A while back I was walking past a small group of a lender’s senior managers and one of them was joking, “With the money we’ll save by shutting down quality control, we can issue some truly spectacular apologies.” Can lenders doing $20-$40 million a month, 100-200 units, on thinner margins afford adequate QC and compliance departments, or afford to pay vendors? Time will tell. Too big to fail, too small to comply…
The U.S. Justice Department said PHH Corp will pay nearly $74.5 million to resolve claims it generated defective loans that the government then insured and Fannie Mae and Freddie Mac bought. "This significant resolution helps rectify the misconduct by returning more than $74 million in wrongfully claimed funds to the government." PHH said it cooperated fully in the investigations that led to the settlement agreements. It also said it had agreed to resolve the probes without admitting liability. The settlements resolve claims that PHH failed to comply with certain origination, underwriting and quality control requirements of FHA, VA, Fannie, and Freddie.
And last week, for those following false claims news, Wells Fargo agreed to pay $108mm to settle a whistleblower lawsuit that claimed it charged military veterans fees to refinance their mortgages and then hid the fees when it applied for federal loan guarantees from the Department of Veterans Affairs: Interest Rate Reduction Refinance Loans (IRRRLs). Georgia mortgage brokers Victor Bibby and Brian Donnelly brought the suit. I don't believe a penny goes to any borrowers - let me know if you have proof otherwise.
Upcoming Events and Training
Headed to FAMP this week? Considering a change? Stop by booth 402, and say hello to publicly traded Impac Mortgage Corp. who is breaking ground in Ft. Lauderdale! The national lender is "Looking for inside & outside sales pro's, operational staff (leadership and support), including underwriters and account managers to support our East Coast clients" said Todd Kesterson, VP, Wholesale, and the site leader of the new facility. All positions come with a competitive salary and full benefits, including 401K. Interested? Meet Todd in person at FAMP. Or, send your resume directly to Todd Kesterson.
Join Caliber Home Loans Inc., Calyx Software and LoanScorecard for an exclusive webinar to help you navigate today's market environment. During this panel discussion, you will also learn about the business growth opportunities available to you, and view a demo of the new pricing engine - Caliber RUN - featured in the Calyx Point software. There are 2 webinar dates to choose from: August 15th or August 16th.
Plaza's is providing a webinar designed to help financial planners and loan professionals to better understand how Plaza's Reverse Mortgage can be used as a vital part of an overall retirement strategy and not just a loan of last resort. Register for the August 10th webinar.
Learn about Plaza's Fannie Mae HomeReady program, which replaces the MyCommunityMortgage® program by registering for the August 9th webinar. This webinar will cover the differences between HomeReady and MyCommunity, Plaza's underwriting guidelines, and recent updates to the program.
Are you prepared to Drive into the digital age? Explore digital 'disruptors' at the annual Fall Conference of the American Credit Union Mortgage Association (ACUMA). This conference will be held at the Bellagio Hotel and Resort in Las Vegas, September 24th-27th. Topics will range from compliance and security issues to business development strategies and business transformation.
The Oregon Mortgage Bankers Association invites you to join the 40th annual 2017 Pacific Northwest Mortgage Lenders Conference. "Flex your Mortgage Muscle" and feed your inner drive for current developments in mortgage lending presented by national and regional guest speakers. It will be held at the beautiful Skamania Lodge overlooking the Columbia River Gorge in Stevenson, WA.
Appraisers register for the Las Vegas Nevada, October 2nd- 4th Valuation Expo. Talk to Lenders, Appraisal Management Companies, Insurance Companies, Appraisal Software Companies, Appraisal Support Companies, and much more. Register today with code TS50 and save $50 on a Trade Show Only Pass.
On November 6th and 7th, TMBA's Annual Educational Seminar & Marketplace will bring together hundreds of real estate finance professionals to listen to dynamic speakers from the industry. Register today and hear about new regulations, procedures, and tactics on how to be successful, while you network with industry peers.
According to the STRATMOR Group, more than 80 percent of lenders use at least one commercial Loan Origination System (LOS), but less than 30 percent of lenders report that they are highly satisfied with those systems. The LOS is the single most important piece of technology in your company and it is critical that you share your experience with other lenders about how your LOS performs. The 2017 STRATMOR LOS Technology Insight Survey is the industry's most important and comprehensive study of mortgage technology. There is no charge to participate and Lender respondents will receive a high-level summary of overall market share by vendor. Click here to take the survey.
Mortgage Solutions Financial has made updates regarding its initial submission process.
Fifth Third has upgraded the corporate web site. With this upgrade are the following changes: New URL for the correspondent landing page and New "Lending Space Login" link to support future roll out of the LendingSpace Correspondent Portal. Unless notified, lenders should continue to login using the "Correspondent Connect Login".
On August 4th, Ethos Lending released brand new technology that will allow it to issue the CD to your borrowers before the loan is clear to close. Any loan that is underwritten on or after Friday, August 4th will be able to follow the new process change.
Effective immediately, NewLeaf has consolidated the Closing Disclosure Request Form and Final Loan Document Order Form. These forms contain required information previously obtained on multiple forms and may be found via its website on the resource pages.
An economy's growth directs interest rates, and in terms of a review of the U.S. economic data, there is suggestion of stronger growth in Q2. The ISM manufacturing index reached its highest reading since August 2014, while the ISM non-manufacturing index also topped expectations. Nonfarm payrolls had an increase of 222,000 in employment but, despite the job gains, wage growth remained stuck in neutral. There is a belief that the Fed's balance sheet reduction program will begin at the start of Q4, with the next rate hike occurring in December.
Furthermore, in terms of a globally economic review, there is solid growth in foreign economies. The Japanese economy continues to "grind along". Real GDP growth in Q2 appears to have been solid as well in the Eurozone and in Canada. Industrial Production in Germany and France has jumped. Canadian payrolls have been moving higher for months. On the contrary, economic growth in the UK appears to be presently below average. It is suggested that uncertainties related to the Brexit process undoubtedly are playing a role.
Yields on government bonds in many European countries have risen noticeably in the last several days. For example, the yield on the 10-year German Bund is up more than 30 bps over the last two weeks. Although government bond yields in Europe could possibly move higher in coming weeks, most believe the fallout will largely remain contained if the ECB does not move quickly to hike its policy rates.
Shifting back to the United States, Tuesday was another non-volatile day although rates decided to head slightly higher. The Fed was in doing its usual buying of an assortment of hundreds of millions in securities and various maturities, resulting in some minor shifting between coupons, helping keep mortgage rates low. By the time the dust settled the 10-year was yielding 2.28% and 5-year T-notes and agency MBS prices were worse .125.
This morning we've already seen the MBA's survey of last week's apps. Apps last week were +3%, but down 25% from the same week a year ago. Refis were +5% but -44% versus a year ago. We've also had Q2 productivity (+.9%) and unit labor costs (+.6%); later are June wholesale inventories and a $23 billion 10-year note auction. In the early going the 10-year T-note is yielding 2.22% and agency MBS are better nearly .250 versus last night, primarily due to the North Korea saber rattling nervousness.
Jobs and Products
A large Southern California lender seeks a Mortgage Servicing Manager to lead the company's internal Servicing Department and provide oversight and management of its sub-servicer. This lender is a national mortgage lender and servicer, located in Orange County, California with an extensive and growing servicing portfolio, consisting of conventional and government loans. To express interest in the position, and/or to request the job description and further details, please reach out to me; please specify opportunity and excuse delays due to travel.
SG Capital is pleased to announce a new loan program, Expanded Access Plus (EA+). With rates starting in the low 4% range, EA+ targets near-prime borrowers who don't fit standard Jumbo or Agency products. The program allows for: 661+ FICO, 50% DTI, and [credit events within the last 5-7 years]. EA+ borrowers can also qualify using bank statements, 1 year of tax returns, and asset utilization. All product types, occupancy, and loan purposes are allowed. SG Capital is a correspondent platform with options in the delegated & clear-to-close space. To run a product scenario through their eligibility calculator or to get in touch with your local sales representative please visit http://www.sgcp.com.
"Cardinal Financial Wholesale has been breaking onto the wholesale scene as a leader in innovation and simplified lending practices. Powered by its game-changing proprietary technology called Octane and a "We can do that!" empowered culture, the firm is singularly focused on putting the broker first in its model and modernizing the wholesale process. To further its growth initiatives, the company announces the addition of three dynamic and distinguished leaders to their team: Karl Benjamin, Jeff Sherwood, and Tammy Wallace. Benjamin will serve as VP of TPO. He joined Cardinal with over 15 years of industry success and a track record of building thriving wholesale teams. Sherwood joins as the VP of TPO Operations and brings over 20 years of experience in diverse leadership capacities, most recently as a Senior Operations leader. Wallace brings an exceptional history of origination and leadership success. She will take on the role of Regional Production Manager, overseeing the State of Florida."
A fast-growing wholesale unit located in Sacramento, CA is looking for experienced operations staff who would like to join a family oriented, team environment. Our company is FNMA, FHLMC and GNMA approved and funding loans nationwide. We're looking to add to the operations staff to support and stay ahead of the growing production team --- cultivating an environment that provides an amazing customer experience. Will be hiring all positions within the Wholesale Operations Team: TRID/compliance specialists, processors, underwriters, and closers. Experience requirements vary relative with position, Wholesale Lending experience is preferred - no entry level positions at this time. All positions report on-site with the exception of underwriting if outside of the Sacramento area. Please send resumes to me and specify the opportunity.
Floify, the mortgage automation solution of choice for top-producing mortgage professionals, has been growing by leaps and bounds lately. In response to user feedback, the Floify team has recently rolled out some very exciting features into their already solid platform, including the integration of DocuSign templates, an improved layout for their Apply Now online mortgage application, and a partnership with Nimbus Software, which has brought the ability to check LIBOR rates directly from the Floify dashboard. With these new features, and more on the way, Floify's solution has been able to help LOs close loans an average of 8x faster compared to other mortgage solutions, increase their annual loan volume by more than 11% without adding additional staff, and improve efficiency and reduce workload by up to 5 hours/week while maintaining existing loan volume. To see Floify in action, request a live demo; or, to get behind the wheel and take Floify for a spin, sign up for a free trial.