10.19.22 Lender Adaptability; Service 1st CEO Curt Knuth and NCS COO Lisa Binkley on VOE Cascades and Income Documentation

EarnUp is reinventing payment and data flows in real estate ecosystems, origination, mortgage, and fintech. To learn more, visit earnup.com/robchrisman.

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Here in Orange County, the mortgage talk runs the gamut. Sure, a recession would cause rates to drop, but before that happens, are residential lenders looking at a long autumn and winter? Our biz is dealing with broad topics such as affordable housing, housing inventory being impacted by potential sellers taking properties off the market, and the general trend in mortgage rates, all the way down to the cost of credit reports potentially approaching $100 per report and making sure you talk to your warehouse lender weekly (not weakly). Lenders are looking at cross-training skillsets: Prioritizing coverage and making sure to cross-train so people can play to their strengths. Analyzing what tasks they're doing, and the best people to do it. Workflow? Lenders are minimizing file touches, using a cheaper resource for parts of the file, and moving more duties from underwriting to cheaper personnel. Using checklists: Once a file hits intake, if there is enough information to make a credit decision, have it go right to the underwriter. Meanwhile, from Texas David I. reminds me that the Atlanta Fed President disclosed trades “inadvertently” were made during blackout periods, prompting the latest Fed investigation. (Today’s podcast is available here and features an interview with Service 1st CEO Curt Knuth and NCS COO Lisa Binkley on VOE cascades and income documentation. This week’s is sponsored by EarnUp, reinventing payment and data flows in real estate ecosystems, origination, mortgage, and fintech.) Jobs and transitions____________________________________________________ “A medium-sized healthy/profitable Fannie/Freddie/Ginnie approved mid-west based IMB is seeking a Controller with strong analytical skills to join our accounting team. Candidates must have a history in mortgage accounting and an in depth understanding of mortgage financials, capital markets, GAAP, and the accounting aspect of servicing mortgage loans. The position is located in the Midwest but may consider remote for the right candidate. If you have the experience and are interested in joining a team that has been recognized by auditors as a top performing IMB in the country, please send your resume to Chrisman LLC’s Anjelica Nixt for forwarding.” Evergreen Home Loans™ is excited to announce the addition of Robert Lipston as executive vice president, loan production. Lipston brings over 35 years of mortgage experience in sales, leadership, and operations. In this role, he’ll work directly with Evergreen branch and regional management to continue to support growth and market share. “We are so excited for Robert to join the Evergreen Home Loans team to lead our production business,” said Tamra Rieger, president, Evergreen Home Loans. “He brings extensive management skills that will be key as we continue to expand our business and serve our customers. Robert is also a respected leader in the mortgage community, and we look forward to him continuing to be a thought leader amongst our peers.” If you’re a loan officer and want to work for a company where personal and professional growth are a priority, visit the Evergreen Careers page. Academy Mortgage recently introduced a powerful duo to lead the company’s growth in production, people, and culture. Newly appointed EVP of Production Justin Harris will utilize his 20 years of valuable industry experience to lead Academy’s market expansion, business development, and production growth. Justin joined Academy as a Regional Sales Leader and most recently served as SVP of Production. With an unwavering commitment to fulfill its mission and create life-changing experiences through lending, Academy’s board member Mike Jensen assumed a new position as EVP of Experience. Mike will be instrumental in investing in and connecting with the field to create unparalleled experiences for its Loan Officers, customers, and partners. These leaders will work hand in hand with the CEO to identify potential acquisition strategies. “History has shown that Academy tends to be a safe harbor during challenging times. We have great potential to bring new organizations and people to Academy over the next year,” said CEO James Mac Pherson. “We’ll be actively pursuing those opportunities.”   Lender & broker products, services, and software____________________________________________________ The CFPB wants to know how you intend to reduce automation risk and consumer disruption by looking to evoke modern industry automation and digitization now. The goal is to be better prepared to assist homeowners grappling with financial instability, extending to borrowers needing either short- or long-term relief, and they want your feedback. The recent CFPB is looking for how you’ve used technology to drive survival through the pandemic and increasing natural disasters. We’ve summarized this effort in our “CFPB Proposes Automation to Reduce Consumer Friction” blog, which focuses on curbing chaos and disruption with the next iteration of loss mitigation automation: seamless digital servicing. Trade your spreadsheets and internal development efforts for progressive automation and decisioning. Stop by booth #1122 at the MBA’s Annual Convention & Expo in Nashville and discover how to create a digital path for your customers with CLARIFIRE®, truly BRIGHTER AUTOMATION®. Northpointe Bank Correspondent Lending’s leading-edge Expanded Portfolio (Non-QM) programs are now in LoanNEX®! The Prime Non-Agency program focuses on higher credit borrowers looking to take advantage of non-QM features, such as interest-only payments, 40-year terms, alternative doc options, including bank statements, one year’s tax returns, and asset depletion; or financing for non-warrantable condos and condotels. Expanded Access and New Start help borrowers with seasoned or recent credit events, and the Investor Cash Flow program offers financing for investment properties utilizing the debt-service coverage ratio rather than the borrower’s debt-to-income ratio. Available in all 50 states and Washington DC, Northpointe Bank provides tailored solutions to maximize your profitability and help grow your business. View program details here, and try out our Non-QM product eligibility tool powered by LoanNex®. For more information on how your team can leverage this technology to get more loans, email us. Win with Technology! Brokers often choose a lender because their technology leads to a more efficient process and quicker closing: does your tech measure up? Stop losing business because of substandard technology and compete like never before with Cloudvirga TPO Wholesale! Give your brokers tools such as robust PPE screens; a government loan center; and the ability to disclose, order appraisals and create Broker Branded Loan Comparisons and Preapprovals in minutes with a world-class user experience. Our new solution will redefine your broker relationships, helping you secure all their business. Take charge of your future now with Cloudvirga’s New TPO Platform! Stop playing catch up and start competing with the biggest lenders today. Check out our live demo at MBA Annual 10/24 at 2:50pm on the Expo Stage. Contact Jason Smith or call 636.345.7416 to win now! There’s still time to find your winning combination and unleash your digital lending potential. Wolters Kluwer’s idsDoc and ClosingCenter provide a fully integrated eMortgage solution with the tools you need to thrive in an evolving mortgage landscape, backed by decades of trusted compliance solutions. eSign and eVault together empower and inform your unique digital mortgage journey. To build your perfect combo of lending technology, drop by booth 811 at MBA Annual for more information. Or, arrange a meeting with an expert and attend one of our group demos at the show! Banks and credit unions are aggressively marketing HELOCs again, and investors are developing new secondary market options for these assets. Clayton has long been a leader in due diligence, HELOCs and other second lien loans. To date, Clayton has reviewed more than $1 billion in HELOCs, and we’re actively working with leading investors to support new securitization programs. We can tailor the scope of our reviews to clients’ needs: Compliance Only Reviews, Credit Only Reviews, Data Validation and/or the full scope of Credit, Compliance and Valuation Diligence for Securitization and Whole Loan evaluations. To learn more about Clayton’s HELOC Due Diligence offerings, contact Pete Thomas. “Candor Technology is attending the MBA Annual in Nashville, and we encourage you to stop by our meeting space at Union Station Nashville Yards in the Dixie Flyer room to learn how we can help you… …increase your efficiency by 400%. …remove bias from your underwriting process. …deliver consistent quality while mitigating repurchase risk. It’s time to leave behind antiquated methods of underwriting that are slow, expensive, and inconsistent. Discover what Candor Technology is developing today that will define the mortgage industry of the future.” Training & events around our biz_________________________________________________ We all know that as the market shifts, so must we and now more than ever, you need to be marketing! But where do you start? The best place is to create a Marketing Plan and why not do that with the #1 Edumarketing Influencer in the industry, Ginger Bell. For the past twenty years, Ginger has been working with some of the largest organizations in the industry to help them create educational marketing content and for a limited time she is holding an eight-week live coaching class. If you want to jump start your marketing for 2023, join Ginger for this amazing class. Get the details at www.mortgagemarketingcoaching.com  Class starts on November 1st! Use the code: Rob to take 50% off the price. Let’s start marketing! Doing more for less is important in this market. Having your team sharing daily, real-time, easy to convey market/economic insights is an ideal way to engage clients, members, and partners. Mortgage Market Guide has been helping thousands of America's top producers for over two decades. If you would like to explore MMG and options for your team, branch, or enterprise - reach out to their Chief Market Analyst Bill Bodnar at Bill@Tabrasa.io Listen, learn, and get inspired. Register for XINNIX’s webinar event with one of the most respected and influential executives and undisputable experts on leadership in the world. Former President of UPS International, Ron Wallace, will join XINNIX CEO Casey Cunningham on Thursday, October 20th, from 1-2 PM ET for a one-time-only live webinar event, “Leadership Lessons from a UPS Driver: Building a Culture of We Not Me.” Register for California MBA's DEI Committee Webinar on October 20th, 11:00 am–12:00 pm. Speakers Genail Nemovi, President & Managing Attorney, Nemovi Law Group, and Amanda (Mandy) Phillips, EVP of Compliance, Aces Quality Management will discuss appraisal bias, its history, current trends, and what lenders can do. This Friday at 3PM ET is the next edition of The Mortgage Collaborative’s Rundown with Rich Swerbinsky and me. We’ll will be covering current events in the mortgage market for 45 minutes starting at noon PT in “The Rundown with Rich and Rob”! On October 21st, 9:00-10:00 a.m., join MMLA West in a Zoom Webinar to hear from Steve Richman! Steve's presentation is, 'A Cynic’s Guide to Motivation, Success and Happiness' and you do not want to miss it! Discussions this session includes identification of external and internal motivators, the four C’s to suCCCCess, the seduction of negativity and how to avoid it. Cost: $10 per MMLA member and $20 per MMLA non-member. This weekend kicks off the MBA’s Annual National Conference in Nashville. The Knowledge Coop has a new membership platform. The Knowledge Coop offers all state and federal Continuing Education courses in an engaging and exciting video format that you're sure to actually enjoy. Want to give yourself a sharper competitive edge? They also offer in-depth training on specific topics like VA Loans and FHA within their Coop Academy. Get access to industry experts and connect with other mortgage professionals all in one space. Use Code Chrisman10 for 10% off your first year of membership at trythecoop.com. Capital markets: rates continue their march higher_________________________________________________ Are you hoping that rates drop soon? That would be highly unexpected, given global economic conditions. But interest rates will continue to go down and up daily, just like yesterday. Tuesday was another volatile trading day that saw MBS, Treasuries, and equities rally early in the day only to get pummeled later, with the 10-year settling (just) below 4.00 percent for the first time since the middle of last week. The only piece of economic news was the NAHB Housing Market Index in October, which experienced a much larger drop than expected.With the 30-year rate sitting at the highest level since 2002, Mortgage Bankers Association reported that mortgage applications decreased 4.5 percent from one week earlier, entering into the fourth month of declines and dropping to the lowest level since 1997. We’ve also received housing starts and building permits for September (the attention is on starts dropping 8.1 percent). Later this morning brings a Treasury auction of $12 billion reopened 20-year bonds and remarks from Minneapolis Fed President Kashkari and Chicago Fed President Evans. Between the two Fed presidents, markets will digest the latest Beige Book. We begin the day with Agency MBS prices worse .250 and the 10-year yielding 4.09 after closing yesterday at 4.00 percent.  When Beethoven passed away in 1827, he was buried in Vienna’s Central Cemetery.A couple days later, the town drunk was walking through the cemetery and heard some strange noise coming from the area where Beethoven was buried. Terrified, the drunk ran and got the priest to come and listen to it.The priest bent close to the grave and heard some faint, unrecognizable music coming from the grave. Frightened, the priest ran and got the town magistrate.When the magistrate arrived, he bent his ear to the grave, listened for a moment, and said, “Ah, yes, that’s Beethoven’s Ninth Symphony, being played backwards.”He listened a while longer, and said, “There’s the Eighth Symphony, and it’s backwards, too. Most puzzling.” So, the magistrate kept listening; “There’s the Seventh… the Sixth… the Fifth…”Suddenly the realization of what was happening dawned on the magistrate. He stood up and announced to the crowd that had gathered in the cemetery, “My fellow citizens, there’s nothing to worry about. It’s just Beethoven decomposing.”