(Warning: cuteness ahead.) How does it feel to be a loan officer dealing with multiple borrowers on one loan? The study of how people borrow money, and where they’re moving, is of great interest to LOs and lenders, as well as vendors and real estate agents. (Warning: numbers ahead.) Though many believed that the spike in WFH (work from home) workers associated with the COVID-19 pandemic would lead to greater geographic mobility, the number of domestic movers in the United States actually declined from 2019 to 2021. The percentage of people in the United States who moved in the previous year declined from about 14 percent to roughly 13 percent, according to the 2019 and 2021 American Community Survey estimates. In 2019, 7.6 percent of the U.S. population moved to a new residence in the same county; by 2021, that percentage had declined to 6.7 percent. The percentage of those who reported that they had moved the previous year to a new residence in a different county within the same state increased from 3.2 percent to 3.3 percent between 2019 and 2021. Movers to a new residence in a different state increased from 2.3 to 2.4 percent! (Today’s podcast can be found here and is sponsored by SimpleNexus, an nCino company and award-winning developer of mobile-first technology for the modern mortgage lender. Nexus Closing delights homebuyers with a convenient, single sign-on experience that makes it possible to close on a loan from anywhere. Today’s has an interview with FundingShield’s Ike Suri on solutions against title and wire fraud.)
Lender and Broker Services and Software
“In March, Fannie Mae expanded the available options for establishing a property’s market value. If you missed Black Knight’s recent webinar, How New GSE Valuation Options Impact Your Business, it’s not too late. We’re offering a complimentary, on-demand recording of this important webinar, where we explain Fannie Mae’s new “value acceptance + property data” option, discuss what its workflow entails and much more. You’ll also get to hear the webinar’s robust Q&A session as well as an overview of SCOUT℠, Black Knight’s innovative, easy-to-use and cost-effective mobile property inspection application. You can leverage SCOUT to support Fannie Mae’s new option as well as other GSE valuation solutions. Watch our complimentary webinar now.”
Mortgage Capital Trading, a leading mortgage hedge advisory and secondary marketing software firm, announced that it has automated the process of digital TBA trade assignment during the loan sale process for both mortgage lenders and participating correspondent investors. This automation makes assignment of trade loan sales (AOTs) faster, more convenient, and easier for investors to offer, and is expected to further expand on the $19.5 million in cumulative savings experienced by MCT’s lender clients because of AOTs in 2022. AOTs enable mortgage lenders to save the bid-offer spread on the to-be-announced mortgage-backed securities (TBAs) used to hedge their open mortgage pipeline. Due to market volatility these bid-offer spreads have been historically wide, averaging 11.3 basis points in 2022. Participating MCT lenders saved an average of $97,538 each through AOTs in 2022. Read the full press release to learn more or join MCT’s newsletter for timely market content.
Momentifi CEO and long shot Presidential challenger candidate Gibran Nicholas will be hosting a virtual Summit on April 19 based on concepts from his newly published book, The StorySeller Adventures: How to Grow an Epic Business and Find More Meaning in Your Work. The book is a modern allegory and step-by-step guide to StorySelling. “StorySelling is about using the structure, language, and characters of story to sell your ideas more effectively,” says Gibran. You’ll learn how to use StorySelling and the nine human archetypes to launch your next chapter in life and business. “When I first learned about the nine archetypes, it was a life-changing experience for me,” says Gibran. You’ll walk away with a step-by-step guide for how to use the nine archetypes to overcome burnout, rediscover purpose, and find more meaning in your work. The event also includes exclusive business building sessions with seven other guest speakers. Click here to reserve your spot.
“Zoral’s Closing/Post-closing Automation reduces expenses and delivers significant ROI on Day 1! We 100% automate the following tasks… funding with over 50 different warehouse banks. purchase advice acquisition from 60 plus investors, PA Form data entry and reconciliation, warehouse bank clearing, MERS change, and Fed Reference # acquisition and reporting. Using humans to perform these tasks in today’s age of AI powered automation is simply silly. Zoral offers the most comprehensive suite of automation capabilities available in the world. For the past 18 years, Zoral has been a global leader in creating innovative automation software and technology. We know & speak mortgage. For more information, please contact Zoral directly.”
What's an internal audit anyway and do you need one? An internal audit acts as a third line of defense for your mortgage operation. It provides comprehensive assurance based on the highest level of independence and objectivity to evaluate the effectiveness of management’s internal controls. This function should advise your mortgage operation on plans to achieve the company's strategic, operational, financial and compliance goals. An effective internal audit should go far beyond just checking a compliance box; it should be an integral part of protecting your company. If you want to ensure you’re adhering to regulatory requirements and demonstrating good faith business practices, a Richey May internal audit is a good fit. If you’re looking to be Fannie Mae approved in the future or want to maintain your approved status, it’s required. If you’re unsure whether you need an internal audit, ask one of Richey May’s experts today or learn more here.
AmeriHome Correspondent, the 2nd largest correspondent investor in the country and a wholly owned subsidiary of Western Alliance Bank, continues to deliver on its tag line of Relationships-Reliability-Results. Their combined synergies continue to make them a “must have” business relationship for mortgage bankers of all shapes and sizes. Join their upcoming quarterly conversation with Freddie Mac on April 26 at 11am PDT! Meet with Freddie Mac’s Deputy Chief Economist, Leonard Kiefer, and SVP of Mission and Community Engagement, Danny Gardner, for an economic update and robust discussion on affordable housing products. Ask questions in the live Q&A session. Register here! Don’t miss the opportunity to connect with AmeriHome at one of the many upcoming conferences such as the MBA National Advocacy Conference, the TMBA Annual Convention, the Mid-Atlantic Regional Conference, and more! Check out Upcoming Events for more details and reach out to learn more about how AmeriHome could benefit your business.
“Planet Home Lending is making it easier for Correspondent lenders to boost their volume and offering a great way for borrowers to tap into home equity without losing their low-rate first mortgage. Introducing Planet’s new Home Equity Loan, a stand-alone 2nd lien program exclusively available to our Delegated sellers. Contact your Regional Sales Manager or reach out to SVP Correspondent Sales Jim Loving (414-270-0027) to get approved for this new in-demand program! You can also find the Planet Correspondent sales team at the Intercontinental New York Times Square during the MBA Secondary & Capital Markets Conference, May 21-24. Schedule a meeting or stop by the Union Square Park ballroom to learn how we can help you grow your business in 2023.”
Training, Webinars, and Events Through April
Tomorrow at noon PT is the next edition of The Mortgage Collaborative’s Rundown with Tom Gallucci and Robbie Chrisman, co-hosted by Bernard and Laird Nossuli. We’ll be covering current events in the mortgage market including the 2022 HMDA data for 30 minutes starting at 3PM ET in “The Rundown”!
If doubts about whether anyone can succeed in this market are lingering in the back of your mind, then you need to hear Dale Vermillion talk about the mindset and strategies he’s leveraging to help originators sustain double-digit production in this market. This is a time-tested approach Dale developed in 2008 that’s delivering results for originators right now. Don’t miss this hour-long Zoom session, April 20th at 2:00 PST, with a legend in the industry made available to you exclusively thanks to PRMG: “Built by Originators, for Originators TM”
Don't miss a morning with Rene Rodriquez on April 19th | 9:00-11:30. Join Minnesota Mortgage Association at the Mendakota Country Club and amplify your sales.
Register for Angel Oak’s Webinar, Forging New Paths with Bank Statement Loans, on April 20th at 1:00 PM EST. Angel Oak will discuss its Bank Statement program specifically for self-employed borrowers and how they help originators increase their volume serving this market. Discussion will include details about the program, recent program enhancements and how they determine income and even discuss how to market to these borrowers.
Expert Insights: Working Smarter to Broker More Business! On April 25 at 1PM EST, listen to Carla Biancaniello, Wholesale Account Manager, Richard Dwyer, Wholesale Account Executive, David Colwell, EVP of Lender Price, and Rob Chrisman. “Brokers are always looking for reliable, expert-backed advice on how to optimize their workflows and maximize profitability. Our upcoming webinar is designed to provide brokers with just that: valuable guidance from top professionals in the business. You will have access to renowned experts who will share their knowledge on what it really takes to streamline processes and increase the amount of sales in your brokerage business with the least effort possible. Attend our webinar and leave with actionable practices that you can apply right away!
On April 26, join Weiner Brodsky Kider’s managing partner, Mitch Kider, for a live webinar, at 1:00 PM ET, on current litigation risks affecting the mortgage industry and how mortgage professionals can effectively manage those risks from start to finish. Mitch will highlight recent litigation trends, the current market’s effect on litigation, and ways to successfully manage both litigation risks and costs.
Fair Lending for financial institutions encompasses a group of laws and regulations prohibiting discrimination in the extension of credit to consumers. Failing to follow the fair lending compliance regulations can result in civil money penalties, restrictions on branching and significant reputational damage for an institution. During GRCIQ’s webinar, Thursday, April 27th 12:00 PM PDT, Justin Muscolino who served as Head of Compliance Training at Bank of China, will discuss each of the regulations that fall under Fair Lending.
Capital Markets: The Fed and Inflation
The International Monetary Fund said the global economy could have a "hard landing" if interest rates have to remain higher for longer to combat inflation, and recent bank turmoil points to vulnerabilities in the financial system. The organization now expects real global GDP growth of 2.8% this year and 3% in 2024, slightly below estimates from January. However, it raised its growth forecast for the US to 1.6%. BlackRock has raised its overweight call on inflation-linked debt, saying inflation is likely to remain above the Federal Reserve's 2% target for years to come. "We do see inflation cooling as spending patterns normalize and energy prices relent, but we see it persisting above policy targets in coming years," BlackRock strategists wrote. And U.S. Treasury Secretary Janet Yellen said she remains focused on the downside risks facing the global economy, including the recent banking-sector turmoil and Russia's invasion of Ukraine, but the outlook still remains "reasonably bright." "I wouldn't overdo the negativism about the global economy."
Have we seen peak inflation? 14 months into the Federal Reserve's contractionary monetary policies, the disinflationary effects are becoming more prominent. The release of a cooler than expected CPI report for March (actual 0.1 percent, expected 0.3 percent) has markets now clearly predicting that the Fed's hawkish stance will be sidetracked by slowing economic growth over the 2nd half of 2023. The core consumer price index (which excludes food and energy) rose just 0.4 percent from the prior month, dropping a tenth of a percent. Measures of housing costs posted their smallest monthly increases in about a year and grocery prices dropped. Markets forecast rates nearly one percent lower by the start of 2024.
The Fed minutes from the March 21/22 FOMC meeting were also released yesterday and showed that the staff forecasted “a mild recession starting later this year, with a recovery over the subsequent two years.” The minutes also contained a lot of discussion in regard to the banking sector issues and the actions taken by the Fed along with other regulators. However, the market reaction to the minutes was minimal with yields remaining mostly lower and the yield curve steeper. Anyone who cares about the steepness of the yield curve may want to check out STRATMOR’s current blog, “The Yield Curve Is Inverted: Should Lenders Care?”
Today’s calendar is already under way with March Producer Prices: -.5 percent, core year over 3.4 percent, year over year headline +4.9 percent. PPI was expected to increase 0.2 percent month-over-month and 3.2 percent year-over-year and 0.3 percent month-over-month excluding food and energy and 3.5 percent year-over-year versus unchanged and 4.4 percent previously. Weekly jobless claims were 239k. Treasury then announces the auction sizes of next week’s reopened 20-year bonds and 5-year TIPS auctions before auctioning $18 billion reopened 30-year bonds. We begin the day with Agency MBS prices roughly unchanged from Wednesday’s close and the 10-year yielding 3.40 after closing yesterday at 3.42 percent.
At Academy Mortgage, service is at the heart of the organization. Each April, team members from across the company Spring into Service to spread goodness and give back through simple, yet impactful acts of service. Over the past two weeks, as part of this companywide service initiative, a team in Kansas packed 100K+ meals to be sent to Haiti; a group in Oregon cleaned up trash along the roads in their community; in Utah, team members helped neighbors pack sandbags and clear snow from their roofs; and countless teams across the country have gathered to help food pantries and serve meals at group homes and shelters. “Inspire Hope” isn’t just a phrase at Academy Mortgage, it is engrained in the culture of the organization. If you’re looking to be a part of a company whose focus is not just on the numbers, but also on doing good together to Inspire Hope for others, contact VP of Business Development Scott Starr.