Underwriting, Sales tools; Subservicer Product; Credit Union Primer; Legal News
The IRS ruled on the tax treatment of business meals? True.) Congressional Bank buying McClean Mortgage? (Rumor.) A loan officer at Umpqua stealing a processor's lunch from the lunchroom refrigerator? (Still researching.) Wall Street firms increasingly buying loans directly from lenders? (True - but remember 2006?) Fannie's Beth Milstein retiring next year? (True.) Stearns buying Citywide? (Ask Stearns.) Every week someone asks me about loanDepot's future. (Don't ask me, ask loanDepot!) Pressure being put on the CFPB/BCFP to change LO comp rules? (True.) Yup, lots going on.
Legal update
Remember the news earlier this year regarding Diamond Residential Mortgage? The Illinois AG issued a press release regarding the IDFPR's investigation into former DRMC employee, Chris Schaller. DRMC issued, "The events underlying the settlement were isolated to a single branch under the direction of a single former employee, Chris Schaller, who was promptly suspended and terminated immediately after we completed a thorough internal investigation. As the Attorney General's public statements make clear, we have cooperated with the regulators throughout their investigation. Moreover, DRMC no longer employs any individual identified as being connected to Schaller's misconduct.
"Collectively, the IDFPR's and our investigation reveal that Schaller conducted a number of outside activities that may have harmed persons unrelated to DRMC. To a lesser extent, Schaller and certain former Springfield employees working under him may have violated company procedures with respect to as many as nine (9) loans over an 8-year period. Although the total number of affected loans was small, even one loan written without consumers' best interests in mind is unacceptable to us. For this reason, and in light of Schaller's conduct outside his duties at DRMC, we worked closely with the Attorney General and the IDFPR to structure a $1.2 million remediation fund for affected Illinois consumers - including those who were not DRMC customers. Furthermore, we have taken steps to improve our compliance management systems and enhance policies and procedures across the company to ensure similar incidents do not happen going forward.
"Since inception, DRMC has closed over 35,000 loans valued at $8 billion without incident. We look forward to putting this situation in the rearview mirror as we keep our full focus on serving our valued customers."
Lender products and services
As origination volumes and margins continue to compress across the industry, to achieve profitability, or even remain in business, lenders will need to focus on one primary thing: Stop originating loans that you lose money on. With dropping originations, we are no longer in the unit volume business, we are in the revenue business. BBM Enterprise is a professional origination strategy and data driven marketing firm focused exclusively on helping direct to consumer lenders recalibrate their marketing spend towards equitable clients that will help your firm regain market share and profitability. As experts in origination marketing we focus on revenue and profitability, not units. Our average loan amount for active FHA/VA applications exceed $350K and a net revenue after marketing of nearly $13,000. If your marketing is not reaching these levels of performance than let our data experts show you how a targeted marketing strategy focused on revenue can change the trajectory of your company. To learn more about BBM Marketing Services and about becoming an approved origination partner contact Bill Senteno.
The Compliance Group (TCG), the premier nationwide compliance and quality control organization for the financial services industry, is pleased to announce. Flory brings a wealth of diversified industry experience to TCG as a results-driven sales and business development executive. Flory has established himself as a client focused leader capable of building long lasting partnerships and helping clients achieve effective organizational change through technology and operational excellence. TCG is a service-oriented company supported by unrivalled expertise. The TCG mission, since inception, is to provide quality service to clients, while offering cutting edge solutions that resolve the complexities of today's compliance and credit risk. Applying decades of compliance experience, expertise and common sense, TCG assists clients in easily navigating today's evolving regulatory channels.
A few weeks ago, Maxwell announced a groundbreaking new mortgage product called ApplyID API. With consent from the borrower, ApplyID gathers their information from Maxwell's network of data providers to pre-populate loan application fields, like personal information, employment history, income, real estate owned, financial assets, and more. The API empowers digitally-savvy lenders to create their own borrower experience leveraging data to increase application throughput and shorten time to underwriting. It's incredible to see the evolution in our industry. To those of us who still remember the paper loan application forms, who would have thought we'd get rid of the 300+ fields to fill out in a 1003? You can explore more information on Maxwell's ApplyID API here.
Total Expert will be hosting five events around the country called Accelerate 2019 including stops in San Francisco (Nov. 6), Chicago (Nov. 8), Dallas (Nov. 13), Charlotte (Dec. 4) and Boston (Dec. 6). At Total Expert's Accelerate 2019, you'll learn best practices to drive net new revenue with marketing, how to increase profits and productivity with customer journeys and strategies to "level up" on recruiting and retention of top talent. This event is designed for growth-minded marketing and sales managers and executive level leadership within the banking and mortgage industries. Space is limited, so request your invitation for this exclusive, one-day event and get prepared to Accelerate into 2019.
The Correspondent division of New Penn Financial is pleased to announce its newest team members. Michael Goldman (VP National Non-QM), Tom Winston (Regional Account Manager), Scott Smedley (Regional Account Manager) and David McPherson (Regional Account Manager). To learn how New Penn Financial can be your trusted Correspondent Lending partner, contact the Correspondent team. For more information about New Penn's expansive product portfolio, visit www.newpenncorrespondent.com.
I know I'm not the only one who thinks it's time for some disruption in the subservicing space. Lenders shouldn't feel stuck with a subservicer who doesn't treat their borrowers as they would. The two should blend seamlessly, and with technology, it's completely possible. The award-winning technology SIME, Servicing Intelligence Made Easy, sets the new standard in subservicing that lenders should start to demand. Watch this new video from TMS to learn the business value that a subservicer can bring to a lender's greatest asset - its customers.
The 2 for 1 discount for you to attend Ron Vaimberg's nmpU Purchase Bootcamp, taking place on Thursday and Friday, November 1st & 2nd in South Beach Miami, Florida ends tomorrow, Friday, October 26th. If you are being impacted by the changing market conditions, then attending the nmpU Purchase Bootcamp could be the solution you are looking for. Only 50 originators are permitted to attend this high-level program. You will leave the seminar equipped with the skills and strategies that will increase your production without any marketing cost. nmpU Purchase Bootcamp gives you a 100% Money Back Guarantee. For more information visit www.PurchaseBootcamp.com. Use code "CHRISMAN" and you will save an additional $200 off your attendance.
Here's a hi-tech breakthrough in lending to self-employed borrowers. Amidst rising interest rates and declining origination volume, lenders must cast a wider net for customers, a growing number of which are self-employed. To capitalize on this trend, lenders need a simpler, faster way to underwrite mortgages for Americans who are their own bosses. To this end, Freddie Mac has integrated fintech vendor LoanBeam's technology with Loan Product Advisor, our automated underwriting system, to introduce the first and only integrated self-employment income solution for the market. LoanBeam's software uses optical character recognition technology to extract and digest a borrower's tax returns and other financials, and then calculate a total income figure that aligns with Freddie Mac's guidelines. This integration offers lenders several advantages, including an automated review of the accuracy of qualifying income, eliminating the need to chase down unnecessary documents that support residual/excess income and certainty that the income calculation is eligible for representation and warranty relief. Learn more.
Credit union news
Are you one of the bank or independent lenders who doesn't pay much attention to credit unions? Do you think they are only competition for community banks? You might want to give CUs a second thought and read, "The Rise of the Credit Unions" in the just-released October issue of STRATMOR Group's Insights Report. This article grew from one of my STRATMOR blog posts of the same name and goes into detail on the advantages credit unions have in this current rising rate environment. When a consumer becomes a CU member, they become a relatively easy target for a mortgage sale, and CUs are attracting many new members with their low-cost banking solutions - including competitively priced equity loans and HELOCs - better-than-bank interest rates on deposit accounts and their high-touch "Members First" customer service. The article also outlines the advantages and disadvantages credit unions face, along with growth strategies for credit unions to consider. Click here for the October Insights Report.
Capital markets
AmeriHome is pleased to announce the official launch of its Non-Delegated Channel. "As a Non-Delegated Correspondent client, you will have access to AmeriHome's Agency, Government and Core Jumbo products without the underwriting risk or resources. In this new channel you can expect the same service levels and relationship management culture that has made AmeriHome the 4th largest Correspondent Lender in the country. Email CLsales@amerihome.com for more info, or reach out to your regional AmeriHome Non-Delegated Sales Representative."
The U.S. sank yesterday to 3.12% as weakness in the euro after eurozone economies reported disappointing flash Manufacturing and Services PMI readings for October drove investors towards the dollar and away from Treasuries. Other market headlines revolved around the Federal Reserve's Beige Book for September (economic activity "expanding at a modest to moderate pace"). Consumer spending increased at a modest pace while consumer prices and wage growth both increased at a modest to moderate pace. Internationally, Italy's Cabinet Undersecretary Giancarlo Giorgetti said that Italian banks may need to recapitalize based on the spread between Italy's and Germany's 10-yr yields.
Today's busy calendar kicked off with the latest policy decision from Norges Bank to raise rates in early 2019. The ECB statement was released (sticking to stimulus exit plans). The markets will listen to the ECB's view on the recent market volatility in addition to how the reinvestments from their massive EGB portfolio will be deployed. In the U.S. we've had Durable Goods (+.8%) and weekly jobless claims (215k, as expected). At 10am, we receive September Pending Home Sales. We also have some Fed speak from Richard Clarida. Rates are higher versus Wednesday's close, with agency MBS prices worse .125 and the 10-year yielding 3.14%.
Employment
Vendor Surf, a tech startup that is revolutionizing the sourcing of vendor partners, is looking to hire a sales leader to build out the network of vendors on its B2B vendor search engine platform. The ideal candidate will be a seasoned sales executive with a minimum of five years sales experience. Excellent leadership and communication skills a must. Contact Craig Leabig for more information. Didn't win a booth prize for dropping your business card in a fish bowl at last week's MBA conference? The folks at Vendor Surf are giving you another chance to win. They are giving away a Sonos Play:5 and gift cards ($250 Kendra Scott, $250 Visa & $100 Massage Envy.) Click here to register: info.vendorsurf.com/2018-Conference.
"When it comes time to pivot in your career, it's important to work with a company that offers full transparency from day one - while also allowing you to originate from day one. That's PrimeLending, and our best-in-class recruiters are there every step of the way to make your transition quick and seamless. Our team features powerhouse recruiters in every region, including Scott Lacy and Chris Morgan, who have worked in the mortgage industry for a combined 20 years. Scott, who works with Bret Head in Mid-America, and Chris, who partners with Dawn Robinson in the Southwest, are industry experts who put your needs first, deliver timely results and set you up for success. PrimeLending empowers you to discover your best. If you're ready to close more loans and experience stability like never before, contact Scott or Chris today!"