Today’s podcast is presented by Capacity. Capacity is an industry leader in mortgage automation that empowers mortgage professionals with instant knowledge and automated workflows. Thanks to 24/7 service, clients receive a superior experience throughout the entire loan process. Capacity connects apps, mines documents, captures tacit knowledge, and automates processes through a mobile-friendly chat interface.
When I was a kid, I did things like eat Wonder Bread. I still enjoy a McDonald’s cheeseburger on occasion. As a kid I remember sharing a Coke with the kids on my street between hoops games, having a bite of a buddy’s cookie, or merely rinsing off a scratch with hose water. Now there are some that tell you you’ll die from doing any of those. Things are always in transition. There’s the possibility of the transition from WFH (work from home) back to the office, or concern by some about having the right office chairs at home if you’re going to stay there. It is still over a month until Memorial Day, but companies are already wondering, given that July 4 is on a Sunday this year, whether to give employees Friday off, Monday off, or neither. (Stock and bond markets, as well as the post office and Federal Reserve, are closed on Monday the 5th.) It appears that the workforce is in transition: Welcome to the YOLO (You Only Live Once) Economy! (The audio version of today’s commentary is available here and is sponsored by Capacity, a mortgage automation platform that works in parallel with your LOS to support your borrowers and staff.)
Jobs & transitions
“All Loan Officers need closure. That’s why JMAC Lending works fast and furious to deliver purchase loans for brokers with one-day turn times, 20-day close, and .250 BPS off Conforming, Jumbo, VA, and FHA purchase loans locked by May 28. Speed, service, and price is contained in three exceptional Jumbo Loans with loans to $2.5M, and options such as unlimited cash-out to 80% LTV, to $1.5M with no MI, and up to 10 Financed REOs. With purchases as our priority, we never get tired of repeating those three magic words: Clear to Close. Contact [email protected] and visit www.jmaclending.com. 23+ years of dedicated service to mortgage brokers. JMAC Lending is actively hiring top producing Sr. Account Executives to join our industry-leading wholesale lending group in AZ, CA, CO, FL, GA, NV, NM, MI, MN, NC, TX, and UT. We’re growing at a record rate. Contact JMAC HR or visit JMAC Careers.”
“Plaza Home Mortgage, Inc., one of the nation’s largest wholesale lenders, is looking for motivated Wholesale Account Executives to join our Miami and Orlando teams in Florida. At Plaza, you’ll have access to the products and programs you need to succeed (government, conventional, jumbo, renovation and even reverse), a strong book of existing business, and deep client relationships. Everything you need to engage with and grow your accounts. In addition, Plaza offers extensive training and career development to help you invest in furthering your career. Not to mention best in class medical and dental benefits, generous 401k matching and an outstanding rewards and recognition program. Step into a prime opportunity: be a part of an amazing team of proven sales professionals and leverage Plaza’s culture and resources to make a difference. For more information, email us.”
Video: Movement sends WW2 POW hero to West Point. From humble beginnings (barefoot behind a plow in rural North Carolina) to a 19-year-old storming the beach at Normandy weighed down with 100 pounds of gear, followed by 10 months in a Nazi prison camp, PFC Harold Frank kept his focus on putting one foot in front of the other, faithful that those steps would lead him home. This 96-year-old recipient of both the Silver Star and the Purple Heart always dreamed of visiting West Point Academy, and last week Movement Mortgage and its Movement Military initiative helped charter his private flight to West Point so he could share his story with our next generation of cadets. Watch the video here, and bring a Kleenex. This story has nothing to do with mortgages, but it’s a timely reminder to us all that it’s never too late to pursue a dream or help someone else reach theirs.
Fairway Independent Mortgage Corp. is looking to fill a Vice President Secondary Marketing - Loan Sales / Pooling position to support the company’s growth. This position will be responsible for overseeing a team of analysts, primarily conducting best execution analysis, issuing/pooling MBS, and managing co-issue servicing transfers. The position will be located in Lisle, IL, but is open to remote for the right candidate. Fairway is a top independent mortgage company employing more than 10,000 employees, with a strong focus on purchase business and funding more than $66 billion in 2020. Please send resumes to Chrisman LLC’s Anjelica Nixt for forwarding.
Congratulations to 40-year vet Suzy Lindblom who has become Kind Lending’s Chief Operating Officer. She will be working in partnership with Yvonne Ketchum, President of Kind Lending, in overseeing many of the corporate departments as well as working with Kind’s Retail and Joint Venture divisions, and building out and implementing new loan product offerings and operational service models in all of the lending divisions.
Lender services and products
The DocProbe Story: Our People! DocProbe’s revolutionary process and technology take much of the credit for the efficiency and accuracy needed to retrieve, process and deliver millions of Trailing Documents to investors each year. But it’s the people behind the wheel and in the trenches that are the driving force in making it happen. CEO Steven Rimmer’s decades of experience in the residential mortgage market translates into a service and workforce that understands the needs of lenders. COO Nick Erlanger, with a hybrid background in tech and real estate, is the driving force that powers our efficiency and innovation. SVP, Engineering Menachem Locker’s startup background gives us the depth and leadership we need to build out our platform. DOO/General Counsel Isabel Baumgarten’s Big Law background keeps compliance and security as the highest priority, and Operations Manager Gitty Bergstein keeps the entire process and teams running like clockwork. Meet us at www.docprobe.net or reach out to Nick to learn more.
Responding to constantly shifting market conditions, regulatory changes, and consumer expectations quickly is easier with momentum on your side… And we know where you can find it. At Forward, Blend’s virtual event, you can learn from industry leaders, Blend executives, and ecosystem partners as we discuss how we can move into the digital future of lending together.Reserve your spot at the May 18-20 summit today.
We all know the concept behind applications like PayPal, Venmo and CashApp - they make online money transfers quick, easy, painless, and secure. So why are mortgage bankers still collecting their upfront fees by writing down payment information the old-fashioned way? What if there was a secure application that sent borrowers a text message with a link to pay their fees? There actually is, and it’s called Fee Chaser by LenderLogix. Loan officers can click a button in their LOS to initiate the text message, and once the payment is received everyone gets a receipt and it’s automatically uploaded to the eFolder. Current Fee Chaser users see a 5-minute turnaround time between the request and the receipt confirmation - work smarter, not harder people. Schedule a demo with the LenderLogix team to start saving time and simplifying your process.
Fact: Nine out of ten consumers want an omnichannel experience with seamless service between communication methods. Another fact: Businesses that adopt omnichannel strategies see 91% higher YoY customer retention compared to those that don’t. The point? Businesses that offer omnichannel marketing excel at attracting consumers and converting them into brand loyalists. If you’re worried that an omnichannel brand experience is too complicated or expensive for your busy organization to execute, there is good news. Top of Mind’s Surefire CRM and marketing automation platform is packed with engaging content and ready-built automated workflows that let you get that sweet, omnichannel ROI from day 1. Request a demo to take Surefire’s mortgage marketing capabilities for a spin.
Northpointe Bank Correspondent Lending is pleased to announce significant enhancements to its Expanded Portfolio (Non-QM) programs. Guideline expansion includes interest-only options and 40-year terms, LTV ratios up to 90%, debt-to-income ratios up to 55%, and credit scores as low as 580. Now is the time to provide your underserved borrowers with solutions from Northpointe’s Expanded Portfolio. Prime Non-Agency product focuses on higher credit borrowers looking to take advantage of Non-QM features such as alternative doc options like bank statements and asset depletion, or for financing for non-warrantable condos including Condotels. Expanded Access and New Start products help borrowers with seasoned or recent credit events. Investor Cash Flow offers financing for investment properties utilizing the debt service coverage ratio. Programs available in all 50 states, Northpointe Bank provides tailored solutions to maximize your profitably and help your business grow. View program details for more information or email us at [email protected].
As we shift away from a big refi boom, there’s an increased urgency for lenders to deploy new growth strategies to successfully pivot to a purchase market. In large part, this includes incorporating mortgage servicing into a diversification playbook. Listen in to Total Expert Founder & CEO Joe Welu and The Basis Point Founder Julian Hebron for immediate steps you can take to deliver a seamless customer experience from originations through servicing.
A “blue moon,” which refers to the second full moon in one month, is rare, occurring once every 2 to 3 years. According to the FHFA, the lifespan of the average mortgage is 3 to 5 years. Since originators can’t afford to sit on their hands for up to five years at a time, they naturally occupy themselves with new customer acquisition, sometimes at the expense of deepening existing relationships and building customer loyalty. In fact, mortgage lenders often retain just 18% of their borrowers on future mortgage transactions. Recently, Sales Boomerang, the #1 automated borrower intelligence and retention platform, studied 19 lenders and their customer retention strategies. Download this free white paper to find out what those 19 lenders have in common and how they’ve recorded an average three-year refi retention rate of 59.33%.
Investors react to FHA & VA changes
FHA announced the publication of the Servicing and Loss Mitigation section (Section III) of its Handbook 4000.1, updating and strengthening FHA’s loss mitigation approaches for struggling borrowers while streamlining key requirements for servicers. Details are available in this Press Release. The Servicing and Loss Mitigation section also incorporates policy and process improvements identified by FHA, and through industry feedback received from its July 14, 2020, posting on the Single Family Housing Drafting Table. The changes in this section are not highlighted as many sections have been simplified and moved. Mortgagees should review the updated Servicing and Loss Mitigation section in its entirety. A redline version of Handbook 4000.1 is available on the Single Family Housing Policy Handbook 4000.1 Information page on hud.gov to aid in the review.
loanDepot Wholesale/Correspondent Weekly Announcement discusses various topics including its new program - VA High LTV Cash-Out, the rescinded Temporary COVID-19 Guidance in VA Circulars, multiple updates from Freddie Mac, and DTI Expansion for Cash-Out Refinances on FHA Fixed / ARM product.
FAMC has removed the temporary COVID-19 guidance issued during 2020 on FHA Products Cash-Out Refinance - Non-Delegated. Standard FHA Cash-Out policies will apply.
Mountain West Financial® posted Wholesale Bulletin 21W-028 regarding VA’s expanded eligibility for the Department of Veterans Affairs (VA) home loan benefits for certain members of the National Guard and provides guidance on the process for obtaining a Certificate of Eligibility (COE).
LoanStream Wholesale’s MaxONE is the First DPA without income limits. Programs and Highlights include FHA DPA, FICO Down to 600, No Income Limits, Minimum Overlays.
Plaza Home Mortgage has resumed offering VA Renovation loans, available for purchase or refinance, and allows for up to $50,000 in additional funding toward remodeling, renovations and repairs.
The extension of COVID Tolerances on Government transactions is addressed in the Flagstar BankMemo 21031.
Broadly speaking, U.S. economic data continued to expand towards the end of March and into April with the exception of existing home sales which were hampered by lack of supply. New home sales spike 20.7 percent in March to an annual rate of 1,021,000 units, the highest rate since August 2006. Builders remain optimistic but face significant headwinds due to materials costs and extended lead times for orders. Existing homes declined 3.7 percent in March as inventory was at a very tight 2.1 months’ worth and total inventory was 28.2 percent below the level from March 2020. The tight inventory was partly responsible for pushing prices up 17 percent from one year ago. Meanwhile purchase mortgage applications increase 5.7 percent for the week ending April 16 and were 50.8 percent higher than a year ago as the average rate for a 30-year fixed eased to 3.20 percent. The FOMC meets this week and while there are not expected policy changes, the market will looking for the committee’s read on recent inflation trends in the statement as well as in the minutes when they are released in mid-May.
Normally, there isn’t much Treasury or rate movement preceding a Fed meeting, and the start of this week was no exception. No changes in policy are expected out of this week’s Federal Open Market Committee get-together, which means the Fed should remain accommodative. But bond prices and rates could be swayed if the statement is unusually positive on the economy.
The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 1 bp to 4.49 percent of servicers’ portfolio volume in the prior week as of April 18. The marginal drop means that according to MBA’s estimate, 2.25 million homeowners are still in forbearance plans as the numbers continue to slowly improve.
Today’s economic calendar begins shortly with Redbook same store sales for the week ending April 24 and will be followed by home prices from Case-Shiller and FHFA, both for February. After that, markets will receive April’s consumer confidence figures, Richmond Fed manufacturing and services and Dallas Fed Texas services. There will be a $62 billion 7-year Treasury note auction in the afternoon and day one of the two-day FOMC meeting also gets underway. Today sees the last MBS purchase operations on the current schedule at up to $5.3 billion 2 percent and 2.5 percent before the Desk releases a new purchase schedule covering the April 28 to May 13 period in the afternoon. We begin National Babe Ruth Day with Agency MBS prices down/worse s smidge and the 10-year drifting up to 1.58 after closing yesterday at 1.57 percent.
I’ve been writing this daily commentary for many years, and I’ve always ended it with a joke or something humorous or interesting. I figure it has added up to several thousand jokes over the years, most of which have come from readers. If I think the joke is a bit racy, I always put a warning there, but people apparently ignore the warning and read it anyway, which I find troubling. One of the jokes last week may have offended some people who read it despite the warning. My goal is to offer a little lightness, not to offend, so apologies are due to anyone who found the joke offensive. Over the years, I’ve received hundreds, if not thousands, of positive email comments about my jokes, and barely a handful from those who read past a warning and found any offensive. Once again, I apologize if you found it offensive. And if you have an issue, contact me directly.