Fun with numbers! 1: the number of Chinese surveillance balloons over Montana. (That we know of.) Did you know that the last day of 2023 is 123123? (You heard it here first!) While we’re on random numbers, Atlanta has almost 25 thousand surveillance cameras, grabbing the honors as the most heavily surveilled city in the U.S. with 50 CCTV cameras for every 1,000 inhabitants. (“The research also suggests that there is little correlation between higher camera figures and lower crime indexes.”) Shifting to mortgage-related numbers, given the Fed news this week, overnight interest rates aren’t the same as 30-year mortgage rates, of course, but moves in interest rates impact a potential borrower’s ability to buy a home in a given price range. Here’s a handy-dandy chart for LOs to help borrowers to see how rates impact affordability. With generic rates in the 6’s for home loans, LOs are keenly interested in how that compares to, say, student loan rates. Federal student loans for undergraduates currently have an interest rate of 4.99 percent for the 2022-23 school year, while grad students have interest rates of 6.54 percent or 7.54 percent for unsubsidized loans or Direct PLUS loans, respectively. Private student loan interest rates range from 2 percent to 14 percent and are based primarily on one’s credit score. Keeping with the homeowner theme, today’s podcast can be found here and this week’s is sponsored by Milestones. Giving homeowners an all-inclusive homeownership experience including home value and equity monitoring, home maintenance reminders and how-to articles, cloud-based document storage, one-click access to hire professionals for various projects around the home, and much more.
Lender and Broker Software, Products, and Services
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Ever find yourself playing a losing game? Today's mortgage industry can feel like that! A Finite Game is one that has a defined ending, with clear winners and losers. An Infinite Game, on the other hand, goes on indefinitely. The object is to simply keep playing. To stand the test of time. To get up and play again the next day. And the day after that. Here are two steps to play the Infinite Game in today's market: (Step 1) Pick a niche - e.g., financial advisor referrals, Hispanic or first-time homebuyers, etc. (Step 2) Dominate that niche as the #1 trusted advisor for that market. If you’re interested in that idea, click here to get started with your free trial of Momentifi’s 150+ homebuyer and referral partner education content pieces personally branded with your info. Team leaders and vendors can click here to inquire about an enterprise or strategic partnership with Momentifi.
“Get control over the cyclical nature of the market. Cycles come and go in the mortgage business – and sometimes they stick around longer than we’d like. Richey May Advisory can help you manage the ups and downs without adding or reducing headcount. As a nationally recognized mortgage industry leader, we have the specialized training to analyze problems and develop practical solutions for every facet of your operation, from accounting to underwriting. Does your accounting team need loan-level support? We can deploy experienced accountants to work alongside your team, so you can finish the year strong without adding staff. At Richey May, mortgage banking is at the core of our business. Our expertise comes from years of working with lenders, warehouse banks and financial institutions across the country. Reach out or visit us to learn how we can help you achieve a scalable, sustainable approach to managing market cycles.”
Training and Events in February
I know that I have been remiss in making updates, but a decent attempt at all the conferences this year can be found here.
Today at noon PT is the next edition of The Mortgage Collaborative’s Rundown with Rich Swerbinsky, and me. We’ll will be covering current events in the mortgage market for 30 minutes starting at noon PT in “The Rundown with Rich and Rob”!
There’s National MI’s upcoming February 2023 webinar sessions. Training topics cover a wide range of subjects. Find out The Basics of Underwriting the Self-Employed Borrower with Marianne Collins on Feb. 15 at 10am PT / 1pm ET
The new year is the ideal time for upskilling and earning your Real Estate Loan Compliance Certification will help you overcome the market downturn and fuel career growth. Register for BankersWeb training series, five sessions total beginning with Session 1 - The Lifecycle of a Mortgage Loan: Part One on Monday, February 6th at 12:00 PM Eastern; 9:00 AM Pacific.
Regulatory compliance counsel Michael Christians will explain the compliance requirements applicable to real estate loans. You will learn how to please borrowers while reducing liability for your institution. Can’t attend the live sessions? You can choose the self-paced certification option and get expert answers to your questions after the sessions.
This year TMBA's annual Southern Secondary Market Conference February 6th – 7th, will bring together hundreds of real estate finance leaders and decision makers. Held at the Westin Houston Memorial City Hotel, all conference attendees are eligible to play in a Poker Run event. No poker playing experience is needed, the cards speak for themselves. TMBA’s Warehouse Conclave will be held in conjunction with the Southern Secondary Market Conference on February 6th from 12:00-2:00 pm. *Separate registration required.
Fannie Mae’s Senior Vice President and Chief Economist Doug Duncan says housing will lead the economy through what he considers will be a mild recession in 2023. Join the Economic Forecast Series Webinar, Tuesday, February 14th @ 1 p.m. ET, to hear Doug expand on that and the outlook for the housing market.
MBA Servicing Solutions Conference and Expo is February 21-24, 2023 in Orlando, FL. Take a look at what awaits you in Orlando so you can start making plans to attend MBA's Servicing Solutions Conference & Expo.
MBA's Servicing Solutions Conference & Expo, February 21-24 in Orlando, is where servicers have an opportunity to share information, connect with industry peers, and discover new direction to lead you on the roadmap. Don’t miss the General Session: Executive Perspectives - Leading through Change and Uncertainty to gain insight from top executives on how they led their organizations through the pandemic. Hear perspectives for a proactive approach to crisis preparedness, response to climate events, and how to build solutions resulting in greater resiliency.
The secondary markets for mortgages is alive and well, for the most part. The latest example is Angel Oak Capital Advisors, LLC (“Angel Oak”) recently announcing the issuance of AOMT 2023-1, an approximately $580.5 million securitization backed in part by loans originated by Angel Oak affiliated lending companies. The senior tranche of the AOMT 2023-1 received a AAA rating from Fitch Ratings.
As markets continued to digest the Fed's move from Wednesday (the Federal Open Market Committee voted unanimously to hike the fed funds rate by 25 basis points to a target range of 4.5 percent to 4.75 percent and signaled that the tightening cycle is not done), there were more rate hikes from the Hong Kong Monetary Authority, European Central Bank, and the Bank of England. The HKMA followed the Fed's rate hike in customary fashion, while the ECB and BoE hiked by 50 basis points apiece. Despite the hikes, the central banks did show signs that their hiking cycles could quickly go from pricing pauses to pivots.
Separately, lenders took not that this week’s Primary Mortgage Market Survey from Freddie Mac saw mortgage rates decline for the fourth straight week. The average 30-year and 15-year rates declined 4 basis points and 3 basis points versus the prior week to 6.09 percent and 5.14 percent, respectively.
Big change in jobs but no big changes in earnings!? Today we’ve had the headline-grabbing January employment report. We learned that the U.S. economy added 517k jobs over the last month, totally blowing through the estimated 220k estimates. The unemployment rate fell to 3.4 percent and average hourly earnings rose 4.3 percent for the year, as expected. Later this morning brings the final January S&P Global Markets services PMI and ISM non-manufacturing PMI. After the data we begin the day with Agency MBS prices worse .250-.375 and the 10-year yielding 3.47 after closing yesterday at 3.40 percent.
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“NOVA® Home Loans has a rich history of financial strength and stability, and for over 40 years NOVA® has thrived in all market conditions. We are looking to have conversations with Regional & Branch managers as well as originators looking for a home built by Loan Officers for Loan Officers. We spend more to support our Loan Officers than our peers. At NOVA®, you receive dedicated resources for underwriting, processing, closing & funding, fulfillment, business development, credit services, marketing collateral, and more. To learn more about the NOVA® advantage that will help you close more loans, visit us & please reach out to Jenny Skaggs, Director of Recruiting & Corporate Engagement, 520.202.4102.”
“If you’re ready to take your business to the next level, First Home Mortgage is ready for you. We are a FNMA/FHLMC/GNMA full-service residential lender licensed in 21 states, and we’ve excelled for over 30 years. First Home continues to expand across the entire east coast, and we’re looking for successful loan officers who want to level up. If you think you’ve plateaued, think again: You may just need the First Home Multiplier. Check out this video to hear from some of our top producers who have doubled and even tripled their business by leveraging our infrastructure and support systems. The average originator’s production grew by 92% from year one to year two leveraging the First Home infrastructure in the eight years preceding the 2020-2021 industry volume surge. If you’re ready to put the First Home Multiplier to the test, contact our president, Steve Lagana or 410-933-3100.”
You can’t fix tomorrow's problems with yesterday's technology. The good news is Canopy Mortgage created tomorrow's technology. Canopy provides a better way where you gain ultimate control with its proprietary Loan Origination System. Canopy’s tech was developed by industry experts for top producers. An independent study by the STRATMOR Group recently found that Canopy’s tech reduces the cost to fund a loan by up to 35%: Finally a better way! A better business model that is sustainably good for every party involved in the mortgage process. Reach out to Josh Neumarker at Canopy Mortgage for more information (888-696-9076).
Draper and Kramer Mortgage Corp. announced that Matt Patterson has been named President. Patterson is an industry veteran and leader with 35 years of experience in mortgages who joined the company in 2014 as EVP of Business Development, and will focus on company operations while CEO Paul Lueken will continue to provide executive oversight.