For me, the next ten days includes time in Chicago, the Wisconsin Dells, and Atlanta. It isn’t a scary agenda. At the ready for tonight’s Halloween fun? Polls seem to indicate that the most popular treat is Reese’s Peanut Butter Cups, followed by Reese’s Miniatures, Twix, Kit Kat, and Snickers. Regardless of treats being handed out at doorsteps, there are “ticks” in an unfortunate affordable housing situation that is an example of the difficulty of implementing housing programs. About 5,600 people live in the ski town of Vail, Colorado. But during the busy season thousands of people work there, and there aren’t enough nearby places to live for that workforce. Right now there’s an estimated deficit of 6,000 beds for the work force in the county, and in order to address that the ski resort Vail sought to build a project on-site to house 165 employees. The town’s existing population got upset, as many residents don’t want new housing in the town, and filed a petition in county court to exercise eminent domain to seize the site and hold it as open space, citing the plight of bighorn sheep. (Today’s podcast is available here and features an interview with Andrew Liput, CEO and Founder of Secure Insight, on the need for fraud tools in a down market. This week’s Sponsored by Candor Technology. Home of the One Touch Underwrite, supporting lenders from Point of Sale to Post Close QC, to reduce repurchase risk, increase underwriter productivity by 400 percent, and decrease turn-times by 10 days.)
Wholesale and Correspondent Loan Products
Carl Markman, Director of National Sales, who just celebrated his 14th year with REMN Wholesale, conveys this positive message about collectively moving forward in 2023, “Have a plan in place and be prepared to capitalize on it when the market stabilizes. Our business is built on a series of cycles. We know the next cycle is coming, we just don’t know when, but it will happen. Build on your business now with new and stronger relationships; educate yourself on new product offerings to be ready for when the production is on the upswing!” REMN Wholesale is exclusively sponsoring Ron Vaimberg’s 2023 Originator Ultimate Business Plan – Workshop/Webinar. (Wednesday, 11/9) Register FREE: click here. REMN’s 5 DAY HELOC PROGRAM: Approvals in Minutes, Closings in as Little as 5 Days! Add Simple Access (Non-QM) and Renovation Programs. REMN’s ready to help you close loans. REMN+ARIVE = PLATFORM CONNECTIVITY! REMN products, pricing, integrated loan registration, automatically available to REMN-approved brokers, click here.
Freedom Mortgage recently has named Mike Mell Senior Vice President of Wholesale Lending. Mell joined Freedom Mortgage in 2005, and he is a 27-year mortgage industry veteran with deep expertise in wholesale lending. In addition, Freedom Mortgage Wholesale Division launched its Historically, Currently, 4EVER Wholesale campaign to celebrate over 30 years serving mortgage brokers across the country. The “4EVER Wholesale” campaign highlights the depth of experience held by the company and its Account Executive Team. This level of experience is one of the many reasons its wholesale partners have been working with Freedom Mortgage for three decades. Freedom Mortgage helps mortgage brokers shine for their referral partners and joins with these brokers in fostering homeownership across America. Contact Freedom Mortgage Wholesale Division to learn to more, email or your Account Executive.
Correspondents, are you looking to enhance your product menu with a SIMPLE AND COMPETITIVE Down Payment Assistance program? Look no further! Essex is dedicated to Down Payment Assistance and is a leader in the space. Our innovative Affordable Housing Program is made possible, in part, through our partnership with the National Homebuyers Fund (NHF) which is designed to increase homeownership opportunities nationwide! Some of the highlights are 100% financing, no Income Limit Options Available, Minimum Credit Score 600 (exceptions are available), same guidelines for 48 States (No WA or NY), no DTI requirements, fully delegated, MFHs okay, TPO okay. Give Kimberly Schenck at Essex Mortgage (NMLS 70377) a shout today.
Broker and Lender Services and Software
“QM Jumbo loans can be a great fit for borrowers, however missing an outlier can be incredibly expensive. Aside from financial affects, it can also cost you clients or your reputation. When you’re uncertain, you’re left with two options, attempt to contact your underwriting department or sign into TheRuleTool. TheRuleTool provides you and your team instant access to information 24/7, so even vampires can get some after-hours work done. Our simple search allows users to select their approved investors, then start narrowing down categories to find the necessary results. TheRuleTool is also great for searching FHA, FHLMC, FNMA, USDA, Bond, and VA guidelines and overlays. Plus, since our team of mortgage knowledge experts add updates and clarifications daily, this tool truly is an underwriter in your pocket. TheRuleTool is only one of Take3Tech’s amazing tools. If you’re looking for a CRM, POS or LOS, ask about browser-based LoanMAPS.”
Don’t be scared this Halloween! Advantage Credit is trying hard to keep the ghosts and goblins from wreaking havoc on your bottom line. Advantage Credit can help you do a thorough systems check to be sure that your business is running as efficiently as possible. This is the perfect time to get your business set up for an efficient 2023, since it is their goal to help you improve your processes, services, and save money. So this Halloween, just fill out this form and we will contact you to get started on your FREE Business Review!
“As the market continues to shift, it’s becoming clearer that servicers need to bring a renewed focus on loss mitigation and REO strategies. Consolidated Analytics delivers one of the most comprehensive, asset management solutions to streamline your REO process and satisfy the most stringent investor and client requirements. Our REO team delivers from post-foreclosure through marketing and final disposition by focusing on quality and efficiency CA pairs expert staff and local market resources with proven, and detailed processes to streamline the asset management process, meet SLAs, accelerate turn times, and maximize returns. Contact us to see how our team can help prepare you for whatever the market brings.”
Want to launch new loan products but fear the risk and operational headaches involved? Partner with Maxwell for the technology, solutions, and expertise you need to launch products and channels quickly and easily. Whether you require a la carte services to fill in the gaps of existing operations or an end-to-end solution to launch products from scratch, Maxwell can help. Maxwell Diligence provides competitively priced, high-quality due diligence/QC services, helping lenders perform reviews on and find the right investors for new loan products—all while mitigating regulatory risk. For lenders seeking a complete one-partner solution, Maxwell Private Label Origination handles the operational logistics and resources related to launching products. Both of these solutions are backed by Maxwell’s dedicated staff and leadership, highly knowledgeable across traditional and non-traditional loan types. To learn how Maxwell’s solutions can help you capture more loan volume, click here to schedule a call with our team.
STRATMOR on Mergers
By the end of the year, STRATMOR anticipates that nearly 50 merger or acquisition (M&A) transactions will be announced or closed in 2022. That is 50% more transactions than in 2018, the next highest year of lender consolidations in the past three decades. In the just released October issue of STRATMOR Group’s Insights Report, Principal David Hrobon offers insight into what lenders should consider as either a buyer or seller in a merger or acquisition deal. Hrobon outlines the elements critical to success, including cultural alignment, synergy between the organizations involved and the need to work with a trusted advisor through the complicated process. Don’t miss Hrobon’s article, “Consolidation in the Mortgage Industry: M&A Strategies for Lenders” in the new Insights Report.
Events and Training
While Netflix series ‘The Midnight Club’ seems to take pleasure in tricking audiences with its record-setting number of jump scares, Sales Boomerang and Mortgage Coach would rather treat you to a behind-the-scenes look at how one mortgage advisor fills his bowl with sweet deals. Tomorrow at 1 pm ET, join Sales Boomerang and Mortgage Coach’s Alex Kutsishin and Dave Savage as they sit down with Legacy Mutual’s Shawn Kaplan to learn how he uses Mortgage Coach to generate leads, educate borrowers and negotiate better deals. Costumes encouraged, but not required. RSVP here.
Brought to you by National MI University, with a commitment to delivering high-quality educational content, view all of the National MI upcoming November 2022 webinar sessions.
Topics such as Sales is a Game of Probability with Bruce Lund - Nov. 17 at 10am PT.
New Insights from the 2022 NextGen Homebuyer Report with Kristin Messerli – Nov. 10 at 10am PT.
Join Western Alliance Bank on Wednesday, November 2, for their 2022 Fall Economic Forum, a free virtual event, where renowned economist Dr. Christopher Thornberg will provide an insightful analysis of economic trends across the country.
PRMG University TPO full line-up of November training options is now available. A few examples of PRMG training topics this month include: FHA 203(h) - Mortgages for Disaster Affected Borrowers on Wednesday, November 16, MGIC - How to Read A Credit Report in Under 5 Minutes on Tuesday, November 22, A quick 30-minute demonstration on accessing and navigating the PRMG Resource Center and Product Profiles on Wednesday, November 30.
Join Freddie Mac and be a part of the discussion on important trends and discover insights and key findings in the rural housing market. Register for the 4th annual Rural Research Symposium November 3rd – 4th. The symposium is a two-day virtual forum where you can connect with distinguished thought leaders in the industry on the unique challenges facing housing and renting.
This Friday at 3PM ET 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 45 minutes starting at noon PT in “The Rundown with Rich and Rob”!
Join the Wisconsin Mortgage Bankers Association as it hosts its 48th Annual Real Estate & Finance Conference on November 2 – 3 at the Wilderness Resort in the Wisconsin Dells. They have a great lineup of speakers this year, including yours truly, as they explore topics such as team building, sales training, mortgage fraud, and more. Visit the Conference website here for more information or register today using the registration link.
Capital Markets: Fed Week
“Are you struggling to provide a par price from investor rate sheets? Is the disconnect between rates you need to offer and the inability to get decent markets in those coupons keeping you up at night? In the current rate environment, lenders need to maximize every ounce of profitability they can from their capital markets efforts. At Vice Capital Markets, we have a variety of strategies in our toolbox, like cross-hedging, that have helped our clients navigate today’s challenging waters to meet their secondary objectives. Our strong relationships with the GSEs ensure we can meet clients’ individual needs, and by keeping our fingers on the pulse of current market trends, we help clients respond quickly and efficiently to changing market conditions. To learn more about our hedging philosophy or the strategies we’ve employed to help our clients succeed in today’s market, reach out to Troy Baars or Chris Bennett.”
Turning to the markets, the Federal Reserve Bank's policy-making committee (FOMC) is expected to raise rates at November 1-2 meeting and keep a hawkish tone with a steady stream of inflationary data coming in since the September meeting. UBS expects the FOMC to keep its options open rather than provide guidance that the pace of rate hikes is slowing down in December. The firm noted that there are no new economic projections released at the November meeting, so all the action will be in the FOMC statement and the Chair's press conference. FRB of Kansas City President George is seen dissenting in favor of a smaller rate hike. It was also observed that in recent weeks FRB Vice Chair Lael Brainard has voiced concerns over the pace and magnitude of the global monetary policy tightening underway and FRB of San Francisco President Mary Daly said there at least should be a discussion about slowing down the pace. Federal Reserve Chairman Jerome Powell is expected to highlight a wait-and-see stance about the December meeting decisions.
Treasuries sold off to close the week, snapping their three-day streak of gains. The contradictions in the U.S. economy keep piling up: Economic output rebounded following two quarterly contractions, inflation remains stubbornly high, but unemployment is at historic lows. The U.S. economy returned to growth in the third quarter, after six months of decline. But there were also signs of a slowdown as the factors underlying the 2.6 percent GDP growth aren’t robust enough to dispel recession concerns. Economists point to how the 2.6 percent increase in GDP in the third quarter had more to do with rising exports than anything else.
The Commerce Department report also revealed that one measure of inflation fell in recent months. No matter how you slice it, recession avoided, recession still coming, recession avoided and still coming, it’s a very strange economic situation. It's bad news for economic officials fighting inflation. Prices, as well as wages, are still rising quickly. The combination of the rising cost of living and the Federal Reserve’s ongoing attempts to tackle it by hiking interest rates, thus strengthening the dollar and hurting exports, is still predicted to cause a recession.
The highlights of this week’s economic calendar include Wednesday’s FOMC events and Friday's October payrolls report. Economic data of note includes Chicago PMI, ISM PMIs, construction spending, JOLTS, ADP, Challenger job cuts, trade, productivity / unit labor costs and factory orders. Besides the Fed, the RBA and BoE will release their latest monetary policy decisions. This week starts with a whimper, however, with the only data point coming in the form of the aforementioned Chicago PMI later this morning. We begin the day with Agency MBS prices worse about .125 and the 10-year yielding 4.04 after closing last week at 4.01 percent.