As the 1,400 or so registered participants in the MBA’s Secondary Marketing conference head home, bleary-eyed, the tag-line for the conference could have been, “Just Do It Easier, Better, Faster, Cheaper… the Order is Up to You.” Of course, the devil is in the details. My cat Myrtle hasn’t weighed in on the GSE reform efforts, one of the main topics of the conference, although the MBA is pushing hard for it. but plenty of people believe it may have to wait in line behind tax, health care, immigration, foreign policy, and infrastructure issues facing the administration, regardless of how necessary it is. Support is important!
Lender news
Stonegate Mortgage Corporation announced that its stockholders overwhelmingly approved all proposals relating to the pending acquisition of Stonegate Mortgage by Home Point Financial Corporation at a special meeting of Stonegate Mortgage's stockholders.
Another publicly held mortgage company moved ahead with its rebranding, basically two years after beginning it. Nationstar announced that it would officially rebrand to Mr. Cooper. "The company believes people should expect more from the mortgage industry and is setting a new standard with a redefined purpose to keep the dream of homeownership alive and make the process less worrisome and more rewarding. To earn customer business - and trust - all 7,700 team members at Nationstar will become Mr. Cooper, the embodiment of the kind of person who always goes the extra mile for a customer."
The Conference
I had the opportunity to spend time at the MBA's Secondary Conference in Manhattan this week. What's new? Really new? Not much. As an industry, we're dealing the same topics we were one year ago, two years ago, three... And we will be for years. Per Bob Ryan, with the Federal Housing Finance Agency, an overhaul of U.S. mortgage agencies Fannie Mae and Freddie Mac might take longer than five years, depending on how severe the proposed changes are. If there is a "very radical" reform of the two government-sponsored enterprises, "we need more time" for the transition, Robert Ryan, special adviser and acting deputy director at the FHFA.
The MBA and Independent Community Bankers Association have both released their thoughts on the GSEs (basically Freddie and Fannie). Last month the MBA issued a report recommending the two agencies should be restructured as primary loan guarantors, together with a group of publicly held, regulated mortgage guarantors. The government is open to something - eventually. Treasury Secretary Steve Mnuchin repeated his call for the reform of Fannie and Freddie at the Milken Institute Global Conference and the government is expected to release a plan by 2018. Congressional support is critical, but how much political capital does Congress want to spend pushing GSE reform ahead of tax reform, budget questions, health care plan issues, immigration changes, infrastructure spending, housing reform, FHA stabilization, and the like?
That being said, MBA president Dave Stevens noted, "We have come too far - let's move forward. "Both Congress and the Administration are pursuing GSE reform legislatively--that is a fact," Stevens said. "The teams are on the field and the game is in play; the choice is to either stand on the sidelines and protest or get in the game. MBA plans to get in the game to help craft a solution that works for all lenders, consumers, and the housing finance system. There is no other option but to engage and lead on this subject." Stevens called GSE reform "the last piece of unfinished business before we can move forward with true housing recovery" and noted that on Capitol Hill, within the administration and among major stakeholders, activities around housing run high showing a lot of promise for housing finance reform.
Capital Markets
The Treasury market is working to develop new infrastructure and methods in order to embrace new technology and meet the challenges of fluctuating interest rates, according to a report from Celent. Apparently alternative business models are prompting unprecedented changes to Treasury trading.
Rates: up a little, down a little. Yesterday was down a little, in terms of rates, attributed to slow auto & truck sales and oil prices sinking. The treasury market closed at the session highs with the 10-year yield back below 2.30% and rallying more after the 3PM ET future's close, the traditional "close." And ThomsonReuters reported, "For today's session, retail MBS volumes were above recent averages and biased to modestly better selling on net by the close." The 10-year T-note's price improved .250 (to close with a yield of 2.30%) while the 5-year and agency MBS improved .125.
My flight out of NY is a little on the early side, so I don't know where the bond markets will be yet. But coming up are the MBA's reports on applications, April ADP Employment Change at 08:15 ET, the quarterly refunding announcement which will include auction sizes for next week's new 3- and 10-year notes and 30-year bonds, and the FOMC rate decision at 2PM ET. The statement is not expected to contain any MBS reinvestment tapering language with the minutes potentially providing more clues on their current thinking.
Sellers Wanted, Job Openings, CRM
PRMG opened 14 new retail branch locations in the first quarter of 2017! "Along with the drive and ambition to bring the American Dream of Homeownership to all cities across the country, PRMG has expanded its footprint in Mesa, AZ; Coconut Creek, FL; Debary, FL; Miami, FL (two locations); Orlando, FL (two locations); Atlanta, GA; Oak Brook, IL; Schaumburg, IL; Timonium, MD; Fair Haven, NJ; New Brunswick, NJ; and Anderson, SC. PRMG is devoted to growing our retail platform and is always looking for Motivated Loan Originators to support our mission to being "Progressively Better in All that We Do". Voted No. 1 of the 50 Best Companies to Work for in America 2015, No. 1 Best in the Desert 2017 and TOP 25 of 100 Mortgage Companies in America! PRMG employs over 1,300 people! If you're ready to make a change for the better and join a top-tier team then we need to talk!" Contact Chris Sorensen (909.262.0452).
In TPO job news, "Flagstar Bank, with 30 years in the mortgage biz, is hiring experienced account executives who can cover accounts through their life cycle, from broker to correspondent. Flagstar's focus is on the following markets: WA, CO, TX, Philadelphia / eastern PA, Los Angeles County, OK, AR, IN, KY and Northern CA. Flagstar has been a consistent leader in the wholesale and correspondent channels for decades. The company offers a highly competitive compensation and benefits package and makes it easy for serious professionals to transition. Flagstar clients enjoy an industry-leading technology platform and an extensive product menu including Fannie Mae, Freddie Mac, FHA and VA. The company just introduced a one-time close construction and proprietary jumbo product. In addition, Flagstar AEs can market its warehouse lending and subservicing offerings. If you are interested in learning more about Flagstar, please email Jamie Janssen or call (248) 312-6416.
And ResMac continues its national expansion and seeks seasoned Wholesale Account Executives, with an active book of business and at least 3 years' experience to join the TEAM! "If you are a top producer, and ready for success, then it's time for you to shape your future with ResMac. We have positions available in California, Arizona, Texas, Illinois, Wisconsin, Minnesota, Michigan, Washington, Oregon as well as other major markets. The ideal candidate should be familiar with all Agency guidelines and loan programs. In addition to FNMA/FHLMC, and FHA/VA/USDA, we offer a suite of Non-QM products, all are available through our proprietary loan portal, 'Marti.' Marti allows our partners real-time control of the transactions. Ad soon as e-disclosures are generated, our partners can order appraisal, flood cert, all income and asset verifications. ResMac offers a competitive compensation and benefits package. To apply, send resumes to Zoe Alba, VP of Human Resources.
A well-established bank-owned mortgage subsidiary is looking for opportunities to grow its existing retail channel and footprint through an acquisition of a retail lending team, retail lending division, or even a complete organizational acquisition. This is not a consumer direct model opportunity, as company is seeking traditional networking and referral based lead generation model. The acquiring company has all agency approvals, operational fulfillment capacity, servicing channel, and plenty of capital for expansion and growth opportunities in the future. Company has experienced over 100% growth in loan volume in the past three years due to its exceptional branding/marketing and outstanding operational execution. To learn more about this opportunity to join a growing and dynamic organization, please contact Rob Chrisman. (Please specify the opportunity and excuse any delays due to travel.)
"Increase productivity by 20% or more with Unify. This 'Full Suite CRM' was introduced to the mortgage industry in 2009 and has realized steady growth since, including a 70% growth rate in 2016 alone. Today, that platform has become a Full Suite CRM Solution to help loan officers build, track and manage all aspects of their business. This feature rich CRM is loaded with all the tools a company, and loan officer, needs to increase productivity, and continues to add revolutionary features to meet the demands of its clients. Schedule a demo today or contact Scott Benson at 651-288-7510.
Upcoming Events
Getting to Know Your Military Borrowers! If a borrower said, "My CO recommended I come see you. Just PCSed back to CONUS from OCONUS. I have my BAH but my COLA will change. You might see a big EB on my LES. Can you meet with me today about 1400 hours," would you know what they said? If not, you'd be like most other originators before they took the Certified Military Home Specialist Course. National Mortgage Professional Magazine is bringing you this complimentary 90-minute course via live webinar on Thursday, May 4th at 2 PM EDT, sponsored by REMN Wholesale and presented by Beverly Frase, Founder of BootsAcrossAmerica.com. By attending you will be able to build a better rapport with veterans in pursuit of their VA loan benefit by understanding their language and way of life, accurately calculate income using the LES (Leave & Earning Statement) and more. After attending you'll receive an e-mail to take the exam online at your convenience to become a Certified Military Home Specialist and receive a certificate upon passing the exam. All at no cost to you! Click here to sign up for this FREE Webinar!
The American Mortgage Conference will be held May 17-19 at the Raleigh Marriott City Center. The conference brings together leading experts in the financial services industry, mortgage practitioners of every kind, policy makers and investors to discuss important issues in the mortgage field and to analyze what progress is being made in Washington. Featured topics include updates from respected mortgage industry leaders on the housing market, regulatory and legislative developments in Washington D.C, residential mortgage lending trends, eClosings and the coming digital revolution mortgage servicing, title insurance, and new home construction lending. This conference features national level speakers including FHFA Director Mel Watt, Mortgage Bankers Association CEO David Stevens, Rob Chrisman and Congressman Robert Pittenger, just to name a few. Click here to view the agenda and register.
If you've only thought about seeking GSE approval or have obtained approval but its currently inactive, Sign up for this May 10th webinar. Jennifer Whip, CMB, a 26-year veteran with Fannie Mae and currently principal of Cambridge One LLC will discuss the role GSEs can play within your organization and the value they can provide and not just for the big Lenders.
The 2017 OMBA Annual Conference in Catoosa is approaching fast. An incredible line-up of speakers will discuss industry related topics, political developments, business development and business insight. This year's theme is INCLUSION and MBA Chairman Rodrigo Lopez will join the conference to discuss Diversity and Inclusion in our industry. Register now for this May 24th & May 25th event.
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