9.6.22 Mortgage Culture Changes; CHLA's Scott Olson on Advocacy; Bond Reaction to Unemployment Uptick

Thanks to Candor. With Candor’s Machine as an Underwriter, lenders modernize their manufacturing infrastructure making them immune to margin, capacity, and staffing challenges forever.

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Now that we have passed the unofficial end of summer, am I allowed or not allowed to wear white on Zoom calls before 2023’s Memorial Day? Maybe darker-hued clothing better suits the current mortgage landscape. Labor Day became an official holiday in 1894 and was quickly followed by the subjective rule that if you didn't have the money to take fall and winter vacations you should refrain from wearing white, but no one in 2022 should feel the need to follow it. Culture is always changing and understanding that will help mortgage companies with retention. It is a different time than when many of us entered the industry. Heck, the 96-year old queen of England stars in TikToks now. Investors are “socially conscious” in allocating capital, even down to how they support affordable housing and provide access to credit for underserved individuals. Mortgage companies are hoping that changes from Washington D.C., including the plan to forgive loan debt, could help convert American renters to buyers and add more competition in the buyer market. Speaking of developments out of Washington D.C., today’s podcast is available here and includes a discussion with the Community Home Lenders of America (CHLA) Executive Director Scott Olson on mortgage advocacy. This week’s is sponsored by Candor. With Candor’s Machine as an Underwriter, lenders modernize their manufacturing infrastructure making them immune to margin, capacity, and staffing challenges forever.

Employment

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SecurityNational Mortgage Company is currently hiring for great loan officers like you. As part of Security National Financial Corporation, SNMC continues to be a Safe Haven in these Turbulent times for Amazing Loan Officers and Production Teams!! If you are looking for stability and growth in your career, look no further than SNMC! We offer a range of loan products from USDA, FHA, down payment assistance and SNL Portfolio loans. Join a company where you can grow your business!

Acra Lending continues to prove itself as the industry’s leading private mortgage lender! Join our growing team and experience the growth that is driven by our employees as much as by our programs! We’re currently hiring for Wholesale Account Executives, Mortgage Loan Officers, Correspondent Sales, Fix and Flip Account Executives, a Junior Web Developer and more. Come build your career with a company that is committed to helping you achieve success. Visit Join Acra or email us to learn more about the opportunities we offer.

Vendor Latest

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All AMCs are alike, right? If we’ve learned anything since 2020, the answer is a resounding “no.” Some just go through motions while others jump through hoops to drive innovations that make a meaningful difference. During the recent refi boom, that had lenders waiting weeks for appraisals, Incenter Appraisal Management quickly developed and introduced the RemoteVal remote inspection tool that reduces appraisal turn times from weeks to days. Then, the GSEs approved desktop appraisals for purchase (oh boy!) that required a 3D floor plan with walls (oh no!). Instead of balking like other AMCs who said “no one wants to do these,” IAM quickly added a floor plan generating tool to RemoteVal. When you choose an AMC willing to invest in the right technology and combine it with the right people, magic happens! To experience the Incenter Appraisal Management difference, contact us.

Do you know the power that training, accountability, and coaching can have on your team? XINNIX, the nation’s premier provider of sales, leadership, and operations training for the mortgage industry, can elevate the performance of your loan officers an average of 40%, no matter what stage of their careers they are in. From new loan officers to top performers, XINNIX has programs designed to take every member of your team to the next level. Year-to-date, the experienced loan officers in the EDGE program have seen a nearly 54 percent increase in loan applications. The new loan officers in June’s ORIGINATOR program saw an average of 6.56 applications in their first month of production. With numbers like these, you only need to ask yourself one question—how high do you want to go? Call a XINNIX Consultant today to find out how they can energize your people and elevate results. 

In today’s market, high performing lenders starting up a new lending organization or established lenders looking to grow market share, need to heavily look into solutions provided by partners to have a more consistent and profitable origination business. Maxwell Private Label Origination takes the pain out of launching and scaling mortgage operations for any licensed lender by handling all non-LO origination activities, from technology to experienced back office origination staff, all for a flat fee. By pairing Maxwell’s leading technology and secondary market access with veteran industry talent, the end-to-end solution injects efficiency and economic scale, allowing you to quickly win market share and focus on the core of your business. Now is the time to seize your piece of the mortgage market. Click here to learn more about Maxwell Private Label Origination, or schedule a call with the Maxwell team today.  

Does your firm work in the service industry or with self-employed borrowers who otherwise may not qualify using a traditional bank statement program? Bring your deals, scenarios, and questions as National Mortgage Professional Magazine presents a DealDesk featuring Acra Lending's Light Doc Programs. Acra Lending is excited to announce their new light doc programs for self-employed borrowers and wage earners. Qualify your borrowers easily with the new 1099, P&L, and WVOE-only programs. These light doc programs are a perfect fit for your borrowers in the service industry or self-employed borrowers who otherwise may not qualify using a traditional bank statement program. Join Jason Sheridan, Vice President at Acra Lending on Wednesday, September 28 at 2 pm ET / 11 am PT as he helps you understand eligibility requirements, target audience, income documentation and calculation, credit and eligible property types. Register here to present your deals and ask your questions about Acra’s Light Doc programs.

It is the start of autumn and change is in the air. As mortgage volumes drop, now is the time to prepare for the next time the market is booming. With millennials dominating the current housing market and GenZ coming on the scene, digital offerings have become more important than ever. IDS Mortgage Doc Prep has come together with Wolters Kluwer’s Closing Solutions to offer a fully digital mortgage experience. Take advantage of the extra time on your hands and upgrade your company’s technology to be on the cutting edge of digital mortgage lending with a complete suite of eMortgage technology, from origination to securitization. Start with a group demo or meet with us at the Digital Mortgage conference this month. Not back at conferences yet? Contact us directly for a sneak peek! 

Whether it’s implementing new loan programs, entering new markets, deploying the latest technology (CRM/POS/LOS), or simply enhancing internal systems and procedures, most mortgage companies face significant obstacles and potential pitfalls when managing organizational change. Agility 360, a mortgage-centric project staffing, outsourcing, and recruiting firm, is excited to announce their NEW Change Management Resource Solution where they deploy personnel with extensive industry experience to seamlessly support critical projects and strategic initiatives. Leveraging their proprietary Agility Resource Network, they can rapidly assign project managers, software engineers, business analyst, technical writers, and trainers to ensure success for clients and their crucial objectives. Through a comprehensive and proven client engagement process, Agility 360 aligns high-performing and vetted personnel to address any specific or challenging situation. If you’d like to learn more about how we can help, please contact Annabeth Kline at 469-577-1961.

It’s official: Pumpkin Spice season is here! Rather than jump on the flavor bandwagon, Finance of America Mortgage TPO has put together some tasty product offerings that will continue to satisfy your customers, even after the fall colors fade. Temporary buy-downs, DSCR loans, and enough different jumbo flavors to try something new each day of the week. If that’s not quite your cup of tea, check out our Flex Suite of Non-QM products. No matter what your customers are craving, we’ve got you covered! Not currently working with Finance of America Mortgage TPO? You should be! Contact us today to see how FAM TPO can help ensure your customers have the options they need to make homeownership a reality.

Have we reached a new normal as far as forbearance exits are concerned? Maybe. But what if they spike up again? Will your default team be subscale? And if they don’t spike, will you be overstaffed? Major servicers are hedging their bets by strategically outsourcing their modification and default functions to Covius. One top five servicer has outsourced all their modification and default title work to us and has for more than 10 years. Outsourcing shifts fixed costs to variable and lets you redeploy staff without worrying about a short-term spike in forbearance mods. For more information about modification and default outsourcing at Covius, please contact Niki Culver, SVP-Operations.

With lower volumes and tighter margins, business intelligence is more important than ever. You need to know how you’re performing in real time as market conditions change on a dime. Richey May’s RM Analyze is business intelligence designed by and for mortgage industry experts. Our platform consolidates data from every department and every piece of software you use, so you can get answers quickly. It provides just the right reporting from the C-suite to the front line, plus the functionality to build visually engaging reports on key indicators. Bonus: Our analysts have deep mortgage experience, so you don’t need to train us on your business. Get the cross-functional data, user-friendly dashboards and real-time analysis you need. Contact us today for a walk-through and custom implementation plan. 

Events, webinars, and training, lots for free!

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In September the private mortgage insurance companies offer a fine range of very cost-effective/free training: National MI University, Enact’s course catalog of on-demand webinars, MGIC, Essent,Radian, and Arch MI. 

Join MBA of Metropolitan Washington for a lunch and learn webinar on Wednesday, September 7 for a discussion on the outlook for our industry and how to approach selling in one of the most dynamic times in decades for the sector.

Thursday, September 8th, is a big day!

With the growing gig economy and increasing demand for non-QM bank statement loans, many mortgage lenders are looking for ways to efficiently and accurately process 6, 12, or even 24 months' worth of bank statements. Learn how Ocrolus can help streamline your income calculation process and enable faster decision-making, even while reviewing more documents. Join Ocrolus mortgage experts to discuss automating bank statement loans register for the webinar on Thursday, September 8.

There’s no shortage of hot buttons (and headaches) for HR professionals in the mortgage industry these days. Capacity management, onboarding and offboarding personnel, incentive plan design, labor law and remote work are only a few of the topics keeping HR professionals in our business up at night. And MBA’s Human Resources Symposium is taking place in Arlington, Virginia. 

National MI University’s “Winning Business in an Era of Distrust” with Kristin Messerli is Sept. 8 at 10am PT. In this webinar Kristin will share practical methods to build trust with today's consumers through systems, automation, and customer experience techniques to drive better lead conversions and brand recognition in the market. 

Join MCT for a webinar with Fannie Mae discussing the benefits of MCTlive! integrations with Fannie Mae technology.

In the state of Washington, kick off the fall dinner season with Michael Fanning, register to attend PSMLA’s Dinner on September 8. Michael’s motivation, coaching and sales strategies will help you navigate this changing market.

Register for L1 National Provider Virtual Showcase on Thursday at 1:00 pm ET to learn about products and services that can help reduce costs and increase their profitability. Great line-up of speakers and companies.

For digital financial education strategies and tips for accessing home equity responsibly, join Sales Boomerang and Mortgage Coach together with Blackfin Group at 2 pm ET. Proceeds will benefit United Help Ukraine, with Alex Kutsishin, Sales Boomerang + Mortgage Coach, and BlackFin each matching up to $1,000 of ticket sales. Register to support this great cause and gain innovative strategies for educating consumers of all ages.

This Friday the 9th, at noon PT, is the next edition of The Mortgage Collaborative’s Rundown with Rich and Robbie Chrisman. Rich and Robbie will be covering current events in the mortgage market for 45 minutes starting at noon PT in “The Rundown with Rich and Rob”!

Check the schedule at MBA’s Risk Management, QA and Fraud Prevention Forum, see the opportunities for timely updates and deep dives on the hottest topics impacting your business, plus networking opportunities with your peers from across the nation. You won't want to miss it. Use the justification letter to get buy-in from your supervisor. Register for your event of the year in Nashville, September 11 - 13. 

Join MMLA’s webinar on September 13 and hear from speaker, Tom Host on what 1031's are, what they can be used for, and what the benefits of 1031's are.

If you’re working to fine tune your lock policies to address today’s market, make plans to attend the upcoming webinar, hosted by Optimal Blue, a division of Black Knight, on Sept. 14 at 1 p.m. CT. Save your seat today! 

Register for the MBA of Florida webinar, Survival Kit: Helping You Prepare for Today’s Cybersecurity Threats Sep 16, 10:00 AM EST. Presenter Robert Bigman,former Chief Information Security Officer for the U.S. Central Intelligence Agency, will discuss specific cyber threats - business email compromise, equipment security, and ransomware; Preparedness and steps if a breach occurs. 

Free for MMLA members, hear from Doug Duncan, Chief Economist, join the Webinar on September 20th. 

Take a Deep Dive into Non-QM with Angel Oak’sv Series Registration, September 15 | September 22 | September 29. Register for individual topics or the full series.

IMN’s NPLs, Notes & Default Servicing Forum, taking place September 28-29 in Santa Monica, CA. With foreclosure/defaults activity starting to increase, we are projecting record attendance (400+ attendees) at this year’s event, consisting of a who’s who of Investors/Buyers, Servicers, Originators, and other Industry Professionals. Speaking & Sponsorship/Booth opportunities are available.

Homeownership for non-white Americans lags about 30% behind, and a large majority of these potential homeowners don't realize there are ready or almost ready to start that journey to homeownership and building personal wealth. Mark your calendars for OMBA's Annual Affordable Housing Summit, "Building the Framework", Thursday, November 10 from 8:30AM-12:30PM. The summit will provide the opportunity to hear how to find these potential homebuyers, how to build the trust needed to help them become ready to buy a home and what products and services are available to assist them - and YOU in making this dream a reality. Registration will be available soon for this Virtual Conference.

The New England Mortgage Bankers Conference is fast approaching, and there is a discount code of RESUME for anyone wanting to attend the conference for a special one-day pass who is not employed. They can attend either Wednesday or Thursday for $25. It's on the honor system. Attendees will be packaging 15,000 meals for Rise Against Hunger. There is a servicing track, an MLO track, and an operations track on Wednesday as well as live streaming the Fed meeting with Matt Graham doing a real-time commentary and then talking about interest rates afterwards. 

Lenders One has the upcoming Sales and Marketing Basecamp on 9/22 at the Rock and Roll Hall of Fame in Cleveland, featuring experts sharing strategies on sales and marketing trends, technology, recruiting, retention and more. Ready to get a savings review and learn what Lenders One membership benefits and networking events can do for you? Click here or email Tricia Migliazzo today. 

Interested in completing your Continued Education in a way that will keep you engaged and entertained? Join The Knowledge Coop for one of our Live In-person CE Classes! September 21 Bellevue, Washington (20% Discount Code: 20Washington), September 22 Lakewood, Washington (20% Discount Code: 20Washington), September 26 Houston, Texas (20% Discount Code: 20Texas), September 30 Austin, Texas (20% Discount Code: 20Texas), and October 6 Denver, Colorado (20% Discount Code: 20Denver). 

The MBAC 66th Annual Convention, October 2nd – 5th, an opportunity for mortgage executives to bring your loan originators, servicers, and associates who serve both states. MBAC CE Registration Page must supply NMLS # and select CE session, Promo Code will follow.

Don’t forget the MBA’s Annual Convention in Nashville, TN in October (Annual Convention and Expo | MBA).

Registration is open for TMBA's 5th Annual Mortgage Symposium, November 7-8. The Early Bird registration is currently $195.00 for members and $320.00 for non-members. Take advantage of TMBA's block of rooms at the Renaissance Dallas at Plano Legacy West Hotel.

Save the date for the L1 Executive Roundtable, November 8-9 in San Antonio! Ready to get a savings review and learn what Lenders One membership benefits and networking events can do for you? Click here or email Tricia Migliazzo today.

Registration has opened for NRMLA's Annual Meeting & Expo at the Grand Hyatt Atlanta in Buckhead, November 1- 3 NRMLA provides a vital venue where business owners, loan originators, servicers, underwriters, counselors and others can converse and learn from one another.

Get 1-1 time with lender execs at #NEXTFALL22, Nov 8-10 at Hotel Crescent Court in Dallas. This year, #NEXTFALL22 will introduce NEXT Hives, roundtable think tanks for top senior lender executive attendees. Each hive will focus on a business issue that concerns mortgage executives in today's market. Request your invitation today.

Mark Your Calendar for the 7th Annual FreddieMacCONNECT Conference. This Single-Family's premier annual event and will be held November 15-16, 2022. Once again, the conference will be held virtually at no cost to you. Sign up for FreddieMacCONNECT updates to receive information on registration, breakout sessions, keynote speakers and more.

Interested in completing your Continued Education in a way that will keep you engaged and entertained? Join The Knowledge Coop for one of our Live In-person CE Classes! September 21 Bellevue, Washington (20% Discount Code: 20Washington), September 22 Lakewood, Washington (20% Discount Code: 20Washington), September 26 Houston, Texas (20% Discount Code: 20Texas), September 30 Austin, Texas (20% Discount Code: 20Texas), and October 6 Denver, Colorado (20% Discount Code: 20Denver).

Hello, Just a quick note on IMN’s NPLs, Notes & Default Servicing Forum, taking place September 28-29 in Santa Monica, CA. With foreclosure/defaults activity starting to increase, we are projecting record attendance (400+ attendees) at this year’s event, consisting of a who’s who of Investors/Buyers, Servicers, Originators, and other Industry Professionals. To visit the conference site, click here.

Capital Markets

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We saw mortgage rates decline before the long weekend due to the idea that a softer employment report for August than July could compel the Fed to take a less aggressive rate-hike path at its September 20-21 FOMC meeting. The economy added 315k jobs in August, a touch above the 293k consensus number, but a big decrease from the 526k that were reported in July. The unemployment rate ticked up 0.2 percent to 3.7 percent, showing the Fed may finally be getting some traction in slowing down the economy as it weighs another expected interest rate hike. The strong job market should continue to support housing demand as household incomes continue to grow.

The labor force participation rate increased to its highest level over the last two years as more people return to work. Perceptions of the job market were mixed with 48 percent of consumers saying jobs were “plentiful” and 11.4 percent responding that jobs were difficult to get despite 11.2 million job openings. For the moment, the labor market remains strong despite higher interest rates. Meanwhile, housing continues to cool as higher mortgage rates and rapid home price appreciation over the last year have eroded affordability. As a result, homebuilders have pulled back on new projects with new single family home construction falling 4 percent in July. Market expectations continue to lean towards another 75-basis points rate hike when the Fed meets later this month and there was nothing in last week’s data to significantly shift that sentiment.

After the U.S. markets were closed for the Labor Day holiday yesterday, today sees some manufacturing readings in the form of Final August IHS Markit Services PMI and the August ISM Non-Manufacturing Index, both due out later this morning. It is a relatively quiet holiday-shortened week, with tomorrow bringing the latest Beige Book, Thursday seeing the usual jobless claims, and July Wholesale Inventories due out on Friday. There is a sprinkling of Fed speakers, including Chair Powell and the latest ECB decision on Thursday. In regard to MBS, the Desk is scheduled to purchase up to $1.264 billion over today to Thursday, including $756 million UMBS30 4 percent through 5 percent today. August agency prepayments will be released after tomorrow’s close with Class A 48-hours on Monday September 12. We begin Tuesday with Agency MBS prices worse .250 and the 10-year yielding 3.25 after closing Friday at 3.20 percent.

You think gas and electric prices are bad...have you seen chimneys? They’re through the roof!