Welcome to “Bring Your Kid’s Candy to Work” Day, when candy bowls at receptionist’s desks and lunchrooms are brimming with treats worth a gander. What is also worth a gander, besides the Agencies announcing the threshold for smaller loan exemption from appraisal requirements for higher-priced mortgage loans, is a report from the U.S. Congressional Budget Office. The good news is that economic output grew by 2½ percent in 2018 and is expected to grow by more than 2 percent this year, continuing to support strong labor market conditions that feature low unemployment and rising wages. After 2019, economic growth is projected to average 1.8 percent per year, which is less than the historical average. But still a long way from any recession. But under current tax laws and conditions, budget deficits are projected to average $1.2 trillion a year between 2020 and 2029, boosting debt held by the public to 95 percent of gross domestic product in that year—its highest level since just after World War II.

Lender Services and Products

For over a decade, Altisource®, through its asset management solutions, has provided leading financial institutions a full suite of tech-enabled, end-to-end real estate management services such as REO and short sale management, real estate brokerage, online real estate auction, property inspection and preservation, valuations, and title and settlement services. Altisource continues to expand its services, upgrade technology and provide more support to clients, establishing itself as an industry leader in complete asset management solutions. Learn how Altisource’s comprehensive end-to-end default disposition capabilities can help drive optimal outcomes for your organization in this Asset Management Services brochure. Download here. 

PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), “continues to look for opportunities to help reduce our customers costs as related to their warehouse funding needs. That is why we offer multiple incentive pricing options to reduce costs for our customers; Tiered Utilization Incentive Pricing allows our customers to set utilization tiers they are comfortable meeting with rate incentives that reduce their costs. Our customers can also take advantage of Deposit Incentive Pricing. PlainsCapital Bank offers a competitive line up of Treasury Management products and when our customers take advantage of those products, they earn rate incentives to further reduce costs. We are committed to building strong relationships with our customers and providing the service you need most. If you are interested in learning more about PlainsCapital Bank National Warehouse Lending please contact Deric Barnett.”

United Wholesale Mortgage’s all-new portal, Brand 360, features an exciting tool called Brand Builder. It lets UWM clients create completely customized marketing materials, including emails, videos, flyers, social posts and more. Start by uploading your logo and their system will automatically pull in your brand colors. After that, just pick your fonts and choose photos from a professionally curated image library. You can even include pricing scenarios customized to each client. It makes promoting your brand and marketing your business easier than ever. Click here to sign up with UWM.

How to Turn Your Quality Control Team Into a Revenue Retention Department - Industry experts share their success stories, strategies and more. Many lenders needlessly sacrifice significant revenue every year in QC-related fees, fines, pricing adjustments, excessive audit requirements and delays, all because they have no idea how easy it is to turn their Quality Control department into a Revenue Retention department. In this webinar, mortgage lenders and industry experts share how they have built QC programs that help prevent high-dollar issues like indemnifications and repurchase requests, while also eliminating the smaller issues that lead to pricing adjustments, added fees, fines and costly delays. Watch the webinar.

Caliber Home Loans, Inc. continues to grow its loan production with Home Builders across the country and remain a Top 10 lender for homebuilder production for the past 3 years (per Metrostudy)! “We offer dedicated builder products, tools, services, support, and local sales and operations teams. Caliber offers Extended Rate Locks for up to 12 months, a Doc Lock program, and a Caliber Portfolio Lending Suite of non-Agency loans, which all allow Home Builders to build and sell more new homes. Work with Caliber – The Builder’s Choice for Home Financing.” For more information, contact Michael Brown, SVP National Builder Division.

Chenoa Fund: Helping Minorities Break Into Homeownership Historically, the homeownership rate for racial minorities has been well below that for whites. This is especially true for African Americans. After creeping upward over 30 years and peaking at 50% in 2004, the black homeownership rate began to fall, dropping to 40.6% in 2019 and erasing all the gains made since passage of the Fair Housing Act in 1968. One reason: the racial wealth gap. For many reasons, it has been harder for African Americans and other minorities to accumulate funds for down payments and buy homes. At the Chenoa Fund, more than half of our borrowers are minority families, and many lack relatives who can gift them funds for a down payment. We’re proud to serve as their bridge to homeownership, which experts agree is a critical factor in economic stability and advancement.

NOVEMBER IS NATIONAL GRATITUDE MONTH and MQMR wants to help you show your compliance team just how much gratitude you have for all they do. This is your last chance to enter to win lunch for your amazing compliance team. Nominate your compliance team and tell us what makes them the best around. Nominations are open now through Nov. 8. MQMR will select a winner at random each week in November starting Nov. 4, and they’ll receive a $250 gift card for lunch on us. For a list of Official Rules and to submit your nomination, visit the contest page here.

Looking for an inexpensive early Christmas present for your staff? Lisa Lahey sent, “I have been in the mortgage banking industry and a notary in excess of 33 years, and seen the amount of paperwork having to do with a mortgage loan application. To make it easier to flip papers/turn pages while reviewing loan documents, I invented the ‘Pen Booty’ - a rubber ‘fingertip’ at the end of a pen making it easier to flip through papers versus licking my fingers or putting on the rubber fingertip on one of my fingers. There are 2 versions (and 8 colors) of the Pen Booty; one that goes on the end of a pen, and one that has a hole that goes on the end of a stylus for touch screen usage and still be able to flip paper. If you’d like to place an order, click above or email me.

For people with major student loan debt, MLOs will often recommend an FHA loan, which allows for a higher debt-to-income ratio. Here’s some advice for the first time homebuyer who is also saddled with student loan debt. Waiting until the deferral period has passed helps. Also look at FHA loans, however, there are caveats.

And yup, Ginnie Mae’s nonbank originator share reached a record high of 86 percent in September 2019 (page 11). Fannie’s earnings report this week showed that market share in the 3rd quarter of 2019 for new single-family mortgage-related securities issuances Ginnie snagged 31% (compared to Fannie’s 39%, Freddie’s 27%, and “private label” 3%).

Ginnie Mae is planning to launch a pilot program to accept eNotes as satisfactory collateral for its mortgage-backed securities. Fully digital FHA and VA loans? Ginnie Mae announced that it selected eOriginal to provide eVault software and services to the agency.

Ginnie Mae is soliciting feedback on its digital collateral guidelines according to a recent press release post. In addition, Ginnie Mae has added the following post: Ginnie Mae Selects eOriginal, Inc for eVault Software Services.

On Friday, November 15th, FHA is providing a free, half day, on-site Appraisal Training in Philadelphia. FHA appraisal requirements, including appraisal protocol and updates to FHA appraisal policy as outlined in FHA’s Single-Family Housing Policy Handbook. Advanced registration is required by November 6th.

FHA published the quarterly update to its Single-Family Housing Policy Handbook 4000.1. This publication updates and clarifies FHA’s servicing and claims policies and includes additional updates to other sections of the SF Handbook such as incorporation of the Maximum Loan-To-Value and Combined Loan-To-Value Percentages for Cash-Out Refinance Mortgages per Mortgagee Letter 2019-11. Updates to the Condominium sections under “Required Documents” to incorporate reference to the newly approved HUD forms.

U.S. Bank issued SEL-2019-056 regarding an update to USDA Funding. Its Seller Guide Update SEL 2019-057 covers VA Chapter 9 updates and Portfolio underwriting updates.

U.S. Bank Correspondent/HFA issued Bulletin 2019-54 with updated information relating to FHA Delegated Correspondent Overlay, Second Mortgage changes, HFA Overlay Matrix updates, Correspondent approved Assistance Programs.

PCF Wholesale is dedicated to helping Veterans and FHA Homeowners and is offering cash out loans to 100% LTV for VA and FHA to 80% with FICO’s as low as 600. (“Mention this note and our secondary will approved a 25-basis point price improvement.’)

PRMG issued Product Profile Updates specific to CHFA Preferred Plus Conventional, Expanded Access AA Credit, VA and VA High Balance and Agency Products.

loanDepot posted an Announcement reflecting updates regarding FHA – Mortgagee Letter 2019-13 - Condominium Project Approval Requirements, Selling Guide Announcement SEL 2019-08, Freddie Mac Bulletin 2019-20, Veterans Affairs – Veterans Information Portal (VIP), VA Circular 26-19-25 and VA Circular 26-19-25 Change 1.

PRMG is offering the option for Single Unit Condo Approvals on FHA loans with cases assigned on or after October 15, 2019. Product Profile’s for FHA Standard & High Balance, Expanded Access Products, Expanded Access B-C Products, Closed-End Second, All Housing Authority Products and WHEDA Advantage Products have been updated accordingly. PRMG has developed documents to help with the Single Unit Condo Approval process. A submission form, checklist and process document have been posted to the Resource Center.

Capital Markets

Do you feel there’s more or less risk out there in the global economy? U.S. Treasuries rallied across the curve in a “risk-off” trade Thursday, after reports claimed that Chinese officials are questioning whether a comprehensive trade deal can be reached with the U.S. The Bloomberg report also noted that Chinese officials want to see some tariffs removed before negotiations move to the second phase and that an agreement on structural reforms is unlikely. President Trump, who the report identified as an impediment to a deal, tweeted that the "phase one," which still needs to be signed, will cover about 60 percent of the total deal. Markets also received a weak Chicago PMI report for October, which fell to its lowest level since the end of 2015.

The flight to quality sent stocks somewhat lower, but the U.S. 10-year yield dropped to 1.69 percent. Personal income and spending in September registered roughly as expected, while the Q3 Employment Cost Index showed nothing noteworthy aka a continuation of moderate growth in compensation costs. It was all geopolitically driven.

Today we’ve had October Nonfarm Payrolls (+128k, topping forecasts, and a back month revision higher), Average Hourly Earnings (+.2%), and the headline Unemployment Rate (up to 3.6%). The two releases later today are September Construction Spending and the October ISM Manufacturing Index. Fed speak also returns with Dallas Fed President Kaplan, New York’s Williams, Fed Vice Chair Clarida, and Fed Governor Quarles all delivering remarks. We begin the day with Agency MBS prices worse .125-.250 on the strong employment report and the 10-year yielding 1.72%.

Employment and Moves

Thrive Mortgage loves to partner with like-minded mortgage pros! Business partners Tyler Nguyen and Bryan Snyder, are bringing their extensive Mortgage experience to the Thrive family in Florida. “Thrive is all about quality in every facet of their business. In early conversations with their leadership, I could tell that the company truly cares about the consumer first and foremost,” Nguyen stated. “Coming from the Broker world, we appreciate that personal brand and an entrepreneurial spirit are so much a part of Thrive’s DNA!”  Andrew Smith, Regional Manager for Thrive, remarked, “This is incredibly exciting for us as we continue to expand across so much of the country. Tyler and Bryan, along with their exceptional team, are amazing professionals, and even better people. Thrive represents what is the best of our business as we enter the next decade.” Learn more about available growth opportunities at join.thrivemortgage.com.

Deephaven announced the hiring of Kris-Ann Carduff, Wholesale – VP of Business Development, “to inform and support our rapidly growing broker base. Account Executive and marketing roles will enhance her ability to evaluate and improve Deephaven’s support of its broker network.”