Yes, it’s already Tuesday. Are we at the top of the market? A pair of Goldman Sachs-backed ventures gobbled up an entire rental home community in Florida last month for $45 million, according to reports. Lenders everywhere keep one eye on housing trends, and every Friday at 3PM ET I do a Zoom show with Rich Swerbinsky for The Mortgage Collaborative discussing current events in finance and housing. I try to have fun backgrounds. In Friday’s show, however, at the 6-minute mark the wild horse in the hills above Reno decided he was done with the filming. And then there was the lunging horned toad at 32:30; fortunately, I outweighed it. Speaking of weak segues, “Demand continues to outweigh supply, with the number of potential buyers currently 61% higher than the five-year average. Meanwhile, the level of homes for sale is 37% lower than normal. But the number of properties being put up for sale is beginning to increase. The number of new listings in the four weeks to 22 May were 7% higher than the five-year average.” In the United States? Nah. The United Kingdom. So we’re not alone in the world. (Today’s podcast is available here and this week’s is sponsored by Change Wholesale with its proprietary Community Mortgage program. There are no bank statements, employment, or DTI requirements, allowing brokers to deliver more prime loans to more credit-worthy borrowers like small business owners, gig workers, retirees, and anyone else searching for home financing.
Lender and Broker Software, Services, and Programs
Unburden your underwriters! Free up your underwriters from cumbersome income and asset calculations and help them get to more loans in less time by using the best underwriting automation tools on the market. A part of the Mortgage Automation Suite brought to you by Richey May and Zoral, this specialized toolset is powered by robust automation, OCR, and AI/ML capabilities to go beyond mere validation of data points. It extracts data from borrower income and asset documents, performs complex analyses, checks for mismatches, flags malicious code, and supplies your team with a GSE fraud checklist and ongoing analysis, all without your processing and underwriting teams having to extract data from borrower documents and enter it into your LOS. Bonus: Support for a full range of borrower types and loan products, including self-employed, FHA, VA, and jumbo. Want to see this in action? Sign up for a demo.
“Take3Tech® thanks all our veterans and their families for their dedication to keeping our country safe. One way our industry can give back to our Veterans is by helping them obtain homeownership with a VA loan. But if you do not do VA loans daily the VA guidelines can be tricky. With The RuleTool™, by Take3Tech®, our team of credit underwriters has put complex VA/FNMA/FHLMC/FHA/USDS/Jumbo guidelines in to simplified terms so you don’t have to guess when your borrower has a question. LoanMAPS®, Take3Tech’s loan origination platform, allows you to start structuring your VA or any loan with a few clicks. Our all-in-one cloud-based platform will empower your teams with a more efficient workflow, so you can provide your customers with exceptional service. Contact Take3Tech® today to see how our solutions can help.”
ACES Quality Management Hosts Largest User Conference To-Date and Unveils All-New CAA Program. Last week, ACES ENGAGE was held at the Broadmoor in Colorado Springs, CO with attendees flying in from as far as Puerto Rico. With an array of speakers including MBA’s Eddie Seiler, Fannie Mae’s Duane Gilkison, Ballard Spahr’s Richard Andreano, and SWS Risk Advisory’s Steve Spies, ENGAGE shared industry trends, economic outlooks, and product updates that left participants energized. Early scores revealed an outstanding NPS score of 88. Due to the event’s success, ACES ENGAGE will return to The Broadmoor May 17-19, 2023. In addition, ACES announced their all-new Certified ACES Administrator (CAA) online training program that was thoughtfully designed to provide ongoing integrity and value to customers. Passing the final exam equips administrators with the best practices, processes, workflows, and troubleshooting expertise to guide internal teams on the highest and best use of the ACES platform. Learn More About CAA Today.
What is an Expatriate (Expat)? An Expat is a Foreign National who is coming to live and work in the US while a true Foreign National will live and work outside of the US. Advancial Federal Credit Union offers financing for Expats (and Foreign Nationals) in all 50 states and no US credit is required. Loans up to $5,000,000 and all Advancial’s unique collateral programs considered. Virtually every form of work authorization is considered including Work, Student, and Diplomatic Visas, EAD Cards, OPT/CTP permits and more. Pre-approvals provided using only an offer letter. Advancial can also assist with other banking needs to assist with a seamless transition. Earn a customer for life when you help with their first home purchase in the U.S.! Info can be found at www.advancialwholesale.com . Call 888-876-2328 or email John Burkel.
At Informative Research, we are rethinking lender data solutions. We’ve created a technology platform that can deliver all your data solutions, taking your entire operational process into account. For example, by utilizing our Verification Waterfall and business process consulting, you can drastically improve your verification of employment and income spend. We’ll provide you with reporting insights and transparency to track usage and savings over time. The traditional methods of verifying a borrower’s employment and income have become undisciplined, complex, and muddled. There is a better way. Here at Informative Research, our Verification Waterfall provides a one-click service to fulfill a lender’s verification of employment process goals. Click here to get in touch with an Informative Research consultant.
Accenture Named a Leader and Star Performer in Mortgage Operations in the Everest Group Mortgage Operations Peak Matrix, 2022. The report highlights how Accenture provides a holistic transformation offering to clients supported by a breadth of operations capabilities and digital tools, from data management and underwriting to servicing and default management. For example, one of Accenture’s latest mortgage innovations, iOrigin, is a plug-and-play modular technology that was built to complement any LOS. It uses AI to extract and analyze data from documents, driving greater efficiency and scalability in processing, underwriting, and closing. For more information about Accenture’s Mortgage Operations capabilities, contact Charlie Lieske at Accenture today.
Webinars, Training, and Events
Did you know that commercial and multifamily originations grew by 72% in Q1 of 2022 according to the MBA. Successful loan officers clearly see this as a major diversification tactic for today’s market… Do you? Join us for the National Mortgage Professional Webinar “Your Commercial Mortgage Crash Course: Tactics You Can Use to Diversify and Grow Today” taking place on Thursday, June 9 at 2 pm ET / 11 am PT. Don’t get left behind. Join the original small-balance commercial experts Joe Altomonte, AVP, Business Development and Juan Barcelo, VP, Sales at Silver Hill Funding as we show you how to source commercial leads, how the transaction process works (it’s much simpler than you think) and most importantly, which types of deals you can most easily close today. Sign up for this webinar here.
National MI University is pleased to bring you a great training line-up for June. Learn Today, Lead Tomorrow, with National MI University, you have access to training resources that cover more than just industry-leading topics. Our webinars, eLearning courses, and podcasts help you stay connected to your customers by providing relevant social media strategies, tips on increasing sales productivity, techniques for developing a growth mindset, and much more. Click here to learn more with this short training video or visit National MI University to register. For additional information, contact us at training@nationalmi.com.
Enact (formerly Genworth Mortgage Insurance) will host multiple live courses in June to help grow your business and positively impact homebuyers. Browse Enact’s course catalog of on-demand webinars, just have your company or individual NMLS ID handy when registering.
MGIC offers some interesting courses as well, as does Essent, Radian, and Arch MI.
On June 1 join Curinos thought leaders for data and insight into the current home equity and ARM market, as well as the solutions that are needed to transform your business playbook in our upcoming webinar: How to Transform Your Home Loan Product Solutions.
This week is the 2022 National Settlement Services Summit (NS3), June 1-3 at the Omni Resort at Champions Gate in Orlando, Florida.
June 2-3 join IMN for The Non-QM Forum in Dana Point, CA. The Non-QM market has bounced back in the last year and is forecast to grow substantially in 2022, there has never been a better time to convene the industry and capitalize on Non-QM opportunities. There is an expected audience of 500+, consisting of a 'who's who' in the industry. Register now.
On Thursday June 2 at 2pm ET, Ginnie Mae and Falcon Capital Advisors, the lead consultant on Ginnie Mae’s Digital Collateral Program, will host a webinar on the program’s reopening. Ginnie Mae’s Digital Collateral Program provides the securitization of electronic promissory notes for pools and loan packages. The Agency will be reopening the Program and accepting applications for its Issuers soon.
Friday the 3rd is the next edition of The Mortgage Collaborative’s Rundown with Rich and Rob covering current events in the mortgage market for 30 minutes starting at noon PT in “The Rundown with Rich and Rob”. (If you’re interested in sponsoring shows, contact Tom Galluci.)
Rates are up, and as lenders' pipelines start to dwindle, the reality of the need to compete and win in the home purchase market is a requirement for survival. As a part of our Pivot to Purchase series, we are inviting you to join us on June 6th, for our “Mastering the Purchase Market: How to effectively grow a purchase pipeline”. Join Brian C. Coester, the CEO of Real Estate Connection, Chris Heller the Chief Real Estate Officer of OJO and our moderator Vince Parlove, Director of Wholesale Development for United Wholesale Mortgage and learn how to compete and win in today's market. The team will cover how to effectively compete, scale, and master the purchase marketplace.
The Indiana MBA State Convention is June 6th and 7th in Fort Wayne. Receive state legislative updates, learn about the state of the economy from the MBA’s Joel Kan, and the regulatory landscape from Jack Konyk!
MISMO’s Spring Summit will be held in Charleston. S.C., June 6th -9th. Register to attend MISMO’s Spring Summit, in-person or via livestream.
Join NYMBA in Saratoga for the New York MBA Annual Convention and Inaugural golf outing, June 7-9.
Lenders One summer events are open for registration including the L1 Executive Roundtable in Boston, MA, June 7-8.
FHA is providing free SFH credit underwriting webinars. At each session, FHA representatives will provide an update on underwriting standards, practices, and policies. Register for Credit Underwriting Session I, June 8th, 1:30-4:00 PM (Eastern), Session II, June 22nd, 1:30–4:00 PM (Eastern).
Join PRMG University and MGIC on June 9th at 11:00 PDT for Getting Comfortable With Arms. On Friday, June 17th at 11:00 PDT, register for session Understanding Adjustable-Rate Mortgages. Enact and PRMG University will review the common features and adjustment periods of ARM’s and the current index’s used in today’s market. PRMG University TPO June Training Calendar is available, sessions cover a multiple range of topics.
Capital Markets
Yesterday U.S. markets were closed for Memorial Day, though last week saw strong consumer discretionary-spending trends and a slight deceleration in inflation spurring hopes that the inflationary peak could be in the rear-view mirror. U.S. mortgage rates posted the biggest drop in more than two years, offering homebuyers a slight reprieve from this year’s massive surge in borrowing costs. However, U.S. pending home sales fell for a sixth straight month as the steep climb in mortgage rates compounds affordability challenges and sends clearer signals that the pandemic-driven housing frenzy is coming to an end.
LOs will be interested in hearing that consumers are digging deeper into their pockets to finance spending. The personal savings rate as a share of disposable income dropped to 4.4 percent in April, the lowest since September 2008. Wage growth may be peaking as companies are now dialing it back, which would be a welcome development for the inflation-wary Fed as it walks a tightrope to rein in price pressures without sinking the economy, though not for some workers. In addition to rate hikes, Fed officials (and their central bank peers in Europe, England, and Australia) will begin shrinking balance sheets, which will test market stability especially in combination with raising rates. Regardless of the inflation picture, consumer sentiment remains dour, driven primarily by buying conditions for durable goods and housing.
This week’s calendar includes May’s payrolls report on Friday where the current estimate is for a 310k increase in the headline. “Fedspeak” is on the light side although Powell and Yellen are meeting with Biden today, with the Beige Book out tomorrow as we enter the blackout period approaching the June 14/15 FOMC meeting. Today’s busy calendar has Redbook same store sales, house prices for from two months ago from S&P/Case-Shiller, Chicago PMI for May, and May consumer confidence. This holiday-shortened week sees the NY Fed Desk purchasing $1.7 billion MBS per day on average of which 66 percent is in UMB30s. Today’s operation sees the Desk in 30-year 3.5 percent through 4.5 percent for up to $1.7 billion. We begin the trading week with Agency MBS prices worse .50-.625 and the 10-year yielding 2.87 after closing last week at 2.74 percent given continued inflation fears, renewed thoughts that our Federal Reserve is firmly set on several more rate increases, and a continuation of bond prices sinking (and rates shooting higher) in Europe.
Careers
“Are you a MeridianLink Mortgage (formerly Lending QB) system expert with system administration experience? We need an energetic person with knowledge of the system, mortgage banking experience, and an ability to collaborate with stakeholders, create and run reports, and work on various system integrations. This position may be in the office, or remote.
If you love this business, mortgage technology, and working with professionals who will respect and value your contributions, please contact Chrisman LLC’s Anjelica Nixt to forward your resume.”
“Sprout Mortgage has over 30 uncommonly good non-QM and conventional mortgage solutions not commonly found elsewhere. From jumbo loans up to $10M, investor loan products with debt service coverage, to our asset optimizer loan and bank statement loans with a 40-year, 10-year I/O option, we have solutions that help despite rising interest rates. That’s why we’re hiring across the nation: we’ve got explosive growth! You too can benefit from having over 30 unique non-QM and QM solutions to meet all varieties of customer scenarios. Reach out to Jessica Fieramosca, SVP of Recruitment, at 657-888-9878. You’ve got earnings potential to gain. #SowYourSuccess at Sprout!”
A mid-size, purchase-oriented Independent Mortgage Bank (with a solid servicing portfolio, licensed in more than 25 states, and with more than $3.5 billion in fundings in 2021) has an immediate need for an experienced and proactive Chief Compliance Officer. The Candidate will grow and lead the compliance team, assesses the firm’s compliance, regulatory and reputational risk, monitor for compliance with new or amended laws, rules, and regulations, with an emphasis on fair lending. CAMS, CRCM designation preferred. This is a remote, work from home position. Interested candidates can submit their resume to Chrisman LLC’s Anjelica Nixt.
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