Yesterday I spent some time in Northern California with two groups, one of which was CAMP, and while morale is good and everyone is in the holiday spirit, the business focus is on trying to reduce costs, rollout products to help what few borrowers are out there, and leverage technology as we head through December and into the winter. Christmas will be here before you know it. Have you noticed that FedEx trucks have different colors in their logos? Well, they do, and they mean something. (And don’t forget to see the arrow between the “E” and the “X” on the trucks. Afterward, try to unsee it.) The CFPB’s logo doesn’t have any such cleverness, but it published a response to questions regarding the HMDA closed-end loan coverage threshold and the 2022 NCRC et al. v. CFPB court order. (Today's podcast is here and brought to you by SimpleNexus, an nCino company and award-winning developer of mobile-first technology for the modern mortgage lender, and today’s features an interview with Ocrolus’ Suzanne Ross on the evolution of fraud in the mortgage space and how technology is protecting companies from threats.)

Lender and Broker Software, Products, and Services

Spotify called its users onions last week. Yes, you read that right. When Spotify released Wrapped (a personalized overview of music listened to over the past year) it declared: “This year, you had layers like an onion. But you listened to music, unlike an onion.” Drawing inspiration from Spotify, the 2022 mortgage market had layers like an onion, and after peeling them back, it left our eyes stinging like an onion. To help lenders make sense of a tumultuous year and prepare for 2023, Sales Boomerang + Mortgage Coach are bringing together Alex Kutishin, Dave Savage, Rob Chrisman and MBA Chief Economist Mike Fratantoni to discuss their 2023 forecasts (which hopefully look less like an onion) and give lenders advice on how to capture market opportunity next year. Register now to wrap up your year with us on Thursday, Dec. 15 at 2 pm ET.

NEW EBOOK: Planning for 2023: How to Recoup Revenue, Save Costs & Drive Loan Volume in an Uncertain Market. The new year is right around the corner: Are you ready to hit the ground running? If you’re looking for fresh strategies to boost margins and open up new areas of opportunity, mortgage solutions provider Maxwell is here to help. To arm you with confidence, Maxwell interviewed four mortgage veterans (Maxwell’s Jim Smith, CMB, Alan Parris, and Peggy Rubadue, along with Thrive Mortgage’s Donielle Geiser) on best practices to tackle 2023’s market. With this free 12-page download, you’ll receive actionable advice to better use technology to improve efficiency and drive borrower leads, grow product and channel offerings sustainably, and flex your business to changing borrower needs. Ready to view 2023 as a call-to-action instead of an insurmountable challenge? Click here to download Planning for 2023: How to Recoup Revenue, Save Costs & Drive Loan Volume in an Uncertain Market.

Credit report fees are going up. So, smart lenders are figuring out how to grab those fees from borrowers earlier in the process. Using Fee Chaser by LenderLogix, borrowers get a text message sent from the LOS, they pay the fees in real-time via credit card, the LOS is updated automatically, and the receipt is posted to the eFolder. Appraisal fees, credit report fees, condo docs, and even first mortgage payments. Let LenderLogix chase down the fees for you with Fee Chaser.

As we head into the final weeks of 2022, AmeriHome would like to wish all industry participants a happy and healthy holiday season. It would also like to remind readers that, as the largest bank owned Correspondent lender, AmeriHome’s commitment to the Correspondent channel is unwavering and it continues to develop products that will add value to its customer base. In the coming weeks, expect to see AmeriHome rollout the following enhancements and tools: VA loan amounts over $1 million, 3-2-1 and 1-1 Temporary Buy-downs (they already offer 2-1 and 1-0), a Temporary Buy-down calculator, and Freddie Mac’s ACE+PDR appraisal waiver. Non-Delegated clients should be talking to their sales rep about how to leverage Indecomm’s Income Genius using AmeriHome’s white label service: it’s a great opportunity to automate income calculations for your self-employed borrowers before you submit the loan and improve the speed and accuracy of your loan approvals. Reach out to get connected.

“Are you looking for a lender who provides flexibility to your borrowers, allows them to “tell their story” on complex Non-QM loans, and doesn’t take days to underwrite your files? Bring them to IMPAC®, where we employ a common-sense underwriting approach. Our experienced in-house operations and underwriting teams can set up, disclose, and underwrite your files within 24 hours; rush files are usually completed the same day. Borrowers are eligible to receive a credit at closing if their loan reaches CTC status within 21 days through our 21 & DONE™ program. We continue to navigate our brokers through challenging waters, and, as a Non-QM pioneer, our brokers can leverage our 27 years of knowledge and expertise in alternative credit. Contact an Impac AE and see how NQM is in our DNA™.”

With latest MBA data showing per-loan losses of $624 and record per-loan costs of $11,000, it’s time to get real about tech you need vs. want. Plus when home prices are the biggest question all consumers have right now (and we’re very close to the market balance sweet spot for buyers and sellers), ComeHome by HouseCanary is how you bring purchase borrowers (whether a first-time buyer or a seller who needs to buy) into your funnel, keep their attention through their home shopping, keep their real estate agent looped in, and get them closed. Here’s all the latest market outlook data to keep you sharp and answer the 3 most critical housing questions to start 2023.

In today’s mortgage market, it’s not only harder to compete for top lending talent but more expensive. You could just keep throwing money at the problem, but that’s not a sustainable strategy. You need a compensation strategy that rewards top talent in meaningful, not just monetary, terms. A strategy that helps attract and retain the best employees while boosting morale is ideal for both the employer and the employee. In this blog post, we’ll tell you how to get there. Contact the Richey May tax experts to learn more.

Another Business Decision and Other TPO News

“Last year, U.S. Bank announced its intent to acquire Union Bank. In that time, U.S. Bank leaders have taken the time to review and understand the consumer lending operations at Union Bank as allowed by regulatory requirements. Following that comprehensive review, U.S. Bank has decided to exit the Wholesale Mortgage business acquired as part of the MUFG Union Bank transaction. This decision is consistent with the strategy U.S. Bank embarked on several years ago to focus more on Retail, Correspondent and HFA lending.

“The decision was not made lightly. We are proud of our work with you in our Wholesale Lending business, and through this transition, we aim to ensure your customers are not impacted. To prepare for this transition, Dec. 14, 2022 will be the last day to register loans and February 17, 2023 will be the last day to fund. The following guidance will help you plan to manage your existing pipeline with us…”

LoanWyse is offering a new Non-QM 2nd Mortgage. EquityWyse allows score down to 660, loan amounts up to $350k, max combined lien $1.5mm, DTI up to 50%, reserves or assets not required, exterior-only appraisal form 2055, owner occupied, second home, and non-owner occupied are eligible.

Pennymac will update the footnote for the ‘Purchase Special’ LLPA effective for all Best Efforts Commitments taken on or after Friday, December 02, 2022. View Pennymac Announcement 22-77 - Updates to Conventional LLPAs for details.

In FHFA news, and therefore Fannie & Freddie and therefore investors, 30-Day Notice of Submission of Information Collection "Community Support Requirements" for OMB Approval has been posted.

Capital Markets

The bets are on the Federal Reserve Open Market Committee delivering a 50bp rate hike at its December meeting and targeting overnight rates around 4.9% by end-2023 and seeing the first cut coming in 2024. Any news and speeches will continue to highlight elevated inflation and participants will still see the balance of risks to the upside. On balance these changes will allow Chair Powell to justify the step down in pace while maintaining the Fed's commitment to fighting inflation. Any questions?

Risk-free U.S. Treasuries are a great investment in times of uncertainty. Treasuries signaled growing concern about the prospects for a U.S. economic downturn yesterday, rallying for the second consecutive day and pressuring yields down to levels not seen since mid-September. Detracting from sentiment has been worries that the Fed will hold rates higher for longer after recent strong data.

If it meant rates dropped and origination volume returned to last year’s levels, would you trade that scenario for a new deadly COVID variant? A recession? Nuclear war? Some LOs I know would sell their first born for rates back in the 3s, but I digress. The risk of nuclear war was raised yesterday, after Russian President Putin said as much, though he also said that Russia does not want to "wave around" its advanced weapons.

Turning to today, we have another light economic calendar. We’ve already received initial jobless claims (unchanged at 230k, as expected) and continued claims (1,671,000, up slightly). Later this morning brings Freddie Mac’s Primary Mortgage Market Survey for the week ending December 8. Last week, the 30-year fixed mortgage rate eased 9-basis points to a still-high 6.49 percent. We begin the day with Agency MBS prices worse a solid .125 and the 10-year yielding 3.46 after closing yesterday at 3.41 percent.


“Rates. Inventory. Prices. When everything is changing, Planet Home Lending stays steady. We’re in it for the long haul, built to withstand market forces. We service most of the loans we originate so MLOs can create customers for life. And we expand strategically into markets where we can reach more borrowers and close more loans. With data-driven marketing, award-winning leadership, and strong financial backing, Planet is the place to be, no matter the market. There’s no better time to reach out to Eastern Divisional VP Kathryn Edelen (301-502-2493), Western Divisional VP Lynette Hale-Lee (818-321-1260), or VP of Talent Acquisition Peter Briggs (435-709-6287). Shouldn’t you #LandAtPlanet?”

Flagstar Bank Home Loans takes pride in providing a best-in-class FHA loan experience with an entire support network specifically dedicated to government mortgages. From appraisals to underwriting, these experts close FHA loans on time. At Flagstar, the average DE underwriter has more than 10 years of experience in FHA and USDA loans. This well-seasoned support team understands credit methodology to help more borrowers and can provide manual underwriting, even for those with credit scores starting at 580. By the way, if you’re an originator who thrives in the purchase market and wants a mix of government loans along with 203(k) renovation loans and other products, balance sheet and a national footprint with the ability to originate in all 50 states, then reach out to Flagstar today. Be part of a team that serves the underserved by providing access to home ownership through these loan options.

Though rates are up and some of your customers may be hesitant, there’s really no need for concern. With New American Funding’s 5 Year Rate Protection Pledge, you can help borrowers buy today with confidence, knowing that if interest rates drop at any point in the next five years, eligible customers may be able refinance into a lower rate with no lender or appraisal fees. All it takes for you to offer this peace of mind is becoming a loan officer with New American Funding, the nation’s leading independent mortgage company. Not only does New American Funding care for customers through the mortgage process, it also services 97% of loans in-house and was named #1 in Customer Satisfaction among Mortgage Servicers by J.D. Power in 2022. If you’re ready to bring your career to a company that positions you for long-term success, contact Jordyn Dexter today! 800-450-2010 x7651. EOE