Sometimes running a mortgage compliance department can seem like this short clip Indiana’s Carol K. sent along. Yet there is value in compliance, and it is good that lenders and servicers are much more cognizant of rules and regulations than we were 12-14 years ago, along with requiring that borrowers have the ability to repay a loan. President-elect Joe Biden will nominate Rohit Chopra to be the next director of the Consumer Financial Protection Bureau. He is a strong consumer advocate, aligned with Senator Elizabeth Warren, lifelong friend of banks everywhere. (Snort.) There is value provided to consumers by the CFPB, and we’ll see a lot of that in the next four years. Individuals and companies are hard at work finding value out there, whether it is uncovering borrowers with high rates to refinance or investment banks finding value in companies, like JPMorgan providing a $100M financing facility for blockchain mortgage platform Figure. Value, value, value.
Lender Services and Products
2020 flipped the mortgage industry upside down, but it didn’t come without a new perspective on the customer experience. Total Expert, creator of the first Experience Platform purpose-built for financial services, was recognized for its innovation in the fintech space. The bigger story is what this means for mortgage lenders and the communities they serve. “Recognition for growth is always welcome,” said Total Expert Founder and CEO Joe Welu. “But what motivates us to keep at it day after day is the impact that growth has on our customers and their customers, the people using financial services products.” Read more on Total Expert’s growth and how it is reimagining the customer experience.
Everyone is always looking for ways to squeeze every dollar out of each loan transaction. If this is the reality for you, it’s well worth your time to check out Capital Markets Cooperative (CMC). Since 2003, IMBs, credit unions and financial institutions have tapped into CMC’s platform of carefully-selected service providers to discover unique products that boost their business and access prioritized service and improved pricing on commonly-used mortgage services. CMC does the hard work for you and uncovers those gems with best-in-class services. Within the last 6 months, CMC has added a whole slew of first-class partners to round out its roster. Not to name drop but here are a few to chew on… Easy Mortgage Apps, Richey May, MAXEX, Moxie, Verity Search, Indecomm, Sportsdigita, and Home Captain. Learn more at www.capmkts.org or connect with Richard Dybel.
Northpointe Bank Correspondent Lending recently launched its Streamline Jumbo Fixed & ARM program, with loan amounts up to $3,000,000, loan-to-value up to 85% and no mortgage insurance requirements. The Streamline Jumbo program includes cash out refinances with LTVs up to 80%; closely follows automated underwriting guidelines; and is available in 30-, 15-year fixed and ARM terms. Approved Northpointe Bank clients have access to best effort and mandatory delivery options, third-party origination and the program is eligible in all 50 states and the District of Columbia. Northpointe Bank provides tailored solutions to maximize your profitably and help grow your business. View program details for more information or email us at firstname.lastname@example.org.
LoanCraft continues to enhance its income calculation service for self-employed borrowers through a collaboration with Freddie Mac. Income calculations with LoanCraft reports are now eligible for representation and warranty relief through an integration with Loan Product Advisor® asset and income modeler (AIM). LoanCraft’s unique full-service approach utilizing OCR technology combined with its data capture and QC team is picking up pace in the market. With little to no time needed for set up or training, the service is being deployed to reduce the burden on precious underwriting resources. LoanCraft’s approach also allows it to respond quickly to the changing requirements facing lenders such as P&L and bank statement analysis. Just upload documents via its portal or through Encompass, and LoanCraft will return a completed analysis in 4 hours or less. To learn more about the benefit of having LoanCraft on your team, email Dominic Spadafore or visit loancraft.net to get started.
SimpleNexus has gone virtual with its annual user conference, SNUG. Taking place February 22-24, the event offers three tracks of content tailored for loan officers, mortgage executives and technology administrators. Attendees can even submit a question to Shark Tank’s Daymond John. The FUBU founder, businessman and TV personality will join SimpleNexus CEO Matt Hansen for a live coffee talk on February 24. Click here to register and submit your question to “The People’s Shark”!
The Mortgage Origination Checklist Manifesto could have been the name of a best-selling industry book. Perhaps it still needs to be written. From LOs and LOAs to Processors and Underwriters, everyone uses checklists to make sure things gets done right. Checklists are easy to create, easy to understand, and easy to use but are often created for one person's needs and do little to enable the whole origination team to work together more efficiently. Now imagine an online, ultra-productive, collaborative checklist that coordinates every step of the process for every origination team member and integrates with your CRM+POS+LOS. That’s what this division of American Pacific Mortgage did with TeamworkIQ. The results? After a quick 3-day implementation, efficiency jumped so much that 4x the loan got closed and revenues grew 280%. See the case study and test-drive a customized, actionable, online, collaborative lead-to-loan checklist for free.
CFPB in the News
Everyone in our business has a front seat to the continued romantic drama comedy playing out between regulators and politicians. Lenders have much less “to be afraid of” now, compared to things 12-14 years ago, and I hear much less about lenders skirting regulations than I did in the past and the CFPB has done a better job of education. Certainly the CFPB has other industries to look at besides mortgage.
Regarding the CFPB’s nominee, and who he aligns with, Sen. Elizabeth Warren, though she will never admit it, and her followers, dislike or disdain the big banks and large mortgage banks, yet push for more rules and regulations which favor large institutions at the expense of smaller companies that don’t have extensive compliance departments. The banks will complain out of one side of their mouth about all the regulation, and the resources it will take to comply, yet regulators need to be cognizant that the cost is primarily passed along to the consumer. Smaller existing lenders, knowing the cost of entry and competition, may be once again priced out of the market. And then more frustration sets in with the lawmakers as the market share consolidates to the strong.
Isaac Boltansky with Compass Point Research and Trading weighed in on the nomination’s impact on the CFPB. “We should expect a renewed focus on enforcement, a reopening of the small dollar rule, and persistent headline pressure for the education finance industry. The CFPB will be more active on all fronts including rulemaking, supervision, and enforcement.”
Attorney Brian Levy had this to say about the suspected CFPB nomination news. “With a few notable exceptions, Biden’s agency and cabinet picks have largely been center left moderates and I would put the Wharton MBA trained former McKinsey consultant, Mr. Chopra, in the same category. That isn’t to say that we shouldn’t expect more aggressive enforcement and regulation than under the CFPB’s leadership of Director Kraninger, but, other than perhaps in fair lending where perhaps it has always been the case, I wouldn’t expect a return to the Richard Cordray era of ‘regulation by enforcement.’ Mr. Chopra is a strong consumer advocate and has experience with the CFPB that will allow him to hit the ground running were he to be confirmed, so I also expect that he will set whatever new tone the agency will have very early in his tenure.”
Just because you’re out of business doesn’t mean that the CFPB can’t go after you. The CFPB is suing 1st Alliance Lending, LLC, alleging that the company engaged in unlawful mortgage lending practices. The acronyms are flying, but violating the Truth in Lending Act (TILA), the Fair Credit Reporting Act (FCRA), the Equal Credit Opportunity Act (ECOA), the Mortgage Acts and Practices—Advertising Rule (MAP Rule), and the Consumer Financial Protection Act of 2010 (CFPA), were all mentioned.
Training and Events This Week
Attention all credit unions! Are you looking for techniques to better engage with prospective and current members during this unique time? Or maybe you are just getting started on defining your credit union’s social media approach? Consider joining ACUMA and seasoned industry experts for a highly informative webinar, "Laying a Solid Foundation for a Successful Social Media Approach," on Wednesday, January 20, at 11AM CT. During this webinar, attendees will learn what to consider when evaluating and executing a risk management assessment program geared toward social media success, techniques and best practices that successful credit union lenders have deployed to create and maintain a consistent online brand, and the benefits of an all-in-one solution to confidently communicate online, help manage reputational risk, and ultimately—enhance the member experience. Register now.
Jumbos are back at Mountain West Financial. Register for the Wednesday, January 20th Webinar as MAXEX Director, Keith Polk, discusses the new MAXEX Jumbo Program.
What lies ahead for the mortgage industry in 2021? It's important for originators and lenders to keep the constant stream of news in context in order to know how to best help their clients. Join MMG Chief Market Analyst Bill Bodnar and me for the Industry Outlook 2021 webinar on Wednesday, January 20th at 2:00 p.m. ET, as we discuss some of the “big picture” industry topics for the year ahead.
MMLA’s 2021 Market Forecast Webinar is on January 21st. Steve Richman, Genworth's That MI Guy, will discuss the 2021 market forecast and Sandi Frith, $200 million producing LO, will discuss tips on how to improve sales in 2021.
Arch MI is offering some lessons on sales training hosted by the fabled Ginger Bell on Thursday the 21st at 11AM PT.
Orion Lending is proud to announce the HyperTrackTM Broker Training Program. The curriculum provides an educational forum for approved and prospective Broker Partners who are looking to stay current on Orion Products, Technology, Marketing and so much MORE! The first HyperTrackTM Training is on the Jumbo AUS Product and is taking place on Thursday, January 21. With over $300 MIL locked since product launch less than 90 days ago, it’s time to find out what the buzz is all about! Click here to attend the upcoming training. (Not approved with Orion Lending? Click Here to get approved today and start submitting loans by the end of the day!) You’re Not Just Another Broker. We’re Not Just Another Lender.
Register for Carrington Correspondent’s January 21st webinar, Non-QM 101: Qualifying self-employed borrowers with bank statements.
On the 22nd at 1:30 ET Diehl Mortgage Training and Compliance has Marianne Collins, President of the Underwriting Training Division of Diehl Mortgage Training and Compliance, in a 1-hour FHA-specific webinar to review the relevant changes in the Origination Through Post Closing/Endorsement section of the handbook, and discuss their impacts.
December’s decline in retail sales disappointed analysts and brought attention once again to the state of the consumer amid a spike in coronavirus cases. This is despite sales being 2.9 percent above December 2020’s levels. Optimism for a stronger pace of consumption as more of the population receives the coronavirus vaccine and the anticipated inflationary pressure had led to talk of the Fed potentially tightening monetary policy sooner than expected. Fed officials, however, pushed back over the past week on the topics of both tightening monetary policy and tapering their bond purchases. Fed Chair Powell said the Fed would “let the world know” prior to embarking on that process. But the markets did over-react the last time the Fed began to taper their bond purchases. For the time being, inflation remains tame and well below the Fed’s target and the labor market has significant ground to make up as well. The recent wave of COVID cases is weighing on labor markets as well as margins as many small businesses as many consumers exercise caution in spending as well as social activities.
This holiday-shortened week is relatively light on data and Fedspeak as the FOMC heads into the blackout period ahead of next week’s Fed events. On the data front, this week’s releases include some housing data as well as preliminary January readings on Markit PMIs. Kicking off today’s calendar is Treasury Secretary-nominee Yellen’s confirmation hearing before the Senate Finance Committee. Later this afternoon brings November TIC data from the Treasury. With U.S. markets reopened, the Desk of the NY Fed on behalf of the Federal Reserve will conduct just two operations, purchasing up to $4.8 billion MBS. Today is also Class C 48-hours (Class D is Friday). We begin the day with Agency MBS prices down/worse a few 32nds and the 10-year yielding 1.10 after closing last week at 1.09 percent.
A well-capitalized, start-up correspondent investor is seeking a Chief Information Officer. This is a unique opportunity for a seasoned technology professional to help build an exclusive correspondent company from the ground up. The candidate should have 3+ years of in-depth technical experience with Encompass LOS platform, a working knowledge of building APIs and leveraging BOTS to build various integrations/automation and a general knowledge about information security requirements. Duties will include working with our Clients & Vendor partners to establish APIs, directing all technology initiatives, designing & completing business continuity & disaster recovery protocols as well as information security policies & procedures. Experience with Agency approval, from a technology requirement standpoint, is a plus. Ability to effectively manage a remote team, build all department policies and workflows as well as show demonstrated organizational skills are a must. Must be able to work from the USVIs at least 50% of the time; relocation allowance included. Interested parties should send their confidential resume to Chrisman LLC’s Anjelica Nixt for forwarding.
“Finance of America Mortgage TPO is expanding market share and adding AEs to the FAM-ily. If you are looking for an environment committed to helping you take your business to the next level as a TPO, Non-Del, or Delegated Correspondent Account Executive, contact R.J. Arnett, SVP, National Sales Manager TPO, today! Finance of America Mortgage TPO is ALL IN with our partners and committed to supporting relationships that last a lifetime. Our PEOPLE, PROCESS, and PRODUCTS lay the foundation of success across TPO, Non-Del and Correspondent. At FAM TPO our partners are FAM-ily! And our distributed Account Executives are equipped to cater to their needs with a wide array of products, customer service and pricing that people have come to expect from Finance of America Mortgage TPO.”