Automation, Collections, DPA, Insurance, Capital Markets Products; STRATMOR Survey; Events and Webinars

As noted in yesterday’s commentary, mergers and acquisitions of lenders are in the news across the nation. For curious lenders, it is good to have a general guide in how a buyer goes about valuing a lender. I happen to be in rainy Chicago now, but 1,700 miles away, there’s interesting news from the Phoenix area and the desert. How would you appraise a perfectly fine home that had no water? Rio Verde, aptly named Green River, a neighborhood outside of Scottsdale, Arizona, with some 2,000 homes, recently learned that there is not a stable water supply. The 1980s Groundwater Management Act required that in order for a development six lots or larger to proceed in Arizona, it had to secure a 100-year supply of water. The Rio Verde Foothills developers kept splitting parcels into four to five lots, putting them under the six-lot minimum that applied to the law and avoiding that requirement. About 30 percent of the residents now face a dramatic change in price as the city has cut them off from water since the Colorado River level has dropped. In better news, today’s podcast can be found here and this week’s is sponsored by SimpleNexus, an nCino company and homeownership platform unites the people, systems, and stages of the mortgage process into one seamless, end-to-end solution that spans engagement, origination, closing, and business intelligence. Today’s features and interview with Arrive Home’s Tai Christensen on the intersection of Black History Month and the mortgage industry.

Lender and Broker Software, Products, and Services

IS 2023 THE YEAR OF CONSUMER DATA ACCOUNTABILITY?? On 2/15 at 2 PM ET, tune into DS News as Sagent CLO Wendy Lee digs into this question (and more) with industry leaders Jan Duke (a360inc), Sara Lazarus (Stavvy), and Vanessa Arias (Altisource). With higher rates and recent fintech advancements making this year a potential golden age for customer experience, it begs the question: Who owns consumer data and what can consumers expect from a privacy/protection perspective moving forward? To find out, register today and hear what these experts have to say – you’re really not going to want to miss this, especially in today’s market.

MCT’s experts provide an unmatched experience for secondary marketing professionals. While the company offers the most comprehensive capital markets platform in the industry, deep dedication to delighting clients is its hallmark. From market-driven content (the latest piece is a market commentary special feature on LLPA changes, Wells Fargo’s exit of the correspondent space, and the U.S. Treasury possibly defaulting) to holistic teams structured for lenders and investors of any size and sophistication, MCT is proactive in its approach to client engagement, constantly striving to earn its position as “your trusted capital markets partner.” Clients are the priority, not shareholders. Contact MCT today or sign up for its newsletter to stay tuned-in to the latest capital markets content.

Want to add a new revenue stream while delivering value for borrowers? Matic, a home insurance platform built for the mortgage industry, provides personalized insurance offers to your borrowers from 40+ carriers you know, all within your existing systems. Borrowers save over $600 on average, and you’ll rest easy knowing the insurance process is fully automated. Interested in joining other top lenders who use Matic to automate insurance and generate revenue? BOOK A QUICK DEMO with our team of mortgage experts to learn more about partnerships.

Lenders: Are you looking for a simpler way to offer down payment assistance (DPA) to your borrowers? Good news! Click n’ Close now offers lender-paid compensation for its SmartBuy DPA program, available through its wholesale lending division delegated and non-delegated channels. In addition, Click n’ Close allows lenders to combine 2/1 temporary buydowns with DPA to maximize their borrowers’ ability to secure their dream home. Borrowers must qualify at the full note rate, and buydown funds may come from the seller, the lender, the borrower or any other interested party. Click n’ Close’s innovative cost-savings and unique suite of loan programs don’t stop there. Learn more about its programs by contacting Adam Rieke (wholesale) or Julas Hollie (correspondent).

As a mortgage servicer, your customers are your top priority. But are you doing everything possible to assist them when they face periods of financial hardship? Black Knight is proud to introduce a new solution in our suite of customer-focused technology. CollectionsSM streamlines the process of engaging homeowners who may be facing financial struggles. The solution features call management capabilities that aid your collections team in preventing and resolving delinquent payments. Additionally, integration with Black Knight’s digital servicing capabilities gives customers the option to browse and select from qualified assistance options at a time and pace that suits them. By making assistance options more accessible, Collections can help prevent foreclosure and late-stage default, keeping more of your customers in their homes. Read the announcement to learn more about how Collections supports a top-tier experience when your customers need it most.

The right intelligent automation solution can lower your costs to originate, a very real benefit when volumes are down. It can help your operation run more efficiently, more cost-effectively and more flexibly. The Mortgage Automation Suite, brought to you by Richey May Automate and Zoral Group, provides the solution and support you need to be more flexible in response to market cycles. Along with cost efficiencies and stability, it can also improve accuracy and reduce repurchases. Learn more about how the Mortgage Automation Suite can help your business during difficult cycles.

STRATMOR Comp Survey

In a market where retaining your best people is crucial to your company’s success, are you doing everything possible to retain this talent? In STRATMOR Group’s Spring 2022 Compensation Connection® Study, 21 percent of participating lenders provided a recruiting or retention bonus for processors, underwriters, and closers. As we navigate lower production levels and shrinking margins, it is important to come to the table with compensation offers comparable to your peers. Get the data you need to be competitive by participating in STRATMOR's 2023 Compensation Connection® Study. Participants receive a report comparing their responses to 2022 survey averages on key compensation metrics and characteristics for mortgage industry positions. Sign up today!

Events and Training

I know that I have been remiss in making updates, but a decent attempt at all the conferences this year can be found here.

Tomorrow at noon PT is the next edition of The Mortgage Collaborative’s Rundown with Rich Swerbinsky and me, and our Rundown sponsor is Matic with Tony Farnsworth co-hosting. We’ll will be covering current events in the mortgage market for 30 minutes starting at noon PT in “The Rundown with Rich and Rob”! Matic is a home insurance platform that helps lenders integrate insurance into the mortgage experience. “Created to simplify the insurance process, Matic has helped top lenders deliver value for borrowers, reduce inefficiencies due to closing delays, and add a low-lift revenue stream.”

Deephaven Presents Alternative Income Solutions for Self-Employed Borrowers February 10th at 2:00 PM. Register now to increase your value to real estate agents and their self-employed borrowers! A bank statement loan allows self-employed borrowers to document their income using bank statement deposits instead of tax returns. Click here to register today.

Register for National MI February 2023 webinar sessions. Training options include: Mastering LinkedIn for Mortgage Professionals #2, Brynne Tillman - Feb. 14 at 12pm PT, The Basics of Underwriting t Self-Employed Borrower, Marianne Collins - Feb. 15 at 10am PT Staying Top of Mind with Clients and Referral Partners, Julie Hansen - Feb. 16 at 11am PT.

Homelessness results from the intersection of multiple economic and social risk factors, and nowhere are those risk factors more acute than in California. Join UCLA Lewis & UCLA Ziman via Zoom, Thursday, February 16 11:30 a.m. - 1:00 p.m. PT, moderated by Shane Phillips, guest presenters discuss Why We Have Homelessness & What to Do About. Speakers will also discuss the policies that can prevent homelessness and the services and programs needed to humanely assist those experiencing homelessness, followed by a conversation and audience Q&A.

Fannie Mae’s Senior Vice President and Chief Economist Doug Duncan says housing will lead the economy through what he considers will be a mild recession in 2023. Join the Economic Forecast Series Webinar, Tuesday, February 14th @ 1 p.m. ET.

In Spokane, Washington, SAMP, on Wednesday evening, February 15th, will be hosting a dinner where I am honored to be speaking and answering questions. (For information, contact Staci Hardee.)

MBA's Servicing Solutions Conference & Expo, February 21-24 in Orlando, is where servicers have an opportunity to share information, connect with industry peers, and discover new direction to lead you on the roadmap. Don’t miss the General Session: Executive Perspectives - Leading through Change and Uncertainty to gain insight from top executives on how they led their organizations through the pandemic. Hear perspectives for a proactive approach to crisis preparedness, response to climate events, and how to build solutions resulting in greater resiliency.

Want to stand out at ICE Experience 23? Then check this out: Lender Toolkit is putting on its 2023 Lender Toolkit Supercar Experience! Brought to you by Lender Toolkit, Lenders One and Reggora, the exotic car racing event will take place on February 27 from 12:30-4:30 pm just before the start of ICE Experience 2023. This is ahead of ICE Experience 2023 Feb 27 – Mar 1.

This February, Enact will host multiple live courses to help grow your business and positively impact homebuyers. Diving deep into calculating assets and income, and work through examples to help you put your learnings into practice. Browse Enact’s course catalog of on-demand webinars, just have your company or individual NMLS ID handy when registering.

CRT Executive Summary is an efficient and innovative webinar series by Milliman to keep you up to date on current trends in the CRT market. The information provided covers all key aspects of the CRT market: collateral trends, CRT issuance trends, changes in deal structures, and current market pricing. This 3rd episode discusses performance trends in 2022, focusing on prepayment speeds and delinquency rates and their outlook.

Capital Markets

Mortgage pricing is a result of supply and demand. Verus Mortgage Capital, a correspondent investor specializing in residential non-QM and investor rental programs, was the top Non-QM issuer in 2022, maintaining its dominant position in the non-agency sector. “The company financed 10 deals totaling more than $5.2 billion, one of which was the first deal rated by Moody’s, Fitch, and S&P. Verus was the largest issuer of non-QM deals in 2022. Since its inception, Verus has financed approximately $19.2 billion across 42 rated securitization transactions, cementing its position as the largest non-QM issuer since 2017.”

Turning to the economy, there isn’t much going on in the secondary markets. Continued hawkish talk this week from Fed members after last week’s rate hike has pushed rates upward. The latest came yesterday, with New York Fed President Williams saying the Fed will need to maintain restrictive rates for a few years. The selloff saw the 10-year Treasury yield reach as high as 3.69 percent, the highest since early January. For those that enjoy tracking Treasury yields, Treasury sold $35 billion in 10-year notes to spectacular demand.

Weekly jobless claims kicked off today’s calendar: 196k, slightly over expectations but still low, 1.688 million in continuing claims. Later today brings a Treasury auction of $21 billion 30-year bonds and Freddie Mac’s Primary Mortgage Market Survey. We begin Thursday with Agency MBS prices and the risk-free U.S. 10-year T-note yielding 3.58 after closing yesterday at 3.65 percent with the yield curve inversion continuing since the 2-year is yielding 4.22.

Careers

“A national lender is looking for a CTO to join our Rockstar team. The position calls for a leader who is an A Player. Must know how to run both Dev Teams, IT infrastructure for 500+ remote and local employees and be an Encompass Rockstar. We are a scrappy all-star organization, so Prima Donna’s need not apply. Must be willing to get your hands dirty, work within a reasonable budget, and hold your team accountable. Missing deadlines should be your pet peeve. Remote OK. Interested parties please contact Chrisman LLC’s Anjelica Nixt to forward your note.”

“New Year means New Opportunities! Universal Lending Depot is excited to announce the launch of a Wholesale Mortgage Platform. We will be going LIVE on 3/1/2023 and our sales team will be led by industry leader Tyler Ermisch, Director of Sales. ULD is looking for Inside Wholesale Account Executives to join us in our Phoenix, Arizona location. We are also looking for seasoned Outside Account Executives across the U.S. to help promote all agency products as well as Non-QM programs. If you’re looking to join a company that will be a household name in the coming years, email us for a confidential conversation to learn more about this exciting opportunity.”

“Our employees have spoken, and Planet Home Lending did it again! For the second year in a row, Planet is named a Top USA Workplace. Are you an MLO or branch that wants to develop your career with a company that offers a positive work environment, dedicated operations professionals with industry beating turn times, and an exceptional growth path? Land at a company dedicated to your success. Every day, Planet Home Lending provides the tools, teams, and resources MLOs need to thrive. Check out our CEO Mike Dubeck’s video and learn how Planet went all-in to build a retail channel. Then call Planet’s VP Talent Acquisition Peter Briggs (435-709-6278) Connect with us today and start talking about your tomorrow. #LandatPlanet”

Indecomm welcomes Kevin Quinn to the team as its SVP, Servicing where he will focus on expanding the servicing business line and crafting new, tech-enables solutions. Email Kevin to connect.