For me October included time in Washington (State and DC), California, Tennessee, North Carolina, and Nevada. Lenders are talking about technology, the rate of change, and the overwhelming options available to LOs. And for home buyers, the process & economics are changing. Thanks to Amy R. who sent along this new company site. The buyer pays nothing, the seller pays 1.95 points to Ribbon, and the company ushers the buyer through the process. If the buyer is delayed in financing, “We will resell/convey the home back to you at the same price we purchased it for on the official purchase agreement.” And don’t forget OpenDoor or Redfin’s 1% commission. Do you think real estate agents are welcoming this?

Lender Products and Services

JMAC Lending is extending its $500 Government Appraisal Fee Credit to include all Conventional Purchase loans. “Our Government lending promotion has been such a huge success that we are pleased to extend this special,” JMAC Founder and President Christina Pham says. “We want to thank our brokers for doing business with JMAC and extend a warm invitation to new brokers to grow their business with us.” Click here to learn more about JMAC’s products and learn more about the $500 Appraisal Fee Credit promo for Purchase loans. Contact JMAC at iwant@JMACLending.com or call 844.888.5622.

Did you know 60-80% of customers who describe themselves as satisfied do not go back to do more business with the company that initially satisfied them? It’s a shocking fact, and the truth is loyalty means nothing if the borrower can’t remember who the correspondent lender was that did the phenomenal job. To capture the lifetime value of a borrower, stay top of mind with initiatives like co-branding. If the statement from your correspondent investor goes out to your former borrower with your name or logo on it, chances are you’ll be remembered 5 or 10 years from now when they’re looking for a new mortgage. Don’t let your borrowers forget who you are! Read more about the lifetime value of a customer in this TMS white paper.

Disaster Impacts

Moody’s Corporation weighed in on Hurricane Michael's potential impact on RMBS (residential mortgage-backed securities). "As with past hurricanes, damage caused by Hurricane Michael poses a minor credit risk to RMBS with high exposure to the counties in the storm’s path, in this case, those in the Florida panhandle, Alabama and Georgia. Excluding SFR, RMBS exposure to the counties in Florida, Alabama and Georgia expected to be affected by the storm is small at less than 1% across the various asset classes," stated Moody's Senior Vice President Deepika Kothari. "Single-family rental (SFR) RMBS have a relatively higher exposure with assets in Florida and Georgia totaling about 1.5% of collateral. In addition to the small exposures, insurance protections and servicer relief options typically help mitigate the negative impacts of hurricanes. For SFR transactions, blanket insurance policies that cover windstorm damages for all properties, and flood insurance for homes in special hazard areas, will provide some protection," continued Kothari.

Hurricane Michael… In commercial real estate news, by one calculation, CMBS exposure in the state of Florida totals about $53.3bn. However, most of the exposure falls within Miami-Dade county ($7.8bn), Orange county ($6.8bn) and Broward county ($5.3bn), none of which were in the path of Hurricane Michael. Of the 13 counties where residents were subject to mandatory evacuation, CMBS exposure was concentrated in nine counties. The allocated exposure, by property allocated balance, totals about $963.1mn, which is spread across 105 different CMBS transactions, with only six transactions having greater than 5% exposure.

FEMA reminds employers to “Prepare your employees.” “For your workers, taking care of themselves, their homes, and their families is job #1. Yet, you won't be able to recover from a natural disaster on your own. You need your employees, so be sure everyone is protected now. Help employees help you by deciding how you'll communicate with staff during and after a major weather event. Then form a disaster relief committee. Employee resources are available to download from FEMA, so share them with staff and remind everyone to assemble emergency kits and plan escape routes. Hold workshops with a disaster preparedness professional who can discuss advance steps employees can take. Finally, let employees consider ways they might help each other, perhaps taking essentials to people in need or letting a coworker stay in a guest bedroom. Even with prepared staff members, your company will still operate with a skeleton crew in the wake of a national disaster. Some of your employees may be subject to mandatory evacuations and may find it difficult to return, if their homes flood or the area between an emergency shelter and home is impassable. Be ready to meet immediate customer needs, especially for cash, with just a small proportion of your usual staff to help.”

As a brief reminder for bankers, here is a short list to remember around disaster planning from Agility Recovery, a business continuity and disaster recovery company: Know your power requirements. Power is the top asset that banks struggle to maintain or regain. Ask an electrician to define your power needs now, so you'll know how much juice you need to run your bank if and when the public power grid goes down. Have access to multiple vendors.Generators and fuel are in very high demand after a natural disaster. It may not be possible to telephone the local rental or fuel supply company to have them deliver what you need. The same storm might hit their business too, leaving them with reduced capacity. Reach out to a handful of vendors now, including businesses outside your geographic area. Let them know about your power requirements and your interest in being a customer during and after the next big storm. If they have a preferred client list, ask to be on it.

For HUD’s part, it will speed federal disaster assistance to the State of Florida and provide support to homeowners and low-income renters forced from their homes due to Hurricane Michael. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county. HUD is: Providing immediate foreclosure relief – HUD’s automatic 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages commenced for the Florida counties covered under yesterday’s Presidential declaration on the date of the declaration. For assistance, call your loan servicer or FHA’s Resource Center at 1-800-304-9320.

Making mortgage insurance available – HUD's Section 203(h) program provides FHA insurance to disaster victims whose homes were destroyed or damaged to such an extent that reconstruction or replacement is necessary and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs; Making insurance available for both mortgages and home rehabilitation – HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; Information on housing providers and HUD programs – The Department will share information with FEMA and the State on housing providers that may have available units in the impacted counties. This includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.

The Independent Community Bankers of America (ICBA) and the nation’s community banks remind consumers that they can help alleviate financial concerns by planning in advance of a natural disaster or emergency. ICBA offers the following tips to help consumers prepare and recover from a natural disaster. Prepare backup communications plans if both cellular and landline service fail. You may want to be fully informed ahead of time of your cellular and satellite communications options. Store digital and paper copies of critical documents in a safe deposit box. These include a driver’s license, passport or military ID, bank and investment account information, proof of occupancy, a mortgage deed, insurance policies and three years of tax returns. Consider placing these items in a waterproof bag. Make additional copies of personal documents—marriage license, birth certificates, adoption papers—for safekeeping and alert a relative, trustee or attorney of their location. Print out contact information for trustees, guardians and executors and store it in a safe deposit box or give a copy to a trusted family member or friend.

Capital Markets

MIAC’s capital markets group is pleased to announce its exclusive offering of ~$25mm reperforming residential whole loans. The collateral consists of 63% modified loans, ~6 months performing, average UPB of ~$184k. Bids are due Friday, November 9th. Interested parties should contact their MIAC sales representative at 212-233-1250 or Steve Harris for additional information.

The U.S. 10-year closed +5 bps to 3.16% on little material news yesterday, similar to Tuesday. The biggest news of the day was a London Times report that U.K. and European negotiators have reached a tentative agreement that would give U.K. financial services companies continued access to European markets after Brexit. China’s President Xi Jinping of China signaled increased urgency for more measures to combat the slowing economy. Those words came as October marked the worst month for global equity shares since May 2012. The focus now turns to Apple earnings today and the monthly U.S. jobs report tomorrow.

We’ve already had a fair chunk of scheduled news in the U.S.: job cuts from Challenger, Gray & Christmas for October (+37% to 76k, the highest since mid-2015!), initial jobless claims (down to 214k), Q3 productivity (+2.2% in the 3rd quarter, strong!), and unit labor costs. After I send this commentary out we’ll have Market manufacturing PMI (9:45AM ET), followed by ISM PMI for October (10AM ET) and September construction spending, seen increasing. In the early going the 10-year is yielding 3.16% and agency MBS prices are worse a few ticks versus Wednesday’s close.

Jobs, Business Opportunities

A dynamic, highly successful billion-dollar retail IMB is seeking a talented Chief Financial Officer to lead its accounting, HR, and capital markets departments. The CFO directly assists the Executive Management Team on all strategic and tactical matters as they relate to budget management, cost benefit analysis, forecasting needs and the securing of new funding. The position is offered in the company’s intermountain west corporate office, and experience with AMB and Riivos (formerly Alight) is a big plus. If you’re interested in working with an exceptional executive team at a company with an incredible culture, send resume to me for forwarding. All inquiries are confidential; please specify opportunity.

A motivated and experienced investor is seeking to acquire a FULL EAGLE/HUD Designated or VA Automatic Authority mortgage company. Licensed in CA would be preferred but is not required. The ideal situation is for current shareholders to liquidate all or a large portion of their equity through the transaction. Principals would be willing to negotiate/keep the existing team. Interested parties please contact me; please specify the listing.

New Penn Financial is looking for a dynamic, growth-minded, producing sales manager to fill an important sales leadership role in a Joint Venture partnership. This prominent multi-state real estate agency in the Cleveland, Ohio area is one of New Penn’s newest partnerships. "We are very excited to launch this new venture and partner with another outstanding real estate agency," Senior Vice President, Corey Caster said. "This venture represents another major step in the growth of our industry-leading Joint Venture platform." If you are interested in hearing more about how to step into a prominent management role with an in-house audience, contact Vincent Daino, Vice President of Recruiting and Business Development at New Penn Financial. Additional opportunities are available for loan officers and producing managers throughout the country within New Penn’s existing real estate partnerships, contact Vince for more details.  

Caliber Home Loans, Inc. has continued to thrive during a challenging year for the mortgage industry. Inside Mortgage Finance recently ranked Caliber 3rd among non-bank lenders in the country, based on 2018 volume through September, for producing over $32 billion! Comprised of Retail, Wholesale, Correspondent and Consumer Direct sales channels, Caliber’s strength in numbers comes from its purchase volume. Caliber can attribute strong purchase volume to the talent of its sales organizations, the launch of new products like Elite Access, and streamlined operations. Genuine success relies on teamwork, and everyone at Caliber Home Loans understands this. If you’re interested in joining Caliber’s national network of producers visit www.joincalibernow.com or email Jeremy DeRosa.

For the 4th year in a row, PrimeLending was recognized on the prestigious 100 Best Workplaces for Women list by Great Place to Work and Fortune. This year, the company ranked #13 based on feedback from more than 400,000 employee surveys from businesses in all sectors. PrimeLending's ranking considers how well women are represented within the company's workforce. In fact, 45% of all VP roles and above, and 43% of retail leadership roles are held by women, like Mary Pugh, Charlotte Branch Manager. “Joining PrimeLending this past Spring has been empowering.  From the leadership team, to the Ops organization, I have all the support I need to confidently achieve my goals, grow my branch and perform up to my ultimate potential,” Mary said. Additionally, PrimeLending has been ranked a Best Workplace for Diversity, Parents and Generation X. If you’re ready to work for an award-winning company, contact Brian Miller (469.737.5729)!