Yes, MLO commissions are dropping. But the traditional 6% real estate agent commission continues to be under attack as well, the latest salvo fired from Clever, a real estate startup that connects homeowners to top rated agents in their area that list their home for less commission. (“Our main goal is to connect potential sellers and buyers to top performing agents based on the homeowner’s specific needs, but we also write guides, share tools, and teach our readers pretty much everything they need to know about the mortgage process via our blog.” Questions? Contact Chris Milko.) Realtors are also watching Ribbon Home, Zillow Offers, and Open door.

Lender Products and Services

Borrower satisfaction has always been the main focus to lenders large and small. Many state the benefits of repeat business, increased referrals, and stronger relationships with realtors as their motivators, but very few in our industry know how to track the ROI and level of investment they should be putting towards their borrower focused initiatives. A new eBook, “Borrower Satisfaction & Profitability” brings together focus areas and industry data, enabling lenders to track and monitor the impact of their borrower satisfaction efforts. An exclusive to Rob Chrisman subscribers today and a must read for all mortgage lenders, Download Your Free Copy Here.   

We now live in the age of digital mortgage processes. Lenders who use outdated technology, or none at all, to interface with their customers are experiencing a sharp rise in loan production costs, as well as a decrease in overall borrower satisfaction. Tech-focused non-banks like Quicken Loans continue to absorb more and more market share every year, and now dominate the list of top lenders by volume. At the same time, less agile institutions have seen their origination volumes and lending departments shrinking by the day because this new generation of borrowers expects to transact digitally with mobile options. They also expect to be continuously informed. And when they work with lenders who employ Floify’s point-of-sale technology, they get to check all those boxes.

Protect your earnings and be prepared. Digital lending and virtual consumer experiences are all the hype in today’s market. And while there are a lot of benefits, it doesn’t come without its risks. Real, tangible risks. Wire transfer fraud, which saw a 480% increase just a few years ago, can cause a major upset to a company’s bottom line and become a huge resource waster. Learn more with Informative Research’s new article about the “4 Answers on Wire Transfer Fraud that Criminals Don’t Want You to Know.” With so many areas open to exploitation, companies can never do too much to understand wire transfer fraud and prevent losing thousands of dollars at a time. For more detailed information, contact one of our team members at info@informativeresearch.com.

“Lenders, cut 80% off your essential LOS/PPE tech spend. The ReadyPrice retail and wholesale enterprise-strength LOS with an embedded multi-investor PPE and proprietary ‘error trapping’ tech is the answer for any sized lender (or brokers wanting to become bankers). The ReadyPrice all-in-one retail and wholesale platforms are fully configured out of the box, are up to 80% less expensive than heavy, ‘mature’ competitors, come complete with D1C, deep Fannie DU, EarlyCheck, etc. integrations and can be stood-up in a couple of weeks. Or, you can easily and inexpensively customize/configure it to easily fund thousands of loans per month from thousands of MLO’s or brokers, for example. The ReadyPrice LOS/PPE has funded over 300k units for $70 billion and is leading the way forward for today’s mortgage bankers as we utilize essential mortgage tech.” Call them at (408) 357–0931 or email hello@readyprice.com to receive a free demo today.

Did you know that, according to HubSpot, 39 percent of marketers say proving the ROI of their marketing is their top marketing challenge? When developing your plan for 2019, build it with confidence. Consult with the mortgage and fintech industry communications specialists at Seroka Brand Development. Seroka has been creating and executing successful marketing and PR communications plans for over 30 years. Today’s plans demand a contemporary approach that utilize a blend of digital, social media and traditional tactics along with the right tech stack to generate positive awareness, build engagement with your brand and drive conversions. And, with Seroka, you’ll have access to detailed campaign measurement and analytical tools to confidently evaluate your success, often in real time. Seroka can also help with specific campaigns or special projects. So #TurnUpYourBrand and make Seroka’s experience your advantage. Learn more here or email info@seroka.comto schedule a free consultation.

JMAC LENDING’S Non-QM submissions are through the roof. With streamlined features such as our 3-month bank statements option and Buyer Pre-Approval for bank-statement loans, it’s easy to see why JMAC is leading the Non-QM surge. Many brokers feel Non-QM loans are too complex. Not for the underwriters at JMAC, since we were one of the first to offer non-QM products. We’re here to help our clients navigate these products and assist with scenarios. In fact, non-QM scenarios are answered quickly by our experienced Account Executives. To speak with an AE, and to submit a scenario, contact sales@JMACLending.com or call 844.888.5622. You can also fill out our scenario form to find assistance right now! Experience the JMAC Difference today.

Are you a hunter or a farmer? And what does this have to do with the business of lending or subservicing anyway? This new white paper from TMS gives a fresh take on subservicing and how the cost of acquiring a new customer (“Hunting”) is often lost.  Instead, lenders hand over their new, precious customers to a subservicer who doesn’t help them retain (“Farming”) that customer for future value. Partner with a subservicer who will deliver the same level of customer service your customers have come to expect from you. Make sure you’re a farmer. If not, you risk a lasting negative effect on business.

NAMB national is just a few weeks away. While many are concerned with what the future holds, REMN Wholesale sees massive opportunities for brokers who need to offer more than the basic vanilla products. If a borrower doesn’t fit nicely into a QM loan these days, and to be honest, many don’t, REMN now offers the Simple Access program. Supported by one of the top customer service teams in the industry, REMN’s Simple Access non-QM program provides a unique opportunity to work with quality borrowers who don’t qualify for QM loan products. REMN believes that products and technology are nothing without the necessary people to support them, which is why it continues to grow by recruiting some of the best account executives in the industry. Recent additions to the REMN team include Jim Collins in Connecticut and Christine Garcia, who will be handling all of Los Angeles County.

“Here’s a hi-tech breakthrough in lending to self-employed borrowers. Amidst rising interest rates and declining origination volume, lenders must cast a wider net for customers, a growing number of which are self-employed. To capitalize on this trend, lenders need a simpler, faster way to underwrite mortgages for Americans who are their own bosses. To this end, Freddie Mac has integrated fintech vendor LoanBeam’s technology with Loan Product Advisor®, our automated underwriting system, to introduce the first and only integrated self-employment income solution for the market. LoanBeam’s software uses optical character recognition technology to extract and digest a borrower’s tax returns and other financials, and then calculate a total income figure that aligns with Freddie Mac’s guidelines. This integration offers lenders several advantages, including an automated review of the accuracy of qualifying income, eliminating the need to chase down unnecessary documents that support residual/excess income and certainty that the income calculation is eligible for representation and warranty relief.” Learn more.

Events and Training in December

The Federal Financial Institutions Examination Council (FFIEC) will hold a webinar on December 6 to promote awareness and understanding of efforts to develop alternative reference rates to LIBOR, because of the uncertainty as to continued availability of LIBOR after 2021: view the FFIEC November 19th press release.

Register now for the MBA’s December 6th Increasing Sales with Women Homebuyers webinar and learn the best practices and strategies to reach one of the fastest growing buyer segments in the nation.

Lenders One is hosting The Executive Roundtable December 5-6 in Miami, FL, including a session on developing a strategy and growth plan in a down market with executive coach Gary Peck, a best practice roundtable led by our sponsor Fannie Mae, and a market outlook and business forecasting led by Mike Fratantoni from the MBA.

The 2018 NAMB National Conference will be held December 8th-10th in Las Vegas including a session featuring Freedom CEO Stan Middleman and Angelo Mozilo comparing the beginnings of their companies, the evolution of lending, and discussing their thoughts on what the future holds.

The MBA is starting a brand-new study on HELOCs and home equity lending and servicing, which will include benchmarking data on portfolio characteristics, utilization rates, draw activity, repayment options, as well as statistics on new commitments such as processing times and pull-through. The study is for MBA members who originate and/or service these products; the participants will help design both the survey instrument and outputs. The initial planning call is on Tuesday, December 11 at 2PM ET. Register for the call here.  Download the informational flyer or contact Marina Walsh with questions.

On December 11th, industry leaders, Patrick Stone and Ken Markison will discuss the economic and compliance environment in 2019. Register for this Economic and Regulatory webinar here.

October Research, LLC’s annual Economic and Regulatory Outlook webinar is 12/11 at 2PM ET.

Don’t miss registering for the December 15th NMMLA annual Teddy Bear and Blanket Drive luncheon with guest speaker, Mayor Tim Keller.

National MI issued its training for December. A Look Ahead to Social Media Trends 2019: PDT, Dec 13, Oh, Shift! Session #3 – Flow: PST, Dec 12, A Look Ahead to Social Media Trends 2019: PDT, Dec 13. Click here: National MI to register for these classes.

Capital Markets

Once again stocks grabbed the headlines, but secondary marketing groups saw some volatility yesterday. The U.S. 10-year closed Wednesday’s session at 3.04% as early action was reversed by Fed Chairman Jay Powell's dovish remarks saying that interest rates are "just below" neutral. In his estimation, rates "remain just below the broad range of estimates of the level that would be neutral for the economy," however, these words were digested as “dovish” by capital markets. Accordingly, the Federal Reserve's Financial Stability Report acknowledged that asset prices "appear high relative to their historical ranges, " and escalating trade tensions, geopolitical uncertainty, or other adverse shocks could produce a sharp decline in asset prices. The report also acknowledged that business sector debt relative to GDP is historically high with signs of deteriorating credit standards.

Powell’s comments nudged one veteran originator to pen, “The Federal Reserve continually and repeatedly states that it is data-driven. That’s fine in 1980, but with the advent of the computer the world is driven by real time data algorithms, if you will. Even the average person receives news almost instantaneously.

“It seems the data the Fed is using, for better or worse, is trailing the real world by 60-180 days. This reminds me of ten years ago. In late Feb 2007 a New Century AE comes into my office and says that their warehouse lines were frozen, 3 weeks later they were gone, by late June the wholesale subprime market was gone, in August the jumbo market was in dire straits, and in early September the FRB Chairman says the subprime market is ‘contained.’

“Yes, that is rehashing the old, what seems like a few weeks ago for some, but it is still relevant. In July and Aug, I was being told by friends they were seeing a huge slowdown in real estate. I was fortunate and didn’t see it until late September. November has been a disaster. The Fed had been worrying about an over-heating economy, and still on target to raise rates. Today was a positive, but only by one person.

“At one point I saw something that said about 20% of homes had second mortgages. I don’t know where that is today, but I still have loans being subordinated because HARP excluded them, the CLTV wouldn’t work, or because the cash out LLPA was too high. Every jump in the discount impacts that chunk of the economy. A 1% increase in a $200k HELOC is $166 per month. As an originator I see a lot of them, and that $166 doesn’t help the economy.”  

Looking at today, we’ve seen November’s Personal Income and Spending (strong at +.5% & +.6%, respectively) weekly jobless claims (+10k to 234k, 6 month high), and core PCE only +.1%. Fed Chair Powell, who turned heads yesterday, will be back speaking though he is not expected to make any major market-moving comments. The October Pending Home Sales Index is seen unchanged at 10:00am (versus +0.5% previously). We then turn to some action from the Fed, which will release the minutes from the November 7-8 meeting at 2PM ET, the same time as Fed Presidents Mester, Evans, Harker, Kashkari, Rosengren and Kaplan all participate in an Economic Development forum discussion. We begin today with the 10-year yielding 3.00% and Agency MBS prices better by .250.

Jobs

A nationwide wholesale lender has immediate opening for a team in key US markets. This heavily capitalized lender leverages a centrally located and seasoned fulfillment team. Broad product portfolio and competitive rates offered along with an experienced leadership team dedicated to expansion. Send me a confidential note if you and your team are ready to start a new in 2019.

PRMG continues to expand its national footprint by opening 5 new Retail Locations during the month of October! Along with the drive and ambition to bring the American Dream of Homeownership to all cities across the country, PRMG has now opened its doors in Indianapolis, IN; Homestead, FL; Melbourne, FL; Columbus, OH and Mentor, OH. PRMG is Built by Originators for OriginatorsTM and is devoted to continuously growing its retail platform. If you are a Motivated Loan Originator who wants to be progressively better, contact Chris Sorensen (909.262.0452).

And remember that any displaced employees (the latest rumors focus on Cendera and United Bank, Hartford, CT, unfortunately) can place their resumes on www.LenderNews.com for free.