DSCR, Non-QM, DPA, Automation, Payoff Products; Conventional Conforming News

Here in Southern California, there are plenty of swimming pools and tennis courts, but none of them belong to me. Under the header of, “Why didn’t I think of this?,” enter an address of where you live, or where you’re visiting. (I never enter my actual address.) Find a nearby pool, pickle ball, tennis, hoops, a party deck… to rent out! Or rent yours out. If I had thought of it, I could sit back and collect a slight commission from each transaction, 24/7. But the continued message here in Southern California at the L1 event is that you don’t need to be overly clever to make money, just disciplined. Mike McAuley gave a presentation yesterday, focused on companies that he and Joe Garrett saw make money last year. Included are a flat organizational structure, pick a CFO or Controller (one is all you need), aggressive cost cutting and renegotiations of contracts, relentless focus on operational efficiencies, offer niche or unusual products like manufactured housing, hard money loans, ARMs for local banks, and construction/perm loans. (Found here, this week’s podcast is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services to the mortgage industry for almost four decades. Hear an interview with ALTA’s Chris Morton on Attorney Opinion Letters and unregulated title insurance.)

Lender and Broker Services, Products, and Software

What clues does the current mortgage landscape hold for the future? Dig into the latest ICE Mortgage Monitor for critical intel on the data and metrics shaping 2024 for the real estate and housing finance industries. The complimentary monthly report and webinar feature expert analysis of key trends based on our vast housing data assets. If you're looking for valuable market insight you won't find anywhere else, you've found it. Don't wait… The market won't. Sign up now to receive the reports and monthly webinar invites.

Attending ICE Experience 2024? Make The Connection with FirstClose at Booth #612. Decades ago, FirstClose designed and developed the first and only home equity system. Today, it continues to be the only platform built solely for this purpose, which is why it is smarter, better, and faster than any other solution on the market. Learn how FirstClose’s fintech platform streamlines the origination and closing processes for HELs and HELOCs. And don’t forget to stop by the Dog Park and unwind with some pups from the Nevada SPCA! Schedule a meeting today.

Have you heard about the laws the TCPA and CTIA have implemented for the new A2P 10DLC requirements, to try and stop the junk texting? Hopefully, you have because the fines for noncompliance are serious. Are your salespeople texting their databases? Since ALL texting through mortgage CRMs falls under this federal law, it is imperative that you utilize texting legally and compliantly. What have your CRM providers done to help you navigate this challenging compliance landscape? Usherpa is pioneering the way on this front, making sure their texting platform was built to the letter of the law, ensuring that their clients are not exposed and are utilizing texting legally. Click here to learn more about the regulations and what you need to do to be compliant. Share this Infographic with your team.

Once a loan has been paid off, the clock starts running on how quickly the lien must be released. Miss that deadline and you’re not only jeopardizing your relationship with the borrower but risking a penalty from your regulator. PerfectDocs®, from NTC, is a user-friendly, web-based platform that enables servicers and investors to efficiently manage a payoff process or an assignment of mortgage for both MERS® and non-MERS loans using their own resources. Come by the PerfectDocs/NTC kiosk at the upcoming ICE Experience (March 18th- 20th) and learn how to use PerfectDocs to create, review, fully execute, record, and track all documents required for payoffs, default requirements and/or loan transfers. Also, learn how eRecord coverage is maximized with NTC’s partnership and integration with ICE’s Simplifile®. Click here to schedule a meeting.

Make your general ledger profitable and run your business more efficiently with Loan Vision and LV-PAM. Instead of “staying alive until ‘25”, with Loan Vision, a software built by the mortgage industry for the mortgage industry, you can “produce more in 24!” Customers on Loan Vision see improvements of 30 percent+ decrease in days to close the books, 20 percent+ reduction in accounting headcount, complete LOS to G/L automation, and improved reporting and visibility. Interested in learning how Loan Vision can help you run a more efficient and profitable company? Contact Carl Wooloff to schedule a call today.

The good folks at Down Payment Resource (DPR), which maintains a national database of 2,200+ down payment assistance (DPA) programs, have something very special to reveal at ICE Experience 2024. We think what they’ve cooked up will make life far easier for loan officers and underwriters using the Encompass® LOS platform to originate and underwrite mortgages that use DPA. If that’s the case, loan officers would be able to qualify more borrowers, especially LMI and minority buyers. But, like you, we’ll have to wait for ICE Experience (Mar. 18-20) to see what’s up. Stop by kiosk #22 at ICE Experience or schedule a meeting with the DPR team to get the full scoop.

Tabrasa and LendingPad just announced an exciting new partnership and launch special, with the release of a bi-directional data integration between the new Tabrasa One Platform and LendingPad LOS. In a market where lenders, loan officers and brokers are looking to accomplish more for less, the new Tabrasa One/LendingPad combination is fast, easy, powerful, and very affordable. The first 500 users also pay no onboarding fee or integration fees… forever. Learn more here. Want a demo/discussion? Contact Karen Amecangelo.

TPO, Broker, and Correspondent Product News

“At eRESI Mortgage, we've been busy making moves. We recently introduced over 40 guideline enhancements and improvements on LLPAs, which will help our lender partners become more competitive. Our fast turn-times and these improvements make eRESI an easy choice for those seeking a consistent correspondent Non-QM partner. Want to learn more? We are offering a webinar today where our Head of Credit, Amanda Roccia, will outline our latest guideline improvements. If you are interested, sign up by emailing Client Support or Peter Heintz. We are committed to your success and aim to provide you momentum with our enhanced Non-QM product offerings. For more information on how working with us can help grow your business, don't hesitate to contact our business development team at sales@eresimortgage.com or your eRESI representative today.”

“Elevate your brokerage's performance by choosing The Loan Store as your preferred lending partner. We prioritize the meticulous care of your Loan Officers' referral relationships and ensure optimal client satisfaction. Backed by tenured Account Executives and Underwriters, we bring a wealth of expertise to streamline the loan approval process. Our commitment to a hands-on approach guarantees timely closings, offering both efficiency and reliability. Join us today, Wednesday, the 6th, for an exclusive event where Broker Owners and esteemed Loan Officers will share invaluable insights. Gain a deeper understanding of best practices, business generation strategies, and effective client relationship management. Seize this opportunity to propel your brokerage forward. Register now to participate in a collaborative exchange of industry expertise with The Loan Store. Elevate your standards and embrace success with us!”

Long-term Rental or Vacation Rental? Visio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.8 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.

Conventional Conforming Program News

Freddie and Fannie’s changes set the tone for the industry in terms of policies, procedures, and rates. Let’s see who’s doing what.

Pennymac is aligning with Fannie Mae SEL-2023-11 announcing Restricted Stock Units (RSUs) and restricted stock income eligibility, effective with new applications dated on or after March 1, 2024. Information is posted in Pennymac Announcement 24-14.

Pennymac is aligning with the updates to the Uniform Property Dataset (UPD) as announced in Freddie Mac Bulletin 2023-19. Details can be found in Pennymac Announcement 24-15.

And Penny announced HomeReady/Home Possible.

Pennymac Announcement 24-18 declares a new down payment assistance (DPA) enhancement to the Fannie Mae HomeReady and Freddie Mac Home Possible products. The enhancement includes a $2,500 assistance amount for very low-income purchase (VLIP) borrowers that can be used for down payment and closing costs.

Freddie Mac recently confirmed the BorrowSmart program is being discontinued. Review Pennymac Announcement 24-17 to view dates and timelines.

Effective with new locks March 1st PHH will begin accepting loans with the $2,500 VLIP credit.

Citi Correspondent Lending is implementing increases to the loan level pricing adjuster for its HomeRun Program as well as specific CRA premiums, effective with Best Effort locks completed on/after Friday, March 1, 2024. View Citi Correspondent Lending HomeRun LLPA and CRA Premium Increases Bulletin for details.

AmeriHome Mortgage Announcement 20240209-CL summarizes previously published changes made during February, additional changes made with this announcement, and recent Agency and regulatory news.

Capital Markets

The investor reaction that drove up bond yields in reaction to recent Fed hawkishness has slowly abated, and a rally in the bond market yesterday helped the 10-year yield to hit its lowest level in about a month.

The ISM Services PMI decreased to 52.6 percent in February, remaining in expansionary territory, from 53.4 percent in January. February marked the 14th consecutive month of growth in the services sector as business activity and order growth improved in February. The S&P Global U.S. Services PMI rose to 52.3 in the final reading for February from 51.3 in the preliminary reading but was down from January's final reading of 52.5 as the Employment Index contracted for the second time in the past three months. Factory orders decreased 3.6 percent month-over-month in January, worse than expected, after decreasing a revised 0.3 percent in December. Business spending held steady in January, which takes some of the sting out of the otherwise weak report.

Today’s economic calendar kicked off with mortgage applications increasing 9.7 percent from one week earlier, according to data from the Mortgage Bankers Association. We’ve also received ADP employment for February (140k when it was expected to register 150k compared with 107k previously). Later today brings JOLTS job openings for February, wholesale inventories, day one of Fed Chair Powell’s semiannual testimony before Congress, remarks from San Francisco Fed President Daly and Minneapolis Fed President Kashkari, and the latest monetary policy decision from the Bank of Canada. We begin the day with Agency MBS prices unchanged from Tuesday evening, the 10-year yielding 4.14 after closing yesterday at 4.14 percent, and the 2-year at 4.54.

Employment and Transitions

“Freedom Mortgage is seeking the best Account Executives nationwide. We understand the best are not just product experts but, also relationship builders. We seek industry leaders who are vital to our success. Freedom Mortgage has been creating success for 30 years. Our people and processes are time-tested, giving us trusted stability—no matter market conditions. Our deep roots throughout the mortgage industry provide confidence for the future. Freedom Mortgage is 4EVER Wholesale. Our Account Executives average 15 years in industry and 10+ years at Freedom Mortgage. If you are the best and want to work with a financially stable company to build your future, contact Allen Middleman now.”

The Carrington Companies spread the word yesterday that Andrew Taffet, Chief Investment Officer, has assumed the additional role of Chief Executive Officer for The Carrington Companies, succeeding company Founder Bruce Rose who will assume the role of Chairman of the Executive Committee of The Carrington Companies. “This is not a dramatic handoff by any means, but rather a natural next step for our business,” said Bruce Rose, Founder of The Carrington Companies. “Our effectively self-hedged business strategy positions us for continued success, as we have demonstrated even during the most challenging market cycles.”