In the press, here’s some information on the hit the Fed’s balance sheet has taken give the bond market selloff. And here at the MBA’s annual, some of the talk is about new products and about cost cutting. Yes, lenders are looking for new products, or help in exploring the viability of rolling something new out. For example, at the Capital Markets Committee meeting Sunday, I spent some time with Susan Brown, CMB, Founder & CEO of CoreSGB which helps lenders roll out construction loan products. In terms of cost cutting, I’ve spoken to a few owners who challenged their department heads to cut their costs 15 percent instead of the usual 10 percent, and brainstorm with others in doing it. We all know that net basis point goals (like aiming for 75 to 105 bps) have pretty much gone away. But if you’re “only” hitting breakeven, then unintended events can bring you to large losses quickly. If a company is seeing operational excessive costs, management needs to nail those down. Many lenders have used COVID to rid themselves of brick-and-mortar locations, keeping employees but letting go of the locations and expensive leases. Robin is cost-effective app that allows employees to book space to work within the office. (Today’s podcast is available here. This week’s 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 features an interview with TMS SVP of People, Bryan Crofford, on investing in their people.) Jobs; IMB wanted____________________________________________________ More than a business; it’s a movement. Join the team of Kind Ambassadors shaking up the retail mortgage market. Kind Lending, LLC is actively seeking Retail Branch Managers and Mortgage Loan Officers who are looking for access to an impressive selection of products, including Non-QM, Reverse and a Jumbo suite like no other! If you or your team are looking to serve your clients with white glove customer service and a full suite of competitive loan products (and putting the “fun” in funding while doing it), join the #KindMovement alongside CEO/Founder Glenn Stearns and the team of seasoned industry veterans, poised to grow your impact in the field. Find all open positions at KindLending.com/careers and submit your confidential resume today or connect with SVP of National Retail Sales, Orlando Gutierrez to learn more! Rates up? Margins down? Made your money and thinking it’s time to sell? A well-capitalized Private Equity Firm is looking to acquire an IMB with agency approval(s). For serious inquires and a confidential conversation with our leadership team, email Chrisman LLC’s Anjelica Nixt who will forward your note. The last 2 years have been record-setting for companies and originators but what is your current outlook? Is your current company prepared for the next decade? Is your company having layoffs or making sweeping changes? Will you be able to retire at your current company? “Success can lead to complacency, and complacency is the greatest enemy of success.” – Brian Tracy. Sometimes the best path forward is the one you haven’t considered. We provide our branches access to raw pricing and a low transparent corporate margin, and we focus on our managers continued growth not their prior successes. We’re prepared for today’s market as well as the next decade. Our transition plan is simple and easy to execute. Whether rates go up or down there is a way to continue to grow and be one step ahead of your competition. Contact Anjelica Nixt to schedule a confidential conversation and find out how we help leaders grow. Customer satisfaction and new business shouldn’t be put on the backburner when borrowers are faced with higher rates. With New American Funding, you can help borrowers buy today with confidence, knowing that if interest rates drop at any point in the next five years, you can refinance eligible customers into a lower rate with no lender fees and no appraisal fee. It’s part of the company’s 5 Year Rate Protection Pledge, and it’s available for you to offer when you become a loan officer with one of the nation’s leading independent mortgage companies. New American Funding believes in taking care of its customers – now and in the future. In fact, the company services 97% of its loans in-house, keeping you in front of clients long-term. If you’re ready to join the company named #1 in Customer Satisfaction among Mortgage Servicers (J.D. Power 2022), contact Jordyn Dexter today! 855-458-2023. EOE Broker & lender products, services, and software____________________________________________________ Western Alliance Bank’s Specialized Mortgage Services group provides access to a team of mortgage financing and treasury management professionals that work closely with business partners to define needs and custom tailor debt and deposit solutions. Treasury management and liquidity solutions help Independent Mortgage Bankers find efficiencies in the current environment, and we have a core competency and a proven track record with escrow and operating accounts. Our clients receive best-in-class service with high-speed account opening and implementation from a dedicated service team. To learn more about how our treasury management solutions can add efficiencies to your cash flow cycle and to inquire about traditional warehouse lending, MSR financing, note financing and other mortgage finance products, please contact Jennifer Schachterle (720) 261-5774, Mark Short (469) 702-6212 or Chris Martin (480) 341-5483. Western Alliance Bank, Member FDIC. In continuing to provide ways to grow happiness for our customers, TMS has proudly been named the new Master Servicer for the Communities First Ohio (CFO) down payment assistance program. It will open for reservations on December 1, 2022. CFO makes mortgages more accessible for first-time homeowners in Ohio by providing first mortgage financing, down payment, and closing costs assistance. The guideline eligibility under TMS will improve for all government loan programs, including reducing FICO scores down to 620, eliminating DTI overlay, and providing manual underwrites on VA and USDA loans. Curious to learn more? Hilltop Securities and TMS are hosting a webinar on Wednesday, November 2 at 2pm ET to discuss the program enhancements and procedures with TMS. Click here to add the webinar on your calendar. If you’re not an approved TMS lender, contact TMS. To become a participating lender of the Communities First DPA program, click here. Looking to market something no one has in this industry? Optimize Compliance has the Solution. CE is required and this is the season, but it is a MUST HAVE software that cuts costs while also guaranteeing compliance and making your job easier. It is a MUST HAVE to reduce hours of duplicative training. There is NO other option to our product outside of excel sheets and manual processes. We truly help our clients. The testimonials are here: IMB Testimonial Videos Case studies and details are here. Companies who talk to us will receive a deep discount for 2022. Contact Dave Olchek for details. ORDER DISCOUNT NMLS CE HERE to get started and we will work with your organization to reduce training in 2023. “Lakeview Correspondent is pleased to announce the addition of Jumbo ARM’s to our popular Bayview Jumbo AUS! Program guidelines and pricing for the new 5/6, 7/6 and 10/6 SOFR ARMs, and 15 year fixed rate term, are available on the Lakeviewcorrepondent.com portal. Reach out to your Sales Contact today to learn more.” Jack-o’-lanterns are a hallmark of Halloween in America, but did you know the tradition of carving pumpkins actually originated from an Irish folktale involving turnips? It just goes to show how great things can be made even better when we share ideas. On November 1 at 1 PM ET, Sales Boomerang + Mortgage Coach’s Alex Kutsishin and Dave Savage are inviting Legacy Mutual Mortgage’s Shawn Kaplan to share his best ideas for using Mortgage Coach to educate borrowers, negotiate better deals and generate leads for his team and its referral partners. Carve space in your schedule for this illuminating webinar! FHFA, Fannie, Freddie, conventional, conforming shifts____________________________________________________ The FHFA announcements typically make their way down through the Government Sponsored Enterprises (GSEs), which then make their way through correspondent and wholesale investors, and through lenders to borrowers. Yesterday the FHFA came out with guns blazing. FHFA Announces Targeted Pricing Changes to Enterprise Pricing Framework has been posted. FHFA Publishes New Uniform Appraisal Dataset (UAD) Aggregate Statistics Data File has been posted. FHFA Announces Validation of FICO 10T and Vantage Score 4.0 for Use by Fannie Mae and Freddie Mac has been posted. Pennymac posted announcement 22-66 regarding aligning with the Fannie Mae Updates announced in SEL-2022-08 and Freddie Mac Bulletin 2022-18, with the exception of updates on remote online notarization and community land trusts. Take advantage of your prefunding process to strengthen quality control (QC), reduce repurchase risk, and improve loan manufacturing quality. The Fannie Mae October Quality Insider focuses on tips and opportunities for leveraging your prefunding QC. Explore more Fannie Mae topics. As part of its technology’s loan purchase eligibility assessments, Freddie Mac will increase homeownership opportunities by including a review of a borrower’s bank account data to identify a history of positive monthly cash flow activity. This industry-first innovation will be available to mortgage lenders nationwide through Freddie Mac’s automated underwriting system, Loan Product Advisor® (LPASM), beginning November 6, 2022. Lenders and brokers can obtain the financial account data from designated third-party service providers using the same automated process they currently use to verify assets, income (using direct deposit), employment, and on-time rent payments via a single report through LPA’s asset and income modeler (AIM). Wells Fargo Funding updated benefits to borrower compliance requirements for conventional Conforming and Non-Conforming Prior Approval Loans. ARM to fully amortized fixed benefit, extend the fixed term of an ARM benefit, non-court-ordered removal or buyout of a borrower benefit, effective November 14, 2022. View Newsflash C22-042 for more information on borrower benefits plus Compliance with AIR reminder and Seller Guide update on Loss payee clause notifications for all Loans. Fairway Wholesale Lending announced the removal of overlays on tax transcripts and will follow Agency guidelines, effective immediately. Refer to guidelines in DRIVER for more information. Capital markets_________________________________________________ The main headline yesterday was the FHFA (the government agency that oversees Freddie Mac and Fannie Mae) announcing that some upfront fees would be eliminated for several borrower categories and affordable mortgage products and a targeted upfront fee increase for most cash-out refi loans (for Feb 2023 delivery). That is good news (except for cash out mortgagors), but rates continued their grind higher yesterday, even with the release of preliminary U.S. Manufacturing and Services PMI readings for October showing a deepening contraction. U.S. business activity contracted in October for a fourth-straight month as concerns about inflation and sluggish demand weighed on the outlook. Today’s calendar is under way with Philadelphia Fed non-manufacturing for October. Later this morning brings Redbook same store sales, followed by August home price indices (Case Shiller and FHFA), October consumer confidence, Richmond Fed manufacturing and servicing, and remarks from Fed Governor Waller. Lots of mortgage bankers will be looking at the FHFA House Price Index for August and trying to figure out what the new conforming loan limits will be after the September index is released next month. We begin the day with Agency MBS prices better by .125-.250 and the 10-year yielding 4.15 after closing yesterday at 4.23 percent. On the outskirts of a small town, there was a big old pecan tree just inside the cemetery fence. One day, two boys filled up a bucketful of nuts and sat down by the tree, out of sight, and began dividing the nuts. “One for you, one for me, one for you, one for me,” said one boy.Several dropped and rolled down toward the fence. Another boy came riding along the road on his bicycle. As he passed, he thought he heard voices from inside the cemetery, so he slowed down to investigate. Sure enough, he heard, “One for you, one for me, one for you, one for me…” He just knew what it was. He jumped back on his bike and rode off. Just around the bend he met an old man with a cane, hobbling along.“Come here quick,” said the boy. “You won’t believe what I heard! Satan and the Lord are down at the cemetery dividing up the souls!”The man replied, “Beat it kid, can’t you see it’s hard for me to walk.”When the boy insisted though, the man hobbled slowly to the cemetery. Standing by the fence they heard, “One for you, one for me. One for you, one for me.”The old man whispered, “Boy, you’ve been tellin’ me the truth. Let’s see if we can see the Lord!” Shaking with fear, they peered through the fence, yet were still unable to see anything. The old man and the boy gripped the wrought iron bars of the fence tighter and tighter as they tried to get a glimpse of the Lord. At last, they heard, “One for you, one for me. That’s all. Now let’s go get those nuts by the fence and we’ll be done!”They say the old man had the lead for a good half-mile before the kid on the bike passed him.
