Cap. Mkts., CRM, Appraisal Bias, Pre-Qual Products; October Events and Webinars; S&D Loan Pricing Where?
Water is a powerful force: just check out this time lapse storm surge video from Ft. Meyers in Florida. Turning to metaphors, Sun Tzu said, “If you wait by the river long enough, the bodies of your enemies will float by.” Some investors and lenders may have adopted that phrase. We’re staring at the autumn and winter, and its ugly out there. Cutting costs fast enough? Best Capital, Finance of America’s retail division going to G-Rate (as reported earlier this week in this commentary) and perhaps closing its wholesale channel (with its low margins and high perceived risk warrantying all the broker business). AnnieMac (American Neighborhood Mortgage Acceptance Company LLC) “as a result of worsening market conditions, has made the difficult decision to cease Wholesale Operations effective October 31, 2022…” (Those impacted by mortgage companies downsizing can post their resume for free here and employers can view them for the nominal fee of $75.) Reports are trickling through about the level of pricing for “scratched and dented” loans. Whereas banks and credit unions can shift those over into their portfolio, independent mortgage banks have to sell them. If an IMB has a 3 percent, 30-year fixed Agency loan closed six months ago that is kicked back due to whatever reason, despite the borrower making their payments, they’re seeing prices around 65-70 cents on the dollar. A reminder to watch the underwriting and processing! (Today’s podcast is available here and this week’s podcast is sponsored by AIM-Port, an appraisal management platform built to reduce costs and elevate the borrower experience for lenders managing appraisal operations. Go to aim-port.com for more information or click here to reach out to a team member today!)
Lender and Broker Products, Services, and Software
“Come and chat with Axos Bank’s Warehouse Lending team at the MBA Annual Convention and Expo in Nashville, Tennessee, from October 23-26. Our diverse array of Agency, Jumbo, and Non-QM products, expanded portfolio programs, and extended cut off times (6:15 p.m. ET) provide you the flexibility you need in this dynamic market. Schedule a meeting with us to discuss your business strategy and how a partnership with Axos Bank can help grow your business: email Eric Nelepovitz to lock in a meeting time. Or contact the Warehouse Lending team at 888-764-7080 to learn more about our program.”
From Mike Tyson’s Punch-Out!! (1987) to Tony Hawk’s Pro Skater (1999) to annual releases like Madden NFL, numerous video games have featured professional athletes. And starting next year, FIFA 23 will feature athletes from Ted Lasso’s fictional AFC Richmond team. If the Apple TV+ show has taught us anything, it’s that winning is all about teamwork. Axia Home Loans has put together a winning team with its implementation of Sales Boomerang + Mortgage Coach and is on track to source more than $100 million in extra loan volume this year. By combining Sales Boomerang alerts with the Mortgage Coach Total Cost Analysis, Axia converts more applications into closed loans and creates clients for life. You don’t need a catchy song or slogan to be successful, just the right team. Download the free case study or look for the SBMC team in Scottsdale next week at HW Annual.
Automation technology is transforming the mortgage industry. Top leaders like Jodi Hall (NMB) and Kevin Peranio (PRMG) are using platforms like Capacity to bring AI to their teams, increasing productivity. Originators and brokers use data from many external sources to meet the regulatory requirements during the loan process. The time-consuming task of manually searching contracts, bank statements, loan applications, and guidelines is inefficient. The mortgage industry is in dire need of a platform that securely integrates with lenders’ key systems, providing loan officers with instant, actionable answers about borrower opportunities, loan statuses, guidelines, and more. Capacity reduces the time that LOs spend logging into a sea of endless systems to find information. If this sounds familiar, see how Capacity can save your team time and frustration. See how it works.
“Lakeview Loan Servicing, LLC (Lakeview) is pleased to announce that we are partnering with the Ohio Housing Finance Agency (OHFA) on two exciting new programs, beginning with reservations on Monday, October 17, 2022: OHFA Refinancing Program – For those borrowers who have a 7-year forgivable second mortgage, which would be subordinated if the borrower refinances through OHFA. Borrowers in the Grants for Grads program or without DPA are not eligible. Offering 30-year fixed rate conventional and government rate-reduction loan options. OHFA Third-Party Origination: In order to give more Ohioans access to affordable homeownership, OHFA will allow the use of third-party originators (TPO). The TPOs will have access to the same loan products as OHFA’s direct lenders. If you are not an approved lender with Lakeview, please contact Lakeview at CRM@bayviewloans.com for an application and lender agreement. If you have any questions, please contact your assigned Lakeview VP of Business Development.”
“Fast time to value and unbeatable ROI are two reasons Total Expert’s Customer Intelligence solution was named the winner of the Innovation Challenge at this year’s Digital Mortgage conference. By pairing borrower intent with intelligent automation, lenders can connect with consumers at key moments of opportunity and close more loans based on customer insights. In two weeks alone, Prosperity Home Mortgage, LLC uncovered 1,200 opportunities they may have never known about. Join our webinar at 1 p.m. CT on Oct. 13 with Total Expert’s Dan Catinella and Jelaire Grillo of Prosperity Home Mortgage, LLC to find out how. Learn how your organization can accelerate deal flow, get more loans in the hands of loan officers, and why Total Expert is the all-in-one platform chosen by the nation’s leading lenders. Register today.”
If you’re going to invest in automation technology, it has to be good. It has to put more leads into the top of your funnel and convert more of them into buyers. The experience must hook them early, leaving no option but to finance with your team. QuickQual by LenderLogix provides that next-level experience and has proven to help lenders convert more than 60% of their pre-qualifications to applications. A user panel webinar held last month talked about how valuable homebuyers see this tool because of its immediate, hyper-accurate answers. By allowing homebuyers to run payment and closing cost scenarios, you create confident buyers ready to make offers. While others are cutting corners, consider how something like this could take your purchase business transactions to the next level. Get a sample QuickQual sent to your phone and sign up for their live demo on October 6th to learn more.
What Is appraisal bias and how can my financial institution avoid it? Appraisal bias, or when an appraiser considers illegal factors such as the race of the homeowner or the racial makeup of a neighborhood when determining the fair market value of a property, doesn’t sound like a problem that should occur in 2022, but it regularly does. Just 7.4 percent of homes in predominantly white census tracts fail to appraise at their contract price compared to 15.4 percent in Latino tracts and 12.5 percent in black tracts, a Freddie Mac study found. One contributing factor is the demographic makeup of the appraisers. The Appraisal Institute reports that 85 percent of appraisers are white and 78 percent are male, a cross section that does not reflect the makeup of the U.S. population. In this latest article, Ncontracts discusses appraisal bias and how to eliminate it. Check it out here!
“How much do you spend on your CRM? We’re guessing it’s way too much, especially with all those “features” you never use. Not to mention 90% of your LO’s aren’t logging in anyway! What if we told you Velma has a purpose built, cost effective, automated marketing solution that can save you thousands of dollars a year and countless hours of work? Timed and automated email campaigns, customizable open house flyers, efficient contact management, and much more in an intuitive easy to use solution! Velma cuts out the fluff and gives you exactly what you need at a great value. More details here.”
Upcoming Events and Webinars in October
This October, Enact (formerly Genworth Mortgage Insurance) will host multiple live courses to help grow your business and positively impact homebuyers. This month, focus on the loan application process by looking at how to structure loan applications, reviewing critical areas of purchase transactions, highlighting issues on the Sales Comparison section of the 1004, and more. Browse Enact’s course catalog of on-demand webinars, just have your company or individual NMLS ID handy when registering.
Sponsored by NYMBA, register for Tuesday, October 11th at 11:00 PM EST webinar: Guiding Your Originators to Business Growth in a Down Market. Join Ron Vaimberg for this powerful and impactful leadership growth program and understand how to keep your team motivated and inspired, key differences between leadership and management, why most originator business plans are set to fail and what to do about it, and the secrets to providing your team the path to thrive today. Webinar is 1-Hour with extra bonus Q&A session.
On Thursday, October 20th, California MBA DE&I Committee will be hosting a free webinar on appraisal bias. Discussion will include the history and perception of appraisal bias and applicable laws. Current industry trends and ideas to prevent and eliminate appraisal bias. Understand the lenders' role and ability to help prevent and protect against appraisal bias.
On October 21st, 9:00-10:00 a.m., Join MMLA West in a Zoom Webinar to hear from the man, the myth, the legend, motivational extraordinaire...Steve Richman! Steve's presentation is, 'A Cynic’s Guide To Motivation, Success and Happiness' and you do not want to miss it! Discussions this session includes identification of external and internal motivators, the four C’s to suCCCCess, the seduction of negativity and how to avoid it. Cost: $10 per MMLA member and $20 per MMLA non-member.
Of course there is the MBA’s Annual National Convention and Expo in Nashville 10/23-10/26.
Who doesn't love a good party? And what could be better than a party in Nashville at 6 p.m. on October 24 at Headquarters Beercade? A&D Mortgage is inviting its most valued brokers to an exclusive country music-themed party and award ceremony in Nashville. There'll be plenty of music, dancing, and good old-fashioned fun. So put on your best boots and jeans and come on down to Nashville for a party you'll never forget.
Capital Markets: Whipsaws Pressure Secondary Performance
Understanding the trends that are transforming the mortgage landscape can help lenders set a foundation of resilience for volatile market conditions. In an effort to demystify these trends, Forbes Finance published an article authored by MCT’s Phil Rasori entitled, "Three Trends Impacting the Secondary Mortgage Landscape". The article touches on how transparent markets, price transparency, and technology innovation have moved the industry forward. Read the article to learn more about these trends. In case you missed it, MCT hosted a webinar last Friday to review how quantitative tightening, interest rate hikes, and market deterioration are affecting mortgage lenders. The webinar also reviewed what to look for moving forward and a set of recommendations to improve performance now. View the webinar recording then join MCT’s newsletter to receive invitations for upcoming market webinars.
Regarding bond prices, can you spell “whipsaw?” The prices of MBS and U.S. Treasuries rallied on Wednesday, dropping rates. We began with an announcement from the Bank of England about a plan to purchase gilts to offset the impact of the recent plunge in British debt and the pound. The UK central bank will also postpone its plan to begin selling assets. In this country, Treasury Secretary Yellen will reportedly leave the administration after midterms. The scheduled economic news (Advance Wholesale Inventories and Advance Retail Inventories both rising in August, the advance goods trade deficit narrowing in August, and Pending Home Sales heading down 2 percent m/m in August) didn’t do much to move rates.
For those wondering where production is going, by the settlement close, Tradeweb volumes were still indicated a tad light vs. recent averages with the pace of UMBS30 trades on Trace also slowing with 4.5% seeing the highest volumes and 5% the most trades, while 5% was most active in GNIIs followed by 4.5%. In UMBS15s, 3.5% saw the highest volumes and 4% the most trades.
Today we’ve had the final look at Q2 GDP (unchanged at -.6 percent; old news) as well as weekly jobless claims (193k, down from 215k, not what the Fed wants to see; 217k 4-week moving average). The Core PCE Deflator is 1.5 percent. Of course there’s a spate of Fed speakers like Cleveland's Mester and San Francisco's Daly. Of course mortgage-backed securities lagged Wednesday with the price move, but the risk-free U.S. 10-year Treasury rallied nearly 2 points to close with a yield of 3.71 percent; this morning we’re back up to 3.82 percent and agency MBS prices are worse .250-.375.
LO and Branch Manager Jobs
The Homestar Mortgage Lending team has joined Mortgage Equity Partners (“MEP”) enhancing our lending capabilities throughout Rhode Island and Massachusetts. Homestar is an IMB founded by Steve Tetzner and his father Carl over 25 years ago. For decades they have provided to-notch service, competitive rates, and unique product options. With the arrival of Steve and his team, MEP can now provide all New England with outstanding service and extensive product offerings. As an IMB with direct lender operations along the East Coast and Washington State, MEP, founded by Sean Riley in 2009, is now positioned for continued growth and expansion when competitors are scaling back. MEP is actively recruiting loan officers and branch managers with an entrepreneurial spirit and a strong commitment to the IMB model as the best way for consumers to explore and obtain home financing.
“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? ‘Success can lead to complacency, and complacency is the greatest enemy of success.’ (Brian Tracy) Is your current company prepared for the next decade? Is your company having layoffs or making sweeping changes? Will you be able to retire at your current company? 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. If you’re tired of paying for layers of middle management, want to grow while others are shrinking, then we need to talk! It’s time to learn about the platform you’ve earned. Contact Chrisman LLC’s Anjelica Nixt to pass along your note to schedule a confidential conversation. YOU Deserve Better!”