the balance given the possible government shutdown. (Although the odds of a shutdown are shifting, here is how it would impact lenders & borrowers.) The focus of financial markets has shifted from the pandemic to growth in economies, Continue reading
Wednesday, September 29 Sep. 29: Ops, MLO jobs; direct marketing, non-QM, TPO, servicing products; CECL primer for lenders: don’t ignore it
Why is breakfast in bed “luxurious” but breakfast, lunch, and dinner in bed is labeled “depression?” That’s something to consider. Today there’s so much to consider, I don’t know where to start! It’s a real mix of good news and bad news. First, for anyone estimating where 2022 conforming loan limits will be, yesterday the Continue reading
Tuesday, September 28 Sep. 28: AE, MLO jobs; automation, sec. marketing, sales, non-QM products; USDA & FHA news; rates grind higher
Seen on a chalkboard outside a bar: “Beer shortage coming soon. Panic buy here!” Moving from booze to bonds, thinking that the Fed would buy $5 billion a day of MBS is wishful drinking. Uh, sorry, I meant wishful thinking. The Fed’s role is to help the stability of our financial markets, and it did Continue reading
Monday, September 27 Sep. 27: MLO jobs; Capital markets, sales, tech, jumbo, debt recovery tools; disaster news; 10-year hits 1.50
I could tell that my cat Myrtle was miffed Sunday. I’m sure that she, given her position at the top of the food chain, believes that I shouldn’t be watching her surf the web for aquariums or frozen line-caught salmon steaks. But I have my ways, as monitoring one’s every move isn’t strictly the ability Continue reading
Saturday, September 25 Sep. 25: A bitcoin primer for dummies like me; Afghan football humor; Saturday Spotlight: Shamrock Home Loans
A Rhode Island home, whose purported history of paranormal infestation made it the inspiration for the film The Conjuring, has hit the market for $1.2 million. Close by Halloween! The three-bedroom, 3,100 square foot, multiple ghost home is currently a rental property with bookings through 2022. The home first became notorious in the 1970s Continue reading
Friday, September 24 Sep. 24: MLO jobs; whole loan trading, servicing, digital, jumbo, automation products; conforming conventional updates; a clever “joke”
First off, my apologies to Ernest Hemingway whose name I mistakenly wrote as “Earnest.” Thank you to those who pointed that out. Second… Okay… I see my share of clever and funny videos. But this one is a “must watch,” superb and short, about adults returning to the office. Know any truck drivers? Do they Continue reading
Thursday, September 23 Sep. 23: MLO, Ops jobs; blockchain, compliance training, consumer complaint products; mortgage M&A; Fed weighs in
This morning the Mortgage Bankers Association’s Research Institute for Housing America (RIHA) released, “The Impact of Climate Change on Housing and Housing Finance.” Whether or not you believe in it, if it impacts MBS pricing, it impacts your borrowers, and what are you going to do about it? Strategy is for amateurs; execution is for Continue reading
Wednesday, September 22 Sep. 22: MBA, LO, AE jobs; non-QM, jumbo, BPO, BE/mand, sales products; whole loan/PSPA execution change
Once a week it is Wednesday… but this one is noteworthy. An equinox is the instant of time when the plane of Earth’s equator passes through the geometric center of the Sun’s disk. That’s today, and is the official move from summer into autumn in the northern hemisphere. Moving from astronomy to law, lawyers for Continue reading
Tuesday, September 21 Sep. 21: Sales, MLO jobs; education, tax, sales, pre-qual, licensing products; lender stock prices; events; forbearance improvement
A sign in the window reads CURED MEATS. Inside, a salami takes his first steps since the accident. A prosciutto learns to forgive. There are all kind of things going on! First, a healthy, active secondary market helps rates in the primary markets. Fannie Mae announced its intention to enter into new credit risk transfer Continue reading
Monday, September 20 Sep. 20: MLO, Controller jobs; Servicing for sale; subservicing, sales, reverse products; events & training; California’s zoning change
Someone asked me if I had plans for the fall. It took me a moment to realize they meant “autumn,” not the collapse of civilization. Lots of folks are keeping an eye on the collapse, or at least the decline in market value, of publicly held lenders. How much would you pay for a company, Continue reading
Saturday, September 18 Sep. 18: Thoughts on equity & default, advice for minorities; vendor updates: Saturday Spotlight: Service 1st
Arrgh…. Everyone knows that Talk Like a Pirate Day is tomorrow. Why couldn’t the pirates play cards? Because the captain was standing on the deck! Here in Los Angeles at TMC’s Reunited 2021 event near Los Angeles, there aren’t many playing cards, and the general consensus is that lender staffing levels are generally okay (an Continue reading
Friday, September 17 Sep. 17: MLO, Dir. of Sales, Controller jobs; HELOC, DPA, blockchain, CRM, sales tools; FHA & VA news; PSPA thoughts
Some things stick with you, some don’t. Many of the topics covered here in Atlanta’s NAMMBA Connect 2021 will stick with folks since they mirror what various companies have their eye on. Social media best practices, modern appraisal technology and new valuation models, leveraging technology, data intelligence, and other tools to change lending in support Continue reading
Thursday, September 16 Sep. 16: AE jobs; cap. mkts exec available; lock desk, VOE, sales, reporting tools; more conf. conv. changes; remote events today
I’m getting old. I can remember the lyrics from a Steppenwolf song that I haven’t heard in 20 years but I don’t remember what I had for lunch yesterday. I do know, however, that today is a trip to Atlanta for a presentation with attorney Mitch Kider, and I glanced at the topics at NAMMBA Continue reading
Wednesday, September 15 Sep. 15: AE, MLO jobs; jumbo, non-QM, retention, LOS products; FHFA’s welcomed policy pause on restrictions
How ‘bout some random Q&A for Hump Day? Did you know that almost 2,400 of your co-workers are already registered for the National MBA conference next month in San Diego? A company is working to bring back the wooly mammoth? (What could possibly go wrong with messing with Mother Nature?) Do you have a cloffice? Continue reading
Tuesday, September 14 Sep. 14: AE, MLO, client service jobs; MSR, automation, app integration, warehouse, TPO products; forbearance numbers drop again
When Miley Cyrus licks a hammer and dances around naked, it’s considered “art.” When I tried it, I got kicked out of Home Depot. Go figure. How is your company figuring it will react to the rumblings that mortgage lenders meet the definition of “federal contractors” as it relates to the Biden Administration’s executive order Continue reading
Monday, September 13 Sep. 13: Regional, MLO jobs; processing, blockchain, O&E, fix & flip, reverse mortgage products; wholesalers & appraisals
On HGTV, people can flip a whole house in a month. Meanwhile, I’ve been “getting ready to vacuum” for a week now. There isn’t a lot of mirth in residential lending, especially when it comes to discussing wealth trends. Don’t think that the housing market is helping to widen the gap between the haves and Continue reading
Saturday, September 11 Sep. 11: Must read “joke”; Vendor news snippets; Women provide career advice; Saturday Spotlight: Supreme Lending
What happens when you mix religion, politics, and health? Lenders and vendors may want to skim through United Airlines’ new policy. And here’s a tip for anyone who enjoys the autumn: The 2021 Fall Foliage Map is a visual planning guide to the annual progressive changing of the leaves in the United States. This tool Continue reading
Friday, September 10 Sep. 10: AE, MLO jobs; exec looking for role; POS/LOS, automation, fulfillment, non-QM products; Wells Fargo’s C&D order
Thank you to Virginia’s Marc A. who, after reading my comment about companies keeping customers on hold due to “higher-than-normal call volume,” sent a note suggesting, “How great would it be if you called and they said, “Due to high call volume, we’ve staffed up our team to reduce your wait because your time is Continue reading
Thursday, September 9 Sep. 9: Ops, MLO jobs; lender wanted; MBS trading, CRM, non-QM, processing products; lots & lots of upcoming events!
I don’t think I’ve ever made a call, in recent years, to any number that wasn’t “experiencing high call volumes…” Owners of lenders are certainly fielding plenty of incoming calls. Mergers and acquisitions, buyouts, and activity by special-purpose acquisition companies are driving a frenzy of bank deal-making this year, with activity worldwide on track to Continue reading
Wednesday, September 8 Sep. 8: AE jobs; eClose, subservicing, processing, workflow, retention tools; TPO loan products
If you wait long enough to cook dinner, everyone will eat cereal. Follow me for more recipes! It’s a good time to be long real estate, and one recipe that is tried and true is the link between housing prices and rents. Home Price appreciation is driving up asking rents for single family homes. They Continue reading
Tuesday, September 7 Sep. 7: Non-QM, AE, MLO, FHA jobs; eVault, portfolio products, automation, closing cost products; training & events this week
Yes, it’s Tuesday already. Good morning to everyone except my wife who, at 2AM, mid-dream, sat bolt upright in bed and terrifyingly shouted into the dark, “Will there be a buffet?” There are plenty of things going on in the real world. Out in San Francisco, the government is considering paying people not to commit Continue reading
Saturday, September 4 Sep. 4: Note on compliance, affordable housing, demographics & housing; Saturday Spotlight: Thrive Mortgage
A government’s interest in housing isn’t confined to the United States. For example, there’s this story about Ireland’s plan which, “…includes a guarantee of 20 billion euros ($24 billion) of state funding over the first five years, is aimed at increasing homebuilding to an average of 33,000 units per year by 2030 from around 20,000 Continue reading
Friday, September 3 Sep. 3: Bus. Dev., DTC, AE, corresp. jobs; marketing, processing tools; Conforming conventional program changes; jobs data & rates
“It was the third of September, that day I’ll always remember… Papa was a rolling stone… Wherever he laid his hat was his home. And when he died, all he left us was a loan…” Or may it is “alone.” Regardless, the talk here in Orlando at the well-attended FAMP Annual Convention is about appraiser, Continue reading
Thursday, September 2 Sep. 2: Corresp. mgt., AE, MLO jobs; pricing, cap. mkts., sales tools; appraisal M&A; disaster updates; comp survey
“Yeah, I think I’ll put up some plywood and buy some water and just wait out this supposed hurricane. Those scientist/weather people are just exaggerating things.” Forgetting parallel comments about viruses, here is a quick snippet of video this week sent to me by a few folks of why that’s not smart. But let’s start Continue reading
Wednesday, September 1 Sep. 1: MI, MLO, multi-family jobs; HELOC, non-QM, sales, compliance products; bank-mortgage M&A; Agency news
Overheard recently: “I just want a man who will make me laugh as we count his family’s money on his rock-hard abs.” Lenders are doing okay, money-wise, as we put another month under our belt. It wasn’t a particularly good month from the perspective of COVID, Afghanistan, hurricanes, or wildfires (here’s a driver’s view). But Continue reading
Tuesday, August 31 Aug. 31: MI, MLO jobs; fee collection, MLO CE, marketing, sales, UW tools ; FHA, USDA, Ginnie, VA changes
I received some exciting news that I wanted to share with my readers. I received an invitation from a mortgage periodical to receive an award, if I paid $500, as one of the Top 10 lenders in Natrona County, Wyoming, which includes Casper. My guess is that it was a mistake, since I am not Continue reading
Monday, August 30 Aug. 30: Ops, MLO jobs; wholesale products; sales, CRM products; disaster updates; upcoming training & events
The Texas Mortgage Bankers Association conference is in full swing. Folks tell me that servicing is a big topic in informal hallway discussions. MCT data indicates that lenders are selling 65 percent servicing retained, primarily to the Agencies, 35 percent released. Compare that to last summer’s 95 percent retained, 5 percent released. Yes, MSRs have Continue reading
Saturday, August 28 Aug. 28: Tech & vendor news; Letters on MLO compliance, appraiser comp, advice for newbies; Saturday Spotlight: Symmetry Lending
“I woke up this morning determined to drink less, eat right, and exercise. But that was two hours ago, when I was younger and full of hope.” There are some clever people out there. Perhaps Kmart has some of them disposing of its assets. In 2005, retailer Kmart had 2,085 locations. Today, it’s got 17. Continue reading
Friday, August 27 Aug. 27: Legal, private MI, MLO, Management jobs; renovation, blockchain products; MLO education trouble, RESPA settlement
Last night, my wife asked me if I’d seen the dog bowl. I replied, “I didn’t know he could.” Words are important, and the press is spending plenty of them on conjecturing about the Federal Reserve Open Market Committee’s continued nearly daily asset purchases. Those purchases include both Treasury securities and securities backed by mortgages, Continue reading
Thursday, August 26 Aug. 26: MLO, AE jobs; cap. mkts., advertising regulation, PPE, marketing, broker tools; tech funding; purchase biz study for MLOs
What parent hasn’t heard, “Are we there yet?” from the back seat during a road trip? The same could be said about Fannie Mae and Freddie Mac, the Government Sponsored Enterprises, regarding “GSE reform.” First off, no one in Washington DC is talking about an exit from conservatorship. Second, GSE (Government Sponsored Enterprises, namely Freddie Continue reading
Wednesday, August 25 Aug. 25: MLO jobs; eClose, AI underwriting, broker, warehouse products; investors react to Agency changes
In the various originator-centric conferences I’ve attended, I’ve never seen a session on, “How to beat up your capital markets group on pricing & extensions.” Here at the California MBA’s Western Secondary, the other end of the loan life, besides talk of obtaining real time information from borrowers, margin fluctuations, and waiting for Agency moves, Continue reading
Tuesday, August 24 Aug. 24: MLO, AE jobs; Chatbot, processing, automation, trailing doc tools; non-Agency securitization numbers
Worried about your privacy? You should be. Illinois’ Lemonade, an AI-enabled provider of homeowners and renters insurance, was hit with a privacy class action Friday over its alleged collection and use of biometric data: allegedly biometric data, including retina scans, voiceprints and face scans from customers who are required to upload videos during the claim Continue reading
Monday, August 23 Aug. 23: Ops, MLO jobs; whole loan sales, jumbo, QC, home buying education products; Freddie & Fannie changes don’t stop
Fires in California, floods in Tennessee, hurricanes in New York, COVID hospitalizations seemingly everywhere written up by the press. The “fun” never ends. Here in Orange County, at the California MBA’s Western Secondary, the talk in the hallways is focused not so much on huge shifts, because it looks like Freddie, Fannie, FHA, and other Continue reading
Saturday, August 21 Aug. 21: Vendors raising money; Letters on MLO comp & small loans, recruiting 101, and career advice from women & people of color
Under the banner of “notes from brokers that they wish reached the eyes of decision makers,” I received this one yesterday. “I saw your note of FHFA’s affordable housing goals moving forward. Personally I think it’s great. Homeownership is, in my opinion, an excellent manner for the general public to grow wealth while having a Continue reading
Friday, August 20 Aug. 20: Sales mgt., MLO jobs; HELOC, warehouse, blockchain, licensing tools; news on jumbo & non-QM products
Who wants to work on a Friday in summer? Not me! I was pleased to find the Type The Alphabet Game, which times you on how fast you type the alphabet. Fun, and doesn’t take much time. For something different, and some of you may need a tissue when reading it, here’s a great story Continue reading
Thursday, August 19 Aug. 19: CU, MLO, U/W jobs; margin tracking, pooling, digital, title products; Fed’s asset purchase shift? Saudi MBS market kicks in
So you say that you never learn anything by reading this Commentary? How about Wile E. Coyote’s middle name? His first name is an obvious pun on the word “wily.” His middle initial, “E”, is said to stand for “Ethelbert” in one issue of Looney Tunes & Merrie. And say what you want about California’s Continue reading
Wednesday, August 18 Aug. 18: Corresp., MLO jobs; flood, warehouse, jumbo, non-QM, VOE products; FEMA news; leisure & the economy
Technology is nice (the latest bit being UWM’s goal of accepting bitcoin by year end; magnetic strips on credit cards are going away), but our industry continues to seem to struggle to have much-needed diverse speakers at conferences and Zoom calls, and on a bigger scale, disasters are in the news: people of all walks Continue reading
Tuesday, August 17 Aug. 17: Brokers wanted, MLO jobs; webinars of note; warehouse mgt., automation, reverse products; comp survey; rates slide
The 10-year yield back down to 1.24 percent!? Watch those early pay off penalties. Along those lines, are you servicing loans? Mind your p’s and q’s, and then some. The report from the CFPB shows the agency is making it clear that it intends to prioritize monitoring mortgage servicers and how they are dealing with Continue reading
Monday, August 16 Aug. 16: MLO, AE jobs; Events & training this week; AMC, CRM, jumbo, pre-qual products; UWM 2nd quarter earnings
People ask me what I do when I finish the commentary and send it out. This will give you an inkling. I don’t know if folks at United Wholesale do the same after a decent quarter, but UWM announced its earnings this morning. “2Q21 net income of $138.7 million on $59.2 billion in total originations. Continue reading
Saturday, August 14 Aug. 14: New companies raising $ and turning heads; letter on rate lock accounting; compliance joke; Saturday Spotlight: Monster Lead Group
Despite universal complaints about the appraisal process, in my travels it seems that most lenders and vendors are doing well, believe that a very good first half of the year will help see them through 2021. Changes in credit are a conversation topic, as is the transition, or not, from “Work from home” to “Work Continue reading
Friday, August 13 Aug. 13: Customer service, AE, MLO, sales mgt. jobs; LOS, sales, workflow tools; lender earnings dissected: what is an IRLC?
As potential buyers of odd properties cogitate on Boston’s Skinny House (reportedly built to spite the owner’s neighbor & brother), and our industry mulls over Fannie’s decision to include rent payments in its credit decision, stock analysts are mulling over lender earnings. Earlier in the year this Commentary discussed IRLCs in the opening paragraph. (“Income Continue reading
Thursday, August 12 Aug. 12: MLO jobs; securitization, social media monitoring, CFPB servicing analysis, retention tools; MLO/customer service tips
“I hope that I never go to jail because I haven’t memorized a phone number since 2001.” (Speaking of numbers, investors are mulling over Guild’s 2nd quarter earnings and it’s special $1 per share dividend. Rocket’s are announced later today, UWM’s Monday.) I thought I had memorized all of the digits until “Juneteenth” came along, Continue reading
Wednesday, August 11 Aug. 11: Business wanted, MLO jobs; U/W, appraisal, non-QM, jumbo products; tech survey; investor’s GSE changes
For me, today is a travel day from Florida to Montana. But lenders always have a lot going on. Like “significant competitive pressure and volatility in the capital markets,” as evidenced by Home Point’s $73 million loss for 2Q 2021, announced yesterday. Remaining compliant can be a chore as well. The current STRATMOR blog is, Continue reading
Tuesday, August 10 Aug. 10: DTC opportunity; Cap. Mkts., AE, MLO jobs; efficiency, automation, docs products; upcoming training & events
It was one week ago that the “benchmark” 10-year yield hit 1.17 percent. Now we’re back up to 1.32, the same yield that we saw for much of early and mid-July. End of the world? Of course not. Something to be aware of? Yes. Something else to be aware of is the latest report on Continue reading
Monday, August 9 Aug. 9: Corresp., AE, MLO jobs; diversity, VA, pricing, servicing products; Freddie’s renovation product & Fannie updates
Last week I was in Orange County, CA at the Insellerate Experience Summit 21, and this week I am 2,500 miles away in Orlando, FL at the Lenders One Summit. Unfortunately Florida metro areas are seeing increased mortgage fraud (the headline speaker today is Frank Abagnale) and several years ago a business associate recommended that Continue reading
Saturday, August 7 Aug. 7: Letter on MLO customer service; Freddie, Fannie, Rocket, Zillow capital markets deals; Hooters’ refi
Rates are great, lender’s volumes are still solid, but how many of you out there are hearing this from veteran originators? “Mortgage life is busy, but it is ‘getting ready to get hard.’ There’s a lot of competition right now. What I love about that is a lot of new people to our industry are Continue reading
Friday, August 6 Aug. 6: Business wanted; AE, MLO jobs; warehouse, broker products; FHA & loan mods; strong jobs data moving rates
We live in world of numbers. It has been 76 years since an atom bomb was dropped on Hiroshima. Let’s hope nothing close, with its 140,000 instantaneous deaths, ever happens again. United Airlines will require 100 percent of its employees to be vaccinated. Did you know that male houseflies live for 28 days, females for Continue reading
Thursday, August 5 Aug. 5: Corresp., Ops, AE, Sales Mgt. jobs; pricing, trading, non-QM, processing, QC, sales tools; August events & training
“Why was the mortgage so depressed? Because it was a loan.” Yes, cutting-edge humor like that is why you read this commentary. No MLO should be depressed, especially when it comes to this rate environment. The yield on the 10-year is very low (1.17 percent this morning). “Real” yields, adjusted for inflation, have been negative Continue reading
Wednesday, August 4 Aug. 4: MLO, Ops, AE jobs; processing, analytics, jumbo, underwriting tools; M&A and news from the wholesale channel
WalletHub released its 2021 Home Overleverage Report after determining where homeowners have the most unsustainable mortgage debts. WalletHub compared the median mortgage debt to the median income and median home value in more than 2,500 U.S. cities. Chester, PA, has the lowest median mortgage debt, $41,859, which is 18.6 times lower than in Beverly Hills, Continue reading
Tuesday, August 3 Aug. 3: A key hire, MLO jobs; hedging, sales, education, automation, processing tools; FHA & VA news
As the industry digests Fannie Mae’s earnings announcement this morning with its $7.2 billion of net earnings in the second quarter of 2021, did you know that 79 percent of residential mortgage loans closed with the company that first took the application? As a lender, how are you capitalizing on that? Or, as the CFPB Continue reading
Monday, August 2 Aug. 2: QM & non-QM AE, MLO jobs; verification, non-QM, HELOC products; events & learnin’; how ’bout these rates!?
Who predicted that we’d be at 1.22 percent on the 10-year yield to start August? And 30-year fixed-rate mortgages still chopping around in the high 2 percent area? Or that the FHA would announce another extension of its moratorium on evictions for foreclosed borrowers and their occupants? Predictions are rough, and often forgotten, but numbers are Continue reading
Saturday, July 31 July 31: Changing thoughts on analyzing credit; vendor updates run the gamut; Saturday Spotlight: Bonzo
Why focus on mortgage banking when there is a lot of exciting news coming out of the Olympics? For example, the reporter asking the swimmer about his phenomenal third leg? But there is a lot going on with lenders, as we deal with the real estate markets around the nation, changing guidelines, shifts in borrower Continue reading
Friday, July 30 July 30: AE, Sales, MLO, Ops jobs; whole loan trading, CRM, renovation products; Freddie & Fannie changes never stop
Yesterday I received this note from Tennessee. “Rob, thank you for the commentary, as always. Among several noteworthy items in yesterday’s, one thing stood out. ‘NAR has 1.5 million members but only 1.2 million active listings.’ That sure sums things up in my area.” (And most of those listings, when actually purchased, will have average Continue reading
Thursday, July 29 July 29: AE, MLO jobs; MBS delivery, processing, data breach tools; Redwood Trust earnings; ugh: weak GDP number
Mission Statements are so passe. We now have “long term vision statements.” For some, great literature consists of the Bible, or Moby Dick. For others of limited intelligence, like me, the pinnacle is National Lampoon’s 1964 Yearbook. (The Freshman section is classic.) For others it is the FHA Handbook or the charters of Freddie Mac Continue reading
Wednesday, July 28 July 28: AE jobs; processing, pricing, retention, sales tools; Ginnie, FHA, VA changes; why mortgages paying off early matters
I didn’t sign up for a 401k. I can’t run that far. Understanding numbers is important, as is accurately reporting them. For example, yesterday I mistakenly noted that the TMBA’s Annual Convention was August 29-30 when it’s actually the August 29-31. Borrowers aren’t the only ones refinancing. Are you going to take a cruise soon? Me Continue reading
Tuesday, July 27 July 27: Nat’l sales, MLO jobs; sec. mktg., retention, workflow, doctor, automation programs; upcoming events & conferences
With Simone Biles’ injury at the Olympics, let’s shift our attention to lending & housing. Have you ever asked someone, especially a politician, for the definition of “affordable housing”? Maybe the better riddle is, “How is affordable housing like pornography? You’ll know it when you see it.” (See Supreme Court Justice Potter Stewart’s quote from Continue reading
Monday, July 26 July 26: MLO, corresp. & wholesale AE jobs; subservicing, tech, jumbo, retention tools; disaster news coast to coast
The headline this morning is seven people dying in a car crash caused by a Utah sandstorm. The damage caused by storms, including hurricanes in the East and fires in the West, often makes FEMA’s disaster list. The 2021 hurricane season began on June 1 and the National Oceanic and Atmospheric Administration is predicting a Continue reading
Saturday, July 24 July 24: Readers weigh in on handling of adverse market fee change; vendor bits; Saturday Spotlight: Interfirst Mortgage
As mortgage rates currently continue to “behave themselves,” lenders continue to focus on helping customers, improving efficiency, and monitoring the technology offerings by vendors with an eye on price. Meanwhile they keep an eye on demographics: what difference do great service and products make if there are no houses to lend on? But at some Continue reading
Friday, July 23 July 23: HR, post-closing, controller, MLO jobs; NOO, HELOC, processing tools; Florida fraud case; LendingClub fee settlement
How do you know when someone has too much money? How about when they pony up $16k for Tarzan’s 1932 loin cloth? (“Gosh, if that loin cloth could talk…”) LendingClub is going to have less money to the tune of $18 million due to charging customers hidden fees despite its marketing material saying, “No Hidden Continue reading
Thursday, July 22 July 22: MLO, Ops jobs; tech, hedging, advertising compliance products; STRATMOR on customer experience; non-Agency updates
How would you like to compete against a company whose tagline is, “We Do It All, Guaranteed!”? The program is part of an existing Weichert Realtors’ offering called “All Under One Roof” that gives consumers brokerage, mortgage, insurance, and other services. Reducing the friction between taking an application and servicing the loan is the name Continue reading
Wednesday, July 21 July 21: MLO jobs, lenders wanted; U/W training, best ex optimization, jumbo products; STRATMOR & customer service; upcoming virtual events
Experienced mortgage loan originators (MLOs) know that a rate lock is a rate lock. The removal of the adverse market fee of .5 for conventional conforming refis above $125,000 has caused conversations about pricing, borrower, and profit strategy. One veteran MLO wrote to me and stated, “If the price had worsened, we wouldn’t be going Continue reading
Tuesday, July 20 July 20: Corresp., MLO, AE jobs; marketing, sales, broker, originator, social media tools; STRATMOR tech survey
It was bound to happen: My cat Myrtle and I came to blows. She wanted to spend her trust fund money, earned on the catwalk in her prime, to pay various periodicals and ranking services around the nation to say that she won the “2020 Cat of the Year Mentioned in a Daily Commentary.” Apparently, Continue reading
Monday, July 19 July 19: AE, MLO, Ops jobs; tech training, MSR, text marketing, anti-fraud tools; goodbye Adverse Market Fee; rates continue down
“My password is weak? Well, so is my memory, so cut me some slack and let me keep it!” What isn’t weak is the bond market, and rates continue down. Lenders, weak or strong, have a lot on their plates. Mortgage rates continue to drop, and lenders are grappling with renegotiations, improving efficiency, and nationwide Continue reading
Saturday, July 17 July 17: Letters about lenders & AMCs, workplace equality, and cybsersecurity for small businesses & individuals; Saturday Spotlight: Usherpa
With the FHFA .5 refi news yesterday, if you’re a broker who has locked a refinance with Wholesaler A, and been charged a .5 refi hit, and Wholesaler A won’t change your lock but you can move your lock to Wholesaler B and not have the .5 hit, what will you do? It appears that Continue reading
Friday, July 16 July 16: Controller, AE, MLO jobs; ECOA, referral, broker, warehouse products; correspondent & wholesale news around the biz
I am sure that there are people who read this commentary who firmly believe that the earth’s climate is not changing, and believe that historical graphs of temperatures in places like Minneapolis are falsified. And there are those that believe that any change is purely natural and has nothing to do with humans. Others believe Continue reading
Thursday, July 15 July 15: MLO jobs; pricing, execution, retention, trailing doc, referral products; HUD, Ginnie, FHA/VA news
Ask any manager. It was much more fun to announce, “We’re hiring!” than it is to mutter, “We’re laying off.” Currently there are plenty of rumors about lenders, both publicly and privately held, down-sizing. (I guess the PC term is “right-sizing” but I’ve never heard an expanding company use that term.) Here is a quick Continue reading
Wednesday, July 14 July 14: Corresp., MLO jobs; jumbo, non-QM, VOE, warehouse products; Freddie & Fannie changes; more inflation numbers
Technology and digitalization move forward. I read somewhere that soon they’ll have digital numbers. Amazing! Who can keep up? (On a side note, did you know that no number from 1 to 999 contains the letter “a” in its word form?) Don’t think technology controls you? How about this news that Apple’s weather app will Continue reading
Tuesday, July 13 July 13: Ops director job; capital markets, underwriting, processing, non-QM, mobile products; Better’s overseas acquisition
When one thinks of a Constitutional Amendment, many think of the 2nd amendment (right to bear arms, 1789), 13th (end of slavery, 1865), or the 16th (creation nationwide income taxes, 1913). Remember the process from junior high? “…two-thirds majority vote in both the House of Representatives and the Senate or by a constitutional convention, ratified Continue reading
Monday, July 12 July 12: AE, MLO, Ops jobs; retention, credit, underwriting, subservicing products; training & events in the next few weeks
I head to San Diego today for the CAMP event as the industry continues to change back to in-person events. There is always change. (How’s that for an understatement to begin your workweek?) We have new Wimbledon champions, a new European soccer champion. Some are effectively changing to YouTube to get their message across, like Continue reading
Saturday, July 10 July 10: Notes from readers on how hacking works, credit scores & default risk, LOs & social media, AMCs; Saturday Spotlight: Sourcepoint
Renegotiations, watching LOs’ social media profiles, cost cutting & efficiency, appraisal delays, hacking and ransomware (with U.S./Russian headlines this morning)… lenders have a lot on their plates. But overall business volume is decent, especially in light of some of the dire predictions from earlier this year. According to FBX, June 2021 mortgage rate-lock volume was Continue reading
Friday, July 9 July 9: Call center, CD, AE jobs; referral, non-Agency, warehouse products; Agency changes continue; rates take a breath
Someone once said, “A loss is not a failure until you make an excuse.” You can apply that to politics or to sports. Or to business. No company wants to lose a lock, and locks desks are beginning to see some attempts at renegotiations. Whether they are prompted by borrowers or brokers is of little Continue reading
Thursday, July 8 July 8: MLO, broker, RE Agent opportunities; wholesale & broker, lock desk products; layman’s look at downward move in rates
I head to Salt Lake City today, and on the way to the airport thought to myself, with all the technological and scientific advances being made, the folks at Wrigley should add be able to extend the flavor life of their Juicy Fruit gum, right? Not Willie Wonka everlasting gobstopper life, mind you, but something Continue reading
Wednesday, July 7 7/7: MLO jobs; UW, fee reduction, jumbo, dashboard, processing tools; state regulatory shifts; rates waiting for economic rebound
Sorry the commentary was a little late today. I was on the phone dealing with my car’s extended warranty. Per the personalized recording, they’ve been trying to reach me for quite some time! Returning to reality, but speaking of cars, has anyone noticed the number of oddly-colored cars on the roads increasing? Seems like Subaru Continue reading
Tuesday, July 6 July 6: MLO jobs; pre-qual, warehouse, CE, marketing, sales tools; CFPB: worth keeping an eye on
Dang it is becoming more and more expensive to follow all the rules and regulations to originate residential loans. These costs, of course, are borne by the consumer. (See some of the CFPB’s news below.) And it costs a lot to retire. You don’t have to specialize in reverse mortgage lending to be curious if Continue reading
Monday, July 5 July 5: AE jobs; reverse, good-bye letter, VOE products; online webinars remain but in-person events come roaring back
Some people are working today, some not, some may read this today, others Tuesday, but have you ever wondered, “Why’d the Western World pass over ‘B’ batteries?” Most battery designations have been around since +/- 1900, before anyone reading this commentary was alive. It is important to keep historical things in perspective, especially when it Continue reading
Saturday, July 3 July 3: Notes and news about housing numbers, owning Agency stock, Agency deals, and vendor deals & products
Mortgage Loan Originators (MLOs) are always interested in housing news and thoughts about the direction of the market. Let’s start this holiday weekend commentary with a note from Sherri Calcut, President of Mortgage, BOK Financial. “In the current housing market environment, it is important to work with a mortgage consultant that understands supply and demand. Continue reading
Friday, July 2 July 2: AE, MLO, underwriter jobs; ECOA, productivity, QC tools; Agency updates; jobs report & mortgage rates
I realize that this is a commentary about lending, but it is good for MLOs to be cognizant of what their real estate agent client’s clients want… In a kitchen. And here’s a handy dandy chart from builders showing popular kitchen features. My grandmother had one, and I want one: a walk-in pantry! Lots of Continue reading
Thursday, July 1 July 1: Cap. mkts., MLO jobs; broker wanted; trading execution, cost cutting, non-QM, AMC products; Investor processing tweaks
Halfway done with 2021?! Yes, time is flying, and summer is here. The weather service just published instructions on how to bake a lasagna in your mailbox. Speaking of time passing, here’s an attention grabber: “Over a Quarter of Seniors Say Retirement Is Worse Than They Expected.” The body of the article, which I found Continue reading
Wednesday, June 30 June 30: Non-QM Mgt., CD, AE, MLO jobs; jumbo, verification, subservicer products; Non-Agency news around the biz
“Adam and Eve were the first people not to read the Apple terms and conditions.” Who has actually read their phone’s manual? Technology marches on, with or without us. Two major public home builders, Taylor Morrison and PulteGroup, recently piloted programs where buyers can choose, design, and finance a new home virtually and add it Continue reading
Tuesday, June 29 June 29: Community lending, 1099, compensation, NOO, non-QM products; Government loan program changes ’round the biz
Say what you will about huge companies not having an impact on housing, MLOs can’t ignore the fact that they’re here. The latest example is global real estate investment and land asset management company Walton Global Holdings launching a build-to-rent (BTR) line that will leverage its more than 81,000 acres of U.S. land assets to Continue reading
Monday, June 28 June 28: AE, MLO, Ops jobs; credit, warehouse, tax & flood, MI tools; summary of FHA changes; upcoming events & training
Seattle will hit 110 degrees F today. Change is afoot. Last week changes of personnel within the CFPB and the FHFA (hence Fannie & Freddie) captured our industry’s attention since they may lead to eventual changes in their footprint or policies. (But the FHA’s program changes, spelled out below, are worth noting.) For decades stability, Continue reading
Saturday, June 26 June 26: AE jobs; Is title insurance a scam? Reader’s notes on AMCs, compliance, Agency changes; Saturday Spotlight: PHH Mortgage
In the last fifteen months we’ve learned that work is a thing you do, not a place you go. (Feel free to use that one!) The Mortgage Bankers Association returns to “work from the office” on July 12. Lenders and vendors around the nation are gradually heading back into the office, often with staggered schedules Continue reading
Friday, June 25 June 25: Senior management, AE, MLO, Ops jobs; Corresp., sales, warehouse products; Agency changes continue
As lenders are working on adjusting margins, best-ex, and staffing, while at the same time relieved that rates haven’t gone up and pipelines are motoring along, the industry continues to consider the ripple effects of Director Mark Calabria’s departure from running the FHFA, ergo Freddie and Fannie, and the news of the nominee Sandra Thompson Continue reading
Thursday, June 24 June 24: MLO, Ops jobs; loan sales, presentation, social media compliance, workflow tools; FHFA leadership change: Now what?
In case you haven’t heard, the Supreme Court ruled that a U.S. president can remove the head of Federal Housing Finance Agency, in this case, Mark Calabria (who has his thoughts on the decision). Plenty of lenders ask, “What now? Who will replace him, perhaps an economist who knows our business? And when will some Continue reading
Wednesday, June 23 June 23: MLO jobs; lock, fee collection, marketing, jumbo, Encompass products ; Wall Street’s interest in our biz
Folks are talking about how in-person mortgage conferences are coming back strong. For example, here in Florida that MBAF conference is approaching 300 registrants, and the California MBA’s Western Secondary (still two months away) has well over 200 participants, and registration has only been open a week. Folks are also talking about the mergers and Continue reading
Tuesday, June 22 June 22: Reverse, non-QM, pricing, work flow, products; STRATMOR & customer service; con’t reaction to NOO & 2nd home Agency changes
Is office work returning? Some watch traffic patterns, and, sure ‘nuff, cars on the freeways of Los Angeles are traveling slower indicating that the city is returning to a sense of “normalcy.” On the northbound I-5 freeway in June 2019 at 10 a.m., the average travel speed was 43 miles per hour. During the pandemic Continue reading
Monday, June 21 June 21: MLO jobs; subservicer, warehouse, VA, non-QM products; PHH/Reverse Mortgage deal; economic trends; upcoming events
Today I head to Orlando for the Mortgage Bankers Association of Florida 2021 Secondary and Convention (approaching 250 registrants!) The live and in-person events are definitely increasing as we move through 2021. The focus on the first portions of the conference will be on recent FHFA/FNMA/FHLMC moves, risk management, private label securitization, the economy, and Continue reading
Saturday, June 19 Juneteenth: CFPB issues its Juneteenth statement; vendor M&A continues; Industry video wins awards
I rarely send the Commentary out on a Federal Holiday, but given the tumult surrounding today in the compliance world, thought it would be a good thing. (Couldn’t they have waited until June 19th of 2022?) Things are always changing. Will the 5-day workweek change? I’ve worked places that are four 10-hour days instead of Continue reading
Friday, June 18 June 18: AE, MLO jobs; Ignite, servicing, MIP tools; industry weighs in on disclosure process for Juneteenth
When my Dad retired from the navy in 1962 after 20 years, he found a job through the Want Ads in the newspaper. I post jobs here, through the wonders of technology, nearly every day. But hey, why don’t you target veterans with your job openings? If you need someone, you can post on the Continue reading
Thursday, June 17 June 17: Bus. Dev. mgr., MLO jobs; sec. marketing, SaaS, purchase biz tools; Fannie addresses NOO & 2nd home policy
When I see lover’s names carved into the wood on a tree, I don’t think it’s sweet. I just think how surprising it is how many people bring a knife on a date. Looking around St. Croix (here in the USVI visiting correspondent start-up Cypress Mortgage Capital, now approving lenders) there aren’t too many structures Continue reading
Wednesday, June 16 June 16: MLO, AE jobs; servicing, sales, TPO, VOI products; Fannie & Agency shifts continue: 3 instead of 7 percent NOO cap?
Satisfaction = Reality/Expectations. You can do the math yourself on that one, and speaking of math and numbers, even though there are hundreds of thousands of people in residential lending, it doesn’t take long for word to spread through our biz when Fannie or Freddie further restricts execution options. In this case, non-QM and “private Continue reading
Tuesday, June 15 June 15: AE jobs; sec. marketing, training, processing, due diligence, TPO products; JVs & acquisitions
I was spending a little time yesterday evening at the local cannabis club with my favorite bud-tender (an ombudsman!), and she was telling me about how businesses are seeing a labor shortage, not a job shortage. There are “help wanted” signs everywhere, but service and hospitality businesses are having trouble attracting employees back to work. Continue reading
Monday, June 14 June 14: Ops, MLO, AE jobs; servicing, dashboard, FHA pricing, VOA products; Agency shifts continue; events this week
Elaine F. reminded me of a quote from Hemingway: “Never mistake motion for action.” And basketball coach John Wooden said, “Never mistake action for achievement.” The FHFA is certain taking action, and moving toward achieving its goals, although those don’t necessarily match those of many borrowers or lenders. Why every originator should care is spelled Continue reading
Saturday, June 12 June 12: Return to the office strategy & thoughts; Agency deals (gfee shifts?); Saturday Spotlight: Usherpa
Some lenders are moving through the “return to the office” procedure, trying to leave plenty of room for adjustments later on while focusing on employee health, avoiding potential illness and lawsuits. Others are grappling with the ongoing shifts of Fannie Mae and Freddie Mac, at the direction of the FHFA, most recently seen reportedly by Continue reading
Friday, June 11 June 11: Non-QM, MLO, AE jobs nationwide; VA, PMI, ECOA, pricing; LO compliance products; bonds pause their rally
Friday: time for some random non-mortgage stuff. Everyone knows that if you lose one sense, your other senses become enhanced. Which is why people with no sense of humor have a heightened sense of self-importance. Jeff Bezos… your divorce so bad you’re going to leave Earth? That’s something! Every state (watch, whenever I use the Continue reading
Thursday, June 10 June 10: AE, Ops, MLO jobs; warehouse, sales, execution, analytics tools; tech survey; disaster updates
With plenty of in-person mortgage events slated for the remainder of 2021, it is good that human brains are specialized for facial recognition and that we’re not chimps whose brains are specialized to recognize something else. (But that would be a great ice breaker at conferences!) Americans are generally an optimistic lot. If you’re bearish Continue reading
Wednesday, June 9 June 9: Title, recruiting, MLO jobs; email, training, AI, lead, AMC products; wholesaler news; rates continue to slide
I hope that Google never shuts down. I know six, maybe seven, things. I know that the President’s plane was delayed seven hours this morning due to cicadas. Another thing I know is that Freddie spelled out its graduated cap on non-owner and 2nd homes. I also know that rumors are now swirling that Fannie Continue reading
Tuesday, June 8 June 8: LO, processing jobs; correspondent, presentation, pre-qual tools; PenFed/TIAA deal and other correspondent news
After years of opening mail I’ve come to the conclusion that, when stamped on an envelope in the U.S. mail, “personal and confidential” usually isn’t, and “time sensitive” isn’t either. Yes, it’s only Tuesday, and there continues to be discussion about the housing market, the lack of homes for sale given the lack of building Continue reading
Monday, June 7 June 7: AE, MLO, Ops jobs; VOA, biz intelligence, appraisal, landing page tools; events & training in June and into July
Time is flying, and the months click by. We’re approaching the Summer Solstice. (Here in Sitka, AK, the official sunrise is around 4AM and it sets around 10PM.) As a lender, did you add to your coffers in the first quarter? If not, or if you only broke even, perhaps it is time for a Continue reading
Saturday, June 5 June 5: VAX pushback; the CFPB & forbearance; multifamily deals, vendor news; Saturday Spotlight: Trinity Oaks Mortgage
I decided to leave my office early the other day, so walked from the dining room into the kitchen to see if anything new was in the refrigerator. Alas, there was no cake. Speaking of cake (yes, one of my weaker segues), it is no cakewalk trying to plan a vacation this summer. But people Continue reading
Friday, June 4 June 4: Servicing, Ops, MLO jobs; purchase, appraisal, PMI, retention tools; Investors react to Agency changes
A while back I made an appointment at a new doctor and under, “What do you wish to be called?” I wrote, “The Chosen One.” Wednesday, I heard the receptionist say, “Please let the doctor know that The Chosen One is here.” They’ve been using it this whole time. Every generation, to one degree or Continue reading
Thursday, June 3 June 3: Underwriter, MLO, relationship mgr. jobs; sales, pricing, processing tools; VA & FHA changes of note
Here’s your pro tip of the day: occasionally blow on the wine in your coffee mug to convince the rest of the Zoom meeting that it is tea. Speaking of the working world, are you an “office worker” or, as Amazon tells its warehouse employees, an “industrial athlete” and to prepare one’s body for that Continue reading
Wednesday, June 2 June 2: MLO jobs; pricing, servicing, processing, VOE tools; non-Agency & jumbo updates; what’s new with LO comp?
Real estate agents will tell you that offering above asking price is only the first step, with many buyers also waiving contingencies, skipping inspections, or providing free lease-backs to sellers, along with offers for the seller to remain in the home for a period of time after closing, rent-free. When something becomes too expensive, consumers Continue reading
Tuesday, June 1 June 1: Ops, sales jobs; securitization, HELOC, verification, tech review, sales products; events and webinars to lead off June
June, already. Plans to return to the office? The Mortgage Bankers Association, for example, is gearing up for a July 12 return. And you can bet it’s watching the machinations of the Agencies. Huh? Rumors of Freddie raising its gfees? Rumors of the 7 percent being ratcheted down to 6.5 percent or 6 percent over Continue reading
Saturday, May 29 May 29: Deal making in the vendor space; SOFR Agency deals; what is a drip buy? Saturday Spotlight: Vaultedge
Let’s start Saturday’s commentary with a piece on consumer behavior. I went to Costco this week, and… no masks! Besides no masks and a safe environment, people are anxious for many things, not the least of which is live music. Do you know what a “drip buy” is, and why Canada has banned it? There’s Continue reading
Friday, May 28 May 28: MBA, U/W, AE, construction lending jobs; multimedia, jumbo, warehouse, rental products; lenders react to GSE changes
Traffic is already bad out there! Here’s a sign on a beekeeper’s truck: “If you see me running, things have gone poorly, and you should run too.” Life throws us plenty of surprises, and has plenty of non-mortgage stuff. Thank you to Jeremy P. for passing along this article on the “50 Oldest Restaurants in Continue reading
Thursday, May 27 May 27: Cap. mkts., MLO, AE, Ops jobs; loan sales, pricing, tax estimating products; is the Fed contributing to housing price escalation?
I was telling my cat Myrtle about the labor shortage in the United States, but she didn’t seem fascinated, to say the least. In fact, she gave me a look like, “I am an apex predator, open the door. Now.” Economists are quick to point out that while there is no shortage of jobs in Continue reading
Wednesday, May 26 May 26: MBA, MLO jobs; Marketing, customer service, VA, retention tools; FHA & VA program shifts; housing: up, up, up
Do you think that creativity is waning? Hardly. Some great products and ideas come out of the mundane. Wonder what happens to your unused hotel soap and shampoo? Do you have a loan product that appeals to multi-generational borrowers or owners, or an easy way of processing one? You should since the country has seen Continue reading
Tuesday, May 25 May 25: MLO jobs; Non-QM, jumbo, audit, fulfillment, servicing risk, trailing doc products; STRATMOR’s thoughts on the market
Are you ready for a real-live holiday on Monday? With millions more Americans vaccinated since the last holiday, and the end-of-May weather, it’s a safe bet people have changed and won’t spend the weekend working like they did during 2020’s Memorial Day. The market for initial public offerings (IPOs), including lenders and vendors, has also Continue reading
Monday, May 24 May 24: AE, MLO, Ops jobs; mixed-use, fulfillment, non-Agency products; in-person & virtual events and training run the gamut
What is your, and your company’s, value proposition? Lenders must be vigilant, which means paying attention to trends, big and small. For example, on the large scale, more and more analysts are talking about talking about (yes, you read that right) the Federal Reserve tapering off on its asset purchases, given the potential expanding U.S. Continue reading
Saturday, May 22 May 22: Capital markets deals & activity; notes on returning to the office from WFH; a helping of vendor news
For those who missed it, yesterday was the 21st day of the 21st week of the 21st year of the 21st Century. I spent yesterday, and much of this week, in Kalispell, Montana (unofficial state slogan: “Don’t Tell Me What to Do”). The natter in the lending community is definitely about volumes and margins and Continue reading
Friday, May 21 May 21: Servicing, cap. mkts., corresp., MLO jobs; servicing risk, HELOC, MI, eClosing products & tools; investor disaster news
Should we start the finish of the normal workweek with some non-mortgage stuff? There are green monkeys living near a Florida airport who are connected to 1948 zoo escape. (Reminds me of the parrots in San Francisco, Pablo Escobar’s hippos running amok, or the chickens in Kaua’i.) Microsoft is retiring Internet Explorer. What’s next? Farewell Continue reading
Thursday, May 20 May 20: AE, MLO jobs; VOA, processing, pricing, marketing, comp webinar tools; investors’ Agency changes
There are some who firmly believe that the Hubble Telescope was sent into space to spy on us. These people are better advised to wonder what Google is up to, without having a telescope. Mr. Cooper and Google Cloud are partnering to create a “customer-centric digital mortgage servicing platform powered by advanced automation technologies,” the Continue reading
Wednesday, May 19 May 19: Ops, MLO jobs; marketing, subservicing, HFA, warehouse products; Agency/GSE changes are ceaseless…
Face facts: There are many differences between men and women. One of which is that when returning home from the grocery store, women typically are more level-headed and carry normal bag loads, whereas men typically carry as many bags as possible to save trips, sometimes with unfortunate consequences. I bring this up because the same Continue reading
Tuesday, May 18 May 18: Cap. Mkts., MLO jobs; pricing, processing, audit tools; events this week; forbearance numbers improve; SoFi’s SPAC IPO
The guy I was talking to yesterday asked about my background. I gave him a detailed history of my upbringing, my education, work experience, and why I get up at 4AM six days a week. Turns out he only wanted to know what was behind me on our Zoom call. Seeing other mortgage folks in Continue reading
Monday, May 17 May 17: Corresp., construction, sales jobs; non-owner, POS products; Customer service tips; jam-packed webinar & training week
Here is a dab of trivia to start the week. There are only about 2,000 heart transplants every year in the United States. So, on average, that’s only about 2-3 per state per month. Help others and be an organ donor! Speaking of helping, people looking for a new job, or forced out of an Continue reading
Saturday, May 15 May 15: Letters on the money supply & inflation, the recovery’s disparities, and compliance concerns; Saturday Spotlight: Stewart
Vendors and lenders, and for that matter every business that could, “turned on a dime” last year and converted workforces to being at home. Now, however, the process is reversing itself, to some extent, and with that comes hiccups. There’s this this short humorous video about life coming out of the pandemic. (Just page down Continue reading
Friday, May 14 May 14: Underwriting, MLO jobs; DPA, non-QM, customer service tools; misc. company news indicates trends
Let me start Friday with an apology… to Alaska. (I thought I saw an eye doctor on an Alaskan island, but it turned out to be an optical Aleutian.) Julie Moore (with Alaska USA Federal Credit Union) pointed out that, given my note yesterday about Jacksonville, FL being the largest city in the U.S., “While Continue reading
Thursday, May 13 May 13: MLO, Ops jobs; cross-border lending, processing, recruiting products; MBS issuance webinar; Quicken name change
People around the nation are “voting with their feet.” Illinois: Seven straight years of population declines. California: Losing population during a year for the first time in history. Do you ever think about the fact that one city, Shanghai, China, has more people living in it than every state besides California and Texas? (Area-wise, what Continue reading
Wednesday, May 12 May 12: MLO, AE jobs; lead gen, turn time, jumbo products; Guild/RMS deal; how much is Better.com worth?
Is Better.com worth $7.7 billion, as indicated by the SPAC deal announced yesterday? I guess things are worth the price at which a willing buyer and seller transact. For comparison, the book value of Rocket is $34 billion, UWM $10.9 billion, Guild Mortgage $876 million. I mention Guild because of its acquisition news from yesterday, Continue reading
Tuesday, May 11 May 11: Ops. mgt., MLO jobs; renovation, docs, retention non-QM training tools; product updates run the gamut
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 Continue reading
Monday, May 10 May 10: Sales jobs; retention, purchase, servicing, reverse products; webinars and training; interview with economist Elliot Eisenberg
Here at the MBAG event in Northern Florida some of the topics of conversation is the economy, the inability to predict interest rates, families, and lending. It has been reported that 25 to 34-year old’s spend more on mothers than any other age group for Mother’s Day, which hopefully is not a mea culpa that Continue reading
Saturday, May 8 May 8: Chicken wings are how much? MI & vendor news and results; Freddie SOFR deals; Saturday Spotlight: ReadyPrice
Lenders everywhere are watching costs and volumes. Overtime pay has virtually vanished, and efficiency is the name of the game (versus throwing personnel and technology at production bottlenecks). Sure enough, recent MBA application data show declines, and margins are acting as margins always do when production drops. According to FBX | Informa Financial Intelligence, April Continue reading
Friday, May 7 May 7: Accounting, Ops, MLO jobs; AMC, lead, warehouse products; financial transparency in our biz; employment figures sink rates
It’s Friday, so how ‘bout some non-mortgage supply and demand stuff? Let me start with an apology to Willie Mays’ family (who may or may not read this daily mortgage commentary) for missing his 90th birthday yesterday. (Years ago he was known for welcoming all ‘trick or treat’ kids, from anywhere, at Halloween, so we Continue reading
Thursday, May 6 May 6: Reverse, MLO, Ops jobs; pricing, best-ex, QC products; compliance and risk notes & information
While the market is digesting the implications of Rocket’s earnings (the shares are down in pre-market trading), remember when, in March 2020, it was as if someone flipped a switch and suddenly everyone was working from home. Now, however, owners and managers of lenders and vendors across the nation are debating allowing employees to continue Continue reading
Wednesday, May 5 May 5: AE, MLO, product jobs; servicing, appraisal, marketing products; Genworth/Enact, LoanSnap IPO news
Today celebrates Mexico’s victory over France in the Battle of Puebla on May 5, 1862. It was a relatively minor battle (and the French reclaimed Puebla a year later) but a symbolic one because a small Mexican army defeated a larger occupying force. By 1867, Mexican troops had driven France from the country. Cinco de Continue reading
Tuesday, May 4 “May the 4th be with you” Day: Processing, MLO jobs; warehouse, marketing, eClose, efficiency tools; disaster updates
Most other countries construct homes out of concrete, stone, steel, or brick, but here in the good ol’ USA we use wood. A renewable resource, right? I mention this because lumber prices, which the government doesn’t control (yet) have risen more than 300% year over year, hit another high on the Chicago Board of Trade Continue reading
Monday, May 3 May 3: Secondary, MLO, & sales jobs; HELOC, bridge financing, Non-QM, verification products; upcoming events, in-person and virtual
Who is Guramrit Hanspal? Every servicer and lender hope good ol’ Gur doesn’t start giving lessons in how to avoid making mortgage payments, which he has avoided doing for 23 years and is still in his NY house. (If I were him, is that something I really want in the press rather than laying low?) Continue reading
Saturday, May 1 May 1: Letters regarding Agency changes; vendor news; Securitizations: Agencies don’t only do SFH
No residential loan originator would ever want to see this in their email. “Dear ____: After much discussion, our leadership has decided to reduce our competitive position in the marketplace. To ‘right-size’ our operations department, we would rather do one loan for $600,000 than three loans for $200,000 each, and we will do this through Continue reading
Friday, April 30 Apr. 30: CRM, Ops, Consumer Direct, AE, LO jobs; JV and MSA updates; Redwood Trust results; CFPB action
How are we 1/3 done with 2021 already? Few are sitting on their hands as the months roll on. Exxon had its first profitable quarter since 2019. Fannie Mae posted its first quarter results this morning: $5.0 billion net income for the first quarter of 2021 (compared with $4.6 billion for the fourth quarter of Continue reading
Thursday, April 29 Apr. 29: Corresp., AE, LO jobs; digital, warehouse, processing, pricing products; Freddie & Fannie news incl. earnings
A “google” is the large number of 1 with 100 zeroes after it. For lenders, a billion is a large number, and it would be unheard of for a lender to save $1 billion in costs. But that is what Google’s parent Alphabet Inc. is saving, per year in costs, because employees are working from Continue reading
Wednesday, April 28 Apr. 28: LO jobs; lead gen, servicing risk, presentation, DPA, valuation tools; M&A firestorm; housing: strong like bull
There sure is a lot going on out there! From California comes news that Finance of America is buying “certain assets” from California’s Parkside Lending, and from Texas, the parent company of Dallas-based Veritex Community Bank is buying a minority stake in Thrive Mortgage LLC. In-person conference news continues to increase. MBAG’s event is in Continue reading
Tuesday, April 27 Apr. 27: Secondary mktg., AE jobs; workflow, payment, doc tools; company sponsored events; VA & FHA updates
When I was a kid, I did things like eat Wonder Bread. I still enjoy a McDonald’s cheeseburger on occasion. As a kid I remember sharing a Coke with the kids on my street between hoops games, having a bite of a buddy’s cookie, or merely rinsing off a scratch with hose water. Now there Continue reading
Monday, April 26 Apr. 26: Servicing, sales jobs; processing, broker, price products; in-person and virtual events & training coming soon
While the market digests the acquisition of Flagstar by NY Community Bancorp by the end of 2021, and talk of more deals in the works, in previous generations a “pension” from a company was a big deal, something that could make or break a job offer. Although retirement pensions have gradually been replaced by 401(k)’s, Continue reading
Saturday, April 24 Apr. 24: Vendors partnering; building & housing issues go back years; Saturday Spotlight: Service 1st
Do you know what a “HENRY” is? No, not this timeless song. It’s an acronym for, “High Earner Not Rich Yet.” The demographics of the current home buying generation are fascinating. Millennials, born between 1982 and 2000, after years of everyone else wondering if they were going to own pets, get married, have kids, and Continue reading
Friday, April 23 Apr. 23: MLO jobs; LOS, sales, ARM, HELOC, servicing risk products; Ocwen, PHH, TCB, Redwood Trust company news
My cat Myrtle seems immune to marketing and advertisement. Not everyone is, of course, and there are some clever, albeit ominous, ways to get messages across. Google, of course, knows how to get messages across, knows a lot about you, and knows how to make money. Housing inventory is so limited, even Google took notice Continue reading
Thursday, April 22 Apr. 22: Corresp., MLO, Ops jobs; retention, servicing, construction-to-perm products; fraud report; CFPB, compliance, and legal shifts
Not you, of course, but many other people in our biz are elderly. Sure you haven’t seen them in person in a year, but they’re there. Or they have elderly parents. Heck, is “elderly” a bad word now? Seriously, I hope everyone reading this has a long and fruitful life, and when I hit “elderly,” Continue reading
Wednesday, April 21 Apr. 21: AE, MLO, Ops jobs; subservicing, jumbo, sales products; MLO to broker training; investor underwriting changes; real estate “humor”
Over the weekend I visited a gas station, and the fellow in the kiosk had a name tag with, “Tim, Fuel Leader” inscribed on it. I will leave making fun of the title to you, but seeing him in there made me wonder how much interaction and collaboration he has with… who? In this era Continue reading
Tuesday, April 20 Apr. 20: Training, AE jobs; pricing, risk mgt., dashboard tools; servicing package for sale; investors adapt to Agency shifts; UW humor
Happy 420! (Tomorrow is “Happy Surprise Drug Test Day”.) Whenever I ask my cat Myrtle about her opinion of the Consumer Finance Protection Bureau, she remains mum. But the CFPB has been in the press lately. Servicers are girding their loins and making sure their portfolio clients are being handled per rules and regulations. Yesterday Continue reading
Monday, April 19 Apr. 19: MLO jobs; sales, jumbo, purchase biz products; lots of events & training, from soup to nuts, in the next few weeks
As lenders are wondering who will be the next merger or acquisition announcement (news of the Sterling Bancorp and Webster Financial came out this morning), and there will be someone next, do you think your company will last forever? Someone who had a lot of time on their hands put together this map of Blockbuster Continue reading
Saturday, April 17 Apr. 17: Letters on Agency buybacks and appraisal waivers; Saturday Spotlight: Embrace Home Loans
I ordered a chicken and an egg from Amazon. (I’ll let you know.) You think the mortgage process is confusing and, at times, thorny? How ‘bout a totally non-mortgage related item for a Saturday morning to keep things in perspective when ethics, the government, and science collide. Sharon MacNeil lost her husband Eric to cancer, Continue reading
Friday, April 16 Apr. 16: Lock desk, MLO, underwriter jobs; POS, workflow, digital tools; Agency’s trend: not your friend?
Suddenly everyone’s ruminating on upcoming mergers and acquisitions (and there will definitely be some), but in the lower management ranks, lenders are already shifting their hiring practices, and taking a careful measure of production and productivity. Will we ever run out things to measure? The median age (half above, half below) of owner-occupied homes across Continue reading
Thursday, April 15 Apr. 15: AE, Ops, Sales jobs; Sec. mktg., NOI, QC, diversity products; NewRez/Caliber deal; servicing retention study
There are some clever people out there, especially when it comes to satisfying demand. Lenders know that mortgage pricing is a function of supply and demand. If one investor doesn’t want your non-owner loans, for example, some other investor will, whether it is a Wall Street private label or a non-QM investor. I mention this Continue reading
Wednesday, April 14 Apr. 14: MLO jobs; risk reduction products; marketing, workflow tools; JP’s earnings, and the MBA’s take on 2020’s profits
“I wear a stethoscope so that in a medical emergency I can teach people a valuable lesson about assumptions.” People shouldn’t assume that all offices are made equal. People in our biz shouldn’t assume that “all lenders are the same.” Jim Cameron from the STRATMOR Group has noticed a difference between depository banks and independent Continue reading
Tuesday, April 13 Apr. 13: MLO jobs; HELOC, renovation, jumbo, sales products; new correspondent investor for non-QM & QM loans
Why do all underwriters have soft hair? Because they over-condition! (How do your underwriters feel about bitcoin? Brokers up in Canada are now accepting eCurrency.) Underwriters are charged with analyzing the 5 C’s of credit (character, capacity, capital, collateral, and conditions) and hope that none of their borrowers go bankrupt. Surprisingly, bankruptcy filings by consumers Continue reading
Monday, April 12 Apr. 12: Sec. mktg., MLO jobs; customer support, servicing products; upcoming webinars cover everything from origination to servicing
I received this over the weekend: “I just want to make enough money to live a life that doesn’t include Microsoft Teams in my work life.” Many people in residential lending began their careers before Teams even existed, and I love it when I am listening to someone in their 60s or 70s talking about Continue reading
Saturday, April 10 Apr. 10: Survey on Agency shifts; Vendor news; Freddie K Deals; Saturday Spotlight: First Community Mortgage
John Travolta tested negative for coronavirus last week. Turns out it was just Saturday night fever. He’s healthy as a horse. How healthy is your pipeline? From what I hear, pipelines are still relatively substantial but new locks are slowing somewhat and lenders are working hard on closing loans locked before March. Sure enough, according Continue reading
Friday, April 9 Apr. 9: Sales mgt., MLO jobs; non-QM, processing, ECOA, subservicing tools; Administration & housing
What’s new out there? Queen Elizabeth’s husband Prince Phillip has passed away this morning at age 99. Wealthy people in New York seem to be fleeing to live in other states with a lower tax rate. Both Freddie Mac and Fannie Mae released QM loan information that maps out their policies. Any lender originating Agency Continue reading
Thursday, April 8 Apr. 8: Non-QM, reno, jumbo products; SaaS, sales, underwriting products; correspondent news; underwriting shifts
“’i’ before ‘e’ except after ‘c’” has finally been disproved by science. Does “machine learning” equal “Artificial Intelligence (AI)”? Nope. And did you know that over the past 12 months, in the U.S. there has been a net loss of 2,563 bank branches (3,585 branches shuttered while 1,022 were opened) per S&P Global? Although the Continue reading
Wednesday, April 7 Apr. 7: AE, MLO jobs; subservicing, workflow, marketing, processing tools; FHA news; events this week
Does the CFPB have jurisdiction of all mortgage-related agencies, borrowers, and servicers? We’ll see, as yesterday, and this proposal should not come as a surprise to any mortgage servicer, the Consumer Financial Protection Bureau issued a proposal that would broadly halt foreclosure initiations on principal residences from August 31, 2021 until 2022, and change servicing Continue reading
Tuesday, April 6 Apr. 6: MLO jobs; post-close, processing, sec. marketing tools; conventional conforming shifts of note
For some good news, any company that holds or buys servicing has seen their balance sheet improve with the rise in mortgage rates. For more good news, reverse mortgage lenders are licking their chops over the news that homeowners, aged 62 and older, saw their collective housing wealth increase by $234 billion to a record Continue reading
Monday, April 5 Apr. 5: AE jobs; lead gen products; wholesaler’s new products; training, events, & webinars on sales and operations
“Some are born to meet, some achieve meetings, and some have meetings thrust upon them.” There are definitely in-person meeting “green shoots” sprouting ahead of the residential and commercial lending conference season. A survey done during a session last week hosted by the Mortgage Bankers Association for state and local organizations showed the vast majority Continue reading
Saturday, April 3 Apr. 3: Agency deals in the secondary markets help rates in the primary market; Saturday Spotlight: Candor
Easter Weekend! What do you call a sleepwalking nun? A roamin’ Catholic! Grass cutting season is upon us. What do you get the guy who has everything, including a lawn? How about a robotic lawn mower that also mulches the grass? What’ll they think of next? (It reminds me of the classic “cat in a Continue reading
Friday, April 2 Apr. 2: Tech, MLO, AE, Non-QM, Ops jobs; Non-Del, servicing, reno products; changes in flood insurance ahead?
Although today is not a Federal holiday, it certainly seems like it should be one. And not to be “Debbie Downer, it is hard to believe that we have two more months until the next Federal holiday. (Before I forget, can you do me a very quick favor? Please answer 1 yes/no question in a Continue reading
Thursday, April 1 Apr. 1: Recruiting, AE, MLO, Ops jobs; hedging, HELOC, anti-fraud tools; CFPB meeting transcript; F&F’s bold move; deep dive into rate trends
Worried about it being April Fool’s Day? Don’t be. We’ll take care of you, although today’s job and product notes are real. Today’s podcast includes a discussion on extended locks, as well as an interview with millennial Megan Sinclair on her non-biased experience with the refinance process. Worried about rising rates? What, your company doesn’t Continue reading
Wednesday, March 31 Mar. 31: MLO jobs; broker, jumbo, leads, presentation, liquidity tools; FHA, Ginnie, USDA news in context
What word becomes shorter when you add two letters to it? Short. (There’s the cutting-edge wit this commentary is known for!) Time can play tricks on us. Did you know that the fabled Studio 54 in Manhattan was only open from 1977 to 1980? Did you know that this is the end of the first Continue reading
Tuesday, March 30 Mar. 30: MLO jobs; jumbo, workflow, retention products; Agency risk changes ahead; Want a 6 month lock? MISMO President interview
The demand for shipping on the Suez Canal never stopped. (Do you think this conversation ever took place on the bridge of the Ever Given? “I bet you can’t turn this thing around in the Suez Canal!” “Really? Here, hold my beer.”) Mortgage pricing, as with so many things, is a factor of supply and Continue reading
Monday, March 29 Mar. 29: AE, MLO jobs; sales, subservicing, automation products; virtual conferences & webinars with in-person events coming
Today’s audio version of the commentary is always available. (This week’s, sponsored by The STRATMOR Group, has a short interview with me today on how people in the residential lending business continue to learn, and about events and conferences. Can you believe its been a year since we all learned about the Tiger King?) But Continue reading
Saturday, March 27 Mar. 27: Shielding income; motivating WFH employees; vendor updates; Saturday Spotlight: Iron Mountain
Let’s take a momentary break from mortgage chatter. Do you think that the well-being of future generations should be give the same weight as that of the present one? That answer may vary based on the generation. Few will argue that the rich are not getting richer and the poor poorer, and the gap is Continue reading
Friday, March 26 Mar. 26: IT sales, MLO, Ops jobs; rate protection, broker products; F&F changes; con’t forbearance improvement
I just finished my weekly 3 minute “abs of steel” workout, and it’s time for a rant! A wealth tax? How does the Federal government pull that off? Is an auditor going to ask to see my baseball card collection which accounts for 50 percent of my net worth? Make me pay for an appraisal Continue reading
Thursday, March 25 Mar. 25: MLO, branch, Ops jobs; sales, POS, warehouse products; STRATMOR Ops paper; Ginnie, FHA, VA, USDA updates
After spending millions of dollars studying the issue, a blue-ribbon panel found that statistics show that teen pregnancy drops dramatically after age 20. (Need a minute to think about that?) Want some more numbers, and want to know why there are fewer home listings than there are Realtors? How about Lennar announcing a $4 billion Continue reading
Wednesday, March 24 Mar. 24: IT, AE, marketing jobs; comp, retention, pre-approval tools; non-QM there for non-owner & 2nd homes?
My cat Myrtle is not a huge basketball fan. And she certainly wasn’t interested in my idea recently to find fifteen people willing to pony up $1 million each to buy Michael Jordan’s place near Chicago. Hey, “Air” BNB it? Sell $20 tickets to 200 tourists a day for a 10 percent annual return? COVID Continue reading
Tuesday, March 23 Mar. 23: MLO jobs; sales, tech., subservicer audit products; approaching webinars & training; forbearance numbers decline further
Are you looking for signs of the times? The Wall Street Journal, along with supermarket flyers everywhere, tells us that there are more real-estate agents than there are homes for sale in the U.S.! (At the end of January, NAR, viewed by some as a cartel, registered 1.04 million homes for sale, down 26% from Continue reading
Monday, March 22 Mar. 22: MLO, Ops, AE jobs; purchase, non-QM, underwriting tools; wholesaler news; “Liquidity Ratio” impacting mortgage rates
I have a 30-year-old shirt from Tuttle & Co. with this printed on it: “Don’t confuse brains with a bull market.” Aside from some occasional unexpected jolts, rates have been coming down since 1981, for forty years. (Click on “max” near the top if you’re looking at the graph.) Is your business interest rate independent? Continue reading
Saturday, March 20 Mar. 20: Vendors’ products, partnerships, progression, proficiencies; Saturday Spotlight: Merchants Bank of Indiana
Is it news to anyone that low rates, increased savings, population demographics, and working from home are driving housing values higher? Do you or your clients own rentals? The residential mortgage market is seeing strong housing demand and low inventory, so we can expect home price appreciation and thus reduced affordability. So what? The need Continue reading
Friday, March 19 Mar. 19: HELOC, AE, Non-QM, MLO jobs; rental market snapshot; non-QM products; Ceaseless Agency news & price changes
If you love robocalls, raise your hand. (I thought so.) I myself have had no success obtaining their home phone numbers to call them back at home and finish the conversation. Imagine that. But the FCC has issued the biggest fine ($225 million) in the agency’s history, as the new acting FCC chairwoman takes on Continue reading
Thursday, March 18 Mar. 18: MLO jobs; pricing, sales, DPA, pricing, QC reporting products; wholesale & correspondent news; bond market/Fed disconnect
The Internal Revenue Service is not known for being creative, but yesterday it was announced that the usual tax deadline of 4/15 has been moved to 5/15. People can be creative. For example, here are easy steps on how to walk into a room and interrupt yourself during a Zoom meeting. Plenty of folks are Continue reading
Wednesday, March 17 Mar. 17: MLO jobs; broker, underwriting, non-QM, processing tools; does the Fed expect a fast, hot recovery?
Many years ago I asked my father about why we didn’t have a home gym. He replied, “Want exercise? Jog to the liquor store and get me a beer, then do a 100 pushups, and we’ll talk about it.” Okay, he didn’t really say that, but up until recently, health and wellness factors in housing Continue reading
Tuesday, March 16 Mar. 16: MLO, recruiting, training jobs; sales, doc, processing tools; LLPA price adjustment changes sweep through investors
Time flies. Ringo is 80!? I bet he’s done some vacationing in the last 60 years. I gave my wife a dart and a poster of a world map and told her, “Throw this and wherever it lands I’m taking you on vacation when this pandemic is over.” Turns out we’re going to be spending Continue reading
Monday, March 15 Mar. 15: Ops, MLO, AE, compliance jobs; HFA, URLA, servicing products; upcoming training & events; rates stable, for now
Here we are at the Ides of March: only two weeks until the end of the 1st quarter! The time is flying by and time is precious. Last night I slept on the couch to cut down on my morning commute. It worked! Rates have moved higher in 2021, as certainly the pressure is on Continue reading
Saturday, March 13 Mar. 13: The CFPB removes doubt on intent; Mike Cagney on Rohit Chopra; state-level changes: Oregon, HOA fees, and a foreclosure
Eating pizza is often a social thing, so don’t forget “Pi Day” is tomorrow, which is also, coincidentally, Albert Einstein’s birthday. Although pizza promotions have taken over this date, every year March 14 (3.14) celebrates the irrational number that we use to explain the relationship between a circle’s circumference and diameter, bringing joy to nerds Continue reading
Friday, March 12 Mar. 12: Fulfillment, MLO, product dev. jobs; mail, CRM, presentation, digital products; Freddie & Fannie shifts; Mike Cagney interview
A year ago… remember when you couldn’t find toilet paper for sale? Now you can’t find a house for sale. But there are plenty of Agency MBS and other debt for sale. Just as borrowers are lowering their debt load by refinancing their home loans, corporations and governments are taking advantage of low rates while Continue reading
Thursday, March 11 Mar. 11: Sec. Mktg., MLO, Ops jobs; compliance, broker, correspondent products; free events this week; Fannie constricts footprint
With all the hundreds of thousands of borrowers around the nation left to refinance, lenders are understandably concerned about mortgage rates creeping higher, removing swaths of rate & term refi candidates. Of course, companies with servicing are watching the balance sheet value of that asset increase nicely as rates move up, once again providing a Continue reading
Wednesday, March 10 Mar. 10: DPA, automation, sales, AMC, compliance products; broker & correspondent tools; economy quietly gearing up
Today I head off on a business trip to Georgia for a few days, which reminded me that yesterday’s commentary had some state facts. As expected, people took exception with Texas and West Virginia’s lake trivia. Today they can take exception with the latest state rankings from U.S. News (thank you to Ken S. for Continue reading
Tuesday, March 9 Mar. 9: Sales mgt., MLO jobs; processing, FHA, efficiency, video products; Dr. Fratantoni on the economy
Does anyone agree on anything anymore? In the past, state trivia was fun because everyone agreed on it. No one will disagree that Alaska is the northernmost, westernmost, and easternmost state, for example. Now if I were to say, “There is only one natural lake in Texas: Caddo Lake,” people will find fault with it. Continue reading
Monday, March 8 Mar. 8: Credit, AE, MLO, branch jobs; automation, FHA/VA, fintech, URLA products; events & training from your divan
Let’s start the week with a gaggle of questions. Do you feel old knowing that Taylor Swift is older than the four Beatles were when they broke up? Have you heard of “suspicious foreign players” passing themselves off as underwriters in applying for jobs? Have you begun talking about “restart economics”? If you’re reading this, Continue reading
Saturday, March 6 Mar. 6: LIBOR phase out details; Agency deals continue, helping borrower’s mortgage rates; Saturday Spotlight: ReadyPrice
Lenders think about business every day. According to FBX, February 2021’s mortgage rate-lock volume was up 29 percent year over year but down 7 percent from January across all channels, while funded volume increased 76 percent YoY and flat MoM. In the retail channel, lock volume increased 28% YoY and decreased -7% MoM, while funded Continue reading
Friday, March 5 Mar. 5: Recruiting, training, MLO, AE jobs; DPA, tech products; principals and attorneys weigh in on wholesale tumult; strong jobs data!
In the legal field, virtual litigation is thought to be here to stay, vaccine or no vaccine. And as the pandemic continues, and remote hiring continues for lenders, CEOs, owners, and managers are grappling with the thought of having scattered workforces going forward, and there will be no, “Okay, everyone back to the office!” when Continue reading
Thursday, March 4 March 4th: LO, Ops, AE jobs; HELOC, efficiency, AMC, sales, VOE tools; podcast for LOs; jumbo & non-QM news
Welcome to the only day where the date is a command. Owners of shopping malls wish they could command everyone to go shopping in one. When was the last time you went into a shopping mall? I don’t remember either, and I’m starting to miss those rock-solid pretzels and henna tattoo & ear-piercing booths. Turn Continue reading
Wednesday, March 3 Mar. 3: AE, MLO jobs; broker, sales, VOE tools; URLA & processing news; more talk of an economic recovery
To listen to the audio version of today’s commentary with an interview with STRATMOR Group’s resident recovering accountant Jim Cameron on handy metrics for MLOs to be aware of, please click here. Income and revenue are certainly metrics whence people make decisions. Is the profit on a locked, but not funded, loan something a lender Continue reading
Tuesday, March 2 Mar. 2: New products, fee collection, sales, VOE tools; events and webinars: all this week!
As a kid, magic tricks are amazing because we think there is magic. As an adult, magics tricks are amazing because we know there is no magic. Lenders know that financing a home is not magic, done through sleight of hand. Quite the opposite. Getting a mortgage while you’re grabbing a cup of coffee is Continue reading
Monday, March 1 Mar. 1: Ops, MLO jobs; sales, non-QM, HELOC products; Agency & investor disaster policies; the Fed & rates
With the jump up in mortgage rates Thursday, and the move back down Friday, a few lock desk personnel wrote to me over the weekend asking about ways of keeping LOs who floated when rates were low, or locked loans at the bottom, off their back. Here you go. Certainly, the mortgage servicing rights of Continue reading
Saturday, February 27 Feb. 27: Readers’ letters on the CFPB, rates, and how lenders will keep lending; Saturday Spotlight: Symmetry Lending
Some questions are difficult to answer. What does the bacon industry have against re-sealable packaging? What is it about certain loan originators who, when rates actually go “up” to 3.25%, think the sky is falling and world ending? Will all the refinance rate jockeys will go back to selling cars? But something that can be Continue reading
Friday, February 26 Feb. 26: Lenders hiring MLOs; correspondent, tech, servicing, tech products; what you should know about yesterday’s rate move
Huh? Rates don’t continually go down and then stay there for an indefinite period of time? No, they don’t. There’s this opinion piece in the Wall Street Journal: “We’ll Have Herd Immunity by April. COVID cases have dropped 77% in six weeks. Experts should level with the public about the good news.” Every lender will Continue reading
Thursday, February 25 Feb. 25: Ops, MLO jobs; cap. mkts., valuation, default, fulfillment tools; technology & processing notes
As hope for a recovery drawing nearer helps push rates higher, Carol K. writes, “I hate it when people ask me what I do for fun because there is no classy way to say, ‘Binge drink.’” The approaching 1003 form mandatory changes may cause some people to turn to drink… Is it going to “March Continue reading
Wednesday, February 24 Feb. 24: MLO jobs; servicing, customer service, decisioning, retention tools; events & training this week
(To listen to the audio version of today’s commentary with an interview with industry vet Joe Garrett, please click here.) There’s a cost to staying at home as much as we do. I went to the doctor the other day. She told me, “I’ve got good news and bad news. The good news is that Continue reading
Tuesday, February 23 Feb. 23: MLO, Ops jobs; underwriting, loss mit, broker, corresp., jumbo products; VA, FHA, Ginnie changes
(To listen to the audio version of today’s commentary, please click here.) Being home schooled was the goodest thing I ever did! Disparities in mortgage approval rates and higher student loan debt are contributing to a significant gap between Black and White home owners, according to the National Association of Realtors. Many ask, “How about lowering Continue reading
Monday, February 22 02-22-21: MLO, Ops management jobs; performance, pricing, analytics, home equity products; Freddie/Fannie changes
What do we have to look forward to? The next Federal holiday isn’t until the end of May (Memorial Day). There’s Easter, a month and a half away (April 4), and most states’ clocks “spring ahead” on March 14. The employees of People’s United Financial, Inc. and M&T Bank can look forward to working through Continue reading
Saturday, February 20 02-20-21: Reader letters on recruiting, 2021 expectations, and credit; Saturday Spotlight: Maxwell; a clever joke
To really spice things up and add variety to my life, this morning I put a generous helping of butter on my oatmeal after the generous helping of brown sugar. (Usually it is before.) Pipelines are still full of generous helpings of loans as we find ourselves in the second half of February already, and Continue reading
Friday, February 19 Feb. 19: MLO & Ops jobs; fee collection, HELOC, renovation products; comp survey; bank M&A trends; lead sources
(To listen to the audio version of today’s commentary, please click here.) I received many nice comments about the section in yesterday’s commentary about losing people in our industry before their time. Unfortunately, there was one that I just found out about yesterday: Oklahoma’s Kent Carter recently passed away. We would steal each other’s jokes Continue reading
Thursday, February 18 Feb. 18: AE, MLO, Ops jobs; rule logic, subservicer, non-QM, POS products; rate moves partially impacting rate sheets
(To listen to the audio version of today’s commentary, please click here.) Welcome to 124-year-old Girl Scout Cookie Season! If you’re an LO, how’d you like to deal with borrowers for 189 years, or eat the same thing day after day? I thought so. Meet Jonathan who now holds the record for the oldest animal Continue reading
Wednesday, February 17 Feb. 17: Ops, MLO, management jobs; broker, non-QM, communication tools; AmeriHome/Western Alliance deal numbers
(To listen to the audio version of today’s commentary, please click here.) Time flies. President Biden extended FHA & VA mortgage relief and the ban on home foreclosures through June. Did you know that, at 46, Leonardo DiCaprio is now the same age as Steve Martin was when Steve made “Father of the Bride?” (Apparently, Continue reading
Tuesday, February 16 Feb. 16: IT, MLO, training jobs; VA IRRRL, sales, final doc tools; non-Agency product trends; Mortgage rates? Ouch!
Despite the lousy weather in many parts of the nation, and Mardi Gras being cancelled, the year is off to a fine start for lenders, and borrowers benefitting from lower rates. Might there be clouds on the horizon? Sure. Rates are creeping higher, especially this morning. Are all your vendors set with URLA? With all Continue reading
Monday, February 15 Feb. 15: Retail sales jobs; ECOA, sales tools; virtual events and training from soup to nuts, all from your living room
While there are always juicy headlines out there, like this weekend’s Senate acquittal in the second impeachment trial of former President Trump, or LeBron James breaking the record for most turnovers in NBA history, those headlines don’t always have an impact on rates. For an in-depth look at how news impacts rates, MCT wrote a Continue reading
Saturday, February 13 Feb. 13: Vendor news from around the biz; letters on credit concerns; Saturday Spotlight: LHM Financial
Are people in their 30s taking time away from their jobs to look at alluring online photos? Kind of… It certainly is a type of charm. Yes, Valentine’s Day is tomorrow, reminding us that we’re almost halfway through February already and life continues to be good for lenders and MLOs who are helping millions of Continue reading
Friday, February 12 Feb. 12: Private bank, correspondent, MLO jobs; CRM, jumbo, sales tools; LDI now public; Wells’ PPP fraud example
Lending and real estate are permanently linked. On the mortgage side of things, the podcast of today’s commentary features thoughts on the $1.5 billion cap on Agency whole loan sales, and it can be heard via Apple, Spotify, or Google: subscribe and download. On the real estate side of things, inventory issues around the nation Continue reading
Thursday, February 11 Feb. 11: AE, MLO jobs; warehouse, anti-fraud, pricing products; Federal Reserve: steady as she goes
I’ve never set foot on a Lear Jet, but was not excited to hear the iconic product ceasing production. Freddie Mac’s 4th quarter results are pretty exciting. I was very excited that Chrisman LLC was voted the #1 Workplace in the “Free Daily Mortgage Commentary with 5 or Fewer Employees” category. Don’t ask me what Continue reading
Wednesday, February 10 Feb. 10: M&A, IT jobs; VOE, CRM, non-QM products; conventional conforming news; CPI: no inflation worries
Here we are in the seemingly 58th week of 2020. What’s new? The podcast of today’s commentary features thoughts from the Millennial host on how lenders can address that market, and it can be heard via Apple, Spotify, or Google: subscribe and download. In terms of news, the FHFA extended forbearance protection past March. (More Continue reading
Tuesday, February 9 Feb. 9: MLO jobs; jumbo, investor programs; processing tools; MISMO fee update; thoughts on credit; training & events – many this week
Yesterday I flubbed up by discussing the Administration’s proposal to eliminate credit unions and have the CFPB control the credit process. The article discussed eliminating credit bureaus, not unions, and fortunately the link was there. Credit unions are alive and well and continue to garner market share in residential mortgages. In fact, many will argue Continue reading
Monday, February 8 Feb. 8: CRM, Ops, MLO jobs; Pooling, processing, broker, recruiting products; a shift in CFPB thinking? Rates creeping higher
A Pennsylvania man is suing Smart Water for not making him smart, and here, in this Commentary, I’d like to formally announce my lawsuit against Thin Mints. Residential lenders are not only watching the 10-year yield hit a pandemic high, but are concerned about the legal and regulatory environment. Whether it is lawsuits or lending, Continue reading
Saturday, February 6 Feb. 6: Notes on housing and the economy; capital being injected into vendors; Saturday Spotlight: FlexPoint, Inc.
Much like me releasing this commentary AND being Myrtle’s personal chef, there are a lot of Americans out there who have two jobs, and our Census Bureau has been tracking the rise of those individuals. Over the past 20 years, the percentage of U.S. workers who hold more than one job has increased by a Continue reading
Friday, February 5 Feb. 5: Credit, AE, MLO, marketing jobs; bridge loan, POS, VA IRRRL, servicing products; how to block trigger lead sales
Guys around the nation have nine days to forget that nine days from now is Valentine’s Day, and florists everywhere have already ordered roses (in the middle of winter!) flown in from South America, Holland, or Israel. Despite this flora being totally out of season, the floral industry has, over time, equated roses with Valentine’s Continue reading
Thursday, February 4 Feb. 4: Lock desk, credit, MLO, Ops jobs; underwriting, pricing tools; DACA, URLA changes; primer on the secondary markets
Making headlines is United Wholesale averaging $15 billion a month in production and earning total net income of $3.4 billion for 2020, quite a change from the $415 million of net income in 2019. And over time, we change. In your 20s: “I fell asleep backwards on a coffee table last night and woke up Continue reading
Wednesday, February 3 Feb. 3: Senior Credit, writing, Ops, MLO jobs; non-QM, HELOC, new lender news; fast-approaching training & events
Companies and organizations around the nation are wondering about when in-person conferences will become the norm again. While they’re wondering about health concerns, picking the right venue for that special event can be a problem. Or not, if you’re in Idaho. In-person contact has gone to a minimum, so a portion of that has shifted Continue reading
Tuesday, February 2 02/02/21: M&A, sales jobs; sales, pre-approval, hobby farm products; events & training; wholesale & correspondent soundbites
Okay boys and girls, besides it being a snow day in the Northeast, and Groundhog Day and Punxsutawney Phil’s 135th prognostication, here is today’s short video math lesson: Snow+Pandas=Fun. Continuing with the four-legged theme, Chrisman LLC was dealt a blow to its morale yesterday when my cat Myrtle balked at joining the Super Bowl pool. Continue reading
Monday, February 1 Feb. 1: REIT, MLO, Bus. Dev. jobs; warehouse, MI, AMC, HELOC products; MSRs, the economy, servicing, and the CFPB
January’s already in the rearview mirror and our industry is keeping an eye on all kinds of things. Like silent movies moving into “the Talkies” in 1927, the Chrisman Commentary – Daily Mortgage News podcast is now live and at any place you obtain your podcasts (like Apple or Spotify). Subscribe or download today, it Continue reading
Saturday, January 30 Jan. 30: LIBOR phase out updates; note on the economy & lenders; Saturday Spotlight: ClosingCorp
Tomorrow when I wake up, I might go running. Or I might win the lottery. The odds are about the same. With all the snow this week, it is hard to tell if the homes without shoveled driveways are owned by people who are elsewhere, lazy, or the house itself is vacant. Despite interest rates Continue reading
Friday, January 29 Jan. 29: Sales Director, MLO, branch jobs; servicing, sales, jumbo products; URLA and 4506-C news bites
One should never stop learning. For example, I just began reading a great book: “How to Cook Crack and Clean a Crab.” Step One: Use commas. I learned that the Bill & Melinda Gates team is the largest farmland owner in the United States. Last year’s overall net farm income is projected to rise 43 Continue reading
Thursday, January 28 January 28: Ops, MLO, IT jobs; MSR, originator ranking, digital tools; FHA’s bevy of news; Ginnie’s eNote pool
The stock price of American Airlines is back to February 2020 levels. Investors seem to be “buying hope.” In Mortgage Land, though I am beginning to hear tales of pricing margins dropping slightly, if you’re a lender and it takes your back office two months to close a refinance, why make your pricing more aggressive? Continue reading
Wednesday, January 27 Jan. 27: Encompass, training, credit risk jobs; pricing, sales, reno products; training on securitization & other upcoming events
Just a couple more weeks until my uncle sends me a text asking if I’ve seen these funny photos of Bernie Sanders, of which there are no shortage. There is, however, a shortage of houses out there for the 70+ million Millennials to buy, even if rates were 0 percent and DPA programs abounded (which Continue reading
Tuesday, January 26 Jan. 26: MLO jobs; Sales, pricing, processing, correspondent, products; LO productivity study; FHFA disaster news
While the Biden Administration waits for the Trump staff to tell them the Wi-Fi password in the White House, the government continues to occupy our thoughts. “The government should not vaccinate health care workers first. Because if it fails, we’re in trouble. They should try the vaccine on politicians first because if we lose a Continue reading
Monday, January 25 Jan. 25: MLO, Ops jobs; broker, VOE, servicing, MI tools; imminent training & virtual events from your living room
There’s always “stuff” going on in residential lending, right? Capital markets folks have noticed that the big banks are re-entering buying jumbo loans from correspondents. BAML’s pass through channel, Wells Fargo, Redwood Trust, Chase, Citi remind us that banks and investors are cash rich and seeking to put assets on their books at the right Continue reading
Saturday, January 23 Jan. 23: Reader’s thoughts on Freddie & Fannie’s pricing, capital, and future; Saturday Spotlight: Truework
While many are watching “Lupin” on Netflix, others are thinking about lending and real estate. Among other things, good and bad, 2020 will go down in the history books for the performance of U.S. residential real estate right up and through December. Very strong home price appreciation was the name of the game. According to Continue reading
Friday, January 22 Jan. 22: MLO jobs; broker, recruiting, HELOC products; Freddie & Fannie compliance reminders; a clever joke
This week Joe Exotic did not receive a presidential pardon, nor did mortgage rates move much versus last week, but there are still over 16 million refinance candidates who meet broad-based eligibility criteria and could also cut their first mortgage rate by 0.75 percent or more, per Black Knight. But last night the world saw, Continue reading
Thursday, January 21 Jan. 21: Retail, Correspondent jobs; performance, non-QM, sales tools; STRATMOR strategy paper; DACA & FHA
“Do y’all remember, before the internet, that people thought the cause of stupidity was the lack of access to information? Yeah, it wasn’t that.” The internet has brought a lot of change to the world, and to our industry. But we don’t need the internet to drive changes, and potential changes, in our biz. HUD Continue reading
Wednesday, January 20 12021: Ops, AE jobs; Sales, leadership, tech, pricing tools; VA, Ginnie, FHA changes incl. URLA update
In his Saturday Morning Cup of Joe, Jeremy Potter quipped, “The word ‘homeowners’ has the word ‘meow’ in it. Good luck unseeing that from now on.” Plenty of people are out there predicting the path of homeowners and homeownership. And there are those that say, “All forecasts are wrong, but some are useful.” It has Continue reading
Tuesday, January 19 Jan. 19: IT, AE jobs; jumbo, origination, productivity tools; thoughts on the CFPB nominee; training & events this week
Sometimes running a mortgage compliance department can seem like this short clip Indiana’s Carol K. sent along. Yet there is value in compliance, and it is good that lenders and servicers are much more cognizant of rules and regulations than we were 12-14 years ago, along with requiring that borrowers have the ability to repay Continue reading
Monday, January 18 Jan. 18: Subservicing, MLO, Ops, private client jobs; recruiting, fee collection, sales, borrower communication products
My high school basketball coach would tell us, “Real power lies in your ability to elevate others.” Managers, and recruiters, continue to be busy bringing on staff, not wanting to “make hay while the sun shines” and snag their piece this market. No one knows, with certainty, rates in the future, so grab talented staff Continue reading
Saturday, January 16 Jan. 16: Letters on FHFA’s execution restrictions; Big bank’s mortgage earnings; vendors fundraising; Saturday Spotlight: ActiveProspect
Who can forget the famous saying attributed to robber Willie Sutton when asked why he robbed banks: “Because that’s where the money is.” Banks are certainly doing okay. Yesterday we had a volley of earnings news, and recently the Federal Deposit Insurance Corporation (FDIC) reported results from commercial banks and savings institutions that reflect improved profitability, Continue reading
Friday, January 15 Jan. 15: Retail, Ops jobs; appraisal, non-QM, jumbo, DPA products; industry weighs in on good Freddie/Fannie news
As Flagstar’s Marcus L. points out, “1999 doesn’t sound like that long ago until you realize that people with a birth year starting with ‘2’ are starting to be old enough to legally drink.” And plenty of them have student debt, the forgiveness of which is now in the press and could very well impact Continue reading
Thursday, January 14 Jan. 14: Warehouse, sales jobs; digital, AMC, pricing tools; comp survey; new cap. markets, broker, corresp. products
With the money I’m saving on “Dry January,” I was able to buy some great edibles at the dispensary yesterday. “Come on, come on, listen to the money talk” sang AC DC. Wells Fargo’s stock price is up 60 percent since late Halloween… that’s money! Some are curious about bitcoin, with proponents saying it is Continue reading
Wednesday, January 13 Jan. 13: Retail, recruiting jobs; servicing, appraisal, income calculation tools; upcoming virtual training; MSA FAQs
There are plenty of MLOs (mortgage loan originators) out there very pleased with their earnings for 2020. In a non-random sample, several CEOs with whom I spoke had retail LOs earn more than a million clams, all in a compliant manner. It is good to remember that some of the changes made as a result Continue reading
Tuesday, January 12 Jan. 12: Sales, MLO jobs; home ownership, non-QM, PPE, sales tools; conventional conforming updates around our biz
Nearly two weeks into 2021 already? I was just getting used to saying “2020.” Now I have to add a syllable every time. “One.” There’s continued talk of companies like Finance of America, loanDepot, SoFi, and Homepoint going public, and if Caliber and AmeriHome will after delaying things in October. Many experts are predicting another Continue reading
Monday, January 11 1.11: Sales management, MLO jobs; recruiting, VA IRRRL, non-QM products; litigation is expensive; HMDA season has begun!
Of course some found humor in last week’s riot in Washington DC. (“In light of recent events, Mexico has decided that it will pay for the wall after all. And Canada wants one as well.”) For others, as heard in these messages from Republican Arnold Schwarzenegger and Colin Powell, there is nothing to laugh about. Continue reading
Saturday, January 9 Jan. 9: Letters from readers on IPOs (next up, HomePoint?), taxes, non-QM; Saturday Spotlight: Homespire Mortgage
This one is making the rounds out there. “Due to travel restrictions this year, the United States had to organize coups at home.” Yes, many of us are staying close to home, and working there as well. But I don’t understand it. No matter how much I drink hot cocoa, play on my phone, refresh Continue reading
Friday, January 8 Jan. 8: Reverse, MLO, Ops jobs; social media, efficiency, CRA, CRM products; broker training; neobank closures & SoFi IPO
While the industry watches the personnel changes at Arch and National MI, I received several texts and emails pleading, “I’d like to cancel my subscription to 2021. I’ve experienced the free 7-day trial and I’m not interested.” This, after photos of “Chief Running Bull” at the Vice President’s desk on Wednesday circulated, with the caption, Continue reading
Thursday, January 7 Jan. 7: Compliance, MLO, AE, Ops jobs; appraisal, profitability tools; upcoming events; rates creep higher: why?
Some will say that the world’s most anticipated palindrome is “1-20-21”. Others will say that Inauguration Day spells the end of personal freedom in the United States. In our business, lenders everywhere have their eyes on the horizon. One grizzled industry “Eeyore” emailed, “Every time I see headlines and reporting about giddy mortgage profitability and Continue reading
Wednesday, January 6 Jan. 6: DTC, correspondent, MLO jobs; staffing, compliance, MI products; Agency forbearance uncertainty: questions remain
Would you rather loan $200,000 to a Danish buntmager (furrier) or the United States Government? Well, while the industry is digesting the news that Guaranteed Rate, advised by Sidley Austin, LLP, has entered into a definitive agreement to acquire Stearns Holdings, LLC, from funds managed by Blackstone, and before you answer this pop quiz on Continue reading
Tuesday, January 5 Jan. 5: Tech & sales jobs; sales, investor, workflow products; training & webinars from the comfort of your BarcaLounger
2021: Fifty years since the release of Led Zeppelin 4 (think Stairway to Heaven). In 1971 there were 208 million people living in the United States. Now there are approximately 330 million of us. The U.S. Census Bureau released its once-a-decade Population Estimates (2020) with the Vintage 2020 estimates being based on the 2010 Census Continue reading
Monday, January 4 Jan. 4: MLO, Ops jobs; COO seeking role; subservicer, URLA, VA IRRRL, HELOC, MSR products; non-QM lender rebrand
Here we are on the first business day of 2021, the year of the movie Mad Max 2. (It is so much easier saying “2020” than “2021,” right?) Last year, as one industry vet wrote me, was “The Year Of The Genius” in mortgage banking. It seems that everyone is talking about record-breaking volume, margin, Continue reading
Saturday, January 2 Jan. 2: Population stats worth a skim; Freddie and Fannie, still doing deals while others debate their future
Remember that ridiculous misconception that people age 24-39 (this year) were not interested in buying houses, and couldn’t afford to buy them because they were buying too much avocado toast? That’s long gone, and we are reminded every day that housing is a matter of supply and demand: lots of people and not enough single-family Continue reading

2020 (309)

Thursday, December 31 Dec. 31: MLO, Ops jobs; lender wanted; Small business grant; ignore the CFPB at your own peril
I still don’t know what I’m wearing to the living room on New Year’s Eve. Heck, I may not even go. Wouldn’t it be nice to be on a cruise? Ever heard of the SS Warrimoo? Me neither until a few trivia-loving readers sent me emails saying that the ship reportedly once navigated to a Continue reading
Wednesday, December 30 Dec. 30: Credit/risk, MLO, Ops jobs; Agency-approved lender wanted; sales, rental products; primer on secondary marketing for MLOs
Loan originators in our business see potential borrowers whose monthly mortgage payments would be less than their rent payments but don’t qualify for credit or income reasons. The U.S. Census Bureau published some findings on workers being hardest hit by the COVID-19 pandemic. Self-employed workers are more likely to face economic hardships in the states Continue reading
Tuesday, December 29 Dec. 29: Recruiter job; HELOC, compensation, TPO products; New York did what? Agency news; URLA best practices paper
With the passing of Pierre Cardin this morning, does it mean that bottle of cologne (circa 1978) I have in the attic became a collector’s item? The phallic shape of that bottle is certainly not boring. And while residential lenders continue to help millions of clients, politics has been anything but boring in recent months. Continue reading
Monday, December 28 Dec. 28: Non-QM, LOS Admin, Ops, MLO, IT jobs; broker, sales tools; QC & compliance still front & center
Congress and the press have been talking about a second stimulus plan since the summer. The bill signed by President Trump last night keeps the U.S. Government running through next September, including USDA housing programs. For ordinary citizens we hope that it is not too little, too late. Did you know that, driven by stock Continue reading
Saturday, December 26 Dec. 26: Residential lending vendors not sitting still: recent M&A, strategic partnerships, new products
Computer security at home can be tricky. As an example, for security reasons, change your dog’s name every three months to match your new password. Security for vendors supplying services is critical, as is the ability for one vendor to “talk” to other vendors being used by the lender. Vendors are also concerned with mortgage Continue reading
Thursday, December 24 Christmas Eve: Bus. Dev., MLO, AE jobs; Verification tool; disaster news; what is “Build for Rent”?
New Homes Sales tumbled over 11 percent in November. Does that mean no one wants new homes, they’re over-priced, or there aren’t any to buy? One has to look at statistics critically. Housing stats tell us that bigger isn’t always better. Per the Census Bureau, the average square footage of new homes sold in the Continue reading
Wednesday, December 23 Dec. 23: Ops, MLO, bank sales management jobs; QC report, retention, cap. markets tools; jumbo & non-QM tidbits
My cat Myrtle (Myrtlus Domesticus) doesn’t have much in the way of material possessions. Need to get rid of unwanted junk during the holidays? Put it in Amazon boxes and leave them on your front porch. The holidays are a time of a lot of awkward meetings, especially your girlfriend’s parents. Here is an entertaining 3-minute Continue reading
Tuesday, December 22 Dec. 22: Correspondent, MLO jobs; digital, trailing doc, social media tools; FHA’s foreclosure & eviction moratorium extension
I hope that everyone had a happy solstice yesterday, with a few folks writing to suggest that “It is the shortest day, of the longest year, of our lives.” Given my background in capital markets I am regularly asked how some lenders offer lower rates than others. Freddie Mac’s survey has continues to point to Continue reading
Monday, December 21 Dec. 21: VP of non-QM, credit/diligence, Ops, MLO, AE jobs; National MI integration; shifting borrower profile
As we watch the second largest stimulus bill in history move toward passage, greetings from the Winter Solstice, the official start of winter and the day with the fewest hours of sunlight in the year in the Northern Hemisphere. More sunlight going forward! On a smaller scale, I love it when your alarm goes off Continue reading
Saturday, December 19 Dec. 19: Non-QM and Agency trends in the secondary market; letter on borrower communication
Numbers are amazing things. What would we do without them? On the small scale, there are people who will swear that they’ve never touched the 4, 5, 6, 7, 8, or 9 keys on the microwave oven control panel. On a large scale, out of the trillions in mortgage loans outstanding, a very large share Continue reading
Friday, December 18 Dec. 18: Sec. Marketing, Ops, branch manager, LO jobs; CFO role wanted; First American rebrand; Rural, FHA, VA program changes
I don’t know what’s longer, a “regular” minute, “microwave” minute, or a “treadmill” minute. Speaking of time, if someone sends you an email saying, “The noon meeting has been moved forward two hours,” how do you read that, 10AM to 2PM? The answer shows which of these two ways you perceive time. Time perception really Continue reading
Thursday, December 17 Dec. 17: MLO, Ops jobs; origination shell wanted; CRM, POS, retention, jumbo loan, capital markets products; how news moves rates
Who would’ve thought that one day we’d be smoking weed at a family gathering, but the illegal part would be the family gathering? For most of us, family matters are critical. The year 2030, 10 years from now, marks an important demographic turning point in U.S. history according to the U.S. Census Bureau’s National Population Continue reading
Wednesday, December 16 Dec. 16: Cap. mkts., Ops, MLO jobs; shell wanted; broker, payroll, ECOA tools; investors’ Agency changes
While virtual learning students bemoan the elimination of snow days, the U.S. Census Bureau recently came out with dozens of holiday-related facts and figures from its collection of statistics. For example, the U.S. imported $484.9 million of Christmas tree lights in 2019, with Cambodia leading the way at 47.3% of those total U.S. imports. That Continue reading
Tuesday, December 15 Dec. 15: AE, MLO jobs; shell wanted; fulfillment, doc, servicing products; training this week; few reasons for rates to move
“We were so poor when I was a kid that we couldn’t afford tinsel. We had to wait for Grandpa to sneeze.” At the opposite end of the economic spectrum, these NBA players had some fun with Jingle Bells. Athletes like NBA players file taxes not only in their home state, but they are also Continue reading
Monday, December 14 Dec. 14: Sales jobs; Lending shell wanted; Non-QM, VA IRRRL products; Investor’s Agency changes
With the snow expected in the Northeast this week, countless households washed loads of pajamas yesterday so that they could have clean work clothes this week. Y’all think 2020 is bad? Just wait until it turns 21 and starts drinking. Yet 2020 has been good for rates. The Fed has tamped down Treasury yields since Continue reading
Saturday, December 12 12-12-20-20: LIBOR exit continues; snapshot of resi lending & borrowers; books for the holidays for staff & family
Did you know that 87 percent of gym members don’t even know their gym is closed? Lou Friedmann from Illinois’ Interfirst Mortgage reminded me that today is National Gingerbread House Day. It could be the last thing that Congress agreed upon. Some in the industry fear the income being earned by LOs and by lenders Continue reading
Friday, December 11 Dec. 11: Management jobs in credit, sales; MI, post-closing, MBS pooling tools; Freddie, Fannie, and the Supreme Court
While here in Hawai’i, if anyone receives a message from me about canned meat, don’t open it. It’s Spam! With many sticking close to home, holiday traditions have renewed importance. Putting up the Christmas tree results in sap on your hands? Well, here’s how you get it off. Shelter in place like a boss! The Continue reading
Thursday, December 10 Dec. 10: Sec. Mktg., MLO, Ops jobs; broker, retention products; borrower satisfaction; primer on how news impacts rates
“My ability to remember song lyrics from the 80s far exceeds my ability to remember why I walked into the kitchen.” The Baby Boomers are certainly riding the appreciation wave in housing across the nation. (Speaking of waves, did you know that Hawai’i is last among the states in boat registrations?) And given the rising Continue reading
Wednesday, December 9 Dec. 9: AE, MLO, Ops jobs; VA IRRRL, non-Agency, doc products; FHA temporary waiver, Ginnie eligibility, VA forbearance news
I’m gonna ask my Mom if that offer to “slap me into next year” is still on the table. It’s great to be a lender in 2020, and should be into 2021, but I received this note. “Rob, industry vets keep comparing 2020 to 2003 in terms of volume. Do you remember what happened in Continue reading
Tuesday, December 8 Dec. 8: Tech, MLO jobs; Pooling, retention, VOA, comp products; training this week; small lenders, broker dealers, and Rule 19b
Huh? Talk of a government shut down? Again? Are you the typical lender off to a record December, after setting records in November, October, September…? As attorney Brian Levy points out, “Mortgage bankers would be wise to skip the private jets and courtside seats and put a bunch of those fat profits away for a Continue reading
Monday, December 7 Dec. 7: Accounting, MLO, AE, Ops jobs; private lending, retention, referral tools; why rates have crept higher
Large-scale mortgage in-person conference activity, and official mortgage business travel, appears to be shut down until at least the summer of 2021. A well-known vendor’s head of sales wrote to me, saying, “I miss the little sandwiches, cut into triangles, held together with toothpicks with brightly colored cellophane.” On a more serious note, in response Continue reading
Saturday, December 5 Dec. 5: Letters regarding appraisal transfers, artificial intelligence, and efficiency; Saturday Spotlight: Maxwell
In late breaking news, yesterday morning I’d found that the garbage man had left an Alcoholics Anonymous (AA) flyer on my recycling can. Come on vaccine! The mortgage industry is well versed in the alphabet and acronyms, too numerous to list here, including HUD, the CFPB, and the DOJ, and lenders and servicers are keenly Continue reading
Friday, December 4 Dec. 4: Servicing, MLO, Ops jobs; cybersecurity, VA IRRRL, non-QM tools; events & training; odds & ends around the biz
Have you ever wondered why so many lottery winners go broke? If they had any financial sense, they wouldn’t have bought a lottery ticket in the first place. (By the way, aloha from Hawai’i! I’ve been saving my vacation pennies for nearly nine months, and this commentary comes to you from Maui. Yes, the alphabet Continue reading
Thursday, December 3 Dec. 3: AE, MLO, Solution Engineer jobs; capital markets best ex, sales tools; Non-QM biz update; economic rebound losing steam?
With the COVID pandemic, it doesn’t quite seem like we’re in the middle of pro football season, although apparently the folks in Jacksonville will do anything for their team. Speaking of which, I decided to finally get a COVID test, thinking it was a nasal swab. Imagine my surprise when I pulled into the building’s Continue reading
Wednesday, December 2 Dec. 2: MLO jobs; docs, accounting, jumbo, appraisal, customer service products; rates moving with stimulus rumors
Fun with numbers for Hump Day! Numbers were behind HP’s decision to leave California for Houston. Thank you to Len T. who sent along a great chart of the names of big numbers, suitable for the kids and anyone watching U.S. debt. Thank you to Brian B. for sending along the news that New York Continue reading
Tuesday, December 1 Dec. 1: AE, LO, broker jobs; bank statement, retention, subservicer review products; upcoming webinars, many this week
In equity news, despite some predictions to the contrary, the market had its best month since 1987. This, in the face of renewed layoffs and economic scaring in the service sector for many lower paying jobs and small businesses. Fixed income… Do you like rates where they are? (The average 10-year yield during the month Continue reading
Monday, November 30 Nov. 30: Production, Ops jobs; VA, VA IRRRL, non-QM products; USDA, FHA, VA stats worth a skim: programs evolving
Thank you to Tracy C. sent, “An unemployed court jester is nobody’s fool.” There are millions of unemployed U.S. citizens, and the CFPB, HUD, and other federal agencies have partnered to encourage homeowners who are struggling financially, unemployed or not, as a result of the COVID-19 National Emergency to take control of their mortgage loans Continue reading
Saturday, November 28 Nov. 28: Letters about improving processing and AMCs transferring appraisals; SOFR, LIBOR, and ARM news
2020 isn’t over yet… we still have December. Tiger King, global pandemic, a U.S. president who says that the election isn’t over, fires and floods, and now minks rising from graves in Denmark. Fortunately talk of a fast release for the GSEs seems to be diminishing. No one saw the combination of all of this Continue reading
Friday, November 27 Nov. 27: High level Ops, Implementation jobs; demographics for MLOs on who is locking and who isn’t, and why
Left over pumpkin pie for breakfast today? Have you begun your company’s Holiday Cookbook yet? (Help corporate culture by sending an email, ad a recipe, send it on to someone else working from home, keep it going.) Remember when “flexible” working arrangements made the news? For example, flexible work arrangements (think gig employment, independent contractors, Continue reading
Wednesday, November 25 Nov. 25: AE, MLO, Ops jobs; doc, sales, broker tools; disaster updates; investors react to Freddie & Fannie changes
Second only to the excitement of the new phone book coming, the new conforming loan limit is $548,250 for 2021, up from $510,400 in 2020, and some investors reacted. (More below.) The limit will impact home buyers in a positive way. The spread of COVID-19 (based on 2 things, how dense the population is, and Continue reading
Tuesday, November 24 Nov. 24: CTO, MLO, Ops jobs across the country; customer service, eSignature tools; MLO yield curve primer
Remember when you drove to work every day? For non-mortgage kicks, here’s a site where you can take a virtual drive through dozens of cities around the world, setting the speed of the vehicle, street noise, and local radio station. (Just click on the city in the list on the right to see what that city Continue reading
Monday, November 23 Nov. 23: Ops Manager, AE, MLO jobs; appraisal, sales, relationship products; debating Freddie & Fannie’s future
Sunday morning I was trying to explain to my cat Myrtle how the total cost of rescuing a stranded Matt Damon in all of his films (think Saving Private Ryan, Interstellar, The Martian) was an estimated $900 billion. She was not impressed, seeing as a) the scent of turkey in the refrigerator that is more Continue reading
Saturday, November 21 Nov. 21: Vendors rolling out new technology, engaged in M&A and partnering, increasing customer service
Earlier this week I wrote about technology, and that a few old wooden crank telephones were circulating in the family. The note prompted all kinds of stories about the first time anyone saw a fax machine, their framed HP-12C on the wall, and the development of the internet. The machines keep improving and the programming Continue reading
Friday, November 20 Nov. 20: Product Mgt., MLO, Ops jobs across the country; VA IRRRL, training events; mortgage servicing news
Many years ago I was hanging out with George Clooney and made the mistake of telling him, “Look, you’ll never amount to much as an actor. You’d be much better off sending out a free daily commentary.” He thought differently and it led to a rift between us, and we haven’t spoken since. Looking back, Continue reading
Thursday, November 19 Nov. 19: Sales, Ops, QC jobs; retention, VOI, broker products; Ops & processing changes
“Life is like a helicopter. I don’t know how to operate a helicopter.” Remember how exciting it was when the technology of spellcheck came along? (People handwrite “congrats” on cards because they can’t spell “congratjulashons.”) Lenders alternate between being too busy or too poor to roll out new technology, but somehow they do. They have Continue reading
Wednesday, November 18 Nov. 18: AE, Ops, LO jobs; VOE, cash flow, remote work tools; companies performance mimicking industry’s
If you had 20 million close friends, and each one owed $500k on their house, the total would be $10 trillion of mortgage debt. Coincidentally, that is how much mortgage debt is out there in the United States. (Doesn’t every MLO wish all that debt was at 4 percent!) I love headlines like, “National Association Continue reading
Tuesday, November 17 Nov. 17: AE, MLO jobs; income, workflow, customer service tools; Agency personnel changes regardless of salaries
Predictions? Show me one person, a year ago, who forecast what has happened (so far) this year! (I went to see a psychic the other day. I knocked on the door and she yelled, “Who’s there?” so I left.) Lenders do their thing, regardless of what the “experts” predict. And there is certainly good news Continue reading
Monday, November 16 Nov. 16: CFO, MLO jobs; customer service, QC, marketing, servicing products; events & training from your living room
Here’s a good one. “I’m giving up drinking until Christmas. Sorry, wrong punctuation. I’m giving up. Drinking until Christmas.” Did you know that 1/20/2021 (Inauguration Day) is a palindrome!? Or do you know why millions of borrowers haven’t refinanced? How about, “They have no idea what their rate is.”? Renters, which still make up a Continue reading
Saturday, November 14 Nov. 14: Appraisal fee changes; Credit Risk Transfers help rate sheet pricing: current thinking & examples of secondary deals
We have twelve days until Thanksgiving, first celebrated in the fall of 1621 when the Pilgrims gathered, back when we were allowed to gather, to hold a three-day feast celebrating a bountiful harvest. But it did not become a national holiday until 1863 when President Abraham Lincoln proclaimed the last Thursday of November as a Continue reading
Friday, November 13 Nov. 13: CFO position wanted, MLO, cap. mkts. jobs; private money, marketing products; private MI company updates
Welcome to the first Friday the 13th of 2020 since March. What an eight months! Cindy E. writes, “The longer I stay at home, the more homeless I look.” I start fielding emails every year around this time about the following year’s conforming loan limits and the impact on home ownership. It was a bigger Continue reading
Thursday, November 12 Nov. 12: MLO, Ops jobs; Marketing, non-QM, jumbo products; company news re: lenders, investors, & originators
Are the election results under control? Thank you to Hawai’i’s Joe G. who sent along this site where the odds of who the next president will be are posted; you can buy shares in your favorite! Is COVID under control? In some parts of the nation, it is as if there is no pandemic at Continue reading
Wednesday, November 11 Veteran’s Day: Correspondent, MLO jobs; transitions rampant; broker, AMC, marketing products; Freddie & Fannie in the news
The 11th hour of the 11th day of the 11th month… Do the veterans in your life a favor by forwarding them this list of discounts around the nation. Speaking of the military, for those of you who say that you never learn anything from this daily commentary, did you know that George Washington is Continue reading
Tuesday, November 10 Nov. 10: Sales mgt., MLO jobs; digital, marketing, correspondent, ROI tools; disaster updates; collateral valuation trends
The headlines continue to blare and attract attention. HUD Secretary Ben Carson tested positive for coronavirus? True. Some foreign leaders not congratulating Joe Biden? Correct. President Trump fired the Secretary of Defense Mark Esper? Yup. In the builder and demographic world, replacing the term “Baby Boomer” with “Baby Chaser” is attracting attention. Labeling generations has Continue reading
Monday, November 9 Nov. 9: MLO, Correspondent, Ops jobs; recruiting, non-QM, sales, servicing tools; credit & income shifts; vaccine news pushing rates
First Sean Connery, and now Alex Trebek! Their time together on Jeopardy is legendary. (“Please refrain from using ethnic slurs!”) The last time I checked, “ethnic” is not a bad word, and in fact is often celebrated. How many of you are checking out Hispanic, Black, or Asian American clubs at local colleges and universities Continue reading
Saturday, November 7 Nov. 7: Vendor news; letter about IMBs and M&A; support your state organization; Saturday Spotlight: DocProbe
Jokes and memes are flying. Here’s one for you. “I grew up in Russia. We had the results long before the polls even opened.” Or “Did you hear that the NFL announced a team name change? The Pittsburgh Stealers!” On a serious note, what happens if an incumbent president doesn’t concede? It is being discussed, Continue reading
Friday, November 6 Nov. 6: MLO & Ops jobs; rental, warranty, processing tools; USDA, FHA, VA, Ginnie developments while votes are counted
Eyes are focused on U.S. vote counting, but winter is coming in the Northern Hemisphere, and what impact will that have on outdoor dining, and in turn, restaurants and their employees? For many, working in a restaurant is a starter job and a way to make some money. For loan officers who are making plenty Continue reading
Thursday, November 5 Nov. 5: QC, AE, MLO, Ops jobs; VOE, database, broker tools; events; disaster updates; political uncertainty moving rates
With Nevada’s 6 electoral college votes, nothing says 2020 like the fate of the nation resting in the hands of Reno. When sending out a daily commentary grows wearisome for me, I may shift gears and open up a rehab center in Oregon. Why Oregon? The approval this week of shrooms and the decriminalization of Continue reading
Wednesday, November 4 Nov. 4: AE jobs; vendor, warehouse, broker products; company-sponsored training; climate change impacting servicing values?
We don’t know much so far about the election results besides the pollsters being, once again, wrong on a national scale, and (so far) yesterday being mostly gratifying for Republicans. I have one question: After this quarantine… Will the producers of My 600-Lb. Life just find me, or do I find them? My weight isn’t Continue reading
Tuesday, November 3 Nov. 3: Marketing, head of production jobs; training, automation, LOS products; company specific industry snapshots
What are companies doing with the 2020 money they were going to spend on travel and entertainment? Saving it for the second half of 2021? Last week I paid a visit to Southern California. (The airports were uncrowded, masks universal.) I guess that I look pretty sketchy because I’ve lost track of the number of Continue reading
Monday, November 2 Nov. 2: Ops & sales jobs; database, servicing, non-QM, income analysis products; upcoming training & events
Some would say that the year is either flying by, others would suggest it is slowly bumping along the bottom. Either way, here we are in November, and turkey farmers and butchers are wondering how to adapt their products to proposed smaller family gatherings where 25-pound turkeys aren’t needed. Turkey thighs or breasts only? In Continue reading
Saturday, October 31 Halloween: Now is the time to help your national, state, & local organization; Housing policy primer
Neighbors upset at pole dancing skeletons in Houston? Yup. And now for something completely different, overseas! Plenty of mortgage brokers read this commentary, but the self-proclaimed “world’s leading high-net-worth mortgage broker” Enness Global, has pulled together 13 Halloween homes for those looking to buy at the top-end of the global housing market. Good luck pronouncing Continue reading
Friday, October 30 Oct. 30: Tech, Ops, MLO jobs; VOE, broker, non-QM, social media tools; 1.5 percent security takes off
Happy X/XXX/XX if you are a Roman. Rome certainly had its share of slaves, and the existence of slavery in one’s family has certainly caused consternation in the present day as buildings are renamed and statues are torn down. Companies that made their fortunes on slavery, like New York Life Insurance, are raising eyebrows. You Continue reading
Thursday, October 29 Oct. 29: Sales & Ops jobs; Cap. mkts., LO comp survey, fulfillment, retention tools; M&A advice; Agency-related changes
This weekend we receive an extra hour of 2020. If there was ever a reason to end the time change, this certainly is it! Markets don’t like uncertainty, and nothing about 2020 has been certain (although this morning we learned two certainties: Fannie Mae’s net income was $4.2 billion for the third quarter of 2020, Continue reading
Wednesday, October 28 Oct. 28: Credit manager, sales, Ops jobs; marketing, broker, contactless closing products; investors & adverse mkt. price moves
Surely not everyone was kung fu fighting, right? I hope that we don’t see any fighting after November 3. I love to ask people, who think we’re going to see volatility next week, a) why, and b) what kind? We could very well see no huge jumps of any sort. From a capital markets perspective, Continue reading
Tuesday, October 27 Oct. 27: Encompass, correspondent, MLO jobs; pricing, subservicing, marketing tools; California investor disaster news
Etch A Sketch is buying Rubik’s Cube? Who can keep up? What does a lender do when they’ve hit operational capacity, and don’t want to disappoint LOs with 60-day purchase turn times and refis taking 90? Increase the margin and make the price less attractive. Nearly every business does the same thing, including home builders. Continue reading
Monday, October 26 Oct. 26: Mgt., AE, Ops jobs; Retention, AI, non-QM, accounting products; Southeast disaster updates
The most reliable way to forecast the future is to try to understand the present. Vendor M&A is rampant (the latest being First American acquiring ServiceMac). Although there is no way that the “experts” could have predicted the combination of the economy, the election, the pandemic, and all of their iterations, loan originators and real Continue reading
Saturday, October 24 Oct. 24: LO comp & MSAs; LIBOR to SOFR investor changes; vendor news; Saturday Spotlight: Orion Lending
Busker: a person who performs music or other entertainment in public places for monetary donations. There was the Scottish busker who lost his guitar, only to have Jack White pay for a replacement. U2 busking in disguise with Jimmy Fallon. They take cash & coins. This year’s World Series does not accept either! The Texas Continue reading
Friday, October 23 Oct. 23: Cap. mkts., MLO, sales jobs; marketing, rep & warrant, hedging products; deep dive on rates & MBA forecast
Let me state for the record that I am not a robot, although I often seem to be asked to check a box on certain websites by… robots. This article, however, sure grabbed my attention, as it was supposedly written by a robot that learned to read from the internet. Does anyone see the madness Continue reading
Thursday, October 22 Oct. 22: Bank, construction, Ops jobs: 203(k), credit, doc tools; IPOs, debt offerings, lenders & investors making moves
40 million people have already cast their vote in the election is unprecedented. I can hardly wait to return to “precedented times,” “unprecedented” favored to win “Word of the Year” in 2020. Even the colors are unprecedented. When I was a kid, people would paint their room or house white. Maybe green, or a bold Continue reading
Wednesday, October 21 Oct. 21: Sales mgt., MLO jobs; shell available; servicing, marketing, automation tools; temporary relief from the CFPB
Want some guidance? “If you get a loan at a bank, you’ll be paying it back for 30 years. If you rob a bank, you’ll be out in 10 years. Follow me for more financial advice!” Plenty of MLOs will need financial advice, given their continued record production months and quarters. Ask anyone who had Continue reading
Tuesday, October 20 Oct. 20: Ops, MLO jobs; training, servicing, tech, broker tools; events & training; Freddie & Fannie: changes keep flowing
For all you Romans out there, happy X/XX/XX. As we sail through October, are these the best quarters to be an originator, or a lender, ever? Yes. If you believe Fannie Mae, annual mortgage originations are likely to top $4.1 trillion for the first time ever, as there will be more refinancings this year ($2.6 Continue reading
Monday, October 19 Oct. 19: Compliance, AE, MLO jobs; marketing, broker, servicing products; online disclosure survey & chatter
Fifteen days until the election! How many days would it take you, or the company that employs you, to save up $11 million? In my discussions with CEOs, they are more concerned about how the election may impact the future regulatory environment than interest rates. I mention that because Florida’s Ocwen Financial Corp. (“New Co.” Continue reading
Saturday, October 17 Oct. 17: Vendors partnering, raising money, introducing new products; Saturday Spotlight: Service 1st
Remember last Halloween when the Accounting Department, decked out like a M*A*S*H unit, trounced the Shipping Department, done up like The Sopranos, to claim the company Halloween prize? That won’t be happening this year but you should know that Halloween dates back 2,000 years to the Celtic festival of Samhain, though what was an ancient Continue reading
Friday, October 16 Oct. 16: JV, MLO, Ops jobs; MSR valuation, training, non-QM, retention, tax tools; new jumbo wholesaler; 2006 vs. 2019: nothing is forever
What’s more important, spending money on the latest iPhone, or taking care of your body? Every Thursday we receive Initial Jobless Claims statistics, and usually on the first Friday of the month we receive a set of employment data. But who makes up these numbers? Per the most recent U.S. Census Bureau “County Business Patterns,” Continue reading
Thursday, October 15 Oct. 15: MLO, Ops jobs; shell wanted; broker, retention, doc products; investors react to USDA, FHA, VA changes
When I grow up, I want to live in… Estonia? If you need a break, and are thinking about leaving the U.S., take a gander at some highly-ranked work from home places to live besides the United States. Election Night? Forget it. It could be “Election Month” or “Election Months” if runoffs are involved or Continue reading
Wednesday, October 14 Oct. 14: Controller, Ops, MLO jobs; CFO for hire; appraisal, broker tools; Treasury auction primer: why lenders should care
I really wanted to mix things up today so decided to send this commentary out from the other side of the dining room table this morning. Yippee! Speaking of mixing things up, usually I maintain a train of thought through my opening paragraph, putting similar topics together. Not today, so fasten your seatbelts for truth Continue reading
Tuesday, October 13 Oct. 13: MLO, two capital markets jobs; credit, sales, subservicing, fulfillment products; webinars & training of all sorts
If I were going to open up a store for eyeglasses, I’d make the sign in front of the building blurry. Lenders now don’t have to be so clever, as we’re in the midst of about the eighth “once-in-a-lifetime” mortgage market in the last thirty years. Remember when the industry feared that strategic partnerships, MSAs, Continue reading
Monday, October 12 Oct. 12: Sales, Ops jobs; ECOA, recruiting, onboarding tools; non-QM, servicing webinars; Ginnie & FHA wide-sweeping changes
After I sent the commentary out on Saturday, 10/10/20, a few folks reminded me that Saturday’s date, in Roman Numerals, was X/X/XX. Ancient curiosities aside, we were doing some home renovations, and, incredibly, when we knocked down a wall, we found a secret, fully furnished room!! And then I remembered, we live in a duplex. Continue reading
Saturday, October 10 Oct. 10: Agency CRT primer and news; Fed President & economic conditions; Saturday Spotlight: Evergreen Home Loans
I sent my commentary out a little early this morning. I was up before my usual time dealing with someone who had pulled into my driveway instead of the 24-Hour Check Cashing place next door. It’ll make for a long day. Plenty of originators are working long hours, too. Individual mortgage loan originators (MLOs), whether Continue reading
Friday, October 9 Oct. 9: QC, Ops, non-QM AE jobs; real estate agent, pooling, CRM, processing tools; Galton Funding sold; CFPB, RESPA, MSA news
Eddie Van Halen advised, “You only have twelve notes. Do what you want with them.” Twelve is probably the number of undecided voters in the U.S. at this point. Political analysts and rumor mongers, besides wondering why Ivanka Trump, Jared Kushner, and Bill Barr have slid out of the public eye, suggest that President Trump Continue reading
Thursday, October 8 Oct. 8: Ops Mgr., MLO, Ops jobs; Capital markets products; retention, direct mail, VOE tools
Illinois, Alaska, and California. This morning’s drama revolves around the next presidential debate (virtual or not) but folklore tells us that it was on this date in 1871 Mrs. O’Leary’s cow knocked over a lantern and thus started The Great Chicago Fire (3 square miles destroyed, 100,000 homeless, 200 died; for comparison, California, home of Continue reading
Wednesday, October 7 Oct. 7: CU jobs; VOE, valuation, accounting CRA eligibility products; training & events from your telephone
You have a couple workdays under your belt this week, so let’s take a one paragraph break from mortgage stuff. Pumpkin patches are here, and every parent worth their salt tells kids that unpurchased pumpkins grow into Christmas trees in two months. In between, Thanksgiving will be here before you know it, and with it, Continue reading
Tuesday, October 6 Oct. 6: IT & sales management, Ops jobs; operations, forbearance products; training webinars; women leaving workforce
Yes, here we are at the 10th month of the year. You know, “Dec” ember. Oh, this is “Oct” ober. There’s a reason. The numerical names of months date back to the time when in the Ancient Rome the year began in March, so September was really the 7th month, October the 8th, and so Continue reading
Monday, October 5 Oct. 5: CD, sales, innovation jobs; CEO role wanted; webinars; compliance, database tools; disaster updates
Are you sure that the underwriter or processor working from home isn’t working simultaneously, on a different laptop, for another company besides yours? My guess is that it would be exhausting, unethical, and would never happen. Except an owner of a small mortgage bank in Wisconsin wrote to me Saturday saying they’d just fired someone Continue reading
Saturday, October 3 Oct. 3: Rocket, UWM, Guild, AmeriHome, Caliber… don’t be the last on your block to go public; Saturday Spotlight: Planet Home Lending
Remember Jack and Rose running through the engine room of the Titanic? Nearly every residential lender is going balls to the wall (or balls out) and continuing to set production records, as are MLOs, but it’s a good idea to reward the workers under the water line. I received this note from a successful loan Continue reading
Friday, October 2 Oct. 2: Controller, Ops, MLO jobs; training, SPOC, non-QM, MERS products; Bonds little changed despite uncertainty
We’re finally in October, which means one thing is certain: that all the cobwebs and dust in my house just became Halloween decorations. Markets don’t like uncertainty, but something else is certain: we’re in the month before the election that the press has been talking about for nearly four years. With the positive COVID-19 test, Continue reading
Thursday, October 1 Oct. 1: Correspondent, wholesale, retail jobs; processing, marketing anti-fraud tools; NextGen homebuyer report; eClose usage stats
Fourth quarter already!? Was the third quarter of 2020 the best quarter ever to be in residential lending? Will the fourth quarter beat it? While much of our economy unfortunately languishes, “record breaking” has surpassed “unprecedented” on mortgage Zoom calls. LOs are “tonning it,” pipelines are full, margins plump. If you’re not making money in Continue reading
Wednesday, September 30 Sep. 30: Servicing, MLO, Ops jobs; compliance, jumbo products; webinars & training; a look at housing & jobs & stable rates
Welcome to the start of Fat Bear Week in Alaska. (There’s even a Park Service bracket with the favorites… expect upsets!) It’s probably easier to forecast the fattest bear than it is to predict forbearance trends, although MCT’s “MSR Forbearance in 2020: Challenges and Recommendations addresses the “here and now” about how market volatility, forbearance, Continue reading
Tuesday, September 29 Sep. 29: AE, MLO, Ops jobs coast to coast; re-branding, finance, digital tools; STRATMOR industry observations
Here’s a brief video refresher of our tax code if anyone needs it. If eight months ago someone had told you to pick a country where there is a mudslinging election for the highest office in the land, the reliability of the post office would be called into question by the leader of the nation Continue reading
Monday, September 28 Sep. 28: Sales, ops jobs; hiring process analysis; sales, marketing, fee collection, margin tools; flood insurance questions
Thank you to those who wrote commenting about the Yelp study showing that 164,000 businesses across our nation have closed since March. “Bouncing back” quickly from that is not likely, and at some level it impacts past and future borrowers, and meeting ATR requirements to fund loans. I was telling my cat Myrtle, “Teamwork makes Continue reading
Saturday, September 26 Sep. 26: Vendors partnering, merging, being acquired, offering new products; Saturday Spotlight: Assurance Financial
I try not to repeat information, but I felt that this study, which I had yesterday in the Capital Markets section of the Commentary, warranted it given that it relates to possible changes in the credit quality of potential, and existing, borrowers. Yelp tells us that as of August 31, 163,735 businesses in the United Continue reading
Friday, September 25 Sep. 25: Sales & ops jobs; marketing & credit products; cybercrime update; why MLOs should watch stimulus quagmire
TGIF! Do Fridays mean as much as they did up until mid-March? Yes! Well, maybe. How about some non-mortgage stuff? There is, after all, life outside of RESPA. It’s crazy at the nursery via webcam at the Warrior Canine Puppy Live (although sometimes they let them roam outside). How about the oldest recording of a Continue reading
Thursday, September 24 Sep. 24: Ops, LO, AE jobs; CFO roll wanted; broker, construction, MSR management products; using digital for customer service
I need to make a dart board for the wall behind me for Zoom calls that has “rates up” and “rates down” and “rates the same” on it. Until we see actual year-over-year inflation above 2 percent, the Federal Reserve will hold short-term rates near 0 percent. Any questions? The Fed believes it will take Continue reading
Wednesday, September 23 Sep. 23: Ops, sales jobs; marketing, AMC, subservicer products; company webinars; GSE changes & thoughts on them
I know that plenty of folks at United Wholesale read this commentary, and the company is in the news about a merger that will take UWM public valuing it at $16 billion. Perhaps Bruce Springsteen reads this commentary, perhaps not, but he turns 71 today so Happy Birthday Boss! Out of curiosity, what does $500,000 Continue reading
Tuesday, September 22 Sep. 22: VP of CD, Ops, LO jobs; ROI, workflow, underwriting tools; training & events; improving forbearance stats
Today (Tuesday), while Washington DC “sucks the air out of the room,” welcome to the Autumn Solstice (Equinox) in the U.S., the day when the Sun appears to cross the celestial equator, heading southward. Others know it as halfway between the day with the most sunlight in June and the day with the least (December Continue reading
Monday, September 21 Sep. 21: MLO, Ops jobs; retention, co-op products; events & training; USDA rural conditional commitments
If you watch the news long enough, you see all kinds of interesting things. Cracker Barrel is adding alcohol to its menu? Yup! And you must watch this clip with Stephen Colbert working out with, and interviewing, the Notorious RBG (“Is a hot dog a sandwich?”) a few years back. We watched Lee Farkas be Continue reading
Saturday, September 19 Sep. 19: Out-of-the-ordinary secondary market deals; primer on help for borrowers from HFAs; Saturday Spotlight: Truework
This week the lack of volatility in the bond market, and thus Agency mortgage rates, was made up for in other news. Lee Farkas was released from prison. As a reminder for anyone who has been in the business less than nine years, Farkas was sentenced to 30 years in prison in 2011 and ordered Continue reading
Friday, September 18 Sep. 18: Ops & MLO jobs; eClosing, compliance, IRRRL products; plethora of disaster policy news; rates hardly budging
Before the pandemic I used to spin that toilet paper roll like I was on Wheel of Fortune. In March and April I turned it like I was cracking a safe. Now things are back to normal, and the toilet paper area at Costco isn’t the Mecca it became six months ago. Economies have a Continue reading
Thursday, September 17 Sep. 17: Ops jobs; credit score, lead source, QC products; free Western Secondary & other events; Agencies react to disasters
Why is it that every time I call some place, I hear the recording, “Wait times to speak to a representative are longer than normal.”? Why can’t I ever figure out a “normal” time to call? I bet that the Federal Emergency Management Agency (FEMA) always has operators who pick up the phone. And the Continue reading
Wednesday, September 16 Sep. 16: Ops, production, VP Consumer Direct jobs; jumbo, CRM, anti-fraud, CD products; Ginnie hits $2.1 trillion
The Fed Funds futures market sees the Fed holding pat on rates well into 2022. What could cause rates to go up? A vaccine. Until definitive news like that comes along, the financial markets and our home lives steadily move through the calendar. GM is having/allowing most of its salaried employees to work from home Continue reading
Tuesday, September 15 Sep. 15: TPO, MLO jobs; pricing, trigger products; comp survey & retaining employees; webinar/training via phone & computer
I’ve spent time in Colorado and Utah in the last few days, and what I’ve seen and heard reminds me that a lot of the financial decisions families make are not based on interest rates. At this point it should surprise no one that rates will be low well into the foreseeable future, so shouldn’t Continue reading
Monday, September 14 Sep. 14: Ops jobs; recruiting, sales, valuation, rehab products; non-QM moves in the primary & secondary markets
People can accomplish a lot in a day. And lenders are continuing to hire like mad dogs (if mad dogs had HR departments), especially non-bank lenders. The Mortgage Bankers Association reports that nonbank mortgage bankers and brokers’ collective payrolls expanded by nearly 2% on a consecutive-month basis and were up 9% from a year ago Continue reading
Saturday, September 12 Sep. 12: CFPB’s VA lender settlements & other compliance notes; Saturday Spotlight: Academy Mortgage
Political news isn’t confined to the presidential candidates, of course, or even Washington DC. Out in California, Gavin Newsome’s (D) real estate and mortgage moves are attracting scrutiny. Three thousand miles, and one political party, away, Maryland’s Larry Hogan (R) has raised some eyebrows with certain dealings. Even decades ago, my Mom would wonder, “Who Continue reading
Friday, September 11 Sep. 11: Promotions & transitions; jumbo, 2nd lien, MERS QC audit products; U.S, economy motoring onward
Plenty of people tell me that I should “head down to Clown Town.” I never know quite how to take that. But now we have “Zoom Towns,” and thank you to Carol K. for sending this along. And I am planning on living in one since… it’s my lucky day! I just received an email Continue reading
Thursday, September 10 Sep. 10: Ops jobs; branches, mgt. position wanted; QC, marketing, VOE tools; primer on credit availability
I don’t know exactly when it happened, but somewhere along the line my dog learned the noise the cheese grater makes when I pull it out of the drawer. (Taking out the vegetable peeler doesn’t elicit quite the same response.) It appears that anyone working in their company’s portfolio retention department for refinancing their servicing Continue reading
Wednesday, September 9 09/09/2020: Ops & sales jobs, coast to coast; S&D, CRM, marketing, fraud products; mortgage apps move higher
Tom Petty sang, “There’s somethin’ good comin,’ just over the hill, somethin’ good comin’, I know it will. And I’m in for the long run, wherever it goes, ridin’ the river, wherever it goes.” Lenders always walk a knife-edge between wanting good economic times for their customers, and having them qualify, but at the same Continue reading
Tuesday, September 8 Sep. 8: CFO, processor, Ops, LO jobs; non-QM, servicer, sales, training tools; time required to hack a password
On one hand we have the old adage, “No tree grows to the moon.” On the other hand, MLOs and real estate agents are licking their chops given that 52 percent of young adults live with their parents. What does that tell you about the demand for housing and loans in the coming years? And Continue reading
Saturday, September 5 Sep. 5: Vendors are busy beavers; LIBOR phase out and transition: why should MLOs care?
Two months until the election, and soundbites are heating up. Compare Dan Rather’s, “The Donald Trump reelection strategy appears to be that only Donald Trump can save us from Donald Trump’s America” versus President Trump’s, “Joe Biden is not the savior of America’s soul, he is the destroyer of America’s jobs, and if given the Continue reading
Friday, September 4 Sep. 4: LO, CD jobs; database, HELOC, digital tools; vendor & lender products continue to shift
As we head toward the Autumnal Equinox on 9/22, places like Seattle and Minneapolis are losing four minutes of sunlight a day. Something else that is losing ground almost as quickly are monthly rents in expensive, crowded cities like San Francisco and urban New York. Six months ago I don’t recall anyone predicting a flight Continue reading
Thursday, September 3 Sep. 3: Ops, LO, AE jobs; workflow, lead, processing, renegotiation products; coming events; who owns 1/3 of Agency MBS?
“It was the third of September, that day I’ll always remember, yes I will… Wherever he laid his hat was his home… And when he died, all he left us was a loan.” Oh, sorry, “alone.” (And yes, I dance like that, at the 2-minute mark, when I finish sending this commentary out every day.) Continue reading
Wednesday, September 2 Sep. 2: Marketing, income, onboarding, HECM tools; jumbo, non-QM, misc. product updates; do-it-yourself appraisals
I don’t know whether my Nolan Ryan rookie card, fortuitously spared from my bike spokes decades ago, is worth $500 or the 10 cents I spent for the pack (with gum!). Values (and worth) can be tricky things. Look at the value of rentals with the 4-month prohibition on evictions declared yesterday. We were reminded Continue reading
Tuesday, September 1 Sep. 1: AE, Ops jobs; shell wanted; jumbo, servicing products; webinars; after 12 years of conservatorship, Agencies very much in the news
There’s a fine joke about bowling balls and tennis balls and golf balls which I won’t repeat here, but let’s go down the scale of “numerical magnitude.” Today, the NY Federal Reserve Trade Desk is set to surpass $1 trillion (with a “T”) in MBS purchases since the restart of QE on March 16. (By Continue reading
Monday, August 31 Aug. 31: Ops, TPO Sales jobs; forbearance, correspondent, title, broker products; lots of training & virtual events
No one owns a crystal ball. It seems that the best LOs and CEOs keep up on the news and trends but focus on helping borrowers one at a time, regardless of predictions. If anyone predicted six months ago that a) the world would still find itself grappling with a pandemic, and b) urban home Continue reading
Saturday, August 29 Aug. 29: Vendor M&A & other news; disaster updates; private money; CFPB & HMDA; Saturday Spotlight: CBC Mortgage Agency
Do you lend, or have clients that lend, in Texas, Louisiana, or Mississippi? Prior to Laura not being quite the “stormzilla” that the experts had predicted, ClosingCorp estimated that more than 28,000 pending mortgage transactions currently in progress in those states are in jeopardy, as a result of Hurricane Laura. The loans, which are being Continue reading
Friday, August 28 Aug. 28: Ops jobs; broker extension, secondary revenue, compliance tools; deep look into new Fed policy
I remember when I would travel to exotic places like London, England, Lima, Peru, or Biloxi, Mississippi. From Southern California, thank you to Carey A. sent along this interesting site in which you can take a drive in most of the cities in the world, listening to that city’s local radio station! Listening is an Continue reading
Thursday, August 27 Aug. 27: Virtual job fair, MLO, CD, AE, Ops jobs; VOE, VOI, pricing tools; industry’s conventional price shifts
While Louisiana is focused on Hurricane Laura, 2,200 miles away California is focused on its wildfires… and regulations. Remember that about 25 percent of the United States’ residential loan production comes out of California, so plenty of lenders pay attention to what happens out there. At the start of 2020, the California Governor’s office made Continue reading
Wednesday, August 26 Aug. 26: Servicing, MLO, Ops jobs; marketing, automation, tech mgt. tools; .5 Agency refi hit delayed – now what?
Are you busy but bored? I am. (For variety and excitement I used a big spoon instead of the usual small spoon for my Cocoa Krispies while writing this.) And I am tired of looking at the same window for nearly six months. Apparently others are too, so some clever software person created a website Continue reading
Tuesday, August 25 Aug. 25: Ops, LO jobs; AI, forbearance, comp tools; training & events through your computer & telephone
2019: Stay away from negative people. 2020: Stay away from positive people. Like it or not, depending on how “old school” you are, companies in recent years have wrestled with how to relate to younger employees, positive or negative. Can you imagine caring about stuff like work-life balance, transparency, and accountability from the top down? Continue reading
Monday, August 24 Aug. 24: Finance, AE, Ops, LO jobs; customer service, income tools; Agency jungle drums are beating
Winter is coming. I don’t need a new coat to walk from my bedroom through the kitchen and into the dining room to work on this commentary. Who is buying neckties or new dress shoes, or spending money renting cars, going to a theater, or having something dry cleaned? The sales volume of many things Continue reading
Saturday, August 22 Aug. 22: M&A observations; vendor news; notes on the housing market; Saturday Spotlight: Constant
The political jokes are flying out there. “You’d think a guy with a mail order bride would have a little more respect for the post office!” “My name is Joe Biden and… I forgot this message.” We’re between the Democratic and Republican “conventions,” and things just keep becoming more interesting. Meanwhile, regardless of politics, lenders Continue reading
Friday, August 21 Aug. 21: Training, Ops, LO jobs; MSR, conversion, EPO products; public company snapshots worth a skim
RCIII writes, “I don’t know about you, but I’m ready for some precedented times.” But Tom Petty wrote, “Well, the good old days, may not return… And the rocks might melt, and the sea may burn.” Let’s hope that doesn’t happen, aside from the occasional volcano, as there are plenty of other volatile, unpredictable human-related Continue reading
Thursday, August 20 Aug. 20: Sales mgt., LO, Ops jobs; leads, tech tools; CFPB, LO Comp, G-Rate legal ruling in the news
In these times that lenders describe as busy, profitable, and overheated, capital markets personnel are focused on margin & capacity management, staff burnout, servicing values, and warehouse capacity. With lenders upping their first lien forecasts for 2020, warehouse lines are being increased as are broker/dealer trading limits. Overtime is an issue, and companies are adjusting Continue reading
Wednesday, August 19 Aug. 19: Ops, MLO jobs; production shell wanted; CRM, productivity, marketing products; FHA’s new appraisal delivery product
Three weeks ago the Commentary included a webcam shot of Warrior Canine Connection’s Puppy Cam. (They’ve grown. Rated PG, depending on what they’re up to when you tune in.) What hasn’t grown is Blockbuster Video (remember it?), and thank you to Faith M. for sending in a notice of Blockbuster’s last store in Bend, Oregon, Continue reading
Tuesday, August 18 Aug. 18: Ops, MLO, AE jobs; training, marketing, compliance tools; MI industry snapshot; strong housing numbers
“Last night I was a hero! I rescued some beer that was trapped in a bottle.” All of our lives are changing, and thank you to Lydia O. for sending along, “Six Key Takeaways From Pandemic Data on American Households.” (“From mortgages to mental health…”) People are out “protesting in person against voting in person.” Continue reading
Monday, August 17 Aug. 17: Sales mgt., FHA, LO jobs; retention, non-QM products; training & events; investors react to FHFA’s price shift
Out in California and parts of the West it’s “hotter than Satan’s house cat.” California is once again having rolling power outages, and an opinion piece by the ex-CEO of Wells Fargo doesn’t paint an improving picture on the financial side of things. (Susan Milazzo, the CEO of the California MBA, is also following a Continue reading
Saturday, August 15 Aug. 15: FHFA’s refi price change – TILA implications, impact on risk, not everyone is complaining; Saturday Spotlight: Usherpa
For some reason the expression, “Balls to the wall” causes giggling and sidelong glances. Any student of idioms, however, can tell you that the expression came from pilots. In older aircraft, when accelerating quickly, the throttle is pushed all the way to the panel and the throttle lever (ball) actually touches the panel (wall). Plenty Continue reading
Friday, August 14 Aug. 14: Controller, MLO jobs; ROI, broker, AI, jumbo products; compliance and state-level legal news
Hundreds of thousands of people in the lending industry, their borrowers, and vendors are grappling with the refi price hit announced Wednesday evening by FHFA Director Calabria. From the Carolinas I received this from Rhonda M. “We are into the J’s now for Atlantic named storms. Wonder if Hurricane Jalabria might work?” In one sense Continue reading
Thursday, August 13 Aug. 13: Special Edition – The GSE price move, it’s impact on borrowers, and how to write to your Senators & Representative
“The reason grandparents and grandchildren get along so well is that they have a common foe.” One doesn’t like to think about parents as a foe, any more than one would want to think of the institution overseeing Freddie Mac and Fannie Mae being a foe. But the FHFA and Director Calabria are the reason Continue reading
Thursday, August 13 Aug. 13: Ops & sales jobs; appraisal, valuation, sales tools; training; 50 bp refi hit & other Agency updates
Follow the money! The “talking heads” are analyzing the fact that President Donald Trump donated $6,000 to Kamala Harris’ 2014 campaign for reelection as California attorney general, and that she in turn donated the money to a non-profit that advocates for civil and human rights for Central Americans. And we have nearly three months to Continue reading
Wednesday, August 12 Aug. 12: Risk management job; VOE, loan delivery, lead source products; misc. investor & lender changes
Dating in college is a matter of many things. I mention this because I wondered what colleges were recommending about COVID, and the University of Georgia answered that with a student guide to “romance,” at least for a few days. Go Dawgs! Dating is also impacted by supply and demand, and lenders know that mortgage Continue reading
Tuesday, August 11 Aug. 11: MLO jobs; marketing, servicing, comp tools; FHA & Ginnie changes roll on; economic gyrations: rates creep higher
Me: “I want to travel.” Bank account: “Where? To work?” Think of people in their 20s and 30s. They’ve grown up with 9/11, the Financial Crisis, and now this coronavirus. (If all you cared about was the stock market, in 1990 the Dow Jones was around 5,000. It is now nearly 28,000, give or take.) Continue reading
Monday, August 10 Aug. 10: Ops, LO, FHA jobs; marketing, cap. mkts. products; webinars in the comfort of your home
“Paranoia is out of control: This morning, while reviewing this commentary, I sneezed in front of my laptop and the anti-virus software started a scan of its own!” The nation continues to brabble about health care, coin shortages, opening up and closing down, and politics… it makes my head spin. The political ads are increasing Continue reading
Saturday, August 8 Aug. 8: Is the Agency CRT program endangered? Economic tidbits; Saturday Spotlight: LBA Ware
Does running from my responsibilities count as cardio? There are a lot of groups responsible for running the production of economic statistics of varying quality. The United States now finds itself grouped with China in terms of questionable government statistics: how can we rely on them when people are distressed or don’t answer the phone? Continue reading
Friday, August 7 Aug. 7: Accounting, sales, Ops jobs; reverse, training, VA tools & products; Ellie’s $11 billion sale & other vendor news
Let me get this straight. It’ll take a year or two for a cure for a virus that can be killed with hand sanitizer, soap, and hot water? COVID is driving our economy, driving headlines, driving working from home and managing employees working from home, and driving the behavior of residential lenders. Speaking of headlines, Continue reading
Thursday, August 6 Aug. 6: Cap. mkts., U/W, AE, LO jobs; risk tool; webinars & training; servicing & MSR update; rates continue lower
Originators and lenders are having a great summer from income and profitability perspectives. The thick margins are making managers look like champs, arguably covering up other issues that would normally be corrected. Rocket, the parent company of largest US mortgage provider, trimmed the amount of stock it is selling from $3.3 billion to $2 billion Continue reading
Wednesday, August 5 Aug. 5: Ops, AE jobs; Analytic, business practice, income, compliance products; renewing the non-QM segment
Since eating inside a restaurant is problematic, now’s the perfect time to eat better at home, get fit, and stay healthy. Never mind: Who are we trying to impress? We have snacks, we have sweatpants, let’s use them! Would you be impressed if the entire U.S. yield curve dropped below 1 percent? It could happen. Continue reading
Tuesday, August 4 Aug. 4: Senior management, AE, LO, Ops jobs; marketing, database tools; disaster updates; cap. markets & root canals
Sure, you’re making bank now, but are you planning for next year? Is your company doing anything to “team up”? Many lenders, vendors, and real estate companies have strategic partnerships with other companies. There’s strength in numbers, and they are not “against the law”. Here’s a new one. Online real estate company Zillow and D.R. Continue reading
Monday, August 3 Aug. 3: CU, Ops, LO jobs; fraud, retention, legal products; August training without leaving your La-Z-Boy
Remember a month ago, heading into the July 4th weekend, a resurgence of Covid-19 cases (which many officials attributed to large Memorial Day gatherings) resulted in mask-wearing mandates as well as rollbacks and delays in phased reopening plans. (Speaking of the virus, we wish loanDepot’s Anthony Hsieh a continued welcomed recovery from its impact.) Economic Continue reading
Saturday, August 1 Aug. 1: Letters on iffy government data, forbearance, the Fed; LIBOR transition update; Saturday Spotlight: Capacity
In Scotland, many owners paint their front door red when they pay off their loan or own the house debt-free. Is an all-cash buyer the biggest competitor for a broker or loan officer? A report from Construction Coverage, a building industry information service, shows over 20 percent of California owners don’t have a mortgage. Nationally, Continue reading
Friday, July 31 July 31: Servicing, appraisal, Ops, sales jobs; broker, valuation products; FHA, & Ginnie changes; HUD addresses the self-employed
Whether it is Northern Virginia or Lake Tahoe, we’re running out of houses. The pandemic has caused a buyer feeding frenzy away from apartments and city cores. Heck, I can hardly wait to sell my house! The problem is… where would I live? So I’ll pass. Like it or not, we are living in an Continue reading
Thursday, July 30 July 30: U/W, LO, AE jobs; loss mit, retention, valuation tools; LOS survey; deep dive into economic news & cap markets
Lenders are “tonning it,” as indicated by Fannie Mae’s net income of $2.5 billion for the second quarter of 2020, compared with net income of $461 million for the first quarter of 2020. But with most of us hunkered down, the economy continues to hunker down as well, as shown by GDP down nearly 33 Continue reading
Wednesday, July 29 July 29: Underwriting, subservicing, AVM, pricing tools; Conforming conventional updates; bonds quiet
You’ve made it to Hump Day yet again, and as a reward, how about this webcam shot of Warrior Canine Connection’s Puppy Cam?! (Hey, it’s my commentary; I can put in anything I want, right?) I hope those pups have a long healthy life. Regardless of political party, millions of Americans who get health coverage from Continue reading
Tuesday, July 28 July 28: Ops, LO jobs; sales, workflow, customer service tools; Black Knight to add $1.8 OB to $62 million Compass asset
I could see that my cat Myrtle was miffed last night. I doubt if it had anything to do with the supply chain issues impacting appliances and new home construction, although her mini-frig has been on back-order for two months. My guess is that it had something to do with the latest “Arctic Char Quarterly’s Continue reading
Monday, July 27 July 27: Sales, consulting, Ops, LO jobs; sales webinar; world news driving rates, primer on the belly of the yield curve
In these days when you can’t even get 100% of Americans to agree that water is wet, we have hurricanes, gold prices skyrocketing, COVID relief debates, and ninety-nine days more of “fun” until the election. Yes, it appears that another COVID aid package is grinding its way slowly ahead of Congress’ summer recess, but let’s Continue reading
Saturday, July 25 July 25: Credit Risk Transfers helping mortgage rates; SOFR transition status; Saturday Spotlight: Thrive Mortgage
All the smart folks are predicting these low rates and high residential volumes to continue through the year. (I remind people that no one was predicting all of this precisely only five months ago. Who can really predict where we’ll be five months from now, Christmas Day?) But with low rates, and low inventory, and Continue reading
Friday, July 24 July 24: Regional manager, AE, LO jobs; automation, credit, AI tools; up to speed on tax transcripts
I don’t know if there is going to be a pro football season or not, with lines of scrimmage & heavy breathing 11 inches apart for hundreds of linemen every week, but here’s The Onion’s take on “The Best Cities To Live In For Fans Of Rock And Roll Museums and The Cleveland Browns.” Regardless Continue reading
Thursday, July 23 July 23: Ops, LO jobs; underwriting, forbearance, one-time close, marketing tools; loan processing changes
Loan officers are known for “holding the hand” of their borrowers. Now Google would like to hold the other. With the help of the CFPB, and launched yesterday, searching “mortgage” in Google on one’s phone will lead to Google explaining what a mortgage is, terms to know, recent rates, what one can expect to pay, Continue reading
Wednesday, July 22 July 22: Ops jobs; digital, servicing, ECOA products; webinars to wrap up July; Agency changes continue
The names “Google” and “Alphabet” are the answers to many trivia questions involving search engines, market value, and advertising. If you think Google doesn’t know (and record) exactly what you’re searching for, you’re wrong. Thank you to Jeremy P. who sent along an interesting video showing, by month, what the majority of people searched for Continue reading
Tuesday, July 21 July 21: AE, LO jobs; training, eClosing, broker, servicing products; USDA rural tidbits; forbearance stats improving
Originators, as Deb from Virginia reminded me, are currently like ducks: cool and calm on the surface, paddling frantically underneath. Originators like low rates, but not if their clients can’t qualify for a loan. Furloughs are becoming permanent for many companies. U.S. equity indexes might be trading substantially up on recent low points, mostly due Continue reading
Monday, July 20 July 20: AE, Ops, LO jobs; marketing, risk, data retrieval tools; wholesaler news; rates: steady as she goes
After the shaman finished my taxes last week over the phone, we struck up a conversation about working from home, pros and cons, since it appears that most will be doing this for the remainder of 2020, if not beyond. (But work from home Monday through Friday, then get together with your twenty closest pals Continue reading
Saturday, July 18 July 18: National Broker Day; letter about current lender concerns; vendor updates; Saturday Spotlight: Sales Boomerang
On a side note, a lot of people ask how I can write six commentaries a week. At first, I thought they were impressed by my industry, but lately the question has taken on a different inflection, along the lines of, “WHY do you put out six commentaries a week, each one about 2,300-2,500 words Continue reading
Friday, July 17 July 17: Recruiting, mgt., sales, Ops jobs; builder, sales, data analysis tools; Ginnie & FHA program tacks
Want an estimate of how many borrowers might be out there, benefitting from your assistance by you giving them a lower rate (assuming they, and the property, qualify, of course)? Go to page 11 of Black Knight’s report. Is “oodles and oodles” a real number? Woe to any investor who paid 105 four months ago Continue reading
Thursday, July 16 July 16: Ops, AE, LO jobs; broker, cost analysis, audit, credit tools; CFPB’s legal action; lots of activity in the capital markets
I was on the phone yesterday with my psychic who told me, “You will live a long and healthy life if you abstain from anything that brings you joy.” Okay, I don’t really have a psychic. Besides, who could predict that an event in 2021 would already be cancelled: the Rose Parade! Five months ago Continue reading
Wednesday, July 15 July 15: Ops, AE, LO jobs; non-QM, QC, construction loan products; events & training; big bank mortgage stats
I woke up this morning trying to remember if I was working where I am living, or living where I am working. “Personal” and “professional” often overlap. Caliber, and other wholesalers, are taking the high road in this week’s awful mix of personal and professional lives. Flagstar Bank summed up this week’s controversy in the Continue reading
Tuesday, July 14 July 14: LO, U/W jobs; data, loss mit, disclosure, comp products; flood & disaster changes
Here’s your life graphically under COVID. Many in our business will argue that homes should not be used as piggy banks, COVID or no COVID. For others it is their lifeblood of business. Others say that good moms let you lick the beaters, but great moms turn them off first. (Okay, I just threw that Continue reading
Monday, July 13 July 13: QC, Ops, LO, reverse, AE, correspondent jobs; marketing, TPO products; wholesale updates & mudslinging
While in captivity it is important to remember good grooming is important. Good communication is important also. Are salespeople all on the way to having two cell phones, and two phone numbers? If you haven’t heard of Gong, your boss probably has. Gong is a “revenue intelligence platform for B2B sales teams. It helps you Continue reading
Saturday, July 11 July 11: Supply & demand on bananas, hard seltzer, and… wood prices!? Saturday Spotlight: PrimeLending
“History is not there for you to like or dislike. It is there for you to learn from it. And if it offends you, even better. Because then you are less likely to repeat it. It is not yours to erase. It belongs to all of us.” Contrast that versus, “We should not teach history. Continue reading
Friday, July 10 July 10: Ops, LO, AE jobs; servicing, lead, marketing products; flood of conventional conforming changes
Bubonic plague in China? What’s next, frogs falling from the sky? Water turning into blood, darkness for three days? A big bank requiring $1 million in your account for some retail jumbo refis? Oh wait… that happened. (That’s one way to manage capacity.) Ivy League football has been yanked, and hurricane season is approaching in Continue reading
Thursday, July 9 July 9: QC, LO, reverse opportunities; sec. mktg., marketing products; compliance news: is a “like” a “thing of value”?
United Airlines may lay off 36,000? Bed, Bath, and Beyond closing 200 stores? Walgreen’s cutting 4,000? Yup. Lower rates won’t save those jobs, but we’ll have low rates for a long time. Things are different for residential lenders. When we began 2020, who thought things would be where they are now in our biz to Continue reading
Wednesday, July 8 July 8: U/W, LO, processor jobs; lead, broker, AMC products; upcoming training; a peak at Rocket Companies
Crazy times. Brooks Brothers filed for Chapter 11 bankruptcy. Rocket Companies filing for an IPO. Genworth Mortgage Insurance completing an excess of loss reinsurance transaction. It is easy to argue that it is the fear of the virus that is impacting economies around the world, not the virus itself, slowing economies and keeping rates low. Continue reading
Tuesday, July 7 July 7: AE, Ops, LO jobs; marketing, processing, training tools; industry & lender forbearance trends
This morning analysts are talking about the 5 million people of Melbourne, Australia now under a new 6-week lockdown. Lockdown! In this country, we have four long months until the election, with plenty of mudslinging ahead. But here is a short piece on how to think about politics and mortgage origination: “Mortgage Outlook: What if Continue reading
Monday, July 6 July 6: U/W, production jobs; DPA, leads, PMI products; investors ruminate on employment data: shrug?
Here’s a blunt reminder of what can go dramatically wrong in a fireworks stand. And here’s a blunt email that I received over the weekend. “Rob, what don’t people understand? If someone is threatened with a potentially fatal illness, the last thing on their mind is buying the latest Apple phone, a new car, a Continue reading
Friday, July 3 July 3: Recent depository mortgage jobs; vendor news; primer on yield curve control: price vs. quantity
Yes, I know that today is a holiday for many companies, and well-deserved. But I wanted to put three topics out there, including vendor news, to play some catch up. If you think technology is racing along in mortgage-land, how about in language and communication? Remember newscasts for the hard-of-hearing? Now scientists have created a Continue reading
Thursday, July 2 July 2: Fulfillment, AE, LO jobs; anti-fraud, DPA, HMDA products; non-QM news in primary & secondary markets
Lenders continue to count the piles of doubloons they booked during another record-breaking month; will July be another? M&A deals are still simmering out there, but when profits are “en fuego” and July is looking strong with full pipelines, it can be tough for a fortunate owner to sell. Think of all of those unfortunate Continue reading
Wednesday, July 1 July 1: COO, Ops, AE, LO jobs coast to coast; broker, marketing products; mortgage rates: “steady as she goes”
Thank God for the Rolling Stones: They’re older than we are! Halfway through 2020 already? Welcome to Q3! Social D. sang, “Life goes by so fast; you only want to do what you think is right. Close your eyes and then it’s past; story of my life.” Yes, we’re aging. The U.S. Census Bureau announced Continue reading
Tuesday, June 30 June 30: Ops, LO jobs; servicing, inspection, loss-mit products; CFPB’s structure to change; Ginnie adjusts pooling requirements
Some days you don’t learn much, other days you learn a lot (skip the ad). We’ve learned that COVID is driving our economy, not fundamental economic news, and at this point virologists have better forecasts than economists. Appearing with Treasury Secretary Mnuchin today before Congress, it is believed that Fed Chairman Powell will state that Continue reading
Monday, June 29 June 29: LO & Sales jobs; MSR, marketing, leads products; training & webinars from home
Does this mean we can no longer say, “Hindsight is always 2020”?! It’s too bad that the Tiger King is the most normal thing about 2020. For the people who still think it is a hoax, and pushing for your right to not wear a mask around others, well, you can read the tales of Continue reading
Saturday, June 27 June 27: Morale & innovation in WFH environment; Fannie’s recent secondary deals; Company spotlight: Mortgage Sentinel
With the dramatic increase of COVID-19 cases in the United States and the world, and returning to captivity at home, it is never too early to start working on that bathing suit body for… 2021. Sure you’ve proved you can work from home. Productivity has gone way up, arguably because there isn’t much else to Continue reading
Friday, June 26 June 26: LO, Ops jobs; DPA, forbearance, broker products; FHA, USDA tweaks; Treasury/MBS spread update
There are plenty of tricks in any trade. Just-opened cellulose sponges are already damp because many are premoistened with sterile water. (Without H20, the material shrivels and hardens and looks unattractive in the store.) Watch a car commercial on TV: many have the street watered down to make the asphalt dark and the car reflect. Continue reading
Thursday, June 25 June 25: Management, Ops, LO jobs; marketing, processing, default products; primer on high bal pricing
Some things are uncertain, like whether colleges, driven by ticket & TV income, bring back their football players when the rest of the student body “remains virtual” this autumn. (Harvard law school is online for the fall semester, for example, leading to a tuition lawsuit, of course.) Or if your company is giving you July Continue reading
Wednesday, June 24 June 24: Ops, AE jobs; marketing, broker, tax products; VA, construction webinars; tech partnerships
Companies worldwide are grappling with continued travel bans, and how to bring back employees in waves, if at all. Others are re-designing office layouts, thinking about renting more space, and looking at the cost of footprint changes. Some employees can’t wait to return to office life, others are doing fine without commuting, and still others Continue reading
Tuesday, June 23 June 23: QC, sales, LO jobs; outsourcing, DPA, marketing products; thoughts on the CFPB’s non-QM proposal
There are all kinds of things that I don’t, or didn’t, know. For example, the other day I learned that when dogs lap water, they’re actually scooping up water with the back of their tongue, which is curled like an elephant’s trunk. Now I’ve learned that the term “master bedroom” is being abolished and changed Continue reading
Monday, June 22 June 22: AE, LO, Ops job; marketing, TPO, cost analysis products; June’s remaining training & events
After nearly 100 years, Eskimo Pie ice cream will get a new name. (The name “Eskimo” is commonly used in Alaska to refer to Inuit and Yupik people, according to the Alaska Native Language Center at the University of Alaska. This name is considered derogatory in many other places because it was given by non-Inuit Continue reading
Saturday, June 20 June 20: The non-mortgage issue on voter expectations, news bias, showing homes, and entrepreneurship
Greetings on the Summer Solstice, made possible by the earth tilting as we circle the sun. (We in the Northern Hemisphere are currently tilted toward the sun, by the way.) This has been the case for billions of years, even before I got into this business, and will be the case long after things like Continue reading
Friday, June 19 June 19: Credit, QC, Ops, LO jobs coast to coast; broker, DPA products; residential credit changes
Lots in the news. Congratulations to the California MBA (and the MBA and lenders everywhere, since nearly 25% of residential loans come from California) which made news by being victorious in defeating AB 2501. Kansas has added Alabama to its quarantine list (Alabama’s hospitals are at maximum capacity). These days, there are hundreds of news Continue reading
Thursday, June 18 June 18: Ops, LO jobs; digital, QC, cap. mkts. products; Ginnie & FHA changes & trends
Capital markets folks focus on risk management every day. The public is getting a taste of another kind of risk management when they go to a bar, tattoo parlor, or hair salon. What happens when the government doesn’t specify what masks are acceptable? Should COVID just be part of our health landscape, as many have Continue reading
Wednesday, June 17 June 17: Sales, Ops, marketing jobs; CRM, processing, buyback insurance products; COVID, the CFPB, credit reports, and rates
Yesterday afternoon I was doing my quarterly ten minutes of YouTube yoga (“Align those internal organs! “The journey is the reward!”) and my mind wandered to how economists are great at predicting the past. (No, I didn’t make that up.) Companies post their results, and any talk of the future often comes with a warning, Continue reading
Tuesday, June 16 June 16: Marketing, bank statement, processing, servicing products; webinars & events; Freddie & Fannie in the news
What? You aren’t offering a 30-year rate below 3% yet? Better catch up, because that is where the mainstream press is telling borrowers rates are. Of course, us capital markets folks hate it when newspapers talk about rates, and LOs don’t like explaining how “trivial” items such as risk and credit score can influence someone’s Continue reading
Monday, June 15 June 15: Production jobs; marketing, cap mkts, servicing products; correspondent tidbits; webinars & training this week
With the increase in COVID cases, plenty are heading back into captivity, and it is important to keep a level head. (What is so hard to understand about “stay away from each other”?) Also increasing are the forbearance percentages. We’ve seen the MBA’s surveys on forbearance in the residential sector, but what about commercial loans? Continue reading
Saturday, June 13 June 13: MISMO moves; Housing news; thoughts on BLM; current topics in the compliance world addressed
It has been nearly three months since we began sheltering in place. Fortunately for lenders, things have quieted down from March’s wild ride, both with rate volatility and in program fluctuations. (And hey, don’t forget that it’s Flag Day tomorrow.) Our industry continues to deal with unintended consequences. For example, I received this note from Continue reading
Friday, June 12 June 12: AE, LO, Ops jobs; DPA, pricing, doc products; USDA, FHA, VA notes
How the heck could anyone value a mortgage company these days? The value is pretty much comprised of its servicing, cash, receivables, and assets (loans held for sale). I guess we’ll all find out if, and when, Quicken Loans does an IPO, and Dan Gilbert winds up reporting to shareholders. Are you kidding me? Responding Continue reading
Thursday, June 11 June 11: Mgt., LO, training jobs; construction, VA IRRRL, loss mit programs; no “V-shaped” recovery
Despite the early stages of quarantine and captivity seeming to drag, the year is rushing along. They always do. The Chairman of the Federal Reserve tells us not to expect a “V-shaped” recovery, details in Capital Markets section below. We have only ten days until the Summer Solstice, not technically the “longest” day of the Continue reading
Wednesday, June 10 June 10: LO, sales, Ops jobs; marketing, AMC, forbearance products; Freddie & Fannie direction
Not only are origination staffs asking for refreshed marketing efforts as volumes show a tinge of falling off, but how about this note that I received from a CEO of a large lender in the Northeast? “Rob, what are you hearing about signing bonuses out there? Is it just my staff that is receiving unsolicited Continue reading
Tuesday, June 9 June 9: AE, AMC, LO jobs; marketing, DPA, underwriting, pricing products; wholesaler changes
Big picture, in case you haven’t been paying attention, the National Bureau of Economic Research confirmed that the U.S. economy has slowed: The economy hit its peak in February and has since fallen into a downturn as the unforeseen pandemic caused shutdowns and brought an end to the 128 month record-long expansion. In the weeds, Continue reading
Monday, June 8 June 8: LO, FHA jobs; marketing, servicing products; training on servicing, VA IRRRL, and other events
Who doesn’t like being kept informed at absolutely no cost? There is no reason for anyone not to join the Mortgage Action Alliance as the Mortgage Bankers Association is knee-deep in political issues that lenders should know about. Like forbearance, part of the CARES Act. Recall that the Great Recession (Financial Crisis, whatever you want Continue reading
Saturday, June 6 June 6: Random vendor news; letters on housing economics & pent up demand
In response to my real estate agent quote, “No family wants to push an elevator button to go home,” when talking about families looking to move out of the city, thank you to Ken S. who sent this article about nationwide relocations during the pandemic. And the upswing in activity isn’t confined to lower price Continue reading
Friday, June 5 June 5: Risk, appraisal, LO, AE jobs; broker, DPA, LOS, products; FHA COVID forbearance guidance; payrolls push rates higher!
Change is certainly constant. “And just like that, every reporter has gone from infectious disease expert to civil rights attorney.” In our biz, if you didn’t make money in the first quarter, you should have made some changes. The MBA tells us that independent mortgage banks and mortgage subsidiaries of chartered banks reported a net Continue reading
Thursday, June 4 June 4: Management, Ops, LO, AE, DTC jobs; broker, doc products; customer experience study; correspondent changes
Yesterday afternoon my cat Myrtle was watching me mop the kitchen floor. (Hey, it’s not going to mop itself, right? And it is mildly amusing to use certain products – insert slogan contest here for 4th grade humor.) While toiling, besides thinking about how much of a raise I am going to give the housecleaner, Continue reading
Wednesday, June 3 June 3: AE, Ops, LO jobs; subservicing, VA IRRRL, workflow products; wholesalers shifting product gears
From the Bay Area Marcus L. writes, “I miss the days when Tiger King was the most controversial thing going on.” Everything is a controversy these days, including where the real estate market is heading. Supply is limited, demand is decent, case closed. Things are re-opening, but can people qualify for a loan? It is Continue reading
Tuesday, June 2 June 2: Sales mgt., Ops, LO jobs; CRM, broker, eClosing products; events for LOs; servicing tactics continue to impact market
Curfews and civil unrest have replaced COVID in the news. Meanwhile, investors are watching record low debt issuance yields from companies like Amazon and Costco (1.50-1.62 percent 10-year notes, lowering their cost of capital dramatically). Low rates for a mortgage these days are certainly more common than finding a jumbo investor offering a 20 percent Continue reading
Monday, June 1 June 1: Processor, LO jobs; referral, accounting products; webinars & training through your computer
I was speaking to a successful long-time real estate agent this weekend who is as busy as she’s ever been. Couples are weary of working from home in a one-bedroom apartment. In talking about families leaving the city, she observed, “No family wants to push an elevator button to go home.” Redfin is in the Continue reading
Saturday, May 30 May 30: Credit risk transfer primer; LIBOR transition in the news; thoughts on property value direction
Gosh, there is a lot of news out there. Is it accurate? When I was a kid there was a half hour, or an hour, of news each night on NBC, CBS, and ABC. Pick one. Now there are hundreds of news channels all clamoring for something to yap about. Or yap about the whatever Continue reading
Friday, May 29 May 29: LO, AE, tech, Ops jobs; portfolio monitoring, non-QM, corresp., broker products; customer satisfaction survey
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 Continue reading
Thursday, May 28 May 28: Ops, technical, LO jobs; doc, MSR, broker products; private MI companies motor on; continuing jobless claims drop
With two business days left in May, one can feel the anticipation of the start of the “National Standing Desk League” opener coming up soon. I’m excited about that, and I’m excited that it’s garbage day here at the house. Taking out the garbage… What to wear, what to wear? What isn’t exciting for investors Continue reading
Wednesday, May 27 May 27: Ops, AE, mgt., LO jobs; servicing, DPA, CRM products; warehouse deal news; more investor changes
Making the rounds is, “The spread of Covid-19 is based on two factors. #1: How dense the population is. #2: How dense the population is.” As a nation, we remain divided on virtually everything about COVID. There is well-written article on how half the calls on social media for reopening the nation are from bots. Continue reading
Tuesday, May 26 May 26: Appraisal, LO jobs; broker, eSign, marketing products; USDA, FHA, Freddie, Fannie news & trends
I doubt if I have ever pressed “7” or “8” on my microwave oven keypad. Speaking of 7 & 8 (I know, a weak segue), originators are keenly aware of what builders are seeing & doing, economy-wise, and 78 percent of them did not lower their prices in April. Not only that, but 41% of Continue reading
Saturday, May 23 May 23: Vendors on the move; warnings about repurchase claims and the impact of forbearance on credit
Besides the use of the word “unprecedented” having become unprecedented, competition between lenders and vendors is just as strong as ever. “Please keep thinking about me while I’m thinking about my business.” What a great line when it comes to competitors complaining about your pricing, your programs, your ops team, your work ethic. A lot Continue reading
Friday, May 22 May 22: Marketing, Ops, LO jobs; CRM, marketing, LO products; tools to help borrowers; rates: a global snapshot
The Friday before a three-day weekend (honoring the men and women who died while serving in the U.S. military)! Can’t you just feel that anxiousness to go and hike, to have a meal out, to see people, to sit in a restaurant? No one can argue that social distancing has increased the rate of infection, Continue reading
Thursday, May 21 May 21: Ops, recruiting, Sec. Mktg., LO jobs; appraisal, QC products; loan processing is changing: Beeline & SnapFi
Some lenders and vendors are easing back into offices, or at least planning voluntary phases. (Hmmm… wear a mask and have 2 per elevator, or work from home with no commute and wear sweats. Let me think.) Instead of thermal scanners in every office lobby, can’t we just have our mothers kiss our foreheads to Continue reading
Wednesday, May 20 May 20: LO jobs, servicing wanted; broker,correspondent, LOS, CRM products; Agency shifts; remember non-QM?
Jury trial by Zoom? Leave it to Texas to give it a shot. Michigan and Indiana are now offering the bar exam online for aspiring attorneys. Out of Pennsylvania comes news that Gov. Tom Wolf issued an executive order that allows real estate to open on a statewide basis effective yesterday, subject to certain guidelines. Continue reading
Tuesday, May 19 May 19: Servicing, LO jobs; correspondent, audit, construction products; stunning number of webinars this week; September’s state conferences!
It’s one thing to have confusion & bickering over whose turn it is to put the Scrabble tiles away face down after the game. It’s a whole different level when it comes to forbearance. As STRATMOR’s Seth Sprague puts it, “The forbearance airplane is being built as we’re flying it!” Servicers report that borrowers fall Continue reading
Monday, May 18 May 18: LO jobs; broker, CRM, texting, VA IRRRL products; premium pricing blues; forbearance & Agency news
“All of our dogs think we quit our jobs to spend more time with them while all of our cats think we got fired for being the loser they always knew we were.” And when you combine dogs and Zoom meetings, here is what you get. I’m just glad that I didn’t waste my money Continue reading
Saturday, May 16 May 16: IMBs, retained servicing, & taxes; CRM advice; co-issue & bifurcation: orange alert? “joke” about perspective
Now that we have everyone washing their hands correctly: Next week-turn signals!!! Speaking of turn signals, it always amazes me how interconnected things are. (How’s that for an understatement?) I know that this is a commentary on the residential lending biz, but for a moment let’s take the ripple effect in the car market. (Forget Continue reading
Friday, May 15 May 15: LO, Ops jobs; business opportunities; due diligence, AMC products; yesterday’s noteworthy Agency changes
I messed up yesterday, not knowing “Bike to Work” Day was postponed until September. Getting out of the bedroom was okay on my Schwinn Varsity, but coming down the stairs was rough on “the boys.” What is also rough are margin calls. Margin calls were, and still may be, a big deal for lenders’ cash Continue reading
Thursday, May 14 May 14: Mgt., LO jobs; reverse, valuation products; Agency/investor changes; mortgage-COVID-video; Powell: prolonged tough times
As we race toward the Memorial Day holiday on the 25th, for the first time in history we can save the human race by laying in front of the TV and doing nothing. Let’s not screw it up! Zillow laid out its work from home (WFH) plan: the rest of 2020. Microsoft? October at the Continue reading
Wednesday, May 13 May 13: CRM, marketing, broker, appraisal products; shifts in credit reporting & underwriting
Remember the old days at a birthday party when someone would blow on the cake before everyone ate it? Things are certainly changing, including processing residential loans. In our biz, as we all wait for Ginnie to come out with its electronic promissory note policy, Informa Financial Intelligence released its April 2020 Mortgage Originations Data. Continue reading
Tuesday, May 12 May 12: Ops, LO jobs, business opportunity; marketing, docs, LO products; lender changes continue
I have a confession to make. I grew up drinking whole milk. In fact, I’m so old, when we were thirsty playing sports on the street, we drank out of whatever garden hose was convenient. (Audible gasp from readers.) I could go on, but the point is, I’m not ancient, we’ve made it through a Continue reading
Monday, May 11 May 11: Ops, LO jobs; Recruiting tool; lots of webinars & training this week; deep dive on jobs number; California may do what?
In the last two months everyone figured out the difference between “WFH” and “WTF,” and many in captivity are looking forward to being released, if only temporarily. My cat Myrtle, who wants to maintain my “work from home” (WFH) productivity, had employee monitoring software installed on my laptop! Plenty of LOs & AEs are accustomed Continue reading
Saturday, May 9 May 9: Economic trends LOs should be aware of; primer on servicing values: what is the cash return?
It will be interesting to see if the coronavirus pandemic convinces people to move back out of cities. (Speaking of cities, and living in captivity, thank you to Jennifer W. who sent along this collection of fun/clever videos: “The 4 Weeks of Quarantine” – there are sure some creative people out there.) The U.S. Census Continue reading
Friday, May 8 May 8: Ops, LO, AE jobs; marketing, broker products; capital markets barely budge after headline unemployment number
Huh? Your company has 20,000 square feet of office space along 635 in Dallas, or 15 in Salt Lake City, or 405 in Orange County, that’s been empty for two months? And you’re paying how much for it every month? And your workforce is more productive than ever, closing a record amount in April? I Continue reading
Thursday, May 7 May 7: LO, AE, Ops jobs; CRM, API, broker, marketing products; disaster updates; investor changes continue
Plenty of people are clamoring to be released from captivity, and changes in staying sequestered or opening up has become political. The lending climate certainly continues to change. Reverse mortgage origination has plummeted, for example. “You never want a serious crisis to go to waste,” said Rahm Emanuel after 2008, and officials aren’t. It was Continue reading
Wednesday, May 6 May 6: LO jobs; QC, warehouse, pricing products; Agency & investor changes don’t stop; fortunately rates quiet
May 6th, of course, is the anniversary of the first tequila hangover. Alcohol consumption has increased as people continue to adapt to the working from home “Groundhog Day.” Yes, adapting. How about this doctor who adapted by handing out clear masks for free to help her hearing-impaired patients? There is training for adapting to remote Continue reading
Tuesday, May 5 Cinco de Mayo: AE, LO jobs; digital, marketing products; tech & training webinars; relentless Agency & investor changes
As California prepares to open some retail stores, the racoon has been named the official mascot of 2020: washes hands insanely, always wears a mask, and when you rearrange the letters of its name… Leave it to Cinco de Mayo to fall on Taco Tuesday, which is now messed up due to a virus with Continue reading
Monday, May 4 May 4: Ops, reverse, LO jobs; CRM, audit, doc, subservicer products; tech survey; upcoming events & training
May the 4th be with you as the use of the word “unprecedented” continues to be… unprecedented. While in captivity it is important to get out outside once in a while and see the countryside. Of course hairdressers around the nation are saying that, thanks to COVID-19, everyone now knows everyone’s true hair color on Continue reading
Saturday, May 2 May 2: What are warehouse banks seeing? A primer on servicing & MSRs (yes, they can wallop borrower’s pricing)
Mark W. writes, “Patrick Henry exclaimed, ‘Give me liberty or give me death.’ Are you going to the beach this weekend?” American Airlines announced that face masks will be required beginning May 11. Drinking isn’t restricted, and anyone can have some “furlough merlot,” wine consumed in an attempt to relieve the frustration of not working Continue reading
Friday, May 1 May 1: LO, Ops jobs; correspondent programs; large & small investors continue program shifts (with an “f”)
May Day! A third of the way through with 2020 already? Seven weeks ago it was, “Use us! We have the best rates and products!” Now it’s, “During these challenging times, use us! We have the best rates and products! Stay healthy!” Lenders seem to be healthy as April is another month for lender’s record Continue reading
Thursday, April 30 Apr. 30: LO, AE jobs, business opportunities; broker, digital products; G-Rate’s penalty; sweeping investor changes
As analysts pour through Freddie Mac’s earnings announcement this morning, when in captivity it is important to settle in quickly and efficiently. It is also important not to fall for any phone scams! Here’s your tip du jour: “When in Doubt: Hang Up, Look Up, & Call Back.” Focusing on the general population, industry pundits Continue reading
Wednesday, April 29 Apr. 29: AE, Ops, LO jobs; digital, customer service products; FHA COVID news; 1st quarter GDP: ouch
While in captivity it is important to observe the impact of your words during meal times. (Warning: Rated R for language.) Measuring the financial impact of the government-instituted changes is now a focus. Credit-card payments are one of the first places where the effects will show up, and are often the first loans people stop Continue reading
Tuesday, April 28 Apr. 28: Sales jobs; underwriting, rural products; WFH, anti-fraud, digital webinars; guideline shifts continue
Folks will sometimes ask me, “It’s a mystery: What kind of preparation do you do before writing your daily commentary?” Although no one has ever filmed me, this is a close approximation. Another mystery is how much vodka goes into scrambled eggs. What isn’t a mystery is that some companies, especially in the non-QM or Continue reading
Monday, April 27 Apr. 27: Servicing, Ops, LO jobs; CRM, broker products; training & webinars from your couch; top lender numbers
My Saturday was going pretty well until I realized it was Sunday. Remember when Zillow was going to take over the mortgage business? Or Amazon was going to undercut everyone’s comp structure? Or TRID was going to spell the end of every lender? Mike D. sent, “I miss the good ‘ol days when we were Continue reading
Saturday, April 25 Apr. 25: LIBOR to SOFR transition update; Deep dive on U.S. debt; What do bored stunt performers do?
Big day today! Laundry day! Growing up, especially in college, and being a guy, one learns that socks and underwear are washed after wearing once, maybe twice if you’re not doing much, t-shirts after 2-3 times, regular shirts after 3-4 wearings. Gym shorts or pants? They never get dirty, and can go weeks. All of Continue reading
Friday, April 24 Apr. 24: Servicing, AE, Ops jobs; broker, construction, doc products; cash-out product hit; Federal Reserve deep dive
While in captivity, it is important that your home have the right ambiance, and emanate a welcoming feeling. Real estate agents are good at helping sellers establish the right ambiance, and while giving blood yesterday I coincidentally sat near an agent and we chatted. In her opinion, yes, listings are way down, but prices are Continue reading
Thursday, April 23 Apr. 23: LO jobs; QC, sales, marketing, cap. mkts. products; Agencies & forbearance loan purchases
While in captivity it is important to know economics, and the price of things like cigarettes in prison. (Warning: Rated a serious “R.” Perhaps “X.” Click at your own risk; no complaints.) Other than things like a mother’s love, most things have prices, and Fannie and Freddie set theirs for buying loans in forbearance in Continue reading
Wednesday, April 22 Apr. 22: Ops, LO jobs; digital products; GSE & large investor adjustments; bond market quiet: a good thing
While in captivity it is important to amuse oneself. And here’s a tender song – the video is only 30 seconds. By the way, the residential industry is not the only one that is seeing forbearance requests. In the commercial sector, in 30 days over 5,000 borrowers reached out to master servicers, requesting $100.7 billion, Continue reading
Tuesday, April 21 Apr. 21: AE jobs; LOS, comp., correspondent products; approaching webinars; Federal Reserve’s recent actions
Another stimulus package is in the headlines but no one is talking about inflation being a concern with near-term oil futures prices actually below zero. Oil producers are in a tight spot. And when in a tight spot it is important to panic. Uh, I mean, not panic. It is nice to talk about exit Continue reading
Monday, April 20 4/20: LO, AE jobs; automation, non-QM products; forbearance primer: loans must be repaid
As oil prices plummet this morning, while in captivity, uninterrupted sleep is a good thing. I know for a fact that the staff of the Mortgage Bankers Association, including President Bob Broeksmit, is not getting much of it. It is important to be united in the industry’s discussions with politicians and regulators. The MBA has Continue reading
Saturday, April 18 Apr. 18: Shifts in thinking & current trends: why pay rent? Advice for every LO; economic stimulus riddle
Things are sure changing fast, and I am not talking about forbearance or underwriting guidelines. Financial service companies of all types are re-evaluating paying rent on large commercial spaces, and paying for the depreciating furniture that goes into them, and thinking about scaling down into workspaces that allow employees to visit once a week rather Continue reading
Friday, April 17 Apr. 17: AE, LO jobs; efficiency product; webinars & events; CFPB HMDA news; Agency, investor, & vendor changes continue
While in captivity, watching the time, and waiting for release, can seem like forever. We’re always waiting for something, whether it is the CFPB rolling out its proposal for new non-QM guidelines near the end of May, or Ginnie rolling out eNote and eSignature capabilities, hopefully before then. Lenders are waiting for the legal teams Continue reading
Thursday, April 16 Apr. 16: AE jobs; appraisal, sales, processing products; training & webinars from home; vendor tidbits
Unlike 2008, when, arguably, the lenders, banks, and investment banks, via lending & underwriting policies and lax securitization procedures, were the villains and scapegoats, this time around banks and lenders can help save people. We are not the villains. And while I’m at it, health care workers and those in the food service, regardless of Continue reading
Wednesday, April 15 Apr. 15: Appraisal jobs; construction, broker, appraisal products; partial & temporary appraisal delay for banks
While in captivity sometimes it is difficult social distancing. Working from home, and having video meetings, takes some getting used to. I was telling my cat Myrtle about a service that inserts a goat or llama into your Zoom call for $100. As I was placing her line-caught halibut cheeks into her bowl, I thought, Continue reading
Tuesday, April 14 Apr. 14: LO jobs; broker, benchmarking, doc products; jumbo & specialty products continue to crumble; 3.74% loans in forbearance
Bill M. sent, “It’s not at all boring to stay in the house. But how come one bag of rice has 22,373 grains and the other bag 24,201?” Yes, things have changed. A pal wrote to me yesterday saying, “My sex life is like a Ferrari.” I reminded him that he doesn’t have a Ferrari. Continue reading
Monday, April 13 Apr. 13: LO jobs; SBA PPP, processing products; Ginnie’s Issuer assistance; banks’ stress test changes; Agencies consider forbearance policies?
It was a rough weekend. The still in our basement blew up, throwing potatoes everywhere and setting us back weeks. That happened just as I was sending someone an email how bank balance sheets can hold only so much jumbo residential production, and if there isn’t a lot of non-Agency MBS demand, and if the Continue reading
Saturday, April 11 Apr. 11: Refunds from auto insurance companies? Trends in eating & drinking & travel; One mortgage explanation
The coronavirus has turned us all into dogs. We roam the house all day looking for food. We’re told “no” if we get too close to strangers. And we get really excited about car rides. Interestingly, mortgage worker productivity not only has not suffered, but many are reporting that their staffs are actually being more Continue reading
Friday, April 10 Apr. 10: U/W jobs; broker, eTitle, productivity, digital products; upcoming events from home (you’ve got the time, right?)
While rumors swirl of the JPMorgan warehouse line requiring a minimum credit score of 700, and any loan on the line longer than 3 weeks being hit with a 15% haircut, obviously hitting non-bank lenders, in captivity it is important to keep your temper in check. One good thing about everyone staying home is that Continue reading
Thursday, April 9 Apr. 9: AE, Ops, LO jobs; servicing, appraisal, eClose products; Agency, USDA, investor, lender changes aren’t stopping
As the market looks at this morning’s Federal Reserve huge aid package announcement, while in captivity/quarantivity, testing yourself is important. Someone told me this week, “Hey, we’re trying to stay alive, not sober and skinny! I’m well on my way to putting on my ‘quarantine 15’ or my ‘Covid 19.’” I never realized how much Continue reading
Wednesday, April 8 Apr. 8: Appraisal, broker, SBA PPP, correspondent products; lender eligibility for SBA PPP loans; Dir. Calabria said what?
While in captivity it is important to keep calm. “Many parents are discovering that the teacher was not the problem.” One of the kids next door phoned in a bomb threat to his own mother! Speaking of home life, when I’m in a rascally mood, after my dog eats and wanders off, I will put Continue reading
Tuesday, April 7 Apr. 7: Training, warehouse, broker products; webinars everywhere on everything; Mr. Cooper’s early forbearance figures
Is there good news out there? You bet! Ying Ying and Le Le mated. That aside, Day 98 of captivity. We’ve all found out that really hot water and sudsy soap break down the protective outer layer of the virus. And I found out I have the most loving wife: Last night I woke up Continue reading
Monday, April 6 Apr. 6: Ops, broker jobs; originator, CRM, AI, recruiting products; product & processing changes continue
Twas a rough night since today it’s garbage day. I was worrying all night, “What should I wear to take it out?” Jeannette M writes, “On January 1st I thought, ‘This is my year!’ By April 1st I’m wiping my a– with a coffee filter. No clue that this was coming.” Aside from science fiction Continue reading
Saturday, April 4 Apr. 4: Letters & updates on working from home, our industry, the economy; alcohol & trucking skyrocketing; lock policy shifts
Whoever said that one person can’t change the world never ate an undercooked bat. If you want to make the gods laugh, tell them your plans. What kind of plans did you have for your company or business as 2020 began, seemingly four years ago? It’s been a long year during the last month, even Continue reading
Friday, April 3 Apr. 3: LO jobs; appraisal, credit, doc, broker products; major jumbo changes; delay in servicer rescue?
While in captivity it is important to focus on the friends you’ll see when you’re released. Your borrower doesn’t want the fuss and muss of typing up their own forbearance letter so they don’t have to make payments on their federally backed mortgage? Don’t worry: someone has created a form letter. The press focuses on Continue reading
Thursday, April 2 Apr. 2: LO, call center jobs; appraisal, broker, QC products; industry shifting programs, underwriting, pricing, & execution
Yesterday I decided to put thoughts of SRP values plummeting, and EPO & EPD penalties being enforced, out of my mind and get some exercise. My cat Myrtle had a mix of curiosity and disdain while watching me do my the 90-second yoga class on YouTube, which is about all my body can handle. “Come Continue reading
Wednesday, April 1 Apr. 1: AE, LO, Ops, FHA jobs; cap. mkts., broker, marketing, training products; servicing trends; processing & u/w changes continue
“I hadn’t planned on giving up quite this much for lent.” So true. It is a different world than only a month ago. Of course rates are going to stay at these levels for a long time. But rate sheet prices are disconnected from MBS prices, which are disconnected from Treasury prices. Those of you Continue reading
Tuesday, March 31 Mar. 31: Business opportunity; marketing, cybersecurity, eClosing products; shifts in LTVs, credit, pricing, appraisal policies rampant
Remember when all we had to worry about was Amazon taking over mortgage banking? The sun hits different here in March – see joke at bottom. (Thirty days hath September, April, June, and November. All the rest have thirty-one except March which has 8,000.) Unintended consequences: It’s a fascinating case study, among millions of others, Continue reading
Monday, March 30 Mar. 30: AE, reno, LO jobs; sales, broker products; California MBA weighs in; deep capital markets dive: Ginnie acts
After a long time in captivity with the same people, one may become, uh, less than enamored with their pals. “12th day of self-isolation and it’s like Vegas in my house. We’re losing money by the minute, cocktails are acceptable at any hour, and nobody knows that time it is.” How’d you like to have Continue reading
Saturday, March 28 Mar. 28: Letters on staying safe & sane while working from home, appraisals, and being bullish on IMBs
What a long year this week has been from talk of Federal prisoners being released to home confinement to sports fans morning the loss of the Globetrotter’s Curly Neal at age 77. “Work from home” edicts in India and the Philippines have raised cybersecurity concerns with lenders who have off-shored vital lending functions. Servicers are Continue reading
Friday, March 27 Mar. 27: LO, Ops jobs; broker, credit products; IRS/tax transcript, jumbo, MISMO, RON changes across the biz
While in captivity it is important to have good communication. (Early anecdotal chatter indicates that the remote workforce has signs of improved productivity!) In the Northwest, Banner Bank’s mortgage group celebrated working from home with a short YouTube video of everyone’s home office (one is in the garage – bumper to bumper every day!) Thank Continue reading
Thursday, March 26 Mar. 26: LO & Ops jobs; digital, compliance, servicing, cap. mkts. products; commercial & state bond products next to be impacted?
While in captivity it is important to keep busy. Every day people ask me where I think rates will be next week. Here you go: my forecast! After you check out that graph, it brought to mind that Kris W. sent, “For the third time this week I’m buying enough booze for the next two Continue reading
Wednesday, March 25 Mar. 25: LO, CFO jobs; doc, broker, eClosing products; locking, documentation, product changes roll on; PennyMac yanks bulk AOT
While in captivity it is important to have a hobby. “Dad, why is my sister named Paris?” “Well, uh, that’s because we were in Paris when she was conceived.” “Okay, that makes sense. Thanks!” “No problem, Quarantine.” Prince Charles, Jackson Browne test positive? Yup. People are adapting. Local strip club shuts down? Time for the Continue reading
Tuesday, March 24 Mar. 24: Sales job; sales, digital, processing products; FAM, QLMS, Mr. Cooper changes; appraisal & VVOE clarity; servicing smacked
While in captivity it is important to have discipline. Independent mortgage banks exercised discipline and had a great 4th quarter, profit-wise, but that was so… “then.” (Costs were $7,500 per loan.) Looking at the present, many are beginning to ask an ugly question: “Does the worldwide economic harm, spiraling out of control, outweigh the potential Continue reading
Monday, March 23 Mar. 23: COO, AE jobs; anti-fraud, servicing products; borrower satisfaction survey; corona-driven product shifts
While in captivity it is important to have a goal. And remember, “It’s only quarantine if it comes from the quarantine region of France; otherwise, it’s just sparkling isolation.” YouTube views of yoga classes have skyrocketed. Families are arguing over the dog, the hat, the canon, the shoe, or the iron. As millions of women Continue reading
Saturday, March 21 Mar. 21: Sample of vendor & tech updates; changes in home buying; Finastra & ransomware?
I receive many thoughtful notes throughout the week. For example, “Rob, you mentioned Tom Hanks in your Friday commentary. He survived four years on an island alone as a castaway, a whole year inside an airport without being able to leave, caught AIDS in Philadelphia, fought in WW II and saved Private Ryan, fought in Continue reading
Friday, March 20 Mar. 20: LO, remote Ops, AE jobs; CRM, , bid tape, warehouse products; non-QM sector walloped – why?
Today, with the official start of Spring, and while the industry waits for the FHFA to answer concerns about appraisals, VVOEs, and other issues, there are other pressing questions. “Rob, does my wife quarantining on the 1st floor and me staying on the 2nd floor count as ‘social distancing’? Or ‘conscious uncoupling’?” You’ll have to Continue reading
Thursday, March 19 Mar. 19: LO jobs; digital, notary, QC, broker products; developments in warehouse, Agency, eClosing, & cap mkts
“I’ve started investing in stocks: beef, chicken, and vegetable. One day I hope to be a bouillonaire.” There might be a few less “bouilonaires” owning PennyMac stock after yesterday. If you want to know what the market thinks of lenders/investors/servicers, public companies like PennyMac are a bellwether. And its price was down yesterday over 40 Continue reading
Wednesday, March 18 Mar. 18: AE jobs, exec searching; broker, appraisal, eClosing products; coronavirus-driven operations changes everywhere
Thank you to Susan M. for, “Your Grandparents were called to war. You’re being called to sit on a couch. You can do this!” I was speaking with an acquaintance yesterday, and I asked him if he was doing “self-quarantine.” He replied, “Of course! ‘Shelter in place,’ ‘self-quarantine,’ why wouldn’t I? Like yesterday, after I Continue reading
Tuesday, March 17 Mar. 17: Sales job; Construction, non-QM products; sales webinars; Info on VVOEs, e-Notes, e-recordings
“I’ve washed my hands so many times now I can see the answers to a math test I took in 1978!” We’re going through a test of the financial system. I love it when politicians, or anyone, whine about the government being involved in the financial services sector, or housing finance. You’re telling me “private Continue reading
Monday, March 16 Mar. 16: Compliance, LO jobs; LOS, VA, non-Agency products; Early Payoff trends; deep dive on recent mortgage rate movement
Gosh, what should we talk about today? If there’s a “winner” with the coronavirus, it is dogs. They are experiencing unprecedented levels of people being home with them! Temporary state & county government shutdowns wreaking havoc on recording deeds for funded loans (can you say, “gap insurance”?)? Companies doing what they can to have employees Continue reading
Saturday, March 14 Mar. 14: Notes on handling capacity, TRID violations, FHA & FHFA on coronavirus; state lending law changes coast to coast
The production and operations staffs of every lender across the nation are “going bonkers.” Responsible senior managers and owners are doing things they never thought they’d have to do like raising margins to limit volume, and asking personnel to “play nice” with each other. Of course it is not in a loan officer’s DNA to Continue reading
Friday, March 13 Mar. 13: Ops, management jobs; broker, DPA, tech products; coronavirus tips: NAR’s report & employer webinar
Here’s an economic tidbit for you. The Port of Los Angeles is reporting a 22.9% decrease in cargo volumes for February compared to 2019, with expectations for continued softness in March. And plenty are intrigued with the news that a Brazilian official who met with both Donald Trump and Mike Pence has tested positive for Continue reading
Thursday, March 12 Mar. 12: Ops, sales management, production jobs; broker, cap. mkts. products; corresp. & wholesale news
Here’s a sign of the times. “Rob, I would think many lenders are for sale; they just don’t know it yet. EPOs, servicing write-downs, renegotiations, margin calls… If early pay off penalties are assessed for any loan that pays off in less than six months, and the industry was doing about $2 trillion a year, Continue reading
Wednesday, March 11 Mar. 11: Ops, LO (incl. SBA) jobs; marketing, broker, non-QM products; training & events, many over the phone
First, a note of clarification. Yesterday’s commentary mentioned that there was talk of “warehouse banks temporarily suspending funding refi biz.” I received several notes stating that while one warehouse bank has done this, others are totally open for business and eager to continue to support their clients, and emphasizing the need for a trusted partner. Continue reading
Tuesday, March 10 Mar. 10: Sr. sales job; processing, marketing, tech products; disaster updates; rate volatility continues
There sure is a lot going on out there! There is talk of warehouse banks temporarily suspending funding refi biz, lenders charging lock fees, lenders & vendors restricting visits from outside personnel, avoiding RESPA violations but “pushing off” difficult loans or borrowers that are shopping rates, and lenders making their pricing more aggressive for purchases Continue reading
Monday, March 9 Mar. 9: Tech, appraisal, cap. mkts jobs; broker, title, recruiting products; EPOs, margin calls, appraisal delays, sticky mortgage rates…
As everyone grapples with changing the clock in their car… The world’s shortest horror movie? At 14 seconds, here you go. (Thanks to Kevin K. for that one.) I was surprised by a question I received in Chicago last week. “Are you hearing of home sellers holding off on open houses not wanting to have Continue reading
Saturday, March 7 Mar. 7: February lock data; LIBOR transition update, and primer on SOFR & LIBOR differences
The Federal Financial Institutions Examination Council (FFIEC) updated guidance identifying actions that financial institutions should take to minimize the potential adverse effects of a pandemic. Pandemic? That is normally associated with science fiction movies or the Spanish flu in 1918. Amazing to pause and think about what is happening out there. Whether it is from Continue reading
Friday, March 6 Mar. 6: Sales, AE, LO jobs; marketing, doc products; lender & real estate vendor tidbits
Yesterday, as I was working on my commentary, I looked down. There I was, wearing my WAMU sweatshirt over my Lehman Brother t-shirt, sipping cocoa out of my Countrywide mug, with my World Savings shorts and IndyMac bike socks. And I thought to myself, “Dang this industry sure put out a lot of wearable swag!” Continue reading
Thursday, March 5 Mar. 5: U/W, LO, accounting jobs; tax transcript product; remote staff study; primer on coronavirus & Fed cuts
“Spring Forward” really needs to be a Friday at 4PM thing. At this point most lenders would like another hour instead since most have their hands full with servicing write-downs, EPOs, managing their pipelines without losing customers, and being pleased with any efficiencies put into place in the last year. They’re focused on their employees, Continue reading
Wednesday, March 4 Mar. 4: Corresp., LO, new wholesaler AE jobs; warehouse, research products; primer on rate movements
March 4th: the only day that’s also a command. Lenders across the nation will be seeing plenty of “commands” in their in-boxes asking them for money in the form of Early Pay Off notices seeking money. EPO penalties are fees that originating lenders must pay whenever a loan pays off based on the contract that Continue reading
Tuesday, March 3 Mar. 3: LO jobs; processing, broker, correspondent products; lenders springing up; world central banks “ready to act”
Overhead on the phone line. “Uh, hello Morgan Stanley? Remember that $20 million MBS we sold you last month? Can we just forget that ever happened? Or renegotiate it?” Some LOs wish they could do that with locks. Lenders across the nation are swamped; slicing profit margins to the bones is the last thing on Continue reading
Monday, March 2 March 2: Credit, controller, LO jobs; broker, HELOC products; coast to coast events & training; 1.07% 10-year!
Huh? You don’t know what a “Gig Line” is? Someone’s buttons, belt buckle and zipper should all line up in the Gig Line. (See? And you say you never learn anything from this commentary!) Something else that is lining up is the manpower of lenders, especially if a lender has the ability to do it. Continue reading
Saturday, February 29 Feb. 29: Notes on debt/savings, FHLB membership, and U.S. demographics: who has the highest property tax?
For me the last few weeks have included travel in Louisiana, California, Arizona, North Carolina, Florida, and Nevada. (With all that time in a flying metal tube, I’ve finally advanced to doing the “medium” difficulty Sudoku puzzles!) The mood is good, 2020 is off to a fine start, and behind the scenes the industry is Continue reading
Friday, February 28 Feb. 28: Encompass, Ops, LO jobs; broker, credit, compliance products; M&A; coronavirus continues to drive markets
We’re almost at the end of February already. Mortgage bankers are funding loans, throwing axes, working overtime, learning about skydiving, all kinds of things! In a little over a week (March 8) many states will change their clocks, “springing forward” and once again people will wonder, after “losing” an hour, why the United States keeps Continue reading
Thursday, February 27 Feb. 27: Comptroller, Ops, LO jobs; pooling, non-QM, appraisal products; CFPB, audit, exams, & compliance news
I was telling my cat Myrtle that U.S. lenders are continuing to bask in the glow of a great 2019 and a start to 2020 (with March and April now looking very good, given rates), but that one of the big worries is about branches and referral partners being picked off, either through acquisitions or Continue reading
Wednesday, February 26 Feb. 26: LO, AE jobs; ops, sales, language, broker tools; the GSE reform march continues; two 2020 Fed cuts?
Remember the concerns of chaos prior to the UK leaving the European Union? Despite Brexit, the average London house prices increased 2.3% in 2019, the highest since 2017. In the rest of England, home prices were up 2.2% y/y. In this country, lenders’ pipelines are swamped as a surge in coronavirus cases outside China (highly Continue reading
Tuesday, February 25 Feb. 25: CFO, AE jobs; relationship, broker, correspondent products; credit shifts; Moody’s weighs in on non-QM
People have a choice in financing their home: debt or equity. (Debt, of course, is what supports our industry. Equity, however, has been experimented with for many years, with varying degrees of success. Here’s the latest on that. Skeptics say, “It’s all fun until the market heads south.) People don’t have a choice about eventually Continue reading
Monday, February 24 Feb. 24: Attorney, controller, LO jobs; TPO team available; compliance & servicing events; coronavirus dominating markets
With the coronavirus driving worldwide markets and politics dominating the headlines, who doesn’t like “easy?” Easy: Krispy Kreme is launching donut delivery. Thank you to Ken S. who passed along this report, brought to us by our friends at the NAR (or is it just “NAR”?), on the easiest places to buy a house this Continue reading
Saturday, February 22 Feb. 22: Letters on pair offs, automatic valuation; LIBOR/SOFR and Freddie news; something for animal lovers
Although Congress never actually voted on it, today is viewed as National Margarita Day. Because one fellow promoted it. It would be nice to have someone out there promote a law that Uber and Lyft cars are required to have front license plates. But I’ll save that rant for another day. On to mortgage stuff! Continue reading
Friday, February 21 Feb. 21: LO, servicing jobs; underwriting, appraisal products; lenders & vendors’ focus on borrowers
Yesterday’s commentary mentioned that there were “rumors” of Citi re-entering the correspondent channel. I apologize for any confusion. Readers should understand that Citi has never exited the correspondent channel, and the rumors revolve around Citi beefing up its presence in that area. In addition, the comment about pair off fees was hearsay and certainly not Continue reading
Thursday, February 20 Feb. 20: HELOC, construction, compensation, & title products; lender’s digital borrower products
Morgan Stanley buying E-Trade is causing some chatter this morning, and last night’s Democratic debate had plenty of chatter. (Some would use a stronger term than “chatter.” By the way, here’s a quick, easy quiz about which candidate agrees with your views.) Our industry is filled with “chatter,” the latest example being rumors of PHH Continue reading
Wednesday, February 19 Feb. 19: Compliance, servicing, renovation, broker products; shifts in Freddie & Fannie; coronavirus/economy
Everyone is looking to increase production and cut expenses. MI companies, for example, are re-focusing on their highlighting their value proposition while evaluating their cost structure: what good does it do to have personnel calling on branches when many loan officers work from home and rarely go into the office? For lenders, the MBA’s calculations Continue reading
Tuesday, February 18 Feb. 18: LO jobs; broker, sales, processing products; coast-to-coast training & events for Feb. & March
Odd times that we’re living in. Here in New Orleans (“Anything worth doing is worth overdoing!”) some of the talk is about the Boy Scouts of America declaring bankruptcy due to sex abuse lawsuits, some of the talk is about the coronavirus (“How Epidemics Impact Lending”), but the primary conversation topic is about how most Continue reading
Monday, February 17 President’s Day: Vendor mania
Did you hear about the population in Ireland? It’s Dublin! In the United States over a quarter of the nation’s population lived in just three states in 2019: California, Texas and Florida. And half of the nation’s population is concentrated in the 10 largest states: California, Texas, Florida, New York, Pennsylvania, Illinois, Ohio, Georgia, North Continue reading
Saturday, February 15 Feb. 15: Letters on warehouse lending, non-bank lenders; Fannie’s results & capital markets activities
It is important to keep things in perspective. A loan officer will grouse about a price of a non-QM loan being .250 worse than a competitor’s. But Australia’s bush fires burned an estimated 72,000 square miles, the size of South Dakota, killing at least 34 people and an estimated one billion animals. (The photos of Continue reading
Friday, February 14 Feb. 14: AE & LO jobs; servicing, 203(k) products; conventional conforming underwriting shifts
Does anyone out there care that credit-card debt rose to a record $930 billion in Q4 2019? (Total mortgage debt hit $9.56 trillion.) How about that the origination cost of over $8,000 per loan hits low balance loan borrowers more than high balance borrowers? Do you break out your “tech spend” per loan? Has it Continue reading
Thursday, February 13 Feb. 13: Sales, LO jobs; subservicing, broker, originator products; vendor alliances increasing
Do we really have nine more months until the actual election? While you’re answering questions, does someone in your office speak Spanish? Tagalog? Mandarin? Canine? The minority homeownership rate rose to 48.6% year over year in the fourth quarter of 2019, up slightly from the fourth quarter of 2018, according to new data from the Continue reading
Wednesday, February 12 Feb. 12: AE, vendor mgt., LO jobs; sales, marketing, broker products; team sponsor wanted; American borrowing stat
Clients want LOs to be subject matter experts on products and current events. But what do lenders know about their LOs, their originator turnover rate, or what the age bracket is of the highest producing originators? More originators change jobs in the fourth quarter than any other quarter, about 36 percent. Of that 36 percent, Continue reading
Tuesday, February 11 Feb. 11: MLO jobs; non-QM, marketing, digital products; shifts in non-conforming and ATR, QM Patch thinking
In 1988, there was only one city in America where the average home price was over six times the annual median income. Today there are more than twenty. Experts think that hat number will only increase as home values continue upward in the nation’s largest 100 cities. Thirty years ago, you could buy a home Continue reading
Monday, February 10 Feb. 10: Marketing, LO jobs; recruiting, VA, compliance products; credit study & underwriting shifts
The U.S. is divided up into regions. Have you ever noticed that we say, “Out West” or “Back East” – a holdover from centuries ago. It’s never, “Back West” or “Out East.” Historically, new housing nationwide led to more local shopping, and thus higher local sales tax revenues. But due to online shopping, that relationship Continue reading
Saturday, February 8 Feb. 8: Letters on cybersecurity, increasing LO productivity; Fannie & Freddie weigh in on LIBOR move
The rumor that tomorrow is National Pizza Day is true. In our business there are always plenty of rumors to go around. The latest involves, giving rate engines and automation, one large private MI company buying another, like Radian purchasing Genworth. (I’m not saying those are the two, and picked two names at random.) Remember Continue reading
Friday, February 7 Feb. 7: AMC, underwriting, attorney jobs; marketing, VA products; FHA, VA, USDA lending changes
I can’t predict the future, don’t even know what I’m doing for lunch today, but in October this commentary suggested that with the MOU inked in October between HUD and the Department of Justice centered on alleviating some of the uncertainty regarding the False Claims Act penalties, the big banks would take a good look Continue reading
Thursday, February 6 Feb. 6: Ops, LO jobs; non-QM, CRM products; from processing to MI shopping: vendor news
For years there has been name confusion between Fannie Mae and Fannie May. Name overlap isn’t limited to those two; MERS, familiar to mortgage bankers everywhere, is not the same as MERS (Middle East Respiratory Syndrome). And trying to find great employees isn’t limited to mortgage banking. Lawyer recruiting has come a long way from Continue reading
Wednesday, February 5 Feb. 5: MLO jobs; training, digital, subservicing products; events & training coast to coast
Let’s take any brokerage or small mortgage banker, 10 loan officers doing an average of 3 loans per month for 30 loans/month. The company has the operations staff to handle the current amount, probably more. Does it make more financial sense to go out and hire a recruiter and/or pay a signing bonus for another Continue reading
Tuesday, February 4 Feb. 4: MLO jobs; real estate, non-QM, vendor products; conventional conforming product shifts
Fitness instructor: “Have you ever done a marathon?” Me: “You mean like on Netflix?” Both take stamina (of some sort), as does merely looking at the U.S. Debt Clock website that Kim G. reminded me continues to click along. Originators and branch managers will tell you that recruiting MLOs and retaining customers are both marathons, Continue reading
Monday, February 3 Feb. 3: SVP, AE, LO jobs; subservicer white paper; originator census; FHFA, Freddie, Fannie on the move
“I boarded a Southwest flight over the weekend, sat down, sneezed, and muttered something in Mandarin. I had the whole row to myself for entire flight. It was great!” Sometimes things aren’t what they seem. When you “borrow” a trillion dollars a year, regardless of administration, it gives every American over $3,000 extra per year Continue reading
Saturday, February 1 Feb. 1: From lender behavior to underwriting to processing to securities to weed, regulators touch it
“I don’t know if the news made it to you today, but they found another disease piggybacking on the reported disease. It seems that Corona-virus goes better with Lyme disease.” “Ahead of the Super Bowl, it is rumored that Corona offered $15 million to change the coronavirus name to budlightvirus.” There’s a lot of wit Continue reading
Friday, January 31 Jan. 31: MLO jobs; marketing, broker, pricing products; rates, the Fed & the coronavirus
Interesting times. Our CFPB has a new Chief Experience Officer. United Wholesale has an ad in the Super Bowl, recommending brokers to consumers. Experian also has an ad, and Quicken Loans is a sponsor. Early estimates have $2.4 trillion in home loans funding last year, the most since 2006, pre-CFPB, pre-ATR. In other statistical news, Continue reading
Thursday, January 30 Jan. 30: MLO, management jobs; audit, AMC, underwriting, DPA tools; primer on prepayments and EPOs
What if you bought into an investment thinking you were going to earn a decent return for 30 years and instead it paid off in four months? Not only that, but you paid 103 for it, only received 100 in four months, and now had to invest the money and earn a lower return? You Continue reading
Wednesday, January 29 Jan. 29: LO jobs, business opportunity; LOS, broker products; capital mkts.: the Fed, coronavirus, and trade
My cat Myrtle never paid much attention to Brexit, up until recently a hopeless parliamentary quagmire. (“Brexistential fear”: An irrational fear that Brexit will lead to the end of the world as we know it.) Brexit no longer moves bond markets, nor Myrtle, and it now looks as if Britain will withdraw quite uneventfully from Continue reading
Tuesday, January 28 Jan. 28: LO jobs; CRM, subservicer, cost-cutting products; customer satisfaction awards
Loan officers and lenders know that the population in the United States continues to shift, and this creates some continued great opportunities to increase business. Put another way, it doesn’t matter what rates are when a half a million people are moving into your state every year and many need financing. The Texas Board of Continue reading
Monday, January 27 Jan. 27: AE, LO jobs; DPA, underwriting products; credit trends; coronavirus & world events moving rates
Remember when there actually was an “average,” and you weren’t afraid to say that someone was average? Now everyone is “above average.” (Did my sarcasm font come across?) I remember when they weren’t, and also remember when underwriters learned “the five Cs of credit”: capacity, capital, conditions, character, and collateral. In the “capacity” category the Continue reading
Saturday, January 25 Jan. 25: Snapshot of state lending laws changing & evolving; Cordray & California: 50 mini CFPBs?
It is important for people in our biz to remember the ultimate goal: to help finance home ownership by guiding the client through the process. Many lenders have slogans to that affect. Fairway Independent Mortgage’s, for example, is, “We make the home loan process as simple as possible by guiding you through every step.” With Continue reading
Friday, January 24 Jan. 24: Ops, client engagement, sales, LO, AE jobs; sales, API products; LO resignation letter
Yes, the change in FICO scores garnered some attention, but much of the focus is on Wells Fargo which just can’t stay out of the spotlight… for all the wrong reasons. Ten days ago we learned that the Bank had $2.9 billion of income in the fourth quarter in 2019 (and $60 billion of residential Continue reading
Thursday, January 23 Jan. 23: MLO jobs; call mgt., non-QM, trading products; comp survey; moderate U.S. economic expansion continues
Did you know that you can vote by smart phone (smartphone? Smartphone?) in Seattle? Did you know that less than 20 percent of the world’s population has ever taken a single flight? (U.S. citizens? About 50%.) Did you know that many economists have forecast that this year will bring neither a recession nor outstanding growth? Continue reading
Wednesday, January 22 Jan. 22: MLO jobs; sales, warehouse, broker products; M&A with lenders & vendors; coronavirus & bonds
What does $4.6 billion dollars buy you these days? A couple casinos: a Blackstone-sponsored JV is paying that for MGM Grand and Mandalay Bay in Las Vegas. For that you’ll receive the income from 9,743 rooms, approximately three million square feet of meeting space, and approximately 300,000 square feet of casino space across 226 acres Continue reading
Tuesday, January 21 Jan. 21: Sales jobs; 2nd mortgage, non-QM, comp, digital tools; population shifts worth LOs noting
Everyone is aging, right? “I finally did it! I bought a new pair of shoes with memory foam insoles. No more forgetting why I walked into the kitchen!” People change, populations change, and loan officers must adapt. economists have revised 2020 growth prospects higher and revised down recession probabilities, many economic indicators are positive: consumer Continue reading
Monday, January 20 Jan. 20: What MLOs made in 2019; primer on mortgage rates & pricing: why is my rate sheet pricing different?
The job interview. Job Interviewer: “Where do you see yourself in 5 years?” Me: “I would say my biggest weakness is listening.” People in our biz continue to interview, and plenty of loan officers, branches, and companies are making moves out there as a remarkable 2019 wrapped up and 2020 dawned. Are you keeping LOs Continue reading
Saturday, January 18 Jan. 18: Letters on W-2 and the S.A.F.E. Act; current cybersecurity tips – my car’s collecting what data on me?
This week the commentary discussed the compensation of mortgage loan originators via W-2 due (versus 1099) to various rules and regulations. The piece prompted Brad Hargrave with Hargrave Rosenthal to send, “I wanted to offer a few additional comments to round out Melissa’s insightful analysis of the W-2/1099 debate currently raging in the State of Continue reading
Friday, January 17 Jan. 17: AE, DTC jobs; 2nd, renovation products; after DFSNY letter, CEOs can’t ignore LIBOR transition
I’ve gotta hand it to those writers who put out listings for real estate agents. Maybe if I had a bunch of money I could live in a “secluded retreat” or an “enchanted villa.” I have never lived in a place described as a “retreat,” having stunning or remarkable views or panoramic vistas in a Continue reading
Thursday, January 16 Jan. 16: MLO, AE, HUD jobs; borrower satisfaction report; misc. vendor updates
For folks who like numbers and trends, according to the U.S. Census Bureau’s national and state population estimates released in December, 42 states and the District of Columbia had fewer births in 2019 than 2018. Natural increase, or when the number of births is greater than the number of deaths, dropped below 1 million in Continue reading
Wednesday, January 15 Jan. 15: AE, LO, sales jobs; retention, fraud prevention tools; events coast to coast and on your phone
We find ourselves at Wednesday already. How about some numbers for Hump Day? Years ago Arnold Schwarzenegger famously said, “Having more money doesn’t make you happier. I have $50 million dollars, but I’m just as happy as when I had $48 million.” JPMorgan Chase’s profit surged 21% in the fourth quarter, reaching $8.52 billion, while Continue reading
Tuesday, January 14 Jan. 14: Marketing, referral, pricing, sales tools; FHA, VA, Ginnie changes around the biz
There are some clever people out there creating abbreviations and acronyms. Megxit? Yes: Prince Harry and Meghan Markle exiting from certain royal duties. Remember when talking about the economic woes of PIGS (Portugal, Italy, Greece, and Spain) was all the rage? Here’s a new acronym to tuck away that has nothing to do with mortgages: Continue reading
Monday, January 13 Jan. 13: AE jobs; compliance, LO, BI tools; deep dive into W-2 vs. 1099 and the SAFE Act
Lenders, and all financial sector firms, continue to ruminate on the privacy law in California that now gives people the right to access and delete personal data companies have collected. LOs are ready and willing to delete all client information from their database, right? The law applies to any firm that has clients in the Continue reading
Saturday, January 11 Jan. 11: The importance of training in culture & retention; how a merger or acquisition works
What seems to be on the minds of readers around the nation? M&A and retaining/training personnel are among the topics. Who’s saying what? In a previous commentary, STRATMOR’s Jeff Babcock discussed the strategic benefits of two Independents merging into a single entity. Below is the second installment that describes the challenges of making such a Continue reading
Friday, January 10 Jan. 10: MLO jobs; LOS, pricing, VA products; Agency direction & future back in the news
Markets have taken the view that brief military conflicts have little long-term impact on economic trends. Gold, oil and the Japanese yen jumped after Iranian missiles hit US bases in Iraq, but capital left “safe haven” assets (like bonds) and returned to equities when it appeared the conflict would not escalate. It didn’t take long Continue reading
Thursday, January 9 Jan. 9: Marketing, Ops, sales jobs; broker, marketing, secondary mkt. products; misc. vendor news
Nobody, that I recall, predicted that 2019 would be a banner year for mortgage originators. And how about that stock market! My 401k’s balance certainly improved in 2019, yet a new report from the National Bureau of Economic Research says the cost of the trade war has been paid almost entirely by American businesses and Continue reading
Wednesday, January 8 Jan. 8: Call center jobs; people moving; pricing, broker, sales products; missiles/oil/tariffs/Brexit and mortgage rates
Hey, I want to buy my own house without the “nuisances” of a large down payment, difficult credit standards, massive debt, or long-term commitments. Out of California comes Fleq, which tells me that I can do exactly that. All I have to do is lease the property and buy/share my equity through an “Alliance.” Shared Continue reading
Tuesday, January 7 Jan. 7: MLO jobs; marketing, pricing, strategy tools; upcoming events & training run the gamut
Money attracts criminal activity. I know that isn’t late-breaking news, but here’s a scam I hadn’t heard of involving, once again, real estate and appraisers. The good news is that when a landowner permanently protects pristine land from development, they’re eligible for a charitable deduction for the “conservation easement.” The bad news is that someone Continue reading
Monday, January 6 Jan. 6: AE, LO jobs; profitability, non-QM, subservicer review products; wholesale & correspondent changes
“Rob, I know that it costs less to retain an existing employee than to train a new one. Last year companies were reportedly paying big signing bonuses, but are you hearing about outlandish retention bonuses for production staff?” Yes, I am hearing about those. And anyone offered anything unusual will often ask management, “Why aren’t Continue reading
Saturday, January 4 Jan. 4: Changes in capital markets, Agency risk transfer helping borrowers, Credit Linked Note primer
The general environment? I received this tough note from a capital markets veteran. “Mortgages have been moving toward becoming a commodity business for years. Look at TBA securities and TradeWeb. Highly compensated MBS salespeople are exiting the business; they aren’t making a tick on every bond. As more technology enters the market, the trend should Continue reading
Friday, January 3 Jan. 3: MLO jobs; pricing, broker products; M&A across the biz; credit & underwriting changes; Middle East driving rates
In state news, happy belated CCPA Day! The California Consumer Privacy Act officially went into effect 1/1, and it’s a big deal. Full compliance expected by July 1. Here’s what attorneys and “technologists” think about the potential impact of the new law this year and beyond. In other state news, house prices in 20 major Continue reading
Thursday, January 2 Jan. 2: Marketing, LO jobs; upcoming coast-to-coast training & events; who is buying MBS?
Florida, also known as “God’s waiting room,” is the nation’s third most populous state, behind California and Texas, with a population of 21.3 million. (California has about 40 million, New York, a popular trivia contest guess, has 19.5 million.) In the last nine years Florida grew 13 percent, third fastest of all states and behind Continue reading

2019 (306)

Tuesday, December 31 Dec. 31: Sales jobs; SAFE Act policies not uniform around the biz; impeachment process is not driving rates
“I can’t remember how to write 1, 1000, 51, and 500 in Roman Numerals! IM LIVID.” Some in the industry may be livid over Associated Bank’s announcement yesterday to not accept applications taken by an LO that has been granted the “temporary authority to operate.” But Associated is not the only one. More below on Continue reading
Monday, December 30 Dec. 30: Vendor/lender survey; Taxpayer First Act updates; program & processing notes; China & our interest rates
I was telling my cat Myrtle that I have a problem when people ask me what I’ll be doing tomorrow after midnight. I don’t have 2020 vision! Barring any surprises the Fed has not made it a secret that the FOMC expects to leave short-term rates where they are well into 2020. In other Fed Continue reading
Saturday, December 28 Dec. 28: Reader’s letters on the current M&A activity, the IRS fee increase, and the outlook for 2020
I received this note from “TeeGee.” As you think about New Year’s resolutions, here’s one we should all make together: resolve to insist that decades begin with the year ending in the numeral 1 and finish with a 0. For a decade to begin, we must start with the year ending with 1 (2021) and finish with Continue reading
Friday, December 27 Dec. 27: AE jobs; affordable lending, first-time buyer products; updates on the new URLA and conv. loan amounts
If Freddie Mac and Fannie Mae didn’t exist, would we create them now? Turkey will establish a new mortgage financing firm, Birlesik Ipotek Finansmani AS, similar to U.S.’s Fannie Mae, that will issue and sell mortgage-backed securities to facilitate housing ownership for lower income citizens. F&F certainly serve a purpose in the United States in Continue reading
Thursday, December 26 Dec. 26, Boxing Day: Compliance job, 2020 forecasts; news from Ginnie, USDA, investors following FHA & VA changes
“I hate it when people ask me what I’ll be doing in six days. Come on folks. I don’t have 2020 vision.” You can be guaranteed that the Republicans will do what they can to prevent a recession in this election year. And I don’t think that refis will continue to account for 63 percent Continue reading
Tuesday, December 24 Dec. 24: Vendor partnership; repo activity, household debt, tariffs, and shelter costs in the capital markets
Where are the well-known Democratic presidential hopefuls on housing issues? As with most politicians, it’s a little vague. While we’re on politics, regardless of gender, Senators make $174,000 per year, plus lots of benefits. The President’s comp is $400k, if they take it, plus even more benefits, also regardless of gender. While workers with a Continue reading
Monday, December 23 Dec. 23: JV, compliance, digital products; customer service trends & news; capital markets steady
There sure are lots of people, borrowing lots of money, for lots of houses out there! And the bump in activity is coming from non-bank lenders and is not coming from non-QM sources since government-related mortgage programs accounted for all of the growth in single-family mortgage servicing during the third quarter of 2019. Per Federal Continue reading
Saturday, December 21 Dec. 21: IRS clarifies Taxpayer First guidelines; letters on politics & the election, sales management
Happy Winter Solstice! Culture and training Last week my commentary had some information about training, and Bob Masur wrote, “Why do so many people seem to think training is the best or (sometimes) the only solution to a performance problem? What about management’s responsibilities to set performance expectations, provide feedback, ensure needed tools and resources are Continue reading
Friday, December 20 Dec. 20: U/W, sales jobs; LOS, training, digital products; what is, or isn’t, moving mortgage rates
As we zip toward the end of the decade, do you want the U.S. economy to be “Hotter than the hinges of hell?” Probably not, as rates would shoot higher. Do you want rates to plummet? Probably not, as that would indicate a grim U.S. economy. Like the weather, the economy is something people talk Continue reading
Thursday, December 19 Dec. 19: MLO jobs; digital, broker, correspondent products; vendor updates & products; holiday trading in bond market
Sure the world noted that Sweden’s central bank hiked its rate to 0%. But in this country, Michigan is making mortgage news. First, United Shore/UWM had a record year and gave away 13 Cadillacs at its Christmas party. Then came the news that Quicken Loans became the first mortgage lender to complete the mortgage process Continue reading
Wednesday, December 18 Dec. 18: LO, AE jobs; sales, broker, regulatory tools; lenders react to Taxpayers First Act paperwork; rates quiet
My background is in capital markets, with a razor-sharp mind for figures. Not anymore. Remember when you’d have dozens of phone numbers memorized? Now the only phone number I remember is 867-5309, Jenny’s. (For anyone under the age of 40, or over 65, ask someone about the reference.) For anyone with a sharp mind predicting Continue reading
Tuesday, December 17 Dec. 17: Ops, LO jobs; profitability, organizational, non-QM tools; comp survey; events; co-branding & JVs rampant
Mark Twain famously said, “When I was a boy of 14, my father was so ignorant I could hardly stand to have the old man around. But when I got to be 21, I was astonished at how much the old man had learned in seven years.” Many lenders have learned a lot about partnering Continue reading
Monday, December 16 Dec. 16: AE, LO jobs; non-del, u/w, , analytics, CRM tools; jumbo & non-QM trends: who’s doing what
No one wants their labors to go to waste, whether you’re an underwriter who is over-ruled by the head of credit, or an MLO who finds out your approved borrower is going to a competitor. What about designing and building a major amusement park in Louisiana quickly abandoned? Let’s just say nature bats last. Employment Continue reading
Saturday, December 14 Dec. 14: Letters on employee performance, HFAs, disposable income, LIBOR; HR Christmas party humor
We have one week until the Winter Solstice, after which we’ll begin seeing more sunlight every day in the Northern Hemisphere. That’s good news! But with the holidays, things are quieting down as they always do in our business. The 2019 mortgage conference season is pretty much over, and with it the sight of middle-aged Continue reading
Friday, December 13 Dec. 13: Marketing, consumer direct jobs; correspondent, processing, broker products; deep capital markets dive
While the markets are talking about Boris Johnson’s victory in the U.K. (“get Brexit done”), here’s your trivia of the day: Every month that starts on a Sunday has a Friday the 13th. And did you know that research on humans shows that in the short term, we tend to regret actions more than inactions. Continue reading
Thursday, December 12 Dec. 12: LO, Ops jobs; broker, back-office, non-QM, AOT products; upcoming events; rates: yawn…
We never see the headline, “Psychic Wins Lottery!” No one has a crystal ball, but originators often ask their capital markets staff about the direction of rates, whether it is, “Should I lock today?” or “Why can’t we guarantee a builder a rate nine months from now?” I bring this up because plenty of lenders Continue reading
Wednesday, December 11 Dec. 11: Sales job; retention, reno, non-QM products; servicing biz primer & prepayment speeds
Aloha! As any servicer with borrowers in Hawai’i knows, if you’re going to ask, “Is Ms. Keihanaikukauakahihuliheekahaunaele* home?” or “Do you live on Kaalualu Waiohinu Rd.?”, you’d better be able to pronounce them. In the 1960s, fewer than 2,000 people spoke Hawaiian fluently, just a handful of whom were children. That changed over the next Continue reading
Tuesday, December 10 Dec. 10: Secondary, LO jobs; leads, automation, marketing tools; shift in evaluating credit
If you knew the value of the house was going to decline, or that the borrower has bad credit and would default, would you make the loan? There’s always a debate about how best to determine creditworthiness based on past behavior (more on that below), but regarding housing prices, last month Arch MI released its Continue reading
Monday, December 9 Dec. 9: Sr. mgt., LO, Ops jobs; marketing, cloud products; investor & lender FHA & VA changes
With the Fed content with rates hovering here for the foreseeable future, lenders can focus on other things. “Rob, are you hearing that real estate agents are nervous about Zillow’s business moves?” Of course. There are a lot of people who wonder why real estate agents, according to some, are funding their own demise. But Continue reading
Saturday, December 7 Dec. 7: Compliance primer: RESPA, UDAAP, change in circumstance, state lending law changes
The year continues to fly by, and here we are at “Pearl Harbor Day” already. Residential lending touches many lives as millions of families around the United States have either been helped by lenders, or work for lenders. Births occur, as do deaths, within our mortgage banking community. This week I received this note from Continue reading
Friday, December 6 Dec. 6: U/W, LO jobs; CRM, U/W, budgeting tools; why LOs should care about trade & tariffs
I hope that you didn’t lay off your compliance department earlier this year, because there’s a lot going on. For example, from out of California comes the CCPA, effective in less than four weeks on 1/1/20. Susan Milazzo, the CEO of the California MBA, summed it up. “In very general terms, the key difference with Continue reading
Thursday, December 5 Dec. 5: Ops, LO jobs; workflow, webinar, just-missed products; random vendor news; rates steady
In the lending world, folks are talking about the change in FHA loan levels. Economists and investors have their eye on debt. Have a balance on your credit card? Or a mortgage, or car loan? You’re not alone. Federal, corporate and household debt worldwide stands at an unprecedented $250 trillion, nearly three times the volume Continue reading
Wednesday, December 4 Dec. 4: Secondary, LO, AE jobs; broker, anti-fraud, marketing tools; compliance news: what is EGRRCPA?
Politics seems to be in the news as never before. And we still have eleven months until the presidential election! I already have LOs writing to ask about how different outcomes may impact their business. STRATMOR has a piece titled, “Politics do Indeed Impact Interest Rates and Borrowers”. Everything is debatable, right? I imagine that Continue reading
Tuesday, December 3 Dec. 3: LO jobs; reno, construction, rental products; M&A update; training & events for Dec.
There’s an old saying among economists regarding predicting the future. “You can put a date on it, and you can put a number on it, but you can’t do both.” Sure there will be a recession, eventually. Just like there will be more expansion, at some point. And the past is not always a reliable Continue reading
Monday, December 2 Dec. 2: AE, LO jobs; HELOC, marketing, training products; FHA, VA, Ginnie… robots at HUD!
Did your company make any money in the 3rd quarter? I hope so, and I hope the 4th quarter is looking bright as well. (Just like I hope that MLOs on your staff are funding lots of loans, because if they aren’t, time to train them or let them excel elsewhere.) A couple weeks ago Continue reading
Saturday, November 30 Nov. 30: Agencies shifting risk, reducing taxpayer exposure, increasing capital, indirectly helping borrowers
Most lenders will tell you that they’re trying to provide stellar customer service at the best possible price for their clients in the most efficient, cost-effective way. Aggregators, like Wells Fargo, PennyMac, and AmeriHome, for example, do their part. But on a much larger scale the Agencies (aka Freddie and Fannie) continue to help that Continue reading
Friday, November 29 Nov. 29: Specified (“Spec”) pools & REIT primer; vendor mania; lender/vendor disaster news
There are seven members of the Board of Governors of the Federal Reserve System, and each region has a President. For 2019, the annual salary for the Fed Chairman is $203,500. The annual salary of the other Fed Governors is $183,100. But just think of all the “free” lunches during your speaking tours! There is Continue reading
Wednesday, November 27 Nov. 27: LO jobs; borrower retention tool; 2020 loan limits spelled out; Fed addressing haves & have nots disparity
Loan officers know that rent is a “piece of the puzzle,” “a part of the equation” in the homebuying decision. They should be glad to know that the typical rent in the U.S. is now $1,600, an annual increase of 2.3% in October. I’m simplifying things quite a bit, but it is not lost on Continue reading
Tuesday, November 26 Nov. 26: Bus. Dev., LO, Ops, compliance jobs; broker, portfolio marketing products; CFPB is taking on LO comp
“Rob, with the announcement a while back that Quicken Loans inked a mortgage deal with Charles Schwab, and now with Schwab buying TD Ameritrade, do you think Quicken will go after those customers as well?” Gee, do ya’ think? And for anyone selling loans, or originating loans, I received this note yesterday. “Rob, have you Continue reading
Monday, November 25 Nov. 25: Legal, Sales & Ops mgt., LO, AE jobs; non-QM products; customer experience trends
An LO from Wyoming recently reminded me that, “At the end of the day we sell a product driven by rates.” And we may be at, or near, these rates for a while, so I hope you’re happy with them (and have great service and solid products to back them up). Federal Reserve Bank of Continue reading
Saturday, November 23 Nov. 23: Letters on mobile app, information, and cyber security; risk transfer; a transitional licensing update
Yes, it has become quiet out there, with lots of “out of office” replies and empty cubicles. There’s a lot for our industry, and clients, to be thankful for in 2019 and many are taking a breather. But that doesn’t mean customers don’t need help, and that there is still plenty going on. For example, Continue reading
Friday, November 22 Nov. 22: CFO, recruiting, LO jobs; processing, forecasting, application tools; deep dive into HECMs
Many believe that 3-D printed houses will be the wave of the future in construction, and there’s someone in this article talking about printing 1,000 a day. I’m sounding like my Mother when I ask, “Where are they going to put them all?” Not in my backyard, right? In other related news, in the year Continue reading
Thursday, November 21 Nov. 21: Controller, MLO jobs; broker, U/W, sales, leads, workflow tools; upcoming events & training
Government shutdown worries, the impeachment hearings, the trade war, video of a bear stuck in a car near Lake Tahoe… Is there anything good happening out there? For one, my cat Myrtle seemed tickled pink when I told her that we had earned a mention in the most recent J.D. Power “Top 100 Daily Mortgage Continue reading
Wednesday, November 20 Nov. 20: MLO jobs; IO, construction, non-QM products; lots going on at F&F like adopting SOFR for ARM loans
A new analysis from the real estate brokerage firm Redfin shows the typical homeowner in the United States now stays in their house for 13 years, five years more than they did in 2010. This lack of movement, especially among aging baby boomers, has helped create inventory shortages and pushed up prices. Salt Lake City, Continue reading
Tuesday, November 19 Nov. 19: LO, valuation jobs; training, marketing, broker products; M&A and JVs continue; stocks, bonds, & rates
A pass rate of 51% on July’s California bar exam may not seem like cause for celebration, but it’s the first time in six years that a majority of people who took the July test passed. If the majority of people think that there will be a U.S. recession in 2020, will it be a Continue reading
Monday, November 18 Nov. 18: Lenders wanted; licensing, loan data, non-QM products; customer service survey; no Fed move ’til April?
Do you dread “Smonday?” (That’s when Sunday stops feeling like a Sunday, and the anxiety of Monday kicks in.) Here is something to dread. All this talk about MLOs losing their jobs to automation, or real estate agents losing their job to internet options. Automation, algorithms, and artificial intelligence have already reduced the amount of Continue reading
Saturday, November 16 Nov. 16: State-level lending changes & trivia; primer on the term “repo” & why it’s good to know the basics
How ‘bout this letter this week from an MLO. “I have been in the industry for 35 years and received a question from a past customer below. I have never heard of this product nor does it make a lot make a sense to me based on the logistics, like running credit reports every month. Continue reading
Friday, November 15 Nov. 15: LO jobs; POS, home equity, budgeting tools; extensive reports on rise of non-bank lending
This week I’ve been running football quotes in the joke section at the bottom. Thanks to Gary B. who sent Chuck Noll’s, “Pressure is something you feel when you don’t know what you’re doing.” Lots of folks in our industry, including me, don’t know what they’re doing in terms of technology. Nor does the consumer. Continue reading
Thursday, November 14 Nov. 14: LO jobs; broker, marketing, DPA tools; GSE changes; yield curve, employment, & mortgage rates
Some people save $2.95 a day by making coffee at home rather than stopping at Dunkin’ or Starbucks. It adds up! Something didn’t add up for WeWork which reported this morning that it lost $1.25 billion in the 3rd quarter. I think that’s the combined whole net worth of about 1,000 small brokers and bankers. Continue reading
Wednesday, November 13 Nov. 13: VP job; underwriting, broker, ECOA, free LPMI products; fire & flood updates
I continue to see headlines as I head to balmy Kansas today. There was, “A Court Ruling Makes Mortgages Vanish Into Thin Air.” This is a headline no lender wants to see, but apparently this court decision might change how home loans are valued in the secondary market. As if capital markets personnel don’t have Continue reading
Tuesday, November 12 Nov. 12: Marketing, LO jobs; compensation, sales, underwriting tools; tariffs, trade, & rate primer
I was fooling around with my wife on the couch. She said, “You want to take this upstairs”? I replied, “Sure, I’ll grab this end, you grab the other”. While we’re talking about misunderstandings, everyone has a different opinion about the economy. “Nobody’s right, if everybody’s wrong” or “Everybody’s right (eventually), if nobody’s wrong.” How Continue reading
Monday, November 11 11/11: LO, C-Level jobs; lender for sale; DPA, fullfillment products; primer on Treasury vs. mortgage rate moves
Veterans Day originated as “Armistice Day” on Nov. 11, 1919, the first anniversary marking the end of World War I. In this country it is a way to honor those who served in all American wars. For those of you who like numbers, there at 18 million military veterans in the United States, of which Continue reading
Saturday, November 9 Nov. 9: LIBOR/SOFR transition in the primary & secondary markets ; state lending law changes
“I’m gonna save a ton of money at Christmas by discussing politics at Thanksgiving dinner!” As we sail toward Veteran’s Day, and then Thanksgiving, let’s jump in to the always-exciting topic of…. LIBOR? Most believe that, given the allegations of fixing, the LIBOR (London Inter-bank Offered Rate) will not be with us for years and Continue reading
Friday, November 8 Nov. 8: LO, sales mgt. jobs; sales, audit tools; vendors raising $; 10-year yield’s 3 month, 50 bp move
As rumors swirl about Michael Bloomberg entering the race for president, MLOs are winding down for the year (a few have written to me saying that, after a solid November and 2019, they’ll be coasting during December and try to push closings into 2020 to get a good start on things), and it’s around this Continue reading
Thursday, November 7 Nov. 7: LO jobs; appraisal, DPA, broker, condo products; legal, settlement news; lender M&A
Thanksgiving will be here before you know it, and with it, pumpkin pie. (Yes, I know that this is a mortgage commentary, but even pumpkins have their share of regulation and controversy, a lead in to mortgage legal issues below.) Pumpkin is a variety of squash belonging to the “Cucurbitaceae”, or gourd family which also Continue reading
Wednesday, November 6 Nov. 6: LO jobs; warehouse, tech integration tools; wholesale & corresp. changes; Ginnie booming, trade status primer
Besides sudden news, like PennyMac filing an antitrust lawsuit against Black Knight for anticompetitive behavior (“…market-dominating LoanSphere® MSP mortgage loan servicing system to engage in unfair business tactics that both entrap its licensees and create barriers to entry that stifle competition…”), or a reminder that the bond market will be closed Monday, there are trends Continue reading
Tuesday, November 5 Nov. 5: Recruiting, training, marketing products; primer on employment & labor participation
On a personal note, my grandfather was the first mayor of Cupertino, in the Santa Clara Valley. In the 1950s my grandparents’ home (and their many acres of orchard) was taken by California via imminent domain to build a freeway, and part sold off by California for commercial use including eventually to a then-start up Continue reading
Monday, November 4 Nov. 4: Servicing, LO jobs; broker, pricing, workflow products; bank and vendor M&A rolls on
Who says there’s nothing new under the sun? Here’s a 14-year old’s clever cure for the blind spot in cars. Uber launched a new division known as Uber Money offering drivers and couriers access to a mobile bank account. Here’s a Dallas builder’s attempt at creating an economic stormproof house. At ritzy New York high-priced Continue reading
Saturday, November 2 Nov. 2: 2020 industry forecast; Freddie & Fannie in transition; risk transfers continue; sales video
Residential lenders are having a good year. (If you’re not, your New Year’s resolution should be finding something else to do in 2020.) The MBA expects total mortgage origination volume to reach about $2.06tn by then end of the year, and then to decline 8.4% to 1.89tn in 2020. According to the MBA’s Mortgage Finance Continue reading
Friday, November 1 Nov. 1: LO jobs; compliance, construction, QC, Pen Booty(!) products; 86% of Ginnie biz from nonbanks
Welcome to “Bring Your Kid’s Candy to Work” Day, when candy bowls at receptionist’s desks and lunchrooms are brimming with treats worth a gander. What is also worth a gander, besides the Agencies announcing the threshold for smaller loan exemption from appraisal requirements for higher-priced mortgage loans, is a report from the U.S. Congressional Budget Continue reading
Thursday, October 31 Halloween ’19: Sr. Ops, LO, cap. mkts jobs; pricing products; loan processing survey results
Halloween already! Who wouldn’t want to live in the scary Tombstone, AZ, Sleepy Hollow, NY, Kill Devil Hills, NC, Yellville, AR, Transylvania County, NC, Slaughter Beach, DE, Casper, WY, or Scarville, IA? What is also scary for many is that the Securities and Exchange Commission (SEC) is considering relaxing post-crisis structured mortgage product rules. Many Continue reading
Wednesday, October 30 Oct. 30: IT, Bus. dev., JV jobs; non-QM, broker products; lots of approaching training & events coast to coast
Partnerships and acquisitions are flying around like monkeys in the Wizard of Oz. (Okay, that was a reach, but I saw it in the bookstore yesterday so was “top of mind.”) The latest example is Guaranteed Rate and @properties teaming up to launch a Chicago-based mortgage lender. The JV (“Proper Rate”) will open its doors Continue reading
Tuesday, October 29 Oct. 29: LO jobs; U/W, broker, compliance products; Ellie/Capsilon deal; big banks back into FHA lending?
As noted in the commentary very early yesterday, a shade ahead of the actual details, the big news was the HUD/DOJ/False Claims Act announcement. Cutting “to the chase,” it prompted one CEO of a small non-bank lender to write me saying, “Well, with the big banks expected back into the FHA pool, there go the Continue reading
Monday, October 28 Oct. 28: IT job, title insurance opportunity; TPO products; FEMA news; brexit extension impacts rates
The Bank of Russia has reduced its benchmark interest rate to 6.5% from 7%, the sharpest cut in two years, and the EU has granted a Brexit extension to the UK. Mildly interesting. The U.S. saw something Friday that we hadn’t seen for nearly all of 2019: bank closures. In Ohio, Resolute Bank in Maumee Continue reading
Saturday, October 26 Oct. 26: Notes on the mortgage “experience,” market share shifts, appraisal waivers; state laws in flux
As usual there are a lot of crosscurrents of thought in residential lending, touching on psychology, behavioral economics, mathematics, fortune telling… Let’s see who’s saying what out there. (First, a commercial message. “Take a line from Guaranteed Rate and stop eating up your team’s time (and your borrowers’ patience) chasing down paper asset verification documents. Continue reading
Friday, October 25 Oct. 25: CFO job; Non-QM, QC, DPA, broker products; corresp. & wholesale soundbites
There are plenty of well-paid people in the mortgage biz. It is good to keep things in perspective: The U.S. median household income was $63,179 in 2018 according to U.S. Census Bureau. Sure, it is easy to become mired down in the statistics, but at this point half the population made more and half made Continue reading
Thursday, October 24 Oct. 24: LO jobs; broker, BI, credit, POS, cap. mkts. tools; vendors partnering & raising money
With only one week until Halloween we are reminded that time flies. Dating back 2,000 years to the Celtic festival of Samhain, Halloween is an ancient tradition associated with images of witches, ghosts and vampires, though it has been taken over by children and drunk adults, and rivalries like the shipping department versus accounting for Continue reading
Wednesday, October 23 Oct. 23: Sales, MLO, marketing jobs; anti-fraud, title, broker products; conv. conforming news
Last week the Mortgage Bankers Association’s survey showed that retail applications dropped almost 12% last week from the week before. Refis were down 17 percent – in one week! Lots of folks are being asked by management about projections for 2020. Have fun estimating volume, margins, and “person-power” needs. And how much of your competitor’s Continue reading
Tuesday, October 22 Oct. 22: Controller job; appraisal, broker, construction products; vendor news
I am often asked about a primer for capital markets. Much of the training is “on the job,” but for anyone serious about learning the topic, here’s a good place to start. How about a little learnin’ about the stock market, despite its waning popularity? (About 3,600 firms were listed on U.S. stock exchanges at Continue reading
Monday, October 21 Oct. 21: AE jobs; non-QM, affordable housing, income products; vendor news; what is driving rates
Great MLOs keep up on events not only impacting their loans but on events impacting the everyone else’s loans as well. For example, the Supreme Court has agreed to rule on the constitutionality of the CFPB’s structure. Saturday’s commentary discussed new developments for the transition away from LIBOR and toward SOFR. For any clients with Continue reading
Saturday, October 19 Oct. 19: Letters on electronic signatures, cyber threats, LOS, staying abreast on compliance; SOFR transition updates
Greetings from London. Parliament will be “sitting” on a Saturday for the first time in 37 years, and I decided to come here to watch the Brexit vote. Okay, I am here, but it is just a coincidence that this vote is happening today. The streets are packed with protestors and people watching the protesters. Continue reading
Friday, October 18 Oct. 18: Sales, MLO, AE jobs; broker, fraud, credit, hedging products; lenders adjust to FHA changes
Here’s a little trivia for you. What does San Francisco have six of that Manhattan has none of? Dirt roads! I don’t know if the cost of maintaining a dirt road is more than that of maintaining a paved road, but I do know that the industry is buzzing about Citi being smacked with a Continue reading
Thursday, October 17 Oct. 17: Fraud, correspondent, home equity products; warehouse facility for sale; HUD & flood
52% of Agency biz (e.g., Freddie and Fannie) is first-time home buyers. Over at HUD, according to the Mortgage Bankers Association (MBA), first-time home buyers account for more than 75 percent of FHA home purchases. FHA & VA continue to evolve – more below. Lender services and products “New! Freedom Mortgage Wholesale’s FHA Condo Single Unit Continue reading
Wednesday, October 16 Oct. 16: Sales jobs; broker, LOS, warehouse products; coast to coast events and free training
Sen. Patrick Moynihan once said, “Everyone is entitled to their own opinions, but not their own facts.” In a question guaranteed to generate opinions, there is, “Rob, do you ever think that the mortgage industry will be like the gasoline business, dominated by a very few huge companies?” No, I don’t think so. The cost Continue reading
Tuesday, October 15 Oct. 15: Ops, LO jobs; recruiting, marketing, POS, appraisal products; Non-QM company & product news
Scholars disagree on how much sleep we need, what time is the best time to wake up, and what time to go to work. But then again, scholars disagree on everything. Being a capital markets person on the West Coast was, and is, not easy, with most rising between 4 and 5AM and at their Continue reading
Monday, October 14 Oct. 14: LO jobs; analysis, broker, underwriting tools; disaster news: FEMA buys properties?
Mortgage loan officers often point out that borrowers will complain about every fee or price adjustment, yet think nothing of paying $6 every day for a Starbucks latte, $4 for a bottle of water that is basically free out of the tap, or using an ATM machine. (The fee at an American ATM machine has Continue reading
Saturday, October 12 Oct. 12: The impact of rates on lenders & servicing; Agency risk transfers continue; our changing language
Six days a week, this commentary is filled with words and phrases. New York banned the term “illegal alien”, punishable by fines. Words and phrases come and go, changing over time, usually naturally. No one likes outright censorship. Yet there have been some surprising examples of banned books in the United States, most recently in Continue reading
Friday, October 11 Oct. 11: AE, MLO, corresp. jobs; marketing, pricing, DPA, 2nd lien products; vendor’s new wares
Fun with HMDA! Compliance folks everywhere know that yesterday the CFPB (“educate through education rather than enforcement”) issued a final rule amending Regulation C to extend the current temporary threshold of 500 open-end lines of credit to January 1, 2022. The final rule also incorporates into Regulation C the interpretations and procedures from the interpretive Continue reading
Thursday, October 10 Oct. 10: LO, branch jobs; DPA, pricing, digital products, MLO book; vendor news; lenders managing capacity
I am in Chicago with the FHLBank Chicago, and, despite the congestion and energy on the streets, the numbers tell us that the local economy is slowing. (In local news, for his work on batteries, University of Chicago alum John Goodenough – try growing up with that one – became the oldest Nobel Prize winner Continue reading
Wednesday, October 9 Oct. 9: Ops jobs; JV, broker, non-QM, digital products; changes at Freddie; USDA primer
What’s your price hit for a non-owner-occupied loan? Currently, there are 12 million single-family homes being rented in the United States, 35 percent of all rental housing around the country, worth $2.3 trillion. Historically, single-family homes were rented out by owners or small real estate companies, but as we know that’s changing as large corporations Continue reading
Tuesday, October 8 Oct. 8: EVP, LO jobs; digital, corresp., broker products; HUD, FHA, VA information
As Treasury yields head toward the lows of September, and Monday’s bond market holiday, let’s start Tuesday with some “trivia.” Did you know that one of the handful of original Cabinet members who are still in Donald Trump’s Cabinet is Secretary of HUD, Dr. Ben Carson. He has an impressive list of qualifications, and the Continue reading
Monday, October 7 Oct. 7: AE jobs, business available; LO, pricing, research products; approaching events & training run the gamut
Remember those futuristic movies where humans battle machines? Are we really that far off? Here’s one development: artificial intelligence is transforming drones from picture takers into action takers. “One example of machine learning in drone inspection is Neurala’s Brains for Bots. The software helps drone companies apply machine learning to data collected by drones and Continue reading
Saturday, October 5 Oct. 5: Non-mortgage stories from readers; cornball technology humor
“Rob, have you heard of potential liabilities from offering ARM loans to borrowers based on an index that you know is going away, i.e., LIBOR?” Gee, I don’t know. Ask your legal counsel. Besides knowing that today is National Taco Day, I do know that lending is more than just numbers, and that lots of Continue reading
Friday, October 4 Oct. 4: LO jobs; valuation, DPA, correspondent products; bid tape primer; economic news moving rates
U.S. shopping mall vacancies hit eight-year high. MGM agreed to pay up to $800M to settle the Las Vegas shooting lawsuits. HP will cut up to 9,000 jobs in a bid to reduce costs. First American Chief Economist Mark Fleming observed, “…we are in an unprecedented homebody era as many existing homeowners continue to feel Continue reading
Thursday, October 3 Oct. 3: LO jobs; workflow, broker, corresp. products; non-Agency, expanded credit product news
We’re entering the forecasting season, where thousands of managers have to come up with figures for 2020 regarding volumes, margins, and profits for CEOs and owners. Good luck. (Yesterday I told my cat Myrtle that she needed to provide me with 2020 forecasts for kibble expenses, litter use, and mouse & lizard consumption. The look Continue reading
Wednesday, October 2 Oct. 2: LO jobs; AOT, construction, broker, valuation products; lots USDA, FHA, VA updates across the biz
Ever heard of Divvy Homes, ZeroDown, or Flyhomes? You should have, because your potential clients probably have. Startups are aiming to break down obstacles to homeownership, and every lender out there should see what they’re up to. Of course, anyone with more than two years in this biz knows that not everyone deserves a loan, Continue reading
Tuesday, October 1 Oct. 1: Sales, LO jobs; books, sales events, recruiting products; news in conventional conforming land
The beginning of the 4th quarter. Halloween is approaching. If your pipelines aren’t full with rates down here, and haven’t seen decent profits in the last few months, when will you? And if MLOs with some experience under their belts have only been closing 1-2 loans a month, well, when will things pick up for Continue reading
Monday, September 30 Sep. 30: Legal, CFO, sales, management jobs; study & news on helping borrowers; the Fed & the election
The final day of Q3 already… Aside from F1 drivers, did you know that Ferrari employees are not allowed to buy Ferrari cars? The exotic car market certainly has its own price movements, with various models going up and down in price independently from economic conditions. In general consumer inflation hasn’t been a threat for Continue reading
Saturday, September 28 Sep. 28: On a personal note…
Saturday commentaries are usually reader’s letters, a deep dive into cybercrime, state laws, or Agency activity. But now, on a personal note… In some ways, our youth and middle years are really a sort of training period for the unanticipated pleasure of being an older adult. Over time, you understand more how life works, how Continue reading
Friday, September 27 Sep. 27: MLO & sales mgt. jobs; education, broker, BI, CRM products; econ. news continues; mortgage robots?
Let’s end the week with some non-mortgage ramblings. Last night in Dallas I had dinner at The Mercury, a fish restaurant. (Who was in charge of naming that one? Try the tuna!) It wasn’t a date, but it reminded me that dinner in Dallas is pricier than some cities, less than in others, and look Continue reading
Thursday, September 26 Sep. 26: AE, LO jobs; non-Agency, cap. mkts., disclosure products; dive into economic news pushing rates
Depending on the product, 20-25% of the nation’s loans come from California. “Appraisal firms and appraisal management companies utilizing independent contractor appraisers in California, as well as any California appraisers working as independent contractors themselves, should get familiar with Assembly Bill 5 (AB-5), California’s new ‘gig worker’ law that aims to curb the classification of Continue reading
Wednesday, September 25 Sep. 25: AE, corresp. jobs; productivity, credit, LOS, U/W tools; plethora of events & free training
One could argue that house flippers could make less if they buy the house for more than they expected, costs were more than anticipated, or the sales price was less than hoped for. It can be a lot of work, especially if individuals are competing with big-time flippers working with computer algorithms. ATTOM Data Solutions Continue reading
Tuesday, September 24 Sep. 24: LO, AE jobs; sales, media, renovation, Blend approval products; digital news; AFL-CIO’s mortgage company
What does the AFL-CIO have in common with Zillow? Both own mortgage companies. Think partnerships and “strategic alliances” are against the rules? Think again. Zillow announced partnerships with 11 home building companies across the country to help home sellers move into their new construction home without selling their existing home traditionally by using Zillow Offers. Continue reading
Monday, September 23 Sep. 23: LO jobs; sales, vendor, non-QM products; Agency updates: Fannie pricing change?
Call it a comfortable barge or a luxury water house, thanks to Rudy D. for sending along this story about a $5.5 million floating home in Florida. Good luck for appraisers trying to find comps. Speaking of trying to find something, how about Google being able to track your every step? Great for finding missing Continue reading
Saturday, September 21 Sep. 21: Notes on interest rate direction, 30 vs. 15-year loans, & state law changes; a joke for LOs
This week I spent some time in Pittsburgh at the Mortgage Bankers Association of Southwestern Pennsylvania and was chatting with Genworth Mortgage Insurance’s Greg Williams (who covers Western Pennsylvania, West Virginia, and Western New York) about business conditions. Pipelines are full and lenders are looking at good, profitable closing months as we close out the Continue reading
Friday, September 20 Sep. 20: Training, servicing, LO jobs; fraud, broker, LO products; corresp./wholesale changes
A mile is 5,280 feet. And Central Park Tower on West 57th St. in Manhattan now stands at 1,550 feet, about a third of a mile. I mention this because it is now the tallest residential building in the world, and if you’d like to pony up $6.9 million for a unit, now’s your chance. Continue reading
Thursday, September 19 Sep. 19: AE, LO jobs; originator, servicing, corres. products; primer on why extensions cost money
The residential lending industry continues to evolve. Lenders are coming and going, moving in and out of business channels. (The latest example being Union Bank, as UBOC is rumored to be in the process of reducing its overall approved broker client base and focusing on deposit relationships). And lenders still report full pipelines but cautiousness Continue reading
Wednesday, September 18 Sep. 18: LO, sales jobs; self-employed, pricing, cap. mkts. products; vendor products & capital raise
This morning I find myself in Pittsburgh, PA for the MBA of Southwest Pennsylvania. (Yes, I am bound for lunch at Primanti Brothers.) It turns out that the nearest farm to downtown Pittsburgh is only 20 minutes away, which is good for field trips, but it’s that time of year when we’re reminded of our Continue reading
Tuesday, September 17 Sep. 17: VA, LO jobs; digital, sales, broker products; mortgage compliance, risk, fraud Q&A
As yet another example of a mortgage conference eating into a weekend, leading attendees to travel on a Friday or Saturday, the Mortgage Bankers Association’s Regulatory Compliance Conference starts this Sunday. But the scheduling doesn’t detract from the important message: “Now more than ever, the regulatory environment calls for the best approaches and solutions to Continue reading
Monday, September 16 Sep. 16: Sales, loan quality, broker products; vendor developments; rate volatility increase
Music fans are saddened by the recent news of the deaths of Eddie Money and the Cars’ Rick Ocasek. In our industry, the news late last week that Black Knight, Inc. has acquired Compass Analytics, LLC, turned a lot of heads. There is no reason to believe that larger companies taking an interest in successful Continue reading
Saturday, September 14 Sep. 14: Transferring Agency risk, LIBOR/SOFR news, and a primer on VA cash out refi pricing
Call this edition a “capital markets issue” about pricing, the move away from LIBOR, and risk. Hopefully it gives readers a sense of what is going on with mortgage rates and playing some catchup over the last several months with the way Agencies (today the focus is on Freddie Mac) transfer risk. And if you’re Continue reading
Friday, September 13 Sep. 13: CFO, AE jobs; sales, DPA, HELOC, non-QM products; lender flood news; what is driving rates
Any month that starts on a Sunday contains a Friday the 13th. The superstitious sufferers of “triskaidekaphobia” try to avoid bad luck by keeping away from anything numbered or labelled thirteen, while others, such as some attorneys for whatever reason, believe it to be lucky. But some companies and manufacturers often use another way of Continue reading
Thursday, September 12 Sep. 12: LO jobs; sales, LOS, capital markets products; lots of events, even today; Stearns’ rumblings
I apologize in advance for the length of today’s commentary, but there’s a lot going on! Ask any economist if rent control works, and they’ll say, “No.” But that didn’t stop California’s Assembly from voting in state-wide rent control which the Governor is expected to sign. In terms of pure supply and demand, wanna buy Continue reading
Wednesday, September 11 Sep. 11: LO, AE, sales jobs; non-QM, branding, correspondent products; origination channels 101
Is our housing system a “dumpster fire?” (I don’t think so; we have hundreds of thousands helping millions every year although F&F would be better off if all their profits didn’t go straight to the government.) And now the CFPB is allowing housing counseling agencies that offer advice and assistance to struggling home buyers to Continue reading
Tuesday, September 10 Sep. 10: LO jobs; CRM, QC, warehouse, reverse, broker products; current economic picture
The gap between the haves and have-nots continues to widen. Though the wealth of U.S. households has eclipsed $100 trillion, the wealthy have primarily accrued the post-recession gains. Those in the top 1 percent of U.S. households have seen their wealth double and now hold over $30 trillion of that. The next 9 percent of Continue reading
Monday, September 9 Sep. 9: AE jobs; LOS, sales, automation products; Fed tool Quantitative Easing is alive and well
The United States is filled with historical and geographic trivia. Reno, Nevada, is farther west than San Diego, California. Johnson City, Tennessee is closer to Canada than it is to Memphis. General Robert E. Lee had a surveying role in “The Toledo War” between Ohio and Michigan, fought over a 450 square mile strip, which Continue reading
Saturday, September 7 Sep. 7: Letters about GSE reform, HFAs & affordable housing, and appraisal waiver drama
Everyone is watching overall applications drop, despite low rates, as the “pig in the python” of refis makes its way through funding departments. Winter is coming, and lenders, after a spate of good months, are wondering what October and onward will look like due to “refi burnout.” So I continue to be asked about programs Continue reading
Friday, September 6 Sep. 6: LO, U/W jobs; sales, broker products; Associated’s LIBOR shift; Freddie, Fannie, FHA’s future
Yesterday the industry reacted to the topic of housing finance reform. HUD presented its plan for FHA. But, like news of Michael Jackson’s death overshadowing Farrah Fawcett’s who passed away on the same day more than ten years ago, the headlines were dominated by the plan for Freddie and Fannie, and U.S. Treasury Secretary Steven Continue reading
Thursday, September 5 Sep. 5: Prod. Dev., sales, u/w jobs; CRA, MI, sec. mkt., HMDA dashboard products; Freddie & Fannie changes
Do you know what is picking up steam out there? Credit unions are on a “bank buying spree.” The numbers aren’t huge, but these not-for-profit financial firms have acquired a record number of banks since last year, acquiring 21 U.S. banks since 2018, according to S&P Global Market Intelligence, compared with 12 purchases in the Continue reading
Wednesday, September 4 Sep. 4: Underwriter jobs; broker, HELOC, warehouse, non-QM products; LOS survey; vendor news
Would you transfer a quarter million smackers if your boss told you to? Let’s just remind every lender, and every bank: you have the money and others want it. Here a scammer successfully “deep faked” a CEO’s voice to fool an underling into transferring $243,000. Yes, rates are great (Fed Funds are 2.25%, but the Continue reading
Tuesday, September 3 Sep. 3: AE, LO jobs; sales, VA, broker products; investor disaster news; 2018 HMDA data out with interesting stats
We’re two-thirds of the way through with the third quarter of 2019, and with Labor Day behind us places like Minneapolis and Seattle are losing three minutes of sunlight per day. Rumor has it that lock desks all over the nation are trying to hire this guy in St. Louis. My cat Myrtle has always Continue reading
Saturday, August 31 Aug. 31: Letters about compensation; ransomware, cyber-risk, and AI: can a robot obtain a patent?
Over the last twelve years the mortgage industry has certainly been the subject of a lot of bad news and bad publicity. Yet through it all, hundreds of companies & organizations involved in residential lending, arguably thousands, have been helping clients, and the public, with little or no notice. Groups like Fairway Independent, Wells Fargo, Continue reading
Friday, August 30 Aug. 30: LO jobs; construction, DPA, broker, customer-centric products; tech survey results; new lender
As Floridians watch “Storm Porn,” as the weather channel is called, Tennessee is buzzing about this Nashville Realtor’s marketing. (Warning: Rated a solid R.) The rest of the nation is more interested in the economy, and how one of the highest rates in the world is our own overnight Fed Funds rate! Don’t forget the Continue reading
Thursday, August 29 Aug. 29: LO, non-QM AE jobs; warehouse product; shifts in FHA, VA, HUD, & Ginnie policies
Real estate agents, and lenders interested in joint ventures and “affinity programs,” are very interested in the Realogy news that the United Services Automobile Association (USAA) is discontinuing the USAA Real Estate Rewards Network, an affinity program that generates leads for the Cartus Broker Network. The Cartus Broker Network is a network of brokers from Continue reading
Wednesday, August 28 Aug. 28: LO jobs; Ginnie pooling, credit, doc, broker products; corresp. & wholesale news
For readers who deny climate change is real, natural or manmade, sinking cities around the world (including Houston and New Orleans) can be attributed to groundwater issues (public and private wells pulling water out of aquafers), another long-term trend that lenders could worry about, or at least be aware of. But one thing that lenders Continue reading
Tuesday, August 27 Aug. 27: Subservicer survey, social media, DPA, multicultural products; wallowing in training, webinars, & events
If Abraham Lincoln during the Civil War can go to the theater a hundred times, and if FDR during World War II can have a cocktail hour every night where you can only talk about books you’ve read and gossip, and if Teddy Roosevelt can take two hours every afternoon to exercise, none of us Continue reading
Saturday, August 24 Aug. 24: State law changes; letters about comp, ransomware, and borrower disposable income
Comp? Cyberattacks? Changes in underwriting philosophy? A look through my email inbox indicates they’re on folks’ minds this week. And let’s throw in some state-law changes. Just because Congress is on recess doesn’t mean states are idling. Compensation It’s a rare thing when someone doesn’t know what they “should be” earning. Few companies work in Continue reading
Friday, August 23 Aug. 23: Sales, LO jobs; CRA, DPA, pricing, recruiting products; vendor chatter
Japan’s government bonds could soon join Germany’s in having negative yields on all maturities. Japanese debt has gone negative out to 15 years, and buyers are turning to 30- and 40-year bonds to get positive yields. Falling bond yields and minimal interest rates are prompting European banks to consider the unprecedented step of offering home Continue reading
Thursday, August 22 Aug. 22: Ops, LO jobs; POS, broker, marketing products; trends in customer service, digital survey
Thank you to everyone who wrote yesterday correcting me that Hawai’i’s 1959 statehood is 60 years old and not 50. I know it’s not the case, but sometimes it seems like admitting Hawai’i was the last thing Congress agreed on. In these days of gridlock, most members of Congress exhibit a sort of learned helplessness, Continue reading
Wednesday, August 21 Aug. 21: LO jobs; customer retention, broker, reverse products; info on yield curve & mortgage rates
Congratulations to Hawaii which became a state sixty years ago today. We’ve had plenty of economic cycles, small and large, in fifty years, although in general rates have been coming down since 1981. And we’ve had a flat or inverted U.S. yield curve for several months. Inverted yield curves don’t cause a recession: Two consecutive Continue reading
Tuesday, August 20 Aug. 20: LO jobs; vendor contract, DPA products; webinars this week; credit news; Better.com is worth what?
Why is a 43% DTI, a line many view as “drawn in the sand,” so critical to the ability of a borrower to repay a loan? What about reserves or utility bill payment? If the borrower is already paying $2,000 a month in rent and their mortgage payment would be $1,800, shouldn’t that count for Continue reading
Monday, August 19 Aug. 19: Sales, AE, LO jobs; trailing doc & U/W products; vendor trends & news
Builders can’t complain too much about material prices anymore. Building materials prices rose only 0.7% in July, and are down overall year-over-year. Despite tariffs, softwood lumber prices are down 20% over the past year and other products like gypsum, tar, and asphalt (roofing) have also dropped. Rising home costs are less due to “sticks and Continue reading
Saturday, August 17 Aug. 17: Letters on the importance of hiring through referrals, and ransomware & cybersecurity
Today’s commentary focuses on two unrelated items that lenders, investors, and vendors spend, or should spend, a lot of energy on: hiring practices, and cybersecurity. How you find personnel can be as important as who you hire. And remember that “punched in the gut” feeling you had in school when you opened your locker and Continue reading
Friday, August 16 Aug. 16: LO jobs; DPA, non-QM products; spec pool primer; deficits, debt, the yield curve, & mortgage rates
Some international rates have gone through 0 percent and are now negative. The low rates and high volumes have caused lenders to focus less on long-term planning and more on closing loans. Who can blame them? How would U.S. mortgage rates near 0 percent impact the future refi market for lenders? Here’s a piece worth Continue reading
Thursday, August 15 Aug. 15: Trader, LO, Ops jobs; digital, reno products; originator survey; condo loans to become easier
Plenty of economists watch builder activity and mood swings as early indicators of future economic health. Builder confidence in the single-family 55+ housing market continued in positive territory in the second quarter of 2018, according to the HMI. We’ve been hearing about skilled labor shortages, lack of buildable land, raw material price volatility, and permit Continue reading
Wednesday, August 14 Aug. 14: Management, Ops, LO, AE jobs; broker, non-QM products; policy & procedure trends
Data compiled by the American Bar Association shows that average lawyer pay has nearly doubled since 1997! Mortgage loan originators enjoy comparing themselves to attorneys, despite the formal educational differences, the time involved with case work stretching out years, and the initial expense of law school most attorneys attend after college. And then there’s the Continue reading
Tuesday, August 13 Aug. 13: Ops, Cap. Mkts., AE, LO jobs; broker, DPA products; Aug. events; mortgage rates slow to drop – why?
As we digest the news that CIT is buying Mutual of Omaha Bank, others are looking at demographics. Families moving create jobs, right? From 2017 to 2018, roughly 32 million Americans moved. The reasons include family, work, and housing reasons, obviously. The five most common reasons? 5.3 million moved because they wanted to move to Continue reading
Monday, August 12 Aug. 12: LO, AE jobs; broker, credit, subservicer products; CRM survey & vendor news
While the world is watching 0% or-.5% interest rates in Denmark, in this country Zillow is competing with lenders, real estate agents, and mom & pop fix & flippers. In its last quarter, $248.9 million of the data company’s $599.6 million in revenue came from buying and selling homes directly. The company bought 1,525 homes Continue reading
Saturday, August 10 Aug. 10: Thoughts on margin calls, LIBOR’s phase out & SOFR mortgages; credit risk transfers continue
Interest rate volatility, LOs not interested in changing companies, the $8,500 cost of doing a mortgage hitting low-balance refi candidates the most, and profit-laden pipelines are capturing everyone’s attention. In secondary market departments, nearly every mortgage banker, or anyone hedging a pipeline, received margin calls this week from dealers. One capital markets vet advised, “Owners Continue reading
Friday, August 9 Aug. 9: MI job; DPA, sales, high LTV, analytic products; jumbo news; Santander exits TPO
Critics of the “new and improved” 1003, aka URLA, for loan applications must be quite pleased with the indefinite delay of its required rollout announced yesterday. “The Federal Housing Finance Agency (FHFA) has completed its review of the redesigned Uniform Residential Loan Application (URLA) and has directed Freddie Mac and Fannie Mae to make specific Continue reading
Thursday, August 8 Aug. 8: Ops, AE, LO jobs; credit, doc. products; vendors raising money & offering free inv. prop. appraisals
Are there “non-profit” lenders and/or real estate companies in the private sector? (I’m talking business model, not tax status.) Sure there are. Here’s a quick example: Homewise in New Mexico. But in my talks with lenders around the nation, profit is the name of the game, and non-bank lenders are always watching bank and credit Continue reading
Wednesday, August 7 Aug. 7: AE, LO jobs; U/W, JV, DPA, CRM, broker products; 2nd mortgage and conv. conforming trends
For me the first three weeks in August includes time in California, Washington, Nevada, Tennessee, and Michigan. Did you know that roughly 80% of new houses being built are in the South or West? Freddie and Fannie know a lot about lending on new homes, and lending to first time home buyers. Recall that a Continue reading
Tuesday, August 6 Aug. 6: LO jobs; sales, retention, broker products; business is great, but what’s a margin call?
With this downward move in rates lenders across the nation are girding their loins for margin calls from broker/dealers on mortgage-backed security positions. (What’s a margin call? Answer in the capital markets section.) And everyone’s stock investments are being pummeled – let’s hope someone thought to move those monies for future down payments from potential Continue reading
Monday, August 5 Aug. 5: AE, LO jobs; CRM/LOS, warehouse, broker products; FHA & Ginnie news; CFPB & DOJ Fair Lending investigation?
Blame mental health. Blame gun control. Blame “the system” or background check procedures. There’s plenty of blame to go around when it comes to the terrible mass shootings, and shootings in general. One would think politicians are weary of saying, “Our thoughts and prayers go out to…” Meanwhile, states wait for the next one. Are Continue reading
Saturday, August 3 Aug. 3: NMLS, Nevada lending law changes; the Fed rate cut; lender cybersecurity & ransomware news
Habla Espanol? No? How about someone in your office? Being bi-lingual is a good thing. Many Hispanics speak English, the official language of the United States, but I bring this up because Hispanic demand for housing is “en fuego” and is experiencing the largest homeownership gains of any minority group. Conversely, the Wall Street Journal Continue reading
Friday, August 2 Aug. 2: AE, LO, mgt. jobs; broker, U/W products; Freedom/J.G. Wentworth deal; vendor news; how ’bout dem rates!
The FHA & VA know a little something about risk, and don’t want to stick out too much from Freddie and Fannie, resulting in adverse selection. Lenders are buzzing about HUD’s actions “designed to reduce risk associated with cash-out refinance lending. The changes preserve homeowners’ ability to convert home equity to cash via a government-sponsored Continue reading
Thursday, August 1 Aug. 1: MI, AE, LO, sales jobs; cap. mkts., DPA products; upcoming conferences & webinars
Well, we sailed through another perfectly good month, and many lenders had a superb July funding month. And there is great optimism about August’s numbers as well. Veterans, however, are watching locks to see how September is going to shape up. The MBA reports that applications have fallen for three straight weeks, not a recipe Continue reading
Wednesday, July 31 July 31: SVP, MI jobs; CRM, broker, sales, rental products; conventional conforming trends
Large investors often shy away from monies that are not in the mainstream banking sector. (Accounts in cryptocurrency jump to mind.) Can you blame them? But plenty of people want to use that money to buy houses and lower the vacancy rate. In Census Bureau news, as if we don’t have enough stats in our Continue reading
Tuesday, July 30 July 30: Ops, LO jobs; CRM, reno, pricing products; borrower satisfaction tips; wholesaler news
Who’s in your wallet? How about 33-year-old Paige Thompson? Working for Capital One’s “cloud company,” she is accused of hacking into more than 100 million Capital One customers’ accounts and credit card applications earlier this year by breaking into a Capital One server and gaining access to 140,000 Social Security numbers, 1 million Canadian Social Continue reading
Monday, July 29 July 29: LO jobs; marketing, wire fraud, profitability, cap. markets, bidding products; all eyes on the economy
As the residential lending industry continues to buzz about the CFPB addressing the definition of a Qualified Mortgage, with proponents hoping that the ATR rules are better detailed, people who believe that climate change is a hoax are no doubt puzzled why Moody’s, the bond rating agency, bought a startup that quantifies climate-related risks. (The Continue reading
Saturday, July 27 July 27: Census on housing; taxes & home ownership; coastal state lending law changes; a really bad joke
For folks who like statistics, the U.S. Census Bureau recently released the 2018 Characteristics of New Housing Report, which provides annual statistics on the characteristics of new privately-owned residential structures. Some highlights of the 840,000 single-family homes completed in 2018 included: 84,000 had two bedrooms or less and 376,000 had four bedrooms or more. 31,000 Continue reading
Friday, July 26 July 26: Encompass, LO jobs; appraisal, sales products; QM Patch & non-QM news in the primary & secondary markets
You should become, if you’re not already, familiar with the term “Advance Notice of Proposed Rulemaking (ANPR).” The Consumer Financial Protection Bureau issued an ANPR toward ending its special treatment for certain mortgages backed by Fannie & Freddie in the agency’s underwriting rules. Recall that any loan approved by DU or LP falls into “QM” Continue reading
Thursday, July 25 July 25: AE, Ops, LO jobs; non-QM, sales, FHA products; tech survey results; ECB nudges our rates
If you, or your borrowers, want $125 from Equifax, or to receive free credit reporting, here’s what you should do. The official settlement website has been posted and is accepting claims. (To confirm you’re eligible to file a claim, enter your last name and the last six digits of your Social Security number on the site or call Continue reading
Wednesday, July 24 July 24: AE, LO jobs ‘cross the nation; sales, LOS, POS, customer retention products; events & training; Amazon’s partnership
Today, in Utah, it is either Pie & Beer Day, or Pioneer Day, I can never remember which. Words are funny things. How about “partners,” as in Amazon’s new TurnKey program which partners with Realogy Holdings Corp. (Better Homes and Gardens Real Estate, Coldwell Banker, CENTURY 21, Sotheby’s International Realty and ERA Real Estate)? The Continue reading
Tuesday, July 23 July 23: CFO, LO jobs; LO training, construction, marketing products; FHA updates & free training
During my travels someone recently told me that the “x” at the end of Cajun names was attributable to illiterate Cajuns “making their mark.” But instead it seems that two hundred years ago Judge Paul Briant took responsibility for the 1820 U.S. census in Louisiana and is most responsible for the standard “eaux.” Louisiana has Continue reading
Monday, July 22 July 22: DTC, AE, accounting jobs; document, non-QM, MI products; vendor news; rates steady
There are more stars in the universe than words ever uttered by all the humans who ever lived. (That’s a good line for tonight’s Happy Hour.) Money, on the other hand, is finite, and catching everyone’s attention this morning is a) Zillow telling us that 37% of U.S. homes are free and clear of a Continue reading
Saturday, July 20 July 20: State lending law changes run the gamut and indicate trends in the biz
We’re not seeing the headline-grabbing Consumer Finance Protection Bureau news anymore. What’s up with that? Either companies are taking compliance seriously and are doing everything right, or the CFPB has shifted its focus. One hopes the former is true, but indeed, the CFPB appears to be shifting from enforcement to education, and only took 12 Continue reading
Friday, July 19 July 19: Sales, LO, AE jobs; credit, broker, accounting products; events & training; cap. mkts. dollar roll primer
Some people pray for ice cream, and their prayers will be answered as this Sunday is National Ice Cream Day. An MLO prayer? “Dear Lord, just give me one more refi boom. I promise to save my money this time.” At the lender level there is plenty of maneuvering going on. Lenders are busy re-hiring Continue reading
Thursday, July 18 July 18: LO, AE jobs; bulk bid, construction, broker products; lender flood news; State Farm/Rocket Mortgage
There’s a lot going on out there! Rocket Mortgage is creating new technology that will allow the State Farm agents to offer a Rocket Mortgage loan as a licensed loan originator. Some accounting staff believe their prayers have been answered regarding CECL. The Financial Accounting Standards Board voted Wednesday to propose to delay some of Continue reading
Wednesday, July 17 July 17: MBA, national account jobs; comp, broker, compliance exam products; F&F changes; the Fed & rates
I encounter plenty of people in the mortgage biz, from part-time receptionists to owners, who are focused on helping consumers. It’s a good thing! And they ask me about consumer education. (“Have you ever heard of a class for anyone on home buying or the home loan process?”) One solution, and this is not a Continue reading
Tuesday, July 16 July 16: AMCs wanted; rehab, U/W, training, non-QM, marketing products; Ginnie’s growth
Although lots of small lenders don’t seem interested in being acquired any longer (“Hey, our pipeline is full and we’re making money again!), M&A is alive and well. The latest example comes from Southern California where William Lyon Homes (NYSE: WLH) has bought South Pacific Financial Corp., a retail mortgage banking company based in Irvine. Continue reading
Monday, July 15 July 15: Non-QM, U/W, broker, marketing, tech products; wholesale news; webinars this week
You don’t think your spouse listens to you? What about Google? You bet: “Google Very Angry After Contractor Leaks Over a Thousand Assistant Recordings.” Interesting that many of the “best and brightest” of people in their 20s and 30s want to work for an advertising company. (Yes, 80-90% of Google/Alphabet’s revenue comes from advertising.) Google Continue reading
Saturday, July 13 July 13: Letters on VA loans, marijuana, and tech spending; Agencies moving away from LIBOR
Although VA loans are a relatively small part of the origination pie, they are very much a source of pride for those companies that offer them, and MLOs that specialize in them. And there are plenty of sources of news for veterans. Want a chart of VA funding fees? Here you go. VA loans by Continue reading
Friday, July 12 July 12: VP, Controller, AE, LO jobs; doc, U/W products; LO training; Fannie, ARMs, and SOFR; yield curve news
Glenn Freezman sent, “I have a step ladder. I never knew my real ladder.” Toddlers, drunk people, and yoga pants don’t lie. What about statistics? Denver’s medical marijuana dispensaries outnumber Starbucks locations 3 to 1. In fact, this source says they outnumber Starbucks and McDonald’s combined. Colorado or elsewhere, who says the economy isn’t changing? Continue reading
Thursday, July 11 July 11: LO jobs; sales training, digital, broker, cap. mkts. products; FHA & DPA news; FOMC & rates
In honor of World Population Day today, the Census Bureau tells us that the world’s population will hit 7.58 billion this month. But why believe that? Or anything “experts,” like actuaries or scientists, tell you? There is a lot of real news out there, and a lot of rumors, and the Stearns Chapter 11 has Continue reading
Wednesday, July 10 July 10: Sales mgt., LO jobs; construction, broker, reno products; close look at Stearns’ deal; Ginnie & SOFR
There are still, surprisingly, people who deny that climate change is occurring. There are plenty of low-lying areas of this country that are threatened now or will be in the coming years. And just think of all those jumbo loans along the coast, like in California. Owners can spend millions to add more sand to Continue reading
Tuesday, July 9 July 9: Ops, LO jobs; u/w, digital, appraisal, cap. mkts, non-QM products; upcoming training, don’t ignore CECL
I find it amusing when someone tells me, “The stock market is too risky for me. I have my money with some investment gal/guy.” What do you think they do with it? Deutsche Bank, prominent in the residential & commercial lending sectors, will cut 18,000 jobs during the next three years as part of a Continue reading
Monday, July 8 July 8: HR, CFO, LO, AE, Ops jobs; blockchain, warehouse, non-jumbo, MI products; Ellie restructure
Welcome to “Work from Bed Day” around the nation. Okay, I just made that up, but it sounds enticing. Perhaps it would lead to greater worker satisfaction. Plenty of lenders are focused on borrower satisfaction, and quantifying it. STRATMOR published “The Seven Commandments of Borrower Satisfaction.”, for example, and in its survey J.D. Power measures Continue reading
Saturday, July 6 July 6: Readers’ letters on technology being a given, veterans & 1003s; Agency risk transfer continues
Not a lot going on out there. Holiday week. I thought about making up some sensationalist headlines or clickbait (“You won’t believe what these mortgage bankers looked like in 1980!”), but I’ll save that for another edition. But there are a couple things that readers weighed in on. Veterans and the 1003 My father, 96, Continue reading
Friday, July 5 July 5: Nifty IRS news site; lender vendor M&A, news, developments; strong jobs data
The IRS has only been with us since 1862, modern nationwide income tax since 1913. But, just like the gfee income “share” with Freddie and Fannie, and sweeping the Agencies profits, the government never relinquishes money, so U.S. Federal income tax will be with us forever. So you may as well be kept up to Continue reading
Wednesday, July 3 July 3: Bus. Dev., LO jobs; cap. mkts., broker products; trends in condo lending; lower rates ahead?
I was in Park City, Utah recently, and the real estate agents gave me an interesting statistic: it is believed that 80% of the land and buildings are owned by people or companies who live outside of the area. A large number of those are condominiums (more condo news below), with prices ranging below and Continue reading
Tuesday, July 2 July 2: Hd. of corresp., Controller, AE, LO jobs; recruiting, training products; VA, FHA industry shifts
This weekend I helped my son change apartments in San Francisco, and all over were billboards for ZeroDown.com: “Smartest Way to Buy a Home.” And if there is one market where a help system is needed, that would be the Bay Area. One must watch those “S” words. In yesterday’s commentary I noted musings out Continue reading
Monday, July 1 July 1: CFO, LO jobs; 2nd, DPA, warehouse products; conventional conforming news: Agency reform? Not so fast!
Huh? We’re in the 3rd quarter of 2019 already? To where did the first six months fly off? I am hearing from some lenders that solid April, May, and June (aka, 2Q 2019) made up for poor 4th quarter and 1st quarter numbers. Locked pipelines are full heading into the heart of the summer, capital Continue reading
Saturday, June 29 June 29: State & national law changes impacting lending; reverse occupancy fraud
Lots of people in the biz are talking about the great June they had, and, given the size of their pipelines, are looking forward to July and August funding months. Yet compliance, quality control, and rules & regulations are always on the minds of top lenders. I received this compliance/underwriting question. “My company had a Continue reading
Friday, June 28 June 28: AE, Ops jobs; broker, appraisal products; M&T exits wholesale; investor policy & procedure changes
VA lenders are talking about the “cap” being removed as the Department of Veterans Affairs can now back loans that exceed the conforming loan limit. President Trump signed the Blue Water Navy Vietnam Veterans Act which allows homebuyers to borrow above the 2019 limit of $484,350 for most counties without any down payment. (The bill revises the VA’s home Continue reading
Thursday, June 27 June 27: LO jobs, bus. opportunity; non-del, sales, software, jumbo products; misc. vendor updates
Did you know that in 2018 the U.S. birth rate dropped for the fourth consecutive year? In fact the number of people born in the United States last year was the lowest in 32 years. How are we supposed to have economic growth and healthy inflation if fewer people are buying things and demand drops? Continue reading
Wednesday, June 26 June 26: LO, Ops jobs; title, CRM, cap. mkts. products; new programs from Agencies, lenders, & investors
When I grow up, I want to own… 16,000 single family homes? Yes, here’s an article about how artificial intelligence has helped a landlord, and fund, accumulate that portfolio of rentals. It is a safe bet that a) the fund won’t be coming to you for a loan, and b) those are 16,000 homes that Continue reading
Tuesday, June 25 June 25: LO jobs; broker, digital, appraisal products; bank and lender M&A going bonkers: First Bank/Roosevelt ink deal
Guys with an eyepatch and three fingers sell the best fireworks. Who does the best job selling mortgage products to consumers? Regulators, Agencies, and investors have seen the percentage of bank fundings drop and non-bank originations move higher over time, and by some estimates now account for 60% of residential volume. In the conferences that Continue reading
Monday, June 24 June 24: COO job; loan delivery, construction products; HECM servicing sale; wide range of upcoming training & events
I start the last week of June in Park City, Utah at a STRATMOR meeting and with a correction. In discussing tax laws in Saturday’s commentary I wrote, “The new law limits the deductibility of mortgage interest payments to $10,000, thereby reducing tax incentives for ownership of higher priced homes.” Several readers astutely wrote that Continue reading
Saturday, June 22 June 22: The economy; California housing market; hedging servicing; learn from Supreme Lending’s ransomware attack
Not worried about computer issues? Your vendor(s) will take care of everything? Guess again. Baltimore was hacked, grinding the recording of documents to a halt. A Florida city will pay $600K ransom to hacker who seized computer systems weeks ago. In Texas, Supreme Lending, known to be “on top of it” when it comes to Continue reading
Friday, June 21 June 21: LO, UW jobs; non-agency product; Fannie/Freddie updates; VA IRRRL reminder/clarification
That mortgage prices change every day, and often during the day, is about as surprising as sheriffs finding marijuana on Willie Nelson’s tour bus. Price changes have an immediate impact, and I knew that I’d receive plenty of phone calls from “the street” when a CEO told me to increase prices when the market hadn’t Continue reading
Thursday, June 20 June 20: LO jobs; database sales, closing costs products; lender-related M&A rolls on; what is moving rates
“Enable” is such a vague, over-used tech term. The same with “repurpose.” But over the next 10 years Google is going to “repurpose” (aka, re-zone) a lot of land and plans to invest $1 billion to “enable” the development of 20,000 new homes in the San Francisco Bay Area, including more than 5,000 affordable housing Continue reading
Wednesday, June 19 June 19: MLO jobs across the nation; credit product; primer on current prime jumbo securitization market
Good loan officers pay attention to demographics. For example, according to a new report from the United Nations, the population of the planet could rise from its current 7.7 billion to 10.9 billion by the year 2100. This is a downward adjustment from the last U.N. prediction due to a decrease in the global fertility Continue reading
Tuesday, June 18 June 18: Digital, marketing, training products; in person or on your phone, upcoming teaching & events run the gamut
With the backdrop of a global bond market rally today, let’s look back at Randy Newman singing, “It’s money that matters, hear what I say. It’s money that matters, in the USA.” What does $5.6 million buy you these days? A road-gray Yankees jersey that was worn by Babe Ruth sold for $5.64 million at Continue reading
Monday, June 17 June 17: AE, LO jobs; private money, commercial products; flood & disaster updates; Quicken Loans settlement
I find builder’s naming policies amusing. Let’s call a subdivision “Hidden Valley” or “Lonesome Pines” when it isn’t hidden or lonesome anymore with 500 homes in it. Let’s pave over peach orchards, an area where hawks hunt, or a field of sage brush and then name roads after them. Maybe they can charge more for Continue reading
Saturday, June 15 June 15: Notes on the LIBOR transition, Modern Monetary Theory, the Option ARM’s origins & principals
We’re a week away from the official beginning of summer: vacations, fewer conferences, home buying, arriving at work early to snag the shady parking place. (A week is a long time. Just ask Quicken, which settled its False Claims Act action this week, or the Golden State Warriors who, in the span of a week, Continue reading
Friday, June 14 June 14: Sales & LO jobs; eClose, non-QM, broker products; VA & FHA investor shifts
“The City of Baltimore, Maryland suffered a ransomware attack on May 7, 2019. Due to the attack, the City is currently unable to record documents until further notice. In the interim they are issuing ‘Lien Certificates’. Mr. Cooper is offering the following guidance related to loans closed within the city of Baltimore: ‘Any loans with title Continue reading
Thursday, June 13 June 13: Non-QM, underwriting, marketing, AOT execution products; borrower satisfaction tips; 1003 pause
At the direction of the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac (the government-sponsored enterprises, or GSEs) are communicating that the optional use period for the redesigned Uniform Residential Loan Application (URLA) form and corresponding datasets will not begin on July 1, 2019 as previously scheduled. It will begin tomorrow! Just kidding. Continue reading
Wednesday, June 12 June 12: LO jobs; reno, MI, broker, IO products; Freddie & Fannie going ape with changes
In the tech world, the question of, “What is real, and what isn’t?” is becoming more of problem to determine than ever before. The latest is in re-programming video and voices to make up whatever is said, just by typing it! Technology is a two-edged sword. What’s going on in the legal profession, technology-wise? “Time’s Continue reading
Tuesday, June 11 June 11: LO jobs; LO training, e-closing, marketing products; FHA & VA changes in the biz
As I head to Kansas today, I have a great quote. Lenders I visit with are optimistic, raising margins to slow volume based on capacity constraints, and entirely different outlook than a few months ago. James Duncan with Texas’ Thrive Mortgage sent, “Watching a lot of what’s going on frequently reminds me of one of Continue reading
Monday, June 10 June 10: LO jobs; correspondent, construction products; automation survey; hedging tool
This morning I find myself in Albany for the NYMBA conference and there is a lot of talk about the political situation, debt levels, and interest rates. It is possible that a country like the U.S. can have a healthy economy and debt at the same time. The problem is “too much” debt, meaning a Continue reading
Saturday, June 8 June 8: LIBOR transition news; state law changes; option ARM thoughts; my life summed up in a joke
As always there is a lot going on with lenders, ranging from the new 1003 all the way to President Trump calling off his plan to impose tariffs on Mexico. With the move down in rates and lenders raising their margins, in general the mood out there is good. But there are always some things Continue reading
Friday, June 7 June 7: Compliance, AE, LO jobs; broker, non-QM products; tariffs & rates; non-QM & expanded products across the biz
Today is National Doughnut Day, but those in financial services are probably more interested in U.S. equities having their second-best day of the year Tuesday after Federal Reserve Chairman Jerome Powell said the central bank was receptive to cutting interest rates to ease the effect of trade tensions on the economy. Powell said the Fed Continue reading
Thursday, June 6 June 6: LO jobs; non-QM, pricing, reno products; vendor news; CFPB/Freedom settlement
Here on the 75th anniversary of D-Day, recall that, “Those who cannot remember the past are condemned to repeat it.” One could easily follow that with, “Those who remember the past can learn from it.” The death of Herb Sandler (Golden West Financial, sold to Wachovia for $24 billion in 2006; Wachovia was purchased by Continue reading
Wednesday, June 5 June 5: LO jobs; sales, digital, cost-saving products; upcoming events & free training; company moves and M&A
I was walking by a classroom recently and I overhead the teacher telling the 1st graders, “Let’s work really hard today – your parents are eager for deliverables.” There are certainly some lenders out there delivering… deliverables. As if someone hit a light switch, many conversations I have around the nation no longer involve “margin Continue reading
Tuesday, June 4 June 4: LO jobs; broker, LO training, anti-fraud products; new MSR index; primer on tariffs, inflation, and rates
What does $3.4 million buy you in Joisey? A 5,600 square foot house on 1.5 acres. In this case, it was the house owned by New Jersey’s Tony and Carmela in The Sopranos. (Ducks in the pool not included.) What does $3.4 million take down in mountains of Colorado? How about 447 acres with a Continue reading
Monday, June 3 June 3: HR, LO jobs; eClosing, u/w products; vendor capital infusion; URLA webinar & other training this week
If you had $85 million you could buy 85 $1 million homes in as many countries, or one apartment in Manhattan’s West Side that includes two Rolls-Royces, a Lamborghini, a house in the Hamptons for a summer, a yacht, Brooklyn Nets season tickets (that’s a plus?), weekly dinners at a Michelin-starred restaurant, a butler, a Continue reading
Saturday, June 1 June 1: USB ports suspect? Relationships matter for vendors; state lending law maneuvers; cool business cards
Web security Thank you to Brian B. who sent along this story on 9 Signs You Might Get Hacked. “62% of small and medium sized companies have been hit by a data breach. Make sure you’re not one of them.” (Although I didn’t see “sending out a free daily mortgage commentary” listed as increasing the Continue reading
Friday, May 31 May 31: Sales, Corresp., AE, LO jobs; broker/dealer, POS products; jumbo/high bal. trends
Congress has become adept at kicking the can down the road, the latest example being, for the 11th time, passing a two-week extension for the National Flood Insurance Program. Those who actually have to earn a profit usually don’t have the time or inclination to delay things, and must act – like closing loans. I Continue reading
Thursday, May 30 May 30: LO jobs; broker, digital, customer retention products; FHA, VA, Ginnie changes run the gamut
My cat Myrtle’s direct exposure to the falling stock market is minimal. Mine, however, has become a sense of concern as I watch the value of my holdings get clocked, reminding me of the proverbial question lenders debate: would they rather have a strong economy and higher rates, or a not-so-strong economy with lower rates? Continue reading
Wednesday, May 29 May 29: LO jobs; processing, sales, u/w products; digital white paper; 40% of MLOs close what % of total volume?
Lenders ask themselves, “Would you fund loans where people cannot buy or sell houses because they can’t check, or record, liens?” Probably not, and this month Baltimore joined other cities that have fallen prey to crippling ransomware attacks. Using a ransomware variant called RobbinHood, hackers crept under firewalls crippling key city systems. Our industry is Continue reading
Tuesday, May 28 May 28: IT, sales, LO jobs; MSR sale, cost bundling, high balance products; the CFPB wants your input!
First off, best wishes to Quicken Loans’ owner Dan Gilbert who was hospitalized Sunday after experiencing stroke-like symptoms. As the lending industry sees 19-month lows in rates (the 10-year hit 1.37% in mid-2016) and focuses on the future and ruminates on the latest big M&A deal (RoundPoint, with its $91 billion of agency servicing and Continue reading
Saturday, May 25 May 25: Libor transition; TN & NJ lending law changes; blockchain, cybersecurity, and FAF’s immense data leak
First off, a nod to the dedicated real estate columnist Kenneth Harney who passed away this week. In lending it’s a full-time job staying abreast of the changes to our industry. Just yesterday, for example, rumors were put to rest with the formal announcement that Freedom Mortgage Corporation agreed to acquire RoundPoint Mortgage Servicing, primarily Continue reading
Friday, May 24 May 24: LO, AE jobs; digital, u/w, recruiting, best-ex products; workflow automation survey
The Memorial Day weekend… Wasn’t it just Christmas? Let’s wrap up what’s on the front burner for execs at the MBA’s Secondary Conference as we see the trade-war driven low rates of 2019. Yes, MLO compensation and licensing is an “issue.” When asked about the status of MLOs being able to move from banks to Continue reading
Thursday, May 23 May 23: AE, LO, Ops jobs; construction, subservicer, reverse products; technology options report
As millions around the globe revel in World Turtle Day, others are more interested about what went on the hallway chatter at the MBA’s Secondary Conference as we see the low rates of 2019. How a few of the big banks (Wells, Chase, Flagstar, to name a few) saw their residential mortgage profit rebound dramatically Continue reading
Wednesday, May 22 May 22: Business opportunities, LO, AE jobs; broker, u/w, warehouse products; conventional conforming news
What’s going on behind the scenes and in the rumor mill at the MBA’s Secondary Conference? There is derision about HUD’s Ben Carson not knowing what “REO” stands for. Holders of mortgage assets like banks and credit unions are very concerned with CECL, and their actions and pricing moves will transfer to non-bank lenders – Continue reading
Monday, May 20 May 20: LO jobs; training, reno, appraisal products; E&O warning; FHFA, Fannie, Freddie rumblings
Tony H. sent, “A conference is a gathering of people who singly can do nothing, but together can decide that nothing can be done.” Not at this MBA event, right!? Here in New York there’s a lot to talk about. Ellie Mae laying off 10% of its workforce, for example. MERS reporting 19,000 eNotes added Continue reading
Saturday, May 18 May 18: State law changes, thoughts on non-QM, borrower credit scores, URLA; the origin of CNBC’s rates
I mentioned to my cat Myrtle that a) I was heading to New York for the secondary conference, which garnered no reaction, and b) that Grumpy Cat was “no longer with us,” which caused her to sniff and stare into the distance. Speaking of the conference, folks will be watching the LTV ratio (lender to Continue reading
Friday, May 17 May 17: AE, LO jobs; DPA, broker, u/w, MSR products; bank, lender, credit union M&A rolls on
A capital markets friend relayed this note recently received from an LO. “When do you think stated pick-a-pay products will come back? I have some borrowers with LTVs less than 70% who could really use that. Can you find us a program to offer?” Huh? Pick-a… Pik-a-chu? As over a thousand capital markets folks head Continue reading
Thursday, May 16 May 16: LO jobs; PR, HELOC, AMC, closing cost, loan trading products; free tech survey
“Rob, have you noticed that CNBC is running mortgage rates on its streaming ticker, on the screen? I wonder how they do it without disclosing APR, etc. It could be very confusing to consumers and harmful to lenders.” I personally don’t watch CNBC, finding it too reactionary and sensationalist, flash and pizazz versus substance. I Continue reading
Wednesday, May 15 May 15: Ops, AE, LO jobs; non-QM, TPO, marketing products; 2-yr yield lower than overnight FF – what is moving rates?
As we nip at the lowest interest rates in 2019, banking regulators are directing their attention to the declining quality of certain farm loans. A Federal Reserve report says from 2016 to 2018, nonperforming-loan ratios rose for farmland and agricultural production, as well as for credit cards and vehicles. Commercial loans aren’t risk free either. Continue reading
Tuesday, May 14 May 14: LO jobs; cap. mkts/MSR, customer service products; training & conferences coming up soon
What’s in a name? Lots. Try asking someone what “gluten” is. (Here’s a comical look at that.) Try asking someone in our business what the difference is between a “mortgage” and a “deed of trust.” How about new MLOs knowing the difference between an index, a cap, a start rate, and a margin? Depending on Continue reading
Monday, May 13 May 13: LO, bus. dev., AMC, AE, cap. mkts. jobs; vendor mgt., reno, pricing products; lender disaster updates
I want an Ethereum-powered home loan! It doesn’t matter that I don’t know what Ethereum is; apparently they’re on their way to NY and CA. “Tokenizing the house” doesn’t sound warm and friendly, but now you can add Fluidity and Propellr to the list of companies other lenders will fret about, or the list of Continue reading
Saturday, May 11 May 11: Agencies continue to transfer risk; blockchain & AI lender news; advice from senior female exec
Everyone is very important at work. In fact, indispensable, right? The time Americans actually take off from work has declined from 20 days per year in 1987 to 17 days in 2017 when the average worker didn’t take six of their paid vacation days on average, which in aggregate amounts to 705 million days of Continue reading
Friday, May 10 May 10: Ops, AE, LO jobs; S&D, correspondent products; FHA, VA, Ginnie, & lender gov’t news runs the gamut
The Federal Housing Administration (FHA) announced a package of incentives to encourage multi-family property owners to invest in thousands of neighborhoods located in Opportunity Zones across the nation. Think reduced application fees paid by property owners applying for certain multifamily mortgage insurance programs for development or rehabbing apartment units located, or proposed to be located, Continue reading
Thursday, May 9 May 9: LO jobs; sales, anti-fraud, affordable housing products; fintech cap raise; Agency news; remember QE?
Attributes like trust, humility, honesty, and transparency aren’t traits assigned to websites focused on originating loans. Human capital is valuable, although one can’t ignore the march of technology. (Boeing is going ahead with plans to eliminate some 900 human inspectors over this year and next, “replacing their jobs with technology improvements.” That’s out of a Continue reading
Wednesday, May 8 May 8: LO jobs; broker, referral, DPA, SRP products; May training & events; new lender & MI products
VA mortgage lenders hit with federal subpoenas? Apparently. Secondary markets (the demand for loans and what investors are willing to pay for them) drive the primary markets: Anything that impacts demand and pricing influence rate sheets. LOs don’t have to be experts in this, but financial institutions are following CECL: the Current Expected Credit Loss Continue reading
Tuesday, May 7 May 7: LO jobs; PoS for sale, training, reno, u/w, recruiting products; misc. vendor news
If you want to have more of your financial future tied to lending, PennyMac Mortgage Investment Trust (PMT) announced the pricing of an underwritten public offering of 8,000,000 common shares. The Company intends to use the net proceeds from the offering for “general corporate purposes, including funding its investment activity, which may include investments in Continue reading
Monday, May 6 May 6: LO jobs; eNote, underwriting, compliance products; non-QM & Ginnie securities update
Welcome to May 6th, the anniversary of the first tequila hangover. (Yes, for those of you who wrote, I know that May 5 is not Mexican Independence Day, which is in September.) Much of Northern Mexico is arid, and in the U.S. the Southwest encompasses some of the country’s most arid territory with annual precipitation Continue reading
Saturday, May 4 May 4: State lending law changes; deep dive into First Choice – there is no Costco Mortgage
Lenders and vendors and investors, coming and going, personnel moving around, programs coming and going… who can keep track? It is important to distinguish between facts, misinformation, and rumors. The industry is realizing that that the likelihood of a large “outside” company like Amazon grabbing 100% of the mortgage market share is nonexistent, but it Continue reading
Friday, May 3 May 3: Sales/bus. dev. jobs; broker, underwriting, tax products; conv. conf. news & an MSR valuation primer
On the trading desk we would always chuckle when someone would occasionally cry out, “Oh! I was working so hard I forgot to eat!” Really? One thing is for sure, though, and that is they’re forgetting to eat at Subway Sandwiches. Subway, the world’s largest fast-food chain, is struggling to adapt to more health-conscious, tech-savvy Continue reading
Thursday, May 2 May 2: Sales, LO jobs; portfolio, construction products; eNote & eClosing news; upcoming training
I was on a flight yesterday to Orlando for the MBAG annual conference on the coast. The plane was packed, half with 4-13-year-old passengers bound for “The House of Mouse.” Shouldn’t they be in school on a Wednesday rather than going to Disneyworld? About her son, I overheard one lady say, “Sage is an accelerated Continue reading
Wednesday, May 1 May Day: LO, AE jobs; non-QM, 1st time homebuyer program training; lender cost/pricing changes
Why don’t you ever see the headline, “Psychic Wins Lottery?” Some people believe that economists have the ability to predict rates, bookmakers have the ability to predict winners and losers, and meteorologists can predict the weather. Remember when Costco was going to take over mortgages? Many predict we’ll see more lenders involved in either M&A Continue reading
Tuesday, April 30 Apr. 30: LO jobs; eNote, appraisal, operating system products; new programs from lenders
Well, we’ve sailed through another perfectly good month. Wasn’t it just New Years? There are plenty of interesting things going on in residential lending. How about, “Still Renting? You’ve dreamed of owning your own home. We can make that dream come true! What’s been holding you back? Don’t have money for the down payment saved Continue reading
Monday, April 29 Apr. 29: LO jobs; reverse, compliance, servicemember products; the CFPB is alive and well
When I was a kid in California, as with my parents and their parents, and their parents, flowers and fruits had seasons. Roses bloomed in the spring. There weren’t any peaches from October through June. Apricots & cherries were eaten in May and June, pomegranates in October and November, watermelon in the summer. (In fact, Continue reading
Saturday, April 27 Apr. 27: LIBOR transition news; Agency & non-Agency developments in the capital markets; G-rated humor
If it weren’t for the capital/secondary markets providing liquidity for the primary markets, mortgage rates would be much higher. By the way, through thick and thin the Agency mortgage-backed security market has been just fine, and liquidity is superb. Let’s see what some of the issues are that originators should be cognizant of. They don’t Continue reading
Friday, April 26 Apr. 26: Marketing, LO jobs; tech, non-QM products; HFA/DPA news; training & events; TBA trading tool
M&A is rampant, big and small, and is expected to continue throughout 2019. There’s a constant stream of individual branch or small company moves, but the latest headline-grabbing news came from a majority stake in Canada’s Lendesk being purchased by Rock Holdings, the parent company of Quicken Loans. Lendesk is provides technology to “connect mortgage Continue reading
Thursday, April 25 Apr. 25: AE jobs; warehouse, underwriting products; Agency news – HomeReady & cannabis
In low down payment and HFA news, HUD, dba the FHA, has agreed to a 90-day stay in implementation of Mortgagee Letter 19-06 (regarding down payment assistance) to have a 90 day comment period. The flurry reminded the industry that there are lots of options out there for low down payment loans. For example, Wells Continue reading
Wednesday, April 24 Apr. 24: Servicing, AE jobs; non-QM, document products; news from FHA, VA, HFAs; Compass & API
How often do you buy candles at retailer Pier 1? Me neither. Due to poor earnings Pier 1 Imports announced it will close another 45 stores (up to 150 if certain targets are not met). Sometimes reporters are prone to sensationalizing things (watch the folks in the background) but one thing that doesn’t need to Continue reading
Tuesday, April 23 Apr. 23: CFO, lobbying, LO, AE jobs; u/w, subservicer products; vendors going ape – raising $, buying lenders, using blockchain
Should small, non-depository mortgage bankers be concerned about big banks renewing their interest in FHA loans? Probably. Bank of America is promoting its $0 origination fee FHA & VA programs. Speaking of low down payments, we have last week’s Mortgagee Letter 19-06. Bloomberg ran a story about “cracking down on no money down home loans,” Continue reading
Monday, April 22 Apr. 22: Credit risk, LO, AE jobs; MI, non-QM, HELOC products; spec pool primer; LO comp & licensing update
Remember NINA loans from 10-15 years ago where the lender would purposely discard anything in the file dealing with income because underwriters didn’t want documentation? Several lenders are now promoting no income, no asset non-owner loans. For example, 360 Mortgage is now promoting its NINA investor loans. We’re at the point where borrowers must prove Continue reading
Saturday, April 20 Apr. 20: Update on move away from LIBOR; state lending law changes from ND, WY, UT
Happy 420 day! (And “Happy Surprise Drug Test Day” tomorrow!) More and more people in more and more states understand what that signifies. And there is gradual pressure to change the Federal view of marijuana use. But until that changes, Federal entities (like Fannie & Freddie) and nationally-chartered banks, will continue to not count income, Continue reading
Friday, April 19 Apr. 19: LO jobs, business opportunities; non-QM, corresp. products; FHA addresses DPAs, Chenoa responds
Saturday my commentary raised the question about whether lenders would rather see a recession, with its typically lower rates, or a burgeoning U.S. economy with its higher associated rates. From out in California, Dick Lepre quipped, “People in the mortgage business are as happy with recessions as the undertakers in Clint Eastwood westerns are when Continue reading
Thursday, April 18 Apr. 18: AE & LO jobs; u/w product, paper on FHA changes; tech report; compliance & Ops news
Experienced originators know that lending is a numbers game. Every 100 cold calls result in 20 conversations, which result in 5 potential leads, which result in 1 closed loan. Or whatever personal ratios are. Not only that, but there is a 2-4-month lag time between those 100 calls and any funded loans that come from Continue reading
Wednesday, April 17 Apr. 17: Underwriting, call center, non-QM products; mortgage M&A rolls on; QE still influencing rates – a primer
Economic doldrums? Probably not – but there is always someone out there claiming dire straits are right around the corner. A CNBC survey of Wall Street experts finds over 96% do not anticipate a recession by summer 2020, 70% are optimistic about the economy, and 30% have a neutral outlook. Fitch Ratings said there are Continue reading
Tuesday, April 16 Apr. 16: LO jobs; coaching, underwriting, franchise products; tech study; Non-QM compliance webinar
Things aren’t always what they seem. Does the mainstream press, or politicians, think about how about how much money it takes to attract top talent to senior roles at top mortgage companies? Elizabeth Warren has led a new proposal to “Respect the Caps.” Stay tuned, as taking Fannie’s president, now at $4.2 million, and Freddie’s, Continue reading
Monday, April 15 Apr. 15: LO, AE jobs; marketing, HELOC comp, post-closing products; new broker products
M&A grab current headlines (Freedom buying JG Wentworth’s mortgage biz being the latest) but it’s hard to put the past behind us, as an industry, when the past continues to grab them as well. “GE to pay $1.5 billion U.S. fine over crisis-era subprime mortgages.” The U.S. Department of Justice stated that GE concealed the Continue reading
Saturday, April 13 Apr. 13: Letters on margin control & the lender’s role in the mortgage process; state law changes
Earlier this week I spent some time with a senior loan officer who was telling me about a friend at a collection agency. The friend was telling the LO that “business has never been better,” and that, collection agencies have found, there is often a 3-4-month lag between collections increasing and economic woes of one Continue reading
Friday, April 12 Apr. 12: LO, sales mgt. jobs; condo, referral products; upcoming events; investing in our biz takes many forms
Loan officers everywhere tell me about “The Bank of Mom and Dad” helping buy homes, either through gifts or co-signing, helping overcome that down payment hurdle. Investing money is often a probability game. Did you know that one of Germany’s richest families, through JAB Holding Company, owns a controlling stake in Krispy Kreme Doughnuts, Peet’s Continue reading
Thursday, April 11 Apr. 11: AE, LO jobs; lease mgt., underwriting, bid tape tools; F/F, conventional conforming updates
Kim Kardashian has vowed to take and pass the bar exam in 2022 without attending law school. You go girl! Few who go that route pass the test. Then again, few accomplish being famous just for being famous. Perhaps her goal is to one day address the MBA’s Legal Issues and Regulatory Compliance Conference (next Continue reading
Wednesday, April 10 Apr. 10: LO jobs, personnel moves; broker, automation, coaching products; asset sale
“My 8-year-old daughter can already read at a 5th grade level and ignore me at a 12th grade level.” Talking about young ‘uns, who needs great grades when… The house belonging to Peter Brand, Harvard’s fencing coach, appraised at $549,300. Two years ago, however, the house was sold to a wealthy businessman (with a son Continue reading
Tuesday, April 9 Apr. 9: LO jobs; cap mkts., disclosure, tech products; vendor mania; Single Security Playbook
Free ice cream at Ben & Jerry’s Scoop Shops today? Count me in! Going back a few days, in Saturday’s commentary I mentioned a company offering blockchain HELOCs to brokers and correspondents. In other tech news, Bitcoin was used as collateral to buy a home in Amsterdam. An actor (the 90’s comedy Mighty Ducks) purchased Continue reading
Monday, April 8 Apr. 8: LO, mgt. jobs; 95%, HELOC, jumbo, non-QM, broker products; M&A rolls on
The move down in rates has sparked optimism about volume (and perhaps margins) out there. But mergers and acquisitions (M&A), and the details thereof, for many reasons, continue. For example, HomeStreet, Inc., the parent company of HomeStreet Bank announced an executed definitive agreement for Homebridge Financial Services to acquire the assets of up to 50 Continue reading
Saturday, April 6 Apr. 6: Fannie’s deals in the cap markets; technology: company offering & securitizing HELOCs through blockchain!
People in different positions in residential lending, like capital markets, IT, and owners, have different concerns. For example, MLOs (mortgage loan originators) are watching the MBA’s moves to correct LO comp, with an eye on either being able to give LOs the benefit of, or holding LOs accountable for, pricing mistakes, or LOs being able Continue reading
Friday, April 5 Apr. 5: Ops, LO, AE jobs; investor wanted; appraisal, construction products; lots of events; Agency changes
Some New Yorkers like to think that they’re at the Center of the Universe. But, though larger Java, in terms of islands, in Indonesia, is home to 135 million inhabitants versus Manhattan’s 1.7 million. (And although Manhattan does have about 125,000 hotel rooms, it is less than Las Vegas’ 152,000 and Orlando’s 150,000.) What about Continue reading
Thursday, April 4 Apr. 4: Capital markets, sales jobs; disclosure, FHA products; primer on servicing values
NASA has taken another step to make interplanetary living a reality, naming the top three finalists for its ongoing 3D-Printed Habitat Challenge. I am sure building something on the moon or Mars is expensive, and the taxpayer foots the bill. But here on earth, how do small and mid-sized builders obtain financing for their projects? Continue reading
Wednesday, April 3 Apr. 3: LO jobs; outsourcing, marketing, broker products; non-conforming & jumbo trends
Anyone traveling near San Francisco may have seen “The Flintstones House” perched on a hill next to the freeway. Neighbors don’t like it. But I guess my mind is officially warped as all I can think of is, “How does an appraiser handle this oddity?” Speaking of odd things, California is opening an office in Continue reading
Tuesday, April 2 Apr. 2: DTC job; legal webinar, recruiting, non-QM, broker products; tech survey; vendor news
“Probability tells you that a toddler has a 50-50 chance of putting their shoes on the correct feet. Parenting tells you otherwise.” Merging or acquiring is a costly exercise and participants hope that the probabilities are high of success. The latest news comes from Tennessee and involves FB Financial is selling its wholesale mortgage channel Continue reading
Monday, April 1 Apr. 1: AE jobs; disclosure, HELOC, non-QM, rural products; credit news & shifts in credit guidelines
(Yes, here is today’s actual commentary.) It is well known among loan officers that real estate agents don’t know their client’s credit situation before recommending the buyer to an MLO. What will they qualify for? And is this the beginning of the end for Tri-merge reports? Equifax is planning to team up with Fair Isaac, Continue reading
Monday, April 1 4/1: Jobs; Lender products & services; Agency news; events; legal news; MBA update
Critics outside of our industry say that the mortgage biz is dull, mature, and overly stable. Those inside of it, however, know differently, and see it as an ever-changing kaleidoscope of exciting changes, incredible innovation, and complexities rivaling the Apollo Program. Employment “We put the bank in ‘point bank’ for you. We’re looking for un-motivated, Continue reading
Saturday, March 30 Mar. 30: At $8,600 per loan, now what? Letters on capacity, LO comp, offshoring/outsourcing
It doesn’t help lender’s relationships with their warehouse banks and correspondent investors when independent mortgage banks, and mortgage subsidiaries of chartered banks, reported a net loss of $200 for each loan they originated in the fourth quarter, according to the Quarterly Mortgage Bankers Performance Report released by the Mortgage Bankers Association. The cost to originate Continue reading
Friday, March 29 Mar. 29: AE, LO jobs; investor wanted; warehouse, broker products; Banc of Cal exit; coast to coast training & events
Wells Fargo’s continuing saga continues with the resignation of its CEO Tim Sloan over opening accounts without customer’s permission. “Fortunately” this time it was not for mortgage-related issues, and Allen Park, Wells’ SVP and general counsel, steps in temporarily until a CEO from outside the company is found. Wells recently awarded Sloan a 5 percent Continue reading
Thursday, March 28 Mar. 28: Corresp. group available, LO, AE jobs; F&F changes, Trump wants to promote competition using housing policy
Be careful with your advertising! HUD announced today that it is charging Facebook with violating the Fair Housing Act by encouraging, enabling, and causing housing discrimination through the company’s advertising platform. Not a happy situation. Are you happy? Does “happiness” depend on what state you live in (geographically, not emotionally) or do happy people gravitate Continue reading
Wednesday, March 27 Mar. 27: AE & LO jobs nationwide; digital products; lenders changing what borrowers access and see
Despite finding programs to fit their borrowers being the emphasis for lenders, pricing and margins are a constant discussion topic. For lenders the decline in rates is good news, but for servicers, and servicing valuation, the decline in rates is great cause for concern as assets some thought would be on their books for years Continue reading
Tuesday, March 26 Mar. 26: LO jobs; DACA, eMortgage, comp, loan trading products; comp survey findings; lender disaster news
“Rob, are you hearing that the sudden increase in lock volume is from borrowers who had a lock with one lender moving to another lender?” Not yet, and let’s hope not, loans are “stickier” now, and that this practice was just something unscrupulous parties did in the past. But speaking of past events, Baby Boomers Continue reading
Monday, March 25 Mar. 25: Servicing, non-QM, underwriting products; why rates are this low, and impact on refi population
Sometimes you’re stuck in the middle. (Thanks to Myrtle for that one.) Right now, it seems, rates are done being stuck in the middle and have edged back down leading to refi hopes by lenders. “Hope,” however, is not a business strategy. For the first time since 2007, the 10-year US Treasury yield has fallen Continue reading
Saturday, March 23 Mar. 23: Letters & notes on MLO comp; “fun” with Agency guarantee fees in capital markets pricing
“Rob, the industry is focused on the ‘price wars’ raging in the wholesale channel. But what is to stop any lender from running loans through DU and LP, gaining approval, but pricing the loans, especially high balance, without the 55 basis point gfee, and then selling them directly to investors who would rather have yield Continue reading
Friday, March 22 Mar. 22: LO jobs; Enforcement action webinar; Non-QM snapshot; German 10-year yield drops below 0%
Congrats to former President Jimmy Carter. As of today he is no longer just the oldest living U.S. president, but now is the longest-living in the nation’s history. Created in 1986 LIBOR was not around during his presidency, but the transition away from using LIBOR is also making news. The Alternative Reference Rates Committee, a Continue reading
Thursday, March 21 Mar. 21: Ops. mgt., sales jobs; vendor mgt., appraisal, compliance products; FHA changes turning heads
Want a growth industry? How about aging? PulteGroup’s Del Webb 55+ brand will build 10 new Del Webb communities, planned to open over the next 18 months. Boomers welcome! Another growth industry is…Wite-Out?! Often used as the butt of jokes about using it to “fix” mortgage applications, correction fluid sales are doing fine (+1%) as Continue reading
Wednesday, March 20 Mar. 20: AE, LO jobs; sales, investor, construction products; servicing study; Citi’s penalty & CFPB/compliance news
Why do us capital markets folks seem to speak a different language? To better understand what secondary marketing folks deal with every day, here’s a piece titled, “Best Execution in Mortgage Secondary Markets” for anyone wanting to know what’s involved after a loan funds. (The information hasn’t changed much, if at all.) Yes, numbers are Continue reading
Tuesday, March 19 Mar. 19: LO jobs; sales, marketing products; lender training; misc. vendor, MBS platform updates
At roughly $8,500 per loan and continuing to defy gravity, scholars disagree on whether vendors lower the cost of originating a residential loan. But then again, scholars disagree on everything. (We can expect new cost figures from the MBA early next week, of great interest given lower volumes.) There are over 1,400 vendors that “touch” Continue reading
Monday, March 18 Mar. 18: Cap. mkts., LO jobs; banker-to-broker, warehouse products; LO, 1099 comp – brokers, MBA weigh in
I hope that I never get to the point of writing things down on my “to do” list even after I’ve done them, just so I can cross them off the list. Or enjoying combining multiple “to do” lists into a master list, although (maybe) I’m already there. Many people in our industry wish the Continue reading
Saturday, March 16 Mar. 16: Notes on tiered commissions, moving offshore, cybersecurity; Agencies transferring risk
LO comp answers, outsourcing/offshoring, compliance, and credit risk are the topics du jour. Let’s jump in – the water’s fine. Why outsource? On the topic of outsourcing or offshoring, company owners are drawn to sending non-customer facing jobs overseas, where other countries have more skilled engineers graduate every year from college than the U.S. has Continue reading
Friday, March 15 Mar. 15: COO, sales jobs, MSR buyer wanted; broker products; M&A update – shell available; hedging builder forwards
I didn’t know that America has a “most hated” type of home loan until Bloomberg “informed” me that reverse mortgages are… hated. Hated? Couldn’t the author have focused on the positives? Did you know that 87% of properties across the country are in an area eligible for 1 or more home ownership programs? Apparently. Employment Continue reading
Thursday, March 14 Mar. 14: LO jobs; mobile app, broker, digital products; loan package for sale; fee & pricing changes
Happy pi day, 3.14… Did you hear about the three statisticians that went out hunting? They spotted a rabbit. The first shot too high. The second shot too low. The third cried out, “We got it!” Statistics are tricky things (are sales of new homes down because of high prices or lack of inventory?), and Continue reading
Wednesday, March 13 Mar. 13: AE, LO jobs; recruiting, sales, compliance products; upcoming training & events; what to call UMBS?
Builders, appraisers, & real estate agents love to talk about square feet. Houses are becoming larger as households have become smaller. Right now, the average square footage for an American home is about 2,600 square feet, but the average American family has decreased from 3.67 people in 1948 to 2.55 people in 2012. This means Continue reading
Tuesday, March 12 Mar. 12: Legal, LO jobs; non-QM, investor, DPA products; VA, FHA, USDA Ginnie news; F&F’s good UMBS news
This morning I’m feeling old after a 3AM wake up call to travel from Ellie Mae’s conference in San Francisco to the MBAKY in Louisville. (Speaking of “old,” the other day I saw an elderly couple walking down the street sporting identical T-shirts printed with, “Do not resuscitate.” But with big arrows underneath pointing to Continue reading
Monday, March 11 Mar. 11: AE, LO jobs; AI, recruiting, subservicer products; Freddie, Fannie changes in primary, secondary, & servicing areas
How do you pay your bills? (Do you pay your bills?) Cash? Check? Automatic debit? There is a myriad of ways that borrowers remit their mortgage payments, with auto-pay (28%) and a mortgage servicer’s website (22%) “taking up half of the pie” per the Mortgage Bankers Association. (“Servicer mobile applications are emerging and poised to Continue reading
Saturday, March 9 Mar. 9: Letters on LO comp, lack of concern about cybersecurity, advice from women for women new to our biz
“Women who seek equality are underachievers!” So goes a recent quote from a letter from a reader. Here’s a story, the subject being female firefighters from Ghana launching the first gender discrimination case, based on a woman who was fired while in labor! A seventh woman has joined a proposed $100 million class action alleging Continue reading
Friday, March 8 Mar. 8: AE, bus. dev. jobs; customer service, digital white papers; primer on how spec pool pricing helps sellers
Catsup or Ketchup? Language is fascinating. The mortgage biz is filled with acronyms, and the last time I counted there were over 850 commonly used abbreviations that are Greek to anyone outside of the biz. Okay, I just made that number up, but it is an overwhelming number. (What’s a “HENRY?” High Earner Not Ready Continue reading
Thursday, March 7 Mar. 7: Sales, LO jobs; underwriting, marketing, hedging products; what is moving rates; new humor
“Rob, one of my LOs was heard about a program that offers 97% 1st with no MI and up to a 105% CLTV with a community 2nd, when approved for the 1st, they’re approved for the 2nd. A shared appreciation model with 0% on the 2nd. True? I am not your “deal desk” but I Continue reading
Wednesday, March 6 Mar. 6: LO jobs; underwriting, temp buydown products; upcoming events; vendor String acquired
As most of us gird our loins for “springing ahead” this weekend, it is important to remember that U.S. citizens are, in general, a giving people. Thank you to John Johnson, Chairman and CEO of Birmingham’s MortgageAmerica, for passing along this site to anyone who’d like to donate to help the victims of the tornadoes Continue reading
Tuesday, March 5 Mar. 5: LO jobs; recruiting, broker, lead-gen products; women’s advice for those new to our biz
Equal pay rates and equality for men and women in the U.S.? Nope – our world ranking isn’t so hot. Turns out, however, that the construction industry is one business where women are “shattering the glass ceiling” and making their mark in the male-dominated part of the economy. Gender aside, can you imagine a company Continue reading
Monday, March 4 Mar. 4: LO jobs, personnel additions; combo, underwriting products; random vendor developments
As the nation watches the terrible tornado-related events and casualties in Alabama, and sympathizes with those impacted, the rebuilding has already commenced. Constructing or repairing a house hasn’t changed much in decades, but there is some innovation in building materials and residential construction: transparent wood, bamboo-reinforced concrete, and bricks that breathe for example. In residential Continue reading
Saturday, March 2 Mar. 2: Notes on common sense technology selection; blockchain, cybersecurity; state lending laws keep changing
Technology, cybersecurity, non-QM, and state residential lending law changes… they ain’t going away, so you may-as-well have some learnin’! Being smart about technology, blockchain, and cybersecurity M sends, “I want to add my $0.02 to your Saturday commentary. I have worked in mortgage technology for about 15 years now and my last couple years have Continue reading
Friday, March 1 Mar 1: CFO, LO, AE jobs; correspondent news around the biz; vendor name change
I like economists and math PhD.’s but there is some truth that “experts” have picked 8 of the last 4 recessions. While the U.S. economy is considered to be broadly healthy, as shown by yesterday’s GDP data, at some point they’ll be right, right? Experts point to banks appearing to tighten criteria for commercial and Continue reading
Thursday, February 28 Feb. 28: LO jobs; non-QM, robotics products; personnel moves; lender profit study; PennyMac/MCT API bidding news
Lenders need to be aware of the myriad of things that indirectly impact our business. The poverty rate declined overall in 2017 but the rate among Hispanics had one of the largest year-to-year drops across demographic groups and was the lowest since poverty estimates for Hispanics were first published in 1972. Nice! We can balance Continue reading
Wednesday, February 27 Feb. 27: LO jobs; sales training, digital products; wholesale news across the biz; Zillow & Chase news
As opposed to HomeBridge Financial, which appears to be buying HomeStreet’s origination biz, it is no secret that JPMorgan Chase isn’t an ardent fan of residential mortgage lending. This slide in its investor deck spells out why: competition/shrinking margins, and home buying cooling off. “A tough time to be in the business”? Companies like Zillow Continue reading
Tuesday, February 26 Feb. 26: LO jobs; renovation, training, USDA products; primer on why mortgages have different prices
We all learn something every day. For example, did you know that the grocery chain Trader Joe’s is owned by a huge German supermarket chain? Yup. How about loud noise impacts your perception of taste and, in an airplane, you may crave something rich and savory like tomato juice which you haven’t purchased to drink Continue reading
Monday, February 25 Feb. 25: LO jobs; non-QM, workflow & profitability products; study on referrals; events & training coming up
When you hear “Midwest” what comes to mind? Missouri? Illinois? What about “Mideast?” Some place a long way from Missouri! “Rob, have you heard that the cost to originate a loan is different based on geography?” I have, but would be hard-pressed to prove what I heard, which is that the cost to originate in Continue reading
Saturday, February 23 Feb. 23: Notes on LO comp, the role of independent mortgage bankers, LO productivity, and recruiting
The current blog STRATMOR blog is, “How are You Going to Compete?” Many companies have stopped competing, and I am often asked if I track and tabulate residential lender closures. I don’t, but this spreadsheet (go to the very bottom of www.robchrisman.com and click on “mortgage banking closures”) came to me second hand, attributed to Continue reading
Friday, February 22 Feb. 22: Sales, marketing jobs; broker, non-QM products; lenders & investors react to VA & FHA changes
In the good news category, we can all knock “lumber prices” off the list as a hindrance to builders. Prices are down 25% in the last year. Is it “easier” to be a builder, or home buyer data source, than a lender? Zillow has found that being a mortgage lender isn’t a cakewalk in recent Continue reading
Thursday, February 21 Feb. 21: LO, AE, Ops jobs across the nation; mobile app product; TIAA/US Bank deal; FHA, VA, Ginnie news
“Writing about music is like dancing about architecture.” A clever quote about differences which reminded me that there are differences between the national debt and the budget deficit. Beginning in 2022, U.S. annual budget deficits are on track to top $1 trillion, but some economists say that isn’t really a problem as long as the Continue reading
Wednesday, February 20 Feb. 20: Marketing, LO jobs; digital, pricing products; retail digital & program news incl. loanDepot’s smartloan
Watch out for spam emails asking for your phone number. Seems like they are trying to get past the two-factor authentication that sends a six-digit code to cell phones. And please watch out for rogue capital markets people in the lunchroom microwaving grapes just for the thrill of it. Hint: it has to do with skin Continue reading
Tuesday, February 19 Feb. 19: LO jobs; marketing, training products; ‘nother wholesaler exits; new lender products; conforming news
Where’s John Mellencamp when you need him? Lenders in rural areas know that over half of U.S. farm households lost money farming in the past few years. In 2018, the median (half above, half below) farm income for U.S. farm households was -$1,548. U.S. farm debt hit more than $409 billion in 2018, the largest Continue reading
Monday, February 18 Feb. 18: Wholesale team available; upcoming events & training; primer on why rates go down when bond prices go up
So much going on! The economy? Discount shoe store Payless will close all 2,100 of its locations in the United States and Puerto Rico in the coming months. The Agencies? Former Congressman Mel Watt “misused” his position as director of the Federal Housing Finance Agency (conservator of Freddie & Fannie) by attempting to “coerce or Continue reading
Saturday, February 16 Feb. 16: Letters on forecasts for 2019, the role of appraisals, False Claims Act policy, and LO comp
I know Monday is a national holiday, like Thanksgiving or the 4th of July, so who’s checking emails this Saturday? Darned if I know, but it’s a quick read. (When I was a kid, we had both Lincoln’s and Washington’s birthdays off – those were the days!) There continue to be lots of issues in Continue reading
Friday, February 15 Feb. 15: Sales jobs, business opportunities; construction, marketing products; impressive Agency earnings
Huh? Radian was recently in takeover talks? I only know what I read in the newspapers! Sometimes I wonder if everyone isn’t in M&A talks to one degree or another, and rumors continue to swirl about a publicly-held bank in the Northwest spinning off its mortgage division. There’s a lot going on in our biz, Continue reading
Thursday, February 14 Feb. 14: LO jobs; digital white paper, customer service, pricing products; another False Claims action; risk transfer status
I like Baltimore. It has cool row houses, the Edgar Allan Poe House & Museum, Babe Ruth’s birthplace, Fort McHenry, the Ravens and the Orioles, but… bedbugs? Yes, for the third year in a row Baltimore is tops in the U.S. for bedbugs. (How’d you like to be in charge of that survey, and be Continue reading
Wednesday, February 13 Feb. 13: AE jobs; reno, AUS, marketing products; lender legal news; news on OB’s index, flood insurance, ditech’s Ch. 11, Ellie’s purchase
Amazon accounts for nearly 50% of the ecommerce activity in the United States. With that kind of delivery service, it isn’t hard to see why malls are suffering. Which is why, all across the nation, malls are being re-developed, re-purposed, whatever you want to call it, into mixed-use and housing projects. Projects in Phoenix, Cincinnati, Continue reading
Tuesday, February 12
From Twitter: “When self-driving cars become mainstream, dead old people will occasionally just arrive places.” Morbid humor aside, will it really help traffic when cars are programmed to take laps around city blocks rather than look, and pay, for parking? Speaking of city blocks, how’s your jumbo product? If you’re an independent/non-depository mortgage bank, the Continue reading
Monday, February 11 Feb. 11: LO jobs; broker, digital, CRM tools & news; conventional conforming changes continue
When I grow up, I want to live…next to the airport? Usually, airports are there before people move in around them, and then the residents all complain about the noise despite the airport already being there: Not in my backyard! But in some areas land is scarce, and there are big projects going in near Continue reading
Saturday, February 9 Feb. 9: A dive into news about lending to both ends of the age curve
I’m getting old. Most of us are. (Although some attendees at mortgage conferences don’t seem to be aging much at all, for whatever reason.) I was recently listening to a speech on demographics from the back row and the speaker kept talking about Asian Place. I thought to myself, “Asian Place? I believed I was Continue reading
Friday, February 8 Feb. 8: LO jobs; broker, automation products; nationwide bank M&A news; slowing Europe helping U.S. rates
Here’s some trivia for today’s potluck in the Shipping Department: Las Vegas has 150,000 hotel rooms and spending a night in each would take you 411 years. Less trivial, a couple “sand states” over, Apis Cor, a Russian 3D printing construction company, and Sunconomy, a U.S. construction company, have received permits to build their first Continue reading
Thursday, February 7 Feb. 7: Sales mgt. jobs; sales, non-QM, cap. mkts., fraud protection products; MGIC’s pricing engine; BB&T/SunTrust deal
Guys – here’s your one-week warning for Valentine’s Day. In related news, countless scientific studies have proven that a male human being is incapable of folding the bottom sheet from a bed. I mention this, on a personal note, because I am still unable to even fold a t-shirt after watching this amazing short video Continue reading
Wednesday, February 6 Feb. 6: LO jobs; broker, sales, digital products; Agency news; comp survey – guarantees still out there?
Fun with numbers! Here’s something interesting in the finance world: The number of public companies in the U.S. has decreased by almost 50% from 1996 to 2016 (7,322 to 3,671). What does that mean for investment dollars – is it all going into private equity? What if your career was entirely wrapped up in Initial Continue reading
Tuesday, February 5 Feb. 5: LO jobs, layoffs; LO products, digital white paper; training & events across the country & in your living room
The other day I was on a Southwest flight and I noticed someone on the aisle seat crumple up a couple of unused tissues and put them on the empty middle seat so that no one would want to sit there. What’s up with that? For something that won’t make you shake your head, the Continue reading
Monday, February 4 Feb. 4: West Coast LO jobs; new broker non-Agency product; DPA aid; econ. news keeping rates low
“All mushrooms are edible. Some are only edible once.” I am positive there are families in the U.S. that only buy or sell a house once in their life, and if that house sells above or below the asking price depends on a) how accurate the asking price was compared to the market, and b) Continue reading
Saturday, February 2 Feb. 2: Letters & notes on rate locks expiring, non-QM appraisals, housing & economics
With one partial government shutdown over with, and another possibly looming in less than two weeks, lenders continue to try to help their borrowers as best they can regardless of government antics. Lenders know that with the vast majority of their clients interest rates aren’t the primary obstacle. Letters to me focus on programs, products, Continue reading
Friday, February 1 Feb. 1: AE, LO jobs; deals completed, lender products; FHA/VA/Ginnie news; HMDA & compliance update
I can tell it’s almost Valentine’s day since Costco just put out the Halloween decorations. Speaking of Costco, its minimum wage is now $14 per hour. I recall reading that nearly one-third of our nation’s workforce, 41 million people, make less than $12 per hour. Jobless claims, ADP employment, and the employment statistics from the Continue reading
Thursday, January 31 Jan. 31: Cap. mkts., LO jobs; Ginnie, Freedom, loanDepot; digital trends report; Rule 4210 delayed again
Rumors of a cancelled President’s Club award event in a mortgage division of a bank in the Northwest have tongues wagging about acquisition rumors by a larger bank. Certainly 2018 was a year filled with rumors, and 2019 is beginning the same way whether it is with depositories or top 10 wholesalers. Hopefully significant job Continue reading
Wednesday, January 30 Jan. 30: LO, AE, recruiting jobs coast to coast; profitability products; events, free webinars, training coming up soon
Here’s something for senior management to do some time. Casually ask someone under the age of 30, who is not in the business, like your server at The Olive Garden, how or where they would obtain a home loan. It is very telling, especially if you’re thinking about where to spend marketing dollars. As the Continue reading
Tuesday, January 29 Jan. 29: Sales jobs; cap mkts, sales products; bank competitive pressures from all over; good flood insurance news?
Think you have trouble finding good talent in the mortgage biz? The L.A. Times writes that President Trump signed an order to hire 15,000 new border agents two years ago and Customs and Border Protection paid $60.7 million to the consulting firm Accenture Federal Services to “recruit, vet, and hire” 7,500 such officers over five Continue reading
Monday, January 28 Jan. 28: LO jobs; TPO, sales, underwriting products; conventional conforming lender & investor changes
Another 5-day work week. Sigh. To some it’ll seem “longer than a CVS receipt.” To others it will fly by. What is also flying is the market in Boise, Idaho. Idaho is now the fastest growing state in the nation, percentage-wise, and with it comes traffic and other infrastructure problems. Is it becoming the new Continue reading
Saturday, January 26 Jan. 26: Psychology, lotteries, and rate locks; letters on banks, credit unions, and non-banks in lending
Before I forget, Friday’s commentary contained a comment about why flight attendants say, “We’ve begun our initial decent.” Thanks to Chris Michalak, long-time pilot, who answered this with, “There are actually multiple ‘descents’ on a flight’s arrival route. Air Traffic Control (ATC) will typically clear the flight to descend out of cruise altitude down to Continue reading
Friday, January 25 Jan. 25: AE mgt., sales, LO jobs; cap. markets, condo products; LO turnover study; conv. conforming changes continue
For me last week included Orange County and Connecticut, this week Memphis and So Cal, and next week Atlanta. I find it curious when a flight attendant says, “We’ve begun our initial descent into (wherever).” Why initial? I hope there isn’t another decent after this one on a flight. There are plenty of industry vets Continue reading
Thursday, January 24 Jan. 24: LO, non-QM, automation products; misc. vendor news; political, not economic, news impacting rates
I think that keeping my personal information and passwords on my yellow note pad is safer than putting it “in the cloud.” More than 24 million financial and banking documents related to mortgages and other consumer loans were leaked online due to a server security lapse. Lawyer-up! “Running an Elasticsearch database,” the server had more Continue reading
Wednesday, January 23 Jan. 23: LO jobs, company wanted; sales products & webinars; Freedom joins FHA & VA pricing competition
The wholesale pricing wars continue, the latest salvo from Freedom Mortgage in the FHA & VA stadium (see below). Fans of FHA lending, who tend to bristle at the suggestion that the program is “subprime redux,” pay careful attention to what is going on in Washington with Freddie and Fannie. Last week House Financial Services Continue reading
Tuesday, January 22 Jan. 22: LO, sales jobs; asset verification product; Fannie & Freddie changes run the gamut, incl. shutdown underwriting shift
“Some people are so poor, all they have is money.” Are you really rich? Me neither, money-wise. Those of us who don’t own private jets tend to be fascinated with those who do. But some of the headlines are startling. How about “26 of the World’s Richest Own the Same Wealth as Poorest Half” in Continue reading
Monday, January 21 Jan. 21: Relationship mgt., LO, AE jobs; sales training; capital markets dive into Agency CRTs – transferring risk
For folks who like numbers, here’s some mortgage trivia. The average mortgage as of Q2 2018 according to Experian was $132,029. Households are paying 9.8% of their disposable personal income to stay current on all of their loans, including mortgages, according to the Fed, which is significantly below levels over the past 30 years – Continue reading
Saturday, January 19 Jan. 19: News on LIBOR transition, notes on the shutdown, nonbank residential lending, MBS duration & prepayments
While winter storms range around the United States, and George Bush is delivering pizza to his unpaid secret service detail, we enter the Martin Luther King Day weekend with a lot going on in residential lending. Sure long term rates have moved down, and more or less stayed there, leading to murmurings of more refis. Continue reading
Friday, January 18 Jan. 18: LO jobs; condo, sales, business intelligence products; Freddie & Fannie program & process changes
For the first time in history, the six biggest banks — JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs and Morgan Stanley — made $100 billion in profit in a year. Yowzah! There’s a lot going on out there, and Ben Smidt put out his “Mortgage Expert Insights on Business Planning Strategies” that Continue reading
Thursday, January 17 Jan. 17: LO jobs; Subservicer, non-Agency products; world debt increasing; primer on “duration” and mortgage pricing; Chase deal
Time has a way of slipping by. For example, I’ve really been meaning to transfer a bunch of Lotus 1-2-3 and Quattro Pro spreadsheets I have off of some floppy disks and onto my laptop but never seem to get around to it. Speaking of time passing, Moody’s send out a warning that if the Continue reading
Wednesday, January 16 Jan. 16: LO jobs; broker, manufactured home, capital markets products; Radian expands; big banks’ mortgage volumes
As pricing battles rage in the wholesale channel, there has been plenty of news of layoffs in residential lending over the last six months industry-wide, due to reasons like becoming more efficient, lower volumes, or fewer delinquencies, the most recent being BB&T and Mr. Cooper (page 7). What would actually be newsworthy is if a Continue reading
Tuesday, January 15 Jan. 15: AE, LO jobs, personnel moves; CRM, PR, sales products; January training & events
Are rates too high given where the U.S. economy is? Traders, investors, and the Fed think they’re where they need to be, given the information we have. Others believe they will head lower this year due to a slowing economy. The release of bank big bank earnings today is shedding some light on economic temperature, Continue reading
Monday, January 14 Jan. 14: Secondary marketing, LO jobs; digital, property inspection products; Radian’s RADAR Rate product
My cat Myrtle has never flown coach. She doesn’t have the same complaint I have of airline workers who don’t seem to realize that “full” means full. For some reason they’ve created “completely full,” “extremely full,” “very full,” and, “full.” How did that change? Our industry is always grappling with change (as in alteration, not Continue reading
Saturday, January 12 Jan. 12: Notes on tech, blockchain patent, M&A & cyber risk; CA, Ohio, IL busy with lending law changes; NY addresses AMCs
Regulators are encouraging financial institutions to work with borrowers affected by the government shutdown. After two weeks of a holiday workload, some folks are still shaking off the cobwebs whereas others have hit the ground running and have already had business dinners and have conferences on their calendars after this first full workweek of 2019. Continue reading
Friday, January 11 Jan. 11: LO, AE jobs; digital white paper, bid tape product; Fitch rates Cascade; shutdown lending update
E Street Band (think Bruce Springsteen) aficionados know that today is Clarence Clemons birthday (he would have been 77). Music changes, although other things can go on, and on, and on, with little change (like an actual 5-day work week). Keeping with the musical theme, did you know this year is the 50th anniversary of Continue reading
Thursday, January 10 Jan. 10: Marketing, LO, Ops jobs; sales, non-QM products; Ginnie’s Bright resigns; M&A: Movement/Eagle, HFG/Dorn deals
Let’s see… How much does it cost you to produce a residential loan? Pizza for the shippers, underwriter bonuses, copy paper, HP-12C batteries – it all adds up, and pretty soon you’re over $8 grand a loan! Boston Consulting Group released a new white paper exploring how, in the face of rising rates and increasing Continue reading
Wednesday, January 9 Jan. 9: LO jobs coast to coast; non-QM, appraisal products; events this week; new buydown, 2nd look products
The co-founder and former CEO of Southwest Airlines, Herb Kelleher, died last week. I mention this because I read his obituary and the article noted his advice to employees in 2014 when they were upset by efforts to reduce costs and otherwise evolve. “What we’re talking about here is your future. If we don’t change, Continue reading
Tuesday, January 8 Jan. 8: LO & sales jobs; database, Section 184 products; Lennar/Eagle lawsuit; M&A continues unabated nationwide
In HELOC news, “traditional” lenders know that online lender Prosper plans to offer home equity lines of credit this year. The threats to real estate agents’ business models also just keep coming. Besides Clever, Ribbon Home, Zillow Offers, and Open door, this is now www.HomeGo.com. Who wouldn’t want to sell their house in one day, Continue reading
Monday, January 7 Jan. 7: AE jobs, New Penn now NewRez, homebuyer product; sample of vendor news; rates reflecting slowdown
Let’s start the first 5-day workweek of 2019 off with something entirely non-mortgage related, although “unintended consequences from revenue-based decisions” come to mind. Weight can be a serious matter. (I admit that I have trouble keeping the pounds off with my diet of Cap’n Crunch for breakfast, salami and cheese for lunch, and pasta in Continue reading
Saturday, January 5 Jan. 5: Notes on VA cash-outs, what happens after a merger or acquisition; HMDA fields ready for input
The new year is off to a bang with VA cash-out changes coming, rumors of a well-known AMC exiting the business, state law changes, borrowers wanting a Nordstrom experience at a Costco price, M&A continuing, and the government shutdown. (By the way, despite the IRS remaining closed during the partial government shutdown, on Monday, January Continue reading
Friday, January 4 Jan. 4: MI, LO, AE jobs & promotions; non-QM, joint venture products; Agency shutdown news; flat rates in 2019?
Some view the end of one year and the beginning of another as an artificial construct, created by human intervention. Others take careful note of what happened during the year. For those in the latter category, Freddie Mac tells us that at the end of 2018 the average interest rate on a 30-year fixed-rate mortgage Continue reading
Thursday, January 3 Jan. 3: LO, production jobs; broker, digital products; Jan. events incl. ARM webinar; basic primer on how rate sheet pricing is set
According to the National Association of Realtors (NAR, not the NRA), Americans 36 and younger represented the largest share of home buyers (34%) in 2016. It was the fourth straight year in which this age group paced the home buying landscape, and my guess is that it was that way in 2017 and 2018. (By Continue reading
Wednesday, January 2 Jan. 2: AE, underwriter, LO jobs; warehouse, marketing products; important VA cash-out changes on tap
Last week I noted a STRATMOR study that shows, pretty much year in and year out, that traditionally, 82% of residential production comes from 40% of the loan officers out there. Thank you to Kirk H. who sent a note and video on Price’s Law: The square root of the people in any domain do Continue reading

2018 (305)

Monday, December 31 Dec. 31: Rates, the Fed, world economies, affordability, and the shutdown – all tied together
How important is it for lock desk personnel to charge the correct fees for rate lock extensions? Very. Lock mistakes were included in Wells Fargo’s latest settlement with states, this time around for $575 million. There were other non-mortgage items listed, however, including opening millions of unauthorized accounts and enrolled customers into online banking services Continue reading
Saturday, December 29 Dec. 29: FEMA reverses flood ruling; cybersecurity notes; observations on general housing trends
Congrats to anyone involved in lending and real estate: The Federal Emergency Management Agency will issue and renew flood insurance policies, reversing an unexpected and controversial ruling the agency released earlier this week. Some critics said they wished the “no issuance” ruling to stand to increase ire against the government… Cybersecurity One time I saw Continue reading
Friday, December 28 Dec. 28: Doc automation product; FHA & VA changes around our biz; Agency deals continue to share risk
“Rob, should we be staffing up for another refi boom?” It seems like most lenders are pausing during the holidays to take stock of current staffing levels before adjusting them one way or another. Or running “what if” scenarios through someone like Riivos. In terms of the pool of eligible loans to refinance, who’s left Continue reading
Thursday, December 27 Dec. 27: Non-QM, marketing products; shutdown update, incl. flood insurance setback; there are over 1,400 vendors?
The US taxpayer has been bearing the credit risk of 90% of all new origination over the past 10 years. What about property/collateral risk? Yesterday FEMA issued a new opinion disallowing new or renewal flood insurance policies during the partial shutdown of the federal government. NAR weighed in. “Today’s ruling comes contrary to Congressional intent Continue reading
Wednesday, December 26 Dec. 26: MI jobs, marketing product; another mortgage settlement; shutdown update for lenders; rates are low cuz…
This government shutdown is over 215 miles of fencing along a 2,000-mile border. Rate-wise, there is growing thought that the Fed has overshot rate changes and that there will be 0 increases in 2019. In other “fun with numbers” news, STRATMOR tells us that, traditionally, 82% of residential production comes from 40% of the loan Continue reading
Monday, December 24 Dec. 24: Rates go up, they go down; a deep dive into what is moving rates and deals being done by the Agencies
I’ve been in capital markets since the mid-1980s. No presidential administration has eliminated business cycles. Although stocks have given up their gains from 2018, rates have been moving lower as of late (including this morning due to political issues). At what point, if ever, do people and analysts talking about an economic downturn actually cause Continue reading
Saturday, December 22 Dec. 22: Notes/news on the Flood Bill, current (ugh) lending environment, state laws, and LIBOR phase-out
The latest on politics and the Flood Bill? The bill to extend it through May 31, 2019 had passed the House. It had passed the Senate earlier, so it now goes to President Donald Trump for his signature. His signing it would be good, as there are some areas of the nation which have flood Continue reading
Friday, December 21 Dec. 21: AE, LO jobs; LO tools, loan defect report out; shutdown’s possible impact on lenders; Verus non-QM deal
Welcome to the Winter Solstice with more daylight in the Northern Hemisphere every day for the next six months. Today is definitely greeted by residents of Fairbanks, Alaska where the sun sets at 2:40 in the afternoon (with a high temperature of -14). More sunlight isn’t all that’s going to be happening. According to Private Continue reading
Thursday, December 20 Dec. 20: AE & LO jobs; subservicer, AMC, warehouse predictive products; vendor news; rate hike squeezing lenders and banks
All kinds of things are being found. A woman in Missouri’s “tiny house” was found after being stolen. Then New York Times found more money to pay its crossword puzzle constructors ($500 for a weekday edition). Of the $300,000 scattered from a Brink’s armored truck in New Jersey, $125,000 has been “found” and turned in. Continue reading
Wednesday, December 19 Dec. 19: LO jobs; vendor search & tech tools; lender M&A continues; global slowdown pushing U.S. rates
There are lots of interesting questions out there. “Why didn’t Tarzan have a beard?” for example. Another is, “Do borrowers know about low down payment loan options?” Lenders and LOs should be educating borrowers on the advantages of these in the slow months. And, “Are there any African American-owned mortgage banks?” NAMMBA’s Tony Thompson answered Continue reading
Tuesday, December 18 Dec. 18: Co. for sale, LO jobs; MLO products; banks buying lenders and other banks, report on M&A
“Rob, I’m no stranger to bribes.” (I am not going to say which mortgage banking production manager jokingly made that tongue-in-cheek statement.) We trust that Fed officials are not subject to bribes or political influences. A poll of 60 economists shows an almost unanimous expectation that the Federal Reserve will announce an interest-rate increase tomorrow. Continue reading
Monday, December 17 Dec. 17: LO jobs; CRM, digital products; FHA & VA changes from Agencies & lenders across the nation
“Sunk cost:” “a cost that has already been incurred and cannot be recovered and is excluded from future business decisions because the cost will be the same regardless of the outcome of a decision.” Bought a new headquarters, or paid a big signing bonus for a group that continually sends in bad loans? Sunk cost. Continue reading
Saturday, December 15 Dec. 15: AI mortgage predictions, borrowers who want to film transactions, First American & blockchain, the SEC & cybersecurity
Computers are everywhere, and there are plenty of people who’d like to get into yours. (Of course, security is not confined to computers. I was on the phone last night with a friend, and he told me that a few years ago his identity was compromised and several credit cards were stolen but that was Continue reading
Friday, December 14 Dec. 14: AE, LO jobs; Full Eagle wanted; compliance, documentation products; loan amount changes in the primary markets
Lots of folks in the mortgage biz like statistics and odds. They may not remember them, but they like them. (As Marcus L. writes, “People still play the lottery even though most of us can’t get the USB in the first time correctly and those odds are 50/50.”) Plenty of home loans are impacted by Continue reading
Thursday, December 13 Dec. 13: LO jobs; digital products; books by lenders, for lenders, or about lenders; False Claims Act rears up; a fun quiz you should take
“Why do people pay to go up tall buildings and then put money in binoculars to look at things on the ground?” It turns out that, in terms of grabbing their pieces of ground, first-time home buyers were more active in the first three quarters of 2018 than at any time since 2005, per Genworth Continue reading
Wednesday, December 12 Dec. 12: LO jobs, compliance personnel moves; non-QM & warehouse products; STRATMOR Tech Insight Study
Who among us has pushed for abolishing the mortgage-interest deduction, supported getting rid of government subsidies for the 30-year fixed-rate mortgage, putting Fannie and Freddie into receivership, and supported ending the sweep of F&F’s profits into the Federal Government? The answer is Dr. Mark Calabria, currently working for Mike Pence, and if confirmed by the Continue reading
Tuesday, December 11 Dec. 11: LO jobs; LO training, CRM & recruiting products; December training still available; FHFA leadership conjecture
I’m a capital markets guy. “Bespoke luxury” isn’t in my vocabulary. First-time home buyer prices and floorplans aren’t in the cards at the new Aston Martin apartment building in Miami. If you buy one of the 47 most expensive apartments, they come with a new DB11. And, not to be outdone, Porsche also has a Continue reading
Friday, December 7 Dec. 7: LO jobs; broker, non-del, warehouse products; vendor/service provider directory; yield curve primer
The year has sped along, and here we are at Pearl Harbor Day already. Although mortgage rates have lagged, what has pushed Treasury rates down? Released earlier this week, the Federal Reserve’s latest report on economic conditions, known as the Beige Book, says most of its 12 regions achieved satisfactory growth in November but also Continue reading
Thursday, December 6 Dec. 6: LO, sales mgt. jobs, recruiting service; profitability products; New Penn re-branded; what is pushing rates lower
I still receive questions about HMDA. It’s good to know about the 2018 edition of A Guide to HMDA Reporting: Getting it Right! (the Guide). Developed by the Federal Financial Institutions Examination Council, it provides a summary of certain key requirements of the Home Mortgage Disclosure Act (HMDA). Features include “Where to Look” hints, and Continue reading
Wednesday, December 5 Dec. 5: LO jobs, promotions; QC & fulfillment products, Alt-Doc webinar; recapitalize the Agencies?
There’s a saying: “You may not remember exactly what someone said, but you’ll remember how they made you feel when they said it.” Are you looking for a good article on what happens when loan officers work to improve the borrower experience? STRATMOR Group worked with Certainty Home Loans on this case study that offers Continue reading
Tuesday, December 4 Dec. 4: LO & AE jobs; LO products; December events & training; servicing sale with CRA loans
Thinking about locking a loan tomorrow during the National Day of Mourning for George Bush? With the bond markets closed, plenty of mandatory execution desks, like Wells Fargo’s, will be closed. Check with the specific investor regarding best effort, bulk, AOT, and other commitment options tomorrow. Even though the market will be closed, Federal Reserve Continue reading
Monday, December 3 Dec. 3: LO & sales jobs, layoffs & promotions; sales, education products; bond market watching jobs & China
I admit that I’ve become jaded over the years. Another potential government shutdown comes and goes. As always, our industry, and more importantly those with insurance, must deal with the potential uncertainty of the flood insurance program (NFIP) being caught up in the budget negotiating. So late last week we received, not a one-year extension, Continue reading
Saturday, December 1 Dec. 1: DACA – lenders & investors decide residency; URLA/1003 questions for every MLO to ask
My cat Myrtle never pays attention to rumors. Pine-scented cat litter next door? She shrugs. Line-caught salmon for dinner every night up the street? Couldn’t care less. Not so, however, in mortgage banking as rumors and bad-mouthing by some continue. How would you like to receive this email from a respected owner of a mid-sized Continue reading
Friday, November 30 Nov. 30: LO jobs; paper on fraud, construction product; FDIC & non-bank lending; the Fed to start watching OBFR instead of Fed Funds?
As one Native American said, “Only a white man would cut two inches from the top of a blanket, sew it to the bottom, and think he has now has a longer blanket.” (Feel free to use that one wherever you like.) Winter is coming, with its increased blanket needs. According to the Census Bureau, Continue reading
Thursday, November 29 Nov. 29: LO, AE jobs; broker, fraud, subservicing products; training & events in the next 2 weeks; Fed speech moves rates
Yes, MLO commissions are dropping. But the traditional 6% real estate agent commission continues to be under attack as well, the latest salvo fired from Clever, a real estate startup that connects homeowners to top rated agents in their area that list their home for less commission. (“Our main goal is to connect potential sellers Continue reading
Wednesday, November 28 Nov. 28: LO & mgt. jobs; non-QM product, construction webinar; lender and bank M&A going bonkers
Sorry for the length of the commentary today, but there’s a lot going on. In most of the U.S., the 2019 maximum conforming loan limit for one-unit properties will be $484,350, an increase from $453,100 in 2018. There is more detail below. Although modestly good news for lenders, as noted yesterday, jumbo mortgage rates are Continue reading
Tuesday, November 27 Nov. 27: AE & LO jobs; sales, branding, non-QM products; “don’t fight the Fed” when it comes to rates
Will today or tomorrow bring the 2019 Freddie and Fannie loan limit change announcement? Stay tuned, as it usually released soon after Thanksgiving. Is it arguably less impactful since many jumbo programs have lower rates than conventional conforming products since they don’t have guarantee fees, fit nicely into some portfolios, and have lower compliance costs Continue reading
Monday, November 26 Nov. 26: LO & sales jobs; platform, origination, non-QM, LO products; U.S. economy continues to motor along
I want a free vacation! I want a free fancy car in the garage in my newly-built McMansion! Apparently, due to sagging sales, with some builders I can indeed have those things, and more. Builders in many locales are proving that, regardless of which administration is in power, or who takes credit for some aspect Continue reading
Saturday, November 24 Nov. 24: Letters on Property Inspection Waivers, new phishing scam; state law changes & affordable housing fees
The CFPB, uh, the Bureau of Consumer Financial Protection (BCFP), hasn’t gone away, nor has the myriad of federal, state, and local laws and regulations governing banks and non-depository lenders. Unfortunately, in their cutbacks, lenders often reduce non-income producing staff – the staff that focus on federal, state, and local laws and regulations. Not to Continue reading
Friday, November 23 Nov. 23: Agency jobs; Ginnie primer for MLOs; Freddie & Fannie deals continue, transferring risk
“Why is it that when the CDC warns us to not eat romaine lettuce, we take it as gospel. But when the CDC tells us that vaccines save lives, we think they’re part of the Illuminati?” Good question. Another good question is, “Is affordable housing going away?” There is a lack of affordable housing available Continue reading
Wednesday, November 21 Nov. 21: CEO, LO jobs; underwriting product, new non-del correspondent investor; lender disaster news
Do you think non-QM is going to “save your bacon?” After a non-exhaustive survey, it appears that non-QM, aka non-Agency, aka expanded credit, is running at about 3% of overall residential volume. If we do $1.5 trillion this year, my HP-12C tells me 3% equates to $45 billion. Let’s round up and say that’s $4 Continue reading
Tuesday, November 20 Nov. 20: LO jobs & products; 1003 and CRM products; CRA req. study; world economies pushing US rates lower
Here are some tech developments as we seem to be moving closer to machines running our lives, or a loan being approved instantly by reading a fingerprint or retina. No, this isn’t a story from the Onion: British companies are planning to microchip personnel in order to boost security and stop them accessing sensitive areas. Continue reading
Monday, November 19 Nov. 19: LO jobs; HELOC, reno, LOS products; Lehman litigation webinar & other upcoming events and training
Thanksgiving means many things to many people: family time, a half day of work Wednesday, or a four-day weekend. To the staff and students of Johns Hopkins, they are thankful for the gift from Michael Bloomberg, class of 1964, of $1.8 billion (with a “b”). Lenders and their staffs give millions every year to various Continue reading
Saturday, November 17 Nov. 17: The housing market with 5% rates; blockchain update; Grandma’s Thanksgiving letter
The economy is like the weather, with everyone talking about it but there is nothing we can do about it. Some believe that growth will continue and rates will continue higher. Other aren’t so sure. (Thanks to California’s Steve A. who sent this note about Home Depot’s warning of a slow down ahead.) Sure, people Continue reading
Friday, November 16 Nov. 16: AE jobs; profitability and commission products; new products incl. HELOCs, servicing, digital…geocoding bid tapes!
Why is the housing market sluggish despite a solid U.S. economy, solid demographics, and pent-up demand? Those don’t matter if prices are out of reach relative to incomes, and housing appreciation has outpaced income growth for a long time. And lending standards have remained more rigorous than they were during the last housing boom, so Continue reading
Thursday, November 15 Nov. 15: AE, QC, LO jobs; accounting, subservicing, warehouse products; Freddie & Fannie changes roll on
With only week until Thanksgiving there’s a lot going on – every one of these stats impacts lenders. CoreLogic tells us that there are 48,390 homes at risk from the current California wildfires. Believe in climate change or not, or in science or not, one study shows 386,000 homes are said to be at risk Continue reading
Wednesday, November 14 Nov. 14: LO jobs; webinars for LOs; non-QM product; chatter on QM patch, MBS/UMBS; Agencies address languages
Want to spend $100 monthly to pay for $40 parking and $20 beers, but not see the basketball court? Contact the Warriors for your pass. Speaking of monthly payments, borrowers are sometimes confused when they’ve been sending their P&I to one company, and they receive a letter stating their “servicing has been sold” and to Continue reading
Tuesday, November 13 Nov. 13: TPO, LO, account mgt. jobs; non-QM, construction products; training & events nationwide and at home
People vote with their feet. Some population movements are dramatic and garner headlines around the world, others not so much. “About 130,000 more residents left California for other states last year than came here from them…” according to a Sacramento Bee review of the latest census estimates. “They most often went to cheaper, nearby states Continue reading
Monday, November 12 Nov. 12: LO jobs; LOS, POS, compliance products; F&F’s future being bantered about, impacting borrowers
Here’s one kind of advice. “Call your Dad now and ask him what the Wi-Fi password is now so he has time to find the little paper it’s written on before Thanksgiving.” What about something in our biz? “Rob, do you know of any warehouse lenders out there that don’t require audited financials?” Are you Continue reading
Saturday, November 10 Nov. 10: Notes on the new 1003, the gov’t’s role in the credit crisis; state lending law changes coast to coast
My cat Myrtle seems particularly disinterested in things since Tuesday. Do we all have post-election news doldrums? What is the mainstream press going to talk about now? I’m joshing, of course, as there is always something. In this industry, how about the continued efforts by the industry on behalf of borrowers and lenders despite issues Continue reading
Friday, November 9 Nov. 9: AE & LO jobs; vendor & management products; F&F tonning it; LIBOR replacement news
Whether bond loans (we all know how management loves those), non-QM, reverse mortgages, or high loan to values, originators everywhere are working hard for their borrowers and being creative in a compliant manner. For example, from Minnesota Eric Otterness writes, “Recently my team and I closed on a loan for a first-time buyer in Minneapolis Continue reading
Thursday, November 8 Nov. 8: LO & AE jobs; construction & HELOC products; non-QM & sales webinars; Mr. Cooper PUF acquisition details
“Rob, we just went through our third staff reduction. Have you heard of any vendors that work on forecasting or doing ‘what if’ scenarios for lenders rather than us doing layoffs?” Sure – for less than a basis point Riivos helps originators make more money by providing visibility into the financial and operational components of Continue reading
Wednesday, November 7 Nov. 7: LO jobs; non-agency conduit; income & subservicer webinars; lender disaster news continues
Lenders outside of Ohio were mildly interested in the Ohio Governor’s race where Ex-CFPB chief Richard Cordray lost. As forecast, Democrats won the House and the Republicans kept control of the Senate although there were a few surprises, and some results aren’t known yet. There was a fair amount of volatility overnight and each democratic Continue reading
Tuesday, November 6 Election Day: Sales, LO jobs, recruiting, HELOC products; new conduit offering proprietary loans
“I can’t believe my grandpa is voting Democrat this year…he would have never done that when he was alive.” (Or Republican – your choice.) Things aren’t always what they appear. How about how non-conforming rates for fixed terms and ARMS are currently .125%-.25%+ lower than Agency? Crafty MLOs are looking for ways to be more Continue reading
Monday, November 5 Nov. 5: AE, LO, warehouse jobs; capital markets products, S&D buyer; events & training around the nation
Remember the delinquency and foreclosure issues we had several years ago? It is still part of the biz. Hubzu, an online marketing platform, released data ranking the top 20 U.S. markets by the highest percentage of REO properties bought and sold within 2017 (Jan 1 – Dec 31). The data shows that the most active Continue reading
Saturday, November 3 Nov. 3: Letters on Zillow’s event, VA IRRRLs, LO comp; California’s changing lender environment
Many states change their clocks (“Spring ahead, fall back”) shortly after midnight tonight. Time seemed to fly, and me along with it, as I spent this week in Nevada, North Carolina, and Tennessee, and there are some very interesting things going on as lenders and vendors continue to strive to help their clients. For example, Continue reading
Friday, November 2 Nov. 2: LO, AE, sales mgt. jobs; warehouse, subservicing products; lender disaster news; non-QM securitization
Many states “gain an hour” Sunday morning by setting clocks back. Robots don’t care what time it is – will they build your next house? Companies like Modular Home Builder or Baltimore’s Blueprint Robotics Inc. are attracting attention. Houses are built on an assembly line, using robots that fire thousands of nails into studs each Continue reading
Thursday, November 1 Nov. 1: CFO, LO sales mgt., jobs; branding study; disaster advice & research; servicing package for sale
For me October included time in Washington (State and DC), California, Tennessee, North Carolina, and Nevada. Lenders are talking about technology, the rate of change, and the overwhelming options available to LOs. And for home buyers, the process & economics are changing. Thanks to Amy R. who sent along this new company site. The buyer Continue reading
Wednesday, October 31 Halloween: Sales & LO jobs; vendor M&A; what LOs should know about current rates & the economy
“The best part about Halloween is that the cobwebs in my house look like decorations.” For perhaps a morning, the focus for lenders has shifted away from cash flow and recruiting to who will win the yearly Halloween costume contest. The usual favorite (IT – Minions) or the long-shot shipping department (Ninja Turtles)? Perhaps accounting Continue reading
Tuesday, October 30 Oct. 30: AE jobs; borrower satisfaction products; upcoming events span the nation; price compression with high rates
Plenty of vendors and lenders are focused on raising capital, merging, selling, or closing. It doesn’t take a brilliant detective to see the liquidity & earnings problems facing hundreds of lenders across the nation as warehouse banks and other counterparties ratchet up scrutiny and lenders race to reduce costs. How many ducats are in the Continue reading
Monday, October 29 Oct. 29: LO & corresp. jobs; compliance, broker, & app products; legal news from PrimeLending, BCFP, and Lehman – ugh
We have a whole generation of home buyers who have never seen a 5% mortgage rate, an interesting thought. We’re not in the “An ARM is better” territory, but lenders are certainly up for offering their clients all options that will help close the deal. The Mortgage Bankers Association forecasts $1.2 trillion in purchase mortgage Continue reading
Saturday, October 27 Oct. 27: Cybersecurity, password tips, two-factor authentication; blockchain legislation developments
Ever had something stolen? Remember that feeling in the pit of your stomach? It’s not good. Things have become more complex than returning to the bike rack and seeing your Schwinn gone, however. Do you know how to identify and prevent mortgage fraud in your financial Institution? What do straw buyers and wire transfer fraud Continue reading
Friday, October 26 Oct. 26: AE jobs; corresp., health, CRM products; wide array of vendor news; more tariff worries pushing rates
“Well, I’m a standing on a corner in Winslow, Arizona, and such a fine sight to see. It’s a girl, my Lord, in a flatbed Ford, slowin’ down to take a look at me.” What if you want to put down roots there? The town, 3 and a half hours northeast of Phoenix, has plenty Continue reading
Thursday, October 25 Oct. 25: Sales jobs; underwriting, sales tools; subservicer product; credit union primer; legal news from IL
I can’t keep track of the rumors out there! The IRS ruled on the tax treatment of business meals? (True.) Congressional Bank buying McClean Mortgage? (Rumor.) A loan officer at Umpqua stealing a processor’s lunch from the lunchroom refrigerator? (Still researching.) Wall Street firms increasingly buying loans directly from lenders? (True – but remember 2006?) Continue reading
Wednesday, October 24 Oct. 24: Sales, LO jobs, title opportunity; non-QM, tech, sales products; M&A continues; U.S. Bank correspondent re-org
Lenders, investors, and servicers don’t like bankruptcy, and for good reason. Thank you to Brian B. up in New Jersey who sent along this note about how courts are beginning to try to stem the tide of serial debtors who file multiple petitions for bankruptcy protection. “Recently, the U.S. Court of Appeals for the Seventh Continue reading
Tuesday, October 23 Oct. 23: Comp, technology, efficiency products; long list of credit changes around the biz turning heads
“Rob, what do you hear about conventional conforming loan amounts?” That is a timely question. Historically the FHFA, and with it Freddie and Fannie, announce official loan levels for the following year soon after Thanksgiving. (There are always rumors prior.) The loan limits are based on home prices around the nation. After 2008, despite the Continue reading
Monday, October 22 Oct. 22: LO, construction lending jobs; broker, doc products; training & events; False Claims penalty
Residential mortgage bankers are notoriously bad at actually retiring. They usually seem to come back as teachers, consultants, remodelers, etc. But plenty of people do retire, and per U.S. News the #1 place to retire is… Lancaster, PA? Bring a sweater. Jobs People’s United Bank has opportunities for talented mortgage loan originators to join its growing Continue reading
Saturday, October 20 Oct. 20: Straight talk on lending environment; primer on manufactured housing: definitions, primary, secondary markets
When is residential lending a “piece of cake”, a “walk in the park”, or “a cake walk”? Never. There is always uncertainty in the future, always challenges and competition in the present. Yet the industry will help borrowers with about $1.5 trillion in residential loans this year, and something north of $1 trillion next year, Continue reading
Friday, October 19 Oct. 19: Loan mod, LO jobs; data filter product; appraisal white paper & valuation news; cap mkts. products
Everyone, and their brother, knows that the costs for builders to build a home are increasing. Politics aside, it turns out that the tariff changes are indeed impacting the cost of remodeling and building, and NAHB released a list of products affected by tariffs, including nails. Did you know that, per a Freddie Mac poll, Continue reading
Thursday, October 18 Oct. 18: Service & sales jobs; HELOC & digital products; coast to coast upcoming events & training
Whether it is reducing the number of cookies in a package and keeping the price the same or putting less ounces of cereal in a box and keeping the price the same, both are ways of slyly passing on costs to consumers. In housing, the same thing can be done. It turns out that 10% Continue reading
Wednesday, October 17 Oct. 17: LO jobs; digital, warehouse, self-employed UW products; appraisal & valuation updates
As thousands of MBA conference attendees head for the DC airports, what’s the chatter? Regulators who want to remind lenders that not being able to afford a compliance department doesn’t allow a company to make RESPA violations. That it is perfectly legal for builders to offer granite countertops, and to have a preferred lender. Companies Continue reading
Tuesday, October 16 Oct. 16: LO jobs, title co. opportunity; tech products run the gamut; Agency deals helping liquidity and risk transfer
What’s not being covered by the mainstream press here at the MBA conference? How about, given the rough financial conditions, monthly (and not quarterly) financials being requested by warehouse & correspondents? How about some attendees bunking up two to a room to save money? Lenders trying to hire LOs, but the top LOs not wanting Continue reading
Monday, October 15 Oct. 15: LO jobs; digital products, new book for LOs; big bank mortgage earnings; M&A rolls on
What’s new here at the MBA’s conference in Washington DC?