Business Wanted, MLO Jobs; U/W, Appraisal, Non-QM, Jumbo Products; Tech Survey; Investor's GSE Changes

Lenders always have a lot going on. Like “significant competitive pressure and volatility in the capital markets,” as evidenced by Home Point’s $73 million loss for 2Q 2021, announced yesterday. Remaining compliant can be a chore as well. The current STRATMOR blog is, “Ignorance of the Law is No Excuse.” Have you visited the “Interactive Bureau Regulations” on the CFPB’s site? “A resource that makes certain Bureau regulations easier to read, navigate, and understand.” COVID 19 servicing. Buckley’s Winnow is turning some compliance and legal heads. “A powerful, comprehensive, and dynamic database of state and federal regulatory requirements.” Sure the CFPB is more focused on COVID servicing, but there are other topics. Mitch Kider was on a panel recently on MSAs. Remember those? Yes, making sure you’re doing the right thing is back in vogue… It never left the “to do” list of good lenders. JVs are not “against the law.” (Lots of fighting over purchase business. Leases? Promoting your business on someone else’s website?) Fair Lending (know who your “peers” are… banks are not typically peers of IMBs!), the False Claims Act… yes, those are hot topics out there. Has a builder and a lender structured a JV to form a mortgage brokerage, and all the loans are brokered to the lender? The list goes on! (Today’s podcast is available here after 8:30AM ET and this week’s is sponsored by Richey May; today’s features Part Two of an interview with Olivia Nicholson, leader of the Data Analytics practice at Richey May, speaking on data automation and where the mortgage industry is, and can improve.)

Lender and Broker Products and Services

Lenders looking to close more loans should look no further than TMS CAREspondent. This year, TMS will be attending the CMBA Western Secondary Market Conference in Dana Point, from August 24–26. The annual conference brings together leaders from every realm of the secondary mortgage market, including industry leaders like TMS. The TMS CAREspondent team will be taking meetings with lenders throughout the conference to talk about growing your business with their agency style, direct credit box, and full suite of renovation products. Don’t miss this chance to tap into the brainpower that made TMS CAREspondent a Top 15 Buyer. To set up a meeting, reach out to carespondent@themoneysource.com.

Northpointe Bank Correspondent Lending’s Medical Professionals and Streamline Jumbo Fixed & ARM program provide tailored solutions to maximize your profitability and grow your business. The Medical Professionals loan program, designed for borrowers with student loans or limited savings, helps medical professionals* qualify to purchase a home with loan amounts up to $850,00, loan-to-value ratios up to 100%, and no mortgage insurance options. Eligible borrowers can be currently practicing or begin employment within 90 days of loan closing. Northpointe’s Streamline Jumbo Fixed & ARM loan program offers loan amounts up to $3,000,000, loan-to-value ratios up to 90% with no mortgage insurance requirement for loans up to $2,500,000, and cash-out refinances with LTVs up to 80% for loans up to $1,000,000. Plus, the program offers 25 basis point (BPS) pay up on all purchase transactions. For more information, email us at correspondentsales@northpointe.com, or view our program details. *For more details on Medical Professionals eligibility click here.

Which states have the slowest appraisal turn-times? Do you know? Triserv recently analyzed average turn-times for their appraisals to see which states won the booby prize. It may seem odd for an AMC to publicize their worst turn-times (click here to check them out). But we’re not alone - the entire industry is struggling with the same issues. And, by the way, a 30-day close is completely unrealistic these days. Brought to you by Triserv, a 50-state AMC that has client-specific, dedicated teams on both coasts offering high-touch, personalized service. To find out more, contact Triserv Appraisal Management Solutions at learnmore@triservllc.com.

The Olympics may be over, but they're still going for Gold (Jumbo) at Stearns Wholesale! Stearns’ Gold Jumbo product has increased its max loan amount to $2.5 million! As they continue to produce the best jumbo rates in the nation, Stearns is offering a plethora of virtual resources with trainings throughout the month on each of their jumbo products! If you would like to register for one of these Stearns Jumbo Product Trainings, click HERE. If you’d like to partner with Stearns or learn more, click here to be contacted.

With non-QM volume passing pre-COVID levels, Angel Oak Mortgage Solutions is looking to continue its extraordinary growth in the correspondent channel. If you’re attending the CMBA’s Western Secondary, there couldn’t be a better time to speak with the leader in non-Agency about becoming a correspondent lender. Simply email Jamie Bellingham to schedule a meeting. Also, make sure to see Tom Hutchens speak on the non-QM panel on Thursday August 26th at 10:45am.

Connexions, the all-in-one appraisal management software company, is thrilled to be expanding its product offerings and providing yet another solution towards enhancing and delivering a seamless appraisal process. QuickQuote is the latest feature from Connexions, dedicated to innovating and transforming the appraisal experience. Its revolutionary features establish one central system for efficiency, clarity, and transparency. QuickQuote allows lenders and AMCs to save time and costs by being able to expedite requests, set up fees, due dates and manage all communications with multiple appraisers in one place. To find out how Connexions and QuickQuote can guarantee an improved appraisal management process, contact Connexions at Sales@GetCNX.com or schedule a demo today.

"Candor is a no brainer decision!" Candor's Loan Engineering System makes decisions, not recommendations. Those decisions are backed by a defect policy. This leaves analysis & calculations in the dust. Our Loan Engineering System manages exceptions rather than pushing them to the underwriter. Our Loan Engineering System, LES, is in a category of its own. Literally. p.s. Big news coming soon. Sign up here to hear it first.

Tech

Lenders, how far along the road to digital innovation are you? According to STRATMOR Group’s 2020 Technology Insight® Study, 14 percent of lenders reported live full eClose versus 43% with hybrid eClose capabilities. Whether you are well on your way with your digital plans or are thinking through what to do in 2022, you’ll want the data that is only available from the Digital Innovations® Survey of STRATMOR Group’s 2021 Technology Insight® Study. The survey takes less than ten minutes to complete and best of all, participating lenders receive the survey report for FREE. Don’t miss your change to have data on the key digital capabilities and the benefits and barriers to the digital technology available in the mortgage market today… Take the Digital Innovations Survey now!

Investors React to GSE Changes

PennyMac posted August Product Highlight regarding FNMA RefiNow and FHLMC Refi Possible.

Starting with new locks as of Friday, August 6, 2021, Flagstar Bank removed the price improvement for Agency ≥ 25Yr Fixed Investment Property FICO ≥ 680 and Agency < 25Yr Fixed Investment Property FICO ≥ 680.

Flagstar Bank Conventional Underwriting Guidelines updates, effective immediately, include information related to Chinese Drywall, Fannie Mae Mortgaged premises occupied by borrower’s parents, garnishments, and payments on real property co-owned.

Fannie Mae requires loans secured by second homes and investment properties must be underwritten in DU® on multiple financed properties for the same borrower. AmeriHome reminds Sellers that manually underwritten loans are not eligible for purchase.

Mortgage Loans delivered utilizing alternative appraisal processes, including hybrids and/or desktops are not eligible for sale to AmeriHome. Sellers must ensure that appraisal reports are completed using the standard Fannie Mae and Freddie Mac Appraisal Report Forms (e.g., Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465) and Exhibits, as applicable.

loanDepot’s Announcement explains Conventional & FHA Appraisal Fee Changes in NY & TX.

Effective for all Best Effort commitments taken on or after July 30, 2021, PennyMac’s BE rate sheet reflects updated Conventional LLPAs values on the Conventional ‘Risk Based Priced Adjustments – FRM > 20 Year Term’ Grid. View the PennyMac Announcement for more information.

In Announcement 21-59, PennyMac stated its alignment with all the Fannie Mae updates announced in SEL 2021-06 and Freddie Mac Bulletin 2021-25.

Wells Fargo Funding is updating Uniform Closing Dataset (UCD) policy to require Fannie Mae UCD Findings Report reflecting “Successful” for all Loans underwritten using Desktop Underwriter (DU). Freddie Mac Loan Closing Advisor (LCA) Feedback Certificate reflecting “Satisfied” for all Loans underwritten using Loan Purchase Advisor (LPA).

On July 27, 2021, AmeriHome reminded Sellers the Fannie Mae RefiNow™ and the Freddie Mac Refi Possible℠ products are not eligible for purchase by AmeriHome.

Lenders should note that all loans submitted to Desktop Underwriter® (DU®) will first be assessed under the RefiNow™ eligibility parameters (existing Fannie Mae-owned loan, qualifying income at or below 80% of AMI for the property’s location, maximum DTI of 65%, etc.). If the Seller wants DU to underwrite the loan as a standard limited cash-out

refinance, the Seller must enter “Standard LCOR” in the Product Description field and resubmit the loan casefile to DU.

In Bulletin 21W-054, Mountain West Financial provides information on changes to Freddie Mac and Fannie Mae Open End (Non-HELOC) 30-Day Accounts.

FAMC is providing more flexibility with Conventional products such as including Cryptocurrency as Eligible Assets and updated requirements on Asset Documentation for DU Refinance Transactions. The documentation provided must cover the most recent full one-month period of account activity (30 days, or if account information is reported on a quarterly basis, the most recent quarter). NOTE: DU will be updated in a future release to only require a bank statement covering a one-month period on refinance transactions. Lenders may apply the updated guidance effective immediately.

Flagstar Bank updated its conventional underwriting guidelines, changes are effective immediately, view Memo 21092.

Caliber Home Loans announced the release of Fannie Mae’s RefiNow, effective with Commitment Confirmations issued on or after July 14, 2021.

Caliber Home Loans Correspondent updated its Conventional Conforming and Conventional High Balance Level Price Adjustments (LLPAs), effective with Best Effort and Single Loan Mandatory Commitment Confirmations issued on or after July 7, 2021. Login on the website for details.

Capital Markets

Last week’s economic data continued the narrative of a strong recovery that is held in check by supply constraints. July saw 943,000 new jobs and a strong drop in unemployment to 5.4 percent. The employment-to-population ratio now stands at 58.4 percent and the labor force participation rate at 61.7 percent. Initial claims for unemployment insurance dropped 14,000 to reach 385,000 in the last week of July. Services and manufacturing continued to expand in July and both sectors reported significant price pressure as commodities remain in very short supply. Labor shortages were also widely reported in all industries. Surging demand from US consumers drove the trade deficit to a record level at -$75.7 billion as imports increased by $6.0 billion. Meanwhile, mortgage applications for purchase transactions eased 1.7 percent for the week ending July 30 and are now down 5 of the last six weeks. Despite lower interest rates, purchase applications continue to face headwinds from an ongoing lack of inventory which has driven up home prices.

Looking at daily trading, it was another ho-hum day in the bond market yesterday as investors await inflation data in the form of CPI and PPI. There was good demand at the day's $58 billion 3-year Treasury note auction and the Senate voted in favor of the $1.2 trillion infrastructure spending bill, as expected. The NFIB Small Business Optimism Index fell in July as productivity was weaker than expected and Q1 productivity was revised down. Unit labor cost data was low, which helps the Fed determine if rising wages are feeding into broader price inflation. Treasury yields pulled back slightly on the day while the MBS basis ended wider.

Slower growth and easing inflation should allow the Fed to stay on hold for longer. As for basis overall, lower coupon MBS has been trading with strong demand given the market's acceptance of an earlier, gradual tapering off of asset purchases, which is thought to step from $40 billion to $35 billion of MBS purchases each week initially. It is hoped the impact on the bond market will be minimal as there is still sizable bank and asset manager demand for mortgage-backed securities (MBS).

Speaking of which, Ginnie Mae MBS issuance volume was $74.29 billion in July, which will help consumers purchase homes in their communities. Ginnie Mae MBS issuance reflects the liquidity of the program, its value in meeting the mortgage needs of homebuyers and rental property owners, and its role in financing affordable homeownership and rental housing. Approximately 274,882 homes and apartment units were financed by Ginnie Mae guaranteed MBS as a result of July 2021 issuance.

Weekly mortgage applications from the MBA led off today’s economic calendar, increasing 2.8 percent from one week earlier for the week ending August 6. Later this morning brings the all-important July CPI report. The July budget deficit will be released in the afternoon. Two Fed presidents are scheduled to speak starting with Atlanta’s Bostic followed by Kansas City’s George. In very early trading Agency MBS prices are worse/down a shade and the 10-year yielding 1.36 after closing yesterday at 1.34 percent.

Employment and Business Opportunity

Advance your career now. Top-ranked Embrace Home Loans is hiring mortgage professionals to come work at all of its retail branches, as well as in new offices opening up around the country. “We’re significantly increasing our retail sales force and expanding our footprint,” says Steve Adamo, president of national retail production with the Rhode Island-based lender, which had a record $6+ billion in production last year. “I’m looking to build on the strong momentum we have going,” Adamo says. The company arms its loan officers and branch managers with superior technology and all the marketing they need to be as successful as possible. “Embrace is positioned for growth and set to compete with the top independent mortgage banks in the country,” he adds. Customers are happy too: Embrace has 5-star ratings on Zillow and Social Survey. If Embrace sounds like the place you should be, reach out to HR’s Patrick Mullen.

“If you are an owner of a mortgage company and have held off selling for fear of letting your team down, then please contact us. We guarantee you that we are who your team would want to be with if they had a choice; impressive capital base for expansion, leading innovator, stunning execution metrics, incredible brand, aggressive compensation, and, most importantly, we give independence to the branches for highly flexible model choices to support all markets. You leave the legacy with your people that you most wanted while attaining the financial freedom and reward you have worked hard for. Confidential discussions are the start of incredible opportunity for you and your team. Please send your confidential note of interest to Chrisman LLC’s Anjelica Nixt and specify this opportunity for forwarding.”

Finally, there’s a better business model that provides LOs with ultimate control, unmatched pricing & a proprietary LOS that promotes faster closings! See how top producing loan officers are leveraging digital storefronts to expand market reach and increase volume. Canopy Mortgage is hiring top producing Loan Officers and Branch Managers. Build your business the way you want, Join Canopy to stand out in the following markets: CA, CO, FL, GA, HI, IL, NC, SC, TN, TX, and WA. Reach out to Josh Neumarker at Canopy Mortgage for more information 801-330-5016.