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 peak of 74.3% in April. Per NAR, September also marked the fifth consecutive month of declines in bidding wars. Be careful of mainstream, click-bait press headlines however: just because prices have gone from appreciating 15 percent a year down to 5 percent a year doesn’t mean we’re plummeting. “Irrational exuberance” being removed from any marketplace is a good thing. Besides, we’re heading into the winter. By the way, if anyone is interested in loan & existing home sales size, Richey May’s 2020 HMDA dashboard shows the following loan amount breakdowns: $1-$100,000 2%, $101,000-$250,000 25%, $251,000-$500,000 44%, and $501,000 and higher 29%. And Zelman & Associates sent over the distribution (as of September 2021) for the U.S., showing 16% of existing home closings occurred between $500-750K, 6% of sales between $750-1M, and 6% of sales above $1 million (or 27.5% in aggregate at $500K or higher). (This week’s podcast is presented by DocProbe, the nation’s leading Trailing Documents service provider. It takes control of the entire process and deliver efficient, cost-effective, and reliable document fulfillment so you can get back to closing loans. Today’s episode features an interview with Tom Showalter, CEO of Candor Technology, about the company announcing a patent pending Metascore indicating the overall quality of a loan manufactured by Candor’s machine.)

Broker and lender services & products


Tech Providers! Did you know ReverseVision has API Integrations that could help you expand your offerings and receive a new wave of requests from your lender customers? As the leader in the reverse mortgage industry, ReverseVision continually seeks new ways to empower its tech partners and lenders alike with the fastest way to connect to reverse mortgage lending options and create a seamless user experience across the entire HECM lifecycle. Lenders are regularly asking for a reverse mortgage lending solution within their existing technology. You could be their go-to provider! It is easy to get started,  learn how to partner with ReverseVision today.

Lender Toolkit is offering a digital mortgage nirvana. Its Automation delivers a compliant LE & CD in 5 minutes. Imagine your disclosure desk open 24/7, with disclosures being automatically sent through your borrower portal! The AI Underwriter product offers loan officers, LOAs, and processors a deeper pre-underwrite than any system on the market. By programmatically adding ~90% of the conditions and allowing conditions to be automatically cleared, Lender Toolkit is driving down turn-times and lowering manufacturing costs. “Lender Toolkit’s Digital Mortgage solutions have fundamentally transformed how we do business. Our profitability has skyrocketed, and our employees have never been happier,” said Mark Workens, CEO, Mortgage 1. Read a Case Study for Mortgage One here. Find your nirvana with Lender Toolkit’s full suite of mortgage automation products. Schedule a demo today!

1 UW touch on 70% of loans. 1,100 data cross checks on every click. 7.92 autonomous underwrites per minute. >$1,000 more profit per loan. 0 defects. 0 put backs. Decisions rep & warranted. Happy clients. It’s hard to think of a reason to not contact Candor for more information.

Lakeview understands that the market is dynamic, and your product offerings have to be too. Enter Debt Service Coverage Ratio (DSCR) as part of the SAIL (Superior Agency & Investor Lending) Series, an innovative product that offers your borrowers competitive pricing on single and multi-property loans, quick turn times and the ability to close in the name of an LLC. Connect with Lakeview at the NEMBC and learn more. Not at the NEMBC? Reach out to a Business Development rep in your area today!

Marketing seems to be equated with additional sales opportunities in many firms. But that’s rarely accurate. Marketing is useless unless it significantly displays value to the end user. How much are your campaigns REALLY costing you? Our friends can tell you. Every penny spent is tracked by Monster Lead Group’s real-time analytics and performance insights to outperform your expectations. That’s why Monster’s select clients have seen conversion rates almost five times higher than the industry average. Do you know where your marketing dollars are going? Make it make sense with Monster Lead Group. Schedule a demo today or learn more about what they do on their website.

Is your technology roadmap creating efficiencies or headaches? If your tech roadmap isn’t being enhanced by intelligent automation across all areas of your business, it’s time to upgrade. The Richey May mortgage industry experts, partnered with Zoral’s world-class automation platform, can help you design and implement a tailored technology roadmap enhanced with intelligent automation to create efficiencies, improve reliability, and increase profitability for your business. Intelligent automation can help all your systems run more smoothly and create efficiencies by eliminating repetitive, manual tasks so your employees can spend time focusing on what’s important. Contact us for a demo to see how RM Automate can help you differentiate in a competitive market.

Company-sponsored events & training


Do you need instant access to loan programs and pricing that’s easy to use? Then you need Sprout Mortgage’s iQualifi. During our next Scenario Station Webinar, we will review iQualifi: your go-to program & pricing engine for Sprout Mortgage non-QM, jumbo, and agency loans. Get acquainted with a tool designed especially for originators that provides scenario-based pricing and instant email summaries. Learn more during the Scenario Station Webinar by Sprout Mortgage on Wednesday, November 3rd at 9:00 am PTRegister now! Remember to submit your unique loan scenario on the registration page. Sprout is committed to providing product education and marketing assistance to help you grow. Loan Scenario Desk, bank statement analysis tool, condo review service, and marketing tools via The Sprout Marketing Store mean you can serve more borrowers in less time and with less effort. Loan amounts up to $10 million. Register today.

114 years ago, J.P. Morgan infamously locked 40 New York bankers in his study to solve the financial Panic of 1907. While convened in what has been described as “America’s single most beautiful room,” they helped avert a major economic crisis. Tomorrow, mortgage bankers have an opportunity to solve a modern-day crisis: financing borrowers with student loan debt. Join Mortgage Coach’s Joe Puthur and LoanSense’s Catalina Kaiyoorawongs tomorrow at 2 pm ET for the free webinar How to Turn Student Loan Borrowers into Homebuyers and Increase Purchasing Power. In it, you’ll learn strategies for optimizing outcomes for student loan holders, impact on borrower DTI when the CARES Act student loan payment pause ends, how to increase your referral business with valuable resources for student loan homebuyers and more. Register for the webinar to attend live tomorrow or watch it later on-demand.

XINNIX is hosting a special (day-before) Veterans Day Leadership Lessons webinar with a guest experienced in leading transformational change in business and on the frontline in matters of life and death. Reserve your seat for “About Face! Commanding Your Transformational Change” happening live on Wednesday, November 10 at 1 PM ET. In this webinar, XINNIX EVP, Michael Norton, will have a “fireside chat” with Bryan Price, Executive Director of the Buccino Leadership Institute at Seton Hall University and retired United States Army Lieutenant Colonel. The two will discuss their approaches to leadership development and business transformation that turns away from traditional methods and towards new ideas that elevate success. Leaders, don’t miss this opportunity to hear what the experts are saying about the future of leadership development and how it will transform today’s business challenges into tomorrow’s successes. Register today!

The oldest operating company in the world is Nishiyama Onsen Keiunkan, a Japanese hot springs hotel that opened its doors in 705 AD. Mortgage lenders who would like to enjoy business longevity should attend the upcoming webinar “Low- to no-cost strategies for keeping your pipeline full in 2022” on November 17 at 1 pm CT. Black Knight VP Rick Webster, Monitor Base CEO Louis Zitting and SecurityNational Mortgage Company Chief Strategy Officer Eric Bergstrom will share strategies for maximizing your current data to activate new audiences and drive retention next year. Along the way, Bergstrom will relay innovative ways SecurityNational maintains relevance as a top-50 lender in today’s ultra-competitive market. Register here.

Agencies are like sharks…


Always moving forward. Let’s see what the Government Sponsored Enterprises, uh, the Agencies, uh, Freddie Mac and Fannie Mae, overseen by the FHFA, have been doing lately.

First, it is good to keep things in perspective. The total number of loans now in forbearance, as a percent of servicers’ portfolio volume is now down to 2.15 percent. The share of Fannie Mae and Freddie Mac loans in forbearance is now less than 1 percent (0.97). Ginnie Mae, filled primarily with FHA & VA loans, is at 2.65 percent, and other loans (e.g., portfolio and Private Label Security loans like non-QM and jumbo) stands at 5.13 percent. Go F&F!

Here’s your chance to chime in! The FHFA is seeking comments on potential new GSE disclosure requirements. The Federal Housing Finance Agency (FHFA) announced that it is seeking comment on a notice of proposed rulemaking that would introduce additional public disclosure requirements for the Enterprise Regulatory Capital Framework (ERCF) for Fannie Mae and Freddie Mac (the enterprises).

U.S. Mortgage Insurers (USMI), the association representing the nation’s leading private mortgage insurance (MI) companies, submitted a comment letter to the Federal Housing Finance Agency (FHFA) on its Request for Input (RFI) on “Enterprise Equitable Housing Finance Plans” (the Plans), which articulates a framework by which the government-sponsored enterprises (GSEs or Enterprises), Fannie Mae and Freddie Mac, will be required to prepare and implement three-year plans to advance equity in housing finance. In order to address longstanding inequities in the housing finance system, USMI encourages the GSEs to explore and implement geography- (including historically redlines areas, areas of concentrated poverty, and rural areas) and income-based initiatives to expand minority homebuying opportunities in the conventional mortgage market.

At the direction of the Federal Housing Finance Agency (FHFA), Freddie Mac and Fannie Mae (the GSEs) have published the Supplemental Consumer Information Form (SCIF Freddie Mac/Fannie Mae 1103). Although the GSEs do not require the SCIF, it’s been provided for industry use for those who may find value in collecting borrower homeownership education, housing counseling and language preference information.

In recent post-purchase loan reviews, Fannie Mae identified an increase in eligibility violations in three key defect categories. In this issue of Fannie Mae’s Quality Insider, the top defects are addressed and share common themes, analysis, and tips to help lenders reduce defects and originate quality loans.

Fannie Mae updated In Case You Missed It. Check it out for an overview of policy changes, including Selling Guide updates, Servicing Guide updates, Lender Letters, and Desktop Underwriter®/Desktop Originator® release notes.

Fannie Mae posted the October Appraiser Quality Monitoring (AQM) list.

Capital markets


When it comes to pipeline hedging and loan trading, scale matters! That’s why a record number of independent mortgage banks, credit unions and banks of all sizes are choosing secondary marketing solutions from Black Knight, including the Optimal Blue and Compass Analytics platforms. The two platforms are on pace to execute over $3 trillion of TBA trades and loan sales in 2021. This scale provides the insights necessary to obtain best-in-class trade and loan sale execution across multiple counterparties. As Black Knight clients attest, this scale comes with something unexpected: a personal touch. Clients are supported by dedicated, relationship-oriented analysts and trading teams that provide guidance on a daily, no-voicemail basis. Between its dedication to putting clients first, world-class analytics, and commitment to data integrity and accuracy, it’s no surprise so many capital markets leaders choose Black Knight. Reach out to learn more.

Jobs and housing drive our economy, and economic data over the last week told the story of an economy transitioning from a period of extraordinary fiscal stimulus earlier in the year to one facing headwinds that were expected to be more transitory than what has played out. The advanced estimate of third quarter GDP saw a decrease in growth from 6.7 percent in Q2 to only 2.0 percent for Q3. Supply chain issues led to shrinking inventories and consumer demand drove imports higher while exports fell. Nominal income declined in September following the termination of enhanced unemployment benefits, and, after accounting for inflation and taxes, real disposable income fell 1.6 percent. September also saw the personal savings rate fall to 7.5 percent, more in line with typical pre-pandemic levels.

But lenders and real estate agents, along with homeowners, care about housing. New home sales spiked 14.0 percent in September (±17.9 percent) to an annual rate of 800,000. The median sales price for a new home nation-wide was $408,800 while the average sales price was $451,700.

This week, while the Federal Reserve is expected to keep the Fed Funds Rate at zero following their meeting the market expects the committee to announce plans to begin tapering asset purchases this month. Inflation and tapering. Those are two words we have been hearing a lot lately ahead of Fed officials meeting today. No changes are expected to the Fed Funds rate but however the consensus seems to be that the Fed will announce its first reduction in the pace of Treasury and MBS purchases and discuss whether supply chain snarls causing inflation are temporary, or are longer-term headwinds. While there is concern that the Fed may squelch economic growth with early rate hikes next year, investors have already priced in the Federal Open Market Committee scaling back its massive bond-purchase program as the economy continues to recover. The Treasury will probably also scale down its quarterly sale of longer-term debt, starting with auctions outlined in the so-called quarterly refunding announcement.

After the October ISM Manufacturing Index marked the 17th straight month of expansion for the manufacturing sector indicating strong demand in the face of fraying supply chains yesterday, today’s economic calendar is light. MBA’s latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 6 bps to 2.15 percent of servicers’ portfolio volume in the prior as of October 24. According to MBA’s estimate, 1.1 million homeowners are in forbearance plans. Later this morning brings Redbook same store sales for the week ending October 30 and the aforementioned FOMC meeting starts. Today’s schedule sees the Desk targeting up to $4.8 billion of conventional MBS. We begin the end of the Mexico’s Day of the Dead with Agency MBS prices better a few ticks (32nds) from Monday night and the 10-year yielding 1.55 after closing yesterday at 1.58 percent.

A turkey walks into a bar in Louisville and the bartender asks, “What are you?”

The turkey replies, “I’m a wild turkey.”

The bartender chuckles and replies, “Hey, we have a drink named after you.”

The wild turkey, incredulous, asks, “You have a drink named Kevin?!”

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to Copyright 2021 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)


Rob Chrisman