Lots in the news. Congratulations to the California MBA (and the MBA and lenders everywhere, since nearly 25% of residential loans come from California) which made news by being victorious in defeating AB 2501. Kansas has added Alabama to its quarantine list (Alabama’s hospitals are at maximum capacity). These days, there are hundreds of news channels going 24 hours a day, not to mention social media, which slice and dices every utterance and event within moments. It always hasn’t been that way, and today we are reminded of how long it took news to travel in the 1860s. The Emancipation Proclamation was issued by President Abraham Lincoln on September 22, 1862, and effective as of January 1, 1863. General Robert E. Lee's surrender of the Army of Northern Virginia to Lieutenant General U.S. Grant occurred on April 9, 1865. Today is “Juneteenth” which memorializes June 19, 1865, when Union general Gordon Granger read orders in Galveston, Texas, that all previously enslaved people in Texas were free. Speaking of noteworthy days, plenty of companies will be giving employees July 3rd off (the 4th is on a Saturday this year).
Lender and Broker Services and Products
HomeBinder announces a partnership with the Ellie Mae Digital Lending Platform. With this partnership lenders will have the perfect tool to keep them connected post-close without physical contact. Drive agent referrals by co-branding HomeBinder with the real estate partners you work with. The effortless integration with Encompass® automates the entire process (including loan docs!) View our demo.
Steps taken to help correspondents: Operating as an FHA correspondent lender during the coronavirus crisis has been challenging to say the least. Government providers of DPA have witnessed the secondary market for their loans become exceptionally volatile leading to worse pricing at many. But CBC Mortgage Agency has not only lowered rates, but taken steps to make originating loans with DPA more reliable, including not requiring repurchase for loans which enter forbearance. In addition, CBCMA, which had primarily offered programs with down payment assistance, has launched FHA Classic, which does not include any DPA. The program can be used for home purchases, streamline refinances and rate-and-term refinances. FHA Classic allows loan-to-value ratios up to 96.5 percent, debt-to-income ratios of up to 50 percent and no income limits. There is no first-time homebuyer requirement, either. To find out more about FHA Classic and all of CBC’s programs, visit www.ChenoaFund.org.
QLMS’ partners only have until the end of June to assist their clients in unlocking HUGE savings with Prime29. This unique offering is creating waves across the broker community and has unleashed $186,000,000 in savings for partners’ clients since its rollout. QLMS has slashed the interest rate on a 29-year loan, so the monthly payment equals that of a 30-year conventional loan but saves clients THOUSANDS over its life. Partners have already helped nearly 12,000 homeowners secure this limited time deal – saving them an average of $15,500 over the life of their loan. LOs are coming to QLMS in droves because of differentiators like this. If you are not yet a QLMS partner, click HERE and you can leverage Prime29 and save your clients thousands in as few as 24 hours after placing your application.
Misc. Credit Updates
As lenders reduce friction in processing, they’re keeping an eye on credit policy. What is that? Big lenders have them, but why should a small company have one? The first thing that you need to do is differentiate between policy and procedure. Usually a “policy” addresses issues in broad terms, explaining what it is and the reasons for it. A procedure lists the step-by-step instructions on how to carry it out. So a credit policy is more widespread and addresses major issues, doesn’t change often, and addresses the “what and why”. A procedure is narrower, changes often, lists how to do things in detail and also answers the “who and when.”
Credit risk management is responsible for policy. You should decide who is responsible for implementing and maintaining the procedures necessary to comply with policy. You’ll need to address many topics. In no particular order, time periods, quantitative limits, conditionality, and policy exceptions. And be sure to keep an eye on the format of the write up, tone, style, using good grammar, and making it readable. And mention positions, not names, being responsible for certain items. For any written policy to be followed, it must be easy to read!
Alan Bercovitz caught this. “Regarding your note: ‘Remember that USDA Rural Housing Development announced that publication of revised HB-1-3555 Chapter 10: Credit Analysis is delayed pending USDA publication of a Procedure Notice (PN).’ My understanding is that PN 534 was issued on 3/19/20 and the changes are now fully implemented. The only announcement regarding this delay that I can find is dated 1/28/20.”
QLMS (Quicken Loans) let brokers know that the GSEs have released some new guidance to help lenders evaluate income stability for self-employed clients. “For new registrations on all products starting June 11, there are two new Partner Conditions to qualify self-employment income. At ‘Submit Full Package,’ we now require either a year-to-date audited profit and loss statement, or a year-to-date unaudited profit and loss statement plus the 2 most recent months’ or 60 days’ bank statements to verify the unaudited statement. (Previously, only the most recent profit and loss statement or business asset statement was required.) We will now calculate client income using the year-to-date profit and loss statements. Please note: Any income shown to be decreasing by more than 25% will not be qualified.
“Self-employed clients will need to attest to the stability of their business. This will be a requirement in Partner Conditions after the loan is ‘Conditionally Approved.’ Please contact your client and provide their detailed response describing the impact of COVID-19 on their business and if the income for the business will be stable moving forward within that condition. This condition will be required at “Submit Full Package.” If a client does not expect their income to be stable, their self-employment income cannot qualify. See the COVID-19 Updates page in GURU for more information.”
FAMC/Citizens Bank has developed an interim guidance document that summarizes its changes to policy. The COVID-19 Interim Guidance Document provides a summary of the recent policy modifications and denotes the reference bulletin associated with each change. Please visit the FAMC online manual to view the document located in the Underwriting & Credit Policy section.
loanDepot Wholesale/Correspondent published its Weekly Announcement that covers the GSE’s Self-Employed Income Analysis and Documentation Requirements, Fannie Mae Selling Notice 06-03-20, Freddie Mac COVID-19 FAQs, VA’s Funding Fee Guidance Update and VA Circular 26-20-20.
Lakeview Correspondent posted Announcement C2020-03 covering multiple topics which include DSHA Conventional and TSAHC Conventional Program updates, IRS Tax Return & Transcript requirements and an enhancement to Springboard To Homeownership Program and Fahe My Place Mortgage Program.
Rates: up a little, down a little. The yield curve flattened a bit yesterday, including the 10-year yield ending the day -4 bps to 0.69 percent, as there wasn't much fresh news for markets to digest. Increased coronavirus cases in several states fueled some of the move, as did higher than expected initial jobless claims. For the day’s two operations, the Desk purchased the $4.349 billion maximum with a 35.6 percent hit rate as $12.219 billion was tendered. Roughly one-third was concentrated in UMBS15s with the remaining two-thirds in UBS30s. Since the restart of QE on March 16, the Desk has purchased $751 billion.
Today’s sole economic release was the Q1 current account deficit, which doesn’t move rates. There are at least four virtual Fed speakers scheduled: Boston’s Rosengren, Vice Chair of Supervision Quarles, Chair Powell, and Cleveland's Mester. The NY Fed will conduct two FedTrade MBS purchase operations totaling up to $4.721 billion starting with up to $1.744 billion GNII 2.5 percent and 3 percent followed by up to $2.977 billion UMBS30 2 percent through 3 percent. We begin the day with Agency MBS prices down/worse a few ticks (32nds) and the 10-year yielding .74.
Jobs and Transitions
A mid-sized publicly held depository bank is continuing to expand its residential mortgage reach, and is looking for branches and originators in Texas. Capacity has not been an issue for this Bank, and it has a wider variety of programs than most, and is Ginnie, Fannie, Freddie approved. Confidential resumes/notes of interest should be submitted to me for forwarding; please specify the opportunity.
“If you’re an ambitious mortgage professional seeking new opportunities, MiMutual Mortgage invites you to explore the positions currently available within our Operations teams. MiMutual is excited to expand our Underwriting and Closing team, specifically seeking an Underwriting Supervisor in Metro Detroit and remote opportunities for Sr. VA Underwriters, Junior Underwriters and Closers, specializing in Texas loans. A deep-rooted, privately held mortgage bank in 38 states, MiMutual Mortgage expects to continue the same growth trajectory in 2020 that it experienced in 2019 and exceptional candidates are sought to help with this growth. All interested candidates are encouraged to contact Karley Warwick (248-286-9490) for more information.”
“National Lender and leading non-bank originator and servicer NewRez is looking for Licensed Loan Officers to join our Direct to Consumer business channel. NewRez’s DTC platform more than doubled its volume in 2019 and will continue to experience tremendous growth through the remainder of 2020. NewRez offers our loan officers an unlimited number of high-quality leads. No cold calling, as these opportunities are all from existing customers. We are currently hiring in Tempe, AZ; Jacksonville, FL; Columbia, MD; Fort Washington, PA; Charlotte, NC, and other locations. NewRez offers a flexible work environment and easy to use technology. Our fast-track training programs support both new and experienced loan officers, so our new team members are licensed and earning quickly. To hear more about any of our current sales openings or to submit your resume, contact Elisa Morgado. Click here for a full list of our open opportunities nationwide.”
“Quality Mortgage Services is a team of QC mortgage audit professionals ready to execute mortgage QC, due diligence, and audit functions so today’s lenders and servicers have the best mortgage analysis reports possible. We are expanding our residential mortgage auditing team by adding experienced and knowledgeable quality control auditors interested in working collaboratively with peers in a remote environment allowing for more work-life balance. Ideal candidates have a minimum of 10 years’ experience in residential mortgage underwriting or auditing for quality control, be proficient with Conventional and Government underwriting guidelines, FHA Direct Endorsement – VA SAR Certifications preferred, strong understanding of compliance, and solid knowledge of the Secondary Market. If interested, please send resumes directly to Claudia Duncan or Laura Kate Davis.”
When you’re setting goals and looking for ways to exceed them, you don’t want to be slowed down or derailed by trivial details within the loan process. That’s why Wyndham Capital Mortgage has put in the work to create sales-centered support systems that allow you to close loans faster and smoother. With a combination of technological systems like robotics and A.I., Wyndham has you covered every step of the way to eliminate inefficiencies to reach unparalleled speed and scale of closings. Our average time to close is around 30 days, far below industry average, which is a direct result of our loan officers having more time to spend selling and instead of managing a pipeline, troubleshooting, building a marketing plan, and other tasks that slow you down. To learn more about how you can join the team harnessing the power of tech to the benefit of your career, click here.
“Many LOs struggle to trust their leadership & company’s stability. Churchill Mortgage not only has a world class leadership team, but it's also an E.S.O.P! Our employees are partial owners. We're a company of leaders, focused on the success of our company & our customers. We’ve been voted a Top Workplace for 7 consecutive years! According to LinkedIn, Churchill Mortgage loan officers have an average tenure of 4.3 years compared to the industry average of 1.7 years! Also, 13% of our Loan Officers have been with us for over 7 years. ‘I've been in the mortgage and finance business for over 40 years, & have found it's truly a ‘people’ business where there must be a relationship of trust,’ explained Churchill Mortgage president and CEO, Mike Hardwick. We’re proud of our past & confident in our future. If this type of environment and leadership mentality interests you, contact Churchill Mortgage.”
And a well-known independent mortgage bank, headquartered in California, is searching for a Chief Credit Officer with strong Government and Conforming experience, and is well-versed in managing a staff of underwriters in addition to being an expert on credit. Interested parties should send me a confidential resume for forwarding; please specify the opportunity.
ReverseVision has filled its newly created Director of Business Development, Strategic Partners position, with mortgage industry veteran Carissa Orozco who will spearhead strategic integration partnerships that allow traditional mortgage lenders to integrate HECM and private reverse mortgages into the loan qualifying, sales and origination process with ease.