Daily Mortgage News & Commentary

Sep. 2: Employment, Lender services and software, wholesale latest; August payrolls

We have witnessed a change in our work environment. From the Central Coast of California, Jeff O. sent, “Yesterday I had convened a zoom meeting of major national programs that took two months to set up. I was disappointed when one of the key program leaders was missing. He appeared 25 mins into the meeting and apologized for being late, saying that a sink hole had appeared in his backyard and needed to wait for help to arrive before jumping on the call. It is the most unique excuse I have encountered for being late for a meeting and part of the new normal for remote work.” (Working from home or being in the office is still somewhat in flux; recall this short very humorous video about returning to the office.) Capital markets folks work from home and are back in the office, grappling with products and margins, and the current blog from the STRATMOR Group talks about how mortgage pricing is set in, ““Secondary Marketing: What They Do All Day.” (Available here, today’s podcast has an interview with. This week’s podcast is sponsored by MCT’s Hedge Advisory. As the industry leader in pull-through analytics and best execution with the highest staff-to-client ratio, lenders of every size trust MCT to manage risk and optimize profitability in their mortgage loan pipeline management.)

 

Employment

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Are you losing more loans than you’re winning? Does your pricing seem out of line with the market? Are you wanting to take your Originating career to the next level but feel held back? When an originator hits a plateau it’s because the platform they are in doesn’t allow them to grow beyond what they’ve already achieved. One of the Top Originating teams in the nation is looking to help 1 Originator achieve their goals and reach the next level of their career. Looking for a new opportunity is scary, but with our proven track record, individual coaching, dedicated operations and unmatched pricing fear turns into excitement! Top producers have some advantages not available to everyone. It’s time to give yourself those same advantages, start dominating your market, and take your career to the next level. If you close $20M or more per year and are looking for a breakthrough, contact Anjelica Nixt or click here to schedule a confidential conversation.

 

Lender services and software

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I’m excited to share an opportunity regarding the Knowledge Coop’s new membership platform. The Knowledge Coop offers all state and federal Continuing Education courses in an engaging and exciting video format that you’re sure to actually enjoy. Want to give yourself a sharper competitive edge? The Coop also offers in-depth training on specific topics like VA Loans and FHA within its Coop Academy. Get access to industry experts and connect with other mortgage professionals all in one space. Use Code Chrisman10 for 10% off your first year of membership at trythecoop.com

 

The year is 2053 and the mortgage industry is in peril. What started as a couple of fintech company acquisitions, soon became a massive conglomerate. Independent mortgage bankers are forced to choose between conformity and exile. Luckily, this same year a robotic dog, named Augie, traveled back in time with a mission. The mission was simple, help mortgage professionals take back their business. Augie is armed with years of knowledge from mortgage bankers; able to generate mortgage reviews, organize contacts, track important dates, create sales activities, produce reports, and so much more. Augie’s talents don’t stop at managing client relationships, though. Augie is also great at processing loans – achievable through step-by-step instructions and automation. Reimagine your workflow with an AI Assistant and Processor. Reimagine a future where you’re in control of your data. A revolution in mortgage banking isn’t coming, it already arrived. Are you ready to meet Augie?

 

Apparently, you have better odds of becoming the President of the United States than winning the lottery. So, what does that say for this lucky dude who won the lottery twice in a month? No idea. BUT the odds of Advantage Credit helping you to improve your processes, services, and save money are much greater! They are offering a free comprehensive Business Review of your current Credit Reporting and Verification services to see what adjustments can be made to help you save time and money. With business slowing down for everyone, now is the perfect time to do a thorough systems check to be sure that you are running as efficiently as possible. Just fill out this form and we will contact you to get started on your free Business Review!

 

We get it, ECOA/Reg B-Adverse Action compliance can be a headache inducing task. And you’ve likely seen us offer up our solution, Velma Connector, to help with that here in the Chrisman Newsletter. Maybe you’ve been on the fence or maybe you just needed a bit more info. Well now is a great time to look again! Connector automates the whole process and takes the stress off your business. No LOS Logins. No more pricy fines. Compliance as easy as opening an email. Click here to see how the process works and how Connector can save you time and get you almost 400% back on your investment.

 

The real estate industry is changing rapidly. Technology, competing business models, and a flood of investor capital are creating new challenges and downward pressure on realtor commissions. Mutual of Omaha Mortgage Services can help you to level the playing field. Mutual of Omaha Mortgage is proud to announce the launch of Mutual of Omaha Mortgage Services, a new business channel that is focused on the specific needs of real estate brokerages. Boost your bottom line while providing your customers a cutting-edge lending experience. For more information contact us.

 

Lenders could realize hundreds of thousands of dollars in additional revenue if they automated their upfront fee collection process. Every lender knows they should be collecting these fees because it gives the borrower an incentive to close the deal. But unfortunately, the manual processes leave too much room for human error. With an automation solution that integrates with your LOS, all lenders have to do is click a button to issue their request to the borrowers – literally. Borrowers then receive a secure payment link via text and email, complete the payment right from their device, and everyone is sent a receipt. Lending institutions that use this solution receive 94% of their payments within 24 hours and 60% within 5 minutes. Eliminate operational costs, collect more upfront fees, and give your borrowers the digital experience they expect with Fee Chaser by LenderLogix.

 

“People are winning in niche plays. Did you know that as many deals are happening with an origination date from 2 years ago, as deals that are happening with an origination greater than 9 years ago. Is your marketing company helping you to identify the older pockets of data that are in the money? What does this mean for you? There’s still so much untapped potential in these spaces. In this market, it is highly critical to utilize focused data, and identify where consumers are transacting at the highest rates. Want to know more about what is actually working out there? Where to put your marketing dollars in such uncertain times? Let us know, we’d be happy to schedule a call to discuss.”

 

Are you looking for custom title solutions or to change your current provider? Selene Title can meet your needs. Selene Title is a national provider of origination, securitization, SFR, bulk and default title services for mortgage lenders, servicers, and investors. Contact John Guy or Robert W. McKinley to learn how Selene Title delivers exceptional customer-centric solutions for our clients. Visit seleneadvantage.com to learn more.

 

Wholesale news, products; another one gone

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While NASA has been preparing for the Orion Spacecraft’s journey to the moon, the Orion Lending Team has also been hard at work to hyper speed our brokers production! With several new programs recently added, Orion continues the mission to provide industry leading tech and a diverse product mix!  Recently added, the Titan Flex Alt Doc Series with Interest Only for both ARMs and Fixed rates, NEW Down Payment Assistance programs, and COIN, Cashflow Only Investor Loan with DSCR DOWN TO ZERO (No Ratio), with Interest Only for both ARMs and Fixed rates, no disclosures or required wait periods! Coupled with our newly enhanced Quick Pricer/Quick Compare tool, with ability to lock without uploading a loan, what’s not to love! Oh, and every program underwritten in-house with our 24-hour UW Purchase Commitment. Don’t miss the opportunity to propel your business, click here to get approved today!

 

Rocket Pro TPO’s new products and new Non-Delegated Correspondent lending solutions are waiting for you! We’re getting ready to add more to our product mix this Fall, designed to grow, nurture, and retain clients! It starts with our highly anticipated new Home Equity Loan. Get all the details about upcoming products at Austin Niemiec’s live webinar on Thursday, September 8. Click this link to sign up. In addition to great products, partners are now experiencing our new Non-Delegated Correspondent fulfillment options. Sign up today to join our partners who are already leveraging Rocket technology for all their disclosure needs including closing documents! Contact RocketPro TPO today to learn more.

 

Founded in 2015, Lender Price is one of the most modern, proven, and robust technology platforms in lending. With over 200 customers and 10k users utilizing the Lender Price technology right now, over $30 billion in funded loan volume passes through the platform each month. 22 of the top 30 wholesale lenders are leveraging the Lender Price platform, including 8 out of the top 12 banks and credit unions, to drive additional volume and increase overall efficiency. Lender Price technology is helping clients price faster, providing them with the ability to price over 500 different loan programs and permutations in under 500 milliseconds. A cloud-native application that can scale both vertically and horizontally, the platform was built using a microservices architecture, helping clients see zero downtime or latency. Lender Price is truly the one engine to replace them all. Request a demo to see the platform in action or feel free to email to get more information.

 

Wholesale lenders! What if your Account Executives knew exactly which brokers to call? What if you knew where in the country you needed more AEs? What if you had a CRM that anticipated the unique sales challenges that only wholesale lenders have? OptifiNow is the answer! OptifiNow offers the only sales and marketing CRM designed specifically for wholesale and TPO lenders. OptifiNow manages all aspects of wholesale lender marketing, from rate sheet distribution to event marketing. Powerful integrations with LOS systems enable OptifiNow to have complete visibility and control over sales operations. Make the switch from overpriced and underpowered CRMs that have zero experience with wholesale lender sales. What if you reached out to OptifiNow today? The answer is at 888-746-6743 or click here to learn more.

 

It isn’t the first, and won’t be the last. AmeriSave Wholesale sent out, “Ameri Save Wholesale Mortgage Solutions (AWMS) is closing its doors effective immediately. No new registrations after today 9/1/22. Loans in the pipeline must be locked by Friday, 9/2/22, by midnight. All loans must close and fund by October 31st.”

 

The blend of mortgage banks & banks

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Out of Texas comes news that Cornerstone Home Lending has received all bank regulatory approvals necessary to complete its planned acquisition of and merger with The Roscoe State Bank. Cornerstone Home Lending expects the transaction to close on or around October 1, 2022, subject to completion of the remaining customary closing conditions. The merger results in the formation of Cornerstone Capital Bank, which will hold more than $380 million in consolidated capital and more than $1.5 billion in consolidated assets. Its formation creates the highest initially capitalized new bank in Texas history. The bank will operate in three business segments: mortgage lending and servicing, commercial and retail banking, and institutional banking.

 

Capital markets: Payrolls in at 315k

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Mortgage rates are certainly on the rise again. This week’s Primary Mortgage Market Survey from Freddie Mac saw mortgage rates jump again with the 15-year fixed (5.66 percent) and 5/1 hybrid ARM (4.98 percent) rates taking out their YTD highs and hitting their highest levels since 2009. With yesterday’s selloff, the 30-year mortgage rose to 6.23 percent according to Mortgage News Daily. That places it just shy of this year’s high of 6.28 percent from mid-June.

 

Economic releases on the day showed jobless claims decreasing domestically, indicative of a tight labor market that flies in the face of the Fed’s effort to induce softer labor market conditions. The August ISM Manufacturing Index was unchanged from July, but stronger than expected to post the 27th consecutive month of expansion in the manufacturing sector. Nonfarm productivity decreased 2.4 percent from the same quarter a year ago, which is the largest decline in a series that began in the first quarter of 1948. Meanwhile, unit labor costs saw the largest four-quarter increase (9.3 percent) since the first quarter of 1982. And total construction spending declined 0.4 percent month-over-month in July, continuing the downturn in residential spending due to weak homebuilder sentiment, which has deteriorated on the back of higher mortgage rates crimping affordability for prospective buyers.

 

Today brought the August payrolls report, with the headline figure in at 315k and the unemployment rate ticking up to 3.7 percent. After an increase of 528k last month, markets were looking for an increase of 300k to 350k, an unemployment rate of 3.5 percent.  The only other data point today is July factory orders, due out later this morning. Regarding MBS, the Desk purchased the $1.999 billion maximum this week with a 21.7 percent hit rate as $9.195 billion was tendered. 76 percent was in UMBS30s with 5 percent in UMBS15s and 19 percent in GNIIs. We begin the day with Agency MBS prices better by .125 and the 10-year yielding 3.24 after closing yesterday at 3.27 percent.

 

 

 

After Quasimodo’s death, the bishop of the cathedral of Notre Dame sent word through the streets of Paris that a new bell ringer was needed. The bishop decided that he would conduct the interviews personally and went up into the belfry to begin the screening process.

After observing several applicants demonstrate their skills, he decided to call it a day when a lone, armless man approached him and announced that he was there to apply for the bell ringers job. 

The bishop was incredulous. “You have no arms!” 

“No matter,” said the man, “Observe!” He then began striking the bells with his face, producing a beautiful melody on the carillon. The bishop listened in astonishment, convinced that he had finally found a suitable replacement for Quasimodo. Suddenly, rushing forward to strike a bell, the armless man tripped, and plunged headlong out of the belfry window to his death in the street below.

The stunned bishop rushed to his side. When he reached the street, a crowd had gathered around the fallen figure, drawn by the beautiful music they had heard only moments before. As they silently parted to let the bishop through, one of them asked, “Bishop, who was this man?” 

“I don’t know his name,” the bishop sadly replied, “but his face rings a bell.”

(but wait, there’s more…) 

The following day, despite the sadness that weighed heavily on his heart due to the unfortunate death of the armless campanologist (now there’s a trivia question), the bishop continued his interviews for the bell ringer of Notre Dame.

The first man to approach him said, “Your excellency, I am the brother of the poor, armless wretch that fell to his death from this very belfry yesterday. I pray that you honor his life by allowing me to replace him in this duty.” 

The bishop agreed to give the man an audition, and as the armless man’s brother stooped to pick up a mallet to strike the first bell, he groaned, clutched at his chest, and died on the spot. 

Two monks, hearing the bishop’s cries of grief at this second tragedy, rushed up the stairs to his side. “What has happened?” the first breathlessly asked, “Who is this man?” 

“I don’t know his name,” sighed the distraught bishop, “but he’s a dead ringer for his brother.”

 

 

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. “Lenders are Eying Compensation and Ops Trends” 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.)