FHA, Buyer Literacy, LOS Products; Disaster News; Malik Wilkes Interview on Credit Union Trends

Language has oddities. For example, plurale tantums: items that are usually referred to in plural, often preceded by “pair of” even when there is only one item: pants, pliers, glasses, scissors, sunglasses, tweezers, etc.) Mortgage banking has its own language. Like “Agencies,” which we accept as being primarily Freddie Mac and Fannie Mae. For fans of the Agencies, I received this interesting anonymous opinion. “Rob, your Commentary noted that Patrice Ficklin, who led the CFPB's fair lending office since 2011, is leaving to rejoin Fannie Mae. The first thing Patrice should do is run a Fair Lending analysis on Fannie Mae's book of business. She will find that Fannie Mae would not pass a CFPB fair lending exam based on what I know about racial and social makeup of the last five years of production...as one ex-Fannie Mae employee said to me once ‘we have a segregated RMBS market.’” Far be it from me to address that; you should reach out directly to Freddie or Fannie if you have questions about their respective books of business. (Today’s podcast is found here and this week’s is sponsored by Optimal Blue. OB’s smart solutions automate critical functions like pricing, hedging, trading, and social media. More originators and investors rely upon Optimal Blue’s integrated solutions, data, and connections to support their unique business strategies, no matter how complex. Today’s features an interview with Space Coast Credit Union’s Malik Wilkes that gives a “finger on the pulse” of the credit union segment of our biz and current trends in the space.)

Lender and Broker Software, Products, and Services

Mortgage Investors Group (MIG) achieved 100% VOIE conversion improvement with Truv. MIG was facing rising costs of verification of income and employment and decided to make a change that led to 80% cost savings and 100% conversion improvement. Hear how they did it from JR Huber, EVP of Sales and Production. Watch Now!

Dark Matter Technologies proves, once again, that it gets what matters most for its clients (bringing down origination costs) and homebuyers (relieving friction in the loan process). Its technologists are using AI and machine learning to reinvent the mortgage process and address customer and consumer pain points at every level. In Dark Matter’s latest podcast, hosted by Product Evangelist Craig Rebmann, we hear from Vikas Rao, newly hired Deputy Chief Product Officer, on how Dark Matter connects with clients to understand their needs and incorporate their feedback into its iterative design process to bring down the cost of origination and improve the customer experience. If Rao’s name sounds familiar, you may recall him as the former vice president of product management at Ellie Mae, so he brings a deep understanding of enterprise LOS technology to the challenges ahead. Take a few minutes and listen to the episode today!

NEW EBOOK: How to win borrowers by pairing human-led support with leading technology. Nearly 70% of millennial and Gen Z buyers report having “some,” “very little,” or “no” knowledge about the mortgage process. The good news? Buyer illiteracy creates a massive opportunity for lenders prepared to step up. Created in partnership with ACUMA, Maxwell’s eBook will teach you how to provide expertise and resources to home buyers early and often, creating a lasting bond that translates into long-term business. Learn how to select technology that wows buyers, ways to balance human-led support with a borrower’s experience, and more. Click here to download Finding Balance: How to Pair Mortgage Technology with Human Support to Drive Homeownership in Your Community.

LoanStream wants to help you reach more clients with its new FHA MaxONE Home Assist Program which allows for 101.5% CLTV with 1.5% going back to closing costs, 101.5% CLTV, (96.5% First + 5% DPA), 5 % DPA available to assist with closing costs, FHA 30-YR Fixed and 620 Min FICO for AUS. Restrictions apply. Ask your AE about this new program. Learn More.

Lenders and Investors React to Disaster Updates

A recent STRATMOR blog is titled “Catastrophe and Climate Risk is Only Increasing.”

Active fires in the American West have burned over 2 million acres. One fire is still raging: The Park fire in Northern California has burned 353,194 acres, in some areas at a rate of 5,000 acres per hour. So far this year, there have been 27,427 fires affecting 3.7 million acres, which is fewer fires than last year but around four times the affected area. The Park fire is the result of arson: A man pushed a burning car 60 feet down an embankment into a gully, which sparked the blaze, easily one of the stupidest possible causes of a 550-square-mile conflagration.

On 7/24/2024, with Amendment No. 4 to DR-4796, FEMA declared federal disaster aid with individual assistance to 2 additional Iowa counties affected by severe storms, flooding, straight-line winds, and tornadoes from 6/16/2024, and continuing. View AmeriHome Mortgage 20240714-CL Disaster Announcement for inspection requirements.

On 7/27/2024, with DR-4796, FEMA identified an Incident Period End Date of July 23, 2024 for counties affected by Iowa Tornadoes from 6/16/2024, to 7/23/2024. View AmeriHome Mortgage 20240715-CL Disaster Announcement for inspection requirements.

AmeriHome Mortgage posted 20240712-CL Disaster Announcement regarding FEMA’s declaration on 7/23/2024, with DR-4804, announcing federal disaster aid with individual assistance to 15 Kentucky counties affected by severe storms, straight-line winds, tornadoes, landslides, and mudslides from 5/21/2024, to 5/27/2024.

On 7/23/2024, with DR-4803, FEMA declared federal disaster aid with individual assistance to 10 Missouri counties affected by severe storms, straight-line winds, tornadoes, and flooding from 5/19/2024, to 5/27/2024. For additional information, view AmeriHome Mortgage 20240711-CL Disaster Announcement.

PHH Mortgage issued a disaster notification pertaining to: New disaster declared - Kentucky DR-4804. New disaster declared - Missouri DR-4803. Additional Iowa counties – DR-4796. For all disaster declared counties, requirements, procedures, and conditions, go to PHH Mortgage library to view Disaster Alert announcement: Kentucky, Missouri, Iowa.

Capital Markets

Investors are closely watching upcoming central bank meetings in Tokyo, Washington, and London this week, with a little, not a lot, of uncertainty surrounding potential interest rate changes. The Bank of Japan may hike rates, while the U.S. Federal Reserve and Bank of England are expected to discuss rate cuts. Let’s check in with the actual economic news that drives the Federal Reserve’s decision making.

Last week’s Q2 advance Gross Domestic Product (GDP) report showed economic growth continues to defy forecasts, however there were signs of slowing momentum in the data. Consumer spending and business equipment, both specifically in the automotive sectors, were the main contributors to headline growth. Friday’s Personal Consumption Expenditure (PCE) numbers offered the last big data point before this week’s Fed meeting: headline PCE deflator rose only 0.1 percent in June as goods prices are in decline and service prices did not accelerate. At the core level, inflation rose at a 2.3 percent three-month annualized rate.

Real estate investment showed a decline in both residential spending as well as structure spending. Both new and existing home sales fell in June. Inventories are beginning to climb, however weak demand due to both high home prices and interest rates are weighing on the market. Weak demand has also led to an increase in new home supply, which was 9.3 months in June.

Despite the uptick in growth during the second quarter, there are signs of stress throughout the economy which might be enough for the Fed to begin to cut the fed funds rate in September in order to achieve their desired soft landing. The Fed is expected to hold interest rates steady at their July 31 monetary policy decision this week, but signal to markets to expect a rate cut at the next decision on September 18. Last week’s solid GDP report reassured the Fed that there is no urgency for an immediate rate cut.

This week is filled with market moving potential events including the latest central bank decisions from the FOMC and Bank of Japan on Wednesday and the BoE on Thursday. The Quarterly Refunding announcement will be released Wednesday morning, when Treasury is loath to increase coupons sizes to new record levels ahead of the election. There is also some first-tier data as well as month-end on Wednesday including more housing data, ADP employment, ISM manufacturing PMI and productivity / unit labor costs ahead of Friday’s July payrolls report.

The week gets off to a quiet start with the only data point today coming later this morning in the form of Dallas Fed Texas manufacturing for July. The U.S. Treasury then auctions some short duration bills. We begin the week with Agency MBS prices better by .125-.250 and the 10-year yielding 4.15 after closing last week at 4.20 percent. And the 2-year is down to 4.36 percent!

Employment

“Join ICE and embark on an exciting career in mortgage technology! We’re redefining the industry with innovative solutions that enhance every step of the end-to-end mortgage lifecycle. Our open network integrates groundbreaking technologies, connecting origination and servicing seamlessly. ICE’s dynamic and collaborative environment is perfect for those eager to advance our cutting-edge origination and servicing tools, evolve our product and pricing engine (PPE), enhance our consumer engagement suite and help deliver best-in-class closing solutions. Whether you're new to the field or a seasoned expert, we have opportunities to shape the future of mortgage technology and the industry itself. Explore our job openings and help us transform the industry at ICE!”

“Looking for a fresh start? Nations Lending is built to help producers grow. With the stability offered by our $10 billion servicing portfolio, Nations is able to innovate during challenging market conditions. Our cutting-edge marketing tools and strategies give our producers a distinct competitive edge. Experience a flat management structure that fosters inclusion, collaboration, and pricing autonomy. Be part of a team that values your perspective and is dedicated to your success. We want your voice to be heard. For those eager to learn more about our exciting opportunities and the unique advantages of joining our team, we encourage direct contact with our Divisional Managers. In the Western Division, please contact Mike Towery at 541-951-3559. If you’re in the Eastern Division contact Tim Dowling at 815-245-3052. Discover why many top performers chose Nations Lending!”

(As a reminder, anyone searching for employment can post their resume at no charge at www.lendernews.com, and potential employers can view all resumes for several months for only $75.)