We live in world of numbers. It has been 76 years since an atom bomb was dropped on Hiroshima. Let’s hope nothing close, with its 140,000 instantaneous deaths, ever happens again.  Did you know that male houseflies live for 28 days, females for 25? (Think about that when your kids leave the screen door open.) 2020 was a great year for volume ($3.8 trillion); did you know that the MBA predicts that 2021 will be almost as great ($3.6 trillion)? How much do you think that lawsuit plaintiffs, and counsel, will receive from Transunion, Equifax, and others in the Fair Credit Reporting Act class action? (The case is 3:21-cv-14172, O'Brien v. Equifax Information Services, LLC et al.) this cartoon points out, have turned “feral?” Did you know that, in 1991, 92 percent of rental properties were owned by individuals? But in recent years that number has fallen to 74 percent. And how many Zoom meetings have you been in during the last year and a half? You may have a little fun in them going forward, and here is a simple way to clone yourself and put a video in your background. (The audio version of today’s commentary, available here, is sponsored by Origence, helping financial institutions provide mortgage, consumer, indirect, and home equity loans with greater efficiency and increased scale while also delivering a convenient and personalized experience to borrowers.)

Lender and Broker Services and Products

Many brokers already do a lot of business with Homepoint, but for those who don’t, its recent announcement is probably a good reason to look at Homepoint. The company recently announced "HomepointAmplify," a new service model in which Operations personnel are being aligned regionally into pods, essentially functioning as a “large lender with a small lender feel”. Brokers will work with dedicated underwriters, closers, and so on, making communications and escalations easier and cutting down on points of contact. Homepoint already has some of the most experienced Operations people and account executives in the wholesale channel, and the process of working with them is going to be that much easier moving forward. Brokers that aren’t signed up with Homepoint yet can do so by clicking here.

“Silvergate Warehouse Lending is as innovative as the entrepreneurs we serve. We offer credit line sizes from $20M - $200M that can accommodate unique and niche markets. Specialty products include Jumbo, Non-QM/DSCR, Small Balance Commercial, and Aggregation Facilities. With Operations Centers on both Coasts, we build strong relationships through a high level of personal service and the ease and flexibility that comes with timely, in-house lending decisions. Meet Silvergate at the CMBA Western-Secondary and the MBA Annual in San Diego. Contact Elaine Batlis (EVP), Greg Davis (West), or Steve Klein (East).”

“Sierra Pacific Mortgage (SPM) is honored to be a corporate partner of the Arbor Day Foundation’s Time for Trees initiative. In doing our part to help fund the greener good and rebuild ecosystems devastated by natural disasters, SPM has committed to planting a tree at the funding of every loan closed with our team for the remainder of 2021. Because of the support of our borrowers and business partners, we’ve planted over 5,450 trees since launching the Earth Day, Every Day campaign in May. Are you ready to work with a company that is involved in such impactful community work? Reach out to a local Loan Officer today to learn how you can get involved!”

Western Alliance Bank’s Specialized Mortgage Services Group continues to be solution-oriented in changing markets in providing various financing vehicles. Warehouse Lending finances a wide spectrum of loan types including Agency, FHA/VA/USDA, Jumbo and Non-QM, funds until 2:30pm PST and works with borrowers to customize terms to meet investor and execution needs. MSR financing provides lines of credit that leverage Fannie Mae, Freddie Mac and Ginnie Mae collateral. Lines can be annual revolvers or longer-term interest only draw periods followed by term finance. Flexible structures provide solutions to accommodate originators’ MSR retention strategy. Additionally, the Specialized Mortgage Services Group provides Note Financing, Treasury Management Services, Working Capital Lines and Commercial Real Estate solutions across the country. Member FDIC.

FHA and USDA

Servicers, those that value mortgage servicing rights (MSRs), and lenders who originate government loans took note of yesterday’s FHA announcement on partial waivers to its policies pertaining to COVID-19 Advance Loan Modification (COVID-19 ALM) and COVID-19 Recovery Loss Mitigation Options (COVID-19 Recovery Options). Partial Waiver of the Borrower Review Requirements for the COVID-19 Advance Loan Modification in Handbook 4000.1 and Mortgagee Letter 2021-18. Partial Waiver of the Re-Review of Borrower Requirements for the COVID-19 Recovery Loss Mitigation Options in Mortgagee Letter 2021-18. “These waivers address the mortgagee’s timeframes and borrower eligibility for a required review or re-review for the COVID-19 ALM and the COVID-19 Recovery Options. Mortgagees are encouraged to thoroughly review the two waivers that posted today as well as the COVID-19 ALM and COVID-19 Recovery Options policies outlined in ML 2021-15 and ML 2021-18, respectively.”

USDA extended its moratorium on evictions through September 30, 2021, for Single Family Housing Direct Loan Program. The extension of the eviction moratorium is effective immediately for all USDA  direct loan mortgages except for vacant or abandoned properties. The foreclosure moratorium expired on July 31, 2021, and the Agency will not be extending that moratorium further. Servicers should evaluate borrowers for USDA COVID-19 Special Relief Measures before commencing foreclosure actions.

Conventional Conforming Shifts

Over in conventional conforming land, recall the myriad of investors and major lenders who adjusted their fees and adverse market pricing.

Effective for all Best Effort commitments taken on or after July 27, 2021, PennyMac is changing its BE rate sheet updating values on the Conventional ‘Investment Property’ LLPA.

Flagstar announced Agency Investment LLPA Updates taking effect starting with new locks as of Friday, July 30, 2021. Flagstar Bank is decreasing the price improvement for Agency < 25 Year Fixed Investment Property FICO >= 680 loans to +0.125. This LLPA is addition to any existing investment property LLPAs. Flagstar Bank posted clarification regarding Agency Adverse Market Refinance Fee.

Effective with Commitment Confirmations issued on or after July 16, the Conventional Adverse Market Refinance Fee was removed from Caliber Home Loans Bulk bids and Best Effort/Single Loan mandatory. 

Mountain West Financial Bulletin 21W-052 covers Freddie Mac revisions on no cash-out refinance seasoning requirement; cash-out refinance exception and future long term disability income.

Plaza Home Mortgage® has removed the Adverse Market Refinance Fee requirement. Clients with existing locks, a price adjustment will be automatically added to offset the AMRF. Plus, any new locks are not subject to the AMRF.

Citi Correspondent Lending was no longer charging the Adverse Market Refinance Fee on applicable loans purchased after July 16th. Loans will be repriced as part of the pre-purchase review process; at which time, the fee will be removed. For any loan purchased after July 16th, 2021, where the fee was charged, the Seller will receive a refund.

Carrington Correspondent posted Announcement 21-0027 regarding FHFA’s elimination of Adverse Market Refinance Fee.

First Community Mortgage Wholesale announced the elimination of the Adverse Market Refinance Fee. And it  on correspondent loans. For loans purchased on or after July 19, 2021, to which the Adverse Market Refinance Fee was previously applied, FCM will adjust pricing by 50 basis points. The adjustment will be reflected on the Purchase Advice.

FAMC has removed the Adverse Market Refinance Fee and is no longer applicable to new best-efforts locks or mandatory commitments. The LLPA will be removed from existing active best-efforts pipeline.

Capital Markets

Treasuries, and along with them MBS prices, sold off yesterday after the day's batch of data included a smaller than expected decrease in weekly initial claims and a wider than expected trade deficit for June. We will see how recovery-minded the labor market is with today’s July payrolls report. The freight train that is “tapering talk” rolled out of the station a little more with another Fed speaker, San Francisco President Daly, lending support to a late year tapering announcement.

Lenders know what rates have been doing, and this was echoed by Freddie Mac’s Primary Mortgage Market Survey for the week ending August 5. The 15-year fixed rate hold at its record low of 2.10 percent, while the 30-year rate fell to just 12 bps off of the survey low from earlier this year. Separately, Black Knight reported that the number of active forbearance plans fell by 71k as we entered the first week of August, continuing the trend of strong early month declines in forbearance volumes. The number of active plans is down 131k (-6.7 percent) from the same time last month, which is a slightly slower rate of improvement than we had been seeing in recent weeks.

Today brings the highly anticipated employment situation for July. (Recall that Wednesday we learned that the ADP employment report missed by a wide margin.) The unemployment rate came in at 5.4 percent, a huge decline, hourly earnings were +.4 percent, huge, and nonfarm payrolls at 943k, much higher than expected. The week’s economic calendar rounds out later today with wholesale inventories and sales for June as well as consumer credit for June. The NY Desk will purchase up to $5.15 billion 30-year 2 percent and 2.5 percent. We begin the day with Agency MBS prices worse .250 and the 10-year yielding 1.27 after closing yesterday at 1.22 percent after the powerful jobs numbers.

Employment

Attention Loan Officers: Want to make up to 300bps LO Comp on each loan you close? Want to have competitive pricing and maximum comp? Rates are up and volume is moving around right now. LO's who want to win need to align themselves with nimble lenders who take care of their LO's. Our philosophy is simple; when you win, we all win. JFK Financial is a rapidly growing retail mortgage banker headquartered in Las Vegas Nevada. We offer a competitive comp plan that allows you to go up to 3% points.  Many of our competitors are offering 1.75% comp at the same rate that we are paying 3% back.  We are focused on bringing on top LOs/Production teams/ and branches in CA, NV, AZ, CO, FL, OR and WA markets who want to take their game to the next level. We have been in business since 1995 and we have consistently grown for the past 16 years regardless of market cycles. READY TO JOIN OUR TEAM? Interested parties should email Tarnita Woodard.

“JMAC Lending is hiring experienced underwriters and top producing Sr. Account Executives to join our industry-leading wholesale lending group. We’re growing at a record rate. Contact HR@jmaclending.com. JMAC Lending has a new jumbo priced to move you. The new Laguna Jumbo features aggressive pricing on fixed and ARMs to $2.0M. Price it today: www.jmaclending.com/laguna. Register today. Participants will be entered into a drawing for a chance to with a $100 Amazon Gift Card.”

Homeowners Financial Group (HFG) is thrilled to announce Leonard Cullip as West Regional Manager. Len will oversee California, Alaska, Oregon, Washington, Idaho, and Hawaii markets, providing strategic direction, market analysis, and oversight to ensure these regions are maximizing production while maintaining efficient and accurate operations. “Len is exactly the type of leader we are looking for as we continue to enhance our retail presence across the country,” said Bill Rogers, President & CEO of HFG. Bill added, “Len has a proven track record of building and fortifying retail markets on the West Coast. We are excited to have him on our team.” Ron Stowers, CSO, commented “Len’s genuine passion to serve people perfectly aligns with HFG’s culture and commitment to our people.” If you are interested in joining HFG, please contact Leonard Cullip, or send your confidential resume to Erin Dueck.

Take control of your pipeline, and your career, as an independent mortgage broker. One of the best things about going independent as a wholesale mortgage broker is being able to serve as many clients as you like… Something you can’t always do at a retail lender or bank. Working for yourself lets you take control of your pipeline and work within your borrowers’ timelines to ensure you can close when they need to. Plus, you’ll get access to a range of wholesale lenders who offer cutting-edge technology with unmatched service and turnaround times. Ready to find the perfect workflow for you? Contact us at BeAMortgageBroker.com today!

Well recognized as a leader in non-QM loans nationwide, Sprout Mortgage LLC is continuing to grow and is looking for strong talent to join the team. Sprout is actively seeking Wholesale Account Executives with 1+ year experience as well as experienced Underwriters with non-QM experience or experienced Underwriters eager to learn how to underwrite non-QM programs. Expansive loan programs in non-QM, agency, best in class non-QM technology, flexible alternative documentation guidelines, underwriting exceptions, and loans up to $10 M all provide ample opportunities for significant sales growth on top of a very competitive compensation. If you’re looking for a new opportunity, e-mail your resume to Cheri Brousseau, Director of Recruiting or call her at 516-738-4796 for a confidential conversation.

275BPS Agency, 325BPS Govie P&L Model with Rapid Turn-Times. Recently named among Top 6 Best Large Mortgage Companies to Work For by National Mortgage News, Geneva Financial Home Loans is filling Branch Manager and Loan officer positions in 45 states. Close in as little as 10 days. Large volume branches can opt for same-day underwriting with in-branch Ops option. P&L includes zero fees for credit reports, AUS, LOS, CRM, technology fees, employer taxes (commissioned employees), VOEs, 4506Ts, and warehouse costs. See why Geneva Financial has a 5-star Google rating with over 1,800 verified borrower reviews!

“If you are an owner of a mortgage company and have held off selling for fear of letting your team down, then please reach out. We guarantee you that we are who your team would want to be with if they had a choice; impressive capital base for expansion, leading innovator, stunning execution metrics, incredible brand, aggressive compensation, and, most importantly, we give independence to the branches for highly flexible model choices to support all markets. You leave the legacy with your people that you most wanted while attaining the financial freedom and reward you have worked hard for. Confidential discussions are the start of incredible opportunity for you and your team. Please send your confidential note of interest to Chrisman LLC’s Angelica Nixt and specify this opportunity for forwarding.”

Open Mortgage has appointed Windi Gerber as SVP of Human Resources where she will be accountable for the people operations of Open Mortgage, managing all aspects of the employee life cycle, ensuring team members are equipped with the training required to perform their roles, and managing performance objectives.