Servicing, Ops, MLO Jobs; Purchase, Appraisal, PMI, Retention Tools; Investors React to Agency Changes
A while back I made an appointment at a new doctor and under, “What do you wish to be called?” I wrote, “The Chosen One.” Wednesday, I heard the receptionist say, “Please let the doctor know that The Chosen One is here.” They’ve been using it this whole time. Every generation, to one degree or another, believe that they are The Chosen Ones, but people in their 20s and 30s are finding out that it’s unusually tough out there to buy a home. And as Fannie and Freddie shift their footprint (more news below), savvy MLOs know that down payment programs may help homebuyers get into a house sooner than they think. In the article Is down payment assistance for everyone? Down Payment Resource discusses a few basic requirements homebuyers should keep in mind when considering down payment help. Today’s audio version of the commentary is available here featuring Part Two an interview with Nathan Lee, Head of Richey May Advisory, on trends he has seen across lenders in recent years. This week’s podcast is sponsored by Richey May.
Lender Services and Products
Some of the best inventions are the ones geared at making our lives easier. For example, one of the first shopping carts was introduced on this day in 1937 by Sylvan Goldman, owner of Humpty Dumpty grocery store chain, as a way to make it easier for customers to move their groceries. Similarly, MQMR has introduced a Servicing Risk Assessment to make it easier for lenders to know if their servicing risk management strategy is covering all of the bases across audit, risk, and compliance, and to what extent. The Servicing Risk Assessment analyzes and grades the effectiveness of a lenders’ servicing program, identifies specific areas of concern within the servicing program, ensures the servicing program is effectively mitigating lenders’ risk and more. Take MQMR’s Servicing Risk Assessment and start making your life easier today.
Seeing is believing, as they say in the glass business. When you look at lender rates every day, you’ll see one brand is consistently at the top: Interfirst. Interfirst’s loan programs are accessible through many widely used mortgage product and pricing engines, including Loan Sifter and Mortech, just login to your account and see for yourself. Full details are available to mortgage professionals through our own high-rated Interfirst Client Portal. if you are a broker looking for a competitive price advantage or a new lender option, apply here. For more information, go to the Interfirst Wholesale webpage or contact Mike Tague (541.280.5674) or Casey Nunn (704.680.2362).
YIKES! Another outside-the-box loan scenario? Relax - help is here! Innovative non-QM solutions for investors, self-employed and asset rich borrowers are available to turn your unique scenario into a success. Learn more during the Scenario Station Webinar by Sprout Mortgage. Submit your unique loan scenario and plan to attend the Scenario Station Webinar on Wednesday, June 16th at 9:00 am PT. Register Now! We are committed to providing product education and marketing assistance to help you grow. Our Loan Scenario Desk, complimentary Bank Statement Analyses, Condo Review service, iQualifi (pricing and product tool) and complimentary Marketing tools via The Sprout Marketing Store mean you can serve more borrowers in less time and with less effort. Loan programs for borrowers who are self-employed, property investors and asset rich. Loan amounts up to $10 million. Register today to learn more.
A highly successful Realtor in Seattle recently had this to say about getting called on by Loan Officers he didn’t know: “I get so many cold calls from LOs, so to save time I tell them, ‘Refer me one buyer and I’ll refer you two loans.’ No one has ever taken me up on the offer.” Referring a buyer to a Realtor is the holy grail in our industry. Check out this new app that can help you do just that. UsherpAlert push notifications are based on data intelligence and machine learning algorithms that comb Loan Officer’s databases for opportunities and serve up past customers most likely to be in the buy zone for a new mortgage. In fact, UsherpAlert purchase notifications have a 297% higher likelihood to close. Download this e-guide on what top producers do to increase purchase business: “3 Habits of Top Producing Loan Officers.”
Every loan officer wants an edge on the competition. Some rely on relationships while others rely on technology. We are a team of loan officers who believe in both. PMI Rate Pro provides quotes from all 6 national PMI providers instantly, allowing you to focus on what matters. With PMI Rate Pro, homebuyers save an average of $40 on monthly premiums and over $3,600 on single premiums and you save valuable time while always ensuring the best price for your buyers. With the average loan officer shopping only 2-to-3 MI providers, PMI Rate Pro provides a significant competitive advantage at an affordable price. We integrate with your current tech solutions via a state-of-the-art API or you can simply login to our easy-to-use platform. Visit www.pmiratepro.com today for a free 2 week trial and get back to doing what you do best: winning deals.
NAN (Nationwide Appraisal Network) introduces "Next-Day Pay," an innovative new appraiser incentive that rewards ON-TIME work and offers a substantial competitive advantage for their lender and broker partners. NAN now wires appraisers their full fee within 24 hours for appraisals completed on time. “The biggest challenge the industry is facing right now is the lack of appraisers in busy markets, leading to delayed appraisals and delayed closings. By evolving our pay model to truly incentivize on-time delivery, we can do our part to help solve this challenge that so many mortgage professionals are facing. We now pay our appraisers 30x faster for on-time work. I'd say that's a win for all parties involved.” says Steve Sussman, Chief Business Development Officer. With a 17-year history of treating appraisers respectfully, acknowledging their achievements and paying them generously, NAN continues to innovate and raise the bar in the valuation sector.
Enjoy 2 business day priority purchase underwriting and a (.250) LLPA incentive for all Conventional, VA, and FHA purchases with the Freedom Mortgage Wholesale Division’s Big Spring Purchase Tee Off! Offer a hole in one experience with every new Conventional, VA, and FHA purchase! Plus, offer more buying power for your Jumbo VA borrowers with no maximum loan amount and no down payment for eligible* VA borrowers. To learn more, check out our rate sheet or email AskFreedom@FreedomWholesale.com to have an AE contact you. *Subject to credit approval, requires full entitlement; for purchases and cash-out refinances only and not applicable for loan amounts<= $144,000. For IRRRLs, VA will continue to guaranty 25% of the loan amount without regard to the Veteran’s available entitlement and/or county loan limits.
Agency and Investor News
Our biz continues to wait for the Supreme Court’s opinion, as the FHFA Director will serve at the pleasure of the president, or not, as soon as the Supreme Court releases its Collins decision. At that point, experts disagree on how quickly the White House would act. On the one hand, the FHFA is a consequential post, which leads us to believe that movement would be relatively quick. On the other hand, as Isaac Boltansky reminds us, we are still waiting for nominees to fill other consequential financial posts at the OCC, FHA, Ginnie Mae, and Fed.
Freddie Mac Multifamily announced it has extended the COVID-19 Forbearance Program to September 30, 2021.Previously set to terminate June 30, 2021, the extension provides additional time for multifamily operators experiencing hardship as a result of the pandemic to request a new forbearance agreement, which includes renter protections such as a moratorium on evictions for non-payment of rent. Borrowers continuing to experience hardship may also request additional relief at the end of the initial forbearance period. Borrowers who enter into a new forbearance arrangement with Freddie Mac must notify renters of all tenant protections per Freddie Mac requirements. Read the Freddie Mac News Release for details.
Fannie Mae continues its support to renters in multifamily units and Fannie Mae-financed multifamily property owners experiencing financial difficulties due to COVID-19. Its multifamily COVID-19 Forbearance Program termination date has been pushed out until September 30, 2021. For any Fannie Mae-financed multifamily properties with a new or modified forbearance plan as the result of a financial hardship due to COVID-19, the property owner must inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods. Visit the Fannie Mae Newsroom to view the Press Release.
Fannie Mae Selling Guide update, SEL-2021-05, adds a new topic on notarization standards with requirements for remote ink-signed notarization, clarifies timing expectations for electronic data submission in Loan Delivery, and clarifies that loans with technical or typographical corrections are not considered modified loans.
Freddie Mac updated requirements in connection to the Amended Senior Preferred Stock Purchase Agreement (PSPA) and the Revised General Qualified Mortgage (QM) Rule.
Single-Family Seller/Servicer Guide Bulletin 2021-19 specifies which mortgages Freddie Mac will continue to purchase and under what conditions those mortgages may be purchased.
Based on close monitoring of industry readiness, Fannie Mae and Freddie Mac have postponed implementation of the Uniform Closing Dataset (UCD) critical edits transition from warning to critical/fatal. Phase 1 edits were scheduled to transition on May 31 but will now transition on July 31. Read the announcement.
Previously introduced, Fannie Mae may only acquire loans that meet the revised General Qualified Mortgage (revised QM) loan definition or meet other requirements for loans not covered by the QM rule. A new Lender Letter (LL-2021-11) provides additional details about underwriting and loan eligibility, Desktop Underwriter® (DU®) implementation, and a change to high LTV refinance product.
Read this issue of the Fannie Mae Quality Insider to discover best practices to apply during your prefunding and post-closing QC reviews and during origination. Get tips on how to leverage the new Collateral Risk Assessment Analysis (Form 1033) as part of your comprehensive appraisal QC process.
In Fannie Mae Servicing News, Property 360 for REOgrams eliminates manual submissions for REOgram notifications for Real Estate Owned (REO) properties acquired through foreclosure or Mortgage Release (deed-in-lieu of foreclosure). All servicers can onboard now. REOgrams will not be processed through the Asset Management Network after September. There is currently no change for the reverse mortgage REOgrams process. Read the Release Notes for details.
Wells Fargo Funding announced that neither the Fannie Mae RefiNow nor Freddie Mac Refi Possible product offerings will be eligible for purchase by Wells Fargo Funding.
Citi Correspondent Lending implemented a change to the Best-Efforts loan level pricing adjuster for second homes, effective with new locks completed on/after Tuesday, June 1, 2021.
The adjuster amount changed from (1.75) to (2.75) and applies to all LTVs.
Agency loans delivered to Chase Correspondent Lending for purchase with applications taken prior to 7/1/2021 that do not comply with the Revised General Qualified Mortgage Rule must be delivered to Chase in fundable condition by 7/30/2021 and purchased by Chase no later than 8/10/2021. Agency loans with applications dated on or after 3/1/2021 and prior to 7/1/2021, that comply with the Revised General Qualified Mortgage Rule may be delivered to Chase. Agency loans with applications dated on and after 7/1/2021 must comply with the Revised General Qualified Mortgage Rule.
FAMC issued a reminder that Fannie Mae will implement an update to DU that will include the new RefiNow program during the weekend of June 5. FAMC is diligently preparing to complete the system requirements needed to offer the RefiNow program. A follow-up communication will be provided once the implementation has been completed and able to accept locks under the RefiNow program. Lenders must confirm “Standard LCOR” has been manually input in DU to ensure loans delivered to FAMC for purchase have been assessed as regular refinance transactions.
Capital Markets
Strong economic data yesterday sparked concerns that the Fed may withdraw its daily bond market purchase support sooner than expected. May's increase in private payrolls was the largest since June 2020, according to ADP data, while initial jobless claims fell below 400k for the first time during the pandemic. The ISM Non-Manufacturing Index for May hit a record-high 64 percent, marking the twelfth straight month of growth for the services sector and is a record high for this series. Its price component hit its highest level since July 2008.
This week’s Freddie Mac Primary Mortgage Market Survey saw the 30-year fixed rate tick back up 4 bps to 2.99 percent, with the 15-year fixed rate unchanged at 2.27 percent and the 5/1 hybrid ARM rate up 5 bps to 2.64 percent. Separately, Black Knight reported that the number of active forbearance plans declined by 71k (-3.2 percent) since last Tuesday. Plan starts saw their lowest weekly total since the onset of the pandemic, with noticeable declines among both new forbearance starts as well as restarts. As of June 1, 2.12 million (4.0 percent of) homeowners remain in COVID-19 related forbearance plans.
This first Friday of the month means payrolls Friday with the employment report just released: Nonfarm Payrolls for May were +559k, the Unemployment Rate came in at 5.8 percent, and Hourly Earnings were +.5 percent. We’ve also seen some remarks from Fed Chair Powell and later this morning brings April Factory Orders. The NY Fed Desk will target up to $5.2 billion 30-year 2 percent and 2.5 percent composed of $2.0 billion GNIIs followed by $3.2 billion UMBS. After the employment data we begin Friday with Agency MBS prices a touch better and the 10-year yielding 1.61 after closing yesterday at 1.62 percent.
Employment and Transitions
“Your path to unlimited potential, resources, and success begins at Sierra Pacific Mortgage! Sierra Pacific is leading the change in the mortgage industry by developing award winning top producers and having fun along the way. We offer a supportive culture and collaborative approach to your business and we’re ready to help you take your career to the next level. We welcome confidential conversations with anyone wanting to learn more about our successful Sales Team. To view our open positions visit joinsierrapacific.com and email careers@spmc.com if you’re interested in joining us.”
A successful, growing mortgage bank is seeking a candidate to fill an opening for a Mortgage Servicing Manager. The Mortgage Servicing Manager is accountable for the day-to-day operations of the Mortgage Servicing department and has the responsibility of loan servicing of both internal portfolio loans as well as investor loans, post-loan administration functions such as modification, subordinations and partial releases, compliance management, payment processing, escrow, insurance, and reporting. Additionally, the Mortgage Servicing Manager will be responsible for successful management of the mortgage servicing team and providing leadership, guidance, training, and support while maintaining compliance with all company, investor, federal and state requirements, policies, and procedures. This is a remote position with some travel required. If you are interested, please send your resume to Anjelica Nixt and specify this opportunity.
Purchasing a new home can be a daunting process for anyone, but especially when it comes to VA loans. That’s why Caliber Home Loans has created an online resource center to help educate consumers about this unique process. The experience includes important information, such as a list of all the benefits available to qualified military borrowers, FAQs to help answer common questions about the VA loan process, a blog to help military spouses stay informed about all things PCS, and an easy-to-follow video series that addresses topics like Debunking VA Loan Myths and Milspouse Tips for Talking to Lenders. Caliber is committed to meeting the specific mortgage needs of America’s heroes. If you share in that commitment and would like to join the team at Caliber, email Jonathan Stanley for Operations positions or James Hecht for Sales positions.
Sun West Mortgage Company [NMLS ID 3277], a leading full-service national mortgage lender, is excited to announce Jeff Janke [NMLS ID 1845891] as Branch Manager in its West Coast operations. Janke has joined Sun West in Irvine, California as Branch Manager. Jeff’s zest for life and outgoing personality allows his client and team relationships to flourish. Before Sun West, Janke built his engaging personality with once-in-a-lifetime experiences, such as creating his own MTV commercial, directing a feature film, and even receiving his black belt in taekwondo. “If you change the way you look at things, the things you look at change,” Janke expresses. Leif Boyd, Managing Director at Sun West Mortgage emphasizes, “Jeff embodies the passionate and entrepreneurial spirit that this team not only loves but also allows to spread their wings. We look forward to big things from Jeff and his team!” Click here for Sun West licensing information and disclosures.