8.5.22 Maxwell CEO John Paasonen on Millennial and Gen Z Homebuyers; U.S. July Employment

I'd like to thank today's sponsor, Richey May. Richey May is a recognized leader in providing specialized advisory, audit, tax, technology and other services in the mortgage industry and in banking. The firm has also consistently been recognized as one of the fastest growing firms in the country, and has been named to the HousingWire Tech 100 in Mortgage, Accounting Today Firms to Watch, and the Fastest Growing Firms. The firm has also received multiple awards for Excellence in Firm Culture from Inside Public Accounting. To experience how Richey May can help you transform your mortgage business, visit richeymay.com.

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Please answer the short questionnaire at the end of the Commentary. Okay, just kidding. I have grown to really dislike a survey request after I stay at a hotel, fly somewhere, or fill up at the gas station. But for brokers who wouldn’t mind providing a little input, a fintech company that I know of is looking for “a preferred tech stack.” Brokers who wouldn’t mind shooting me a quick email (anonymous, just replying to this commentary) listing your preferred technology providers for a pricing engine, POS (Point of Sale), and LOS (Loan Origination System), and why, would be appreciated. Streamlining the borrower experience is the name of the game, if one can find LOs and borrowers. With that in mind, help in finding LOs that match the strengths of your company strengths, so they are successful with the greater opportunity of retaining them for the long run is always a good thing, and thus Jeff Walton from Ingenius is co-hosting The Mortgage Collaborative’s Rundown today at noon PT/3PM ET. I hear this time and time again: If companies think that they’re going to continue to expand and grow by ignoring and mistreating their customers, they haven’t been paying attention to what happens in the marketplace. (Available here, this week’s podcast is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services in the mortgage industry and in banking. Today’s has an interview with John Paasonen, co-founder, and CEO of Maxwell, on how Millennial and Gen Z homebuyers are transforming the mortgage market.)

MLO & branch manager jobs, and another untimely death

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E Mortgage Capital (EMC), one of the largest independent mortgage platforms in the county has expanded to 24 states with recent brick and mortar branch openings in Washington, Texas, Georgia, and Florida. EMC has built a platform that allows Branch Managers and Loan Officers to increase their earning potential while providing industry leading technology and resources to create a world-class experience for consumers. EMC is actively hiring Branch Managers and Loan Officers across the country with comp plans up to 500 BPS. "As a lot of mortgage companies are dealing with layoffs, we are increasing our investment into our people. From business-planning solutions to marketing and technology resources, E Mortgage Capital is a great place for mortgage professionals to elevate their career and take that next step" says Joe Shalaby, CEO of E Mortgage Capital. If you are a licensed Mortgage Loan Originator looking to explore the E Mortgage Capital platform, please contact Joe Shalaby.

As a Keller Mortgage loan officer, you’ll have access to something no other mortgage company can offer: a captive audience of 180,000 Keller Williams Realtors (the largest real estate company in the world). Whether you’re a new LO, a seasoned LO looking to break through to the next level and build a team, or a branch manager looking to expand your district, Keller Mortgage has a detailed plan to help you get there. Join Keller Mortgage and start climbing the opportunity ladder their founder, Gary Keller, detailed in his best-selling book, The Millionaire Real Estate Agent. Keller can offer you the chance to grow, the technology to reach more clients, and the plan to take your career to the highest level. Contact Cassidy O’Sullivan at (805) 428-0082 today.

Steven Schnall, of Quontic Bank and a long-time advocate for the industry, was tragically killed in a motorcycle accident this week.

Lender and broker services, programs, & software

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Now more than ever, wholesale brokers and correspondent clients need a partner they can count on. Luxury Mortgage Corp’s elite Account Executives understand and are consistently reliable and trustworthy. Described again and again as among the best in the industry, their experience, mortgage knowledge, and attentiveness set them apart. Let them go to work for you and put your success first. Contact an Account Executive today to submit a scenario!

Flagstar Bank’s staff just returned from Western Secondary, where they met with a number of current and prospective customers. The feedback was outstanding: “Flagstar has the best client service in the industry.” “Support for clients is always delivered at a consistently high level.” And on and on. It’s not surprising, because Flagstar strives to deliver a highly personal warehouse-lending experience every time. For example, each client has an assigned processor, someone with whom you have an ongoing relationship, who knows your business inside and out, who you can talk to at any time about any issue. Your processing staff as a whole gets Flagstar’s undivided attention to detail. The result? Things just work. Your loans close on time and your reputation is protected in the marketplace. Consolidate all your warehouse lines of credit with people you can count on. Contact Jeff Neufeld to discuss what Flagstar can do for your business.

“Join Deephaven Mortgage for our Non-QM expert educational webinar series. Deephaven has over 10 years of Non-QM lending expertise and invites you to our monthly Non-QM webinar series. Our Deephaven Non-QM webinars will assist loan officers and their referral partners in becoming the Non-QM experts in their markets. Learn more about the must-have products that you need to reach more borrowers. Register today for our August Non-QM series. Scheduling conflict? We’re happy to schedule individual customizable webinars for your team. Contact Catherine Parsell for your Non-QM training needs. If you are interested in being approved with Deephaven Mortgage contact Tom Davis.”

ArmorDoc leverages AI to automate document classification, data extraction, and stamp/signature recognition from residential mortgage documents. The key benefits of ArmorDoc are to replace manual reviews of loan packages with automation to manage the ebbs and flows of originations and bulk transactions for a more cost-efficient, faster, and accurate streamlined pre- and post-QA process. ArmorDoc has models for FHA/VA, Conventional, DSCR, Non-QM and Reverse mortgages (both newly originated and legacy). To date, ArmorDoc has processed more than 100,000 loans through their pipeline with results greater than 97.5% accuracy and as high as 99.9%. ArmorDoc was launched by mortgage industry veteran Mike Hartman in 2020 and is 100% US based. Request ArmorDoc’s One-Pager to learn more by emailing.

Lenders who are already automating their manual processes with a flexible loan origination system (LOS) are most assuredly in a better position to attract and retain today’s top talent. Why? Automating the application process enables loan officers to gather the information more quickly and ensure everything progresses smoothly, thus increasing their productivity and enhancing the customer experience. While the right technology support is a requirement in today's environment, that doesn't necessarily mean getting the most complex digital loan origination system. Instead, it comes down to finding a 100% browser-based feature-rich solution to help mortgage lenders reach long-term success. MeridianLink Mortgage loan origination software provides direct value to you through ease of use and implementation with best-in-class support every step of the way. This means when you buy from us, you can deliver loans with speed and accuracy from application to approval and provide a more meaningful borrower experience.​

In this dynamic market where margins are thin, Mortgage Bankers need tools that create efficiencies and drive opportunities for increased revenue. Citibank N.A. continues to provide innovative solutions that are designed to help our sellers realize higher returns and mitigate hedge risk through our best-in-class Mandatory desk. Our Bid Tape/AOT execution is designed to help sellers to continue tapping into the pricing granularity of the traditional bid tape process while leveraging the economic and operational efficiencies of Assignment of Trade. Sellers are taking advantage of wider bid/ask spreads to help create better cash flow through this simple to use, interactive tool that accompanies the bid. With a robust approved dealer list, minimum requirement of only $500,000 and ability to blend, Citi’s Bid Tape/AOT is a standout program in the industry. Learn more about how we can support your growth by contacting our National Client Services Team at 800-967-2205 or completing the Prospective Correspondent Questionnaire.

We don’t need to tell you how volatile the industry is currently, but, contrary to some schools of thought, now is indeed the perfect time to restructure and invest in innovation so you can weather this storm and come out stronger on the other side. Candor’s Loan Engineering System (LES) seamlessly integrates inside your LOS eliminating the need to log into a different platform for access. Using expert systems technology, Candor’s LES can fully underwrite a loan in as little as 90 seconds and as early as point-of-sale, which will allow a borrower to compete with cash offers. Unlike any other solution in the mortgage space, Candor’s LES clears conditions based on unique loan data and scenarios and provides a warranty on those cleared conditions. With well over 2 million underwrites, Candor LES has proven to increase Underwriter productivity by 5X and reduce turn-times by as much as 20 days, all with ZERO repurchases! Learn more about how our innovative technology and insights can help you Survive and Thrive the next 12-18 months and beyond! Contact us for a demo and be live in 30 days!

National MI addresses Equifax alleged miscalculations

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The industry is coming to grips with the Equifax coding issue that occurred between 3/17/2022 – 4/6/2022. It is rare that I duplicate an entire lender or investor notice, but given the complexity and seriousness of this issue, thought it wise so folks can see a template of what is going on.

“National MI was recently made aware of the Equifax coding issue and the following guidelines are being provided to help lenders clearly understand the best next steps for your National MI loans impacted by the Equifax coding issue.

Approved MI Commitments and In-Force Closed MI Certificates, eligibility: A new eligibility determination is not required and National MI will not rescind due to an error in the representative score caused by the Equifax coding issue. Pricing: If the corrected representative score results in additional MI premiums due, National MI will not require a pricing adjustment. If the corrected representative score results in a lower MI premium, National MI will adjust the pricing and return any excess premium remitted to National MI.

In-Process MI Applications (MI not activated and not in a Commitment status): Eligibility & Pricing:  New MI Applications and in-process loans should accurately reflect the credit risk characteristics of the loan, including an accurate Equifax score used in the determination of the representative score. Immaterial Equifax score changes that do not affect the representative score need not be resubmitted. In addition, for loans where the Equifax score and representative score have not changed, then no action is required.

National MI allows the following submission options in order for the lender/Insured to provide National MI the corrected Equifax score and representative score, in-process MI Applications and approved MI Commitments (loans that are not yet in-force), Non-Delegated Loans: Upload the updated borrower/loan-level supporting documentation with the corrected Equifax score, corrected representative score, and any other applicable information into National MI’s AXIS system. Delegated Loans: Upload the corrected Equifax score and corrected representative score into National MI’s AXIS system. If the updated representative score causes the loan to pend or if you receive an ineligible response from AXIS, please contact the Solution Center at 855.317.4NMI (4664).

Non-Delegated or Delegated in-force closed MI Certificates: For single loan or multiple/bulk loan submissions, submit the corrected Equifax score, corrected representative score, along with National MI Certificate #, Lender Loan #, and Borrower(s) Last Name(s) via secure email communication to servicing@nationalmi.com. For spreadsheet document delivery via secure email submission, contact the Solution Center at 844-317-4NMI (4664) or solutioncenter@nationalmi.com. For B2B/EDI transmissions, please contact the Solution Center at 855.317.4NMI (4664). Once National MI has received the information, we will provide the Insured with a notification. If the lender/Insured is uncertain how the corrected Equifax score impacts the representative score for in-process loans or loans with a National MI Commitment/Certificate, then either submit the updated information per National MI’s submission options noted above, or contact the Solution Center at 855.317.4NMI (4664) or solutioncenter@nationalmi.com.

Capital markets: where the money is

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We’re part of a global economic village. Yesterday the Bank of England raised its bank rate by 50 bps to 1.75% and increased its forecast for peak inflation in Q4 to 13.3% from 13.1%. The central bank also warned that the U.K. is headed for a recession.

All economic news is viewed in terms of how it will, or won’t, fit into the Fed’s narrative of inflation and the economy. Ahead of today’s payrolls report we received some labor market indicators yesterday. U.S. employers announced nearly 26k job cuts in July, according to outplacement firm Challenger, Gray and Christmas. The figure is down 21 percent from June, but up about 36 percent from a year ago. The job market remains tight, evidenced by a series low of job cuts (159k) for the first 7 months of the year, going back to 1993. Though there are some indicators that hiring is slowing after months of growth, large-scale layoffs have not begun. Initial jobless claims ticked up slightly to 260k. Claims have reached their highest level since November and may be an indication of potential cooling in the U.S. labor market.

All eyes are on July’s employment stats released this morning. Nonfarm payroll, for example, is a leading indicator for the Fed as it looks to continue its path of monetary policy. Mortgage rates held steady through the week, but volatility could return with today’s release. The headline numbers show nonfarm payrolls were 528k! (versus forecasts of +220-250k), the unemployment rate came in at 3.5 percent (versus forecasts of 3.6 percent), hourly earnings were +.5 percent (versus expectations of +.3 percent), and labor force participation rate 62.1 percent, down .1. We begin Friday with Agency MBS prices worse .5 and the 10-year yielding 2.79 after closing yesterday at 2.69 percent after the surprisingly strong employment data was released.

No matter how much you push the envelope, it'll still be stationery.