Ever heard of Divvy Homes, ZeroDown, or Flyhomes? You should have, because your potential clients probably have. Startups are aiming to break down obstacles to homeownership, and every lender out there should see what they’re up to. Of course, anyone with more than two years in this biz knows that not everyone deserves a loan, or deserves to own a home, and even if everyone did, there’s not enough inventory at many prices points around the country to have everyone buy one. HouseThis, a new Silicon Valley startup, offers an app that enables homeowners to gain insights into home financing activity in a specified area. By simply inputting an address into housethis.app, you instantly discover important information, like how many homes in an area are paid off, carry mortgages, have second loans, and more. T-E-C-H.

Lender Products and Services

MBA Annual's largest booth this year will feature big tech in a tiny home. The company behind what is likely to be this year's main attraction, Class Valuation, says they are excited to showcase their computer vision technology in an actual tiny home. After spending the past year partnering with industry stakeholders like the GSEs, appraisers, and lenders, the company has piloted their technology, refining along the way to offer Thoughtful ChangeTM to the valuation industry. Want to be one of the first people to see what they’ve been up to? Schedule a meeting here.

Mortgage lenders, thank you goes a long way. Isn’t it time to show your compliance team a little gratitude? MQMR is here to help you do just that. November is National Gratitude Month, and to help you let your hard-working compliance team know how much you appreciate them, MQMR is offering you the chance to give your team lunch on us! Nominate your compliance team, and tell us what makes them so extraordinary. Nominations are open now through Nov. 8. MQMR will select a winner at random each week in November starting Nov. 4, and they’ll receive a $250 gift card for lunch on us. For a list of Official Rules and to submit your nomination, visit the contest page here.

An Economist article in 2017 made the claim that data is the new oil, arguing that data is now the most valuable resource available to businesses. While the validity of that claim has since been debated, there’s no question that data is an incredibly valuable asset. The problem in the world of mortgage technology is that too many startups have failed to comply with regulations and, as a result, customers are vulnerable to a variety of preventable incidents. Mortgage lending startups that hope to thrive must make data security and customer privacy top priorities. Without security and compliance infrastructure built into the fabric of a mortgage or mortgage-adjacent startup, adjusting to changing regulations and a shifting technological landscape becomes too burdensome. Cloudvirga Chief Legal and Compliance Officer, Maria Moskver, takes a look at the three-pronged reason data security continues to be a problem among fintech startups and how we as an industry can improve the landscape.

GSF Mortgage Corporation will be attending the Mortgage Bankers Association's Annual Convention & Expo Oct. 27-30 at the Austin Convention Center in Austin, Texas. Robert Stephens, SVP of Sales for Construction Lending Division will be onsite to discuss the benefits Single Close Construction loans over traditional construction loans. Single Close Construction loan programs offered are, FHA-96.5% LTV, USDA-100% LTV, VA-100% LTV, and Conventional up to 95% LTV. All programs are single settlement without the need to requalify the borrower after the initial closing. GSF Mortgage Corporation offers more choices to our customers than most lenders, allowing borrowers to buy or build their dream home. To learn how you how you can incorporate Single Close Construction loans into your programs, schedule a meeting  or email Robert Stephens.

It’s 2019. We don’t get out encyclopedias to research something, we “Google it.” Brokers, how are you researching the loan programs from the lenders you work with? Do you pull out a file folder full of flyers? Do you search for emails from AEs? QLMS has a better way. The forward-thinking lender has “Guru,” a search engine for mortgage qualifications. Guru makes underwriting guidelines easy to find – just search like you would for anything else in your life. Once the search results show you the mortgage product you’re looking for, the tool give you all the details about the loan product and the qualification guidelines. You can even compare products against each other on one screen. Talk to your AE to learn more about how to get the most out of Guru. If you don’t work with QLMS, you can connect with them here and start working smarter not harder.

Thrive Mortgage recently announced an enhancement to its already impressive Construction Lending product line. In August, Thrive launched a 95% LTV One-Time Close construction product, allowing those who are seeking to build their dream home the opportunity to get in for less money up front. “To be able to offer this program truly sets Thrive apart from other lenders,” stated Brian Hurd, VP National Builders Division. “To walk into a builder’s office, present our construction offerings, and demonstrate the ability to positively impact their standing in their local market is powerful.”  Michael Jones, CFO for Thrive, also added, “Finding the best ways to serve our clients and give them as many convenient options as possible is what motivates us. We continually seek to improve our operations and loan program offerings so that the consumer wins.” To learn more about this program, reach out to Thrive Mortgage at info@thrivemortgage.com.

“October is a BIG month for Mr. Cooper! We’re preparing a BIG Texas welcome for our fellow MBA Annual Convention & Expo19 attendees later this month in Austin. Let’s meet so you can hear about the BIG developments at Mr. Cooper. Contact your Regional Sales team to schedule a meeting and to find out about the BIG fun we have planned for our reception on Monday, October 28. While in Austin, meet MOXI (Mortgage Originations Xpress Interface) our exciting new technology innovation and loan management solution launching later this month! We’ll also be excited to explain the benefits and overview of our newest offering – Hybrid AOT. As a leader in Co-issue/AOT transactions, our experts are here to help you every step of the way with this program. Hope to see you in Austin! Mr. Cooper is top 10 Correspondent investor and the largest non-bank servicer with a servicing portfolio $600B+. For information, visit www.mrcooper.com/correspondent.”

Changes Regarding FHA/VA/HUD/Ginnie/USDA

Ginnie Mae’s MBS outstanding increased to $2.087 trillion.

US Bank Correspondent/HFA Lending Guides have been updated to reflect information regarding Leasehold properties and FHA Flood Insurance. See SEL-2019-45 for details.

Due to changes in Ginnie Mae pooling eligibility, AmeriHome is reducing the maximum LTV/CLTV for Type I and Type II VA Cash-Out Refinance loans from 100/100 to 90/90. The minimum credit score requirement for 90% LTV/CLTV is unchanged at 620. Key dates for VA Cash-Out Refinance transactions with LTV/CLTVs greater than 90% are as follows:

Last Day to Deliver: 9/23/2019. Last Day to Purchase: 10/7/2019. First Payment Due Date must be on or before 11/1/2019.

Mortgage Solutions Financial issued a reminder that locks on VA Cash Out loans with LTV > 90% will no longer be allowed on/after September 1st, 2019 and funding's will no longer be allowed after 9/20. See its revised Announcement 22-19C for details. And it posted a revised Announcement 19-19C regarding updates to the FHA Guidelines.

Although there have been extensions granted to HUD ML 2019-06, lenders may still be required to ensure that the Borrower’s Minimum Required Investment (MRI) comes from a permissible source and that the down payment provider meets certain documentation requirements. Once this Mortgagee Letter (ML) is in force, a Jurisdiction Opinion Letter and Acceptable Source of Funds Letter from Offering Agency documentation must be provided for any FHA loan where the down payment assistance (DPA) funds are covering all or part of the MRI, and are being provided by a Governmental Entity. Mountain West Financial Wholesale clients can view full details by program here.

As a Mortgagee, am I required to notify FHA if my company’s net worth decreases or if I experience operating losses? Yes, in some instances Sections I.A.7.g-h of the HUD Handbook 4000.1 outline the requirements identifying when the Mortgagee must notify FHA. Section I.A.7(g) Liquid Assets or Net Worth Deficiency and Section I.A.7(h) Operating Loss, discuss the requirement to submit a Notice of Material Event to FHA.

As FHA had announced with the August 14th publication, the “Project Approval for Single Family Condominiums” Final Rule is applicable to both the Home Equity Conversion Mortgage (HECM) and forward mortgage programs. As a result, FHA published Mortgagee Letter (ML) 2019-17, Home Equity Conversion Mortgage (HECM) Program – Condominium Requirements, which outlines the updated origination requirements for HECMs in condominium projects in accordance with the recently published SF Handbook guidance. It also includes certain borrower eligibility requirements for seniors seeking to obtain a HECM for a condominium unit using FHA’s Single-Unit Approval process.

USDA-Rural Development issued the Fiscal Year 2020 Conditional Commitment Notice announcing a delay of approximately two weeks in its allocation of funding. USDA will begin issuing Conditional Commitments subject to the availability of commitment authority for purchase and refinance transactions beginning October 1, 2019. During this temporary lapse in funding, FAMC Correspondent will purchase USDA loans when the Conditional Commitment is “subject to the availability of commitment authority”, as this is primarily a procedural delay with USDA and not a funding issue with the USDA-Rural Development. The upfront guarantee fee of 1.00% and the annual fee of .35% will remain unchanged for both purchase and refinance transactions for the fiscal year 2020.

During the interim period, while USDA awaits Fiscal Year 2020 funding, AmeriHome will require the following: The unexpired Conditional Commitment must be in the Loan file prior to Loan Purchase by AmeriHome. The Conditional Commitment may be “subject to the availability of commitment authority.” Sellers are responsible for uploading a copy of the Loan Note Guarantee (LNG) to SellerWeb/Doc Manager/Post-Purchase Upload/View: Within 45 days after Mortgage Loan close, or Before the loan becomes 30 days delinquent. If the LNG cannot be uploaded in the required timeframe due solely to USDA’s availability of commitment authority, the LNG should be uploaded as soon as it is available.

During the USDA brief lapse in funding, Rural Development will issue Conditional Commitments (Form RD 3555-18/18E) “subject to the availability of commitment authority” for purchase and refinance transactions. There will be no change to the Submission or Underwriting process for Mountain West Financial, Inc. during this time. An upfront guarantee fee of 1.00% and an annual fee of .35% will apply to both purchase and refinance transactions for Fiscal Year 2020.

PennyMac Correspondent posted an Announcement regarding VA High LTV Refi’s and AOT Pricing Retirement.

PRMG issued Product Profile Updates affecting FHA gift funds, updated requirements to require evidence of payment or payment plan when documentation shows current year taxes are due for Agency, FHA, VA and USDA. Clarification of eligibility for Manufactured Housing in Special Flood Hazard Areas on FHA Standard and High Balance. CHFA Conventional clarification regarding income limit caps.

U.S. Bank announced it will purchase USDA Rural Housing loans during the temporary lapse with Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions.

PennyMac Correspondent posted updates to FHA and USDA programs.

The AmeriHome Mortgage VA and VA IRRRL Program Guide has been updated to align with changes to VA Lenders Handbook Chapter 13, Notices of Value, which provides information for SARs who are reviewing appraisal reports and issuing NOVs.

Plaza’s USDA program guidelines have also been updated to incorporate the USDA’s recent announcement on the required payment to be utilized for non-fixed student loan repayment plans.

Capital Markets

The global economy flashed grim warnings Tuesday as a wave of data showed manufacturing slumping (the ISM Manufacturing index posted its lowest reading in 10 years) as a byproduct of weakening business confidence that is stemming in part from the trade uncertainty. Exports fell, sentiment slid, and total construction spending missed expectations due to the recent decline in new single-family construction. Stocks tanked.

The same news that drove stocks lower also drove rates lower as U.S. Treasuries recorded solid gains, and mortgages tagged along, and the 10-year yield closed -3 bps to 1.64 percent. Global growth concerns did not help, as the World Trade Organization lowered its 2019 global trade growth forecast to 1.2 percent from 2.6 percent projected in April. The WTO's 2020 trade growth forecast was reduced to 2.7 percent from 3.0 percent. Eurozone's September Manufacturing PMI decreased, as did Germany's September Manufacturing PMI, France's September Manufacturing PMI, Italy's September Manufacturing PMI, Spain's September Manufacturing PMI, and Swiss August Retail Sales all missed expectations. Separately, the New York Federal Reserve conducted a repurchase operation, accepting total bids of $54.85 billion, below the $75 billion maximum.

Mortgage applications for the week ending September 27 kicked off today’s calendar, and the release showed mortgage applications increased 8.1 percent from one week earlier. Next up was ADP employment (+135k, roughly as expected), followed by the ISM-New York business conditions index for September, and comments from Philadelphia Fed President Harker and New York’s Williams. We begin the day with Agency MBS prices are worse .125 and the 10-year yielding 1.63%.



Thrive Mortgage has strengthened its position again with the addition two new rock star origination teams. Thrive is pleased to announce the arrival of Angela Cantu & Ivan Benevich covering the Houston, TX market; and Jason Reedy as Branch Manager in Troy, OH.  The origination team of Cantu and Benevich will complement an already strong Thrive presence throughout Houston. While further north, Reedy, with more than twenty years in the business, will seek to continue to expand Thrive’s footprint throughout the Midwest.  When asked what prompted his move, Reedy replied, “For me, the program selection, including all the Construction lending options, the leadership, and the culture of Thrive were the most attractive assets of the company. My team and I are thrilled to be a part of such exciting growth.” For more information on available positions or to speak with members of our leadership and recruiting teams, please visit join.thrivemortgage.com.