“Rob, with the announcement a while back that Quicken Loans inked a mortgage deal with Charles Schwab, and now with Schwab buying TD Ameritrade, do you think Quicken will go after those customers as well?” Gee, do ya’ think? And for anyone selling loans, or originating loans, I received this note yesterday. “Rob, have you heard of the IRS’ Taxpayer First regulations that take effect on December 28th? As I understand it, a new disclosure form is required if you’re passing any tax return information on to third parties – like an investor. True?” Yes, more documents to fund any loan that will be sold! The lending industry is focused on disclosures by the IRS, and as I understand it, any information provided by the IRS from December 28 on falls under this. Click on the link above and look for the, “Notice to taxpayer of IRS contact with third party.” Your compliance people should formulate a policy regarding this and the commonly used 4506-T form. (Carter Gladstone at 4506-Transcipts.com has more information regarding this and whether more disclosures are needed to stay compliant. And no, this is not an ad.) Lots more compliance and CFPB news below.

Lender Products and Services

A property management company faced significant obstacles liquidating a large portfolio of lower-value assets in need of varying levels of maintenance and repair in hard to access rural communities. Traditional real estate marketing channels had been unsuccessful and the company struggled to maintain adequate exposure of these assets, resulting in longer marketing timelines averaging six months. Altisource® increased asset exposure for this client through its industry-leading real estate marketing platform Hubzu®, which ultimately resulted in 44% of the client’s properties liquidating within 30 days on market. Download the case study here.

Here’s a new podcast! “You’ve loved its eBooks, you’ve binged its blog posts, and now, by popular demand, the Maxwell team has released its brand new podcast, “Clear to Close”! Each episode of Clear to Close presents a no-BS, unbiased take on the issues impacting the mortgage world featuring topical deep-dives and exclusive interviews with industry thought leaders. In episode one, Bryan and Alan sit down with HousingWire CEO and President Clayton Collins to discuss his passion for financial education, entrepreneurial challenges, and what he’s learned from running a thriving media company. Stream, download, and subscribe to Clear to Close now on Apple Podcasts, Spotify, and Soundcloud (or wherever you get your podcasts). A must listen!

This holiday season, TMS is putting the CARE in CAREspondent Lending. For every new lender that partners with TMS before the end of the year, TMS will donate $250 to Family Reach, a national non-profit dedicated to alleviating the financial burden of cancer. You can sign up here today!

Completing a major financial transaction is an emotional experience. Consumers want to be educated and advised along the way and have a trusted partner they can turn to throughout the process. Mortgage lenders who anticipate their customers’ needs strengthen their relationships and create customers for life. The most successful financial brands are leveraging artificial intelligence (AI) and machine learning (ML) to enhance this ability and develop deeper connections with their customers. However, how do you strike the balance of leveraging technology without losing the human element? Total Expert Founder & CEO Joe Welu breaks this down in National Mortgage News, “Why AI in the Mortgage Industry Needs a Human Touch.”

Home Point Financial believes in turning near misses into home runs. Built from the ground up for challenging loan scenarios, Home Point Edge offers Near-Prime products for those near-miss borrowers, Expanded Access for borrowers with less-than-perfect credit, and dedicated underwriters who know the program inside and out. Features include departure residence flexibility, cash-out to meet reserve requirements, asset utilization, and ratios up to 50%. Learn more here, or cut to the chase and partner with Home Point today.

Remember Compliance? The CFPB?

Don’t forget that the California MBA 2019 Legal Issues & Regulatory Compliance Conference is next week in So Cal. (If you’re there, say hi!) And on 12/11 “join the MBA's Compliance Essentials program (it’s free!) as the presenters will highlight the primary requirements under RESPA's statute and regulations that apply in connection with the origination of mortgage loans, including the anti-kickback provisions in Section 8 of RESPA, the prohibition on required use in Section 9 of RESPA, and a brief summary of consumer disclosures required by RESPA.

Even though we are less than a month away from the official start of winter, last week the Consumer Financial Protection Bureau (aka CFPB) released its Fall 2019 Agenda. On it, for the first time, and as a priority, is a review of the Loan Originator Compensation Rule (LO Comp Rule). The agenda identifies regulatory matters that the Bureau “reasonably anticipates having under consideration during the period from October 1, 2019, to September 30, 2020” as well as long-term regulatory actions that the Bureau is considering undertaking beyond the current fiscal year. The Mortgage Bankers Association points out that “the Bureau has received feedback that aspects of Regulation Z’s loan originator compensation requirements are unnecessarily restrictive.”

The CFPB is now considering “whether to permit adjustments to a loan originator’s compensation in connection with originating state housing finance authority loans[,]” and “whether to permit creditors to decrease a loan originator’s compensation due to the loan originator’s error in order to provide clearer rules of the road for regulated entities.”

But wait… there’s more! Also on the CFPB’s mortgage platter are rulemakings on the Qualified Mortgage/Ability-to-Repay Rule (QM/ATR Rule), PACE financing, and potential HMDA changes. But why take my word for it? The Fall 2019 Rule List can be found here

Not wanting to leave RESPA fans in the cold, the CFPB published a request for information (RFI) on its assessment plan for the TILA/RESPA Integrated Disclosure Rule (TRID Rule). Like prior assessments of the ATR/QM Rule and the RESPA Mortgage Servicing Rule, the TRID assessment will be conducted pursuant to section 1022(d) of the Dodd-Frank Act, which requires the Bureau to assess each significant rule and publish a report of the assessment within five years of the effective date of such rule. Based on the TRID Rule’s October 3, 2015, effective date, “the Bureau anticipates that it will issue an assessment report not later than October 3, 2020.” The assessment will address, among other factors, the TRID Rule’s effectiveness in meeting the purposes and objectives of Title X of the Dodd-Frank Act, as well as the specific goals of the TRID Rule: aiding consumers in understanding their mortgage loan transactions, facilitating cost comparisons, helping consumers decide whether they can afford a loan as offered, etc.

The Bureau notes that the TRID assessment plan “is informed by a cost-benefit perspective[.]” Given this approach, research questions presented in the assessment plan “seek to quantify the costs and benefits of the TRID Rule” by examining its consumer, firm, and market effects. The RFI invites comment on a series of specific questions relating to proposed assessment plan, including the plan’s scope, feasibility, and recommendations for improvement. The Bureau also requests data and other factual information on the TRID Rule’s benefits and costs; comments on unclear aspects of the TRID Rule; and recommendations for modifying, expanding, or eliminating the TRID Rule. The Bureau does note that while these comments will be informative, the assessment is not necessarily the first step to a subsequent rulemaking. Comments in response to the Bureau’s TRID assessment plan must be submitted by January 20, 2020. MBA will prepare a response to the Bureau’s RFI.

Capital Markets

Looking at rates from Monday, U.S. Treasuries (but not so much MBS) reclaimed some recent losses to open the week on the back of mixed data out of Asia and positive data out of Europe. Reports have the Chinese government scheduled to increase penalties for intellectual property infringement, a positive step toward reaching a partial trade deal. That optimism was offset by the People's Bank of China releasing its financial stability report, which noted that the country's economy is facing bigger downward pressures and is unable to eliminate potential risks in the near term. Separately, Japan's September Leading Index missed expectations. Out of Europe, European Central Bank chief economist Lane said that current ECB policy is positioned for an improvement in overall conditions over the next year or two. Fitch affirmed Portugal's BBB rating and Austria's AA+ rating, while Germany had a series of positive business indices. A heavy domestic calendar the next few days should have a larger effect on rates.

With the Thanksgiving holiday Thursday and early close Wednesday, today sees a very busy economic calendar. We already have seen Advance October goods trade balance (down to $66.53 billion), Advance October Retail & Wholesale Inventories (+.3%, +.2% respectively), and the Philadelphia Fed nonmanufacturing survey for November.

Later this morning brings a laundry list: the September FHFA Housing Price Index, September S&P Case-Shiller Home Price Index, October New Home Sales, November Consumer Confidence, the Richmond Fed surveys, and the Dallas Fed Texas services index for November. Additionally, Treasury auctions $41 billion 5-year notes at a closing time of 1:00pm, the same time that Fed Governor Brainard will speak, and an hour before the Fed will release the minutes from the latest discount rate meetings. We begin the day with Agency MBS prices better by a few ticks and the 10-year yielding 1.74 percent after closing yesterday -1 bp to 1.76 percent.



Opus Capital Markets Consultants, LLC, (Opus CMC) leading provider of mortgage due diligence, a wholly owned subsidiary of Wipro Ltd. (NYSE: WIT), a leading global Information Technology, Consulting and Business Process Services company, is seeking a Compliance Officer to act as liaison between business units and compliance counsel. The candidate will be responsible for communication related to changes in legal conditions and monitor compliance systems. S/he will be the resident expert on current and evolving regulations, as well as on historic regulations at both State and Federal levels. The Compliance Officer will work with the training team to assist with further development of materials; will convey Opus’ position in a concise manner and will be responsible for attending and contributing to industry working groups to appropriately communicate and present Opus’ position on varied compliance topics.  For more info contact Anine Cureton.

Attention Post Closing Managers! A lender headquartered in Irvine, CA is looking for an AVP-Funding/Post Closing. The ideal candidate will have 5 years of successful Post Closing management experience, and knowledge of compliance, processing, underwriting, closing, and funding as well. If you have a proven track record of creating efficiencies and improving workflow, and want to be part of a positive and collaborative work culture, please send your resume to mortgagerecruiter4u@gmail.com.

Wyndham Capital Mortgage, the highest consumer-rated digital mortgage lender, announces rapid expansion on the heels of record-breaking performance. The company is scaling its sales teams to meet the demands of its customer growth by debuting a new headquarters in early 2020. Earlier this year the company opened its first lending centers in Kansas City, KS (13 new employees) and Salt Lake City, UT (8 new employees with more in the coming weeks). Wyndham is building an entirely new model for loan officers, offering freedom and flexibility, operational excellence, and comprehensive marketing support. Shifts in the mortgage industry have created a need for experienced loan officers, a need Wyndham can meet. The company’s operations department supports loan offers with dedicated speed teams, robotics, and an all-inclusive marketing platform, resulting in closing timelines 16 days faster than the national average. To learn more about how Wyndham can help you grow your career, visit join.wyndm.co.

Guaranteed Rate is seeking acquisition opportunities with mortgage companies looking to maximize profitability. Guaranteed Rate, the 6th largest retail lender in the country, experienced record growth in 2019, creating a great opportunity to partner with like-minded leaders looking to take advantage of our expertise and economies of scale. If you are an owner or CEO of a mortgage company that is looking for better pricing, increased profitability, lower risk and much less stress and hassle, we urge you to confidentially e-mail Mark Filler to learn more about integrating your business into our platform. 

GO Mortgage is seeking an experienced Business Development Manager (BDM) to serve as an advocate and brand ambassador. The focus will revolve around identifying and targeting industry professionals who are qualified to sell GO Mortgage products. The BDM will perform as a Chief Sales Talent Recruiter and Hiring Manager. Additionally, the experienced BDM will connect branch sales offices with outside mortgage industry partners and create lasting, beneficial relationships. The successful candidate understands people and their motivations and has the ability to apply marketing concepts to live scenarios in a creative fashion. Candidates must have a minimum of three years of recruiting or hiring experience, plus two or more years’ experience in Mortgage Loan Origination. Bachelor’s degree preferred. Position requires travel. Please send resumes directly to Toni Barma.