Some things in life are fleeting, like a frosty glass of rose, enemy troops singing Christmas carols in the trenches during WWI, or the time when lenders couldn’t hire people fast enough because rates were at 3 percent. I mention this because Krispy Kreme’s Strawberry Glazed Donuts, a flavor not seen in two years, is back today but only through Monday, in participating Krispy Kreme shops nationwide. Fleeting for donut aficionados. (Who says this commentary never has anything newsworthy?) Also fleeting are some astronomical events. Some will tell you that NASA doesn’t have much else going on besides coming up with the names of moons every month or two. Along those lines, thank you to Eric D. who pointed out that the common definition of a “blue moon” (the second full moon in any month) is wrong. It is the third full moon in a season that has four full moons per NASA. (Today’s podcast can be found here and this week’s is sponsored by Black Knight. Black Knight is an award-winning software, data and analytics company that drives innovation in the mortgage and real-estate industries, and the capital and secondary markets. Listen to an interview with Canopy Mortgage’s Tim Davis on why he signed on with an emerging fin-tech mortgage company and the role innovation and technology will play in shaping the mortgage industry's future.)

Non-Agency and High LTV Products

Most lenders offer programs besides conventional conforming and government loan types. Of course, the cost of originating loans has been challenging for the jumbo and non-QM segment, where it takes more effort to underwrite a mortgage. Many programs don’t have industry-standard underwriting automation tools like Fannie Mae’s Desktop Underwriter and Freddie Mac’s Loan Prospector, which increases the cost of doing business. Meanwhile, on the demand side of the equation, banks and credit unions have pulled back on TPO platforms and products, exiting mortgage and warehousing, which creates an opportunity for LOs and brokers to take share from the banks who follow the puck to where it's going and get in front of these changes.

Verus Mortgage Capital (VMC), a correspondent investor specializing in residential non-QM and investor rental programs, is now offering a Closed End Second Lien Mortgage Program so lenders can capitalize on the growing home equity market. The Closed End Second Lien Mortgage Program allows borrowers to access their home equity without impacting the interest rate on their first mortgage. The maximum loan amount of up to $500,000 comes with a fixed interest rate and monthly payment, and the program’s features also include a maximum CLTV of 90%, a minimum credit score of 680, standard income documentation (two years), occupancy – primary residence, and stand-alone transactions.

Loan Stream Mortgage MaxONE and MaxONE Plus are 100% CLTV FHA DPA programs that may help you qualify more borrowers and expand your market reach. A few features of MaxONE: FHA DPA, Purchase Only, Min FICO 600 - DU Approve/Eligible (no manual underwriting), No First Time Home Buyer Requirement, Non-occupied Co-borrowers allowed per FHA guides. MaxONE Plus features: 100% CLTV FHA Loan (Combines 1st and Subordinate Lien), 2nd lien with an interest rate 2% greater than 1st lien, Payment amortized over 10 years, Monthly payments required, 600 Minimum FICO.

Citi Correspondent Lending expanded non-Agency CRA premiums, effective with Best Effort locks completed on/after Friday, August 11, 2023. View Citi Correspondent complete announcement, which includes details around new MSAs added and changes to LMIHH and LMICT segments.

PRMG announced the release of the new Expanded Access Elite Prime Connect product and Investor Solution Elite DSCR product options within the existing Expanded Access and Investor Solution products. These new product options are designed to allow better pricing options within this suite of products. For both products max LTV is 75% and the minimum credit score is 680. For the Investor Solution option, the minimum DSCR is 1.15. View more information in PRMG Product Update 23-40: New Elite Non-QM Product Options and Product Profile Updates.

PRMG Product Update 23-41: Clarifications on Onyx Jumbo product regarding Borrower documented two-year history of managing investment property via the Borrowers federal tax returns, terms for Deferred DPA, WI WHEDA Advantage FHA and Conventional eligibility of PUDs and warrantable condos.

Capital Markets

Ahead of this morning’s release of the jobs report for August, bond yields were pressured to their lowest closing levels in three weeks yesterday in reaction to the Personal Income/Outlays report for July. The report showed a smaller than expected increase in income (actual 0.2 percent, expected 0.3 percent) and a bigger than expected increase in spending (actual 0.8 percent, expected 0.7 percent).

The strength of consumer spending is presenting fresh concern for policymakers hoping to return inflation to the 2 percent annual target. That strength in spending, coupled with an uptick in the PCE Price Index to 3.3 percent year-over-year from 3.0 percent, gives the Fed an argument to keep rates in restrictive territory. The question for investors is less about when (or if) a downturn might occur, but more specifically when the Fed might start to reverse course on rates. Keep in mind that any fast rate cuts would take the economy nose diving precipitously.

This morning brings the August payrolls situation. The economy added 187k jobs in August versus 175k expectations and versus a revised 157k jobs in July. The unemployment rate rose to 3.8 percent when it was expected to remain at 3.5 percent and average hourly earnings increased +.2 percent, lower than expected (0.3 percent) and 0.4 percent previously. Later this morning brings final August S&P Global manufacturing PMI, ISM manufacturing PMI for August, and July construction spending. Two Fed speakers are scheduled, Atlanta President Bostic and Cleveland President Mester. Before traders head for early exits, despite no early close ahead of the long Labor Day weekend, we begin the day with Agency MBS prices better by roughly .125, the 10-year yielding 4.06 after closing yesterday at 4.09 percent, and the 2-year at 4.77.

Loan Officer Jobs

Canopy Mortgage executes a strategic maneuver as it introduces Tim Davis, the mind behind "The Originators Guide" and the author of "The Circle of Referrals," as its new Chief Growth Officer (CGO). This dynamic decision not only underscores Canopy's dedication to enhancing the mortgage journey through its exceptionally effective in-house LOS but also highlights the company's unwavering support for empowering its loan officers to enhance their individual effectiveness. Canopy is expanding its nationwide footprint seeking to onboard producing LOs who express interest in their highly competitive P&L model. Questions? Reach out to McKay Shoell or call 888-696-9076.

Equity Resources is a privately owned mortgage banker that is very pleased to continue with its growth and expansion. We are seeking career-focused (self-sourced) loan officers in all our markets. Equity is proudly celebrating our 30th anniversary and we are excited about our future! The average tenure of our LO team is 10+ years, with many LO’s celebrating their 15th, 20th and 25th anniversaries with us! We are an agency direct lender currently licensed in 19 states along the east coast and mid-west. We offer a stellar marketing team that includes a social media director, a video production team, and a media team to support our loan officers. We help our loan officers develop a sustainable plan to assist them in growing their business with their referral partners. In addition, Equity offers a full suite of products (including several specialty lending programs.) For confidential inquiries to join our award- winning team, please contact Tom Piecenski, Executive Vice President of Sales at 614.327.5353.”

In the Northwest and California, Banner Bank is searching for Mortgage Loan Officers looking to create lasting Realtor and builder relationships at a bank focused on the market today. Banner has opportunities for lenders looking for local decision making with FHA, VA, USDA, state bond and true Portfolio lending opportunities along with servicing retained Fannie and Freddie loans to assist in client retention. Additional highlighted products cover CRA lending with private label no payment down payment assistance to help assist all borrowers with the right opportunity. Banner is the right fit for an established team, or the individual looking to grow their business and take the next step in their career. Please send resumes to Aaron Miller.

“At Planet, we're hiring Branch Managers and empowering them with the resources to build extraordinary teams. Bring your team to the only Top 10 mortgage company with positive year-over-year production growth for the first 6 months of the year. Reach out today for a confidential discussion with Brian Miller, Planet's SVP Talent Acquisition, at 214-223-9986, or Peter Briggs, VP Talent Acquisition, at 949-202-8213. When you’re here, you’re home.”

“At Fairway Independent Mortgage Corporation, customer service is a way of life. #FairwayNation mortgage loan officers are dedicated to finding great rates and loan options for our customers while offering some of the fastest turn times in the industry. Our goal is to act as a trusted mortgage advisor, providing highly personalized service and helping you through every step of the loan process, from application to closing and beyond.”

As a mortgage sales professional have you ever thought, “What if I could focus on only the things that actually grow my business, flipping the hourglass and spending 80 percent of my time on what I do best: building relationships?” Or “What if I could surround myself with sales support that is truly team inspired, results driven marketing and customer obsessed headache-free process?” Welcome to radius financial group! They started radius with one main focus: to offer a better value proposition than any other bank or mortgage company in the country for you, your borrowers and your referral partners. radius can help you grow your business, have a better quality of life, and make more money. For confidential inquires please contact Carla Herrera.

Atlanta-based Highland Mortgage continues to grow and is searching for branches and loan officers throughout the Southeast, Delaware, Arizona, and Colorado. Contact Mickey Schilling, CMB®, its VP of National Sales. Now in its fourth year, Fannie Mae-approved Highland Mortgage is well-positioned to expand its footprint nationwide under Mickey’s guidance. Here are Mickey’s top reasons why Highland is the right destination for you.