Loan officers everywhere tell me about “The Bank of Mom and Dad” helping buy homes, either through gifts or co-signing, helping overcome that down payment hurdle. Investing money is often a probability game. Did you know that one of Germany’s richest families, through JAB Holding Company, owns a controlling stake in Krispy Kreme Doughnuts, Peet’s Coffee & Tea, Caribou Coffee, and Panera Bread? (Unfortunately the family’s ancestors were staunch supporters of Adolf Hitler and extensively used forced labor. And you think you have problems!) There is a lot of money moving around and investing in our biz - more below.


Lender Products and Services

With the GSFA Platinum® down payment assistance (DPA) program provided by Golden State Finance Authority (GSFA), eligible borrowers can receive up to 5% DPA, in the form of either a Gift or a 0% interest rate Second Mortgage forgiven after three years. The program is available to both first-time homebuyers as well as repeat or returning homebuyers purchasing a primary residence in California. The income limits are very flexible, allowing for both low- and moderate-income borrowers to qualify. FHA, VA, USDA and Conventional financing is available and the DPA can be used for down payment, closing costs or principal reduction. Plus, GSFA delegates underwriting to the Participating Lender so no additional compliance review step is necessary, making the process simple and easy for both borrower and Lender. GSFA has helped over 75,000 individuals and families purchase homes. For more information or to become a Participating Lender, email info@gsfahome.org, call toll-free (855) 740-8422 or visit www.gsfahome.org.

Unlock opportunity in a growing market with Loan Product Advisor® asset and income modeler (AIM) for self-employed borrowers. AIM for self-employed is Freddie Mac’s solution to automate the manual lender process of assessing borrower income using tax return data. It’s also the industry’s only AUS-integrated self-employed borrower income calculation solution. AIM for self-employed makes it easier to do more business, close loans faster and get immediate income rep and warranty relief related to certain borrower employment income. Freddie Mac has teamed up with third-party service provider, LoanBeam®, in leveraging their expertise and powerful optical character recognition (OCR) technology to supply qualifying income for any applicant. Freddie Mac’s broad release of AIM for self-employed on March 6 is the next step in their journey to provide  AIM for self-employed borrowers … and get YOUR edge.

Want to Increase Realtor Referrals? In today’s market, it’s more important than ever for Mortgage Companies and Loan Officers to grow their purchase business. One key to closing more Purchase loans is by building relationships with Real Estate Agents. Let LendingTree help. LendingTree has created a way for you to target consumers who are looking to buy a home, but do not yet have an agent. To drive incremental originations and scale your business contact LendingTree at nls@lendingtree.com.

Roughly six out of 10 first-time home buyers are millennials, and the millennial generation is expected to form 20 million new households by 2025. Millennials are changing the market faster than we even realize, and the lenders who will lead the industry in the years and decades to come will be those who can empathize with the mil­lennial plight and tailor the mortgage process to their unique preferences. But where to start? A new eBook, “The Millennial Playbook” lays out the financial implications and plan for lenders to win with the generation that makes up the largest market for new homebuyers today. A must-read for all mortgage leaders and their teams, and an exclusive to Rob Chrisman subscribers today, download your complimentary copy here.  

“As a mortgage broker, time is your biggest asset. Everyone has the same amount of it, but how you use it can be the game changer. If you can streamline your process, with the help of the lenders you work with, your clients are more likely to close on time – and you will have more repeat business from both your clients and their agents. Quicken Loans Mortgage Services (QLMS) just released a tool that can eliminate almost two weeks out of the process for condos. They have a condo approval database that complies every condo that they’ve already approved, so you won’t need to submit a condo questionnaire or apply for a second approval. As an added bonus, your client will not have to pay a condo approval fee, like they would with lenders who have not previously approved the condo. This new tool can set you apart from the others in your area when clients are looking for the broker that can provide the most value. Talk to your QLMS account executive to learn about the approved condos in your area. If you're not working with QLMS yet, you can connect through QLmortgageservices.com to learn about how QLMS can help you reach your clients.”


Investing in the Mortgage Industry

There are different ways to invest in financial services and lending. One is the blood, toil, and sweat of everyone from owners to summer interns. Another way is through venture capital, or money raising efforts. For example, Figure issued a press release on provenance.io – its capital raise, the release of the white paper, and its Blockchain Innovator of the Year award.

Another example is Tradeweb aiming for $5.8bn valuation in upcoming IPO. PennyMac recently announced the pricing of $295 million term notes maturing in March 2022 to fund a portion of its $1.3 billion in CRT investments. The notes carry a coupon of 1M Libor + 200 bps, and there is a two-year extension option out to 2024. The financing is being done at roughly a 75% advance rate. Historically the company has financed its CRT with short-dated repo at roughly the same coupon.

The Mortgage Bankers Association (MBA) announced a $2 million investment in MISMO®.

Freedom Mortgage plans to issue $250 million worth of unsecured five-year paper expected to cost 10.75%. (Four years ago, Quicken raised $1.25 billion of corporate debt through a private placement, selling 10-year bonds at a yield of 5.75%. It is believed to be one of the largest bond issuances of the decade for a nonbank mortgage. This week Dan Gilbert stepped in to defend Quicken and its debt.) Fitch said it expects to assign a B+ rating to Freedom’s debt. “Pro forma, for this issuance, unsecured debt to total debt is expected to increase to 26% from 22%, as of Dec. 31, 2018. Fitch views the increase in the percentage of unsecured debt favorably, as it enhances balance sheet flexibility in times of stress.” “Leverage is expected to remain relatively stable as a result of this issuance, as proceeds will be used to repay existing secured indebtedness and for general corporate purposes...”

Here’s your chance to back online fix-and-flip home lender LendingHome as it has priced its first syndicated securitization facility after selling $219 million of notes backed by a pool of fixed-and-flip mortgages. Eikon reports that the structure has a weighted average coupon of around 4.8%, and the underlying mortgages carry interest in the low-to-mid 9% area, on an annualized basis, according to the firm. "For our company, this securitization means we can lower our cost of capital, diversify our investor base, and provide our borrowers with competitive pricing and service enhancements," said Matt Humphrey, co-founder and CEO of LendingHome. The two-year revolving period allows the firm to top up the collateral pool with new loans, which typically pay off within seven months, the firm said. LendingHome was launched in 2014 and has funded over $3.5 billion in mortgage loans since then.

In more news in the secondary markets, PIMCO issued its first non-QM mortgage bond offering with a $382.45 million deal containing older loans originated by Capital One.


Events and Training

For anyone interested in HELOCs, Figure Technologies, making inroads with

Provenance.io, the blockchain platform it built last year, will be at the IMN MSR conference next week in NYC. Lenders or investors interested in learning more about Provenance, a permissioned, proof-of-stake protocol that acts as a global ledger, registry and exchange across assets and markets currently being used for originating, financing, and selling HELOCs, should contact Colin Luce to set up a meeting. Their team will also be available to discuss partnership opportunities for their unique HELOC product as well.

Don’t miss out on this opportunity to network with other top loan originators and hear from top mortgages professionals across the real estate finance industry at the National Association of Minority Mortgage Bankers of America’s CONNECT 2019 conference. The power-packed conference conquers key topics the industry is facing this year and starts much-needed conversations in this space. Stay in front of the current changes in the market by registering HERE for CONNECT 19 in Atlanta from April 24 through April 27 for more information.

The Great River MBA conference is next week at the Peabody in Memphis.

Register now for any of the ARCH MI April sessions. Analyzing Appraisals for Single-Family Residences Identifying the Key Areas of the Uniform Residential Appraisal Report. Conquer the Components Understanding the Aspects of a Loan File. Loan Processing Using the 1003 as a Roadmap. Master the Mystery Navigating and Evaluating Personal Tax Returns. Mortgage Fraud Everything Old is New Again. Negotiate the Numbers The Basics of Business Tax Returns and Self-Employed Borrowers. Negotiate the Numbers Applied

Plaza Wholesale now offers a One-Time Close Construction-to-Permanent loan program that allows for the financing of the lot purchase, construction costs and permanent loan in a single mortgage. Register for a live webinar on Wednesday, April 17th to learn more.

AIME is offering a Mortgage Expert Workshop in Ft. Lauderdale on Wednesday, April 17 from 7:30am-530pm.

Get certified to offer the Unison Down Payment Option on the Ruby Jumbo with PRMG’s April 18th webinar.

Register for the Mortgage Technology & Marketing Committee (MTAM) April 18th webinar and learn How Day1Certainty is Giving Rise to a New Super Class of Loan Officers Across the Country.

In Colorado CoAMP is hosting a luncheon with Rob Chrisman on Friday, April 19th from 11:00-1:00. Registration deadline is today. Sponsorship opportunities should be addressed to Cathy Brogan at PRMG (303.333.7333).

James Brody, Chair of Johnston Thomas's Mortgage Banking Practice Group, is hosting a complimentary webinar at 10:30 AM PST, on April 18, titled “Annual Regulatory Round-up: Invaluable Tips for Maintaining Compliance in 2019 and Beyond”.

The MBA of Greater Philadelphia Annual Past President’s Dinner will be April 25th and highlights me, Rob Chrisman, as a Keynote Speaker. This is a great networking opportunity as it is generally attended by senior executives at various companies.


Capital Markets

It’s not like inflation is a big worry, but any rate rally from earlier in the week was squashed yesterday as “hotter than expected” March PPI and core PPI nudged rates higher. There was a wave of selling after the completion of the day's $16 billion 30-year bond reopening, which was met with mediocre demand. We did have some Fed news on the day as St. Louis Fed President James Bullard said policy normalization ended at the March FOMC meeting and that the inflation target is likely to be missed once again this year. Fed Vice Chair Richard Clarida said that even though the U.S. economy is slowing, he is almost certain the current expansion will become the longest on record. Finally, Herman Cain is unlikely to have enough support to be confirmed to the Federal Reserve's Board of Governors after a fourth Republican Senator indicated he would vote against Mr. Cain's nomination.

Today's calendar kicked off with March import and export prices (+.6% and +.7%, stronger than expected). The University of Michigan Consumer Sentiment Index is the only other U.S. economic release. The Spring IMF / World Bank meetings will also continue in Washington DC and carry on into the weekend. We begin today with agency MBS prices worse .125-.250 and the 10-year yielding 2.55%.


Employment, Business Opportunities, and Transitions

Xceed Financial Credit Union, a full service, nationwide financial institution, is seeking a Regional Sales Manager to increase its mortgage sales and membership in the Rochester, New York market. “We are looking for a talented sales manager with significant mortgage sales background who is knowledgeable in all banking products and who can mentor a team to be active in the community and network to increase relationship business. We are growing and desire a strong sales leader who is motivated. Named a “Best Credit Union to Work For” for five years running, Xceed offers an excellent compensation and benefits package. Learn more here or contact Todd Helmerson, Chief Sales Officer, for questions. To contact HR, email Joanna Aldada . To submit a resume click this link to apply.

Attention FinTech investors and investment bankers. A mature, profitable, and well-adopted Mortgage technology (Sales Automation/CRM) firm, is seeking to raise $10M+

for rapid expansion purposes across banking and mortgage verticals to enhance the sales and prospecting capabilities of mortgage loan officers. Serious and interested investors may inquire by contacting Anjelica Nixt to begin a confidential discussion. Mortgage technology document management firms, private mortgage insurance, and institutional or private sources of capital are encouraged.

GSF Mortgage Corporation recently attended the Power Originator Summit. Chad Jampedro, President of GSF Mortgage Corporation, spoke on the advantages of Single Close Construction loan over traditional construction loans: http://bit.ly/singlecloseconstruction. GSF Mortgage Corporation is looking for Originators with experience in construction lending to help meet the demand of our Builder Partners. Programs offered are FHA-96.5% LTV, USDA-100% LTV, VA-100% LTV, and the recently added Conventional to 95% LTV. All programs are a single settlement without the need to requalify the borrower after initial closing. If you are an Originator with construction experience, please contact GSF’s VP of Retail, Frank Papaleo, for information on the opportunity.

ServiceLink announced that Tim Gillis has joined the company as VP of Capital Market Sales. “His extensive contacts and knowledge within the Capital Markets and Single-Family Rental space add additional depth to our Default Sales team,” said Miriam Moore, ServiceLink Division President, Default Services.

Mid America Mortgage, Inc. has hired Kerry Webb as Executive Managing Director of Business Development, responsible for recruiting, managing and motivating teams of mortgage professionals as well as executing and delivering the company's digital online mortgage experience via its proprietary platform Click n' Close.