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. If you’re going to live and work in the same place, you may-as-well make it nice, and renovations are sweeping the nation. Builders are also going “gangbusters,” and some lenders focus on that segment of the business. And there is innovation, the latest being from InSiteFunding from AxisPointe which replaces the inspection company with advanced mobile technology. So much time in the house… There’s restaurant called The Kitchen. You have to gather all the ingredients and make your own meal. I have no clue how this place is still in business!
“Caliber Home Loans is taking positive action, building diversity, raising our voices and looking forward to a bright future. Our reputation as a great company to work for is illustrated by Caliber’s sponsorship of Employee Resource Groups (ERGs), which provide career networking for professional and personal development. These principles begin at the top with our CEO, Sanjiv Das, and are echoed throughout our leadership and by Caliber team members. Currently, we have ERGs representing military veterans, women in business, the LGBTQ community and the African American and people of color community. Join Caliber, where diversity is celebrated and mutual respect is core to our culture. Visit our website today to view open opportunities. To be immediately considered for Operations or Sales positions, email Jonathan Stanley or Brian Miller respectively.
Thrive Mortgage recently added another group of outstanding talent with the hiring of Drew Kolmeier as Market Leader in San Antonio, TX. Additionally, Lindsey Kneupper joins Thrive as the Sales Manager for the “Sigma Team” along with top-level producers Cindy Kolmeier, Donavin Harkin, Curtis Huizar, Mike Litwin, Michele Lee, Alicia Epperson, and Alejandra Glass. Randell Gillespie stated, “The hiring of such phenomenal talent is only possible through having the most outstanding Operations Teams in the industry and incredibly diverse product offerings. Our growth is only possible through the tireless efforts and leadership across the organization.” Additionally, joining on the Operations side are Jay New, Will Martinez, and Nicky New. Thrive is actively hiring for all Operations positions offering incredible incentives and the opportunity to be a part of revolutionizing the mortgage industry. For more information on available positions, please reach out to Kindra Miller to learn more or visit Thrive Mortgage.
And the Federal Housing Administration’s (FHA) Office of Single Family Housing has openings for Underwriters in its Processing and Underwriting Division.
Many mortgage companies are experiencing unprecedented volume and looking to fill new positions in the coming months. It’s the perfect time to explore options to streamline the onboarding process with AI. Top lenders like AmeriSave, APM, and PRMG are using Capacity to automate employee onboarding. Capacity’s conversational AI-platform learns your policies, procedures, and training materials, and becomes a self-service resource where new employees can ask questions and get immediate answers. Interested in learning how we partner with mortgage clients to reduce costs and drive efficiency? Request a demo to learn more.
Have you ever had to create a spreadsheet to manage your spreadsheets? We have. We grew tired of it and we built Model Match. Healthy recruiting pipelines require constant attention, a concrete sourcing strategy to keep it full, and up to date. By having greater control over your pipeline you’ll gain a newfound ability to stay organized, remain efficient, and on the path to acquiring the right talent, at the right time. Model Match helps forward-thinking lenders elevate their talent acquisition efforts and expand their market share. Position yourself today for tomorrow. Connect with our team to learn how you can find freedom from spreadsheets.
Cure your ECOA – Adverse Action headaches with Connector by Velma®. Learn how Connector reduces risk, rescues at-risk prospects, eliminates hassles, and saves time for your sales and operations teams. Oh, and you will never need to print out and stuff another NOIA letter again!
Company-sponsored training & webinars
Momentifi CEO Gibran Nicholas conducted two on-demand webinars last week: Texting for Dolllars: How to save time and get five times better results by using text messages for sales follow-up or to request documents; and, How to assign yourself and your team a “business mobile number” in order to stay compliant and maintain personal privacy while working remotely. Click here to get free copy of the “Texting for Dollars” recording. The second webinar: Financial StorySelling in an Upside-Down World: How to use story archetypes to gain a competitive advantage during this election season and in the post-COVID world; and, Three possible ways the 2020 Presidential election could impact interest rates, and how to prepare clients and referral partners for different scenarios. Click here to get a free copy of the “Financial StorySelling” recording.
“Although mortgage interest rates have dropped to historic lows, it hasn’t been this difficult for consumers to get a loan in six years, according to the Mortgage Bankers Association. Even as refi activity remains steady, lenders are tightening their credit and down payment standards during the ongoing COVID-19 pandemic. Join us on October 22 at 2 PM ET for our Ask the Expert webinar, as Jennifer Corcoran, SVP of National Operations for Caliber Home Loans, discusses these trends and shares how Caliber is using cutting-edge technology to predict and prevent credit risk in a boom market. States Title CEO Max Simkoff will also chat with Jennifer about her top tips for streamlining the mortgage process.”
If you’re searching for insight on how servicers can protect their portfolios and prepare for the future, view the recording of “Servicing in the Post-COVID Era,” a short, but sweet, webcast from Computershare Loan Services (CLS). This 30-minute interview features two of CLS’ thought leaders: Jeff Johnson, Chief Operating Officer, and Dave Vida, EVP of Enterprise Sales. Then catch Toby Wells, CLS’ President of Servicing & Capital Markets, at NPLs, Notes & Default Servicing Virtual Forum on October 13th. He and fellow experts will lead a session entitled, “Best in Class Default Servicing” where Toby will highlight what servicing loans in forbearance looks like in the current environment, new strategies for managing the foreclosure process, best practices in property maintenance, and more! Computershare Loan Services gives clients the advantage. Learn how at ComputershareLoanServices.com.
Join National Mortgage Professional for DealDesk Focus on ACC’s Non-QM Suite on Wednesday, October 14 at 1 pm ET / 10 am PT. ACC Mortgage, the nation’s oldest Non-QM lender, for a special DealDesk webinar focused on ACC’s extensive offering of Non-QM products that include Bank Statement loans, Investment Properties, P&L Only, ITIN and Jumbo products! When rates increase, more loan officers will be chasing fewer deals, so you need to ensure you have additional tools to compete. Join Robert Senko, President of ACC Mortgage as he helps you understand and navigate through Bank Statement and P&L Lending, high volume of investment deals, closing in under 21 days, Introduction to ITIN Lending and Jumbo and Interest Only products. BONUS: All attendees will receive 1/4 point off their next deal! Sign up for the webinar here.
FHA, VA, HUD, and Ginnie continue to evolve
Ginnie Mae issued guidance on loans after deferment loss mitigation through APM 20-13, reminding Issuers that a deferment, exercised as a loss mitigation option or as part of an informal workout agreement, may impact pooling eligibility under existing MBS program requirements.
Meanwhile capital markets personnel are setting up securities clearing accounts for the Ginnie Mae pools before Ginnie Mae comes knocking on your door. There is no reason to have credit exposure to your broker dealers. It’s a pretty simple risk to clean up and the efficiency of settlement will help your best execution. This will more than pay for the fees on the account.
Ginnie Mae also added “MPM 20-03: Adoption of ARRC LIBOR Fallback Recommendations for LIBOR Classes of Ginnie Mae Multiclass Securities Issued Before March 2020″. Ginnie Mae adopted recommendations of the Alternative Rates Reference Committee (ARRC) for fallback language for LIBOR floating rate securities issued in March 2020 or later (the “ARRC Recommendations”.
Ginnie Mae announced that, in coordination with the General Services Administration, a 10-year, $140 million Cloud Services contract was awarded to team Deloitte (Prime), who partnered with AWS, JHC Technology and Bank NY Mellon. “The new contract will provide an improved path to meeting Ginnie Mae’s requirements, enabling consolidation of legacy platforms, improving availability, and providing more reliable, efficient, and higher quality services using cloud native solutions. This contract also provides a more modernized and centrally managed infrastructure platform integrated with leading edge cloud services, enhanced security, DevSecOps, monitoring, and service delivery across the entire Ginnie Mae application portfolio.”
HUD Announces Incorporation of Defect Taxonomy into Handbook 4000.1 through the release of HUD Mortgagee Letter 2020-31 announcing the incorporation of the FHA Defect Taxonomy as Appendix 7.0 to the Single Family Housing Policy Handbook 4000.1, effective immediately. The defect taxonomy is FHA’s method of identifying and categorizing loan-level defects. The use of the defect taxonomy, particularly codified in the FHA Handbook, should provide for more consistent review outcomes and give lenders a better understanding of the remedies associated with various loan defects. These improvements, in turn, will give lenders greater certainty about the expectations and risks associated with their participation in the FHA program.
Recall that the Federal Housing Administration (FHA) published a temporary policy waiver to its Single Family Housing Policy Handbook 4000.1 requirements that suspends the standard inspection requirement for “interior” photographs of property in designated Presidentially-Declared Major Disaster Areas (PDMDAs). This waiver of requirements for interior photographs in PDMDAs is now consistent with the temporary inspection guidance allowing for exterior-only or desktop-only inspections due to the COVID-19 National Emergency currently in place. One can view Mortgagee Letter 2020-05 and access the online or PDF versions of the Single Family Housing Policy Handbook 4000.1.
FHA announced its new online submission method for Reacquisition Claims. Mortgagee Letter 2020-32 (ML 2020-32) announces a new submission method for reacquisition claims in the FHA Title II Single Family forward mortgage program.
If you’re a VA lender, this resource offers VA loan information, such as eligibility, document requirements, and how to apply, as well as available grants and a state-by-state list of Veteran housing benefits.
FHA Underwriting Guidelines for Borrowers with Previous Mortgage Payment Forbearance is addressed in Mortgagee Letter (ML) 2020-30.
FHA published ML 2020-29, announcing additional functionality and updated requirements for the electronic submission of case binders selected for post-endorsement review using the FHA Catalyst: Case Binder Module. Effective September 14, mortgagees not approved for electronic Case Binder (eCB) submission through FHA Connection (FHAC) are required to use the Case Binder module to submit single family forward and Home Equity Conversion Mortgage case binders that FHA requests for review in the Loan Review System. Mortgagees approved for eCB submission must continue to submit case binders through FHA Connection.
FHA issued ML 2020-27 re-extending the foreclosure and eviction moratorium for borrowers with FHA-insured Single-Family mortgages covered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act for an additional period through December 31, 2020. ML 2020-27’s Single Family foreclosure and eviction moratorium extension applies to all FHA Title II Single Family forward and Home Equity Conversion Mortgage (reverse) mortgage programs except for FHA-insured mortgages secured by vacant or abandoned properties.
FHA published Mortgagee Letter (ML) 2020-32, FHA Catalyst: Claims Module – Expanded Functionality for Reacquisition Claims. This ML announces additional functionality within
FHA Catalyst, enabling mortgagees to electronically submit reacquisition claims for FHA benefits. Implementing this new feature is part of FHA’s ongoing efforts to provide digital solutions, improve efficiency, and standardize processes for stakeholders through the FHA Catalyst platform.
The FHA published Mortgagee Letter (ML) 2020-30, FHA Underwriting Guidelines for Borrowers with Previous Mortgage Payment Forbearance. The ML informs mortgagees of underwriting guidelines for homeowners who were granted a mortgage forbearance due to the COVID-19 National Emergency. Additionally, this ML defines the requirements that borrowers must meet to request a new FHA-insured mortgage after successfully completing their mortgage payment forbearance period. Borrowers granted mortgage payment forbearance may be eligible for a new FHA-insured mortgage provided they continued to make regularly scheduled mortgage payments and the forbearance is terminated, or completed forbearance and made at least 12 consecutive monthly mortgage payments after forbearance or cash-out refinances; or completed forbearance and made at least three consecutive monthly mortgage payments after forbearance for purchase mortgages and no cash-out refinances, or completed forbearance and made less than three consecutive monthly mortgage payments after forbearance for credit qualifying streamline refinances. (Additionally, if a borrower entered into a modification agreement on an FHA mortgage, they must have made six payments under the modification to be eligible for a streamline refinance.)
There wasn’t much in the way of economic data released last week and what little there was primarily reflected activity from August. Much of the focus over the last week was on the ongoing conversations over another potential round of economic stimulus. Whether or not another round of stimulus is passed, the effects (good or bad) likely wouldn’t be felt until the first quarter of 2021 as the current quarter will get a boost from the gradual re-openings of the larger economies of California, New York, New Jersey, Pennsylvania, and North Carolina which kept higher restrictions far longer than many other parts of the country. The Fed remains steadfast in its opinion that more stimuli is needed to protect against further downside risks to the economy and that another wave of infections would be disastrous. Despite the back-and-forth surrounding negotiations for another stimulus package, the market firmly believes one will be passed and should the Democrats take control of Congress it would likely be larger and provide more of a boost. Combined with a Fed that will keep interest rates low and allow inflation to run higher than they would otherwise, this would seem to provide ample tailwinds to an already hot housing market.
Looking at the bond market & interest rates Friday, the UMBS30 basis closed wider and Treasuries pulled back slightly to close last week (the 10-year was +8 bps for the week). Stimulus agreement, or lack thereof, in Washington dominated headlines as it did earlier in the week. President Trump said he would like to see even more spending than what has been proposed by either side. There was little in terms of economic data (Wholesale Inventories increased 0.4% in August when it was expected to increase 1.0%) or Fedspeak. The Desk purchased $3.8 billion with 76.6 percent in UMBS30s and 23.4 percent in 15s. This week, the Desk will purchase up to a $11.1 billion, or $5.5 billion per day, over Tuesday and Wednesday before releasing a new schedule and reinvestment estimate for the four-week period beginning Thursday.
With the Bond market closed Monday for Columbus Day, there are no economic releases. Things pick back up Tuesday with the September NFIB Small Business Optimism Index, and September CPI. The midweek session brings September PPI, and September Fed Beige Book, while Thursday sees jobless claims and September Import/Export Prices. The week closes with September Retail Sales, September Industrial Production and Capacity Utilization, August Business Inventories, October NAHB Housing Market Index, and preliminary University of Michigan Consumer Sentiment Survey. With no hedging or U.S. bond markets, any rate sheets being produced tend to be conservative despite the low volatility environment.
I always wanted to lay naked on a bearskin rug in front of a fireplace. Evidently, Cracker Barrel has a policy against this.
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