Remember those futuristic movies where humans battle machines? Are we really that far off? Here’s one development: artificial intelligence is transforming drones from picture takers into action takers. “One example of machine learning in drone inspection is Neurala’s Brains for Bots. The software helps drone companies apply machine learning to data collected by drones and organize it.” Appraisers running a team of drones instead of visiting properties? Already happening. (Did I mention that I now use AI to write this commentary every day? No I didn’t; it’ll never happen.) Switching gears, how about The Seattle Times reporting how some lenders are now considering the potential future value of Amazon stock as a qualifying factor for a home loan? This is a change in policy since lenders normally do not count potential stock-related windfalls due to the possibility of a decline in value. New Amazon employees can qualify for larger mortgages to buy more expensive homes. If we could all do this, what could go wrong?
Jobs & business opportunities
A HUD-approved & Non-QM mortgage bank, located in California, is seeking 4 branch offices to take over the Bank. The ideal situation is for the majority shareholder to liquidate a portion of their equity through the transaction. Interested parties should contact Chrisman LLC’s Anjelica Nixt for confidentially forwarding; please specify your current monthly volume production.
“OUR MONEY, OUR RULES! Over the past 20 years ACC has evolved from a small DC Metro Non-QM portfolio lender to selling directly to Wall Street, now we are fully delegated with our unique offerings! OUR MONEY, OUR RULES! Combine our 20 years of experience with a fund that is hungry for loans and you have the most dynamic Non-QM lenders in the market. ACC has designed and built a platform to support 50 top quality AEs to each generate $50MM a year. AEs will not be restricted to geography, or by legacy. ACC has expanded to the 25 best states, increased its funding capacity, lowered rates, and created new products. On top of an excellent best comp plan, ACC has added a profit-sharing program to compliment the generous health and benefits program while leading the market as the oldest Non-QM Lender in the industry. If interested, please send resume to [email protected].”
“Are you an experienced outside or inside TPO Account Executive looking to provide more options to sell to your diversified client base? At Towne, we pride ourselves in being full service across the board – from channel, to services, to product. Channel: Account Executives are NOT restricted by channel! They sell it all – fully delegated correspondent, mini-correspondent, traditional wholesale, and a unique hybrid retail solution designed for credit unions. Services: Towne provides options to our clients including document services, processing and subservicing. Product: Our clients have access to a full agency product set, renovation products (203k, HomeStyle), Construction, Jumbo, non-QM as well manual underwrites and manufactured homes! Towne Mortgage Company is a 37-year old full service GNMA/FNMA/FHLMC seller servicer headquartered in Troy, MI. We offer our TPO clients top tier pricing and we offer our Account Executives an extremely competitive compensation plan and benefits package. Sound interesting? Please send confidential inquiries to John Korch.”
Lender services and products
You’re just a hop, skip & jump away from the largest gathering of independent mortgage brokers in the industry! Swing by the Bellagio in Las Vegas on October 11th & 12th for the AIME Fuse 2019 National Conference. Take the opportunity to learn and network with the hottest players in the mortgage industry. Discover why AIME Fuse 2019 is more than just a conference, it’s a celebration of us – independent mortgage brokers and take $25 off your ticket when you register today with promo code FUSEChrisman. Sign up now! aimegroup.com/brokers
Compass Analytics, now a wholly owned subsidiary of Black Knight (NYSE: BKI), continues to drive forward on its mission to deliver the most sophisticated and streamlined pricing, hedging and best execution tools to the industry with its October release of CompassPointTM and CompassPPETM. CompassPPE™ introduced a new side-by-side product comparison feature which allows originators to compare up to three eligible loan programs at once as well as enhancements to the pricing concession workflow between originators and secondary. Expanding its suite of loan sale automation and business intelligence reporting, new functionality was added to CompassPoint™’s Pooling Optimizer that streamlines high balance loan optimization based on month-to-date delivery parameters. Additionally, CompassPoint™’s Rate Sheet & Margin tools were dynamically enhanced, giving lenders the ability to efficiently model their margin structures at the channel, branch, product and originator levels. For more information on these or other Compass products and services, please contact [email protected]mpass-analytics.com.
“The market is unpredictable; Your vendors shouldn’t be. Discover why 91 of the Fortune Global 100 companies chose Accenture as their partner, with more than 9 out of 10 as clients for more than 10 years. Meet Accenture’s Mortgage Team at the MBA Annual October 27th-30th in Austin to discuss how we might partner in 2020 and beyond. Click here to schedule an individual meeting or meet in the Exhibit Hall at Booth #419. Everest Group recently awarded Accenture with its top “Leader” designation in its 2019 Mortgage BPO Service Provider Assessment.
In the first quarter of this year, the cost of originating a mortgage loan climbed to a historic high of $9,584. Cloudvirga CEO Dan Sogorka explores a little background on the cost of lending and provides a path forward that will make home financing more affordable for everyone.
Blend’s industry-leading digital lending platform does more than mortgage. The platform now powers home equity loans, which represent a huge market for lenders, with tappable equity reaching an all-time high of $6.3 trillion. Blend has compiled the latest methods for marketing home equity into an ebook. Learn how to develop campaigns, craft messaging, and reach home equity customers where it matters most. Get the guide.
Training and Events:
Arch MI’s October Calendar of training opportunities is now available.
The October line-up of Trainings being offered through the National MI University has been posted.
Whether you’re looking for fraud, tax or income training, or if you need to get up to speed on the Quarterly Agency Updates and Communications from 3Q 2019, Genworth’s October Training Calendar is available here.
The 2019 FHLBank Chicago Credit Union Conference is happening this week, October 10-11. If you come, say hi!
If you are a credit union in the Southeast, or want to meet one, on October 24th come to the SECUREN Fall Conference which takes place in Chattanooga.
Arch MI October Webinar Sessions include training for underwriting self-employed borrowers, assessing mortgage risk, reviewing tax returns and more draws on the latest market trends and regulations.
In Minnesota this week? MMA’s Educational Event is on October 9th at Pinstripes: “First Time Homebuyer Purchase Market Workshop.”
Join the NAMMBA webinar on Thursday, October 10th; Grow Outside the Box Using Non-QM.
Don’t miss the October 10th MBA St. Louis Lunch at Orlando’s, beginning at 11:30, for a Missouri Mortgage Industry Panel Discussion. Heath Clarkston, its lobbyist from Jefferson City; Mick Campbell, Supervisor of Mortgage Licensing at Missouri Division of Finance and the new Commissioner of Finance for Missouri to speak to speak about the latest updates and current bills that affect mortgage banking.
AmeriHome’s underwriting management team will be offering a Core Jumbo webinar on October 17.
Register for MMBBA’s two-day course, October 29th & 30th, Mortgage Foundations: Master Basics for the Business. The course will cover comprehensive training in the mortgage lending process, space is limited.
The PRMG University TPO Training Calendar for the month of October is available.
Plaza’s October Webinar Calendar includes topics like Condo, Reverse, Income, Appraisals and Forms. Can’t make it to a webinar? Register anyway and Plaza will email you the recording.
The BankAI brochure: Download a copy for a full preview of what BankAI 2019 has to offer. View the most up-to-date speaker lineup, explore the tracks and agenda topics, and learn more about the networking opportunities that await you in Chicago this week. With over 25 sessions covering everything you need to know about artificial intelligence in banking, live digital demos of cutting-edge technologies, and ample time to expand your network, BankAI 2019 is your institution’s ticket to the future of banking on October 7&8.
CAMP South LA Chapter is providing a free workshop offered by its partners at Radian. Scheduled on Wednesday, October 16th from 10:00 AM to noon in Gardena, CA. This 2-hour session is led by Radian trainer, Richard Lauro, providing an in-depth review of the various self-employment entities and the 2018 tax forms that are used to report self-employed income. Must RSVP to attend: Email [email protected] to reserve your seat.
Register for the next California MBA Legal Issues Committee Webinar, October 17th, to discuss Practical Implications of the Conversion from LIBOR in Commercial and Residential Lending Transactions. An update on Taniguchi v. Restoration Homes. Vicarious Liability of Lenders for Independent Contractors’ TCPA Violations.
The Fuse 2019 National Conference is brought to you by AIME (Association of Independent Mortgage Experts), a non-profit, national trade membership association created exclusively for independent mortgage brokers. The October 11th and 12th conference will feature well-known speakers and top-name exhibitors.
loanDepot Wholesale is providing a live 30-minute webinar on October 15th: What is Renovation Lending? Why is it of Value? Program Highlights and Best Practices. Join to learn the ins and outs of renovation lending and how to successfully originate them.
Registration is open for the MMLA Southeast Chapter’s Non-QM Loan Panelist Luncheon that’s happening on October 22nd. Hear from Non-QM experts to find out what products and programs they offer, what issues these loans are facing, and what opportunities are available.
The AzAMP Annual Expo on October 24th and 25th will be presented in two parts. Click here to view details for this years’ EXPO.
Attending the upcoming MBA Conference in Austin October 27th-30th? Schedule your dedicated one-on-one meeting with Plaza to see how our diverse lineup of products and flexible delivery options can benefit your business.
Register for MMBBA’s Mortgage Foundations: Master Basics for the Business October 29-30 at the HCAR Office in Columbia, MD. This Two-Day Course will cover comprehensive training in the mortgage lending process.
In North Carolina the Charlotte Regional Mortgage Lenders Association is having its monthly luncheon on November 7 at Myers Country Club.
If you find yourself in the Kansas City area on November 14, the MBAKC is having a fine holiday luncheon.
Economic data over the last week was decidedly less robust than what we have seen throughout much of the year. As both the manufacturing and service sectors fell during September with manufacturing in contraction territory for the second straight month. The ISM Non-manufacturing survey fell but is still positive: Near the bottom range of an expanding economy and its weakest reading since August 2016. Employment data was a little better with the US adding 136,000 new jobs during September and unemployment falling to 3.5 percent, the lowest level since December 1969. The labor force participation rate was unchanged at 63.2 percent. Light vehicle sales increased during September but remain below their pace from one year ago. Additionally construction spending increased during August, led by an increase in single family construction. Elsewhere, refinance mortgage applications increased 14.2 percent, ending a two-week drought. As economic conditions begin to show more signs of contraction, the Federal Reserve continues to remain accommodating with markets now expecting a rate cut as early as the October FOMC meeting.
U.S. Treasuries ended last week on a slightly higher note, including the 10-year yield closing yielding 1.52 percent, after U.S. jobs numbers missed their mark, another sign the economy is slowing or maybe even stalling. Despite the jobless rate dropping to a 50-year low, the report showed no average hourly earnings growth in September, the weakest in a year, and growth in employment slowing versus previous reports. Investors saw the hiring rate, which came in below earlier estimates, as not bad enough to spark recessionary fears, but bad enough to likely squeeze another rate cut out of the Fed. Chair Powell attempted to paint a moderately happy picture when he spoke Friday afternoon, saying that the U.S. economy is “in a good place,” and repeating that the Fed’s job is to “keep the economy expanding as long as possible.” He will deliver additional remarks today and tomorrow before the minutes from the FOMC’s September meeting will be released Wednesday. The question now is whether things stay the same or continue to deteriorate.
Today’s economic calendar for the U.S. begins slightly later this morning, with September employment trends, the only release for the day. The week is relatively light, and continues tomorrow with September Producer Prices and core PPI before Wednesday and Thursday bring August Wholesale Inventories and September Consumer Prices, respectively. The week closes with September Import/Export Prices, and the preliminary October Michigan Consumer Sentiment Index. Regarding MBS, the New York Fed will continue conducting term repurchase operations through October 29 while daily overnight repurchase operations will continue through November 4. Additionally, the NY Fed will conduct three FedTrade operations targeting up to $1.7 billion MBS. We begin today with Agency MBS prices roughly unchanged and the 10-year yielding 1.53%.
(Thanks to Craig B. for this firing tip.)
“Dave, I have no idea how this company would operate without you. But tomorrow, we’re going to find out.”
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, “How Productive is Your Origination Team?” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are hundreds of mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2019 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)