Daily Mortgage News & Commentary

Sep. 27: MLO & sales mgt. jobs; education, broker, BI, CRM products; econ. news continues; mortgage robots?

Let’s end the week with some non-mortgage ramblings. Last night in Dallas I had dinner at The Mercury, a fish restaurant. (Who was in charge of naming that one? Try the tuna!) It wasn’t a date, but it reminded me that dinner in Dallas is pricier than some cities, less than in others, and look at how expensive it is to go on a date in each state. (Page down a couple of times to get past the stock dating photos and see the map.) Some of those dates involve a hotel stay, and here’s some good news for the environment: Marriott, the world’s largest hotel chain, is ending the use of 1.7 million pounds of plastic per year by eliminating miniature single-use plastic toiletries in its bathrooms in favor of larger tamper-proof plastic bottles with pumps.

Employment & businesses wanted

U.S. Bank Home Mortgage is growing in the PA, NY, and NJ Markets! We’re hiring Managers and Loan Originators with Builder/CRA/Traditional experience! We’re seeking stellar talent to build a dynamic growing team to help navigate important milestones and strengthen futures together in the communities we live and work. At U.S. Bank, you’ll get the incentives, tools, resources and personal support you need to pursue your professional dreams and cultivate meaningful relationships with the people and communities you support.  We offer a comprehensive benefits package, including a pension plan and matching 401k plan!” Please contact Tony Clintock, U.S. Bank Home Mortgage East Coast Manager (732-841-4677) or Peter Kessler, U.S. Bank Home Mortgage Recruiter (651-605-4625).

The largest technology platform for Real Estate Leads in the U.S. is looking to acquire a Full Eagle/FHA lender approved shell company in order to offer an integrated Real Estate, Mortgage experience to consumers. This is a very unique opportunity, with the direct goal of scaling the company across all 50 states to service and support a low cost, streamlined, purchase Real Estate and Lending experience. Will scale the mortgage company to support 5,000-10,000 consumer purchase leads a month. This a very serious growth opportunity for the right seller looking to be competitive with the Amazon, or Zillow mortgage/real estate platforms. Serious sellers can email Chrisman LLC’s Anjelica Nixt and a representative of the Technology/Real Estate company will be in contact with you. The goal is to close the transaction by the end of Q4 2019.

Citizens Bank celebrated its five-year anniversary as a publicly traded company on September 24th, and the Home Mortgage Division is celebrating as well by breaking many historical production records. While business is booming for all mortgage lenders, the difference is how Citizens operates as #ONETEAM. Sales and operations work seamlessly together in sync with the common goal of delivering excellent customer service. If that sounds like a company you want to build your sales career with, apply to Citizens Bank today. For questions, please email Home Mortgage Recruiting.

LandGorilla is hiring! “Come join one of the fastest-growing technology companies in America on a mission to make construction lending faster, safer and more efficient. Our California location has open positions that include Director of Product, Professional Services Manager, Manager of Customer Success, and many more. Visit the Land Gorilla careers page to view detailed job descriptions and apply. LandGorilla offers competitive salaries and benefits in a fast-paced environment with enormous opportunities for personal and career growth.”

REGISTRATION ENDS SOON for the American Pacific Mortgage Fall 2019 Symposium happening at L.A. Live this October 10th and 11th. Check out the AMAZING line up of speakers, including: Daymond John – the People’s Shark, Elliot Eisenberg, Sally Hogshead, Brittany Hodak, Rene Rodriguez, and Bruce Lund. We also have an extraordinary panel with Darin Dawson (BombBomb), Dave Savage (Mortgage Coach), Sue Woodard (Total Expert) and Ernie Graham (Homebot). The two-day event is crafted specifically for Mortgage Originators and Branch Managers so they can interact and collaborate with APM leadership, top producers and other industry leaders. Come join us as our guest and discover first-hand how APM operates and commits to supporting our Originators with the tools, inspiration and resources to capture market share in 2020! Registration closes soon and seats are limited. Click here to register. Or, contact Dustin Block (303.378.3166).

Lender services and products

Are you using a third-party Lead Management/ CRM system? In STRATMOR Group’s 2019 Technology Insight Study, 74% of respondents are. Top of Mind Networks with its Surefire platform was the most preferred CRM technology partner for the second year in a row. Their market share had risen to 18.4 percent above the 17.6 percent in 2018. CEO Bill Hayes credits the company’s commitment to providing a system that meets the changing needs of the industry while placing a priority on helping loan officers grow their individual businesses.

“In the mortgage world, the top producer is everything! Or is it? If you’re not doing detailed profitability analysis at the loan level, it can be tough to tell who your highest performing (or most improved) teams are. It can be even harder to develop best practices from what they are doing and share them with no numbers to back it up. Richey May Technology Solutions has a lender-focused BI Tool that can connect to all your critical systems to bring you actionable insights to help you grow intelligently. If your BI tool doesn’t serve you, check out our approach to these 4 high-impact reports for mortgage leaders and contact us for a demo today.”

Non -QM lending is projected to reach $40 billion this year and Verus Mortgage Capital continues to take its share with record-setting monthly volume. Verus is the largest securitizer of Non-QM assets and with rates expected to shift again and the potential for a drop in conventional loan volume, lenders have a perfect opportunity to add non-QM mortgages to their portfolio of loan offerings. Verus is a highly experienced investor that is committed to helping correspondents succeed in non-QM. Email Jeff Schaefer at Verus to schedule a meeting at the MBA Annual Convention in Austin and to learn more about the exciting opportunities in the non-QM space.

QLMS is passionate about doing more so that brokers can focus on building relationships and growing their business. One of the biggest ways a company can grow is through effective marketing. QLMS has taken marketing pieces that have been tried and tested by America’s largest mortgage lender and is giving them to their partners for FREE through the Marketing Hub. Not only are there important marketing pieces like emails, social media posts and direct mail pieces, but QLMS just added even more to the collection. Partners can now get custom PowerPoint presentations that brokers can use when meeting with clients or real estate agents. Spanish-language flyers have also been added, so brokers can have professional-quality marketing to serve bilingual clients. Contact your AE to learn more. If you’re not working with QLMS, you can connect with them here to learn about how QLMS can help you reach your future clients.

What are you missing by not turning on Sales Boomerang? Lenders using Sales Boomerang have seen $2.2B in originations in just 8 months! $336 in originations in August alone. Over 100,000 notifications have been delivered to their 62 active lenders in the past 30 days and they have 18 contracts out for signatures. You’ve seen Sales Boomerang on the cover of Banking CIO Magazine this month as the Top Tech Company in 2019 and 10 of the top 16 lenders in the country are either clients already, on boarding or have a contract out. So the only thing you are missing by not working with Sales Boomerang is billions in repeat business, being on the cutting edge of technology and preventing your competitors from stealing your customers. Take the first step and schedule a demo!  #noborrowerleftbehind 

FinLocker announces MyFinLocker, a personal financial assistant tool to help consumers plan and achieve their homeownership dream and other financial goals. FinLocker, a financial data and analytics company, announces its most recent innovative addition to the patented FinLocker platform, MyFinLocker, with new features including: 1) Real estate search for properties, save favorites, and receive listing alerts. 2) Digital financial assistant, Madison, providing AI driven insights and recommendations. 3) Credit monitoring with alerts to coincide with credit report and credit score. 4) Financial transaction data that helps drive recommendations and goal setting. 5) DPA eligibility determination in partnership with Down Payment Resource. 6) A “readiness” assessment to help consumers understand where they are with associated action steps. 7) Personalized recommendations driven by self-reported, credit and asset/liability information. 8) White labeled for customers and accessible via mobile app, tablet and workstation. For more information, contact Brian Vieaux.

Robots

Still looking into Robotic Process Automation (RPA)? According to the new September issue of STRATMOR Group’s Insights Report, 20 percent of lenders already have RPA (bots) in use, helping to eliminate tedious tasks, dramatically increase efficiency and reduce costs in processes. “RPA has landed solidly in mortgage, particularly with the most forward-thinking lenders,” says STRATMOR Senior Partner Michael Grad. “It is more than the latest technology trend. RPA is helping lenders re-engineer processes and transform the customer experience.” Don’t miss Grad’s article, “I, Robotics: Robotic Process Automation (RPA) in the Mortgage Industry” in the September Insights Report.

Capital markets

The Fed was the main headline of last week, but not for their highly anticipated 25bps rate cut. I spoke about this yesterday, but it bears repeating. The bigger story was the temporary liquidity crisis in overnight funding that saw the shortest term rates briefly spike to ten percent and necessitated the Fed’s intervention to the tune of $300 billion for the week. A confluence of technical factors such as an increase in federal borrowing as well as a shrinking of the federal reserve balance sheet which removed money from the financial system was given as the reason for the shortfall in liquidity.

In response, the Fed may consider increasing excess bank reserves by, once again, purchasing Treasury bonds as early as the next FOMC meeting in October. Last week’s intervention marked the first time since 2008 that the New York Fed had to intervene in money markets.

Elsewhere, housing data was positive heading into the fall as existing home sales were up 1.3 percent in August and housing starts were up 12.3 percent. Industrial production increased 0.6 percent after declining 0.1 percent in July. While parts of the economy remain in positive territory, uncertainty in other areas as well as internationally have many believing the Fed may lower rates once more before the end of the year.

All the impeachment talk emerging from Washington D.C. certainly had an impact on U.S. Treasuries yesterday, with rallies across the curve that helped Treasuries in reclaiming roughly half of their losses from Wednesday. The 10-year yield ended the day closing -5 bps to 1.69 percent. Aiding that move was a note from Morgan Stanley which forecast that the Fed will buy $315 billion worth of Treasuries over six months beginning in November. The day’s $32 billion 7-year Treasury note auction was met with strong demand. And the third estimate for Q2 GDP showed no change from the second estimate, with GDP increasing at an annualized rate of 2.0 percent – a long way from a recession.

 

In Fed-related events, Fed Vice Chair Clarida said that policymakers need to question whether the central bank should try to make up for past inflation shortfalls, as current inflation expectations are consistent with the Fed’s mandate and that rising wages are not causing higher inflation. Across the Pacific, the Bank of Japan reduced its purchases of short-term JGBs for the fourth time in six weeks in an effort to steepen the country’s yield curve. The European Central Bank’s released an economic bulletin projecting an increase in underlying inflation over the medium term while the eurozone’s aggregate fiscal stance is expected to be slightly expansionary. Banxico lowered its target rate by 25 bps to 7.75 percent, as expected.

Today’s busy U.S. economic calendar is already underway, with August Personal Income & Spending (+.4%, +.1%), August Core PCE Price Index (+.1%), August Durable Orders (+.2%), and August Durable Orders -ex transportation (+.5%). Later this morning sees the release of the Final September Michigan Consumer Sentiment Index. There are also two Fed speakers: Governor Quarles and Philadelphia’s Harker. Additionally, the NY Fed will release a new MBS FedTrade schedule covering the September 30 to October 11 period that is expected to total $3.2 billion. We begin the day with Agency MBS prices worse a shade and the 10-year yielding 1.71%.

A little boy is lying in bed, busting to go to the toilet.

So he gets out of bed, runs downstairs into the living room, and finds his mother chatting with a bunch of her friends.

“MOM,” the boy yells at the top of his voice, “I GOTTA PEE! I GOTTA PEE!”

Well, needless to say, the mother is mortified and scolds the young boy. “Dominic, we do NOT shout that kind of language in front of mommy’s guests! Next time, just say ‘whisper’, okay?”

The little boy nods sheepishly. His mom takes him to the bathroom and tucks him back into bed.

The next night, little Dominic is busting to go to the toilet again.

So he gets out of bed, runs downstairs into the living room, and there is his mother, having a glass of wine with her friends.

“Mom! I gotta whisper, I gotta whisper!”

His mother excuses herself and takes Dominic to the bathroom, smiling at her son’s innocent mistake, but relieved that he was at least more discreet than last time. She takes Dominic back upstairs and tucks him into bed. “Well done, sweetie,” she says, kissing him goodnight, “That was more polite.”

A few nights go by and the little boy is busting to go to the toilet again.

So he gets out of bed, runs downstairs into the living room, and there is his dad watching TV.

“Dad!” Dominic says softly, “I gotta whisper, I gotta whisper!”

“Aw, is that so, little buddy?” says dad, his eyes fixed on the television. “Come on over here and whisper in daddy’s ear.”

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.

Rob

(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.)

Rob Chrisman