Pre-Qual, Vendor Mgt., Subservicer Review, Warehouse Products; Pandemic to Endemic?

As I head to Northern California, and mourning the loss of Meatloaf, I’m thinking, “Dang. I guess that I shouldn’t have put my entire 401(k) into Peloton stock a year ago,” a great combination of home exercise and technology. Brad Paisley sang, “…And I'd have given anything to have my own PacMan game at home. I used to have to get a ride down to the arcade, now I've got it on my phone.” Mortgage loan originators can’t do anything about interest rates, but they can do something about their service & technology they use. Technology is roaring ahead, whether you’re on board or not, and it is certainly roaring ahead in other, non-mortgage areas. Do you have your digital driver’s license? Using your face for a boarding pass? Try The Frostbite Alert Coat. The faux fur-lined coat has a patch on it that tells you when temperatures are too dangerous for your pet so you can prove to them it's time to head inside. You may soon be able to taste the culinary delights from shows like Top Chef or The Great British Baking Show. Meiji University professor Homei Miyashita wants to introduce flavor to our screentime with Taste The TV. But be careful out there with technology and data! Venders and lenders, if they are responsible for a data breach and a release of customer information, need more than a short note of apology. As this article from attorney Phil Stein shows, the penalties can be huge and remind us that “An ounce of prevention is worth a pound of cure.” (Today’s audio version of the commentary is available here and this week’s is sponsored by Sagent. Today features an interview with Tom Hutchens, Executive Vice President of Production for Angel Oak Mortgage Solutions on the non-QM industry in 2022 and the return of private money into the mortgage space. Sagent delivers the modern experience customers expect from loan originations to servicing with platforms that let consumers manage their home-owning lives from anywhere.)

Broker and Lender Products and Services

We’ve all seen the headlines regarding “Supply Chain Issues,” “Shipping Backlogs” and “Rising Lumber Prices.” Most builders, lenders, and ultimately borrowers, involved in the mortgage process have not been spared the effects of this phenomenon over the last couple years. It can cause havoc for all involved when confronted with delays and cost overruns, especially in a volatile market. Would a Float Down Rate Lock that allows up to 20% increase to the loan amount and an optional 90-day extension feature save your borrower and help you close more loans? Read the latest blog  “Flexible, Split-Fee, Float-Down Commitment” for New Construction. The borrower receives loan amount and rate protection from rising construction costs, rising rates and construction delays. For over 25 years, Mortgage Capital Management has helped clients maneuver these headwinds by providing innovative products, part of a complete pipeline management solution. Experience Delivers Superior Results! Contact sales@mortcap.com or call 858.483.4404 ext. 220 to start a conversation today.

Despite the difficulties presented by the current market, Mid America Mortgage has the loan programs brokers need to be competitive and get borrowers into their dream home. Mid America’s Rosebud down payment assistance program offers no payments and no interest for 5 years, no income limits on FHA, no buyer restrictions, total loan forgiveness after 5 years and 2% to 6% in available assistance. Eligible loans/property types include FHA and USDA loans, single-family residential, condos and townhomes. For borrowers seeking to build and not buy, Mid America also offers a one-time close construction program to streamline the financing process. Brokers interested in joining Mid America’s team should contact National Director of TPO Lending Adam Rieke. For more information on the one-time close program, contact Division Manager Soliman Martinez.

“The world is complicated enough. That’s why Flagstar Bank believes in simple. Flagstar has simplified the warehouse-lending experience in every way, starting with simple pricing. Flagstar charges one draw fee, with none of the wire, shipping, or collateral fees that other lenders charge, so you know what your costs are. End of story. Flagstar also offers you a single point of contact. Your assigned processor gets to know you and your preferences so they can resolve issues fast. That means your loans close on time and your reputation is protected in the marketplace. Finally, Flagstar offers one-stop shopping for your mortgage warehouse line, MSR and servicing advance financing -- even your business operating account and treasury management needs. Discover the difference simple makes. Talk to Jeff Neufeld or Joe Lathrop to start a conversation, or visit Flagstar.com/Why to learn more.”

“Do you need instant access to loan programs and pricing that’s easy to use? Do you need to have your clients’ bank statements analyzed quickly? Then you need iQualifi and iAnalyze from Sprout Mortgage. During our next Scenario Station Webinar, we will review both tools and show you how iQualifi is your go-to program & pricing engine and how iAnalyze enables you to upload your clients’ bank statement for analysis and reporting in under one hour. Learn more during the Scenario Station Webinar by Sprout Mortgage on Wednesday, February 2nd at 9:00 am PT. Register now!  Remember to submit your unique loan scenario on the registration page.  Sprout is committed to providing product education and marketing assistance to help you grow. Loan Scenario Desk, complimentary Bank Statement Analysis through iAnalyze, Condo Review service, and complimentary marketing tools via The Sprout Marketing Store mean you can serve more borrowers in less time and with less effort. Loan amounts up to $10 million. Register today.”

How to win the 2022 purchase war: Purchase loans will be 75% of the market this year, and there are only 4.79m purchase loans to go around. To win, you must convert more pre-approved buyers and not lose them to home search portals that sell those leads off. ComeHome.com by HouseCanary, a national real estate brokerage, makes your firm, and your sales force, the most modern home search & homebuyer engagement player in the game. Talk to Sales.

As a lender, you can rely on Richey May’s Subservicer Oversight Review for standard loan-level testing on 25 loans in your portfolio, focused mainly on default and escrow attributes. Sometimes that’s enough. Sometimes it’s not. Are there other areas you wish you knew more about? Could stopping at compliance be your biggest oversight? Richey May's loan-level testing is tailored to fit your needs and digs deep to provide valuable insights into how your portfolio is serviced. We look to surface new details and strengthen the client-subservicer relationship. We test the areas where you’ve received consumer complaints so you know exactly what happened and what you can do to drive value for your business. For more information on Richey May’s Subservicer Oversight Reviews and custom loan-level testing, contact us today!

Whoa, this four-day work week flew by fast! Fortunately, there are vendors that can help manage our workload and provide expertise when time and capacity is limited. There is no doubt that fintech vendor adoption is finally reaching critical mass. This increase in adoption has heightened the need for lenders to strengthen their vendor management programs to manage the specific risks related to fintech vendors adequately. But wait; there are also vendor management service providers that can help. Having the right vendor management partner in place can bring in numerous benefits such as comprehensive risk reviews, cost reduction in overhead, improved compliance, and automation. Let MQMR’s white paper Fintech Vendor Management Whitepaper guide you through it all, so next time you can enjoy the long weekend without compromising your business!

Want to know a dirty little secret? Most pre-qualification letters are issued on word docs that loan officers keep handy so they don’t have to go into the LOS every time a borrower needs a letter updated. Even worse, many loan officers just forward the word doc to their Realtors and let the agent update the letter themselves! Yikes! When you use QuickQual by LenderLogix, borrowers and Realtors can securely update pre-qual letters within parameters set by the Loan Officer, and since it’s integrated with your LOS, you can be assured that your loan officers remain compliant while delivering an amazing customer experience. Head over to LenderLogix and they’ll text a demo right to your phone.

Capital Markets

How investors are buying in 2022: Inventory is still down but the top buyers on Wall Street are using HouseCanary’s Acquisition Explorer to know real-time when a new matching property in their buy box hits the market. Use HouseCanary’s Property Explorer to make quicker and smarter purchasing decisions. Try Property Explorer for free to see the true value of any home.

In the first uneventful day for Treasuries in quite some time yesterday, we were still reminded of a lot of economic warning signs: jobless claims surged to a three-month high (286k) as either the omicron variant ripples through the labor market or the labor market is softening in general (or both), existing home sales dropped much more than expected (4.6 percent) in December as inventory fell to an all-time series low of 1.9 months’ supply, and mortgage rates surged again in Freddie Mac’s Primary Mortgage Market Survey: the 30-year fixed rate was up another 11 bps to 3.56 percent, the highest since March 2020. Equity indices have officially gone into correction territory (>10 percent decline) and the Fed has a big problem on its hands: the labor force participation rate is still well below pre-pandemic levels, which will slow the economy as rising mortgage rates crimp consumer demand. Fortunately, the omicron variant suggests the pandemic may be shifting to a more manageable endemic phase, unleashing pent-up demand and faster growth in major economies. March Fed Funds futures now see a 90+ percent probability of a rate hike when it was pegged as only a 43 percent chance a month ago. 

Black Knight reported that 2021 came to a close with foreclosures at an all-time-record low (0.24 percent of loans are in active foreclosure in December and the month’s 4,100 foreclosure starts are some 90 percent below December 2019 levels) and with the national delinquency rate right above near-record low point just prior to the onset of the pandemic. The delinquency rate fell nearly 6 percent in December to reach 3.38 percent, a nearly 45 percent reduction from this same time last year, bringing the number of mortgage-holders who are 30 or more days past due but not in active foreclosure below 1.8 million for the first time since the initial runup at the start of the pandemic. Finally, prepayments fell by more than 7 percent in December and are poised to fall even further as rising rates continue eroding refi incentive (refinances have historically driven the vast majority of prepayment activity).

Today’s economic calendar contains just one scheduled economic data release: December leading indicators, expected to increase 1.1 percent month-over-month when released later this morning. The Fed Desk's MBS purchase schedule sees the Desk in 30-years for up to $3.7 billion across UMBS30 2 percent and 2.5 percent followed by GNII 2.5 percent and 3 percent. In the very early going, Agency MBS prices are +.125-.250 and the 10-year is yielding 1.79 after closing yesterday at 1.83 percent.

Employment, Opportunity, and Appointments

If you’re wanting to take your Originating career to the next level, we will get you there! In most cases, when an originator hits a plateau, it’s because the platform they are in doesn’t allow them to grow beyond what they’ve already achieved. One of the top originating teams in the nation is looking to help one originator achieve their goals and reach the next level of their career. Looking for a new opportunity is scary, but when that opportunity has a proven track record, a dedicated operations team that closed over $190M last year, fear turns into excitement! Top producers have some advantages not available to everyone. It’s time to give yourself those same advantages, start dominating your market, and take your career to the next level. If you close $30M or more per year and are looking for a breakthrough, contact Anjelica Nixt to schedule a confidential conversation. 

The Robert Coomer Group, a division of Celebrity Home Loans, celebrates its 1-year anniversary. The strategic partnership between Celebrity Home Loans and RCG has not only exponentially increased capacity for providing clients exceptional service, but has inspired new initiatives and growth into additional markets across the country. RGC’s Consumer Direct Hybrid Retail Model equipped with CHL's technology guided process puts service first, empowering and educating consumers on their ability to become homeowners. "Our vision has always been to create a positive culture and joyful experience for everyone involved in the home loan process,” expresses Coomer. With $1.09 billion in division production in 2021, the RGC retail division is projected to see continued growth in 2022. Headquartered in Nevada, the Robert Coomer Group is a nation-wide, full-service mortgage loan provider. For more information, please contact Anyah Ellis (702-419-0179). Celebrity Home Loans, LLC NMLS #227765.

Towne Mortgage Company, an established national TPO lender is looking for an energetic and driven Regional Manager to continue to drive the Company’s tremendous growth. The Company is a FNMA/FHLMC/GNMA seller/servicer and retains nearly all of its servicing in house. The TPO team benefits from the ability to sell three lines of business within unsaturated markets across the country, as well as a very competitive compensation/ benefits plan and a supportive organization that operates like a family. Success at this company is driven from a culture of teamwork, experience in TPO and an understanding and appreciation for the outside sales model. Tired of being lost in the shuffle of big company changes and lack of direction? If this sounds like the opportunity that you have been looking for, please contact Mark Zierott for more information and to arrange a confidential conversation.

Harness the power of a leading digital mortgage lender to build your brand and grow your business. Wyndham Capital Mortgage just launched a new retail lending division that wants you to help change the way retail lending is done. By joining our retail lending team, you’ll benefit from a human-focused approach to mortgage lending combined with an ongoing investment in technology to provide efficiency, brand awareness and convenience to our loan officers and a best-in-class experience for our customers. Wyndham Capital offers retail loan officers the competitive edge they need, the ability to close loans faster than most and the culture to support them professionally and personally. Ready to grow your network and your business? Click here to learn more or email us.

When it comes to mortgage marketing talent, few stand out like David King. Having refreshed the branding at several top mortgage companies, he has joined the leadership team at Homeowners Financial Group as its new Chief Brand Officer. In this new role, he will lead the team of talented marketers to refresh the creative strategy to highlight the people-first mentality woven into the company's cultural fabric. "David is a passionate and talented storyteller who shares our commitment to positively impact the lives of our colleagues, partners, and clients. I have no doubts that with David's creative energy, we will transform how we tell our story." shared Bill Rogers, President & CEO of Homeowners Financial Group. David explained, "To excel in branding, there must be passion, care, and trust within the organization. There is no shortage of this at HFG, and I am excited to expand upon the great work that has come before me."

“Did you know that Consolidated Analytics has a mortgage Consulting and Advisory division? Now you know! We provide a myriad of services including technology (Servicing and LOS) transformation, compliance management systems, policy and procedure development and maintenance, compliance, quality control, risk management, and process optimization. Our workforce and talent management team partners with top mortgage banks, private lenders, servicers, and credit unions to source and place top talent for permanent positions or consulting roles. Here are just a few highlighted openings: 1) Construction Administration Analyst for a Dallas-based bank; 2) Instructional Designer for a mortgage REIT/investment firm; 3) Mortgage Servicing System (MSP) Analyst for a full-service mortgage lender;4) Default Servicing Workstream expert for MSP for a full-service mortgage lender. Explore openings on our careers page! If you are a mortgage company, bank, or credit union that could benefit from our talent network and expertise, reach out to us!”

Guild Mortgage tapped Victoria Garcia DeLuca as its first vice president of marketplace diversity strategy to lead the company’s initiatives to promote diversity, equity, and inclusion in lending. “The new position was created as part of the company’s long-term strategy to expand its position as a specialist in purchase loans for first-time homebuyers to more diverse and underserved markets.”