June 13: MSR valuation, non-QM, VOIE, online auction, broker to banker tools; webinars, events, & training coming soon

This morning I head to Chicago, IL, a state with 972 licensed mortgage banking companies. Illinois has had its share of severe storm damage (heck, in Sarasota we just had upwards of 10 inches of rain in about 12 hours), and may be joining the ranks of places in the U.S. where the cost of insurance passes the cost of property tax. Coach a borrower through that! The cost and availability of homeowner’s insurance is a big topic in Florida, as is the PACE program. Florida is one of three states (with California and Missouri) that offer this loan program for clean energy. The Florida legislature put some consumer protection provisions into the program, but for various reasons mortgage organizations like the MBAF were sorry to see the bill pass and are working on a veto. For instance, these loans are put into first priority ahead of the homeowner’s mortgage (no one wants to read “predatory” when it comes to any program), and what lender or servicer needs that? (Today’s podcast is found here, and this week’s are sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, cybersecurity, technology, and other services to the mortgage industry. Hear an interview with Richey May’s Michael Nougier on best practices for companies to put in place regarding preventing and reporting cybersecurity breaches.)

Board member wanted

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The American Credit Union Mortgage Association (ACUMA) is seeking a volunteer board member to join the association’s governing Board of Directors and provide guidance to it and ACUMA on how best to serve its growing membership. “ACUMA is a non-profit association dedicated to advancing mortgage lending opportunities and practices within credit unions. The ACUMA Board of Directors, numbering nine volunteers, sets the association’s governance and provides guidance to the ACUMA President. Board members each serve three-year terms, staggered to maintain experience and continuity while gaining access to new ideas and guidance. Among other things, to be eligible for a full or associate board position the candidate must be employed at an ACUMA member credit union or CUSO. Submit your resume with a request for consideration to ACUMA board member Pam Davis.

Software, products, and services for lenders and brokers

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Interest rates are now double where they were in 2022. Tipping over 8 percent at the end of 2023 and hanging in the 7 percent range nearly all of this year, the current interest rate environment is not helping delinquent homeowners. Gone are the days when modifying your mortgage payment was supported by dropping the interest rate. There is a solution. FHA’s Payment Supplement program doesn’t change the terms of the first mortgage. Read Clarifire’s recent blog, “Servicing Answers to High Interest Rate Pressures,” to find out the details of this solution, along with how old pitfalls could impact your implementation of this program and future loss mitigation options. Don’t let old automation cripple your success. Make sure you’re in a position to help your distressed borrowers navigate economic volatility and avoid default with CLARIFIRE ®, a modern, intelligent innovation that’s truly BRIGHTER AUTOMATION®.

National Homeownership Month presents a prime opportunity for the mortgage business. MortgageFlex executives advise lenders to focus on prequalification to engage potential buyers and start conversations about affordable homeownership. The MortgageFlexONE LOS offers borrower-facing tools and direct CRM access to help lenders engage with prospective buyers and jumpstart the sales process. This proactive approach can instill the dream of homeownership in potential buyers’ minds and expand a lender’s client base. To learn more about the tools driving success in today’s market and how to build your business, reach out to John McCrea.

On the heels of the MBA Secondary in NY and almost 100 client meetings, the AmeriHome team wants you to know that they are listening. Based on client feedback, AmeriHome will focus on developing the products and services that its clients need. To enable that, AmeriHome is hiring in several key areas, including underwriters and a Salesforce Admin! Check out the Careers page for details on all open jobs. If you’re a mortgage broker wanting to leverage the advantages of being a banker but are hesitant because of the complexities and risk associated with compliance and closing documentation, AmeriHome’s Emerging Banker program makes it easy with its new Initial Disclosure and Closing Documents Program! Demand is also increasing for Warehouse Lines, MSR financing and Treasury Management Services offered through its relationship with Western Alliance Bank: click for details. Check out AmeriHome’s Upcoming Events, find your sales rep here, or email them to find out more about what AmeriHome can do for you!

For more than 20 years, RealtyBid has had one focus: bringing buyers and sellers together. Today, the online auction marketplace has become the go-to for exciting real estate buying opportunities and an unsurpassed disposition strategy for sellers. With support from a knowledgeable and experienced staff, RealtyBid’s technology makes real estate transactions less cumbersome and more cost effective for all parties. The RealtyBid platform sets a new standard for online real estate auctions. Check out the new look and learn more about the new enhanced features that just rolled out this month here.

Truv is the only consumer-permissioned VOIE platform approved with both GSEs, solidifying our commitment to delivering top-notch verification services tailored for mortgage lenders, banks, and credit unions. What does this mean for your business? Faster turn times, lower buyback risks, compliance assurance, and reduced operational costs. Read about why this matters for your business here.

Cookie-cutter solutions no longer cut it. In today’s market, look for non-conventional financing from an industry leader like Flagstar Bank. Flagstar offers three competitively priced non-QM products: Advantage Bank Statement, Advantage, and Advantage Plus loans. Advantage Bank Statement features flexible qualifying guidelines based on 12 months of bank statements, making it a great choice for self-employed borrowers. The other two, Advantage and Advantage Plus, offer 12-month seasoning on derogatory events, 1-year income documentation, asset depletion, and unlimited cash-outs. Flagstar delivers in the non-QM space, with LTVs up to 90%, loan limits from $100,000 to $3 million, and flexible guidelines, including up to 55% DTI. Looking for a government loan? Flagstar has been doing them since its earliest days. Take advantage of their seasoned government underwriting specialists and limited-time LLPA reductions for no-score borrowers. For almost four decades, Flagstar has provided smart lending solutions to its broker partners, and, with $113 billion in assets, they have the strength and resources you can rely on. Start a conversation with your AE today, or click here to learn more.

Events, training, and webinars through next week

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Over the last three months, the Optimal Blue Mortgage Market Indices has seen an increase of 45 bps, followed by a 25-bps decrease to 6.91 on June 5. This fluctuation is an indication that the rate market has experienced increased volatility over the last quarter. Market volatility makes hedging profit margins significantly more challenging, which can result in your hedge underperforming, impacting profit margins even further. To learn more about advanced hedging concepts, join the Hedging 201 webinar led by Optimal Blue experts on June 18 at 1 p.m. CT. This session will cover essential topics such as pull-through rates, the impact of clean data on your model, loan sale best practices, duration models, as well as position and gain/loss reconciliation. Secure your spot for the Hedging 201 webinar today to gain valuable insights on hedging in a volatile market.

Join Curinos on Jun 18th at 1pm CT for an insightful webinar on margin-management strategies to optimize your mortgage market position, sustain competitive advantage and maximize profitability. In this session, we’ll explore key metrics and methodologies for understanding your current market position, identifying optimal pricing strategies and maintaining a strong go-to-market framework. Whether you’re a seasoned margin-management professional or only peripherally involved in pricing decisions, this webinar offers valuable insights and practical pointers to help you navigate market complexities and achieve sustainable success. Reserve your spot now!

A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future.

Today will be another episode of The Big Picture at 3PM ET, Rich Swerbinsky is interviewing the esteemed Jodi Hall about all things mortgage.

Simplify the process of reverse mortgages with the Plaza Home Mortgage live session on Thursday, June 13, 11:00 AM PT / 2:00 PM ET featuring Mark Reeve, Vice President of Plaza’s Reverse Mortgage Division.

Join CoAMP and Advantage Credit on June 13th, 5-7 PM at Sheraton DTC  for a fun filled Happy Hour that includes networking and an update on current credit issues/practices by Dena Falbo w/Advantage Credit. Admission is free, there will be food and beverages for purchase.

Friday the 14th will see an episode of The Mortgage Collaborative’s Rundown with Melissa Langdale and me covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET. We have Austin Lampson who was just highlighted as one of the top 5 female loan originators in the country in 2023 and have been in the top 1 percent of loan originators since 2014!

On June 17, 9:00 AM – 4:00 PM (Eastern), FHA is offering a free, in-person FHA Appraisal Training in Nashville, TN. This training will take an in-depth look at a variety of appraisal-related topics including property acceptability criteria; minimum property requirements; property defects; appraiser responsibilities and requirements.

It’s that time again, Pensford’s Q2 Interest Rate Webinar with JP Conklin takes place June 18th at 1:00pm ET. Topics of discussion include fixed and floating rate forecasts, rate cuts in 2024, hedging costs and strategies, soft landing or recession, disinflation and labor market weakness.

FHA Credit Underwriting Training in Nashville, TN, June 18, 9:00 AM – 4:00 PM (Eastern). This free, in-person training will provide an overview of FHA underwriting procedures and take an in-depth look at a variety of topics including credit, income, and asset (CIA) documentation; manual underwriting; automated underwriting systems (AUS); closing; and more.

Your 2024 Midpoint Reset with Dr. Bruce Lund, June 18th at 2pm ET.

Learn more about HFA Advantage’s features and benefits, eligibility and homebuyer education requirements and new product enhancements, register for a Freddie Mac complimentary webinar on Tuesday, June 18, 2:00 PM -3:30 PM (EST). You’ll also learn more about DPA One®, a new online platform developed to help lenders and loan officers find and match their borrowers to eligible down payment assistance programs through a single, online access point.

Join Texas Mortgage Bankers Association on Thursday, June 20 at 11:30 am – 12:30 pm for an insightful and impactful webinar on Strategies for Growing Builder Business with Nicollette Chapman, Senior Vice President of the Mortgage Division at Zonda, and moderated by Bryan Walker, Director of Business Development at Zonda.

June 20-21, in the one and only Honolulu, the MBAH’s annual conference will take place! No neckties required!

Join TMBA for an insightful and impactful webinar on Strategies for Growing Builder Business, June 20th from 11:30 am – 12:30 pm, with Nicollette Chapman, Senior Vice President of the Mortgage Division at Zonda, and moderated by Bryan Walker, Director of Business Development at Zonda.

FHA’s Office of Single Family Housing, in collaboration with the Department of Housing and Urban Development’s (HUD) Office of Housing Counseling announced the availability of its new, pre-recorded webinar, Overview of Resources for First-Time Homebuyers. For both program participants and prospective homebuyers, this free webinar addresses some key home buying myths, provides an overview of FHA single family mortgage programs, and offers guidance on working with HUD-approved housing counseling agencies. Read HUD’s press release for more information.

The Non-QM Town Hall is back bringing you a deep dive into the market dynamics of Non-QM, sharing secondary market updates, providing insights for seasoned Non-QM professionals, and exploring strategies for newcomers. This Town Hall format fosters an interactive dialogue with our featured Non-QM leaders. The first session is Thursday, June 20 with the State of Non-QM, followed by two sessions aimed at Non-QM’s primary audiences: Business Owners in July and Real Estate Investors in August. Sign up here.

Capital Markets: the U.S. Fed’s FOMC does exactly as expected

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MCT and Lender Price announced today that they have joined forces to improve mortgage pricing with loan-level MSR values. MCT’s MSR grids now allow Lender Price PPE clients to be more granular, profitable, and efficient when generating their front-end borrower pricing and managing their MSR portfolio. “Lender Price has shown a commitment to providing the top-performing pricing experience for mortgage lenders by integrating the industry’s most granular MSR values,” said Curtis Richins, president and CEO of MCT. Mortgage lenders will save time and money through faster and more strategic best execution decisions, dynamic margin management, and stronger pricing analytics, all in one enterprise pricing engine. “Our collaboration with MCT marks a significant milestone in our mission to provide lenders with innovative tools,” said Dawar Alimi, CEO and Co-Founder of Lender Price. Read the full press release to learn more about this partnership and the advancements improving performance for mortgage lenders.

For you capital markets nerds, Freddie Mac announced it will voluntarily delist its last remaining security trading on the New York Stock Exchange (NYSE). The bond, Debt Securities Due 2025 (CUSIP 3134A2HG6), trades under ticker symbol FMCC. It was issued in 1998. Freddie Mac will take all necessary steps to delist the bond, including filing a Form 25 with the Securities and Exchange Commission and the NYSE after the ten-day notice period has elapsed. Freddie Mac has not arranged for listing and/or registration of the bond on another national securities exchange or for its quotation in a quotation medium. Freddie Mac expects the last day of trading to be on or around July 1. Freddie Mac voluntarily delisted its common stock from the NYSE in 2010 at the direction of its conservator, the Federal Housing Finance Agency. The continued listing of this bond would subject Freddie Mac to rules and administration that are unnecessary given its status in government conservatorship.

Yesterday, Guaranteed Rate, the second-largest retail mortgage lender in the United States, announced the launch of its first Residential Mortgage-Backed Securities (RMBS) deal of 2024, marking the company as the first 100 percent retail non-bank lender to re-enter the securitization space with a Prime Jumbo deal since the pandemic. “This deal highlights the shift in strategy Guaranteed Rate has implemented to prove its commitment to offering robust financial solutions regardless of market conditions. By providing a new outlet for liquidity, the company is doubling down on supporting the industry and its borrowers while banks are exiting the mortgage lending space due to new regulations.”

Yesterday was quite a pivotal day for markets with both the latest CPI inflation reading and FOMC rate decision. May’s inflation data came in softer than expected (good news for the Fed), though the Federal Open Market Committee unanimously voted to leave the federal funds rate target range unchanged at 5.25-5.50 percent. The FOMC is now projecting only one rate cut in 2024, with some participants believing there will be two cuts, compared to the consensus three rate cuts predicted this year at the March meeting. The FOMC also moved up its projection for the terminal rate, reinforcing policymakers’ public calls to keep borrowing costs higher for longer to suppress inflation. For those keeping track, headline CPI was unchanged in the month, the first flat reading since July 2022. Core CPI increased by 0.2 percent, the smallest increase since August 2021.

PPI (-2. percent) and weekly jobless claims (242k) kicked off today’s economic calendar. Later today brings several Treasury auctions that will be headlined by reopened 20-year bonds, 5-year TIPS, and reopened 30-year bonds, Freddie Mac’s Primary Mortgage Market Survey, and Fedspeak resumes with New York Fed President Williams delivering remarks. We begin the day with Agency MBS prices better by about .125 from Wednesday’s close, the 10-year yielding 4.26 after closing yesterday at 4.30 percent, and the 2-year at 4.68 after continued inflation news.

(Thanks to Don C. for this one.)

Husband: “What are we having for dinner?”

Wife: “Nothing.”

Husband: “We had nothing last night.”

Wife: “I know, I made enough for two days.”

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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 2024 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