Subservicing, Profitability, Servicing Products; Investor's Conventional Conforming Changes
Mortgage rates dropped after mid-June. Momentarily switching gears, given their role in cakes, breakfasts, custards, and breads, if eggs didn’t exist, would a food scientist have to had invented them? I mention this because the benchmark price of eggs in the U.S. was down to $2.16 a dozen two weeks ago, down 37 percent from the record high $3.38 a dozen in mid-July. These lower prices should be reflected at grocery stores with prices dropping by a dollar a dozen or so. The cause for the spike in the price of eggs was an avian flu that ravaged the U.S. population, killing 30 million commercial and wild birds, and the successful recent moves to repopulate the hens. The downward trend in prices is expected to continue. Homeowners and real estate agents don’t mind a return to “normal” inventory in markets and historical price appreciation rates. But this sensationalist headline will grab some readers: “Home prices plunging in ‘pandemic boomtowns’ as market slumps!” It seems that “plunging” has a different meaning than what I thought it meant as the article discusses slowing appreciation and some price cuts on the listing prices of houses. (Today’s podcast is available here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services in the mortgage industry and in banking. Today’s has interview e1even’s Ryan Roberts on generating high value leads and calculating return on lead gen efforts.)
Lender and Broker Services, Software, Programs
Have you followed up on the CFPB’s key observations? Clarifire’s “Should Servicers Be Worried About the CFPB’s Key Observations” blog looks at what and how you need to position your organization to minimize default risk exposure, ongoing industry change, and regulatory scrutiny. Rapidly changing forbearance and foreclosure activity creates continued risk for mortgage servicers. Don’t fall into complacency without implementing workflow automation to minimize risk for your borrowers and your organization. As foreclosure volume creeps up and pandemic protections wane, prepare your default servicing operations for ongoing industry volatility. With intelligent, seamless servicing automation, CLARIFIRE® empowers you with the capabilities to elevate your organization’s processes to capture CFPB metrics and provide the operational visibility that is critical to success. Deliver a better approach and BRIGHTER AUTOMATION® with CLARIFIRE®.
Sports history is full of great comebacks, but one of my favorites has to be the story of high school track star (and later Olympian) Michael Stember. His come-from-behind victory at the Cal State Meet in ‘95 has been viewed tens of millions of times and inspired a generation of runners. After putting on the gas a little more than halfway through the 1600 meter, he maintained his momentum ‘til the very end. With 2022 more than half over, lenders are wondering if it’s too late to turn their year around. Fear not! Get exactly what you need to finish the year strong from the most strategic minds in mortgage tomorrow, Wednesday, August 24, at 1 pm ET. Leave your losses behind you and say goodbye to letting the market dictate your success or failure. Register now.
Miller High Life has combined beer, peanuts, tobacco smoke flavor, caramel, and chocolate to create the newest culinary abomination on the market: dive-bar-flavored ice cream. Clearly, not all innovation is appetizing, but modern technological advancements have made homebuying a simpler, faster and safer process that everyone can enjoy. Watch this 2-minute platform overview to see how SimpleNexus helps lenders maintain profitability while providing a convenient, collaborative, and efficient mortgage experience. With tools that support lender productivity and a streamlined borrower journey, SimpleNexus supports digital collaboration between lending executives, originators, real estate agents, and borrowers, from pre-application to post-close. Want to live the mortgage high life? Sample SimpleNexus’ robust toolset with a custom demo.
When it comes to subservicers, partnering with one that understands your company culture can be the difference between a flourishing business and one full of unhappy customers. Obsessed with growing happiness by providing a best-in-class experience for its clients and their customers, TMS Subservicing understands the importance of appropriately representing your company brand and culture in every customer interaction and how that interaction directly affects your business and bottom line. Kevin Hobt, SVP of Post-Closing Operations at First Community Mortgage, and his team saw firsthand how a culture mismatch and subpar customer service from their subservicer negatively impacted their business. Read the extensive pros and cons list Kevin and his team evaluated before making the switch to TMS and see how partnering with TMS has grown happiness for First Community Mortgage and its customers. Read the full blog here.
Lenders and Investors React to Freddie and Fannie Changes
Flagstar got the word out that its Fannie / Freddie minimum FICO for 2nd home or Investment Property is 620.
Fannie Mae recently published guide updates announcing changes to several topics, including but not limited to Address Confidentiality Programs and updates to ALTA forms. View AmeriHome Correspondent’s Product Announcement 20220804-CL for details.
Effective with new commitments taken on and after Monday, August 15, 2022, the administration fee for Conventional, Government, Portfolio Express, and Portfolio Jumbo loan transactions being underwritten by AmeriHome Correspondent through the Non-Delegated Underwriting Program will change. View new fees in AmeriHome Announcement 20220802-ND.
FAMC/Citizens Correspondent National posted information on Conventional Products updates and enhancements. See Bulletin 2022-14 for details including additional information and all lock, delivery, and purchase by dates, if required.
Wells Fargo Funding posted Newsflash C22-033 containing information including correction and reminder: Minimum documents required to consider a Loan delivered – conventional conforming Loans – effective August 15, 2022. Reminder: Prior Approval underwriting option discontinued – conventional Conforming Loans – must purchase by August 26, 2022.
Freddie Mac recently published Guide Bulletin 2022-11, addressing multiple topics, including updated requirements related to ADUs and reciprocal project reviews with Fannie Mae-approved and certified projects. See AmeriHome Correspondent Product Announcement 20220810-CL - Updated ADU Requirements for details.
AmeriHome’s requirements for Fannie Mae and Freddie Mac loans with a Desktop Appraisal have been updated. View AmeriHome Correspondent Product Announcement 20220809-CL– Desktop Appraisal Requirements Updated for GSE Loans.
FAMC/Citizens Correspondent National Bulletin 2022-15 includes information on Conventional Products – Appraisal Waiver Update.
Capital Markets
Sometimes there just isn’t much going on in the bond markets, so I won’t waste your time with a bunch of rhetoric. With traders bracing for hawkish rhetoric from Federal Reserve officials at the Jackson Hole retreat later this week, and the market not receiving any noteworthy economic data to begin the week, rates rose yesterday. There is a growing sense that Fed Chair Powell will push back against speculation that the Fed's rate hike cycle is due for a pause to assess its current impact. September rate hike odds for 75-basis points have now ticked up to over 56 percent.
Today’s economic calendar began with Philadelphia Fed non-manufacturing for August. Later this morning brings Redbook same store sales, preliminary August S&P Global PMIs, July new home sales (expected to tumble), and Richmond Fed manufacturing and services. Today’s lone scheduled Fed speaker is after the close when Minneapolis’s Kashkari delivers remarks. We begin the day with Agency MBS prices are down .125 and the 10-year yielding 3.06 after closing yesterday at 3.04 percent.
Employment, and IMB Wanted!
National portfolio lender looking to acquire a smaller IMB serving high-net worth clients! A leading national portfolio mortgage lender is looking to acquire a consumer direct or distributed retail IMB that exclusively or primarily serves high-net worth clients. Ideal candidates will have funded $400M to $2B in loan origination volume in 2021. With more than 60 years of success in wealth management and investment banking, this buyer has built a strong reputation for client-focused service and community outreach. The company is licensed to originate in all 50 states. To learn more, please contact David Hrobon or Garth Graham at the STRATMOR Group.
Atlantic Coast Mortgage has partnered with NFTYDoor to offer its clients a fast and seamless digital experience for Home Equity Loan (HELOCs) options. With interest rates doubling over the past year, cash-out refinances have become less economical for many homeowners. As a result, ACM has chosen to incorporate NFTYDoor into their evolving product offerings to allow homeowners to leverage their tappable equity to accomplish their short- and long-term financial goals. "We are always looking for the best products for our loan officers to share with their customers," said Patrick Collins, Chief Strategy Officer of ACM. "Homeowners need an efficient way to tap equity." By implementing NFTYDoor, ACM will deliver a less complicated and more accessible solution for Homeowners to access $25,000 to $250,000 of their home's equity with a 25-year fixed-rate term. If you'd like to join a leading lender, visit ACM Careers here to start a conversation.
Account Executives, are you looking to expand into new territories? Grow your pipeline and spread Kindness alongside other motivated and seasoned professionals at Kind Lending, founded by CEO Glenn Stearns. Kind Lending is adding Kind Ambassadors in all territories to join the upbeat, collaborative wholesale sales team who are equipped with a full suite of loan products including agency and Non-QM options with competitive financing solutions for a range of borrowers. Join the expanding TPO team to take advantage of competitive compensation and unparalleled company culture fueled by leadership dedicated to shaking up the mortgage industry. To apply, reach out to Delfino Aguilar or submit your confidential resume.
Synergy One Lending Welcomes Steve Haddad and Scott Engel! Synergy One Lending is at it again! We’re thrilled to welcome Scott Engel and Steve Haddad as our two newest VPs of Production. Based out of Los Angeles and Southern Utah, they’ll lead a mega-production team including several Top 1% originators and help the company’s continued growth across the country. Why Synergy One, Haddad was asked? “It’s simple: Transparency, Technology, and Partnership.” Synergy One CEO Steve Majerus added, “It just doesn’t get any better than Scott and Steve. Tremendous leaders who will allow us to continue to separate ourselves in the industry, with a particular focus on Jumbo and Non-QM production.” For more information on what has so many top producers and elite leaders choosing Synergy One, reach out to President, Aaron Nemec, or SVP of Strategic Growth, Ben Green, today!
Are you a top producer who knows you’re not in the best situation, but the comfort of being busy the last 2 years has stopped you from making a move? “There are risks and costs to action. But they are far less than the long-range risks of comfortable inaction.” (John F Kennedy). It’s not uncommon for a veteran top producer to fall into the trap of comfortable inaction. We provide our branches access to raw pricing, a low transparent corporate margin, and we encourage our branches to build their own brand/branch the way they want. We provide our originators a plug and play opportunity to join an existing branch, utilize a dedicated operations team and access to some of the best coaching in the industry. It’s time to learn about the platform you’ve earned. Contact Anjelica Nixt to forward your note and schedule a confidential conversation. You Deserve Better!
“The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic” You can’t fix tomorrow's problems with yesterday's technology. Canopy mortgage has created a better way to gain ultimate control with our proprietary Loan Origination System built by industry experts for top producers. Join our team of forward-thinking loan officers for access to unmatched pricing, highly efficient loan processes and faster closings! Finally a sustainable business model that is good for every party involved in the mortgage process. Reach out to Josh Neumarker at Canopy Mortgage for more information 888-696-9076.”
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 800-450-2010 x7651 EOE.
The Robert Coomer Group (RCG), a division of Celebrity Home Loans, is proud to announce its partnership with Candlelighters Childhood Cancer Foundation. Through this partnership RCG has been able to donate over $70,000 to Candlelighters. "At RCG, one of our core values is to create a positive impact in the communities we serve. Through our partnership with Candlelighters we are able to help donate money and resources to provide emotional support, quality of life programs, and financial assistance for children and their families affected by childhood cancer with the goal of allowing them to focus on the journey, and most importantly, loving their child." Says Division President, Robert Coomer. Headquartered in Nevada, the Robert Coomer Group is a nation-wide, full-service mortgage loan provider. With over 20 years’ experience in the industry, Robert Coomer is ranked among the top producing mortgage originators in the nation by Scotsman Guide. For more information, please contact Anyah Ellis.
Freddie Mac Multifamily announced that Ian Ouwerkerk has been named SVP of Underwriting & Credit. (Ian has served as the interim senior vice president of Underwriting & Credit since the first quarter of 2022.)