Residential lending is filled with technology shifts. (STRATMOR is offering up technology survey results below.) I am a luddite when it comes to that stuff. Watching the Georgia game Saturday someone asked me, “What apps have y’all bought that are worth the money?” I replied, “Mozzarella sticks for sure, and the Costco spinach artichoke dip is a classic.” Attitudes shift. FOMO? Fear of missing out. Now there’s FOGO: Fear of going out. Really? The FHFA’s focus has obviously shifted away from exiting conservatorship and toward its current mission. Sandra Thompson, known for her “safety and soundness” background has moved forward. The Federal Reserve doesn’t automatically shift from buying $40 billion a month of assets to raising in rates. One easy interim step could be moving to buying whatever mortgage loans or Treasuries from their balance sheet pay off. The Fed doesn’t want another short-term knee-jerk reaction from the market, like we saw with the “taper tantrum,” and replacing the runoff is a decent option. Today’s audio version of the commentary is Residential lending is filled with technology shifts. (STRATMOR is offering up technology survey results below.) “What apps have y’all bought that are worth the money?” I replied, “Mozzarella sticks for sure, and the Costco spinach artichoke dip is a classic.” Attitudes shift. FOMO? Fear of missing out. Now there’s FOGO: Fear of going out. Really? The FHFA’s focus has obviously shifted away from exiting conservatorship and toward its current mission. Sandra Thompson, known for her “safety and soundness” background has moved forward. The Federal Reserve doesn’t automatically shift from buying $40 billion a month of assets to raising in rates. One easy interim step could be moving to buying whatever mortgage loans or Treasuries from their balance sheet pay off. The Fed doesn’t want another short-term knee-jerk reaction from the market, like we saw with the “taper tantrum,” and replacing the runoff is a decent option. Today’s audio version of the commentary is available here and this week’s is sponsored by Arch MI, offering credit risk enhancement products, expert risk management and financial solutions to help lenders and investors reduce their exposure to mortgage risk.
Services and Products
On this day in 1950, Snoopy made his first appearance in Peanuts. As the series’ deuteragonist (a fancy word for the secondary protagonist), Snoopy was featured prominently across the comic’s 50-year run. Among my favorite strips were those featuring Snoopy’s alter ego The Flying Ace, a WWI hero and fighter pilot who waged aerial battle against The Red Baron. Speaking of heroes, now is the time to register for FormFree’s Heroes Golf Classic. The annual charity golf tournament brings together some of the biggest names in mortgage (LBA Ware, Halcyon, and HousingWire are just the latest to chip in) to raise funds for the American Red Cross. The fun takes place October 29 at Château Élan Winery & Resort in Braselton, Georgia, conveniently located an Uber’s ride away from the Atlanta airport. To play a round or sponsor the event, click here.
Finally, a DPA for FHA, MaxONE is here exclusively from LoanStream Wholesale. Join our upcoming webinar on MaxONE and learn more about how this program can help you expand your market. Register now at Webinar Registration LoanStream Wholesale - Wholesale Mortgage Lending to reserve your spot. We are the ONE Lender that makes you the ONE to call. Contact your Account Executive today. Visit www.LoanStreamWholesale.com for our great rates and programs.
Computershare Loan Services (CLS) is a top buyer of MSRs through its co-issue acquisition platform. Since 2011, it has accommodated lenders of varying sizes, purchasing loans on a fully bifurcated basis with quick funding. Richard Dybel, National Sales Manager, remarks, “CLS is a financially strong counterparty that offers consistently competitive pricing with increased efficiencies on the purchase and sale of MSRs. We have the experience to make the co-issue process smooth. Now is the ideal time to explore your co-issue options.” CLS is consistently competitive in the marketplace with an appetite to grow. Contact the CLS team to add their co-issue platform to your toolbox of delivery options.
On this day in 1957, the Soviet Union launched Sputnik 1, marking the first major milestone in the space race. The rivalry between the U.S. and the U.S.S.R. as the two countries battled for superior spaceflight capability captivated the attention of the American public, who monitored the space race through the new medium of television. Today lenders working with Sales Boomerang can rest assured their databases are even more closely monitored than the space race was. Sales Boomerang, the #1 automated borrower intelligence and retention platform, monitors your database and notifies you when your borrowers are eligible for a loan. Notifications include refi opportunities, home listings, credit improvement 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. Schedule a demo today and see your volumes blast off.
A huge word of congratulations to Sagent CTO Uday Devalla for being selected as a 2021 HousingWire Vanguard. Uday has been a mortgage innovation insider through every major advance in the modern era, from helping build the origination industry’s first automated underwriting system at Countrywide (which paved the way for the success of today’s top AUS Fannie Mae DU) to modernizing one of the largest nonbank tech platforms during the 2013-2019 digital mortgage era that powered Blackstone-owned Stearns as well as top fintech SoFi’s mortgage lending. Today, Uday is leading the last mile of mortgage modernization by rewiring the servicing industry with the same consumer-first, bank-on-your-phone experience that modern consumers expect. Talk shop with Uday here or catch him in person at MBA Annual (Oct. 17-20 in San Diego, CA) and MSR Forum (Oct. 27-28 in New York, NY).
Down Payment Assistance (DPA) in California from Golden State Finance Authority, a game-changer when it comes to helping homebuyers in purchase a primary residence with little-to-no money out of pocket. Up to 7% in assistance available; Not limited to first-time homebuyers; FICO score requirements as low as 620; and flexible DTIs up to 50%. FHA, VA, USDA, and Conventional Loan financing is available. Want to learn more? Join us for FREE online Lender Training. Recent announcement: Enhanced pricing and DPA options with Conventional Loan financing through the GSFA Platinum Program for borrowers above 80% of Area Median Income (AMI). --- Visit us at www.gsfahome.org for more information.
Lenders, how far along the road to digital innovation are you? Whether you are well on your way with your digital plans or are thinking through what to do in 2022, you'll want the data that is only available from the Digital Innovations Survey of STRATMOR Group’s 2021 Technology Insight® Study. This survey takes less than 10 minutes and participating lenders receive the survey report for FREE. Don't miss your chance to have data on the key digital capabilities and the benefits and barriers to the digital technology available in the mortgage market today — take the Digital Innovations Survey now!
Here is FEMA’s Disaster Information Page which sets off many Agency, investor, and lender policies and procedures.
FHA issued a reminder, FHA INFO #21-74, to mortgagees about its guidance for originating and/or servicing FHA-insured mortgages in locations in the U.S. and its territories when the President declares a major disaster area during the COVID-19 pandemic.
Flagstar Bank is resuming loan closings and funding for properties located in areas previously declared disaster areas. Resumptions include California counties listed in Flagstar Announcement 21136, counties/parishes affected by Hurricane Ida per Announcement 21117, satisfactory reinspection’s will be required.
First Community Mortgage posted updated Michigan and Pennsylvania Disaster information in FCM Announcement DA-21-10- Michigan Tornado/Flooding- Amendment No. 1 and
Mortgage Solutions Financial posted Revised Announcement 14-21C regarding Michigan Tornadoes and Revised Announcement 21-21C regarding Hurricane Ida.
Jumbo and Non-QM Updates
Although still a very small percentage of overall volume, non-QM, nonconforming, and jumbo products are still worth keeping an eye on.
Chase Correspondent Lending updated its Non-Agency credit requirements to align with Agency guidelines more closely. These changes include Tax Transcripts Requirements, Employment Income-Self Employed Sources, Other Income, Rental or Investment Property income and Age of Documentation. Refer to Bulletin #CB21-42 in the Chase Online Guide, accessible through ChaseLoanManager for details.
Wells Fargo Funding previously announced, in Newsflash C21-050 dated September 22, 2021, its Nonconforming program was expanded to allow primary residence purchases up to 85% LTVs, effective with Best Effort Registrations and Locks on and after September 24. Wells Fargo Funding announced in Newsflash C21-052, the increased LTVs can also be applied to Loans in the pipeline.
Stay up to date with what's happening, loanDepot Wholesale’s WNTW, September 27th includes updates on multiple Conventional Lending Guide updates, JumboAdvantage EXPRES
Verbal Verification of Employment Reminder and Disaster Announcement updates for California and New Jersey.
Wells Fargo Funding expanded its Non-Conforming program to allow primary residence purchases up to 85% LTV. Also, during the temporary unavailability of USDA commitment authority, it will temporarily purchase eligible Guaranteed Rural Housing (GRH) Loans with contingent Conditional Commitments if all other conditions have been satisfied according to RD guidelines.
PrimeX Loan from HomeXpress Mortgage is the Non-QM solution for self-employed borrowers who can’t fit into a traditional government matrix. Borrowers can use alternative documentation such as bank statements and rates start as low as 3.125%.
Flagstar Bank consolidated the features and eligibility guidelines of the current Jumbo Fixed, Doc. #5413 and Jumbo Express, Doc. #5432 products into a single new Jumbo Express product.
Carrington Mortgage announced more Guideline Enhancements to Non-QM. Carrington Prime Advantage (660+ FICO) now offers an increased max loan amounts to $3,500,000 and increased cash-out amounts to $750,000. Escrow waivers are permitted, exceptions apply. Additionally, the Carrington Investor Advantage (DSCR) has an increased max loan amount to $2,000,000 and cash-out amount to $750,000.
PCF Wholesale’s EZ-DSCR- FAST & EZ program offers no income, no employment & qualifying off the interest only payment.
The ACC Mortgage ITIN program is for borrowers who live and work in the US, with a valid ITIN number and file US tax returns under their ITIN number. Borrowers can be W2 or Self-Employed.
Deals are priced instantly utilizing ACC's pricing engine: NONQMPRICER.com
Maxwell Capital is a new, innovative secondary market solution that powers better margins for local lenders. Designed exclusively for lenders who trade between $100 million and $5 billion yearly, Maxwell Capital acts as a dedicated investor providing an enhanced way to sell loans on the secondary market. By leveraging real-time data analysis, Maxwell Capital provides faster and higher quality pricing to lenders. In turn, lenders can pass on meaningful rate improvements to their borrowers and to their bottom line. Want to learn how Maxwell’s latest offering can transform your economics and boost your ability to compete? Click here for more information or request information now.
Rates shot higher and have stayed there (for now). There’s sure “a whole lotta” economic data and headlines out there swaying investor sentiment. There is a global energy crisis that is getting more serious ahead of the winter. Inflation is also rising. Eurozone inflation is the highest in 13 years, while at home, inflation registered a 30-year high for August as demand and supply chain problems drove higher prices. The Fed does intend to let it run hot for a while in order to bring up the running average to 2 percent. The September ISM Manufacturing Index expanded beyond expectations, marking the 16th straight month of expansion for the manufacturing sector. Demand is strong, but manufacturers and suppliers continue to experience supply chain bottlenecks. The final print for the University of Michigan's Index of Consumer Sentiment was bumped up, though sits well below its level from a year ago. Consumers are starting to postpone purchase activity, particularly for higher-priced homes, vehicles, and durables, on a belief that price spikes will be transient. Finally, total construction spending was flat in August when it was expected to increase, most likely due to (stop me when you’ve heard this one before) ongoing supply chain pressures.
Circling back on some other releases from last week, Q2 real GDP growth was revised up slightly to 6.7 percent and is expected to slow in the third quarter, but pick up again in the 4th based on late Q3 data. Overseas, things may not be as rosy as data from China and the Eurozone has softened. U.S. manufacturing expanded in September as indicated by the ISM’s PMI index increase to 61.1. As has been the case throughout much of the recovery, respondents continue to be constrained by increasing commodity prices, supply chain shortages, and difficulty filling open positions. New orders for durable goods increased 1.8 percent in August driven by demand for commercial aircraft.
Consumer spending picked up in August, but so did inflation which affects the nominal dollar amount. When accounting for inflation, real spending increased 0.4 percent in August and prices were up 4.3 percent from one year ago. Housing prices continued to climb in August, however the pace of increases may finally be slowing with the Case-Shiller House Price Index showing a 1.5 percent price increase at the national level in July. Meanwhile purchase mortgage applications declined 1.2 percent for the week ending September 24 and are down 14.1 percent from their level one year ago.
Turning to this week, attention shifts to the jobs market with ADP on Wednesday and the payroll report on Friday. We also receive other updates including factory orders, trade, nonmanufacturing PMIs, Challenger job cuts, and wholesale trade after payrolls on Friday. The Desk is scheduled to purchase an average of $5.1 billion per day, with agency prepayments released after the close on Wednesday with Class A 48-net out on Friday. This first full week of October gets off to a quiet start with the only data point coming in the form of August factory orders later this morning. We will also receive remarks from St. Louis President Bullard and interim Boston Fed President Montgomery. We begin the day with Agency MBS prices worse/down .125 and the 10-year yielding 1.50 after closing last week at 1.47 percent.
“Newrez and Caliber Home Loans are proud to announce our President and COO, Baron Silverstein, has been named a winner of the HousingWire 2021 Vanguard Award. The prestigious honor recognizes the top 50 executives in the mortgage industry each year. In 2020, Newrez achieved significant growth under Silverstein, emerging as a top 10 lender with 176% growth during that year. “To be named a HousingWire Vanguard is humbling,” said Silverstein. “One of the most important parts of my role is setting the right tone and culture for my fellow leaders to develop and navigate the peaks and challenges of the ever-evolving mortgage space. We have certainly accomplished that together and I am beyond proud of where our Company is today and what our future looks like.” Join the Team: If you want to join a company that strongly supports retail growth, contact James Hecht.”
Have you always dreamed of being a Credit Risk Officer with the FHA, making 150k bones a year? Here’s your chance: 21-HUD-2110-P. Seems like a decent opportunity!