Daily Mortgage News & Commentary

Oct. 4: Cap. mkts staff available, MLO jobs; automation, MSR valuation tools; STRATMOR comp data & survey; upcoming events

Now we have a butter shortage raising prices ahead of the holidays. Great. While margarine makers are licking their chops over the news, vegans and other readers should know that no animals are ever harmed in the making of this commentary! But speaking of harm, in the current environment, and probably for the next couple quarters, vendors and lenders working 30 percent harder to make 40 percent less. Or worse. If the Fed’s actions can push asset prices higher, it’s actions can also push asset prices lower, right? Indeed, many will argue that is what we’re seeing now, and despite the Fed making its future actions clear, I am reminded of the old saying, “Don’t fight the Fed.” So be cautious when seeing any rate move down. (More below in the capital markets section.) Many in our industry are using this lull in business activity to attend conferences (last week’s Mortgage Collaborative conference had over 400 registered; this week’s MBAC event in the Carolinas is packed with over 175 registered) or hone their mortgage knowledge. (There are plenty of events and training listed below.) Today’s podcast is available here and this week’s podcast is Sponsored by Candor Technology, Home of the One Touch Underwrite, supporting lenders from Point of Sale to Post Close QC, to reduce repurchase risk, increase underwriter productivity by 400% and decrease turn-times by 10 days.

Employment

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Once in capital markets, always in capital markets. Secondary marketing and capital markets skills are unique, and good ones are hard to find. If you have a need for someone in CM or secondary, or lock desk management, let me know and I will pass your note along to a few very qualified individuals who are searching for a home, whether with a lender, vendor, investment banker, or hedging company. These candidates who have many years of experience are interested in full-time positions or part-time consulting.

Looking to grow your purchase business? Great news: we have a proven model of success! Our unique partnership and approach give Loan Officers the opportunity to access some of the best real estate professionals nationwide, allowing them to grow upon existing purchase business. In addition to the massive partnership opportunity, we now can close loans in as few as 10 days or sooner. Today’s market moves too fast for traditional loan approvals and closings, work with a lender who allows you to get it done quicker with our FastTrack program. Guaranteed Rate Affinity and Anywhere (formerly Realogy) are all about speed and we’re continually pursuing purchase mortgage market share. We’re looking for passionate Loan Officers who want to dominate the market, grow their business and join the best of the best. Join a lender that has it all. Contact Tim McGraw to get started. (Guaranteed Rate Affinity is an equal opportunity employer that welcomes and encourages all applicants to apply regardless of age, race, sex, religion, color, national origin, disability, veteran status, sexual orientation, gender identity and/or expression, marital or parental status, ancestry, citizenship status, pregnancy or other reason prohibited by law.)”

Guaranty Mortgage Services, a leading mortgage lender in Bufford, GA, is seeking experienced loan officers to work closely with our trusted real estate partners. If you’re interested in doubling or tripling your volume, this is the perfect opportunity to get you to that goal. Guaranty Mortgage Services is offering an incredible opportunity to partner with productive real estate agents from Keller Williams North Atlanta that will allow you to build a strong referral purchase business. You won’t want to miss out on this unique opportunity. Apply now or contact Sandie Tate (NMLS #168995), JV President or our recruiting team today!”

Are you a TOP producer looking to diversify and expand your business? Are you looking for a recession proof business and the ability to create residual income in this crazy market today? Look no further…you can get the best of both worlds. Finance of America Commercial is a publicly traded company that is behind you, yet, with a small company feel, where your voice and contributions are noticed. Our desire is to find sales professionals that are partnered with mortgage brokers and familiar with Real Estate Investor loans. We have multiple positions for highly qualified candidates that are interested in growing in the investor space. Those that have transitioned to FACO during turbulent times are still here and are killing it! If you’re interested in seeing what FOA Commercial can do for you, contact us today!

Have you ever wondered how Originators close $100M + per year? The answer is simple; They have a team in place that allows them to originate all day without distractions or getting pulled back into files. One of the Top Originating teams in the nation is looking to provide 1 Originator an extremely unique opportunity. This Originator would plug directly into the team, have their files worked on by 2 processors, 2 underwriters and 1 operations manager with a combined 70 years of experience.  Sounds pretty good right? This Originator will also be personally coached by one of the top producing Originators over the last decade. If you close $20M or more per year and are looking for a breakthrough in your career, contact Anjelica Nixt or click here to schedule a confidential conversation.

Lender & broker products, services, and software

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Lenders everywhere are looking for new ways to enchant prospects. But how can you tell which strategies actually work and which are just a bunch of Hocus Pocus? Ask the experts! Sales Boomerang + Mortgage Coach’s free MasterClass series spotlights top originators and rising stars from their organizations as they share strategies proven to help mortgage lenders add 1 to 2 qualified loans per originator to their pipeline each month. The latest installment features Cross Country Mortgage’s Jeremy Forcier, Evan Hastings and Jeffrey Meyers demonstrating pattern interruption and other sales techniques that help LOs communicate more effectively and sell more loans. Check out the replay for proven tips on how to make magic in your pipeline.

New industry innovations from UWM help streamline your process from initial approval to closing. Our innovations make your life easier and give your borrowers the convenience they want. UClose 3.0 is a sleek, enhanced system that offers hybrid closings and streamlined virtual closings, letting you close anytime, anywhere from any device. TRAC (Title Review And Closing) is a cheaper, more efficient alternative to the traditional lender title process. And Safe Check helps you save time and pre-qualify borrowers with a soft credit check while avoiding trigger leads, all in minutes. Bring your business into the future: click here to learn more!

Did you know that Optimal Blue’s MSR valuation model is currently used to value over 90% of servicing assets in the U.S.? With MSR values at peak levels, it’s a great time to review your MSR portfolio strategy. The Optimal Blue MSR PlatformSM offers tiered solutions to meet the needs of all sizes of servicers. Whether you’re just getting your portfolio off the ground or a seasoned valuation expert, our MSR Platform provides visibility into the value and performance of your assets relative to servicing activity, market movement and projections. Our loan-level MSR product provides access to daily MSR valuations from lock date through close, and ultimately through the servicing life of the loan, closing gaps between origination value and portfolio valuation. Leveraging robust integrations with national MSR brokers, the solutions deliver enhanced clarity for retained/released decisioning, while reducing end-of-term balance sheet surprises. Contact Optimal Blue to get started.

There’s no time like the present to automate your non-QM portfolio decisions. LoanScorecard’s automated underwriting system allows lenders to take the inconsistencies out of the underwriting process and make loan decisions quickly and confidently. Our powerful automated underwriting engine enables you to efficiently underwrite loan programs to your specific guidelines while mitigating fair lending risk and ensuring accuracy. Whether you’re already in the non-QM space or looking to enter the market, stop by booth #1119 at MBA Annual later this month and learn more about LoanScorecard’s entire suite of products.

Build excitement around intelligent automation. Finding the right intelligent automation solution is the first step. But how do you find the confidence to move it forward? How do you allay end users’ fears and actually build excitement? The Mortgage Automation Suite brought to you by Richey May Automate and Zoral Group provides the intuitive interface and tailored support you need. Set up training based on your change management plan and what will work best for your culture, whether that’s one webinar or a series of hands-on sessions where end users get immediate feedback. And because it’s easy to use, the more your end users engage with it, the more they’ll appreciate it — and the more successful your implementation and adoption will be. Read our article to learn how to set up your intelligent automation initiative for success or schedule a demo today.

STRATMOR on retention bonuses & a new comp survey

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Retention bonuses increased amongst repeat STRATMOR Compensation Connection® Study participants between 2020 and 2021. The 2021 study saw participants offer retention bonuses to 36%, 26%, and 20% of Processor, Underwriter, and Closer staff, respectively. How much on average are these retention bonuses? Get the insights you need to retain your operations talent by participating in the Fall 2022 Compensation Connection® Study. The study provides valuable comparisons on compensation components, incentive plan structure, compensation percentiles, and more. Register today!

Webinars, conferences, and training

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You are cordially invited to a front-row seat to listen, learn, and be inspired by one of the most respected and influential executives and undisputable experts on leadership in the world, Ron Wallace, former President UPS International. Join XINNIX CEO Casey Cunningham for “Leadership Lessons from a UPS Driver: Building a Culture of We Not Me” featuring special guest Ron Wallace, October 20 from 1-2 PM ET. What is the secret behind building not just one of largest companies in the world but one with an undisputable culture of excellence? Ron will share his personal experience in leading what has become the World’s Largest Transportation Company in the world and what he knows are the principles that can be used by leaders in any company. Don’t delay. Register today.

Thursday the 6th: The latest edition of the Economic Forecast Series offers the opportunity to hear directly from one of the premiere experts in the housing and mortgage business. CoreLogic’s Interim Lead Chief Economist, Selma Hepp, shares her analysis on the market trends and what it means for the housing industry.

This Friday at noon PT is the next edition of The Mortgage Collaborative’s Rundown with Rich Swerbinsky and me. We’ll be covering current events in the mortgage market for 30 minutes starting at noon PT in “The Rundown with Rich and Rob”!

Take advantage of National MI upcoming October 2022 webinar sessions, brought to you by National MI University, with a commitment to delivering high-quality educational content to our customers. Available sessions include P&L and Balance Sheet Analysis for Self-Employed Borrowers with Marianne Collins – Oct. 4 at 10am PT. Affordable Homeownership with Fannie Mae with Krissy Hefton – Oct. 20 at 11am PT.

Freddie Mac New Webinar: Rent Payment Assessment with Loan Product Advisor, October 5th

Your time is valuable, don’t waste it on boring Continuing Education! The Knowledge Coop offers exciting and entertaining CE by providing live in-person training and webinar events. October 6 Denver, Colorado register 20% Discount Code: 20Denver. October 20 Portland, Oregon: register.

If you haven’t yet taken the 8 Hour SAFE course to renew your federal NMLS license, then register for the class offered by NRMLA, the only one of its kind devoted almost exclusively to reverse mortgages. The next course offering will be Wednesday, October 12 and Friday, October 14, from 12-4 pm Eastern Time (9am to 1pm Pacific).

This October, Enact (formerly Genworth Mortgage Insurance) will host multiple live courses to help grow your business and positively impact homebuyers. This month, focus on the loan application process by looking at how to structure loan applications, reviewing critical areas of purchase transactions, highlighting issues on the Sales Comparison section of the 1004, and more. Browse Enact’s course catalog of on-demand webinars, just have your company or individual NMLS ID handy when registering.

Sponsored by NYMBA, register for Tuesday, October 11th at 11:00 PM EST webinar: Guiding Your Originators to Business Growth in a Down Market. Join Ron Vaimberg for this powerful and impactful leadership growth program and understand how to keep your team motivated and inspired, key differences between leadership and management, why most originator business plans are set to fail and what to do about it, and the secrets to providing your team the path to thrive today.

On Thursday, October 20th, California MBA DE&I Committee will be hosting a free webinar on appraisal bias. Discussion will include the history and perception of appraisal bias and applicable laws. Current industry trends and ideas to prevent and eliminate appraisal bias. Understand the lenders’ role and ability to help prevent and protect against appraisal bias.

On October 21st, 9:00-10:00 a.m., Join MMLA West in a Zoom Webinar to hear from Steve Richman! Steve’s presentation is, ‘A Cynic’s Guide To Motivation, Success and Happiness’ and you do not want to miss it! Discussions this session includes identification of external and internal motivators, the four C’s to suCCCCess, the seduction of negativity and how to avoid it. Cost: $10 per MMLA member and $20 per MMLA non-member.

Of course there is the MBA’s Annual National Convention and Expo in Nashville 10/23-10/26.

Capital markets: don’t fight the Fed

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Turning to rates, all news is viewed in terms of its impact on the thinking of the Federal Open Market Committee’s thinking. The week opened with weak domestic manufacturing data easing concerns the Federal Reserve will get more aggressive in tightening monetary policy. The index marked the 28th consecutive month of expansion in the manufacturing sector yet the lower reading versus August points to a deceleration in overall manufacturing activity to the lowest level since May 2020. There is a view that negative economic developments will spur the Fed to take a less aggressive path with its rate hike campaign. Falling bond yields on the first day of October after a very bad September for the Treasury market also arose from blowback causing the U.K. to reverse its decision to cut taxes in the highest bracket.

 

Consumers continue to keep the economic momentum going despite signs that the economy is slowing. Spending rose 0.1 percent in August and consumer confidence was at its highest level over the last six months. While this resilience on the part of households has not caused analysts to waive off the possibility of a recession next year, it has shifted the expected timing to later in the second quarter versus earlier in the year. Additionally, this reluctance to pull back on spending will also keep pressure on prices and on the Fed to continue to tighten monetary policy.

The main impact of the Fed’s monetary stance is on the housing market which has seen mortgage rates reach their highest level since 2000 as they approach 7 percent. A brief respite from higher rates towards the end of July led to a near 30 percent spike in new home sales for August. Home buying demand remains strong however, affordability is the main factor holding back potential buyers. Easing home prices should help spur additional home buying over the coming months.

 

Tuesday’s calendar is packed with Fed speakers (New York’s Williams, Dallas’ Logan, Cleveland’s Mester, Fed Governor Jefferson, and San Francisco’s Daly), along with some second-tier data due out later this morning (Redbook same store sales, August factory orders, and JOLTS job openings), and a Treasury auction ($34 billion 1-year bills). Before the open, in Australia the RBA hiked its policy rate to 50-basis points to 2.85 percent, as expected. We begin the day with Agency MBS prices better by .250 and the 10-year yielding 3.58 after closing yesterday at 3.65 percent.

Thank you to Indiana’s Carol K. for sending these photos that everyone with a beard should aspire to. (Just try not to gasp or chuckle.)

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. Capital Markets: What They Do All Day” is the current blog. 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.)