Oct. 10: Wholesale CRM, automation, eMortgage, loss mit products; Freddie and Fannie changes; new Fannie CEO

This morning I am heading in an Uber with the driver and his dog Sophie (“she don’t bite… much”) from Evansville, IN to Louisville, KY due to a cancelled flight. But enough about my glam life, and let’s talk comp, and not the comp of the fellow driving this 2015 Hyundai. Plenty of folks in the Agency make a lot of money but “Total annual direct compensation for Fannie Mae’s Chief Executive Officer is limited by statute to base salary at an annual rate of $600,000 while the company is in conservatorship or receivership.” Many view it as a thankless job, what with Congress, the public, lenders, and investors worldwide looking over your shoulder every day. (For those of you tracking Agency pay, here’s a story on how the Agencies deal with the pay cap.) I bring this up because Fannie Mae named Priscilla Almodovar, a former managing director at JPMorgan Chase & Co, as its chief executive officer effective Dec. 5. Almodovar will replace interim CEO David Benson, who took over the top job in May after former chief Hugh Frater retired. (Plenty of Agency news below.) In other government-lending news, Julia Gordon, Asst Secretary for Housing and Federal Housing Commissioner of the US Dept of HUD, will be answering questions this Friday on the Rich & Rob Rundown on Oct 14th. (Today’s podcast is available here and this week’s is sponsored by SimpleNexus, the homeownership platform that unites the people, systems and stages of the mortgage process into one seamless, end-to-end solution that spans engagement, origination, closing and business intelligence. To learn more about SimpleNexus, an nCino company, visit simplenexus.com.)

Lender & broker products, services, and software

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Much like the finalists of the 2022 USA Mullet Championships (cast your vote before polls close tomorrow)SimpleNexus, an nCino company, is taking “business in the front and party in the back” to a new level. The digital homeownership platform helps community banks put their business front-and-center with a branded mobile application that unifies all parties in the mortgage transaction, giving borrowers a seamless journey from loan inquiry to housewarming party. As Arbor Bank’s Jamie Lasher attests, “We chose SimpleNexus to deliver a ‘WOW’ experience to our borrowers from application all the way through an eClosing.” Ready to capitalize on the future of mortgage, but need to ‘mullet over’ before taking the next step? See how SimpleNexus’ mobile-first technology helps community banks compete in a shifting market this Wednesday, October 12, at 2 PM CT.

Our team is heading to MBA Annual in 2 weeks! If you’ll be in Nashville October 23-26, we’d love to introduce ourselves and show you how Capacity can relieve your team of time-consuming tasks. See how top leaders like Jodi Hall (NMB) and Kevin Peranio (PRMG) use platforms like Capacity to bring AI to their teams, increasing productivity. The mortgage industry is in dire need of a platform that securely integrates with lenders’ key systems, providing loan officers and brokers with instant, actionable answers about borrower opportunities, loan statuses, loss mitigation, and more. Capacity reduces the time that LOs and brokers spend logging into a sea of endless systems to find information. If this sounds familiar, see how Capacity can save your team time and frustration. See how it works.

Open Banking is here, and its impact on the financial services world is undeniable, but what does it mean for lenders? Open Banking for mortgage lenders means a streamlined origination process, increasing borrower satisfaction, and better loan offers by enabling multiple automated underwriting systems and vendor options, increasing pull through in an increasingly competitive environment. Lenders that can offer these benefits to borrowers will perform well, even in today’s market. Modern loan origination systems have been architected specifically to enable Open Banking, with robust API ecosystems that make it easy for lenders to start strategically and build up to their ideal workflows. Mortgage Director from Fiserv is a perfect example. Now is the perfect time to begin building those processes and reap the rewards. Email to learn more or to schedule a meeting at the MBA Annual in Nashville.

Experience NOVA, the future of loan origination! Constellation Mortgage Solutions is excited to announce our new cloud-based, dynamic LOS platform. CMS is a sponsor of the MBA Annual Conference in Nashville and will be hosting “4” live demos during the conference. Request an invitation to a live demo event, seats are limited! What’s so special about NOVA? NOVA is a built by people and a company with 25 years of mortgage tech experience. NOVA is backed by CMS, trusted, tested, stable, secure, and fully integrated with best-in-class mortgage fintech partners. We are also the only LOS to originate all loan types, including reverse. Not attending MBA Annual? We’re happy to set up a private demo for you. Request an invitation to a demo event or a private virtual meeting.”

Looking for an excuse to grab a second (or third) cup of coffee? Settle in for 30 minutes of caffeine-fueled compliance updates with ActiveComply’s recent episode of Compliance & Coffee with Joshua Weinberg of Firstline Compliance, LLC, and Melissa Thomas. Love it or hate it, social media is a critically important tool that lenders and servicers use to attract new customers, promote brand awareness, and stay on the cutting edge of contemporary marketing strategies. But how does one safely navigate federal and state mortgage advertising regulations while staying up to date with social media marketing trends? Explore ActiveComply’s wealth of compliance resources and learn more about how their no-headache compliance solutions helps mortgage lenders, IMBs, credit unions, and wealth management firms manage their compliance with confidence. Request a FREE demo for your company today!

According to Black Knight, foreclosure starts were up 15% in August. And though the industry continues to see historically low default numbers, if we’ve learned anything over the last year, it’s that when things hit bottom, there’s often no place to go but up. So, are your servicing operations ready with compliant loss mitigation procedures? If you need to update your P&Ps or need a third-party review to ensure your loss mitigation strategies are in regulatory compliance, Consolidated Analytics can help. Our servicing QC teams are experts in compliance reviews and ensuring your P&Ps are up to date. Contact us to see how our team can help prepare you for whatever the market brings.

Peanut butter and chocolate. Burgers and fries. Pumpkin and spice. Some combinations are just better, like eSign and eVault. Unleash your digital lending potential with the tools you need to thrive in an evolving mortgage landscape, backed by decades of trusted compliance solutions. Wolters Kluwer’s idsDoc and ClosingCenter provide a fully integrated eMortgage solution. To build your perfect combo of lending technology, drop by booth 811 at MBA Annual for more information. Or, arrange a meeting with an expert and attend one of our group demos at the show!

How well is your production mix performing compared to your peers? If you are not sure, Richey May’s Peer View Ops can help you understand your production mix compared to your peers in real-time. In addition to FICO, LTV, and DTI comparisons, we show your average pricing compared to your peer groups by type, purpose, and occupancy mix. You will have the ability to filter any metric by any of these loan characteristics to make sure you understand how you’re performing compared to your peers in every cross section of performance. Contact us to schedule a demo to get a look at the reporting features and see how this tool helps drive your business.

Handle volatility like a pro. Moder is the outsourcing partner you’re looking for to help you manage growth in the toughest market in decades. Moder can automate almost anything, and has a passion for making your processes better, faster and cheaper. The Moder team will be attending MBA’s Annual Convention in Nashville and welcome the opportunity to show you how we’re blending our industry experience with people & technology to help our clients manage their P&Ls with confidence. Contact the Moder team today to schedule some time together in Nashville and you can learn more about Moder.

OptifiNow TPO is a brand-new CRM solution designed exclusively for wholesale lenders. Until now, wholesale lenders have had to rely on CRM platforms that they either customize themselves (at an enormous cost) or attempt to squeeze their account executives into a retail loan officer CRM (which never works). OptifiNow TPO is the only CRM that knows exactly how account executives manage their broker accounts and gives them innovative tools to be faster, smarter, and more effective at generating loan submissions. OptifiNow TPO is an all-in-one platform that features built-in email and SMS, LOS integrations, rate sheet distribution and a dynamic account classification process that tells account executives which brokers they need to call. Stop struggling with CRM systems that account executives avoid and start using one they can’t live without. Schedule a demo and let OptifiNow TPO deliver a CRM that actually works for wholesale lenders.

Freddie and Fannie: never leaving things alone

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FHFA Released Annual Report on Low-Income Housing and Community Development Activities of the Federal Home Loan Banks
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Freddie Mac’s Single-Family Seller/Servicer Guide Bulletin 2022-20 announced a new enhancement to Condo Project Advisor. Effective October 24, 2022, Condo Project Advisor will allow you to submit Project Assessment Requests (PARs) that will provide findings telling you whether a condo project meets the requirements assessed by Condo Project Advisor and whether the tool has identified issues. If issues are found, feedback messages alert you where to focus your review.

Federal Housing Finance Agency Office of Inspector General released two items on Thursday, October 6th. A memorandum report to FHFA detailing the agency’s management and performance challenges for the coming year and the annual plan for FY 2023 describing general oversight priorities.

Freddie Mac Guide Bulletin 2022-20 announced an enhancement to Condo Project Advisor effective October 24, 2022, Condo Project Advisor® Project Assessment Request. The Bulletin includes additional Guide updates on the number of document custodians Seller/Servicers are permitted to contract with and announces the updated Document Custody Procedures Handbook.

Freddie Mac expanded community land trust (CLT) mortgage loan delivery options to provide more flexibility, deliver CLT mortgages through Guarantor or Fixed-Rate Cash execution. Follow the guidance below to develop the Guarantor contracts interface between your system and Loan Selling Advisor® and start delivering CLT mortgages through Guarantor execution. Visit the CLT mortgage web page to learn more about Freddie Mac community land trust mortgages.

Fannie Mae’s October Selling Guide updates SEL-2022-09 includes changes related to retention of asset verification reports, Social Security income documentation, use of average median credit score for manually underwritten loans, and miscellaneous updates.

Fannie Mae published the Desktop Underwriter® (DU®) Specification version 1.8.3, supporting documents, and URLA FAQ updates on Sept. 28. This specification update includes data changes to support the Supplemental Consumer Information Form (SCIF) requirement for new conventional loans sold to Fannie Mae and Freddie Mac with application dates on or after March 1, 2023, and changes to other data elements. Desktop Originator® (DO®)/DU will be updated the weekend of Oct. 15 to support these changes via direct integration and the user interface. View Fannie Mae’s Integration Impact Memo for additional information.

Effective Oct. 31, the Expense Reimbursement Dashboard (ERD) will be retired from Fannie Mae Connect™ due to low usage. Reporting capabilities are available within Property 360™. For additional reporting needs, submit a request through the Inquiry Response Tool (IRT). Access the Inquiry Response Tool, Review the Servicer Expense Reimbursement job aid, Visit the Servicer Expense Reimbursement page.

Capital markets

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The bond markets are closed today for the holiday, so be wary of rates and prices as there is no real-time way to hedge locks so pricing tends to be conservative.

Last week closed with investor fear of large Fed rate hikes due to a mostly better-than-expected Employment Situation report for September. The headline employment increase for September was in the middle of economists’ estimates, so it may have been higher or lower depending on to which it was compared. Regardless, September’s gain of 263,000 jobs is well below 2022’s average monthly gain of 419,778. The unemployment rate moved back toward its 50-year low at 3.49 percent. Other employment indicators showed signs of slowing as job openings fell 1.1 million to 10.053 million in August.

Keep in mind that a cooler job market with slower wage growth (and therefore less inflation pressure) is one of the preferred outcomes of the Fed’s aggressive monetary policy. Meanwhile, construction spending fell a greater-than-expected 0.7 percent in August and new home construction was down 2.9 percent. Construction is one of the sectors most sensitive to interest rates and is likely to be challenged for the foreseeable future.

 

Inflation continues to drive expectations of future rates and this week’s inflation reports will be closely watched by the markets and the Fed. The Fed Funds futures still see a 75-basis point hike in November, and another 50 in December. This week’s economic calendar will be headlined by the Consumer Price Index on Wednesday while Friday is packed with retail sales, import prices, business inventories and preliminary October Michigan sentiment. When the bond markets reopen tomorrow, we will receive the September NFIB Small Business Optimism Index, and $40 billion 3-year Treasury note auction results.

Definitions (Part 1 of 5)

ARCHITECT: Defines someone who was neither macho enough to become an engineer nor gay enough to become a designer.

BANKER: Someone who lends you his umbrella when the sun is shining and takes it back when it starts to rain

CONSULTANT: Someone who uses your watch, tells you the time, and then charges you for it.

PESSIMIST: Optimist with experience

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, “Mergers and Acquisitions Continue On.” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2022 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

 

Rob Chrisman