Broker, Appraisal, eClosing Products; Coronavirus-Driven Operations Changes
Thank you to Susan M. for, “Your Grandparents were called to war. You’re being called to sit on a couch. You can do this!” I was speaking with an acquaintance yesterday, and I asked him if he was doing “self-quarantine.” He replied, “Of course! ‘Shelter in place,’ ‘self-quarantine,’ why wouldn’t I? Like yesterday, after I went for a run, to the bank & dry cleaner’s, and then Panda Express, and then my wife and I self-quarantined all afternoon.” “Corona-ing” has become a verb as Apple stores and AMC theaters have temporarily shut down. Marriott has placed thousands on unpaid leave as have other travel-related businesses. Gyms, oil-related businesses, restaurants, the list goes on of businesses going through hard times. There’s talk of the Fed buying corporate debt, as it is Treasuries and MBS. But American’s generosity is also coming out, and thanks to CM who passed along this Feeding America site. Lenders and vendors are taking extraordinary steps; a random sample is below.
Lender Services and Products
Ever wish you could find the right appraiser for the right job, right at your fingertips? Well, now you can! Connexions just launched a comprehensive vendor directory that gives lenders access to thousands of appraisers and lets them search by location, license number, certification and more. In addition, you can view performance stats like Turn Around Time (TAT) and Collateral Underwriter® (CU®) scores to determine the best appraisers to suit your needs. Using the Connexions Directory you can even invite appraisers to join your panel. Connexions is the software solution that helps lenders better navigate appraisal and risk management processes. Its cloud-based technology offers best-in-class automation, reporting, data analytics and integration to real estate valuations, and works with over 150 national AMCs and 13,000 independent appraisers. Request a demo or click here for more information!
Appraisal Management Companies are necessary for a mortgage company’s scalability, profitability, and compliance. But it can be frustrating to work with AMCs when your staff and team feel like your orders go into a black hole and you don’t know when to expect delivery. Deadlines pass and you can’t get anyone on the phone who can quickly resolve it! Meet Triserv, a 50-state AMC that obliterates that negative experience with client-specific, dedicated teams on both coasts that get to know their lender partners. Triserv’s high-touch, personalized order follow-up means that every appraisal’s milestones are managed to strict timelines and your staff always knows when each order is accepted, scheduled, inspected and delivered. Join Triserv’s customers like the lender who said, “They kill me with service. They make me feel like I’m their only customer. They find their success in making me successful!” Contact Triserv at learnmore@triservllc.com.
Are you looking for digital fulfillment solutions to help with high application volumes? Would you like to better understand the different loan closing options that now available? Stewart Title can provide insight into eClosing, Remote Online Notarization (RON) and hybrid options. In addition, consumer bankers and lenders can visit Stewart’s Home Equity Solutions to see how we make home equity origination easier. To learn more about these digital solutions, contact Rich Kuegler, National Director of Lender Sales, to set up a virtual meeting.
In light of the current market conditions, Stearns Lending is taking measures to ensure a smooth broker experience relative to lock durations. This action will support the client focus of capitalizing on market opportunity and most importantly providing customers with time. Stearns has issued a 60-day lock for a 30-day price. Effective with new locks on March 16th, all transactions will receive a 30-day price for a 60-day lock duration. Stearns is committed to being an important source of capital and fulfillment infrastructure for the wholesale community during this time while continuing to meet & exceed service expectations. Click HERE to partner with a strong lender.
LoanScorecard has more than doubled its non-QM client base and its customer list reads like the “who’s who of non-QM lenders.” The advanced technology is powering the eligibility portals used by leading wholesalers and providing operational efficiencies for their correspondent channel by delivering automated underwriting findings reports for non-QM and non-agency loans with the same ease and instant decisioning found in the agency AUS platforms. So whether you’re already in the space or looking to enter the non-QM market, learn how LoanScorecard can enhance broker and lender connectivity and confidence, and increase underwriting accuracy and efficiency. Contact LoanScorecard’s Managing Director Raj Parekh for more information.
Coronavirus Operations Changes
Tomorrow we will focus on appraisal policy changes. Today, operations!
Chase sent its correspondent clients an Operational Update.
Andrew Liput, President & CEO of Secure Insight, sent a note on potential recording delays and their impact on loan closings.
loanDepot Wholesale/Correspondent issued an Announcement regarding Final 1003 signature requirements, VA – LGY HUB, and Tennessee disaster information.
Sun West Mortgage sent out, “If you are refinancing a Sun West serviced loan, DO NOT PULL THE CREDIT REPORT! Save money. Stop notifications to our competition. Prevent solicitations of our customer from other lenders. Sun West will use the prior credit score to price the loan.”
Carrington Wholesale sent out a note about adapting to the changing circumstances involving the COVID-19 Coronavirus situation. “Carrington offices are open, and even with the increased loan volume, we want you to know that you can count on us. We are closely monitoring the evolving situation and have created a COVID-19 informational page to keep you updated.”
In response to disruption in industry services due to COVID 19, Flagstar Bank is providing automatic no cost lock extensions for 30 days from the existing expiration date on the following loans: existing broker/table funded and non-delegated correspondent locks, current locks with expiration date of 3/16/2020 or later, loan already submitted to underwriting but not yet closed. Customers do not need to take any action just continue to review pipeline to confirm updates.
In anticipation of delays of essential industry services due to coronavirus, Sun West will auto-extend all commitments for 15 days, without cost, from the current expiration date. These free extensions will be completed in the system by Monday, March 16, 2020. You may check the updated expiration date after this date by going into 'Extend / Cancel Lock' screen within www.SeeMyLoanStatus.com.
AmeriHome is providing an update on coronavirus-related actions taken as a company. Although AmeriHome has not experienced any impacts at this time, it is taking certain actions out of an abundance of caution: Activated an Incident Management Team meeting daily to review the situation. Conducted business continuity testing at all locations to ensure that employees can work remotely if needed. Providing training to all employees on working from home and remote login. Engaging all critical vendors to re-confirm that sound Business Continuity Plans are in place. Suspended all business travel. Required that all Company meetings offer an on-line web conferencing option.
theLender is temporarily suspending fundings of all NON QM Loans effective immediately. “All NON QM loans in process will be put on a temporary hold, no registering of new loans and no locking or processing of current NON QM loans. We are still accepting submissions and funding FHA/VA/USDA/Conventional loans.” theLender goes on to tell clients that, given the huge influx of QM loans, it is shifting its resources. “With U.S. interest rates at historic lows, unprecedented Government stimulus, and the re-entry of the Fed into the agency and Government lending markets we recognize that there is now not enough capacity in the agency markets to serve a hurting America... we have decided to put the full force of our platform behind the American people. To support the US economy and be a beacon of hope during challenging times, theLender will be prioritizing QM loans for as long as America is in need.”
New York pushed off its servicing rule changes for 90 days. (The industry was originally given 90 days to implement the changes.) Everyone viewed this originally as a short time frame for substantial changes, so any NY servicers are relieved.
The MBA of Greater Philadelphia informed its members that the Pennsylvania Department of Banking and Securities will not take exception to licensees and registrants working from alternate site locations, whether licensed or not, only while the Commonwealth of Pennsylvania is under a Proclamation of Disaster Emergency.” Licensed mortgage bankers, correspondent mortgage bankers and mortgage brokers (“Companies”) may allow or require some or all of their personnel to work from home on a temporary basis until fears about the spread of the coronavirus subside, without concern of being deemed in violation of Department regulations.
Webinars and Training
With the Fed rate being cut to 0%, the government buying mortgage back securities again, largest stock loss in history and the wild ride with rates and lender pricing, I will be doing a special podcast and live webinar with Josh Friend CEO of Insellerate on Thursday at 12pm PST to discuss the current market conditions, what to expect and how lender should be looking at this and preparing for the rest of the year. We will have a Q&A session to answer questions that our mortgage community has. (If you are unable to attend, please register as we will be sending it out for those who miss it.)
Maxwell is offering a three-day MAXOUT 2020 “Unconference”, which will take place March 23-25th. MAXOUT 2020 is 100% web-based and 100% FREE, and three lucky attendees will win a $500 Amazon Gift Card, $250 Amazon Gift Card, or $100 Amazon Gift Card.
To assist with capacity challenges and limited staff, XINNIX can train new operations and sales support talent FAST! Its solutions are on-demand and require as few as 10 days to complete, with no travel requirements.
Solve the Mystery of FHA Manual Underwriting with a Carrington Wholesale webinar today.
MBA NJ is offering a webinar on Thursday, March 19, from 11:30AM-12PM ET. Register for Compliant Lead Generation, Protecting Your Company.
Today MMLA members are invited to a FREE and timely webinar: Coronavirus - Employment and Regulatory Implications to Lenders. Provided by MMLA Corporate Partner, Offit Kurman.
LoanDepot Wholesale/Correspondent rolled out its new Broker mello® Portal. Webex Training opportunities will be available every Tuesday at 11am PT through May 26th.
On March 10, New York became the first state to require lenders to submit a coronavirus contingency plan to face the employment and regulatory challenges that may lie ahead. Lenders may need to update employment practices/policies and/or take steps to avoid incurring losses associated with pending loan applications. During this free webinar on Friday the 20th, attorney's Daniella Casseres and Ari Karen of the Offit Kurman law firm will discuss the legal and practical issues facing lenders associated with the coronavirus, as well as addressing avoiding lock extensions fees, LO Comp on interest rate reductions, Americans With Disabilities Act, FMLA, WARN Act, remote work station regulatory requirements, sick leave policies and state laws, and closed offices and employee wages.
Capital Markets
The 30-year 2.0% coupon began trading approximately 3 weeks ago and liquidity has been slow to gain traction. Fannie Mae opened a Major pool to help lenders build liquidity in the coupon and TBA markets have been made, but bid/offer spreads remain wide given the volatility.
U.S. Treasuries pulled back yesterday, including the 10-year yield closing the day +27 bps to 1.00 percent, a to a two-week high as risk sentiment improved. The Federal Reserve announced the reinstatement of a commercial paper facility, which will provide up to $1 trillion in 90-day unsecured credit. Additionally, the New York Fed announced a $500 billion repurchase operation. Finally, President Trump suggested using direct stimulus as part of a $850 billion fiscal package.
As far as economic releases went, The February Retail Sales report declined when it was expected to increase. Brace yourselves for the March report in a month, as soft spending activity before the coronavirus impact (and reaction) truly hit the U.S. was all that was captured in the February data. Industrial production for February met expectations but March output will look much worse given the economic shutdown measures employed to help curb the spread of the coronavirus.
Today’s economic calendar began with the usual mortgage applications from the MBA for the week ending March 13, which declined 8.4 percent from one week prior. After last week’s 55 percent increase in application activity, a decline in this report was expected considering the 10-year yield rose 25 bps during the reporting period and the average 30-year rate went back up to around/above 4 percent. Later this morning brings February Housing Starts and Building Permits (-1.5 percent, -5.5 percent, respectively). Later this morning, the Desk will conduct two FedTrade morning operations purchasing up to $6.2 billion followed by $1.1 billion in the second operation of the day. The previously scheduled Fed events have been canceled due to Sunday night’s announcements. We begin today with Agency MBS prices unchanged and the 10-year yielding 1.09 percent.
Jobs
A seasoned mortgage banking executive with a proven track record is seeking to join a Mortgage Bank that's looking to grow or start its mortgage banking platform, specifically in the Southeast. The candidate has over 20 years of experience in successful mortgage startups and has teams assembled in retail, wholesale, non-delegated correspondent, & consumer direct that are ready to make a move for the right opportunity. The candidate has vast experience in all aspects of mortgage banking; risk management; capital markets, sales management, servicing, multi-channel platforms & has orchestrated FNMA, FHLMC, & GNMA approvals, and is open to working with a bank or a well-capitalized independent mortgage banker. Please contact Anjelica Nixt to pass along a note of interest.
Are you being rewarded for your hard work and dedication? An Irvine, CA based national mortgage company offering a full spectrum of non-conventional loan products including FHA & VA and specializing in Non-QM, is aggressively hiring throughout the US as it celebrates 25 successful years in the industry. If you are a seasoned account executive looking to grow, there is a great opportunity for you! The company offers wide-open territories throughout the U.S., aggressive comp plans, highly competitive products and pricing, product training and support. A streamlined ops team, meeting 24-hr turn times on approvals, help get your loans closed on time. The company is looking to hire both inside and outside account executives for wholesale and correspondent channels. If you are ready to join a leader in Non-QM who knows how to close loans and get you paid, while providing you with leads and unlimited possibility for growth, then send your resume or contact Chrisman LLC's Anjelica Nixt for forwarding.
Looking to wrap up another record quarter, non-QM lender Angel Oak Mortgage Solutions added to its impressive roster of Account Executives in March. They proudly welcomed the following: Corrina Ardizzone in Phoenix, Randall Arroyo in Baton Rouge/New Orleans, Kimberly Barron in San Antonio, George McGrath covering North and South Carolina, and Joshua Tolle in Los Angeles. These AEs have gone through the first round of training and have been teaching brokers and correspondents how easy it is to work with Angel Oak. Angel Oak Mortgage Solutions is continuing to add Account Executives in many additional markets including Virginia Beach, Denver, and Las Vegas. To learn more, view the Careers Page or email National Business Development Manager, Andy Looker.