Today's audio version of the commentary is always available. (This week’s, sponsored by The STRATMOR Group, has a short interview with me today on how people in the residential lending business continue to learn, and about events and conferences. Can you believe its been a year since we all learned about the Tiger King?) But folks sometimes ask what my morning routine is when sending out this written Commentary. I reply, “Well, first I put on little black stretchy pants…” and they quickly lose interest. Others ask, “What is the best way to solve 70+ million people in their 20s and 30s with lots of savings, many working from home, and wanting to buy a house, competing with several huge corporations buying up inventory to rent those houses out?” And all the while builders are building about 1.5 million units a year. I don’t know if ADUs (Accessory Dwelling Units) are the answer, but Los Angeles is giving it a shot. (It helps to have one-day approval wait times.) While it is unknown whether the current strength in housing represents a long-term shift or could revert, low supply, strong sentiment, and demographics will provide a positive environment for homebuilders (and SFR REITs).
Lender and Broker Services and Products
Intelligent Automation is changing the way lenders do business, and not just for the biggest firms. Nearly any size firm can implement this game-changing technology to drive down the cost to originate and improve cycle times. Richey May has onboarded and begun working with multiple clients on high-ROI automation projects. More than just robotic process automation (RPA), intelligent automation leverages artificial intelligence and advanced decisioning to allow companies to completely reimagine the entire loan manufacturing process. This leaves your employees free to deal with more complex, challenging, and revenue-generating tasks. As technology transforms the business with new efficiencies, don’t get left behind. Contact us today for a personalized demo of Richey May’s intelligent automation platform and services.
The big question is where mortgage rates are going to land this year. Rates are on the rise, higher than we’ve seen in the last several months, but according to forecasts from industry prognosticators, 2021 is still going to average in ‘historic low’ territory at 3.07%. With any market, high or low, lenders focus on how to expedite the origination process and reduce overall costs, all while maintaining superior customer service. An expert fulfillment partner is the answer. The team at Computershare Loan Services (CLS) is staffed with highly trained, experienced processors, underwriters and closers ready to jump in and take the overhead burdens that keep lenders up at night. Boom or downturn, CLS manages the staffing through a dedicated team and provides the data security lenders need all in a closed loan model platform to reduce fixed costs. Partner with CLS and help your borrowers get to the closing table on time. In any market.
“Introducing the Freedom Mortgage Wholesale Division’s Big Spring Purchase Tee Off! Offer a hole in one experience with every new Conventional, VA, and FHA purchase! Enjoy 48-hour Priority Purchase Underwriting and a (.250) LLPA incentive for all Conventional, VA, and FHA purchases. To learn more, check out our rate sheet or email us to have an Account Executive contact you.”
It can be tough out there to find a subservicer who is going to service your borrowers as well as you. Any poor experience compared to what they’re used to can be the difference between having a happy borrower, or one that holds it against YOU. So, what did TMS do to when it couldn’t find the perfect subservicing partner? TMS became one. And became a Top 10 subservicer who does it right. For great customer care, look no further than TMS Subservicing.
“Look at the opportunity cost you have by not having Sales Boomerang. Last year we closed over $72M in loans that we would have lost from not having Sale Boomerang.” (Stephen Barton, EVP, Eustis Mortgage) “In the first 4 months we took in $180M in applications and we have about 100 LOs. That is a significant impact to our business. My top performing LO attributes 25% of her business to Sales Boomerang alerts.” (Katherine Campbell, CMO, Assurance Financial) The numbers speak for themselves: 20x Avg. ROI, $240 Avg Cost Per Acquired Loan, 10-20% Avg Lift to Loan Volume. Schedule a demo today!
Training and Events Through April
And yes, the MBA announced its October Annual Conference will be “in person” in San Diego. But you can also register for MBA Education's weekly digest of online offerings: The QM Delay and What To Do Now on March 30th Register. Mortgage Accounting Part IV: Hedge Accounting and GAAP Reporting on March 31st Register.
MGIC offers complimentary webinars every month to help customers succeed in today’s mortgage insurance industry: mgic.com/training. For example, MGIC is offering “Your Charisma Counts! Improve Your Presence and Communication Skills Virtually and Beyond”, on April 22 featuring Katrina Cravy, former award-winning TV journalist and co-founder of CharismaQ. To help you discover the six components of true charisma, create a great first impression by improving your "look and sound" with proven TV techniques, and find the bigger YOU to connect and inspire your colleagues and customers.
Read Arch MI’s latest insights: Discover five strategies for maximizing C2P originations during the spring and summer building season on its Industry Blog.
MBA of Greater Philadelphia’s Best Practices For Recruiting Loan Officers Webinar on April 1st will provide the game plan to win in the recruiting wars with a three-part strategy.
Join Plaza Home Mortgage® for its renovation lending series designed to expand your knowledge of the various renovation products available through Plaza. Session 1: An Introduction to Renovation Loan Programs on Friday April 2, 11:00 AM PT. Session 2: Selling Renovation Loans on Friday April 9, 11:00 AM PT. Session 3: Renovation Operational Overview on Friday April 16, 11:00 AM PT.
CMLA's Annual Mortgage Lenders Expo is back set to take place through a virtual experience on April 7-8.
Friday the 9th is the Mortgage Collaborative’s Rundown with Rich and Rob. Rich Swerbinsky, the COO of The Mortgage Collaborative, and I will be discussing current events in the mortgage market for 30 minutes starting at noon PT: “The Rundown with Rob and Rich.”
OriginatorTech, a joint production of OCN and NMP, is a rapid-fire, deep dive into the tools the best originators are using to close more loans. The April 13th edition of OriginatorTech will feature: Blueprint, Capacity, Mortgage Cadence, Sales Boomerang and Zenly by Calyx. Reserve your spot today.
Attend MMLA’s April 15th virtual Sales Symposium to hear the fabled Victoria Deluce dissect the latest news on Secondary Marketing. Also due up are at this virtual event are Josh Pitts, Kristin Messerli and more. Get the motivation and information you need to for the Spring/Summer Sales Season.
WMBA’s April Event, Top Producers Panel, is coming up on April 20th. Panelists include Jay Crowell, Sr. Vice President, Regional Sales Manager of Cornerstone Home Lending, Inc.
Allie Lord, VP & Branch Manager, Caliber Home Loans, and Jordan Flowers, VP & Branch Manager at Guild Mortgage. (On May 6th is a session on Condo Construction.)
Register for the MIAC Live Webinar on Thursday, April 22nd to learn how to navigate the MSR market in this rising rate environment.
Last week lenders took not that home sale data from February was disappointing as existing home sales fell over 6 percent and new home sales dropped 18 percent. While some of the decline was expected due to macro reasons around supply and severe weather the declines were more than forecast. While rising mortgage rates and home prices are a concern heading into the spring, expectations around the full reopening of the economy and the accompanying job gains are expected to offset those anxieties. Expectations remain high that increased vaccinations combined with the most recent fiscal stimulus will help those in high contact parts of the economy who have been displaced long term recover this spring and summer as those sectors reopen.
Turning to the bond market, which determine interest rates, Treasuries pulled back to close last week while the MBS basis widened after tightening most of the week. Economic data on the day Friday was close to expectations as personal income contracted in February due to lower transfer payments while the final University of Michigan Consumer Sentiment survey showed a small uptick to a one-year high. While we’re on the subject of last week, the index of consumer prices that the Federal Reserve officially uses for its inflation target rose 1.6 percent in February from a year earlier, the biggest gain in a year as energy costs increased. The core price index, which excludes more-volatile food and energy costs, was actually slightly below January’s 1.5 percent gain. Both those saying inflation is coming and those saying the Fed couldn’t even get inflation up when it had full employment and a booming economy have things they can pull from the report.
Unlike last week, which was full of Fed speakers and supply, this week is data-heavy, including the March payrolls report on Good Friday, We’ll also receive the latest consumer confidence, ADP, Chicago PMI, pending home sales, ISM manufacturing and construction spending figures. Despite all that, the week gets off to a slow start with just Dallas Fed Texas manufacturing and one Fed speaker, Fed Governor Waller, today. Today’s MBS purchase schedule sees the Desk purchasing $5.3 billion 2 percent and 2.5 percent starting with $1.96 billion GNIIs followed by $3.29 billion UMBS30s. We begin the last week of the first quarter with Agency MBS prices up/better by .125 and the 10-year yielding 1.65 after closing last week at 1.66 percent.
“New Year, fresh start! Are you an experienced Wholesale Account Executive wanting to make a change? Looking for a company with an entrepreneurial mortgage culture of collaboration, team-based success, and the security of working for a bank? Then it’s time to call FLCBank’s Bob Eisendrath, Strategic National Account Manager (414.350.3986). FLCBank is agency approved and has a suite of bank jumbo products along with IO options on both conventional and jumbo loan balances. Additionally, you have access to offering warehouse lines to your non-delegated clients. Come join our bank and have fun again with a team environment where everyone is passionate about delivering an exceptional customer experience with every loan. Open territories are GA, TN, AL, NC/SC, VA, MA, IL, OH, MI, AZ, TX, and CO. We offer competitive compensation, an energized culture, and an experienced operations & support staff. FLCBank is an Equal Opportunity/Affirmative Action Employer.”
Two hour underwriting turn-times! Recently named a Top 10 Large Mortgage Company to Work For by National Mortgage News, Geneva Financial Home Loans is filling Branch Manager and Loan Officer positions in 44 states. With in-house operations, Division Manager Breton Macdonald is actively delivering 2-hour UW turn-times with purchase transactions closing in as fast as 10 days and is looking for Branches and LOs to replicate the model nationwide. Pair the operations speed with GenevaGO Human Friendly Homebuying™ Mobile Mortgage App and highly competitive rates and Geneva and you’ll be closing your deals rapidly while getting paid 175+ BPS! Geneva was also recently named the #1 Mortgage Lender by consumers in Arizona, home of its corporate office, on the annual Ranking Arizona Consumer Poll of Best Businesses. Explore Branch and Originator opportunities.
“Caliber Home Loans sets the gold standard for preparing our incoming loan originators for a fruitful career with our Power Up onboarding program. We make sure that new hires are ready on day one of their journey with Caliber. Loan consultants will learn about H2O (our loan origination system), products, resources, marketing and so much more. We want the transition to Caliber to be a smooth, fun, and meaningful experience with no delays in business. Don’t just take our word for it. Our video testimonials like this one from loan consultant Rick Davis speak for themselves. Why work anywhere else? Caliber is the obvious choice. Join a lender that cares about giving our loan originators the best odds for success.” To be immediately considered for a sales position, email Brian Miller.