Training, AE jobs; Pricing, Risk Mgt., Dashboard Tools; Servicing Package for Sale; Investors Adapt to Agency Shifts

Whenever I ask my cat Myrtle about her opinion of the Consumer Finance Protection Bureau, she remains mum. But the CFPB has been in the press lately. Servicers are girding their loins and making sure their portfolio clients are being handled per rules and regulations. Yesterday “the Bureau” issued a Debt Collection Interim Final Rule (IFR) related to the COVID-19 emergency. The IFR requires debt collectors to provide written notice to certain consumers of their rights under the COVID-19 pandemic CDC temporary eviction moratorium and prohibits certain misrepresentations about consumers’ eligibility for protection under such moratorium. (While we’re on servicing, on Thursday at 2PM ET MIAC is hosting “Understanding MSRs in Today’s Volatile Market.”) The audio version of today’s commentary is available here and is sponsored by Churchill Mortgage, and has an interview with me on thoughts about the CFPB.)

Broker and Lender Products and Services

Is this a gauntlet? “The Machine that’s coming for the Robots” Expert System Technology is the solution to underwriting woes, Candor says.

What does it take to run a mortgage company well? According to AmCap Chief Analytics Officer Matt Stokes, the answer is actionable data that paints a picture of business performance. Ever since implementing LBA Ware’s LimeGear BI platform, Matt kicks off each morning by reading the latest Rob Chrisman newsletter, then browsing LimeGear’s At a Glance dashboards, which give him a high-level, visual overview of key performance indicators from warehouse lines to personnel performance. Says Matt, “I get meaningful insights in ten minutes that would normally take several days of sifting through Excel spreadsheets.” That’s because LimeGear’s turnkey dashboards are designed by mortgage people, for mortgage people. Schedule a demo today to see how LimeGear can help you measure performance, zero in on profitability and maximize productivity.

HomeBinder, a leading home management platform that provides peace of mind and maximizes home value, announces a new $1.6 million round of funding from Fintech and InsurTech venture capital firm SixThirty, and from leading Fintech industry partner Matt Hansen. SixThirty is a venture capital firm that invests in enterprise technology companies across FinTech, InsurTech, Digital Health & Cybersecurity, and provides founders with mentorship and connections to leading incumbents through its Go-To-Market Program. Matt Hansen is Founder & CEO of SimpleNexus. SimpleNexus has become one of the fastest-growing software companies in the nation, receiving recognition on the Inc. 5000 list and Deloitte’s Technology Fast 500 list. HomeBinder is a home management platform offered solely through business partners serving residential homeowners, enabling them to deliver long term value to clients, remain top of mind, and generate referrals. Learn more about HomeBinder.

The most asked question isn’t about chickens and eggs, it’s “How many licks does it take to get to the center of a Tootsie Pop?” The world may never know. The most asked question in the mortgage industry is “How should lenders develop a comprehensive servicing risk management strategy?” Subsequent QC knows. MQMR’s sister firm knows how important it is for lenders to have a risk mitigation program that ensures compliance and delivers exceptional customer service. When it comes to servicing, Subsequent QC makes sure lenders get all the answers to their burning questions. Download this free white paper: “Better Together: How to Create a Comprehensive Servicing Risk Management Strategy” to get the answers on creating a comprehensive servicing risk management strategy.

As we move into the digital future of lending, momentum is everything. Discover how your organization can maximize innovation and progress at Forward, taking place from May 18-20. With expert keynote speakers and Blend insights fueling this digital summit, you’ll find everything you need to build your own momentum toward success. Save your spot today.

ReadyPrice, powered by SitusAMC, is a platform that enables lenders to scale sensibly, generating lender adoption through the symbiotic relationship that exists between brokers and lenders in the wholesale channel. The ReadyPrice platform presents lender products to a large community of brokers, facilitating loan discoverability, matching, quality, and delivery - all in an easy-to-use platform. As CEO, Rick Soukoulis explains in this quick introduction video, ReadyPrice removes administrative burden from your account executives, provides capital market

Lenders and Investors React to Agency Changes

On April 8 Fannie Mae issued Lender Letter 2021-09, and Freddie Mac issued Bulletin 2021-13 regarding the eligibility for purchase of the new General Qualified Mortgage effective March 1, 2021 and limiting the eligibility for purchase of other Qualified Mortgages as set out in said Lender Letter and Bulletin. The Black, Mann & Graham LLP full memorandum is available here.

loaDepot’s Weekly Announcement covers Fannie Mae DU Validation Updates and the Removal of Restrictive Overlays applicable to FHA Matrices, VA Matrices, and Conventional Matrices.

PennyMac Correspondent Group posted updates to Conventional LLPAs for all Best Effort commitments taken on or after Monday, April 12, in Announcement 21-26. Currently, all PennyMac Non-Delegated conventional loans qualifying with self-employed borrower income have LTV/CLTV limitations that differ from the standard conventional LTV/CLTVs. Effective immediately, PennyMac has retired the LTV/CLTV overlay for self-employed borrowers.

PennyMac Correspondent issued Announcement 21-28 about requirements for a changed AUS from DU to LPA. And Penny is expanding loan terms on Fannie Mae HomeReady and Freddie Mac Home Possible. Effective with loan deliveries on or after 04/26/2021, HomeReady and Home Possible loans will be accepted with all loan terms up to 30 years. For details, view Announcement 21-29.

PennyMac Correspondent posted Announcement 21-30 regarding alignment with Freddie Mac’s updated requirements of the evaluation of 30-day (formerly referred to as “open-end”) accounts.

Caliber announced a 25.0 basis point purchase money pricing special for Conventional loans.  The purchase money special is effective with Best Effort Commitment Confirmations issued on or after April 8, 2021. The special will be applicable to all Best Effort Commitment Confirmations for the following products: Conventional Conforming Fixed and ARM, Conventional Conforming Fixed and ARM High Balance Programs, Home Ready and Home Possible Standard and High Balance, HomeStyle Fixed and ARM and HomeStyle Fixed and ARM High Balance. A new Loan Level Price Adjustment, for applicable Conventional Products, has been added to the rate sheet. Log into the Correspondent Lending Portal for details.

Do you have about three minutes? If so, check out this video from the recent National Mortgage News Advances in Tech Demo Day, to learn three ways that Loan Product Advisor® asset and income modeler (AIM) can help. David Fulford, Single-Family, vice president, lender strategy and integration, shares three use cases that show how automating your borrower capacity assessment can help you.

Caliber Home Loans updated  its Investment Property and Second Home LLPAs. Effective for Best Effort Commitment Confirmations issued on or after April 13, 2021.

In Wholesale Bulletin 21W-024, MWF covers changes to Conventional LLPAs as the secondary market continues to experience challenges in the delivery of 2nd Home and Non-Owner Occupied transactions. MWF Wholesale Bulletin 21W-026 addresses Desktop Underwriter (DU) Validation Service Release Notes. And Mountain West Financial posted Wholesale Bulletin 21W-025 regarding the depletion of funding allocation for the Golden State Finance Authority (GSFA) Mortgage Credit Certificate (MCC) program.

Capital Markets

MIAC is pleased to offer a $280 million of GNMA EBO loans. These loans are being sold by non-bank originator client with a southern US concentration. There are 1702 loans, 82% FHA, 12% VA, with the balance being USDA loans. 132 of the loans are in some form of bankruptcy. The current WAC is 4.05%.  This transaction bids on Friday 4/23. View MIAC’s current whole loan sales opportunities and subscribe to their notifications here. Please contact your MIAC representative at 212-233-1250 or Steve Harris for more information.

As the calendar moves into the second quarter US economic data points to an economy that is gaining momentum as the long-awaited consumer boom has arrived. Total retail sales were 17 percent higher in March than they were prior to the pandemic and every subcategory of store benefited from consumers’ desire to spend. Given that a portion of this spending was due in part to the generous stimulus most households received, the question of how sustainable this elevated spending is top of mind. Many economists point to much improved household balance sheets buoyed by heightened savings over the last year as potential fuel for successful service reopenings this summer. This assumes businesses, which are currently struggling to hire, can find workers to fill the expected demand. Surging demand also brings inflation concerns.

Consumer prices were up 2.6 percent in March compared to one year ago, and while last year’s low baseline will lead to elevated annual comparisons, recent inflation readings pointing to increasing prices. Despite those concerns, the Fed continues to say it will wait until it feels higher prices are sustainable before making any major changes to monetary policy which could leave the near-term direction of rates up to market sentiment.

Looking at the bond market yesterday, and therefore interest rates, and therefore mortgage rates, it was a quiet start to the week as investors await more earnings and economic data in the coming days. The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 16 bps to 4.50 percent of servicers’ portfolio volume in the prior week as of April 11. According to MBA’s estimate, we’re down to 2.3 million homeowners in forbearance plans. The avalanche that some “experts” predicted has yet to happen.

Like yesterday, today is incredibly light on market moving data. We have seen Philadelphia Fed non-manufacturing for April (-5.1 to 21.5, whatever that means). Later this morning brings Redbook same store sales for the week ending April 12. On the demand side, the NY Fed Desk will conduct three operations, one in each class, for a total of $6.6 billion. We begin the day with Agency MBS prices unchanged from Monday, which were unchanged from Friday, and the 10-year also unchanged, yielding 1.60 percent.

Jobs

MiMutual Mortgage would like to congratulate one of its long-time Account Executives, Julie Sakadales, for her promotion to Regional Sales Manager. Julie is heading the Wholesale Sales Team on the East Coast and MiMutual is excited to expand its footprint in Southern Florida. Julie is seeking Wholesale Account Executives to join the team; prior sales experience is preferred. A deep-rooted, privately held mortgage lender in 38 states, MiMutual Mortgage is celebrating 29 years in business and is looking to continue the strategic growth of its Wholesale Sales Division across the U.S. and exceptional candidates are sought to help with this growth. All interested candidates are encouraged to contact HR Generalist, Karley Warwick or (248) 286-9490 for more information.

“Sierra Pacific Wholesale is strategically growing across the country and is hiring for multiple Account Executive positions in wide open territories. Sierra Pacific has a legacy of more than 30 years of wholesale success due to our dependability, collaboration and the ongoing trust placed in us by our Partners. If you are someone who wants to be part of an organization where you have a voice, are supported by operations heroes and difference makers, and want to join a sales team with an average AE tenure of 8 years, then Sierra Pacific Wholesale is the place for you. We welcome confidential conversations with anyone interested in being part of a successful wholesale team where you feel heard and can make an impact! If you are interested, please email TPOsales@spmc.com or text 704.577.2777. Find out more about Sierra Pacific Wholesale at SPMC.com.”

“Calling wholesale Account Executives. Are you dealing with lower agency volumes and reduced commissions? What’s your next career move? ClearEdge Lending has accelerated its growth in 2021. In the past 30 days, we’ve hired Account Executives in Georgia, Oregon, North Carolina, and Florida. Our newest Account Executive in Georgia submitted 13 Non-QM loans in his first month alone. How, you might ask? As an end-investor since 2015, ClearEdge has an extensive and innovative portfolio of Non-QM products as well as a diverse team of experts equipped with custom in-house technology. We provide training, resources, and product education to help you succeed quickly. ClearEdge Lending is also increasing its support services with new hires in Underwriting & Loan Operations. We make in-house credit and pricing exceptions in minutes so you can close loans quickly with direct access to underwriters and your own Account Manager. For more information contact Matt Shaw or John Burns.”

XINNIX is seeking candidates for key positions to support the next era of XINNIX Programs and Services. The company is looking for an SVP of Learning and Development to join the executive team. The ideal candidate has experience in leading a training team and a proven track record of successfully shifting an organizational culture to one of learning and innovation. The Product Manager will work closely with the executive team to deliver the next generation of high-quality performance training programs and services to the marketplace. Finally, to meet current and projected demands of customers engaged in The XINNIX System™, there are openings for two Performance Specialists to train and coach both new and experienced mortgage professionals in sales and operations. If you or someone you know would be interested in joining the nation's premier performance and leadership development company, contact XINNIX SVP of Business Strategy, Steve Stall.

Prabhakar Bhogaraju (“PB”) has joined FinLocker as the company’s EVP, Head of Strategy & Product Development. He comes over after 10 years at Fannie and will be reporting to Henry Cason, CEO, who also came over from Fannie (after 27 years). I see a trend here…