Knocking on wood is an apotropaic (averting bad luck) tradition of literally touching, tapping, or knocking on wood, or merely stating that one is doing or intending to do so, in order to avoid "tempting fate" after making a favorable prediction or boast, or a declaration concerning one's own death or another unfavorable situation. Many believe it originated with pagan groups and cultures around the world, such as the Celts, who worshipped and mythologized the trees. These groups believed the trees were home to their various gods and with the touch of wood, a spirit could bring protection. Don’t get me wrong, I love predictions as much as the next guy. Often entertaining, often wrong, but who can keep track months or years later to hold the forecaster accountable when the forecaster is entirely wrong? Remember how some believed that the home purchase business in 2022 was going to make up for a sizeable chunk of the lost refi business (due to rates going up and refi burnout)? Well, existing home sales have been down four months in a row. Who was predicting the pandemic, and its impact on interest rates and housing? Who was predicting Russia’s invasion of Ukraine and the impact on worldwide inflation? (Today’s podcast is available here and this week’s is sponsored by Candor. With Candor’s Machine as an Underwriter, lenders modernize their manufacturing infrastructure making them immune to margin, capacity, and staffing challenges forever.)

Broker and Lender Services and Programs

Are you prepared for purchase? Planet Home Lending has the niche products to compete in challenging markets and move your customers from the pipeline to the closing table. Bridge loans let borrowers contract to buy as soon as they list. Fannie Mae HomeReady mortgage products help borrowers without big down payments. And our well-designed Cash 4 Homes program guarantees to close your buyer’s home loan on time with a cash guarantee, or we simply buy the home cash up front and sell it back to the buyer. Build your brand, your branch, and your bottom line with leadership who gives you what you need then gets out of your way. Watch the new video from EVP, National Production, Caleb Mittelstet. Then, send a note to Caleb Mittelstet or SVP Talent Acquisition Brian Miller. Grow your business with Planet Home Lending — Right Place, Right Size, Right Now!

“Looking to reduce accounting costs? Richey May’s Client Accounting and Advisory Services (CAAS) practice provides a comprehensive mortgage accounting service that lets you outsource your accounting functions with flexibility. Our model lets you turn fixed accounting costs into variable costs when volume drops or your needs change so you can do what makes sense for your business. It fills the gaps when internal accounting resources get stretched thin or the talent pipeline shrinks – or both. The best part? Utilizing our CAAS team puts your finances in the hands of mortgage accounting experts and lightens your administrative load, so you can focus on making key business decisions. At times like these, it helps to have ways to outsource to a team of experienced mortgage accounting professionals while reducing costs. Contact us for details and learn more here.”

“***News Alert – For all Chrisman readers who use direct mail for lead generation - Effective July 10, 2022, the USPS will be raising prices by 3 cents for first class and 2 cents for standard mail.*** Did you know you can actually lower your cost per call, however, even with these price increases? If you are interested in beating the price increase, drop us a line at or check us out at We have technology improvements enabling you to get ahead of the market and outrun the increases! Give us 5 minutes to ask 3 simple questions and see if we can lower your overall cost per call to beat the rate increase!”

Market contraction has put cost-efficiency front and center in the mortgage world. Appraisals typically aren’t a focus since homebuyers pay for them, but lenders do pay for the scheduling and management of appraisals and for the delays that may result from them. Lenders can realize cost-efficiencies by lowering redundancies, taking advantage of new technologies like RemoteVal, and consolidating appraisal requests across the enterprise. But lenders aren’t the only ones feeling the squeeze. Companies who service lenders are cutting staff or reducing services. “As a SOC-compliant vendor, we are part of a larger family of companies that touch all aspects of mortgage, so we have a level of stability and capability right now that a lot of other AMCs don’t,” Mark Walser, President of Incenter Management, said. “This is the time to invest in partners like us who do have the technology and the stability.” To learn more about Incenter Appraisal Management, visit here.

Successful mortgage lenders focus on selling experiences, not loans. Here's an experience that sells: A borrower just toured their dream home. They pull out their phone and run a couple of payment scenarios. They know exactly what their payment will be for the offer they want to make, how much cash they'll need, and how it will change if the seller counteroffers. They generate a pre-approval letter on their iPhone for that exact offer and AirDrop it to their Realtor. Across town, that borrower's loan officer is out to dinner with her family and sees the activity stream on her phone but doesn't need to leave the table because her company has the technology that allows the borrower to self-serve. She uses QuickQual by LenderLogix. Visit their site to have a sample QuickQual sent to your phone, or sign-up for their QuickQual webinar on July 6th to learn more!

Rural Housing, Ginnie Mae, FHA, and VA Updates

Guarantees issued by Ginnie Mae in the month of May helped support affordable homeownership and rental unit development for more than 170,000 households and took the overall outstanding Ginnie Mae MBS program balance the highest in the agency’s history.

Ginnie Mae announced the extension of certain Temporary COVID Relief Policies.

Rural Development (RD) announced a new training website for the 502 direct certified loan application packaging process, developed in cooperation with HAC, NWA, and RCAC. This website provides information about the approved non-Agency trainers, the packaging course, and a calendar of upcoming trainings. Registration information will be available on this site for confirmed trainings, as well as tentative information for planned trainings. The trainings are open to individuals working for housing nonprofits and public agencies who have at least one year of affordable housing loan origination and/or affordable housing counseling experience and are interested in packaging Rural Housing Service direct loan applications. Additional information regarding the certified packaging process and course requirements, can be found in Handbook-1-3550, Chapter 3 “Application Processing”, Attachment 3-A and by visiting the Direct Loan Application Packagers Page.

USDA Rural Development Fiscal Year 2022 income limits for the Single Family Direct Loan and Grant Programs were published on June 8, 2022 through a Special Procedure Notice.

The income limits were updated in the impacted websites and systems (e.g., UniFi and Section 502’s Eligibility Assessment tool). The following automated worksheets were also updated.

Section 502 – Worksheet for Computing Income and Maximum Loan Calculator (as found on the Single Family Housing Direct Home Loans (under the ‘To Apply’ tab) and Direct Loan Application Packagers pages). Section 504 – Automated Worksheet (as found on the Single Family Housing Repair Loans & Grants page (under the ‘To Apply’ tab)).

FHA transitioned its Frequently Asked Questions (FAQ) website to a new platform introducing

improvements to the search functionality and the overall user experience. FHA will continue to expand on these enhancements in the coming months. Interested parties may continue to view the FHA FAQ website at, which will automatically redirect to the new platform. For the best user experience, access the website through the Google Chrome or Microsoft Edge browsers.

Wells Fargo Funding (correspondent) made changes to eligible datasets for Registration on all Loans, effective July 16, 2022. Also, various seller guide enhancements including additional documentation required for Guaranteed Rural Housing (GRH) Loans. Details are available in Wells Fargo Funding Newsflash C22-025.

AmeriHome updated its USDA Program Guide to align with recent changes in USDA HB-1-3555. Additional information on this update, as well as other guide updates, are available in AmeriHome announcement 20220604-CL.

Pennymac Correspondent posted Announcement 22-36 regarding VA Maximum LTV update for Cash Out Refinances.

Improvements in Government FICO LLPAs were announced in MWF Wholesale Bulletin 22W-046. The new FICO LLPAs apply for FHA, VA, and USDA loans. (By the way, a recap of Mountain West Financial Bulletins released in the month May 2022 is available in MWF Wholesale Bulletin 22W-044.)

Capital Markets

Worried about what kind of securities you use to hedge a locked pipeline? This statement from FHFA Director Sandra L. Thompson on FHFA's ongoing commitment to UMBS will probably put your mind at ease.

Concerns about growth this week have helped to drive rates down. During his second day of testimony on Capitol Hill, Fed Chair Powell reiterated his commitment to reducing inflation and said a recession is a possibility in remarks before the Senate Banking Committee. The pace of rate changes will continue to depend on the incoming data and the evolving outlook for the economy.

Today’s calendar contains some market moving potential with final June Michigan sentiment due out later this morning. We will also receive May new home sales. Two Fed speakers are currently scheduled starting with St. Louis’ Bullard followed by San Francisco’s Daly. The NY Fed Desk will purchase just $284 million UMBS15 3.5 percent and 4 percent using money from early payoffs. We begin the day with Agency MBS prices worse .125 and the 10-year yielding 3.10 after closing yesterday at 3.07 percent.


LoanCraft is seeking a Business Development Manager to help us grow. Qualified candidates will have a B2B sales background focused on the banking or mortgage industry. You will lead initiatives to generate and engage with business partners to build new business for the company. Please apply here: Business Development Manager. LoanCraft provides mortgage automation solutions and tech-enabled outsourcing services to lenders, built on a robust PPE platform. Services include all forms of income calculation services including self-employed income, automated credit scan tools, document solutions, and "Best Offer Wizard" offer selection and promotion. Outsourcing services include complete fulfillment of real estate loans. Our on-demand income report service is transforming the process of calculating income. We provide a rapid and accurate assessment of income with the ease of ordering an appraisal. Customizable to conform to our customers’ guidelines, the report is well suited for all types of borrowers including self-employed and business owners.”

PacRes Mortgage, formerly Pacific Residential Mortgage, is excited to announce the hiring of Michael Gallagher as our new Branch Manager for our Roseville, California region. As we continue our rapid expansion across the U.S., we’re extremely fortunate to have someone of Michael’s experience and track record of success to guide our operations in the Roseville office. “I joined PacRes because of our shared vision of what the ultimate client-focused mortgage business should look like. Which is to always, regardless of circumstance, provide 5-Star service and customer experiences,” said Michael. “I am so proud to join a company that believes every employee has a voice in making the company a better place to work and grow.” If you would like to see what’s drawing talented people like Michael Gallagher to “the” National Boutique lender - PacRes, reach out to Dave Bergstrom, SVP at 949-795-2835.”