Sales Research Papers; Fulfillment, Non-QM Products; Fed Balancing Act Continues

In Florida there are approximately 3,000 lakes, not enough to make it onto the leader board of states with the most named lakes (Minnesota, Wisconsin, Michigan, and Alaska are up there). (Here’s a bit of trivia: what is the only state without a naturally occurring body of water large enough to have a name?) Nebraska has the most rivers. I mention this, not to make you thirsty for a glass of clean, cold water, but to bring up that Nevada and Arizona may have their water allotment from the Colorado River cut. What might that do to property values? Florida has its share of rivers, despite the lack of elevation change (its highest point is only 345 feet above sea level). Here in Florida they’re not talking about water, but at the Florida Association of Mortgage Professionals attendees are talking comp, and the current STRATMOR blog is titled, “Lenders are Eying Compensation and Ops Trends.” In addition, don’t be too slow to right-size your company in tough times. How cash management is critical for IMBs. Stress test your liquidity position: know what you need to get through challenging times. Don’t repeatedly surprise your counterparties; communication is key. Don’t stop playing offense in terms of your sales staff and cost cutting. (Available here, this week’s podcast is sponsored by Agile, the mortgage industry's MBS fintech. Bringing the mortgage capital markets into a new digital era. From lenders to dealers, Agile is the new way to quote MBS. Today’s has an interview with Tawab Abawi, Director of Trading and Institutional Sales, on the role of broker dealers and the democratization of the MBS marketplace.)

Broker and Lender Programs, Services, and Software

Although the world’s longest inflatable obstacle course seems like a fun challenge, today’s lenders are already running the gambit of high inflation, interest rate hikes and low homebuyer demand… A much less amusing venture. With automated borrower retention and conversion from Sales Boomerang and Mortgage Coach, mortgage advisors can identify high-intent prospects, communicate their shop’s unique value, and win more business with ease. As NEO Home Loans’ Drake Bloebaum attests, “With the help of Sales Boomerang and Mortgage Coach, I was able to show a customer that my advice was worth $4.3 million, which is far more valuable than a 0.625% difference in interest rate. ”Overcome economic hurdles and cross the finish line a winner in 2022 with Sales Boomerang and Mortgage Coach.

What better way to understand a piece of mortgage technology's impact than to hear firsthand from people that use it every day? Join Patrick O'Brien, CEO of LenderLogix, on August 31st as he welcomes a panel of lenders and Realtors that have used QuickQual for their pre-approval and pre-qualification management for more than a year. The panel will discuss industry insights relative to pre-qualification to application conversion rates, how this technology impacts the homebuyer's experience, and what value it brings to referral partners. Because LenderLogix is an official ICE Mortgage Technology™ partner, these loan officers can issue their pre-quals using QuickQual right from Encompass®. No added work, just a ton of added value (for everyone involved). Register today for the event, or check out the sample QuickQual you can get sent right to your phone!

“Are you hitting a wall due to available pricing? Hit your growth goals with the help of Axos Bank. We continue to have some of the lowest rates for non-QM loans, with mortgage rates starting as low as 5.875%. Plus, the recent expansion of our leading non-QM products means you can provide portfolio flexibility to a wider range of customers – our loan amounts now span from $150K to $30MM (or more). Provide custom solutions and close more deals. Top programs include Cross-Collateralization, Bridge-to-Sale, Pledged Assets, DSCR, Deferred Interest, and Bank Statement Qualifying. Visit our website to learn more about our Wholesale and Correspondent Portfolio Lending and Residential Warehouse Lending opportunities. Or contact J Shoop, National Sales Director, to schedule a meeting with Axos Bank.”

PowerTPO ~ a partner you can count on! The market may be uncertain, but a strong, continuous partnership with us never will be. Our belief in the power of partnerships is the driving force behind our company’s values and mission. The Experience: With a combined 150+ years of TPO experience in our leadership team alone, we provide an unmatched level of knowledge and skill in the B2B sector of the mortgage industry. The Full Package: As a Direct Seller Servicer with a servicing portfolio of $6B and as a multi-channel fintech leader, PowerTPO services traditional Wholesale Brokers as well as Independent Mortgage Bankers (Non-Delegated). The Relevant Options: In a rising rate environment with limited housing inventory, our Lock and Shop TBD Program allows borrowers to become credit approved while searching for a property, giving them more power to negotiate. People, Process + partners = power! Visit here to become a PowerTPO partner.

“Are you considering non-delegated correspondent lending or want to explore new fulfillment options for your platform? Contact Rocket Pro TPO today to learn more. Led by Don Chiesa, SVP, a 30+ year industry veteran, our industry-leading platform delivers elite services to non-delegated correspondents. Our vision delivers the control, speed, and simplicity you need - starting with your dedicated Crew team – offering personalized responsiveness in operations/underwriting. PathfinderSM by Rocket is powerful technology that delivers answers you need while using our complete mortgage product menu. Our partners purchase loans are clear to close within an industry-leading 20 business days plus we’ll clear your warehouse lines with average purchase times of 3-5 days. And, in development, is our new fulfillment service that enables partners to leverage Rocket technology for all their disclosure needs including closing documents. Want to learn more about our new solutions coming soon? Contact Rocket Pro TPO today.”

Lending Research Papers

Have you checked out the 2022 ServiceLink State of Homebuying Report? This comprehensive report examines shifting experiences and approaches to homebuying and refinancing and changing attitudes about technology’s role in the process. You can also view a high-impact webinar that features expert analysis of the Report. Check it out here!

The future of the mortgage industry is eClosing, but positioning your business to provide fully digital loan transactions can be a lengthy and complicated process. Due to the cost and logistics of implementing Remote Online Notarization (RON), many lenders are embracing hybrid closings in the meantime to help lay the groundwork. Hybrid closings are the most effective path to RON eClosings, which is why many lenders who are ready to get started with RON are already doing digital closings of some kind. Read Radian’s insight report, Building the Foundation for RON, to learn more about hybrid closings and transitioning to RON.

Capital Markets

“Soft landing” or “hard landing?” That’s the question when pundits are discussing the outcome of the Federal Reserve’s actions. It’s hard to find a week where the Fed doesn’t steal the spotlight. Later today, the markets will get a more detailed view of what was discussed at the Federal Reserve’s July 26-27 meeting, when the FOMC raised its policy rate by 75-basis points for a second-straight meeting, as it struggles to bring inflation under control. Seeking Alpha points out that the weak inflation data last week shifted expectations for September’s hike to 50-basis points from 75. But mixed data this week on housing and industrial production has pushed the odds back to around 50-50 while the Treasury yield curve (10-year to 2-year) continues to flatten.

Hard landing fears triggered a selloff in bond prices yesterday, raising rates, with housing starts slumping 10 percent month-over-month in July to a seasonally-adjusted annual rate of 1.44 million, well below consensus. Though the figure was down 8.1 percent on a year-over-year basis, we’re still above pre-pandemic levels. Building Permits were roughly flat at 1.67 million, receding from a high earlier this year as buyers have left the market in droves due to surging mortgage costs. New home construction is expected to continue to decline through the rest of the year amid rising costs, declining affordability, and significantly lower home builder confidence.

In other news, total industrial production increased 0.6 percent month-over-month in July, more than expected, while the capacity utilization rate increased to 80.3 percent. Total production growth was supported by a solid increase in motor vehicle assemblies and utilities. The numbers will feed into the Fed's delicate recession/inflation balancing act.

Today’s calendar began with mortgage applications from MBA, which decreased 2.3 percent from one week earlier to the lowest level since 2000. We’ve also received July retail sales (flat, +.4 percent ex-auto). Later this morning brings business inventories, a Treasury auction of $15 billion 20-year bonds, and the minutes from the July 26/27 FOMC meeting. Following yesterday’s break, the NY Fed will be back with an MBS purchase operation targeting up to $446 million GNII 4 percent through 5 percent. We begin the day with Agency MBS prices worse .500 and the 10-year yielding 2.90 after closing yesterday at 2.82 percent after high UK inflation reports and retail sales in the U.S.

Employment; Investor Wanted

“Impac is hiring Wholesale Account Executives. Reach out to Lisa Livingston for more information. Equal opportunity employer. At IMPAC, Non-QM is in our DNA. And we’re working hard to help brokers finish their summer strong. We’ve recently improved pricing on our Bank Statement and DSCR products and are currently running a 25 BPS pricing special on all Non-QM loans locked between 8/15/22 through 8/26/22 (max LTV 80%). And back by popular demand is our Appraisal Special where borrowers receive up to a $500 credit towards the appraisal cost if their loan closes within 30 days of the submission date (for loans submitted between 8/12/22 through 8/31/22). This can be combined with Impac’s 21 and Done™ program (loan closings in 21 days or less: details here). Brokers continue to lean on us for competitive programs and a seasoned in-house underwriting team that boasts 24-hour turn times.”

Want to take your career to the next level? We will get you there! In most cases when an originator hits a plateau it’s not because of the market, 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 1 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 has closed over $1B in loans, fear turns into excitement! Top producers have advantages not available to everyone. Give yourself those same advantages, start dominating your market, and take your career to the next level. If you close $20M or more per year and are looking for a breakthrough, contact Chrisman LLC’s Anjelica Nixt to forward your note or click here to schedule a confidential conversation.

A boutique tech centered IMB, with reputable leadership and strategy to perform a retail roll up strategy, is seeking $2M investment (debt at 9%-10% return and/or equity) as an initial seed round. With achieved milestones, 2nd round institutional investors of $7-$8M have been arranged. The investor deck and plan revolve around an initial use of funds for targeted but national licensing expansion, the addition of some ops staff and subsidizing the recruiting / onboarding of new loan officers and branch managers. Target market will be middle America consumers and first-time home buyers, and there will be a special underwriting emphasis on Immigrants, Latinos and African American families. To review the deck and discuss the growth plan to the first $2B in retail production, please send serious or confidential inquiries to Anjelica Nixt for forwarding.

It’s time to realize your full potential in the mortgage business. Come to a place where other top performers call home and thrive. As one of the country’s largest, private, Latina-owned mortgage companies, New American Funding gives loan officers a voice in the business direction without the red tape. Just think, you could help make strategic decisions that meet your needs, not shareholder needs. It’s an approach that works for both your business and customers. In fact, it’s led New American Funding to be recognized nationally for customer satisfaction in mortgage servicing. Make a meaningful change today and contact Jordyn Dexter 450-2010 x7651 EOE

Acra Lending continues to expand its footprint as the industry’s leading private mortgage lender, and is seeking talented mortgage professionals to join the growing team! Now is the time to join a company that provides competitive mortgage lending programs and a seamless customer experience. Acra Lending, the leader in Non-QM lending, is currently hiring for Fix & Flip Account Executives, Wholesale Account Executives, Correspondent Sales, IT Professionals, and more. Apply at JoinAcra or email us to learn more about the opportunities we offer.