Think you won’t be impacted by anti-U.S. sentiment in Russia? Think again. The Cybersecurity and Infrastructure Security Agency (CISA) issued two alerts to all U.S. companies addressing risks from Russian sponsored cyber threats and highlighted that recent cyber incidents in Ukraine contain similar destructive malware deployed previously: Understanding and Mitigating Russian State-Sponsored Cyber Threats to U.S. Critical Infrastructure and CISA Insights: Implement Cybersecurity Measures Now to Protect Against Potential Critical Threats. A wise old loan officer once told me, “Poor salespeople talk themselves into failure, good salespeople talk themselves into success.” She has since retired. Yes, people retire from our industry, and here’s a very short, humorous girlboss comment mentioning retirement. There is definitely some new blood entering our business, which is good to see. Different age groups have different priorities and have different trivia. Someone who is 25 doesn’t care who made up the Jackson 5, and someone who is 55 doesn’t care who the character SpongeBob SquarePants’ neighbor is. Do your MLOs match the demographic of the borrower you’re trying to attract? Is a 32-year-old first-time home buyer going to want to use a 69-year-old originator sticking around for one more refi boom, or will the buyer prefer to use a 39-year-old originator who is competent and trained on the latest technology? (Today’s audio version of the commentary is available here and this week’s is sponsored by TMS, a top 10 subservicer with a 98 percent customer satisfaction rate. TMS is on a mission to “Grow Happiness” and delivers next level service with their award-winning proprietary technology, SIME. Today’s features Interview with Josip Rupena, Founder and CEO of Milo, a financial technology company that offers home loans to global and crypto consumers.)
Auditing, Tax Service, and Beyond
“At Richey May we dig in and go deep. We have been focused on the mortgage banking industry for over 35 years. It’s where we came from and it’s what we know. This singular intent has created a full suite of services and products designed specifically for mortgage banking leaders by people who truly know the ins and outs of your operations. Our goal is to equip mortgage leaders with the best, whether that means you are utilizing our game-changing platforms or utilizing our experts as an extension of your team, so you can accomplish your goals more easily and stay ahead of the curve. From audit and tax to accounting services, cybersecurity to intelligent automation, and business intelligence, we have you covered. Contact our experts today to learn more about how we can help you reach your goals.”
First, a clarification from yesterday! Pertaining to the correspondent channel, and not retail or wholesale. Updated LLPA information was issued by Citizens Bank advising that effective for locks on Monday, January 10th a new price adjustment will be applicable for transactions meeting the following parameters: Cash-Out Refinance / LTV >70 / Loan Amount >$350k. Pricing for these transactions will be worsened by 5 basis points (.0005) and the rate sheet will reflect this LLPA beginning Monday. Correspondent!
With Fannie & Freddie raising their loan limits, but then changing loan level price adjustments for high balance loans, pricing loans through jumbo conduits has made lenders reevaluate options.
loanDepot Wholesale is now offering SOFR ARMs on its Jumbo Advantage Express program giving you more options for Jumbo Borrowers. Available for primary residence, second home, and investment properties. Purchase, rate/term, and cash-out refinances. Loan amounts up to $2,000,000 and 80% LTV/CLTV. Credit scores as low as 700. 7/6 and 10/6 terms available. Refer to the Jumbo Advantage Express program matrix for more details and contact your Account Executive today with any questions (Borrowers qualify at greater of the note rate or the fully indexed rate. ARM loans are assumable with borrower qualification and lender approval after initial fixed period. Refer to the loanDepot Wholesale Jumbo Advantage Express Matrix and Lending Guide for full program details.)
First Community Mortgage announced a New Product. Find out more about its Select 90 Jumbo in FCM Announcement 2022-2.
Effective Friday, January 14, 2022, Flagstar’s Jumbo One Close Construction, Doc #5724 will be updated with the information listed within Flagstar Bank Memo 22011.
PRMG announced the release of the updated Diamond Jumbo Product. This is a non-conforming/jumbo product that utilizes Fannie Mae's DU findings for underwriting with limited additional requirements. Loans amounts are available from $50,000 to $2,000,000, LTVs are allowed to 85% and no MI is required. An on-demand webinar can be found on PRMG University's YouTube Channel here or you can attend one of the following training webinars to learn more about the program.
Mountain West Financial is now offering the MWF Jumbo AE and AP programs. Check out MWF Announcement 22W-002 for program highlights.
Effective January 19th, new locks with Fairway Wholesale Lending will see the Jumbo Non-Agency AUS Program expanded to include loan amounts up to $3,000,000 for all transaction and property types. Additionally, the minimum loan amount requirements have been updated to include high balance loan amounts. For full program guidelines, refer to Fairway Wholesale Lending’s Jumbo Matrices and Guidelines, accessible after logging into DRIVER.
First Community Mortgage posted a new Jumbo Product Quick Guide/Comparison document to assist business partners in the review/comparison of FCM Jumbo. Now available and located under Product Guides in the FCM Knowledge Center.
Wells Fargo Funding updated its Non-Conforming Loans policies for Condo and Co-Op project requirements to align with Fannie Mae. Projects with significant deferred maintenance or significant special assessment requirements are ineligible. Two new forms have been introduced that will be required. Also included in Wells Fargo Newsflash C21-065, details Seller Guide updates to better reflect Non-Conforming PerformanceWorksSM plan information policy and process there is no change to the policy.
Capital Markets React to Fed News
We saw yesterday that the U.S. economy grew more than expected in the final months of 2021, fueled by inventory growth, especially motor vehicles, and rising consumer spending dominated by services. Quarterly GDP growth (6.9 percent) was the strongest in more than a year, following a 2.3 percent increase in the third quarter. The PCE Price Index, the Fed’s preferred measure of inflation, rose 6.5 percent, a red flag as it is well above the Fed's 2 percent target rate. Unfortunately, real disposable income, reflecting the inflation rate and wage increases, decreased 5.8 percent. If wages don't keep up with inflation, this prevents it from feeling like the economy is growing as fast as it is.
Fortunately, the economy is exhibiting strong signs for American workers, with jobless claims declining for the first time in four weeks and unemployment at pre-pandemic levels. However, the market continued responding to (aka repricing after) the FOMC Statement, which indicated that a series of rate hikes are being planned for this year, and potentially larger and faster rate hikes than previously expected. The Treasury yield curve is now at its flattest since 2020 as the 2s10s spread has tightened by 15 bps to 62 bps and is 14 bps tighter for the week.
Other economic data released on the day yesterday was mixed relative to expectations. December Durable Goods Orders posted their first decline (-0.9 percent) in three months due to a slowdown in business spending, missing estimates along with Pending Home Sales (-3.8 percent). The day's $53 billion 7-year note auction was met with solid demand, capping this week's strong slate of note auctions despite the market's focus on the Fed's rate hike plans.
The Fed looks set to undertake what could potentially be the biggest and fastest tightening of global monetary policy in years. The recent hawkish shift does not rule out rate hikes at every FOMC meeting for the rest of 2022. Traders are bracing for higher borrowing costs, and MBS have been clobbered since the announcement, dropping about a point as investors don’t want to “catch a falling knife.”
Today’s economic calendar is underway with personal income and spending (+.3 and -.6 percent, respectively), the core PCE Price Index (+.5 percent), and Q4 employment costs (+1.0 percent, wages & salaries +4.5 percent). Later this morning brings final January Michigan sentiment and the Desk conducting the last two operations on the current schedule for up to $3.5 billion. In the afternoon, the Desk will release a new MBS purchase schedule covering the January 31 to February 11 period, which should include more operations targeting 3 percent in 30-years and potentially 2.5 percent in 15-years. We begin the day with Agency MBS prices worse .125-.250 and the 10-year yielding 1.84 after closing yesterday at 1.81 percent.
A private mortgage company in Northern New Jersey is looking for a Head of Mortgage Underwriting. At least 10 years of experience with a proven track record of management. This is in-person position. Salary $180k+ and bonus for the right candidate. If interested, please reach out to Chrisman LLC’s Anjelica Nixt; specify this opportunity.
A mid-sized, independent mortgage bank based on the West Coast is seeking a Director of Capital Markets to lead its Retail and Wholesale Pricing, and Secondary Market & Post Close teams. The ideal candidate will be proficient in Optimal Blue and Encompass and possess a minimum of 5 years’ experience monitoring and analyzing secondary market trends, successfully modeling and managing pricing and pipeline risk in accordance with regulatory, agency (Fannie Mae, Freddie Mac, Ginnie Mae) and investor requirements, ensuring the on-time delivery of mortgage loans, and developing policies, procedures and initiatives to promote efficiency within the department and competitiveness in the industry. For more information or to request and interview, please send your resume to Chrisman LLC’s Anjelica Nixt; specify this opportunity.
“Coming off a record year with $3.9B in non-QM originations, Angel Oak continues its mission of helping underserved borrowers. To that end, Angel Oak Mortgage Solutions is looking to hire operations staff in both Atlanta and Dallas and account executives across the country. While others are slowing down, we are growing! Help us get to $7.5B in non-QM by joining our fast-paced and service-oriented organization. We provide excellent training, benefits, innovative products, and a positive, fun culture. Grow your career and have a great time while you're at it with the Leader in non-QM! Click JoinAngelOak.com to learn more.”
“With rates continuing to rise and the refi boom in the rear-view mirror, it’s time to take the next step in your career with Arc Home Loans. We are looking for well-established and successful Account Executives in key markets to support our wholesale, non-delegated and delegated correspondent clients. Arc Home LLC offers a diverse product set including Non-QM, Non-Agency, FNMA, FHLMC, GNMA along with top technology and marketing tools to make your job easier. Also, as an Account Executive at Arc Home you get the benefit of selling all these products to both wholesale and correspondent clients. If you are looking for a change speak directly with our EVP, Chief Production Officer, Katherine Gardner today, 303-589-2227 or apply here.”
Towne Mortgage Company, an established national TPO lender, is looking for an energetic and driven Regional Manager to continue to drive the Company’s tremendous growth. The Company is a FNMA/FHLMC/GNMA seller/servicer and retains nearly all of its servicing in house. The TPO team benefits from the ability to sell 3 lines of business within unsaturated markets across the country, as well as a very competitive compensation/ benefits plan and a supportive organization that operates like a family. Success at this company is driven from a culture of teamwork, experience in TPO and an understanding and appreciation for the outside sales model. Tired of being lost in the shuffle of big company changes and lack of direction? If this sounds like the opportunity that you have been looking for, please contact Mark Zierott for more information and to arrange a confidential conversation.
Loan Simple adds two top producing retail branches in Virginia. “We are thrilled to welcome two top producing branches led by Russell Kesterson and Joe Harris to the Loan Simple organization. We have no doubt they are going to continue to grow their retail production and provide a world class experience for the families they serve," said Brian Mitchell, EVP, Distributed Retail. Loan Simple provides an entrepreneurial business model that is built off of transparency and accountability across senior management which enables mortgage professionals to grow their business with less restrictions. For more information, please contact Brian Mitchell at Loan Simple, Inc. NMLS #3032. 9635 Maroon Circle, #100, Englewood, CO 80112.
“Wyndham Capital Mortgage is taking our online advantage and applying them to our new retail channel. We’re looking for leaders to help transform how retail lending is done. As a leader in our retail lending team, you’ll benefit from a relentless commitment to our loan officers and our customers. We want to extend our value of zero junk lender fees, our $5,000 closing cost guarantee, and superior operations to empower successful loan officers looking to compete at the next level. Strong leaders are focused on helping their teams, and Wyndham Capital offers retail loan officers a competitive edge on price, the ability to close loans faster than most, and the culture to support them professionally and personally. Ready to start an incredible journey and impact an entire channel? Click here to learn more about becoming a Regional Director, or reach out to us via email for additional information.”
How much did you grow your business in 2021? Last year marked another year of growth at Supreme Lending. The Dallas-based independent lender served 53,686 families nationwide and funded $16.01 billion in total loan volume in 2021. Fueling this growth was the addition of 124 new branches, a 35% increase from the previous year. The company’s overall headcount grew by an extraordinary 23.5%, bringing the lender’s totals to 477 branches and 2,920 team members across all 50 states. Supreme’s servicing portfolio also grew to $15 billion, reinforcing the lender’s focus on building customers for life. Other impressive stats include: 98.4% overall customer satisfaction rating with a 67% response rate; 98.3% loans closed and funded on time; and 60.5% purchase business. If you’re ready to grow your business in 2022, contact National Production Manager Ryan Baxter.
Amerant Mortgage, LLC, a subsidiary of Amerant Bank, the second-largest community bank headquartered in Florida, announced that Tony Eelman is its new President responsible for the overall corporate strategy and operational execution of business initiatives.