Daily Mortgage News & Commentary

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 supply chain and labor issues, impacting everything from phones to houses, are currently impacting books, and more specifically the paper with which they’re made. Owners and managers of “paperless offices” look like fiscal geniuses. Lenders and vendors have to be aware of a myriad of topics besides paper supplies. For example, sure the U.S. residential mortgage market dwarfs the U.K.’s, but it is good to be aware of its “buy-to-let” rates for landlords with LTVs of less than 65 percent are below 1 percent! And in this country, lock volume is sagging and wholesalers have cut their margins to the bone. Black Knight’s September 2021 Originations Market Monitor report, gleaned from rate lock data from Black Knight’s Optimal Blue PPE, showed overall lock volume down 10 percent from August. Rate/term refi volume was down 18.7% from August and is currently ~60% off last September’s level. Winter is coming. (Robbie Chrisman’s daily podcast, found here, will return tomorrow after today’s federal holiday.)

Jobs & new hires

PacRes Mortgage, formerly Pacific Residential Mortgage, is excited to announce the hiring of Pam Davis as our new Regional Operations Manager for the Southwest Region. “As we continue our rapid expansion across the U.S., we’re extremely fortunate to have someone of Pam’s talent, experience, and track record of success to guide our operations in the Southwest. Pam brings over 30 years of experience to PacRes, recently managing over $180M in monthly closings. If you would like to see what’s drawing talented people like Pam Davis to ‘the’ National Boutique lender, PacRes, reach out to Eric Wiley, CXO at 503-905-4902.”

On Q Financial, Inc., a five-star mortgage lending solutions provider, has appointed Jason Winkler as SVP, Business Development. Winkler will drive strategy for business development, sales enablement, and growth for On Q Financial. Prior to joining On Q, Winkler served as Senior Director of Business Development for Wipfli LLP, where he grew his division’s top-line revenue 6x. Winkler is a top-producing originator and expert growth strategist. “We’re excited for Jason’s people-first approach, as well as his unique combination of retail mortgage lending and technology consulting expertise, both critical for creating an exceptional loan originator experience,” said Juan Rodas, EVP of On Q Financial. To learn more about On Q Financial’s career opportunities for originators, please click here.

Lender and broker products & services

Seize the opportunity to keep your customers happy! Borrowers, especially those who have been in active forbearance, have reported greater satisfaction with their mortgage servicing experiences under COVID-19. As illustrated in this year’s J.D. Power U.S. Primary Mortgage Servicer Satisfaction Study, increased overall customer satisfaction scores equates to opportunity. Are you positioned to take advantage of happy customer sentiment? Our latest blog highlights the study’s findings AND queues you to leverage this positive pandemic impact. You can deliver the on-demand, 24/7 self-serve access that your borrowers crave. Let CLARIFIRE® show you how to empower your borrowers and power your organization through automation. Transform your methodology and results with a single, straight-through, no-touch automated approach that enables workflows across your organization. Experience the modern, automated servicing workout application, CLARIFIRE®, truly BRIGHTER AUTOMATION®, at eClarifire.com.

Tech Providers! Attending MBA Annual in San Diego? Connect with the ReverseVision team to learn how its API Integrations could help you expand your offerings and receive a new wave of requests from your lenders. 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. Be their go-to provider! It is easy to start: learn how to partner with ReverseVision today.

Looking for an exceptional VA/FHA purchase or refi experience with a winning price? As the #1 VA and FHA Lender*, the Freedom Mortgage Wholesale Division is proud to offer 2 business day Underwriting on ALL VA and FHA transactions, and a (.250) LLPA Incentive for all VA Purchases. Plus, offer more buying power for eligible VA borrowers** with no maximum loan amount and no down payment! Additionally, the previous 3.50 LLPA for VA Cash-Out transactions has been reduced to 2.00 (a 1.50 improvement!) To learn more, check out our rate sheet or email AskFreedom@FreedomWholesale.com to have an Account Executive contact you. *Inside Mortgage Finance, Jan-Jun 2021 **For eligible veterans, service members, and survivors with full entitlement who are borrowing over $144,000 on a purchase or cash-out refinance, there is no down payment requirement. Maximum loan amount for such loans is subject to credit approval. For IRRRLs, VA will continue to guaranty 25% of the loan amount without regard to the Veteran’s available entitlement and/or county loan limits.

Are your loan officers calling on the past borrowers who are most likely to need a new loan and the agents who are most likely to have a referral? They would be… If they are using the right CRM. An indispensable tool for professional salespeople, a good CRM will support them in their sales efforts, but the Usherpa SmartCRM™ goes well beyond that with SmartScore™ technology. The result is our new UsherpAlert™ purchase notifications that have a 297% higher likelihood to close! Knowing which borrowers may be ready to move allows the LO to add value to their real estate agent partners, strengthening the relationship and winning them more business. Best of all, this power has been built into a game-changing new app that allows LOs to do business anytime and anywhere they happen to be. Schedule your personalized demo today and empower your LOs to get more business with less effort in 2022.

MLOs: What is one of the easiest but most effective ways to grow your loan volume? It’s the Unify Hot Prospect Alerts feature. Hot Prospect Alerts utilize automated 24/7 scanning capabilities that include Mortgage Inquiry Alerts (MIA) notifying you when any of your contacts have their credit pulled by a competitor. Likely Home Buyer (LH) and First Time Buyer (FT) alerts ensure you don’t miss opportunities in your database. Early Payoff (EPO) alerts occur less than 6 months of closing a loan with you and help avoid a charge back. For all these Hot Prospect Alerts, Unify notifies you right away, sends a specially created email sequence to the contact, and prompts you to call them to secure their loan. Click here to see how Unify can help your drive your 2022 business success!

Next week at MBA Annual ClosingCorp is bringing back the dog park! Stop by booth 621 in the HUB on Monday and Tuesday to take a break from the conference and play with a pup, inquire about adopting and learn more about ClosingCorp! During the event, ClosingCorp will accept monetary donations in addition to pet supplies that will be donated to the San Diego Humane Society. To donate, visit ClosingCorp’s community outreach page & to view all adoptable pets, visit the San Diego Humane society’s website. See you in San Diego!

“Borrower Surety in a single day.” “1 UW Touch on 70% of loans!” It’s all about the ROI. Only Candor’s Loan Engineering System: 1) Conducts initial underwrite at POS, 2) Issues complete conditions, including AUS and Reps/Warrants, 3) Clears 38% of conditions, 4) OCRs Documents, 5) Calculates & delivers final decision on income (W2 and Self Employed), and 6) Backs decisions with a defect policy. Calculate your ROI here.

Sponsored training & events

New Clear to Close podcast episode: Reinventing the Secondary Market for Local Lenders featuring Maxwell VP Sadie Gurley. Now more than ever, capital markets represent a vital area for local lenders to pursue better accuracy, rates, and margins. In this special episode, Sadie Gurley channels her 25+ years of experience to offer valuable advice to local lenders hoping to compete against large industry players. Tune in to learn how to streamline processes, decrease trading time, and create a better secondary market experience for lending teams and borrowers. Listen to the Clear to Close podcast’s new episode on Apple Podcasts, Spotify, Google Podcasts, or your browser.

Home Refinancing – What You Need to Know to Help Close the Wealth Gap Event ZOOM EVENT! Thursday, October 14th, 3PM Pacific/6PM Eastern, New American Funding & Freddie Mac have teamed up to discuss misconceptions regarding refinancing. We will also explore vital ways to help eligible borrowers take full advantage of this opportunity to lower their monthly mortgage payments and better position themselves financially. Moderated Charles Lowery, Director of Legislative Affair & Policy, New American Funding, and joined by Carl Windham, Accredited Financial Counselor and Financial Fitness Coach, and Maheen Qureshi, Single Family Affordable Lending Manager, Housing Outreach at Freddie Mac. We invite all industry professionals and current homeowners to join us and take advantage of this opportunity to learn about refinancing. Register today!

Join National Mortgage Professional Magazine for “Deal Desk: Focus on the Angel Oak Mortgage Solutions Bank Statement Product” on Wednesday, October 13, at 1 pm ET / 10 am PT. We’ll discuss self-employed borrowers, including 1099 earners, and how they can get a mortgage loan easily and quickly using our Bank Statement mortgage product that does not require tax returns. Join Eric Olson, Account Executive at Angel Oak Mortgage Solutions, as he helps you understand the process for bank statement loans, touching on credit scores starting at 600, up to 90% LTV, No MI, how borrowers do not have own 100% of the business, owner-occupied, second homes, non-owner occupied and how to get borrowers to tell their network of self-employed friends/clients to seek you out. Register and submit your questions or scenarios for “Deal Desk: Focus on the Angel Oak Mortgage Solutions Bank Statement Product” webinar here.

There’s the California Mortgage Expo: San Francisco / Oakland on Tuesday, October 12 at the Hilton Oakland Airport. Register now for free when you use code OCNFREE. Includes Free optional NMLS Class.

Anyone who sells or manages people who sell will benefit by joining XINNIX on Wednesday, October 13 at 12 PM ET. Register for XINNIX’s ENERGY™ Webinar: What It Takes To Be Successful In Selling.

MMLA’s Virtual Annual “Hot Topics” Compliance Webinar on October 13 and 14 will address Advertising under TILA and RESPA.

Todd Duncan’s Sales Mastery three-day event, October 13–15 is fully virtual and 100% free for all attendees. Learn the mindset, strategies, and easy-to-follow steps to help you make more money in a very short amount of time.

Strengthen Your Portfolio with USDA’s Free, Live, Virtual Appraisal and Property Training on Thursday, October 14th: Appraisal requirements and common errors, property and site requirements, frequently asked questions, and a forum for Q&A.

This Friday, October 15, join The Mortgage Collaborative’s Rundown with Rich Swerbinsky, the COO of The Mortgage Collaborative, and me as we discuss current events in the mortgage market for 45 minutes on Friday at 3PM ET in “The Rundown with Rich and Rob.”

In San Diego, on October 16th, is a full day event (the mPowering You Summit) you can join the conversation and be part the mPower movement.

Of course, from October 17-20 is the MBA’s annual Convention and Expo in San Diego! 3,000 have registered.

Supply chain primer

Higher inflation often leads to higher rates, so lenders and LOs should be aware of what is causing all these headlines. Have you tried to rent a car, buy a faucet or chicken wings or salad dressing lately? Dealt with long lines, high prices, few choices, and vague references to “supply-chain” issues? New cars, used cars, and rental cars are expected to be short supply well into 2022, probably longer the way things seem to be underestimated. Remote work and schooling have increased the demand for tech products. The Consumer Price Index has moved from +2.5 percent to +5 percent lately.

COVID-19 led to less travel, therefore less demand for rental cars, rental car companies sold off chunks of their fleets. Trying to replenish fleets for Avis, Budget, Hertz, and others hasn’t worked due to the lack of cars. And, besides Hurricane Ida destroying a quarter of a million cars, the lack of cars has been caused by the lack of semiconductors, which has been caused by COVID-related plant closures in Asia. Millions of cars have not been built due to a lack of chips. And that impacts Gross Domestic Product.

Then there’s labor shortages. Scores of ships are stacked up near ports because the labor can’t be found to unload them, or enough truck drivers to transport the goods once they’re unloaded. Shipping rates have gone up in an attempt to attract truck drivers. Workers who were laid off in the early days of the pandemic because of various closures haven’t gone back to work despite businesses opening. Reasons include fear of infection, inter-company politics and policies, mask requirements, or lack thereof, Some workers are reassessing their jobs, and hundreds of thousands have died. Day care for children is hard to come by, pushing some parents to continue to stay home.

The government hasn’t been entirely innocent. There is some conjecture and finger pointing about continuing unemployment benefits being unmotivating for some to return to work. What is the impact of the federal minimum wage being $7.25 versus Amazon’s $18? Immigration policies have shifted in the last four years, and a certain pool of workers is not available.

So up goes inflation, which pushes rates higher. Talk of “stagflation” has edged into press reports. Meanwhile, lenders are dealing with refi burnout, seasonal factors, higher rates, and compressed volumes and profit margins. Fun times!

Capital markets

The yield on the 10-year, which many view as a proxy for interest rates in general, moved above 1.60 percent Friday. And with it, MBS prices also worsened, and with that came plenty of lenders changing their rate sheets.

Last week’s economic data was capped off with economists’ significant miss in estimating September’s nonfarm payrolls. Employers added 194,000 jobs compared to expectations of nearly 500,000, however the unemployment rate fell from 5.19 percent to 4.76 percent; the lowest since March 2020. While September’s monthly gain would be considered decent in normal times, employment is still nearly 5 million below its peak in February 2020. With the recent spike in COVID subsiding and enhanced unemployment benefits and housing protections ended, another weak payrolls number in October could force economists to re-evaluate their theories as to why employment is not growing more substantially. The total number of people receiving some form of unemployment benefit fell by nearly 855,000 for the week ending September 18 to 4,172,943 due in large part to the cessation of enhanced benefits after Labor Day.

The Fed has been monitoring the employment situation closely and while last week’s numbers may have missed the mark, it is still widely expected the Fed will begin to taper MBS purchases in November. Mortgage rates have begun to slowly tick up with the average rate for a 30-year fixed mortgage at 3.14 percent.

Although stocks are trading today, the bond markets are closed, as is the Federal Reserve. Mortgage rates aren’t determined by stock prices, so any company setting rates will use a combination of a) Friday’s closing MBS levels, b) where U.S. 10-year rates are in Asian or European markets this morning (yields are higher), and c) a dose of margin cushion.

Part 1 of 5 of “The Best of Capital Markets Exec Marcus Lam.”

The location of your mailbox marks how far you can walk from your house in a robe before you look like a mental patient.

All that time they spent teaching us cursive, they should have spent teaching sign language instead.

The illustrator of “Where’s Waldo” could have wasted millions of hours of people’s lives if he just left Waldo out of one of the books.

Any sized bag of chips is “snack sized” if you believe in yourself.

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, “Grow Your Business But Don’t Step Over a Dollar to Save a Dime.” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ

(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 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.)