Overheard recently: “I just want a man who will make me laugh as we count his family’s money on his rock-hard abs.” Lenders are doing okay, money-wise, as we put another month under our belt. It wasn’t a particularly good month from the perspective of COVID, Afghanistan, hurricanes, or wildfires here’s a driver’s view). But it was a decent month for many lenders, and early indications point to the purchase market picking up and boosting numbers over July’s. Margin compression is related to origination channel, ranging from correspondent through wholesale and then to retail and direct-to-consumer. Lenders are seeing fewer extensions now as operational capacity has increased. At the “top of the funnel,” home building is well below historical norms, has been for years, and so catching up is difficult. In most markets, supply concerns outweigh credit issues. There are other things going on as well, like the NY “broker” who pled guilty to mortgage fraud and Fannie Mae reminding those impacted by Hurricane Ida of available mortgage assistance and disaster relief options. (More Agency news below.) Today’s audio version of the commentary is available here and this week’s is sponsored by Floify. Loan originators, mortgage brokers, and wholesale lenders, expedite your mortgage process with Floify POS, Floify+, and Floify TPO. Visit floify.com to schedule a live demo of any one of these three powerful loan origination solutions.

Broker and Lender Software

Finding “new” borrowers in a lender’s own existing database can feel as exhilarating as Dr. Robert Ballard and his crew felt 36 years ago today when they found the Titanic. According to Black Knight’s June 2021 data report, there are 15 million high-quality refi candidates in the market. Do you know how many of those are in your database, just waiting for you to call them with a great refinance opportunity? Sales Boomerang does. The #1 automated borrower intelligence and retention platform, Sales Boomerang monitors your database and notifies you when your borrowers are eligible to refinance (and more)! Lenders using Sales Boomerang see an average 20-40% lift to loan volume and 65% borrower retention rate for around $299 per acquired loan: a 20x ROI. Book a demo and start screaming "I'm the king of the [mortgage] world!”

“1 UW Touch on 70% of loans!” “Shorter cycle time saves $ thousands on lock fees.” Only Candor can conduct a complete credit risk assessment, including income calculation (W2 & Self-Employed) assets and liabilities, and make the decision to lend. Of course Candor reads documents and cross checks and corroborates data. 1 year and >1,000,000 autonomous underwrites later, Candor’s ROI goes unrivaled. Contact Candor for a demo. 

MLOs: Unify helps you rise above your competitors using 6 new ways to grow your business. Not all mortgage software is built to handle the ever-changing conditions in the residential mortgage loan industry. With more than 10 years of serving thousands of top mortgage professionals, Unify provides the tools you'll need to grow your business. Discover more loan opportunities with the Hot Prospect Alerts feature using Mortgage Inquiry Alerts and Prequalified Prospects. Save time with email drip campaigns, video and other marketing automation packed with pre-drafted content, plus customizable automated workflows that dramatically increase your team’s productivity. Unify’s trifecta of phone, email and direct mail marketing ensures you can retain clients for their next loan. Best of all, the Unify Mobile App puts the most robust mortgage CRM in the palm of your hand. Discover why Unify is your all-terrain business growth platform!

Are your servicing operations ready for upcoming debt collection regulations? The CFPB has issued two new rules related to the Fair Debt Collection Practices Act (FDCPA) focused on consumer protections, including stipulations on communications between debt collectors and consumers. Managing the “how, when and where” of these rules will be complicated, so servicers should take steps to prepare their operations now. Black Knight has developed an informative white paper with detailed steps to guide servicers through preparatory efforts, including reviewing current debt collection processes and systems to make necessary updates. The CFPB has stated that being unprepared is unacceptable, so it is important to be ready when the new rules are established to avoid financial penalties and negative publicity due to non-compliance. Download Black Knight’s complimentary white paper, Prepare Now for the Fair Debt Collection Practices Act, today.

Stearns Wholesale continues to offer monthly trainings and webinars on product and program developments, industry news, and market trends. For the month of September, Stearns will be offering a variety of training sessions covering important topics such as Garnet and Jade Jumbo product trainings, a full overview and loan creation walkthrough of its new and improved SNAP platform, and the ongoing BE THERE: Town Hall event series with special guest BombBomb. These virtual trainings and webinars occur every month at Stearns Wholesale and are free for anyone to attend! If you would like to register for any of these upcoming sessions, click here. If you’d like to partner with Stearns or learn more, click here to be contacted.

Fannie Mae will begin supplementing underwriting guidelines with rental payment history on September 18, and FormFree is pumped. Why? Because AccountChek 3n1 is program-ready out of the gate: no operational changes or system changes necessary, and no additional charges. You see, years ago FormFree independently developed and honed algorithms that can isolate rent payments in direct-source checking account data with great veracity. Now by corroborating borrower asset data provided by vendors like FormFree against rental data provided by borrowers in the loan application (1003), Fannie Mae can access the accurate rental data it needs to support expanding financing opportunities for more first-time homebuyers. If you’re still not sure how taking advantage of this initiative can boost your business, Christy Moss, CMB would love to break it down for you. Email her!

Loan Products

“Are the GSE guideline updates limiting your second home loan volume? Deephaven’s Expanded-Prime mortgages are an ideal option that lets you continue to serve second home borrowers and take full advantage of this hot market. We offer an LTV on expanded-prime of up to 85%, plus direct service and support from our scenario desk. We also serve both the wholesale and correspondent channels. To learn more, send us an email.”

“In case you missed it, the leadership team at Symmetry Lending took a moment in this video to express gratitude to our team members, our customers, and our partners. After only 3 years since launch, Symmetry has grown to more than 225 team members, all dedicated to an industry-leading brand of Service, Speed, and Simplicity, solely focused on HELOC solutions that help you close more loans. Whether your client needs a Concurrent Piggyback to avoid jumbo guidelines, or a Post-Close Piggyback to replenish liquidity used for down-payment, or simply a Stand-Alone HELOC as a cash-out transaction, Symmetry’s team is standing by to deliver an experience that will impress you, your customers, and your real estate agent referral sources. Check out Symmetry’s new pricing guide and contact your Area Manager today to learn more! And as always, connect with us on LinkedIn, Facebook, and Twitter for our ongoing updates.”

Agency News

Freddie Mac’s new refinance solution, Refi Possible, makes it easier to assist lower-income clients, with a Freddie-Mac owned mortgage, to benefit from refinancing opportunities and expanded flexibilities. To help you identify if your clients may qualify for the new offering, Freddie Mac introduced a new Freddie Mac Refi PossibleSM and Property Eligibility Tool.

Fannie Mae’s latest In Case You Missed It provides an overview of policy changes, including Selling Guide updates, Servicing Guide updates, Lender Letters, and Desktop Underwriter®/Desktop Originator® release notes.

On Aug. 23, Fannie Mae’s Loan Delivery and EarlyCheck™ introduced edits to support the Annual Percentage Rate-Average Prime Offer Rate (APR-APOR) spread thresholds.

APR-APOR edits transition to “fatal” today, on September 1st, and The points and fees edits will transition to fatal October 1st . Read the Loan Delivery release notes, the EarlyCheck release notes and Lender Letter LL-2021-11.

Freddie Mac issued a notification of upcoming extended maintenance windows for its technology tools, on three weekends in September. The underwriting tools will have an additional 17-hours of downtime each weekend, prior to the normal maintenance window (11 p.m. ET Saturday – 11 a.m. ET Sunday). Additionally, Loan Selling Advisor will have limited functionality and will only be available via a temporary URL from 9/10 (10 p.m.) – 9/11 (3 p.m.). Refer to the Client Resource Center for up-to-date information about the status of technology tools. Bookmark the page for reference. If you have any questions, contact your Freddie Mac representative or the (Support Contact Center (800-FREDDIE).

Capital Markets

Economic data released over the last week did little to change the narrative of improving conditions albeit with continued heightened inflation. Personal income increased in July as wages improved due to the tight labor supply. Meanwhile, real consumer spending declined slightly as consumers shifted spending from manufactured goods to services. Inflation over the prior twelve months was at 4.2 percent in July, and existing home sales increased to a 5,990,000 annual rate amid a tight 2.6 months’ worth of inventory. The median price of an existing home was 17.8 percent higher than July 2020. Meanwhile, new home sales were at a 708,000 annual pace as inventories increased to 6.2 months’ worth. The average price of a new home hit $390,500, an increase of 18.4 percent from last July. And although Fed chair Jerome Powell mentioned Friday that the Fed may begin to reduce its monthly bond purchases prior to year’s end, actual short-term rate hikes were still a ways off.

This week began with optimism that Fed policy support due to the pandemic will be withdrawn cautiously and gradually, but traders are now waiting for Friday’s U.S. jobs data to assess whether the economic recovery merits an earlier tapering. We saw yesterday that U.S. home prices once again jumped the most in more than 30 years, largely due to tight inventory. As we saw from the latest FOMC minutes, the committee is focused on home price appreciation and how its MBS purchases affect price changes. Separately, consumer confidence dropped in August to the lowest level since February, suggesting concerns over the delta variant and elevated prices are weighing on Americans' views of the economy. Rounding out releases, the Chicago PMI fell in August from July.

Today’s economic calendar is out of the gate, and we have seen that mortgage applications decreased 2.4 percent from one week earlier, according to data from MBA’s Weekly Mortgage Applications Survey for the week ending August 27. As a prelude to Friday’s employment report, we’ve received the ADP employment for August (missing estimates and only +374k). Later this morning brings the final August Markit manufacturing PMI, ISM manufacturing PMI, and July construction spending. On the Fed front, Atlanta Fed President Bostic will speak this afternoon while the new month kicks off with the Desk purchasing up to $5.2 billion 30-year 2 percent and 2.5 percent. We begin the day with Agency MBS prices down slightly and the 10-year yielding 1.32 after closing yesterday at 1.30 percent.

Jobs

Congratulations to Vice Capital Markets on its 20thanniversary.Founded by Chris Bennett in August 2001 it’s helped countless IMBs, banks and credit unions navigate the often turbulent waters of the secondary and capital markets. Today, 1 in 15 mortgages originated for sale in the U.S. are traded by Vice Capital Markets, or hedged using its proprietary software.

Enact is hiring a Field Account Manager in Colorado. This role is key in creating new customers and maintaining or increasing market share with current customers and is ideal for a person who thrives by taking on unique business challenges and enjoys contributing directly to the bottom line of the business. To learn more about the position and apply please visit Enact Field Manager.

CashUp™ by Evergreen turns house hunters into cash buyers. With this exciting program, homebuyers who require a mortgage can turn their offers into cash and get the attention of sellers. This gives real estate agents a unique resource to help their clients compete against cash buyers or offers for more money. It evens the playing field for agents and buyers alike. In addition, loan officers have a powerful program that puts their agent partners ahead of the competition and keeps them in the transaction. Evergreen Home Loans™ is proud to offer innovative solutions and niche programs to increase business opportunities for its family of loan officers. If you’re interested in working for a company that helps loan officers stand out, visit the Careers page.

Looking for a solution to low inventory and higher prices for single-family homes in your area? Supreme Lending has a CONDOLUTION for you! The Dallas-based independent lender has invested significant resources into helping Loan Officers find new sales opportunities in this competitive market. Supreme’s CONDOLUTION program is designed to build business among the growing segment of buyers looking for the convenience, size, and pricing of condo housing. Features of this program include: 1) multiple avenues to exceptions to assist in achieving warrantable status; 2) access to financing for hard-to-finance to non-warrantable condos; 3) an experienced team dedicated to gathering and processing condo loan documents; 4) assistance during new build/construction; and 5) quick turn times on condo projects (24-48 hours on approved projects; 48-72 hours on Conventional projects). Loan Officers can also earn credits by participating in Supreme’s CONDOLUTION CE-certified course. Contact National Production Manager Ryan Baxter to join the #CONDOLUTION today. 

Banner Bank is searching for a Multi Family Regional Account Manager, responsible for multifamily loan production goals, administration of all loan programs, overseeing the review of the loans for approval, overseeing originators in the contact, and solicitation of additional loan business from qualified borrowers.                           

Geneva Financial, a direct mortgage lender operating in 45 states, announced the promotion of Joey Waters to Chief Secondary Officer where he will be responsible for Geneva's presence in the secondary mortgage markets as well as overseeing the company's lock desk and pricing engine.