Daily Mortgage News & Commentary

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 of money this year, where will they spend it? For $125k you will soon be able to visit the Titanic. It’s changed since the days of Rose & Jack; certainly, it was a tragic event. In serious, tragic world news, Denmark is killing 15 million minks due to a contagious coronavirus mutation. Not that they had much to look forward to anyway… For humans, hospitals in selected areas are being strained due to case counts. Let’s hope the fatality counts don’t increase the 7,500 people a day who die in this country every day from various causes anyway.

Employment & transitions

First Continental Mortgage (FCM), an innovative, resourceful, independent mortgage lender, is seeking Senior Underwriters with FHA/VA Credentials and Senior Loan Processors for remote positions with flexible hours for well qualified candidates. “Since 1993, FCM and our affiliate companies, have helped families realize the American dream of owning a home! We specialize in partnering with builders to help home buyers obtain financing for their newly built homes. Senior Underwriters must be service-focused with excellent time-management and multi-tasking skills. Experienced in underwriting FHA, VA, conventional conforming and non-conforming loans. Senior Processors will provide outstanding customer service by effectively communicating / collaborating with all internal / external customers while processing purchase and refinance loans. FCM is a full-service mortgage lender and will fund over $1.5 billion in purchase loans this year through our exclusive home-builder relationships.” Submit resumes to Cecil Pounds, or for a complete description please visit: Sr. Underwriter, or Senior Processor.

Now is the time to join Citi! Whether you are looking for a new place to work, or to take your career to the next level, now is the time to make the move! Citi is strategically positioned for growth and actively filling Operations positions nationwide, including remote positions, and seeking Direct to Consumer Sales professionals for our St. Louis, Dallas, and Detroit markets. Nationwide opportunities in Operations and Support can be found hereSt. Louis Direct to Consumer Sales Mortgage Representative  Dallas Direct to Consumer Sales Mortgage Representative Detroit Direct to Consumer Sales Mortgage RepresentativeDetroit Direct to Consumer Sales ManagerDallas Direct to Consumer Sales Manager.

Sun West Mortgage Company, [NMLS 3277] a leading full-service national mortgage lender, is excited to announce the addition of Peter Schwartz, as its SVP of Business Development and further expands its west coast operations. Over nearly two decades, Peter has successfully on-boarded hundreds of Loan Officers and Branch Managers throughout the country. One of the things that got Peter to move to Sun West was when he heard a Sun West Manager say, “For the first time in my career, I’m un-recruitable!” With a great company like that and a database of great relationships spanning 20 years, Peter will be a great asset to the company’s continued growth. For more information on Sun West, please contact Managing Director, Leif Boyd or SVP, Business Development, Peter Schwartz at 916-770-0053. For Sun West Mortgage Company, Inc. licensing information and disclosures, please click here.

Planet Home Lending LLC, has selected Ben Hughes as EVP and Chief Human Resources Officer (CHRO) to support overall human resources strategy and operations, and attract top talent, increase employee satisfaction, and boost retention.

Lender products & services

What is the simplest way to increase the efficiency of origination teams? American Pacific Mortgage’s Equity Mortgage Group may have discovered it. The division reports that one simple change to branch operations increased production, processing, and productivity four-fold. Instead of hiring more staff or outsourcing processes to handle higher loan volumes, the division found a simple way everyone could eliminate hours of wasted time every day, and empower teams to work more effectively together from anywhere. The solution, a remarkably easy-to-use, yet highly-automated collaborative “lead-to-loan” checklist immediately optimized branch office loan origination processes and produced significant results: “We originated four-times the loans and produced 280% more revenues within our first 30 days of using TeamworkIQ” said Sr. Loan Officer Charlie Christensen. “We are now processing four-times the customer loan files than we did before”. Discover how APM optimized branch operations with simple, yet remarkably smart checklists. Watch video case study (2min).

“As more and more people rush their mortgages and refis, we know you’re feeling overwhelmed from the deluge. Stop leaving valuable loans on the table and get started on Truework. Our dedicated team of highly trained mortgage industry professionals at Truework is committed to tackling and completing your VOE/VOI request (whether manual or automated), so you can close your loans faster than ever. Truework is a US-based company and has partnered with major lenders across the country to conduct 200,000+ verifications and counting. We’re also excited to announce that reverifications are now live: reverify employment for any request within 90 days of the original, receive up-to-date statuses on all verification reports, get fast turnaround times, and see discounted rates, making Truework your one-stop shop for all verifications. And for a limited time, Rob Chrisman readers get 5 free Verifications ($200 value). Let us do the heavy lifting so you can focus on what matters. Interested? Email Zackary Green.

The LoanCraft income calculation service continues to innovate. Transforming the income process into an on-demand service has been well received by busy lenders looking to ease the burden on underwriters. LoanCraft has now taken the service to a new level by offering warranty coverage for all of its reports. This feature goes beyond conventional loans to include Jumbo, FHA, VA, Portfolio, GNMA and USDA loans. This unprecedented coverage protects against defaults and repurchases allowing your team to move forward with a reliable income number that everyone can rely on from the outset, and reporting provides much needed transparency to loan officers, underwriters, and borrowers. The LoanCraft service can be immediately implemented with no set up fees or monthly minimums and requires little training. Just upload PDFs through the secure portal or select LoanCraft in Encompass and they do the rest, usually in less than 4hrs. To learn more about the benefit of having LoanCraft on your team, email Dominic Spadafore or visit loancraft.net to get started.

“The vacation rental space has been a rare bright spot in hospitality and leisure. Need long-term vacation rental financing? Visio Lending is the nation’s leader in Non-QM loans for buy and hold rentals, including vacation rentals. 30-year terms.  Finance through an entity to protect personal assets. No personal income verification or tax documentation. Through our top-notch Broker Program, brokers are able to earn up to 5 points per closed loan. YSP available and Visio Brokers can count on a designated Account Executive and in-house processing.”

Ginnie, FHA, VA, and USDA on the move

More than 2.8 million households secured affordable homeownership and rental housing in the fiscal year that ended September 30, 2020 because of the record $748 billion in Ginnie Mae MBS issued in the year. Ginnie Mae delivered record breaking volume to finance its government guaranteeing and insuring partners: The Federal Housing Administration; U.S. Department of Veterans Affairs, U.S. Department of Agriculture and HUD’s Office of Public and Indian Housing. The previous record was $504 billion in 2017. Visit Ginnie Mae Disclosure for more information on monthly MBS issuance, UPB balance, REMIC monthly issuance and global market analysis.

FHA published Mortgagee Letter (ML) 2020-36, FHA New Construction Requirements. This guidance updates the requirements for New Construction financing for Title II Single Family forward mortgages in alignment with the regulatory amendments announced in the 2018 Final Rules that streamlined inspection and warranty requirements.

FHA published Mortgagee Letter (ML) 2020-35, FHA Catalyst: Single Family Origination Module Automated Underwriting System (AUS). This ML announced the first FHA-specific automated underwriting system, which is now available on the new FHA Catalyst: Single Family Loan Origination Module.

FHA published Mortgagee Letter (ML) 2020-37, Extension of Re-verification of Employment Guidance and Updated Appraisal Scope of Work Option for Federal Housing Administration FHA Single Family Programs Impacted by the Coronavirus Disease of 2019 (COVID-19).

 

FHA issued two temporary partial waivers to its HECM policies that allow mortgagees to be more flexible in submitting HECM Assignment Claims without borrower signatures and in reviewing borrowers for subsequent repayment plans for unpaid property charges, regardless of the total outstanding arrearage. The Waiver of Borrower Signature Requirement for HECM Assignment Claims policy and the Waiver of Maximum Arrearage for Subsequent HECM Property Charge Repayment Plan. These temporary partial waivers are effective through December 31, 2020.

USDA Rural Development (RD) Single Family Housing (SFH) lenders with an active Lender Participation Agreement (Form RD 3555-16 or RD 1980-16) and an active GUS User Agreement can request access to and utilize the new Guaranteed Underwriting System Lender Test Environment (GUS LTE).

PRMG posted Product Update 20-59 regarding Chenoa FHA Edge and FHA Rate Advantage.

Plaza Home Mortgage announced it has removed all file status requirements to lock VA IRRRL and FHA Streamline refinance transactions. And as a reminder, there are still no file status requirements for locks on purchase loans, and pre-locks are allowed.

First State Mortgage posted two new announcements: USDA HOI and Temporary C-19 and Forbearance Eligibility Requirements.

FAMC announced the extension and update of temporary guidance for Appraisal, VVOE – Wage Earner on FHA Products and USDA-RD Product per the SFH Guaranteed Origination announcement and FHA Mortgagee Letter 2020-37.

Mountain West Financial posted important information on CalHFA loans. Effective for all CalHFA loans locked on and after November 2, 2020, the maximum DTI will increase from 43% to 45%; regardless of AUS and/or compensating factors. Loans locked prior to November 2nd will remain the current guideline of 43%. The DTI for manually underwritten loans (allowed with FHA only) remain 43%. Originators, please be sure to check your leads and pipeline for those borrowers previously not qualified for a CalHFA product. For complete program details, please see the CalHFA program in the Affordable Housing Loan Programs (AMP) website.

PennyMac Correspondent Group has posted new announcements: 20-70: Updates to Government LLPAs and 20-69: Adverse Market Refinance Fee Update

First Community Mortgage Wholesale issued Announcement 2020-02 outlining updates to sections of its VA guidelines.

AmeriHome Mortgage updated VA Well Water Testing information as waived for refinance transactions where the home is already encumbered by a VA loan and the test must be completed within the timeline and requirements outlined in Circular 26-20-13 Change 1 for purchase and refinance transactions (not already encumbered by a VA loan).

LoanStream Wholesale offers California HFA Loans.

Caliber Home Loans Correspondent Lending is updating its VA High Balance Fixed and ARM program summaries to clarify the VA guaranty and entitlement requirements. The guidelines are updated to remove the full 25% guarantee entitlement requirement. As a reminder, VA guaranty plus cash down payment/equity must equal at least 25% of the purchase price or Notification of Value (NOV), whichever is less, on all VA loans.

First Community Mortgage Wholesale issued Announcement 2020-02 outlining updates to sections of its VA guidelines.

PRMG posted multiple updates in its Resource Center including: Policies, Procedures and Information, Appraisal Forms, PRMG Appraisal Guidelines, Training/Instructional Material, VA Forms, Jumbo and Second Mortgage Product Forms and Information, Compliance Information, Quality Control Information, Submission Requirements (TRID) (Wholesale), Broker Approval Package and Forms (Wholesale) and Correspondent Approval Package and Forms (Correspondent).

Carrington Mortgage dropped pricing on its VA IRRRLs for borrowers with FICOs 661 and higher.

Capital markets

While the contested election grabs headlines, the FOMC statement yesterday was free of surprises, and the going bet for most likely outcome in Washington is for lean stimulus and no new taxes or major tax changes under a Biden administration. The Fed (unanimously) left rates near zero and made no change to its asset purchases, which was boring, yet welcomed, news for market participants. The Bank likely has little choice on monetary policy as economic activity and employment remain well below their levels at the beginning of the year. Chair Powell said during his press conference that the Committee had discussed ways of tweaking the asset purchase (not QE) program to perhaps buy more longer durations. He also reiterated the need for more fiscal spending, though the predicted lack of stimulus in Washington will likely force the Fed to keep rates near zero for longer and/or potentially boost asset purchases, keeping bonds well-bid and mortgage rates low.

The big economic release yesterday (which preceded today’s payrolls report) was weekly initial jobless claims falling for a third straight week, but less than forecast, and some 7.3 million people remain jobless. The numbers reflect a stalling economic recovery that is predicted to slow into winter due to increased coronavirus infections. Though the labor market’s recovery path contains clear hurdles and a full recovery is a long way off, there have been recent positive indicators, like yesterday’s report that productivity in Q3 (+4.9%) increased more than expectations, reflecting the economy rebounding from pandemic-related shutdowns.

Rounding out the economic news, Freddie Mac’s survey showed 30-year mortgage rates (2.78%) fell to a record low for the 12th time this year. The 15-year (2.32%) and 5/1 hybrid ARM (2.89%) rates were unchanged and up 1 bp, respectively. Per Black Knight, forbearance volumes fell by 137K (-5%) since last Tuesday, driven by October forbearance expiration activity. U.S. Treasuries ended Thursday on a mixed note and the UMBS30 basis closed tighter again amid heavy doses of Fed support. And the Desk of the NY Fed purchased the $7.6 billion maximum on its schedule yesterday, and also reported MBS purchases for the week ending November 4, which totaled $44.4 billion gross and $28.4 billion net.

If anyone cares, given the vote count, today’s economic calendar is already underway with the October payrolls report (nonfarm payroll +638k, the unemployment rate showing a notable drop down to 6.9%, hourly earnings +.1%, workweek 34.8 hours). The calendar rounds out for the week with September wholesale inventories and sales as well as September Consumer Credit. We begin the day with Agency MBS prices down/worse .125 and the 10-year yielding .80 after ending Thursday at 0.78 percent.

Early November is finally here.

I gave seen a lot of hate spewed in recent days about a man who is a constant winner and overachiever, and that’s what the people who support him like about him. Yes, he’s been caught in some lies and maybe twisted the truth a little, but he’s still out there proving his haters wrong time after time. Some people are just jealous of someone who is successful and has money. Throw in a hot foreign underwear model at his side and they hate him even more.

You may not have wanted him in his role, but he’s there now and there’s nothing you can do about it. I know its possibly just going to get worse over the next few days, but like him or not, Tom Brady is turning things around in Tampa.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Do Lenders Care About Forecasts or Predictions?”

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)