Scholars have long pondered if Myrtle Beach, South Carolina was named after my cat Myrtle, or vice versa – the answer is lost in the shrouds of time. Regardless, if you wonder what $3.4 million can take down in Myrtle Beach, the answer is “the most expensive house for sale.” Of course it’s on the ocean, and you can bet its occupants shudder every time a large iceberg calves in the Arctic. Potential buyers may be hesitant given this story in the Washington Post about how beachfront real estate is losing its luster due to erosion and rising sea levels. Not to mention volcanoes, earthquakes, hurricanes…
Servicing Seller Wanted, and an Offering
A unique pool of servicing rights is for sale. The pool is $140 million (approx. 2900 loans) of 100% fixed rate city and county, second mortgage affordable housing down payment and closing cost loans. The loans carry 0% interest and an average maturity of 15-20 years. The loans earn an annual income of $600,000 which includes monthly servicing fees, new loan setup fees, late fees, and ancillary income. It consists of loans in 15 states (FL, GA, NJ, OH, IN, KA, MO, TX, LA, CA, OR, AZ, MS, PA, and NC), with varying rates (non-profits 0%, local governments 0-3%, private investor varying), with 3-5% internal growth rate/year. Lenders perform all foreclosure and bankruptcy work – there is no delinquency work past initiation of the foreclosure/judgement processes by the lender’s attorneys; there is no work on bankruptcies other than securing basic documents for state audits. Interested parties should send me a note for forwarding to the principal; specify opportunity.
In this contracting market, a Fannie, Freddie and Ginnie approved lender has been acquiring bulk loans and MSR’s from banks and credit unions. If you are a small bank or credit union and you wish to free up some lines of credit by selling off a small bulk or MSR, please reach out to me, Rob Chrisman, to forward your confidential note (specify opportunity).
Register for MountainView’s next MSR Asset Monthly Snapshot webinar on Monday, September 10th from 10-10:30AM PT. In a 30-minute presentation, “we will share insights gained from our valuation analysis, risk management and transaction advisory work in August. You’ll obtain critical data points and commentary for your month-end reporting and your strategic decisions.
IMN’s inaugural West Coast Residential Mortgage Servicing Rights Forum is scheduled for November 5-6 at the Omni Hotel in Los Angeles, CA. The East Coast edition of the event, now in its 5 year, is annually attended by 500-600 delegates, including, a “who’s who” of MSR Buyers/Investors (Hedge Funds, PE Funds, REITs), Independent Mortgage Bankers/Originators, Servicers, and Service Providers. Contact Stacey Kelly for info.
Is the selling, and therefore purchases, of servicing going to grow? Inside Mortgage Finance reports that there were $97 billion of bulk MSR transfers in 2Q18, bringing the year-to-date volume to $193 billion. IMF thinks it will increase. Advisors are reporting a lot of buying interest with large banks back in the buying market (though still not buying Ginnie MSRs). And as every non-depository lender knows, selling MSR portfolios to improve liquidity positions in a difficult origination environment is commonplace. The publication notes that counterparty risk and the strength of the selling is something that is becoming a greater focus: think liability releases and expect banks are only buying clean production.
Trainings and Events
On Saturday, October 20, more than 1,500 independent mortgage brokers, loan originators and processors will join at the AIME Fuse 2018 National Conference to learn from industry experts about how they can access the best technology, originate more loans each month and become a marketing expert for their own business. AIME Fuse will unite the nation’s most passionate mortgage professionals around a singular focus: to celebrate and enhance the value of independent mortgage brokers. This is the inaugural national event for the Association of Independent Mortgage Experts (AIME) and will be held at Bellagio Las Vegas. Use code FUSEEARLY18 to register for only $75 ($125 value) until August 31st. Register for AIME Fuse 2018 here.
Kurt Reisig, Chairman of American Pacific Mortgage, invites you to its 2018 Fall Symposium: The Power of You. The Symposium will be held in San Diego on September 13-14 at the Marriott Marquis. The highly anticipated event is crafted specifically for mortgage originators and branch managers, so they can interact and collaborate with leadership, top producers and other industry leaders. Come join us as our guest and discover first-hand how APM operates and commits to supporting our originators with the tools, inspiration and resources to deliver exceptional customer experiences to sustain and grab market share in 2018. Click here to register or contact Dustin Block (303.378.3166).
CMG Financial’s Wholesale Division is hosting a cross-country seminar series to introduce mortgage professionals and their referral partners to the All In One LoanTM. Next stop, Irvine, CA on Sept 18th and Bellevue, WA on Sept 19th.
FAMC has published its September 2018 Wholesale “Customer Training Calendar”. The September month’s calendar offers a variety of training opportunities such as Seizing Market Share, Fannie Mae and Freddie Mac: Understanding Your Options, Today’s 3% Down Payment Options, How to Use Instagram to Grow Your Business and Detecting and Avoiding Fraud in Loan Files.
Plaza’s September training calendar has posted and is available for registrations. Remember, if you can’t make it to a webinar, Register and Plaza will email you the recording.
Join the expert, Phillip Schulman, Partner at Mayer Brown LLP, for a RESPA Roundup webinar on September 12th. Get educated on co-marketing, compliance and enforcement.
The 31st annual NEMBC conference is September 12th-14th held at Gurney's of Newport (Formally the Hyatt) in Newport RI. Attendees can register for the full 3-day conference or for a single day. Full registrations can attend all conference events except for the NEMBC golf tournament which is a separately ticketed event. Click here for the full list of programs and registration details.
Join MBA ST. Louis on September 13th for a full day of learning, networking and discussions in the mortgage industry.
Register for the MMLA 2018 Compliance Seminar on September 20. Don’t mis out on the opportunity to gain preparedness tools to stay compliant and keep your data secure.
The Professional Mortgage Women (PMW) is offering an Educational and Networking Event on September 27th in Bethesda, MD. with keynote speaker Marcia M. Davies, the Chief Operating Officer for the Mortgage Bankers Association (MBA) and founder of mPower. This event is being cohosted by the MBA/MW and the MMBBA.
Capital Markets
Friday was another low volatility day as the U.S. 10-year closed +1bp to 2.83%. In Fed news, Mr. Powell's speech fit largely in-line with the market's view of monetary policy and paved the way for two additional rate hikes this year. The Fed Chairman said he believes that increasing rates in gradual fashion will remain appropriate if growth stays on its current path, but in this speech did not discuss trade and did not talk about the expected impact of Fed policy on emerging markets.
The final week of August kicks off with a light data calendar consisting of just the Chicago Fed National Activity Index for July (+.13). Things pick back up as we progress through the week, including consumer confidence, Case-Shiller HPI, and advanced economic indicators on Tuesday; preliminary Q2 GDP and Pending Home Sales Index on Wednesday; personal income, consumption and PCE price indexes on Thursday; winding down on Friday with Chicago PMI and the final consumer sentiment results for August. We start the week with rates up slightly from Friday’s close: the 10-year is yielding 2.83% and agency MBS prices worse nearly .125.
Lender Products and Services
It’s called “America’s most efficient home finance program.” The All In One LoanTM from CMG Financial is the unique product set to disrupt the way we think about mortgages and money. This rate-resistant product allows borrowers to save tens of thousands of dollars in interest payments and pay off their mortgage faster, without changing spending habits. As working households across the country continue to struggle to save enough for critical financial needs like college tuition for children, caring for elderly parents, and their own retirement, this loan could be exactly what you need to reignite production – here’s your chance to learn more. CMG Financial’s Wholesale Division is hosting a cross-country seminar series to introduce mortgage professionals and their referral partners to the All In One LoanTM. Next stop, Irvine, CA on Sept 18th and Bellevue, WA on Sept 19th. To see the schedule of training events and webinars visit: http://cmgfi.com/wholesale/aio or email AIO@cmgfi.com.
"I was in an Uber the other day and I had the thought: I wonder if there is an "Uber” for Mortgage Leads? It should be simple and easy - where you can pull up an app, punch in some information and within minutes you have a borrower who wants to talk to you about their mortgage. Turns out there is such a thing - MortgageLead.com. Free app to download and you can choose from any number of options like real-time leads, aged leads, refinance, purchase, etc. What will people come up with next?"
Can measuring and improving borrower satisfaction impact your company’s valuation? That’s the question asked by Mike Seminari, director of STRATMOR Group’s MortgageSAT Borrower Satisfaction Program in the August MortgageSAT Tip. The mortgage Mergers and Acquisitions market is heating up for both Banks and for Independent Mortgage Bankers, and the way lenders monitor and manage borrower satisfaction could have a big impact on where they stand when the dust settles. Whether your company does a deal or not, understanding how to compete with the big lenders as they get bigger is important. Survival of the fittest means not only showing profitability, but also showing highly satisfied borrowers who are likely to provide repeat and referral business, a source of future income. For three steps you can take now with your borrower satisfaction efforts to improve your company’s perceived value see the August MortgageSAT Tip.
Jobs, and Employment News
"Veterans Choice Home Loans is looking to add two new VPs of sales. One candidate would head the company’s in-house call center purchase platform and the other its refinance initiative. After a two-year commitment to building its lead distribution platform the company is experiencing robust growth and in need of two proved leaders with the ability to recruit and hire sales teams well versed in VA products and guidelines. Veterans Choice is open to building these centers anywhere in the country for the right candidates who can attract banker teams with expertise in servicing veteran borrowers home loan needs. In additions sales Leaders of any level with VA experienced teams are encouraged to contact us for a confidential discussion about other open roles at veteran’s choices existing locations. Please email Mike Brigagliano for a private consultation."
Caliber Home Loans, Inc. was recently ranked #3 non-bank mortgage lender for the first half of 2018, by Inside Mortgage Finance. It was ranked #7 among all top 50 mortgage lenders. Caliber’s overall volume during this period exceeded $20 billion – a 9.9% increase since Q2 2017. This annual growth was higher than the six lenders ranked above Caliber, and only one of two lenders among the seven that had growth. Caliber has no plans of slowing down and is hiring Loan Consultants in markets across the country. Join a purchase-driven lender that fosters the growth of its producers through proprietary technology, distributed operations, and a servicing portfolio that creates customers for life! Contact a Divisional Vice President in your area or email SVP of Recruiting Jeremy DeRosa today.
KBHS Home Loans has a fantastic career opportunity in San Antonio for top-notch loan officers! In addition to your existing clients, our partnership with KB Homes provides a steady stream of potential customers. With many new developments planned, this partnership is positioned for accelerated growth and will deliver a seamless building and financing process for clients. Under the branch leadership of Melony Crawford, loan officers will have access to a substantial list of flexible products, superior fulfillment services and the technology your customers crave. Quick, convenient and collaborative, the KBHS digital mortgage offers a customer service experience like no other. These marketing tools provide you with a seamless way to acquire and communicate with your customers. Join our team of winners! Contact Brian Corder (612-405-7100), Craig Chapman (919-622-0726) or Melony Crawford (210-598-7928).
On the flip side, Wells Fargo is doing what hundreds of lenders are doing around the nation, but has more publicity: laying off 638 mortgage employees. The cuts are concentrated in Orlando, Northern California, Colorado Springs, and Charlotte. The affected employees will receive pay and benefits through October 21. (As a reminder, anyone displaced from their jobs can post their resume for free at www.LenderNews.com, and employers can view them for a nominal fee - contact Anjelica Nixt for details.)
