Surely not everyone was kung fu fighting, right? I hope that we don’t see any fighting after November 3. I love to ask people, who think we’re going to see volatility next week, a) why, and b) what kind? We could very well see no huge jumps of any sort. From a capital markets perspective, it’s not as if the Fed is going to hike short term rates based on the result of the election although the long end of the yield curve may be buffeted by more or less economic shut down. No immediate changes are expected to mortgage rules and regulations. Besides, we may not know the results of some of the elections for days or weeks, especially if anyone ties the results up in court. (Regardless, vote! It’s a right of being a U.S. citizen. 70-80 million have already done so.) Markets certainly don’t like uncertainty or unnecessary moves, however. Anyone else feel like Halloween is unnecessary this year? I mean… I’ve been wearing a mask and eating candy each day for seven months now, and I’m not sure we need a day dedicated to it anymore.

Lender and Broker Services and Products

“We get it, with the rates right now, everyone’s been refinancing. Problem is, with the onslaught of refis and mortgages, you’re leaving valuable loans on the table. Not to worry, Truework can help. Our dedicated team of highly trained mortgage industry professionals at Truework is committed to tackling and completing your VOE/VOI request (whether manual or automated) so you can close your loans faster than ever. Truework is a U.S.-based company and has partnered with major lenders across the country to conduct 100,000+ verifications and counting. We’re also excited to announce that reverifications are now live: reverify employment for any request within 90 days of the original, receive up-to-date statuses on all reverification reports, get fast turnaround times, and see discounted rates, making Truework your one-stop shop for all verifications. And Rob Chrisman readers get 5 free Verifications ($200 value). Let us do the heavy lifting so you can focus on what matters. Interested? Email Zackary Green.

More than ever, consumers are demanding the speed, convenience, and safety of a fully digital close. With new innovations in Black Knight’s industry leading Expedite® Close solution, a fully contactless real estate transaction is now a reality. Expedite Close supports all types of real estate closings and easily integrates with the systems used by lenders and title agents today. The solution’s new innovations include unique capabilities that guide a borrower though an eClosing, providing the information a title agent would typically give at the closing table. Expedite Close also allows you to complete a remote online notarization. Lenders, settlement agents and borrowers will find Expedite Close easy to use. And, with the solution’s quick implementation timeline, lenders can start offering a complete digital closing to borrowers right away. Learn more about the exciting new capabilities in Expedite Close in a complimentary, prerecorded webinar here.

Better Direct Mail Marketing for Mortgage Lenders from Monster Lead Group! How is JFQ Lending scaling to $4.2 Billion this year? With better direct mail marketing from Monster Lead Group. “Somebody can charge me half as much as you guys do, but I can’t get beyond the level of your results. For me, service means a hell of a lot and the results speak for themselves.” (John Kresevic, President of JFQ Lending.) Get started driving consistent phone calls and predictable ROI from your direct mail, like JFQ Lending, by visiting

Control your pipeline and let your earnings flow. Independent mortgage brokers are diving into this booming purchase and refinance market and making more money. There’s never been a better time to join or become an independent mortgage broker and take control of your pipeline. Unlike online retail lenders and banks, you have unlimited earning potential and can serve as many clients as you like. And you’ll have access to a range of wholesale lenders to partner with and keep business flowing in the right direction with cutting-edge technology and service. There’s never been a better time to go independent — take control of your bottom line today at

An Exciting New Partnership for Volly & Home Captain! This partnership and seamless integration will allow Volly lending clients to utilize Home Captain’s concierge and technology offering throughout the home buying and mortgage origination process and facilitate greater collaboration between loan officers, realtors, and their joint customers. Click here to schedule a demo. 

Adverse Market Reminders

Recall the gyrations that the FHFA put the residential lending business through in early August, and then August 25, with the implementation date of the refinance fee for Freddie and Fannie loans. The impact of that fee on lenders & borrowers, and date change to 12/1, is important to summarize.

The PennyMac Correspondent Group posted multiple new announcements: Adverse Market Refinance Fee Update in Announcement 20-62. Updates to Conventional and Government LLPAs in Announcement 20-64. Announcement 20-63: COVID-19 Flexibilities Extended, 4506-T, Reuse of DU Case File ID and UW Help Transition. Recall that PennyMac had posted these announcements: 20-55: Adverse Market Refinance Fee LLPA Update and 20-56: Extension of COVID-19 Flexibilities and Tax Transcripts.

The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to delay implementation of the Adverse Market Refinance Fee until December 1, 2020. In order to align with this implementation date, while at the same time keeping consumers in mind with the intent to provide as much flexibility as possible and avoid implementing the fee where it is not necessary, PRMG will begin feathering in the price adjuster of 50 basis points (bps) on applicable conventional conforming refinance transactions.

To provide the most accurate Mandatory Commitment pricing based on the Loans’ likely purchase timeframe, Wells Fargo Funding will include the 50-basis point (bps) Agency refinance loan-level price adjuster (LLPA) in bid tape transactions beginning October 26, 2020. As with other LLPAs, the 50-bps Agency refinance adjuster will not be included in live price quotes obtained over the phone from the Mandatory Trade Desk.

Mountain West Financial Wholesale issued Bulletin 20W-109 outlining its implementation schedule regarding the Reinstatement of Conventional Refinance Adverse Market LLPA.

Pursuant to the Federal Housing Finance Agency (FHFA) guidance provided on August 25th,  will be re-implementing the -0.500 Adverse Market Refinance Fee effective for all Agency locks on or after Tuesday, September 15. (On August 25, 2020, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to delay implementation of the Adverse Market Refinance Fee until December 1, 2020.)

In alignment with the Fannie Mae and Freddie Mac Adverse Market Refinance Fee implementation date, Plaza Home Mortgage will begin applying the .500 Adverse Market Refinance Fee to locks as outlined here. 60-day locks - effective Tuesday, September 8, 45-day locks - effective Tuesday, September 22, 30-day locks - effective Wednesday, October 7, all new locks regardless of term - effective Thursday, October 22. Note that all lock extensions or relocks taken after November 13, 2020, and any loan purchased after November 13, will be subject to the Adverse Market Refinance Fee.

U.S. Bank issued P-2020-13A: Revised - Delayed: Adverse Market Refinance Fee.

Effective immediately all PCF Wholesale Conventional R&T and Cash-Out refinance locks with loan amounts greater than $125K, that were locked on or before September 25th and are still active, will NOT be subject to the FHFA Refi Adjustment of -0.500, regardless of when they fund. All lock extension fees still apply. Further, any previously expired lock or any lock that is allowed to expire will be subject to the -0.500 FHFA Refi Adjustment upon relock.

LoanStream is committed to serving its customers and their clients, LoanStream will absorb the 50bps Fannie/Freddie refinance fee effective December 1, 2020. This offer is subject to change at any time. Contact your Account Executive for details. Offer is good for locked loans through December 31st, 2020.

Caliber Home Loans issued an announcement, effective immediately, any Conventional Refinance Mortgage for which an extension is requested, and the new extended Lock Expiration Date is after Oct. 21, 2020, a 50-basis point LLPA will be assessed, following GSE guidelines. The LLPA will not apply to loans already assessed the 50-basis point agency refinance fee. The Commitment Confirmation will automatically adjust to reflect the 50-basis point LLPA within 24 hours of the loan extension with Caliber. You can then pull a new lock confirmation from the Correspondent Lending Portal.

Capital Markets

Slow economy = low rates. Bond prices rallied and yields dropped yesterday, pushing mortgage rates and Treasury yields to one-week lows as equity markets experienced the biggest sell-off in weeks and coronavirus infections continued to rise, fueling expectations for more restrictions on movement and commerce both domestically and abroad. The UMBS30 ended tighter, except 1.5%. Much like when I was reporting on Brexit happenings or trade war news, the lack of a pre-election coronavirus bailout package has become tiresome (I’ve said it will not happen for several weeks now – and it will not). Total durable orders increased in September, well beyond expectations as business spending continues to rebound. New orders for key U.S.-made capital goods rose more than expected in September, solidifying a quarter of likely record growth in business spending and the overall economy. The Conference Board's Consumer Confidence Index fell below where it was expected to be in October as consumers are feeling less confident about the short-term outlook due to the recent rise in coronavirus cases and persistent high unemployment levels. Finally, October prepayments were unchanged versus expectations, with FN30 and GNII speeds slowing 4% on average month-over-month, and slightly less (-3%) on FN15s.

MBA mortgage applications for the week ending October 23 (+1.7%) led off today’s economic calendar. Applications dovetailed nicely with record lows in the 30-year rate per Freddie Mac’s latest market survey, though the 10-year Treasury yield did increase 10 bps over that same time period. We’ve also had some advanced indicators for September, with a goods trade deficit of (narrowed to $79.4 billion) and retail and wholesale inventories (+1.6, +.1 respectively). Later today the Treasury is selling $55 billion of 5-year notes. Today’s Desk support is a repeat of yesterday, with three operations totaling up to $5.6 billion MBS. We begin the day with Agency MBS prices better/up a few 32nds and the 10-year yielding .75 after closing yesterday at 0.78%.



Annaly Capital Management Inc., through its taxable REIT subsidiary Onslow Bay Financial LLC, is looking for a Senior Credit Manager responsible for helping to oversee the development of the firm’s new origination, residential whole loan aggregation channel. The manager will be responsible for drafting and maintaining the company’s underwriting guidelines, overseeing the firm’s scenario desk, helping to manage and opine on third party diligence in addition to overseeing a pre-close review vendor based underwriting model. The ideal candidate will have 10+ years of experience in the oversight of residential loan level underwriting and mortgage due diligence. Candidate should have a deep understanding of various product guidelines including Non-QM, DSCR/Business Purpose, Foreign National/ITIN, Agency DU/LP and Prime Jumbo. Annaly Capital Management Inc. (“NLY”) is the largest mortgage REIT with approximately ~$14bn in permanent capital. Annaly has been a public company for over 20 years and has paid >~$20bn in dividends since inception. Since 2018, Annaly has securitized >$5 billion of new origination residential whole loans across twelve rated transactions. The Residential Credit portfolio, comprised of whole loan and residential security assets, had $2.6bn in assets with $1.2bn of deployed capital as of Q2 2020. Please visit for more information.

At Stearns Wholesale Lending, it’s all treats and no tricks. Although 2020 has presented challenges with working remotely, Stearns has embraced the new normal and sustained and strengthened its company culture with team-building exercises and fun and rewarding opportunities. Since the pandemic, Stearns have supported the work-life balance with extra PTO and a mandatory no work weekend for its Closers, AMs, and Underwriters. A full day off was given to encourage wellness to pause, regroup, and come back with a greater level of energy and a fresh, less-stressed perspective and a half-day was given to foster community involvement to go vote in this year’s election. Stearns has also implemented the Sights & Sounds quarterly contest, which focuses on the compliments from clients on the fantastic work of its employees, with winners receiving a $1,000 prize for their efforts! If you want to learn more about the benefits of the Stearns culture, or partner with Stearns, click here to be contacted.

“Nationwide Mortgage Bankers (NMB) is proud to announce our excellent company culture has earned a spot on the Great Place to Work US Fortune Best Small & Medium Workplaces™ 2020 list. Jodi Hall, President of NMB, said, ‘We are building an organization on core values which earns us a spot in Great Place to Work for several years in a row. This proves that we have the most passionate, driven, dedicated, and innovative employees not only in the mortgage industry but in the country and across all sectors.’ NMB provides fantastic benefits and believes in creating a different culture where everyone contributes to its success and is rewarded. We hire and retain top talent in the industry, providing them the training, support, and leadership to grow their careers at NMB. NMB believes that by placing our employees with their experience and goals, we can help their professional growth. Join our passionate team today! Apply Now.”

Opportunity abounds at Thrive Mortgage!  This is because Thrive believes that its greatest asset is its people. Thrive recently celebrated the promotion of Donielle Geiser to VP of Operations, but what’s really worth celebrating is the story of Donielle’s career with Thrive. Beginning as a Branch LPP in 2014, Donielle quickly established herself as a very knowledgeable resource regarding guidelines, operational efficiency, and loan strategy. Her path led her steadily up the ranks within the Operations Division from Team Leader, to Processing Department Manager, to becoming the Director the most efficient and powerful loan manufacturing processes in the industry. In a recent interview, Geiser stated, “Growth is synonymous with Thrive Mortgage. My mission as a leader in this company is to cultivate other leaders and prepare them for new opportunities they may have never imagined possible themselves.” To learn more about your new opportunity to Thrive, visit