Hedging, POS, DPA, Verification, Fee Cure Paper; Conference Chatter; Training and Events

“My granddad was responsible for 25 downed German planes in WW II. To this day, he is still known as the worst mechanic the Luftwaffe ever had.” On the anniversary of D-Day, let’s hope the entire world is not involved in a war again, although humans have had a recurring theme of conflict. Scaling things down significantly, but keeping with the “recurring theme” theme… There have been recurring themes in the various conferences and private events, most recently the MBA New Jersey which my son Robbie attended and this one I am attending in San Diego for Bay Equity, that lenders have their eye on. Lowering the cost of doing business, including the closing costs seen by borrowers (and mentioned by the White House and regulators to lower housing costs). Lenders try to use every advantage they have to gain and retain borrowers, and improve operational efficiencies, and how doing that will help originators. Last but not least, the constant decision to retain or release servicing, and the long-term impact of that on business. It is, indeed, a tough environment, entirely different than four years ago when everyone was hiring, hiring, and hiring. (Today’s podcast is found here, and this week’s are sponsored by Visio Lending. Visio is the nation's premier lender for buy and hold investors with over 2.5 billion closed loans for single-family rental properties, including vacation rentals. Hear an interview with PCV Murcor’s Marc Tatarcuk on how Appraisal Management Companies find and assign appraisers, how AI is influencing the appraisal space, and what the appraisal landscape currently looks like.)

Software, Products, and Services for Lenders and Brokers

Did you know that more than one in three loans results in fee cures averaging $1,225 per impacted loan? A recent study by ICE analyzed nearly 90,000 loans over a six-month period to determine the frequency of Loan Estimate and Closing Disclosure fee cures and quantify their cost. ICE found that by mitigating fee cures, lenders in the study could save more than $1.2 million for every 1,000 loans produced. The study’s results are detailed in ICE’s complimentary white paper, The hidden cost of fee cures, where you can view the data, learn how fee cures are eroding lender profit margins and find out what you can do to help protect your profitability. Download The hidden cost of fee cures here.

A 30-minute meeting with Planet Home Lending’s Correspondent sales team this month could be the catalyst for a year-round boost in your business. Explore our continually refined product lineup spanning vanilla to niche products all tailored to your unique needs: Best effort, mandatory AOT, delegated, or non-delegated. Join us at the MBA of Florida’s Eastern Secondary Conference & Convention, June 11-13, by reaching out to Regional Sales Manager Jim Shaler (813-784-6237). To schedule a meeting at the Indiana MBA State Convention, June 17-18, contact Regional Sales Manager John Theil (330-717-4543).

Founded in 1998, NFM Lending could be considered a member of Gen Z, the generation of digital natives, so it’s no wonder technology has been central to the award-winning IMB’s strategy since day one. One of NFM’s most recent tech wins has been placing Argyle at the top of its VOIE waterfall, a decision that has allowed it to optimize the borrower experience, shave at least a day off application processing times, and save 80 percent on income and employment verifications. As Chief Strategy Officer Cindy Keith explains, “They give us one-stop access to all of the income data and documents we need. Only after Argyle do we move on to other options, where prices might increase.” Read the full case study here.

While the Fed didn’t deliver the interest rate relief many were anticipating, there’s still an opportunity for you to save your borrower’s money. Due to its tremendous success, Click n’ Close has expanded its DPA with Shared Appreciation product nationwide (excluding NY), enabling you to offer your borrowers a below-market interest rate AND help with their down payment. What’s more, Click n’ Close has increased the availability of its Title Attorney Opinion Letters (AOLs) through its title subsidiary Click n’ Close Title to include AL, AZ, FL, GA, NC, OH, PA, SC, TN, TX and UT. When combined, the Shared Appreciation w/ DPA and Title AOL can help make homebuying more affordable than ever. To learn more, contact a member of the wholesale lending team (Soliman Martinez, Adam Rieke, or Kerry Webb) today.

Most people are surprised when they find out that the high profile fintech mortgage companies use the same LOS as them. The difference? The fintechs bolt on a POS that differentiates the borrower experience instead of using the free one that came with the LOS. Level up your POS game with LiteSpeed.

Webinars, Training, and Events

Today join AFR Wholesale’s Rob Pieklo and industry expert Rob Chrisman for an insightful discussion on pivotal topics shaping the mortgage landscape at 2 pm EDT during the webinar ‘Betting on the Mortgage Industry: Why Private Money is Investing in Home Financing’. Register now! This exclusive webinar will cover critical areas such as rising interest rates and their impact, inflation concerns, potential economic challenges, and the future of Mortgage Servicing Rights (MSR). Don’t miss this opportunity to gain valuable insights and stay at the forefront of industry developments. Secure your spot by registering here. For more information, contact us at sales@afrwholesale.com, call 1-800-375-6071, or visit www.afrwholesale.com. Ensure you're part of this essential industry discussion!

A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future.

Today will be another episode of The Big Picture at 3PM ET, Rich Swerbinsky is interviewing Vice Capital’s Chris Bennett about a wide variety of capital markets issues.

Friday the 7th will see an episode of The Mortgage Collaborative’s Rundown with Melissa Langdale and me covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET, in “The Rundown”. We have California MBA CEO Susan Milazzo on the show!

Want to learn more about what Freddie Mac is up to? Resolve®: Submit and Manage Deed-in-Lieu of Foreclosure Requests Webinar (2 hrs.). Learn how to submit and manage deed-in-lieu (DIL) requests via a single or multiple loan file submission, including decisioning on Guide-eligible transactions and those requiring exception review. And there’s the Loan Product Advisor® Recent Updates Webinar (1.5 hrs.). Learn more about the enhancements we’ve made to Loan Product Advisor® (LPASM ) to help you reduce costs, improve efficiency and deliver a better borrower experience.

Monday, June 10th is MMBA’s annual Beacon Hill Day. Members will be placed into groups for appointments with State Representatives and Senators. This is the same day that the REALTORS are on Beacon Hill too. The MMBA will be providing you with talking points and handouts for your appointments as well as coordinating appointments with other MMBA members in your area.

Next week in Sarasota, Florida, 6/11-6/13, we have the MBAF’s 2024 Convention & Conference! Yes, Check out the Agenda for the June 11-13 Mortgage Bankers Association of Florida’s 20th Eastern Secondary Conference and 70th Annual Convention.

If insights and brilliance of top-level financial and mortgage lending experts are what you need to succeed in today’s market, look no further than the upcoming ACUMA FOCALpoint Workshop scheduled for June 11-12 in Denver, CO. In addition to top names like CFPB executive Mark McArdle and Steve Rick, chief economist for TruStage, our 16-speaker lineup includes top credit union executives like Elevations CU, SVP of Lending Elizabeth Million, Westerra CU, VP of Mortgage, Michelle Burke, and many others, will help cultivate your increased mortgage lending wisdom.

On Jun 11th, 12-1:00PM, join NAMB & Berman Media to learn how to create more content in less time so you can get more leads from Instagram. The webinar will cover how to create killer content so you can get more views without needing a videographer, effortlessly prospect using Instagram without spending hours on the platform and get more engagement than ever before without needing to post every day.

Free, in-person, FHA credit underwriting training is in Miami, FL: June 12, 9:00 AM – 4:00 PM (Eastern).

Looking for more in-depth commentary on weekly mortgage news? Register here for "Mortgage Matters: The Weekly Roundup” presented by Lenders One. Next Wednesday at 2:00 PM EST/11:00 AM PT Robbie Chrisman and Justin Demola will interview Max Slysarchurk of A&D Mortgage.

Simplify the process of reverse mortgages with the Plaza Home Mortgage live session on Thursday, June 13, 11:00 AM PT / 2:00 PM ET featuring Mark Reeve, Vice President of Plaza's Reverse Mortgage Division.

National MI June webinar sessions include Income Case Studies with Marianne Collins - June 11th at 1pm ET, Cracking the Code for Consistent Client Growth ​​​​​with Nancy Bleeke Noël - June 12th at 1pm ET, and Coaching for Development ​​​​​with Andrew Oxley - June 13th at 2pm ET.

Join CoAMP and Advantage Credit on June 13th, 5-7 PM at Sheraton DTC for a fun filled Happy Hour that includes networking and an update on current credit issues/practices by Dena Falbo w/Advantage Credit. Admission is free, there will be food and beverages for purchase.

The FHA is conducting a free, two-day, on-site Lender Training in Santa Ana, CA on June 12th, 8:00 AM through June 13th, 5:00 PM. Featured topics include underwriting the FHA appraisal and endorsement protocols; Loan Review System (LRS); and much more.

Capital Markets

In any market scenario, it is crucial for lenders to analyze best execution options to maximize profitability when selling loans in the secondary market. Determining what execution is most efficient and profitable will have a big impact on the bottom line. In MCT’s whitepaper, Optimizing your Best Execution Loan Sale Analysis, they provide insight into determining your company strategy, delivery options, retain release decisions, and more. Download the whitepaper or join MCT’s newsletter to stay up to date on the latest educational content.

The summer is kicking off, and you know who is making waves? CapitalW Collective! In the weeks following the MBA Secondary in New York, CapitalW’s impact is growing. It’s building relationships and being endorsed by major industry players. Follow the non-profit on LinkedIn and become a sponsor!

Rally, rally, the pitcher’s name is Sally! That’s what we used to chant in Little League, and it’s what bond traders could be chanting this week as rates once again dropped yesterday. The ADP Employment Change report showed an estimated 152k jobs were added to private-sector payrolls in May, the slowest pace of the year versus expectations of a 175k reading after a downwardly revised 188k print in April. The report conveys softening job gains and pay growth, which is something that should be relatively pleasing to the Fed's eye.

That comes on the heels of Job Openings printing at the lowest level since 2021 on Tuesday, signaling that the Fed’s tightening cycle is finally starting to chip away at labor market resiliency. Investors are once again ramping up bets that the Fed will cut rates before year-end.

The ISM Non-Manufacturing Index, the most important data point this week outside of May payrolls tomorrow, increased well into expansionary territory in May from contractionary territory in April. The May reading is the best since August 2023. The ISM’s business activity index also had its largest monthly advance since March 2021 and signals a pickup in activity in the nation's largest sector with prices paid remaining elevated, albeit less so than the prior month. Opposite of what was mentioned in the previous paragraph, it is a report that doesn't command a rate cut soon.

Job cuts from Challenger, Gray & Christmas for May kicked off today’s calendar, along with weekly jobless claims (229k), the April trade deficit, and Q1 final productivity and unit labor costs… none of which moved rates. Looking toward later today, the U.S. Treasury will announce the details of the mini-Refunding (consisting of $58 billion 3-year notes, $39 billion reopened 10-year notes, and $22 billion reopened 30-year bonds) and Freddie Mac’s Primary Mortgage Market Survey will be released. After the Bank of Canada yesterday lowered its policy rate by 25 basis points to 4.75 percent, as expected, this morning brought the latest ECB decision, a 25-basis point cut to 4.25 percent. We begin the day with Agency MBS prices are unchanged from Wednesday’s close as is the 10-year yielding 4.29 percent. The 2-year is at 4.73.

Employment

A 49-state licensed mortgage lender with a large servicing portfolio and strong capital base is seeking to expand its retail footprint by partnering with large production teams or regional mortgage banks interested in a capital partnership. The goal of the relationship is to leverage back-office mortgage functions (e.g., secondary, technology, compliance, operations, and licensing) to provide you with long-term production growth opportunities. By partnering with us, you can utilize our mature systems to add loan officers and scale your operations across the U.S. If you are a strong retail loan origination team feeling constrained by layers of management, or an independent mortgage lender looking for new options for your team, we offer a compelling alternative to standard “branch” offerings. Confidential and serious inquiries can email Anjelica Nixt.

Asurity Technologies, LLC announced that mortgage technology vet Brad Vasto has joined the company as SVP - Sales. Leveraging his 30+ years of experience in meeting the needs of the mortgage, banking, and financial services industries, Brad will be responsible for sales activities relating to Asurity’s industry leading Software-as-a-Service (SaaS) mortgage loan compliance products, including RegCheck® and Propel™. Congratulations!